loanDepot Announces Year-End and Fourth Quarter 2024 Financial Results
Revenue increased 9% for the year on higher pull-through weighted gain on sale margin and volume, driving significant reduction of losses.
Full-year 2024 highlights:
-- Revenue increased 9% to $1.06 billion and adjusted revenue increased 10%
to $1.10 billion compared to 2023.
-- Pull-through weighted gain on sale margin grew to 317 basis points, up 42
bps compared to 2023.
-- Net loss of $202 million, including $25 million of cybersecurity related
costs, compared with prior year net loss of $236 million.
-- Adjusted net loss of $95 million, compared with prior year adjusted net
loss of $152 million, reflecting the positive impact of higher revenue
and cost productivity.
-- Adjusted EBITDA of $84 million compared with $6 million in 2023.
-- Successfully refinanced 2025 corporate debt - extended maturity and
reduced outstanding corporate debt by $137 million.
Fourth quarter 2024 highlights:
-- Revenue increased 13% to $257 million and adjusted revenue increased 6%
to $267 million compared to the prior year on higher volume and
pull-through weighted gain on sale margin.
-- Expanded network of joint venture partnerships with new agreements with
Smith Douglas Homes and Onx Homes.
-- Pull-through weighted gain on sale margin grew 38 basis points to 334
basis points.
-- Net loss of $67 million compared with net loss of $60 million in the
prior year.
-- Adjusted net loss of $47 million compared with prior year adjusted net
loss of $27 million, primarily reflecting higher volume-related costs
associated with increased volumes experienced during the third quarter
2024.
-- Strong liquidity profile with cash balance of $422 million.
IRVINE, Calif.--(BUSINESS WIRE)--March 11, 2025--
loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, "loanDepot" or the "Company"), a leading provider of products and services that power the homeownership journey, today announced results for the fourth quarter ended December 31, 2024.
"2024 was a year of significant progress for loanDepot with the completion of our Vision 2025 strategic program," said President and Chief Executive Officer Frank Martell. "The strategic imperatives of Vision 2025 served as our roadmap for successfully navigating the historical downturn in the housing and mortgage markets over the past three years. As the Company enters 2025, I believe team loanDepot is positioned to accelerate revenue growth and continue our progress towards sustainable profitability under the auspices of Project North Star that we announced in November 2024, and under Anthony Hsieh's new leadership that was announced last week.
"The U.S. housing and mortgage markets are substantial in size and hold many opportunities for loanDepot to grow and realize its strategic objectives. When the market inevitably recovers, the successful execution of Project North Star is expected to position loanDepot to become the technology and data driven lending partner of choice for today's first-time homeowners through their entire homeownership journey."
"2024 was a successful year for loanDepot from a financial point of view, " said David Hayes, Chief Financial Officer. "We grew revenue, expanded margins, reduced our corporate debt and made important investments in productivity initiatives that benefited the year. Importantly, during the third quarter we demonstrated our significant operational progress by achieving profitability during a period of modest market improvement. Our investments in products and operating leverage will provide the foundation for additional momentum in 2025 and beyond."
Fourth Quarter Highlights:
Financial
Summary
Three Months Ended Year Ended
---------------------------------------------- --------------------------------
($ in thousands
except per share
data) Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
(Unaudited) 2024 2024 2023 2024 2023
-------------- -------------- -------------- --------------- ---------------
Rate lock volume $7,648,829 $9,792,423 $6,417,419 $32,541,852 $32,155,455
Pull-through
weighted lock
volume(1) 5,592,527 6,748,057 4,407,386 22,854,729 21,475,262
Loan origination
volume 7,188,186 6,659,329 5,370,708 24,496,500 22,671,731
Gain on sale
margin(2) 2.60% 3.33% 2.43% 2.96% 2.60%
Pull-through
weighted gain
on sale
margin(3) 3.34% 3.29% 2.96% 3.17% 2.75%
Financial
Results
Total revenue $ 257,464 $ 314,598 $ 228,626 $ 1,060,235 $ 974,022
Total expense 341,588 311,003 302,571 1,303,084 1,252,330
Net (loss)
income (67,466) 2,672 (59,771) (202,151) (235,512)
Diluted (loss)
earnings per
share $ (0.17) $ 0.01 $ (0.16) $ (0.53) $ (0.63)
Non-GAAP
Financial
Measures(4)
Adjusted total
revenue $ 266,594 $ 329,499 $ 251,395 $ 1,104,910 $ 1,007,248
Adjusted net
(loss) income (47,017) 7,077 (26,702) (94,823) (151,641)
Adjusted
(LBITDA)
EBITDA (15,071) 63,742 14,902 83,749 6,441
(1) Pull-through weighted rate lock volume is the principal balance
of loans subject to interest rate lock commitments, net of a
pull-through factor for the loan funding probability.
(2) Gain on sale margin represents the total of (i) gain on
origination and sale of loans, net, and (ii) origination income,
net, divided by loan origination volume during period.
(3) Pull-through weighted gain on sale margin represents the total of
(i) gain on origination and sale of loans, net, and (ii)
origination income, net, divided by the pull-through weighted
rate lock volume.
(4) See "Non-GAAP Financial Measures" for a discussion of Non-GAAP
Financial Measures and a reconciliation of these metrics to their
closest GAAP measure.
Year-over-Year Operational Highlights
-- Non-volume1 related expenses increased $5.3 million from the fourth
quarter of 2023, primarily due to higher headcount related salary
expenses, offset somewhat by lower interest, occupancy and general and
administrative expenses.
-- Accrued $1.9 million expense associated with the first quarter
cybersecurity incident (the "Cybersecurity Incident").
-- Recognized a net recovery of restructuring and impairment charges
totaling $0.6 million, compared to a charge of $4.3 million during the
fourth quarter of 2023.
-- Pull-through weighted lock volume of $5.6 billion for the fourth quarter
of 2024, an increase of $1.2 billion or 27% from the fourth quarter of
2023.
-- Loan origination volume for the fourth quarter of 2024 was $7.2 billion,
an increase of $1.8 billion or 34% from the fourth quarter of 2023.
-- Purchase volume totaled 58% of total loans originated during the fourth
quarter, down from 76% during the fourth quarter of 2023, reflecting the
increased demand for refinance transactions during the period of lower
market rates experienced during the third quarter 2024, which were still
being closed during the fourth quarter.
-- Our preliminary organic refinance consumer direct recapture rate2
increased to 76% from the fourth quarter 2023's recapture rate of 57%.
-- Net loss for the fourth quarter of 2024 of $67.5 million as compared to
net loss of $59.8 million in the fourth quarter of 2023. Net loss widened
primarily due to higher volume related expenses from locks taken during
the third quarter 2024 period of lower market rates, offset somewhat by
increased revenue.
-- Adjusted net loss for the fourth quarter of 2024 was $47.0 million as
compared to adjusted net loss of $26.7 million for the fourth quarter of
2023.
Outlook for the first quarter of 2025
-- Origination volume of between $4.5 billion and $5.5 billion.
-- Pull-through weighted rate lock volume of between $4.8 billion and $5.8
billion.
-- Pull-through weighted gain on sale margin of between 320 basis points and
340 basis points.
(____________________ 1) Volume related expenses include commissions, marketing and advertising expense, and direct origination expense. All remaining expenses are considered non-volume related. Marketing and advertising expense has been included in the volume related category beginning this quarter as management considers the majority of these costs to fluctuate with market volumes.
(2) We define organic refinance consumer direct recapture rate as the total unpaid principal balance ("UPB") of loans in our servicing portfolio that are paid in full for purposes of refinancing the loan on the same property, with the Company acting as lender on both the existing and new loan, divided by the UPB of all loans in our servicing portfolio that paid in full for the purpose of refinancing the loan on the same property. The recapture rate is finalized following the publication date of this release when external data becomes available.
Servicing
Three Months Ended Year Ended
------------------------------- ------------------------
Servicing Revenue Data:
($ in thousands) Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
(Unaudited) 2024 2024 2023 2024 2023
--------- --------- --------- ---------- ------------
Due to
collection/realization
of cash flows $(43,227) $(41,498) $(34,433) $(163,010) $(149,211)
Due to changes in
valuation inputs or
assumptions 68,228 (52,557) (71,195) 59,538 2,227
Realized (losses) gains
on sale of servicing
rights (56) 32 55 (3,036) 12,466
Net (losses) gains from
derivatives hedging
servicing rights (77,302) 37,624 48,371 (101,177) (47,919)
------- ------- ------- -------- --------
Changes in fair value
of servicing rights,
net of hedging gains
and losses (9,130) (14,901) (22,769) (44,675) (33,226)
Other realized losses on
sales of servicing
rights (1) (162) (164) (247) (7,453) (1,980)
------- ------- ------- -------- --------
Changes in fair value
of servicing rights,
net $(52,519) $(56,563) $(57,449) $(215,138) $(184,417)
======= ======= ======= ======== ========
Servicing fee income (2) $108,426 $124,133 $132,482 $ 481,699 $ 492,811
======= ======= ======= ======== ========
(1) Includes the (provision) recovery for sold MSRs and broker fees.
(2) Servicing fee income for the three months and year ended December
31, 2023, has been adjusted to incorporate earnings credits,
which were previously classified as part of net interest income.
Three Months Ended Year Ended
------------------------------------- --------------------------
Servicing Rights, at Fair
Value: ($ in thousands) Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
(Unaudited) 2024 2024 2023 2024 2023
----------- ----------- ----------- ----------- -------------
Balance at beginning of
period $1,526,013 $1,566,463 $2,038,654 $1,985,718 $2,025,136
Additions 75,547 62,039 62,158 252,076 277,387
Sales proceeds (10,995) (8,466) (9,521) (514,772) (180,687)
Changes in fair value:
Due to changes in
valuation inputs or
assumptions 68,228 (52,557) (71,195) 59,538 2,227
Due to
collection/realization
of cash flows (43,227) (41,498) (34,433) (163,010) (149,211)
Realized (losses) gains
on sales of servicing
rights (56) 32 55 (4,040) 10,866
--------- --------- --------- --------- ---------
Total changes in fair
value 24,945 (94,023) (105,573) (107,512) (136,118)
--------- --------- --------- --------- ---------
Balance at end of period
(1) $1,615,510 $1,526,013 $1,985,718 $1,615,510 $1,985,718
========= ========= ========= ========= =========
(1) Balances are net of $18.2 million, $16.7 million, and $14.0
million of servicing rights liability as of December 31, 2024,
September 30, 2024, and December 31, 2023, respectively.
% Change
-------------------
Servicing
Portfolio Data: ($ Dec-24 Dec-24
in thousands) Dec 31, Sep 30, Dec 31, vs vs
(Unaudited) 2024 2024 2023 Sep-24 Dec-23
------------------ ---------------- ---------------- ---------------- -------- ---------
Servicing
portfolio (unpaid
principal
balance) $115,971,984 $114,915,206 $145,090,199 0.9% (20.1)%
Total servicing
portfolio
(units) 417,875 409,344 496,894 2.1 (15.9)
60+ days
delinquent ($) $ 1,826,105 $ 1,654,955 $ 1,392,606 10.3 31.1
60+ days
delinquent (%) 1.6% 1.4% 1.0%
Servicing rights,
net to UPB 1.4% 1.3% 1.4%
Balance Sheet
Highlights % Change
--------------------
Dec-24 Dec-24
($ in thousands) Dec 31, Sep 30, Dec 31, vs vs
(Unaudited) 2024 2024 2023 Sep-24 Dec-23
------------------ ---------- ---------- ---------- --------- ---------
Cash and cash
equivalents $ 421,576 $ 483,048 $ 660,707 (12.7)% (36.2)%
Loans held for
sale, at fair
value 2,603,735 2,790,284 2,132,880 (6.7) 22.1
Loans held for
investment, at
fair value 116,627 122,066 -- (4.5) NM
Servicing rights,
at fair value 1,633,661 1,542,720 1,999,763 5.9 (18.3)
Total assets 6,344,028 6,417,627 6,151,048 (1.1) 3.1
Warehouse and
other lines of
credit 2,377,127 2,565,713 1,947,057 (7.4) 22.1
Total liabilities 5,837,417 5,825,578 5,446,564 0.2 7.2
Total equity 506,611 592,049 704,484 (14.4) (28.1)
An increase in loans held for sale at December 31, 2024, resulted in a corresponding increase in the balance on our warehouse lines of credit. Total funding capacity with our lending partners was $3.7 billion at December 31, 2024, and $3.1 billion at December 31, 2023. Available borrowing capacity was $1.2 billion at December 31, 2024.
Consolidated
Statements of
Operations
($ in thousands
except per share
data) Three Months Ended Year Ended
------------------------------------------- ------------------------------------
Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
2024 2024 2023 2024 2023
------------- ------------- ------------- ---------------- ------------------
(Unaudited) (Unaudited)
REVENUES:
Interest income $ 41,835 $ 38,673 $ 34,992 $ 146,485 $ 133,263
Interest expense (40,491) (39,488) (33,686) (147,328) (130,145)
----------- ----------- ----------- -------------- --------------
Net interest
income
(expense) 1,344 (815) 1,306 (843) 3,118
Gain on
origination and
sale of loans,
net 161,071 198,027 113,185 642,078 524,521
Origination
income, net 25,515 23,675 17,120 82,290 65,209
Servicing fee
income 108,426 124,133 132,482 481,699 492,811
Change in fair
value of
servicing rights,
net (52,519) (56,563) (57,449) (215,138) (184,417)
Other income 13,627 26,141 21,982 70,149 72,780
----------- ----------- ----------- -------------- --------------
Total net
revenues 257,464 314,598 228,626 1,060,235 974,022
EXPENSES:
Personnel expense 163,800 161,330 132,752 600,483 573,010
Marketing and
advertising
expense 36,860 36,282 28,360 132,671 132,880
Direct origination
expense 21,392 23,120 16,790 84,234 67,141
General and
administrative
expense 50,344 22,984 55,258 204,231 212,732
Occupancy expense 4,321 4,800 5,433 19,434 23,516
Depreciation and
amortization 8,779 8,931 9,922 36,108 41,261
Servicing expense 12,218 8,427 8,572 37,373 27,687
Other interest
expense 43,874 45,129 45,484 188,550 174,103
----------- ----------- ----------- -------------- --------------
Total expenses 341,588 311,003 302,571 1,303,084 1,252,330
----------- ----------- ----------- -------------- --------------
(Loss) income
before income
taxes (84,124) 3,595 (73,945) (242,849) (278,308)
Income tax
(benefit)
expense (16,658) 923 (14,174) (40,698) (42,796)
----------- ----------- ----------- -------------- --------------
Net (loss)
income (67,466) 2,672 (59,771) (202,151) (235,512)
Net (loss)
income
attributable
to
noncontrolling
interests (34,232) 1,303 (32,578) (103,820) (125,370)
----------- ----------- ----------- -------------- --------------
Net (loss)
income
attributable
to loanDepot,
Inc. $ (33,234) $ 1,369 $ (27,193) $ (98,331) $ (110,142)
=========== =========== =========== ============== ==============
Basic (loss)
income per
share $ (0.17) $ 0.01 $ (0.15) $ (0.53) $ (0.63)
Diluted (loss)
income per
share $ (0.17) $ 0.01 $ (0.16) $ (0.53) $ (0.63)
Weighted average
shares
outstanding
Basic 193,413,971 185,385,271 178,888,225 185,641,675.00 174,906,063.00
Diluted 193,413,971 332,532,984 326,288,272 185,641,675.00 174,906,063.00
Consolidated Balance Sheets
Dec 31, Sep 30, Dec 31,
($ in thousands) 2024 2024 2023
---------- ---------- ----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 421,576 $ 483,048 $ 660,707
Restricted cash 105,645 95,593 85,149
Loans held for sale, at fair
value 2,603,735 2,790,284 2,132,880
Loans held for investment, at
fair value 116,627 122,066 --
Derivative assets, at fair
value 44,389 68,647 93,574
Servicing rights, at fair
value 1,633,661 1,542,720 1,999,763
Trading securities, at fair
value 87,466 92,324 92,901
Property and equipment, net 61,079 62,974 70,809
Operating lease right-of-use
asset 20,432 23,020 29,433
Loans eligible for repurchase 995,398 860,300 711,371
Investments in joint ventures 18,113 17,899 20,363
Other assets 235,907 258,752 254,098
--------- --------- ---------
Total assets $6,344,028 $6,417,627 $6,151,048
========= ========= =========
LIABILITIES AND EQUITY
LIABILITIES:
Warehouse and other lines of
credit $2,377,127 $2,565,713 $1,947,057
Accounts payable and accrued
expenses 379,439 381,543 379,971
Derivative liabilities, at
fair value 25,060 22,143 84,962
Liability for loans eligible
for repurchase 995,398 860,300 711,371
Operating lease liability 33,190 38,538 49,192
Debt obligations, net 2,027,203 1,957,341 2,274,011
--------- --------- ---------
Total liabilities 5,837,417 5,825,578 5,446,564
EQUITY:
Total equity 506,611 592,049 704,484
--------- --------- ---------
Total liabilities and
equity $6,344,028 $6,417,627 $6,151,048
========= ========= =========
Loan Origination
and Sales Data
Three Months Ended Year Ended
------------------ ---------------------------------- ------------------------
($ in thousands) Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
(Unaudited) 2024 2024 2023 2024 2023
------------------ ---------- ---------- ---------- ----------- -----------
Loan origination
volume by type:
Conventional
conforming $3,331,526 $3,254,702 $2,830,776 $12,322,808 $12,206,382
FHA/VA/USDA 2,938,168 2,564,827 2,062,928 9,428,124 8,434,095
Jumbo 368,518 300,086 81,591 1,015,305 487,142
Other 549,974 539,714 395,413 1,730,263 1,544,112
--------- --------- --------- ---------- ----------
Total $7,188,186 $6,659,329 $5,370,708 $24,496,500 $22,671,731
========= ========= ========= ========== ==========
Loan origination
volume by
purpose:
Purchase $4,139,542 $4,378,575 $4,071,761 $16,197,535 $16,474,927
Refinance - cash
out 2,424,749 1,954,071 1,221,538 7,085,329 5,821,102
Refinance -
rate/term 623,895 326,683 77,409 1,213,636 375,702
--------- --------- --------- ---------- ----------
Total $7,188,186 $6,659,329 $5,370,708 $24,496,500 $22,671,731
========= ========= ========= ========== ==========
Loans sold:
Servicing
retained $4,421,935 $3,818,375 $3,825,478 $15,238,250 $15,222,156
Servicing
released 2,937,984 2,487,589 1,572,369 8,771,900 7,918,029
--------- --------- --------- ---------- ----------
Total $7,359,919 $6,305,964 $5,397,847 $24,010,150 $23,140,185
========= ========= ========= ========== ==========
Fourth Quarter Earnings Call
Management will host a conference call and live webcast today at 5:00 p.m. ET to discuss the Company's financial and operational highlights followed by a question-and-answer session.
The conference call can be accessed by registering online at https://registrations.events/direct/Q4I4144763980 at which time registrants will receive dial-in information as well as a conference ID. At the time of the call, participants will dial in using the participant number and conference ID provided upon registration.
A live audio webcast of the conference call will also be available via the Company's website, investors.loandepot.com, under Events & Presentation tab. A replay of the webcast will be made available on the Investor Relations website following the conclusion of the event.
For more information about loanDepot, please visit the company's Investor Relations website: investors.loandepot.com.
Non-GAAP Financial Measures
To provide investors with information in addition to our results as determined by GAAP, we disclose certain non-GAAP measures to assist investors in evaluating our financial results. We believe these non-GAAP measures provide useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. They facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations in hedging strategies, changes in valuations, capital structures (affecting interest expense on non-funding debt), taxation, the age and book depreciation of facilities (affecting relative depreciation expense), and other cost or benefit items which may vary for different companies for reasons unrelated to operating performance. These non-GAAP measures include our Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA (LBITDA). We exclude from these non-GAAP financial measures the change in fair value of MSRs, gains (losses) from the sale of MSRs and related hedging gains and losses that represent realized and unrealized adjustments resulting from changes in valuation, mostly due to changes in market interest rates, and are not indicative of the Company's operating performance or results of operation. Beginning in the second quarter of 2024, we began to include the gains (losses) from the sale of MSRs in valuation changes in servicing rights, net of hedging gains and losses to appropriately capture all valuation changes in MSRs up to and including the sales date. Prior periods have been revised to conform with this new presentation. We have excluded expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 2024, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, and professional fees, including legal expenses, litigation settlement costs, and commission guarantees. We also exclude stock-based compensation expense, which is a non-cash expense, gains or losses on extinguishment of debt and disposal of fixed assets, non-cash goodwill impairment, and other impairment charges to intangible assets and operating lease right-of-use assets, as well as certain costs associated with our restructuring efforts, as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA (LBITDA) includes interest expense on funding facilities, which are
recorded as a component of "net interest income (expense)," as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest expense on our non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA (LBITDA). Adjustments for income taxes are made to reflect historical results of operations on the basis that it was taxed as a corporation under the Internal Revenue Code, and therefore subject to U.S. federal, state and local income taxes. Adjustments to Diluted Weighted Average Shares Outstanding assumes the pro forma conversion of weighted average Class C common stock to Class A common stock. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Some of these limitations are:
-- They do not reflect every cash expenditure, future requirements for
capital expenditures or contractual commitments;
-- Adjusted EBITDA (LBITDA) does not reflect the significant interest
expense or the cash requirements necessary to service interest or
principal payment on our debt;
-- Although depreciation and amortization are non-cash charges, the assets
being depreciated and amortized will often have to be replaced or require
improvements in the future, and Adjusted Total Revenue, Adjusted Net
Income (Loss), and Adjusted EBITDA (LBITDA) do not reflect any cash
requirement for such replacements or improvements; and
-- They are not adjusted for all non-cash income or expense items that are
reflected in our statements of cash flows.
Because of these limitations, Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA (LBITDA) are not intended as alternatives to total revenue, net income (loss), net income (loss) attributable to the Company, or Diluted Earnings (Loss) Per Share or as an indicator of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA (LBITDA) along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. See below for a reconciliation of these non-GAAP measures to their most comparable U.S. GAAP measures.
Three Months Ended Year Ended
------------------ ---------------------------- ----------------------
Reconciliation of
Total Revenue to
Adjusted Total
Revenue ($ in
thousands) Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
(Unaudited) 2024 2024 2023 2024 2023
------------------ -------- -------- -------- ---------- ----------
Total net revenue $257,464 $314,598 $228,626 $1,060,235 $ 974,022
Valuation changes
in servicing
rights, net of
hedging gains and
losses(1) 9,130 14,901 22,769 44,675 33,226
------- ------- ------- --------- ---------
Adjusted total
revenue $266,594 $329,499 $251,395 $1,104,910 $1,007,248
======= ======= ======= ========= =========
(1) Represents the change in the fair value of servicing rights due
to changes in valuation inputs or assumptions, net of gains or
losses from derivatives hedging servicing rights. Beginning in
the second quarter of 2024, we began to include the gains
(losses) from the sale of MSRs in valuation changes in servicing
rights, net of hedging gains and losses to appropriately capture
all valuation changes in MSRs up to and including the sales date.
Prior periods have been revised to conform with this new
presentation.
Three Months Ended Year Ended
------------------ ------------------------------- ------------------------
Reconciliation of
Net (Loss) Income
to Adjusted Net
(Loss) Income ($
in thousands) Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
(Unaudited) 2024 2024 2023 2024 2023
------------------ --------- --------- --------- ---------- ------------
Net (loss) income
attributable to
loanDepot, Inc. $(33,234) $ 1,369 $(27,193) $ (98,331) $(110,142)
Net (loss) income
from the pro forma
conversion of
Class C common
shares to Class A
common stock (1) (34,232) 1,303 (32,578) (103,820) (125,370)
------- ------- ------- -------- --------
Net (loss)
income (67,466) 2,672 (59,771) (202,151) (235,512)
Adjustments to
the benefit
(provision) for
income
taxes(2) 7,928 (326) 7,776 26,131 32,872
------- ------- ------- -------- --------
Tax-effected net
(loss) income (59,538) 2,346 (51,995) (176,020) (202,640)
Valuation
changes in
servicing
rights, net of
hedging gains
and losses(3) 9,130 14,901 22,769 44,675 33,226
Stock-based
compensation
expense 5,966 8,200 6,375 24,919 21,993
Restructuring
charges(4) 93 1,853 3,517 7,199 11,811
Cybersecurity
incident(5) 1,868 (18,880) -- 24,628 --
Loss (gain) on
extinguishment
of debt -- -- -- 5,680 (1,690)
Loss on disposal
of fixed
assets 33 3 325 8 1,430
Other
impairment(6) (690) 10 455 511 925
Tax effect of
adjustments(7) (3,879) (1,356) (8,148) (26,423) (16,696)
------- ------- ------- -------- --------
Adjusted net (loss)
income $(47,017) $ 7,077 $(26,702) $ (94,823) $(151,641)
======= ======= ======= ======== ========
(1) Reflects net (loss) income to Class A common stock and Class D
common stock from the pro forma exchange of Class C common
stock.
(2) loanDepot, Inc. is subject to federal, state and local income
taxes. Adjustments to the benefit (provision) for income taxes
reflect the income tax rates below, and the pro forma assumption
that loanDepot, Inc. owns 100% of LD Holdings.
Three Months Ended Year Ended
---------------- ------------------------------- --------------------
Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
2024 2024 2023 2024 2023
---------------- --------- --------- --------- --------- ---------
Statutory U.S.
federal income
tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State and local
income taxes
(net of federal
benefit) 2.16% 4.01% 2.87% 4.17% 5.22%
----- ----- ----- ----- -----
Effective income
tax rate 23.16% 25.01% 23.87% 25.17% 26.22%
===== ===== ===== ===== =====
(3) Represents the change in the fair value of servicing rights due
to changes in valuation inputs or assumptions, net of gains or
losses from derivatives hedging servicing rights, and gains
(losses) from the sale of MSRs. Beginning in the second quarter
of 2024, we began to include the gains (losses) from the sale of
MSRs in valuation changes in servicing rights, net of hedging
gains and losses to appropriately capture all valuation changes
in MSRs up to and including the sales date. Prior periods have
been revised to conform with this new presentation.
(4) Reflects employee severance expense and professional services
associated with restructuring efforts subsequent to the
announcement of Vision 2025 in July 2022.
(5) Represents expenses directly related to the Cybersecurity
Incident, net of insurance recoveries, including costs to
investigate and remediate the Cybersecurity Incident, the costs
of customer notifications and identity protection, professional
fees including legal expenses, litigation settlement costs, and
commission guarantees.
(6) Represents lease impairment on corporate and retail locations.
(7) Amounts represent the income tax effect using the aforementioned
effective income tax rates, excluding certain discrete tax
items.
Three Months Ended Year Ended
--------------- ------------------------------------- ------------------------
Reconciliation
of Diluted
Weighted
Average Shares
Outstanding to
Adjusted
Diluted
Weighted
Average Shares
Outstanding Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
(Unaudited) 2024 2024 2023 2024 2023
--------------- ----------- ----------- ----------- ----------- -----------
Share Data:
Diluted weighted
average shares
of Class A
common stock
and Class D
common stock
outstanding 193,413,971 332,532,984 326,288,272 185,641,675 174,906,063
Assumed pro
forma
conversion of
weighted
average Class C
common stock to
Class A common
stock (1) 133,595,797 -- -- 140,148,860 147,789,060
----------- ----------- ----------- ----------- -----------
Adjusted diluted
weighted
average shares
outstanding 327,009,768 332,532,984 326,288,272 325,790,535 322,695,123
=========== =========== =========== =========== ===========
(1) Reflects the assumed pro forma exchange and conversion of
anti-dilutive Class C common shares.
Three Months Ended Year Ended
------------------ ------------------------------- ------------------------
Reconciliation of
Net (Loss) Income
to Adjusted
(LBITDA) EBITDA ($
in thousands) Dec 31, Sep 30, Dec 31, Dec 31, Dec 31,
(Unaudited) 2024 2024 2023 2024 2023
------------------ --------- --------- --------- ---------- ------------
Net (loss) income $(67,466) $ 2,672 $(59,771) $(202,151) $(235,512)
Interest expense -
non-funding debt
(1) 43,874 45,129 45,484 188,550 174,103
Income tax
(benefit) expense (16,658) 923 (14,174) (40,698) (42,796)
Depreciation and
amortization 8,779 8,931 9,922 36,108 41,261
Valuation changes
in servicing
rights, net of
hedging gains and
losses(2) 9,130 14,901 22,769 44,675 33,226
Stock-based
compensation
expense 5,966 8,200 6,375 24,919 21,993
Restructuring
charges(3) 93 1,853 3,517 7,199 11,811
Cybersecurity
incident(4) 1,868 (18,880) -- 24,628 --
Loss on disposal of
fixed assets 33 3 325 8 1,430
Other impairment(5) (690) 10 455 511 925
------- ------- ------- -------- --------
Adjusted (LBITDA)
EBITDA $(15,071) $ 63,742 $ 14,902 $ 83,749 $ 6,441
======= ======= ======= ======== ========
(1) Represents other interest expense, which includes gain or loss on
extinguishment of debt and amortization of debt issuance costs
and debt discount, in the Company's consolidated statements of
operations.
(2) Represents the change in the fair value of servicing rights due
to changes in valuation inputs or assumptions, net of gains or
losses from derivatives hedging servicing rights, and gains
(losses) from the sale of MSRs. Beginning in the second quarter
of 2024, we began to include the gains (losses) from the sale of
MSRs in valuation changes in servicing rights, net of hedging
gains and losses to appropriately capture all valuation changes
in MSRs up to and including the sales date. Prior periods have
been revised to conform with this new presentation.
(3) Reflects employee severance expense and professional services
associated with restructuring efforts subsequent to the
announcement of Vision 2025 in July 2022.
(4) Represents expenses, directly related to the Cybersecurity
Incident, net of insurance recoveries, that occurred in the first
quarter of 2024, including costs to investigate and remediate the
Cybersecurity Incident, the costs of customer notifications and
identity protection, professional fees including legal expenses,
litigation settlement costs, and commission guarantees.
(5) Represents lease impairment on corporate and retail locations.
Forward-Looking Statements
This press release and related management commentary contain, and responses to investor questions may contain, forward-looking statements that can be identified by the fact that they do not relate strictly to historical or current facts and may contain the words "believe," "anticipate," "expect," "intend," "plan," "predict," "estimate," "project," "will be," "will continue," "will likely result," or other similar words and phrases or future or conditional verbs such as "will," "may," "might," "should," "would," or "could" and the negatives of those terms. Examples of forward-looking statements include, but are not limited to, statements about future operations, performance, financial condition, prospects, plans and strategies, including Project North Star, sustainable profitability, revenue growth, and executive management changes.
These forward-looking statements are based on current available operating, financial, economic and other information, and are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict, including but not limited to, the following: our ability to achieve the expected benefits of Project North Star and the success of other business initiatives; our ability to achieve profitability; our loan production volume; our ability to maintain an operating platform and management system sufficient to conduct our business; our ability to maintain warehouse lines of credit and other sources of capital and liquidity; impacts of cybersecurity incidents, cyberattacks, information or security breaches and technology disruptions or failures, of ours or of our third party vendors; the outcome of legal proceedings to which we are a party; our ability to reach a definitive settlement agreement related to the Cybersecurity Incident; adverse changes in macroeconomic and U.S residential real estate and mortgage market conditions, including changes in interest rates; changing federal, state and local laws, as well as changing regulatory enforcement policies and priorities; and other risks detailed in the "Risk Factors" section of loanDepot, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2023, and Quarterly Reports on Form 10-Q as well as any subsequent filings with the Securities and Exchange Commission. Therefore, current plans, anticipated actions, and financial results, as well as the anticipated development of the industry, may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot does not undertake any obligation to publicly update or revise any forward-looking statement to reflect future events or circumstances, except as required by applicable law.
About loanDepot
At loanDepot (NYSE: LDI), we know home means everything. That's why we are on a mission to support homeowners with a suite of products and services that fuel the American Dream. Our portfolio of digital-first home purchase, home refinance and home equity lending products make homeownership more accessible, achievable, and rewarding, especially for the increasingly diverse communities of first-time homebuyers we serve. Headquartered in Southern California with local market offices nationwide, loanDepot and its sister real estate and home services company, mellohome, are dedicated to helping customers put down roots and bring dreams to life -- all while building stronger communities and a better tomorrow.
LDI-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20250311998194/en/
CONTACT: Investor Relations Contact:
Gerhard Erdelji
Senior Vice President, Investor Relations
(949) 822-4074
gerdelji@loandepot.com
Media Contact:
Rebecca Anderson
Senior Vice President, Communications & Public Relations
(949) 822-4024
rebeccaanderson@loandepot.com
(END) Dow Jones Newswires
March 11, 2025 16:06 ET (20:06 GMT)
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