Shares of loanDepot, Inc. (NYSE: LDI) surged 5.66% in Thursday's trading session following the release of the company's third-quarter 2025 financial results, which demonstrated substantial improvement and exceeded analyst expectations.
The mortgage lender reported a 14% increase in revenue to $323 million, with adjusted revenue rising 11% to $325 million, surpassing the consensus estimate of $312.94 million. loanDepot significantly narrowed its net loss to $9 million from $25 million in the previous quarter, while adjusted EBITDA saw a remarkable 90% increase to $48.79 million, beating the analyst forecast of $28.40 million.
CEO Anthony Hsieh attributed the improved performance to a reshaped leadership team focused on operational excellence and capitalizing on loanDepot's unique assets. The company saw positive momentum from higher revenue and improved operating leverage, with pull-through weighted gain on sale margin increasing by 9 basis points to 339 basis points. CFO David Hayes highlighted the company's disciplined expense management, which contributed to the narrowing loss despite a 6% increase in expenses.
The strong quarterly results, coupled with management's optimistic outlook, have reinvigorated investor confidence in loanDepot's growth strategy and market position, driving the stock's significant upward movement in the market.
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