Reshaped leadership team focused on capitalizing on loanDepot's unique set of assets to drive operational excellence and profitable market share growth.
Positive Q3 momentum from higher revenue and positive operating leverage.
Highlights:
-- Revenue increased 14% to $323 million and adjusted revenue increased 11%
to $325 million compared to the prior quarter on higher pull-though
weighted lock volume and margin, and servicing income.
-- Pull-through weighted gain on sale margin increased 9 basis points to 339
basis points.
-- Expenses increased 6% to $334 million, driven primarily by higher
personnel and general and administrative expenses.
-- Net loss of $9 million was down 65%, compared with net loss of $25
million in the prior quarter, primarily reflecting higher revenue.
-- Adjusted net loss of $3 million was down 82%, compared with the prior
quarter adjusted net loss of $16 million.
-- Adjusted EBITDA increased by 90% to $49 million compared to $26 million
in the prior quarter.
-- Strong liquidity profile with cash balance increasing to $459 million
from $409 million in the prior quarter.
IRVINE, Calif.--(BUSINESS WIRE)--November 06, 2025--
loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, "loanDepot" or the "Company"), today announced results for the third quarter ended September 30, 2025.
"A key part of my efforts during the third quarter has focused on reshaping our leadership team, positioning us to leverage loanDepot's unique set of assets and drive operational excellence," said Founder and Chief Executive Officer Anthony Hsieh. "With key senior-level promotions, strategic hires, and organizational realignment, I believe we have the right team in place that returns us to our innovative roots to pursue profitable market share growth."
Hsieh continued, "I believe loanDepot is uniquely positioned with a diversified, multi-channel origination strategy, consisting of direct to consumer, in-market retail and partnerships with homebuilders, plus a substantial servicing portfolio and a nationally recognized brand that together create a powerful flywheel effect. At the core of this is our Consumer Direct Lending channel, which is one of the few tech-powered, at-scale models of its kind with both best-in-class lead generation capabilities and top-tier customer recapture rates from our servicing portfolio. I believe these assets, combined with our scale in a highly fragmented market, give us a distinct advantage to rapidly invest in and deploy emerging technologies that will help us achieve our goal of making more loans faster and at a lower cost, while achieving top-tier customer service levels."
Added Chief Financial Officer, David Hayes, "In the third quarter, we continued to narrow our loss, driven by higher revenue and disciplined expense management, resulting in positive operating leverage. Revenue rose 14% quarter-over-quarter, fueled by stronger pull-through volume, improved margins, and increased servicing income, while expenses grew by only 6%. We also strengthened our balance sheet, increasing cash by $51 million to $459 million."
Third Quarter Highlights:
Financial Summary
Three Months Ended Nine Months Ended
---------------------------------------------- --------------------------------
($ in thousands
except per share
data) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2025 2025 2024 2025 2024
-------------- -------------- -------------- --------------- ---------------
Rate lock volume $9,463,052 $8,560,699 $9,792,423 $25,661,739 $24,893,023
Pull-through
weighted lock
volume(1) 6,970,592 6,348,060 6,748,057 18,737,337 17,262,202
Loan origination
volume 6,533,974 6,734,529 6,659,329 18,442,431 17,308,314
Gain on sale
margin(2) 3.61% 3.11% 3.33% 3.46% 3.11%
Pull-through
weighted gain
on sale
margin(3) 3.39% 3.30% 3.29% 3.41% 3.12%
Financial
Results
Total revenue $ 323,324 $ 282,537 $ 314,598 $ 879,482 $ 802,772
Total expense 333,613 314,871 311,003 968,209 961,497
Net (loss)
income (8,734) (25,273) 2,672 (74,704) (134,685)
Diluted (loss)
earnings per
share $ (0.02) $ (0.06) $ 0.01 $ (0.19) $ (0.36)
Non-GAAP
Financial
Measures(4)
Adjusted total
revenue $ 325,157 $ 291,912 $ 329,499 $ 895,513 $ 838,318
Adjusted net
(loss) income (2,845) (16,013) 7,077 (44,725) (48,309)
Adjusted EBITDA 48,787 25,631 63,742 92,715 98,820
(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.
Operational Highlights
-- Non-volume1 related expenses increased $15.8 million from the second
quarter of 2025, primarily due to the absence of one-time benefits in
salary and general and administrative expenses recognized in the second
quarter.
-- Pull-through weighted lock volume of $7.0 billion for the third quarter
of 2025, an increase of $0.6 billion or 10% from the second quarter of
2025.
-- Loan origination volume for the third quarter of 2025 was $6.5 billion, a
decrease of $0.2 billion or 3% from the second quarter of 2025.
-- Purchase volume totaled 60% of total loans originated during the third
quarter, down from 63% during the second quarter of 2025.
-- Our preliminary organic refinance consumer direct recapture rate2
decreased to 65% from the second quarter 2025's recapture rate of 70%.
-- Net loss for the third quarter of 2025 of $8.7 million as compared to net
loss of $25.3 million in the second quarter of 2025. Net loss narrowed
primarily due to higher volume of pull-through weighted lock volume and
margin and higher servicing income, offset somewhat by higher expenses.
-- Adjusted net loss for the third quarter of 2025 was $2.8 million as
compared to adjusted net loss of $16.0 million for the second quarter of
2025.
___________________________
(1) Volume related expenses include commissions, marketing and advertising
expense, and direct origination expense. All remaining expenses are
considered non-volume related.
(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.
Outlook for the fourth quarter of 2025
-- Origination volume of between $6.5 billion and $8.5 billion.
-- Pull-through weighted rate lock volume of between $6.0 billion and $8.0
billion.
-- Pull-through weighted gain on sale margin of between 300 basis points and
325 basis points.
Servicing
Three Months Ended Nine Months Ended
------------------------------- ------------------------
Servicing Revenue Data:
($ in thousands) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2025 2025 2024 2025 2024
--------- --------- --------- ---------- ------------
Due to
collection/realization
of cash flows $(44,154) $(42,832) $(41,498) $(123,162) $(119,783)
Due to changes in
valuation inputs or
assumptions (12,007) 145 (52,557) (35,551) (8,690)
Realized gains (losses)
on sale of servicing
rights 45 44 32 151 (2,980)
Net gains (losses) from
derivatives hedging
servicing rights 10,129 (9,564) 37,624 19,369 (23,876)
------- ------- ------- -------- --------
Changes in fair value
of servicing rights,
net of hedging gains
and losses (1,833) (9,375) (14,901) (16,031) (35,546)
Other realized losses on
sales of servicing
rights (1) (211) (169) (164) (484) (7,290)
------- ------- ------- -------- --------
Changes in fair value of
servicing rights, net $(46,198) $(52,376) $(56,563) $(139,677) $(162,619)
======= ======= ======= ======== ========
Servicing fee income $111,783 $108,209 $124,133 $ 324,270 $ 373,273
======= ======= ======= ======== ========
(1) Includes the provision for sold MSRs and broker fees.
Three Months Ended Nine Months Ended
------------------------------------- --------------------------
Servicing Rights, at Fair
Value: ($ in thousands) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2025 2025 2024 2025 2024
----------- ----------- ----------- ----------- -------------
Balance at beginning of
period $1,616,854 $1,603,031 $1,566,463 $1,615,510 $1,985,718
Additions 69,163 66,940 62,039 188,789 176,529
Sales proceeds (11,642) (10,474) (8,466) (27,478) (503,777)
Changes in fair value:
Due to changes in
valuation inputs or
assumptions (12,007) 145 (52,557) (35,551) (8,690)
Due to
collection/realization
of cash flows (44,154) (42,832) (41,498) (123,162) (119,783)
Realized gains (losses)
on sales of servicing
rights 45 44 32 151 (3,984)
--------- --------- --------- --------- ---------
Total changes in fair
value (56,116) (42,643) (94,023) (158,562) (132,457)
--------- --------- --------- --------- ---------
Balance at end of period
(1) $1,618,259 $1,616,854 $1,526,013 $1,618,259 $1,526,013
========= ========= ========= ========= =========
(1) Balances are net of $19.7 million, $19.1 million, and $16.7 million
of servicing rights liability as of September 30, 2025, June 30,
2025, and September 30, 2024, respectively.
% Change
-------------------
Servicing
Portfolio Data: ($ Sep-25 Sep-25
in thousands) Sep 30, Jun 30, Sep 30, vs vs
(Unaudited) 2025 2025 2024 Jun-25 Sep-24
------------------ ---------------- ---------------- ---------------- -------- ---------
Servicing
portfolio (unpaid
principal
balance) $118,228,146 $117,539,884 $114,915,206 0.6% 2.9%
Total servicing
portfolio
(units) 440,358 432,764 409,344 1.8 7.6
60+ days
delinquent ($) $ 1,715,453 $ 1,641,165 $ 1,654,955 4.5 3.7
60+ days
delinquent (%) 1.5% 1.4% 1.4%
Servicing rights,
net to UPB 1.4% 1.4% 1.3%
Balance Sheet Highlights
% Change
--------------------
Sep-25 Sep-25
($ in thousands) Sep 30, Jun 30, Sep 30, vs vs
(Unaudited) 2025 2025 2024 Jun-25 Sep-24
------------------ ---------- ---------- ---------- --------- ---------
Cash and cash
equivalents $ 459,161 $ 408,623 $ 483,048 12.4% (4.9)%
Loans held for
sale, at fair
value 2,606,361 2,622,959 2,790,284 (0.6) (6.6)
Loans held for
investment, at
fair value 111,341 111,591 122,066 (0.2) (8.8)
Servicing rights,
at fair value 1,637,930 1,635,991 1,542,720 0.1 6.2
Total assets 6,244,985 6,208,726 6,417,627 0.6 (2.7)
Warehouse and
other lines of
credit 2,382,706 2,411,416 2,565,713 (1.2) (7.1)
Total liabilities 5,811,675 5,769,676 5,825,578 0.7 (0.2)
Total equity 433,310 439,050 592,049 (1.3) (26.8)
A decrease in loans held for sale at September 30, 2025, resulted in a corresponding decrease in the balance on our warehouse lines of credit. Total funding capacity with our lending partners was $4.2 billion at September 30, 2025, and $4.0 billion at June 30, 2025. Available borrowing capacity was $1.8 billion at September 30, 2025.
Consolidated Statements of Operations
($ in thousands
except per share
data) (Unaudited) Three Months Ended Nine Months Ended
------------------------------------------- ------------------------------
Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
2025 2025 2024 2025 2024
------------- ------------- ------------- ------------- ---------------
REVENUES:
Interest income $ 39,937 $ 40,946 $ 38,673 $ 115,954 $ 104,650
Interest expense (36,878) (39,297) (39,488) (107,937) (106,837)
----------- ----------- ----------- ----------- -----------
Net interest
income
(expense) 3,059 1,649 (815) 8,017 (2,187)
Gain on origination
and sale of loans,
net 201,304 174,810 198,027 542,490 481,007
Origination income,
net 34,750 34,931 23,675 95,539 56,775
Servicing fee
income 111,783 108,209 124,133 324,270 373,273
Change in fair
value of servicing
rights, net (46,198) (52,376) (56,563) (139,677) (162,619)
Other income 18,626 15,314 26,141 48,843 56,523
----------- ----------- ----------- ----------- -----------
Total net
revenues 323,324 282,537 314,598 879,482 802,772
EXPENSES:
Personnel expense 161,150 154,116 161,330 465,427 436,683
Marketing and
advertising
expense 37,700 37,878 36,282 113,828 95,811
Direct origination
expense 21,965 20,456 23,120 64,375 62,841
General and
administrative
expense 45,352 39,727 22,984 129,214 153,889
Occupancy expense 4,287 4,133 4,800 12,715 15,113
Depreciation and
amortization 6,729 6,379 8,931 20,774 27,329
Servicing expense 12,138 8,184 8,427 30,321 25,155
Other interest
expense 44,292 43,998 45,129 131,555 144,676
----------- ----------- ----------- ----------- -----------
Total expenses 333,613 314,871 311,003 968,209 961,497
----------- ----------- ----------- ----------- -----------
(Loss) income
before income
taxes (10,289) (32,334) 3,595 (88,727) (158,725)
Income tax
(benefit) expense (1,555) (7,061) 923 (14,023) (24,040)
----------- ----------- ----------- ----------- -----------
Net (loss)
income (8,734) (25,273) 2,672 (74,704) (134,685)
Net (loss)
income
attributable
to
noncontrolling
interests (3,852) (11,885) 1,303 (34,538) (69,588)
----------- ----------- ----------- ----------- -----------
Net (loss)
income
attributable
to loanDepot,
Inc. $ (4,882) $ (13,388) $ 1,369 $ (40,166) $ (65,097)
=========== =========== =========== =========== ===========
Basic (loss)
income per
share $ (0.02) $ (0.06) $ 0.01 $ (0.19) $ (0.36)
Diluted (loss)
income per
share $ (0.02) $ (0.06) $ 0.01 $ (0.19) $ (0.36)
Weighted average
shares outstanding
Basic 211,442,981 207,948,195 185,385,271 206,745,124 183,041,489
Diluted 211,442,981 207,948,195 332,532,984 206,745,124 183,041,489
Consolidated Balance Sheets
Sep 30, Jun 30, Dec 31,
($ in thousands) 2025 2025 2024
---------- ---------- ----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 459,161 $ 408,623 $ 421,576
Restricted cash 66,711 69,478 105,645
Loans held for sale, at fair
value 2,606,361 2,622,959 2,603,735
Loans held for investment,
at fair value 111,341 111,591 116,627
Derivative assets, at fair
value 54,582 69,841 44,389
Servicing rights, at fair
value 1,637,930 1,635,991 1,633,661
Trading securities, at fair
value 85,980 86,071 87,466
Property and equipment, net 58,037 60,036 61,079
Operating lease right-of-use
asset 24,679 25,716 20,432
Loans eligible for
repurchase 916,911 882,346 995,398
Investments in joint
ventures 18,270 18,262 18,113
Other assets 205,022 217,812 235,907
--------- --------- ---------
Total assets $6,244,985 $6,208,726 $6,344,028
========= ========= =========
LIABILITIES AND EQUITY
LIABILITIES:
Warehouse and other lines of
credit $2,382,706 $2,411,416 $2,377,127
Accounts payable and accrued
expenses 373,627 358,553 379,439
Derivative liabilities, at
fair value 12,085 19,100 25,060
Liability for loans eligible
for repurchase 916,911 882,346 995,398
Operating lease liability 35,476 36,323 33,190
Debt obligations, net 2,090,870 2,061,938 2,027,203
--------- --------- ---------
Total liabilities 5,811,675 5,769,676 5,837,417
EQUITY:
Total equity 433,310 439,050 506,611
--------- --------- ---------
Total liabilities and
equity $6,244,985 $6,208,726 $6,344,028
========= ========= =========
Loan Origination and Sales Data
Three Months Ended Nine Months Ended
------------------ ---------------------------------- ------------------------
($ in thousands) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2025 2025 2024 2025 2024
------------------ ---------- ---------- ---------- ----------- -----------
Loan origination
volume by type:
Conventional
conforming $2,841,170 $2,967,898 $3,254,702 $ 7,927,934 $ 8,991,282
FHA/VA/USDA 2,498,743 2,616,977 2,564,827 7,236,928 6,489,956
Jumbo 444,946 422,732 300,086 1,187,068 646,787
Other 749,115 726,922 539,714 2,090,501 1,180,289
--------- --------- --------- ---------- ----------
Total $6,533,974 $6,734,529 $6,659,329 $18,442,431 $17,308,314
========= ========= ========= ========== ==========
Loan origination volume by
purpose:
Purchase $3,949,864 $4,263,771 $4,378,575 $11,277,549 $12,057,993
Refinance - cash
out 2,136,089 1,978,142 1,954,071 5,961,407 4,660,580
Refinance -
rate/term 448,021 492,616 326,683 1,203,475 589,741
--------- --------- --------- ---------- ----------
Total $6,533,974 $6,734,529 $6,659,329 $18,442,431 $17,308,314
========= ========= ========= ========== ==========
Loans sold:
Servicing
retained $4,168,356 $4,296,646 $3,818,375 $11,918,712 $10,816,315
Servicing
released 2,488,073 2,645,958 2,487,589 6,847,994 5,833,916
--------- --------- --------- ---------- ----------
Total $6,656,429 $6,942,604 $6,305,964 $18,766,706 $16,650,231
========= ========= ========= ========== ==========
Third 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/Q4I4144769 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. 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. We have excluded expenses directly related to the cybersecurity incident in January 2024 that resulted from unauthorized access to our systems (the "Cybersecurity Incident"), net of insurance recoveries during fiscal 2024, such as 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, and impairment charges to 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 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. 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 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 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 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 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 Nine Months Ended
------------------ ---------------------------- ------------------
Reconciliation of
Total Revenue to
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