Strategic expansion into home equity drove unit volume growth of 25%, and revenue growth of 18%, improved operating leverage and substantially narrowed the quarterly loss compared to prior quarter.
Second Quarter 2026 Highlights:
-- Loan origination volume increased 4% to $7.99 billion and unit volume
increased 25% from the first quarter of 2026, demonstrating meaningful
progress in the Company's strategic expansion into home equity lending
through its 5X5 HomeLoan product.
-- Revenue grew 18% to $337 million and adjusted revenue increased 3% to
$308 million compared to the prior quarter, primarily due to higher
origination income and servicing revenue.
-- Pull-through weighted gain on sale margin increased 74 basis points to
345 basis points, supported by the Company's deliberate mix shift toward
higher-margin home equity and government loans.
-- Operating leverage strengthened as revenue increased while expenses
increased less than 1% to $344 million from the prior quarter, reflecting
disciplined cost management and benefits of a more efficient product mix;
return on marketing increased 70% and cost-per-funded loan decreased 12%
from the second quarter of 20251.
-- The Company has begun actioning approximately $12 million of annualized
productivity initiatives progressing through the remainder of the year.
-- Net loss was narrowed to $7 million, compared with a net loss of $55
million in the prior quarter.
-- Adjusted net loss was $29 million, compared with adjusted net loss of
$34 million in the prior quarter.
-- Adjusted EBITDA was $20 million, compared to adjusted EBITDA of $14
million in the prior quarter.
-- The Company repurchased $16 million of senior notes at an average
purchase price of 90% of par during the quarter and repurchased an
additional $27 million of notes at an average purchase price of 86% of
par post quarter end through July 30, 2026.
IRVINE, Calif.--(BUSINESS WIRE)--August 04, 2026--
loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, "loanDepot" or the "Company"), today announced results for the second quarter ended June 30, 2026.
"We have moved decisively to reshape the business for profitable market share growth in any macro environment and are starting to see the signs of our progress: we are making more loans, faster and at a lower cost," said loanDepot Founder and Chief Executive Officer Anthony Hsieh. "In the second quarter, revenue increased, operating leverage improved, and our net loss narrowed substantially even as interest rates rose meaningfully beginning in March. The pace of improvement accelerated as the quarter progressed, with June demonstrating the strongest results so far this year.
Hsieh continued, "A central driver of this momentum is the progress we made during the second quarter in executing our strategic expansion into home equity lending. This represents a significant expansion opportunity within a market supported by approximately $35 trillion of U.S. homeowner equity. Importantly, these are the same homeowners we have long served through traditional refinance products. In a higher-rate environment, however, home equity products can allow qualified borrowers to access liquidity while preserving an attractive first-mortgage rate and may offer a more compelling value proposition than higher-cost alternatives such as unsecured personal loans, credit cards, and certain small business financing products.
"Home equity lending is more stable, less rate sensitive, and less seasonal than refinance and purchase mortgage lending. Loan balances are smaller, but gain on sale and revenue are both typically higher, and our cost to produce is significantly lower. We are now seeing the results of this pivot. The second quarter results demonstrate that this strategic shift is beginning to translate into measurable growth, stronger margins and improved operating leverage.
"During the year, we continued to expand our core mortgage franchise by adding builder partners in our joint venture channel and branch locations in our retail channel. That growth contributed to an increase in purchase market share during the quarter and reinforces the durability of our diversified origination platform.
"Our ability to pivot toward home equity while continuing to grow purchase market share reflects the agility of our team and the adaptability of loanDepot's differentiated model. We believe our nationally recognized brand, valuable servicing portfolio, diversified origination channels, proven ability to develop loan officers organically, industry-leading recapture capabilities, and technology-enabled customer acquisition platform allow us to redirect capacity toward the products that offer the greatest customer and shareholder value in a given rate environment. Few originators have the resources, customer relationships or operating expertise to make that transition at scale. As refinance and purchase opportunities expand, we expect to deploy the same platform and execution discipline to capture them quickly. This is what it means to be built to compete across market cycles."
Chief Financial Officer David Hayes said, "The second quarter represented another meaningful step forward in our financial performance and showed that we can increase funded volume while maintaining disciplined expense management and a clear focus on profitability. The benefits of our product mix shift were evident in higher revenue, stronger pull-through weighted gain on sale margin and an improved bottom line. Maintaining strong liquidity remains a top priority, and we took advantage of favorable market conditions to monetize approximately $10 billion of servicing rights after quarter end. We also continue to evaluate opportunities to optimize our capital structure. Addressing the Company's bond maturities remains a high priority for management, and we are evaluating a range of options with the support of retained advisors."
____________________ (1) Internal management metrics: Return on marketing is lead expense to Direct channel revenue and Cost per funded loan is mortgage-related expenses to total origination volume.
Second Quarter Highlights:
Financial Summary
Three Months Ended Six Months Ended
----------------------------------------------- --------------------------------
($ in thousands
except per share
data) Jun 30, Mar 31, Jun 30, Jun 30, Jun 30,
(Unaudited) 2026 2026 2025 2026 2025
-------------- --------------- -------------- --------------- ---------------
Rate lock volume $8,994,216 $11,445,494 $8,560,699 $20,439,710 $16,198,686
Pull-through
weighted lock
volume(1) 6,632,371 8,274,191 6,348,060 14,906,562 11,766,745
Loan origination
volume 7,993,712 7,658,619 6,734,529 15,652,331 11,908,457
Gain on sale
margin(2) 2.86% 2.93% 3.11% 2.90% 3.38%
Pull-through
weighted gain
on sale
margin(3) 3.45% 2.71% 3.30% 3.04% 3.42%
Financial
Results
Total revenue $ 337,321 $ 286,387 $ 282,537 $ 623,708 $ 556,158
Total expense 343,938 341,500 314,871 685,438 634,596
Net loss (6,622) (54,942) (25,273) (61,564) (65,969)
Diluted loss per
share $ (0.02) $ (0.16) $ (0.06) $ (0.18) $ (0.17)
Non-GAAP
Financial
Measures(4)
Adjusted total
revenue $ 307,551 $ 299,250 $ 291,912 $ 606,801 $ 570,356
Adjusted net
loss (29,226) (33,624) (16,013) (62,839) (41,368)
Adjusted EBITDA 20,478 14,305 25,631 34,783 43,928
(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-volume2 related expenses decreased $6.4 million from the first
quarter of 2026, primarily reflecting lower salary-related costs,
servicing expense, and other interest expense.
-- Pull-through weighted lock volume was $6.6 billion for the second
quarter of 2026, a decrease of $1.6 billion or 20% from the first quarter,
primarily reflecting the Company's strategic mix shift toward
higher-margin HELOC production, which does not carry an associated
interest rate lock.
-- Loan origination volume for the second quarter of 2026 was $8.0 billion,
an increase of $335.1 million or 4% from the first quarter of 2026.
-- Purchase volume totaled 57% of total loans originated during the second
quarter, up from 41% during the first quarter of 2026.
-- Our preliminary organic refinance consumer direct recapture rate3
decreased to 68% for the second quarter from the first quarter 2026's
recapture rate of 73%.
Outlook for the third quarter of 2026
-- Origination volume of between $6.25 billion and $8.25 billion.
-- Pull-through weighted rate lock volume of between $5.25 billion and
$7.25 billion.
-- Pull-through weighted gain on sale margin of between 360 basis points
and 390 basis points.
____________________
(2) Volume related expenses include commissions, marketing and advertising
expense, and direct origination expense. All remaining expenses are
considered non-volume related.
(3) We define organic refinance consumer direct recapture rate as the total
unpaid principal balance ("UPB") of loans in our servicing portfolio that
are paid in full for purposes of refinancing the loan on the same
property, with the Company acting as lender on both the existing and new
loan, divided by the UPB of all loans in our servicing portfolio that
paid in full for the purpose of refinancing the loan on the same
property. The recapture rate is finalized following the publication date
of this release when external data becomes available. Data is as of July
20, 2026.
Servicing
Three Months Ended Six Months Ended
------------------------------- -----------------------
Servicing Revenue Data:
($ in thousands) Jun 30, Mar 31, Jun 30, Jun 30, Jun 30,
(Unaudited) 2026 2026 2025 2026 2025
--------- --------- --------- ---------- -----------
Due to
collection/realization
of cash flows $(49,538) $(51,442) $(42,832) $(100,980) $(79,008)
Due to changes in
valuation inputs or
assumptions 36,677 448 145 37,125 (23,543)
Realized (losses) gains
on sale of servicing
rights (588) (888) 44 (1,477) 106
Net (loss) gain from
derivatives hedging
servicing rights (6,319) (12,423) (9,564) (18,741) 9,239
------- ------- ------- -------- -------
Changes in fair
value of servicing
rights, net of
hedging gains and
losses 29,770 (12,863) (9,375) 16,907 (14,198)
Other realized gains
(losses) on sales of
servicing rights (1) 210 (54) (169) 156 (273)
------- ------- ------- -------- -------
Changes in fair value
of servicing rights,
net $(19,558) $(64,359) $(52,376) $ (83,917) $(93,479)
======= ======= ======= ======== =======
Servicing fee income $111,964 $108,749 $108,209 $ 220,713 $212,487
======= ======= ======= ======== =======
(1) Includes the provision for sold MSRs and broker fees.
Three Months Ended Six Months Ended
------------------------------------- --------------------------
Servicing Rights, at Fair
Value: ($ in thousands) Jun 30, Mar 31, Jun 30, Jun 30, Jun 30,
(Unaudited) 2026 2026 2025 2026 2025
----------- ----------- ----------- ----------- -------------
Balance at beginning of
period $1,669,648 $1,637,706 $1,603,031 $1,637,706 $1,615,510
Additions 98,335 87,150 66,940 185,485 119,626
Sales proceeds (2,991) (3,326) (10,474) (6,316) (15,837)
Changes in fair value:
Due to changes in
valuation inputs or
assumptions 36,677 448 145 37,125 (23,543)
Due to
collection/realization
of cash flows (49,538) (51,442) (42,832) (100,980) (79,008)
Realized (losses) gains
on sales of servicing
rights (588) (888) 44 (1,477) 106
--------- --------- --------- --------- ---------
Total changes in
fair value (13,449) (51,882) (42,643) (65,332) (102,445)
--------- --------- --------- --------- ---------
Balance at end of period
(1) $1,751,543 $1,669,648 $1,616,854 $1,751,543 $1,616,854
========= ========= ========= ========= =========
(1) Balances are net of $28.3 million, $21.6 million, and $19.1 million
of servicing rights liability as of June 30, 2026, March 31, 2026,
and June 30, 2025, respectively.
% Change
-------------------
Servicing
Portfolio Data: ($ Jun-26 Jun-26
in thousands) Jun 30, Mar 31, Jun 30, vs vs
(Unaudited) 2026 2026 2025 Mar-26 Jun-25
------------------ ---------------- ---------------- ---------------- -------- ---------
Servicing
portfolio (unpaid
principal
balance) $123,387,503 $120,674,154 $117,539,884 2.2% 5.0%
Total servicing
portfolio
(units) 465,089 455,634 432,764 2.1 7.5
60+ days
delinquent ($) $ 2,142,638 $ 2,113,465 $ 1,641,165 1.4 30.6
60+ days
delinquent (%) 1.7% 1.8% 1.4%
Servicing rights,
net to UPB 1.4% 1.4% 1.4%
Balance Sheet Highlights
% Change
--------------------
Jun-26 Jun-26
($ in thousands) Jun 30, Mar 31, Jun 30, vs vs
(Unaudited) 2026 2026 2025 Mar-26 Jun-25
------------------ ---------- ---------- ---------- --------- ---------
Cash and cash
equivalents $ 229,128 $ 277,418 $ 408,623 (17.4)% (43.9)%
Loans held for
sale, at fair
value 2,643,032 3,266,759 2,622,959 (19.1) 0.8
Loans held for
investment, at
fair value 106,268 108,227 111,591 (1.8) (4.8)
Servicing rights,
at fair value 1,779,817 1,691,235 1,635,991 5.2 8.8
Total assets 6,696,560 7,246,519 6,208,726 (7.6) 7.9
Warehouse and
other lines of
credit 2,443,802 3,024,131 2,411,416 (19.2) 1.3
Total liabilities 6,363,514 6,909,223 5,769,676 (7.9) 10.3
Total equity 333,046 337,296 439,050 (1.3) (24.1)
A decrease in loans held for sale at June 30, 2026, resulted in a corresponding decrease in the balance on our warehouse lines of credit. Total funding capacity with our lending partners was $4.4 billion at June 30, 2026 and March 31, 2026. Available borrowing capacity was $1.9 billion at June 30, 2026.
Consolidated Statements of Operations
($ in thousands
except per share
data) (Unaudited) Three Months Ended Six Months Ended
------------------------------------------- ------------------------------
Jun 30, Mar 31, Jun 30, Jun 30, Jun 30,
2026 2026 2025 2026 2025
------------- ------------- ------------- ------------- ---------------
REVENUES:
Interest income $ 39,692 $ 39,383 $ 40,946 $ 79,075 $ 76,017
Interest expense (37,433) (36,679) (39,297) (74,112) (71,059)
----------- ----------- ----------- ----------- -----------
Net interest
income 2,259 2,704 1,649 4,963 4,958
Gain on origination
and sale of loans,
net 176,740 192,006 174,810 368,746 341,186
Origination income,
net 52,224 32,622 34,931 84,846 60,789
Servicing fee
income 111,964 108,749 108,209 220,713 212,487
Change in fair
value of servicing
rights, net (19,558) (64,359) (52,376) (83,917) (93,479)
Other income 13,692 14,665 15,314 28,357 30,217
----------- ----------- ----------- ----------- -----------
Total net
revenues 337,321 286,387 282,537 623,708 556,158
EXPENSES:
Personnel expense 180,729 175,367 154,116 356,096 304,277
Marketing and
advertising
expense 26,694 29,006 37,878 55,700 76,128
Direct origination
expense 27,840 25,088 20,456 52,928 42,411
General and
administrative
expense 47,528 46,881 39,727 94,409 83,860
Occupancy expense 4,595 4,275 4,133 8,870 8,429
Depreciation and
amortization 5,869 6,335 6,379 12,204 14,045
Servicing expense 8,820 11,478 8,184 20,298 18,183
Other interest
expense 41,863 43,070 43,998 84,933 87,263
----------- ----------- ----------- ----------- -----------
Total expenses 343,938 341,500 314,871 685,438 634,596
----------- ----------- ----------- ----------- -----------
Loss before income
taxes (6,617) (55,113) (32,334) (61,730) (78,438)
Income tax expense
(benefit) 5 (171) (7,061) (166) (12,469)
----------- ----------- ----------- ----------- -----------
Net loss (6,622) (54,942) (25,273) (61,564) (65,969)
Net loss
attributable
to
noncontrolling
interests (2,089) (17,455) (11,885) (19,544) (30,686)
----------- ----------- ----------- ----------- -----------
Net loss
attributable
to loanDepot,
Inc. $ (4,533) $ (37,487) $ (13,388) $ (42,020) $ (35,283)
=========== =========== =========== =========== ===========
Basic loss per
share $ (0.02) $ (0.16) $ (0.06) $ (0.18) $ (0.17)
Diluted loss
per share $ (0.02) $ (0.16) $ (0.06) $ (0.18) $ (0.17)
Weighted average
shares outstanding
Basic 231,643,671 228,962,329 207,948,195 230,290,154 204,370,382
Diluted 231,643,671 228,962,329 207,948,195 230,290,154 204,370,382
Consolidated Balance Sheets
Jun 30, Mar 31, Dec 31,
($ in thousands) 2026 2026 2025
---------- ---------- ----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 229,128 $ 277,418 $ 337,232
Restricted cash 70,717 79,770 63,790
Loans held for sale, at fair
value 2,643,032 3,266,759 3,165,542
Loans held for investment, at
fair value 106,268 108,227 109,821
Derivative assets, at fair
value 59,225 70,076 42,365
Servicing rights, at fair
value 1,779,817 1,691,235 1,658,223
Trading securities, at fair
value 82,008 83,722 85,640
Property and equipment, net 65,485 63,514 61,929
Operating lease right-of-use
asset 25,951 24,592 23,877
Loans eligible for repurchase 1,401,739 1,344,573 1,074,386
Investments in joint ventures 18,177 18,101 18,251
Other assets 215,013 218,532 216,880
--------- --------- ---------
Total assets $6,696,560 $7,246,519 $6,857,936
========= ========= =========
LIABILITIES AND EQUITY
LIABILITIES:
Warehouse and other lines of
credit $2,443,802 $3,024,131 $2,902,539
Accounts payable and accrued
expenses 346,638 374,374 349,350
Derivative liabilities, at
fair value 6,341 17,253 10,718
Liability for loans eligible
for repurchase 1,401,739 1,344,573 1,074,386
Operating lease liability 34,790 34,325 34,630
Debt obligations, net 2,130,204 2,114,567 2,100,303
--------- --------- ---------
Total liabilities 6,363,514 6,909,223 6,471,926
EQUITY:
Total equity 333,046 337,296 386,010
--------- --------- ---------
Total liabilities and
equity $6,696,560 $7,246,519 $6,857,936
========= ========= =========
Loan Origination and Sales Data
Three Months Ended Six Months Ended
------------------ ---------------------------------- ------------------------
($ in thousands) Jun 30, Mar 31, Jun 30, Jun 30, Jun 30,
(Unaudited) 2026 2026 2025 2026 2025
------------------ ---------- ---------- ---------- ----------- -----------
Loan origination
volume by type:
Conventional
conforming $3,263,295 $3,933,312 $2,967,898 $ 7,196,607 $ 5,086,764
FHA/VA/USDA 2,819,401 2,486,444 2,616,977 5,305,845 4,738,185
Jumbo 794,773 668,245 422,732 1,463,018 742,122
Other 1,116,243 570,618 726,922 1,686,861 1,341,386
--------- --------- --------- ---------- ----------
Total $7,993,712 $7,658,619 $6,734,529 $15,652,331 $11,908,457
========= ========= ========= ========== ==========
Loan origination volume by
purpose:
Purchase $4,560,891 $3,159,251 $4,263,771 $ 7,720,142 $ 7,327,685
Refinance - cash
out 2,650,296 2,628,228 1,978,142 5,278,524 3,825,318
Refinance -
rate/term 782,525 1,871,140 492,616 2,653,665 755,454
--------- --------- --------- ---------- ----------
Total $7,993,712 $7,658,619 $6,734,529 $15,652,331 $11,908,457
========= ========= ========= ========== ==========
Loans sold:
Servicing
retained $6,713,623 $5,749,016 $4,296,646 $12,462,639 $ 7,750,356
Servicing
released 2,001,477 1,924,638 2,645,958 3,926,115 4,359,921
--------- --------- --------- ---------- ----------
Total $8,715,100 $7,673,654 $6,942,604 $16,388,754 $12,110,277
========= ========= ========= ========== ==========
Second 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.
Register online at https://events.q4inc.com/attendee/948119963. A live audio webcast of the conference call will also be available via the Company's website, investors.loandepot.com, under the Events & Presentation tab. A replay of the webcast will be made available 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 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, 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," 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 B and Class C common stock to Class A common stock. These non-GAAP measures have
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