Strategic expansion and continued productivity gains drive higher unit volume, stronger margins and improved operating efficiency despite rising interest rates and a challenging housing market.
Third Quarter 2026 Highlights:
-- Origination volume declined 12% to $7.05 billion, while unit volume
increased 7% from the second quarter of 2026, reflecting continued
momentum in the Company's expansion of home equity lending products.
-- Revenue decreased 9% to $307 million and adjusted revenue decreased 2%
to $302 million compared to the prior quarter, primarily due to lower
origination income resulting from reduced mortgage volumes.
-- Pull-through weighted gain on sale margin increased 54 basis points to
399 basis points, driven by deliberate shift toward higher-margin home
equity loans.
-- Operating leverage strengthened as expenses decreased by a greater
amount than adjusted revenue, reflecting investment in productivity
initiatives and benefits of a more efficient product mix.
-- Impact of previously announced productivity initiatives increased from
$12 million to $25 million of annualized cost savings expected to be
realized through the remainder of 2026.
-- Net loss of $29 million, compared with $7 million in the prior
quarter.
-- Adjusted net loss of $31 million, compared with $29 million in the
prior quarter.
-- Adjusted EBITDA of $17 million, compared with $20 million in the prior
quarter.
-- Repurchased $87 million of senior notes at an average purchase price of
88% of par.
-- Completed the sale of $10 billion of Agency mortgage servicing rights
("MSRs") and entered into an agreement to sell an additional $9 billion
of Government MSRs, which closed in October.
IRVINE, Calif.--(BUSINESS WIRE)--November 09, 2026--
loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, "loanDepot" or the "Company"), today announced results for the third quarter ended September 30, 2026.
"Our third-quarter results demonstrate the progress we have made transforming loanDepot's operating model over the last year, despite a significantly more challenging mortgage market throughout 2026," said loanDepot Founder and Chief Executive Officer Anthony Hsieh. "While our third-quarter financial results were impacted by market conditions that became increasingly difficult compared to earlier in the year, the broader momentum in our business is clearly evident when viewed against where we were a year ago. Compared to the third quarter of 2025, we increased origination volume by 8%, grew unit volume by 33%, increased purchase volume by 10%, improved return on marketing by 14%, and reduced our cost to produce by 16%(1) . These results reflect the success of our ongoing turnaround efforts to diversify revenue sources, improve operating efficiency, and strengthen our competitive position across market cycles.
Hsieh continued, "Our strategic expansion into home equity lending creates attractive growth opportunities by serving homeowners seeking access to liquidity while preserving their low-rate first mortgages. The rapid growth of this business reflects both the agility of our platform and the strength of our technology investments, which have enabled us to scale efficiently while delivering a seamless customer experience. Based on our analysis of publicly available industry data and internal estimates, we believe loanDepot ranked among the top three non-bank home equity lenders during the third quarter based on volume. This growth demonstrates the power of our Direct to Consumer channel, which we believe is one of only two scaled, branded, Fintech modeled, direct-to-consumer mortgage platforms in the marketplace. At the same time, we remain deeply committed to the purchase market, where we continue to expand our partnerships with homebuilders while also growing our retail loan officer sales force. Together, these investments led to a 9% gain in our purchase mortgage market share compared to a year ago. Finally, our productivity initiatives continue to deliver measurable results as we streamline operations through automation and technology-enabled efficiencies, including automated underwriting and digital closing technologies.
Hsieh concluded, "While elevated interest rates remain a headwind for mortgage demand, we believe the actions we have taken to diversify our product offerings, expand our purchase market presence, improve efficiency, strengthen margins, and optimize our balance sheet have positioned loanDepot to emerge from this cycle as a stronger and more competitive company. We remain focused on growing market share, improving profitability, and creating long-term value for our shareholders."
"Despite persistent pressure on industry mortgage volumes from higher interest rates, we continued to make progress against our strategic priorities of improving operating efficiency, expanding revenue opportunities and strengthening the path toward sustainable profitability," said David Hayes, Chief Financial Officer. "We also continued to proactively manage liquidity and our balance sheet. During the quarter, we completed the sale of approximately $10 billion of Agency MSRs, and combined with the opportunistic repurchase of senior notes at a discount to par, these transactions contributed to a reduction in net debt obligations by approximately $114 million, strengthened our liquidity position and enhanced financial flexibility as we continue executing our long-term strategy. In October, we sold an additional $9 billion of Government MSRs."
Hayes concluded, "We continue to actively work to address our upcoming debt maturities and are pursuing several financing alternatives to refinance or extend our debt with financing counterparties. Our focus is on extending our debt maturity profile."
(______________________________) (1) Internal management metrics: Return on marketing is lead expense to direct channel revenue and cost per funded loan is mortgage origination-related expenses to total origination volume.
Third Quarter Highlights:
Financial Summary
Three Months Ended Nine Months Ended
---------------------------------------------- --------------------------------
($ in thousands
except per share
data) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2026 2026 2025 2026 2025
-------------- -------------- -------------- --------------- ---------------
Rate lock volume $7,519,545 $8,994,216 $9,463,052 $27,959,256 $25,661,739
Pull-through
weighted lock
volume(1) 5,607,089 6,632,371 6,970,592 20,513,652 18,737,337
Loan origination
volume 7,047,829 7,993,712 6,533,974 22,700,160 18,442,431
Gain on sale
margin(2) 3.18% 2.86% 3.61% 2.98% 3.46%
Pull-through
weighted gain
on sale
margin(3) 3.99% 3.45% 3.39% 3.30% 3.41%
Financial
Results
Total revenue $ 307,145 $ 337,321 $ 323,324 $ 930,853 $ 879,482
Total expense 335,741 343,938 333,613 1,021,179 968,209
Net loss (28,686) (6,622) (8,734) (90,250) (74,704)
Diluted loss per
share $ (0.08) $ (0.02) $ (0.02) $ (0.27) $ (0.19)
Non-GAAP
Financial
Measures(4)
Adjusted total
revenue $ 302,208 $ 307,341 $ 325,368 $ 908,853 $ 895,997
Adjusted net
loss (30,829) (29,435) (2,688) (93,821) (44,364)
Adjusted EBITDA 16,917 20,268 48,998 51,546 93,199
(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 $10.4 million from the second
quarter of 2026, primarily reflecting lower servicing expense and other
interest expense.
-- Pull-through weighted lock volume was $5.6 billion for the third
quarter of 2026, a decrease of $1.0 billion or 15% from the second
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 third quarter of 2026 was $7.0 billion,
a decrease of $945.9 million or 12% from the second quarter of 2026.
-- Purchase volume totaled 61% of total loans originated during the third
quarter, up from 57% during the second quarter of 2026.
-- Our preliminary organic refinance consumer direct recapture rate3
decreased to 52% for the third quarter from the second quarter 2026's
recapture rate of 68%.
Outlook for the fourth quarter of 2026
-- Pull-through weighted rate lock volume of between $3.25 billion and
$5.25 billion.
-- Origination volume of between $4.5 billion and $6.5 billion.
-- Pull-through weighted gain on sale margin of between 425 basis points
and 465 basis points.
-- Gain on sale margin of between 315 basis points and 355 basis points.
(______________________________)
(2) Volume related expenses include commissions, marketing and
advertising expense, and direct origination expense. All remaining
expenses are considered non-volume related.
Servicing
Three Months Ended Nine Months Ended
------------------------------- ------------------------
Servicing Revenue Data:
($ in thousands) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2026 2026 2025 2026 2025
--------- --------- --------- ---------- ------------
Due to
collection/realization
of cash flows $(42,448) $(49,538) $(44,154) $(143,428) $(123,162)
Due to changes in
valuation inputs or
assumptions 80,371 36,677 (12,007) 117,496 (35,551)
Realized (losses) gains
on sale of servicing
rights(1) (1) (588) 45 (1,478) 151
Other realized (losses)
gains on sales of
servicing rights(2) (1,328) 210 (211) (1,173) (484)
Net (loss) gain from
derivatives hedging
servicing rights (74,105) (6,319) 10,129 (92,845) 19,369
------- ------- ------- -------- --------
Valuation changes in
servicing rights,
net of hedging
gains and losses 4,937 29,980 (2,044) 22,000 (16,515)
------- ------- ------- -------- --------
Changes in fair value
of servicing rights,
net $(37,511) $(19,558) $(46,198) $(121,428) $(139,677)
======= ======= ======= ======== ========
Servicing fee income $112,672 $111,964 $111,783 $ 333,385 $ 324,270
======= ======= ======= ======== ========
(1) Includes realized MSR sale gain and broker fees
(2) Includes the (provision) recovery for estimated losses.
(______________________________)
(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 October 16, 2026.
Three Months Ended Nine Months Ended
------------------------------------- --------------------------
Servicing Rights, at Fair
Value: ($ in thousands) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2026 2026 2025 2026 2025
----------- ----------- ----------- ----------- -------------
Balance at beginning of
period $1,751,543 $1,669,648 $1,616,854 $1,637,706 $1,615,510
Additions 79,201 98,335 69,163 264,686 188,789
Sales proceeds, net (165,696) (2,991) (11,642) (172,012) (27,478)
Changes in fair value:
Due to changes in
valuation inputs or
assumptions 80,371 36,677 (12,007) 117,496 (35,551)
Due to
collection/realization
of cash flows (42,448) (49,538) (44,154) (143,428) (123,162)
Realized (losses) gains
on sales of servicing
rights(1) (1) (588) 45 (1,478) 151
--------- --------- --------- --------- ---------
Total changes in
fair value 37,922 (13,449) (56,116) (27,410) (158,562)
--------- --------- --------- --------- ---------
Balance at end of period
(2) $1,702,970 $1,751,543 $1,618,259 $1,702,970 $1,618,259
========= ========= ========= ========= =========
(1) Includes realized MSR sale gain and broker fees.
(2) Balances are net of $22.5 million, $28.3 million, and $19.7 million of
servicing rights liability as of September 30, 2026, June 30, 2026, and
September 30, 2025, respectively.
% Change
-------------------
Servicing
Portfolio Data: ($ Sep-26 Sep-26
in thousands) Sep 30, Jun 30, Sep 30, vs vs
(Unaudited) 2026 2026 2025 Jun-26 Sep-25
------------------ ---------------- ---------------- ---------------- -------- ---------
Servicing
portfolio (unpaid
principal
balance) $115,791,359 $123,387,503 $118,228,146 (6.2)% (2.1)%
Total servicing
portfolio
(units) 441,209 465,089 440,358 (5.1) 0.2
60+ days
delinquent ($) $ 2,371,572 $ 2,142,638 $ 1,715,453 10.7 38.2
60+ days
delinquent (%) 2.0% 1.7% 1.5%
Servicing rights,
net to UPB 1.5% 1.4% 1.4%
Balance Sheet Highlights
% Change
--------------------
Sep-26 Sep-26
($ in thousands) Sep 30, Jun 30, Sep 30, vs vs
(Unaudited) 2026 2026 2025 Jun-26 Sep-25
------------------ ---------- ---------- ---------- --------- ---------
Cash and cash
equivalents $ 214,413 $ 229,128 $ 459,161 (6.4)% (53.3)%
Loans held for
sale, at fair
value 1,979,288 2,643,032 2,606,361 (25.1) (24.1)
Loans held for
investment, at
fair value 116,221 106,268 111,341 9.4 4.4
Servicing rights,
at fair value 1,725,465 1,779,817 1,637,930 (3.1) 5.3
Total assets 6,163,751 6,696,560 6,244,985 (8.0) (1.3)
Warehouse and
other lines of
credit 1,851,744 2,443,802 2,382,706 (24.2) (22.3)
Total liabilities 5,852,837 6,363,514 5,811,675 (8.0) 0.7
Total equity 310,914 333,046 433,310 (6.6) (28.2)
A decrease in loans held for sale at September 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 September 30, 2026 and June 30, 2026. Available borrowing capacity was $2.5 billion at September 30, 2026.
Consolidated Statements of Operations
($ in thousands
except per share
data) (Unaudited) Three Months Ended Nine Months Ended
------------------------------------------- ------------------------------
Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
2026 2026 2025 2026 2025
------------- ------------- ------------- ------------- ---------------
REVENUES:
Interest income $ 37,811 $ 39,692 $ 39,937 $ 116,886 $ 115,954
Interest expense (34,852) (37,433) (36,878) (108,964) (107,937)
----------- ----------- ----------- ----------- -----------
Net interest
income 2,959 2,259 3,059 7,922 8,017
Gain on
origination and
sale of loans,
net 159,372 176,740 201,304 528,118 542,490
Origination
income, net 64,607 52,224 34,750 149,453 95,539
Servicing fee
income 112,672 111,964 111,783 333,385 324,270
Change in fair
value of
servicing rights,
net (37,511) (19,558) (46,198) (121,428) (139,677)
Other income 5,046 13,692 18,626 33,403 48,843
----------- ----------- ----------- ----------- -----------
Total net
revenues 307,145 337,321 323,324 930,853 879,482
EXPENSES:
Personnel expense 171,507 180,729 161,150 527,603 465,427
Marketing and
advertising
expense 27,717 26,694 37,700 83,417 113,828
Direct origination
expense 34,572 27,840 21,965 87,500 64,375
General and
administrative
expense 44,774 47,528 45,352 139,183 129,214
Occupancy expense 4,808 4,595 4,287 13,678 12,715
Depreciation and
amortization 5,833 5,869 6,729 18,037 20,774
Servicing expense 8,551 8,820 12,138 28,849 30,321
Other interest
expense 37,979 41,863 44,292 122,912 131,555
----------- ----------- ----------- ----------- -----------
Total expenses 335,741 343,938 333,613 1,021,179 968,209
----------- ----------- ----------- ----------- -----------
Loss before income
taxes (28,596) (6,617) (10,289) (90,326) (88,727)
Income tax expense
(benefit) 90 5 (1,555) (76) (14,023)
----------- ----------- ----------- ----------- -----------
Net loss (28,686) (6,622) (8,734) (90,250) (74,704)
Net loss
attributable
to
noncontrolling
interests (8,957) (2,089) (3,852) (28,501) (34,538)
----------- ----------- ----------- ----------- -----------
Net loss
attributable
to loanDepot,
Inc. $ (19,729) $ (4,533) $ (4,882) $ (61,749) $ (40,166)
=========== =========== =========== =========== ===========
Basic loss per
share $ (0.08) $ (0.02) $ (0.02) $ (0.27) $ (0.19)
Diluted loss
per share $ (0.08) $ (0.02) $ (0.02) $ (0.27) $ (0.19)
Weighted average
shares
outstanding
Basic 232,312,698 231,643,671 211,442,981 230,969,256 206,745,124
Diluted 232,312,698 231,643,671 211,442,981 230,969,256 206,745,124
Consolidated Balance Sheets
Sep 30, Jun 30, Dec 31,
($ in thousands) 2026 2026 2025
---------- ---------- ----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 214,413 $ 229,128 $ 337,232
Restricted cash 119,126 70,717 63,790
Loans held for sale, at fair
value 1,979,288 2,643,032 3,165,542
Loans held for investment, at
fair value 116,221 106,268 109,821
Derivative assets, at fair
value 72,842 59,225 42,365
Servicing rights, at fair
value 1,725,465 1,779,817 1,658,223
Trading securities, at fair
value 75,179 82,008 85,640
Property and equipment, net 71,075 65,485 61,929
Operating lease right-of-use
asset 23,358 25,951 23,877
Loans eligible for repurchase 1,504,587 1,401,739 1,074,386
Investments in joint ventures 18,128 18,177 18,251
Other assets 244,069 215,013 216,880
--------- --------- ---------
Total assets $6,163,751 $6,696,560 $6,857,936
========= ========= =========
LIABILITIES AND EQUITY
LIABILITIES:
Warehouse and other lines of
credit $1,851,744 $2,443,802 $2,902,539
Accounts payable and accrued
expenses 418,375 346,638 349,350
Derivative liabilities, at
fair value 29,424 6,341 10,718
Liability for loans eligible
for repurchase 1,504,587 1,401,739 1,074,386
Operating lease liability 32,638 34,790 34,630
Debt obligations, net 2,016,069 2,130,204 2,100,303
--------- --------- ---------
Total liabilities 5,852,837 6,363,514 6,471,926
EQUITY:
Total equity 310,914 333,046 386,010
--------- --------- ---------
Total liabilities and
equity $6,163,751 $6,696,560 $6,857,936
========= ========= =========
Loan Origination and Sales Data
Three Months Ended Nine Months Ended
------------------ ---------------------------------- ------------------------
($ in thousands) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2026 2026 2025 2026 2025
------------------ ---------- ---------- ---------- ----------- -----------
Loan origination
volume by type:
Conventional
conforming $2,366,023 $3,263,295 $2,841,170 $ 9,562,630 $ 7,927,934
FHA/VA/USDA 2,117,326 2,819,401 2,498,743 7,423,171 7,236,928
Jumbo 931,029 794,773 444,946 2,394,047 1,187,068
Other 1,633,451 1,116,243 749,115 3,320,312 2,090,501
--------- --------- --------- ---------- ----------
Total $7,047,829 $7,993,712 $6,533,974 $22,700,160 $18,442,431
========= ========= ========= ========== ==========
Loan origination volume by
purpose:
Purchase $4,325,991 $4,560,891 $3,949,864 $12,046,133 $11,277,549
Refinance -
cash out 2,434,701 2,650,296 2,136,089 7,713,225 5,961,407
Refinance -
rate/term 287,137 782,525 448,021 2,940,802 1,203,475
--------- --------- --------- ---------- ----------
Total $7,047,829 $7,993,712 $6,533,974 $22,700,160 $18,442,431
========= ========= ========= ========== ==========
Loans sold:
Servicing
retained $5,222,684 $6,713,623 $4,168,356 $17,685,323 $11,918,712
Servicing
released 2,495,561 2,001,477 2,488,073 6,421,676 6,847,994
--------- --------- --------- ---------- ----------
Total $7,718,245 $8,715,100 $6,656,429 $24,106,999 $18,766,706
========= ========= ========= ========== ==========
Third Quarter Earnings Call
Management will host a conference call and live webcast today at 1:00 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/498655934. 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, the effects of contractual prepayment protection, broker fees associated with 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 third quarter of 2026, we began to include the effects of contractual prepayment protection and broker fees associated with the sale of MSRs to appropriately capture all valuation changes in MSRs up to and including the sales date and broker fees as they are directly attributable to, and reduce, the consideration received on MSR sales to reflect the net value realized. Prior periods have been revised to conform with this new presentation. 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 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 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 Loss, Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA are not intended as alternatives to total revenue, net loss, net loss attributable to the Company, 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 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
Adjusted Total
Revenue ($ in
thousands) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2026 2026 2025 2026 2025
------------------ --------- --------- -------- --------- --------
Total net revenue $307,145 $337,321 $323,324 $930,853 $879,482
Valuation
changes in
servicing
rights, net of
hedging gains
and losses(1) (4,937) (29,980) 2,044 (22,000) 16,515
------- ------- ------- ------- -------
Adjusted total
revenue $302,208 $307,341 $325,368 $908,853 $895,997
======= ======= ======= ======= =======
(1) Represents the change in the fair value of servicing rights due to
changes in valuation inputs or assumptions, net of gains or losses from
derivatives hedging servicing rights and gains (losses) from the sale
of MSRs. Beginning in the third quarter of 2026, we began to include
the effects of contractual prepayment protection and broker fees
associated with the sale of MSRs to appropriately capture all valuation
changes in MSRs up to and including the sales date and broker fees as
they are directly attributable to, and reduce, the consideration
received on MSR sales to reflect the net value realized. Prior periods
have been revised to conform with this new presentation.
Three Months Ended Nine Months Ended
--------------------- ------------------------------ ----------------------
Reconciliation of Net
Loss to Adjusted Net
Loss ($ in thousands) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2026 2026 2025 2026 2025
--------------------- --------- --------- -------- --------- -----------
Net loss attributable
to loanDepot, Inc. $(19,729) $ (4,533) $(4,882) $(61,749) $(40,166)
Net loss from the pro
forma conversion of
Class B or Class C
common stock to
Class A common stock
(1) (8,957) (2,089) (3,852) (28,501) (34,538)
------- ------- ------ ------- -------
Net loss (28,686) (6,622) (8,734) (90,250) (74,704)
Adjustments to the
(provision)
benefit for
income taxes(2) (27) 5 978 23 8,769
------- ------- ------ ------- -------
Tax-effected net loss (28,713) (6,617) (7,756) (90,227) (65,935)
Valuation
changes in
servicing
rights, net of
hedging gains
and losses(3) (4,937) (29,980) 2,044 (22,000) 16,515
Stock-based
compensation
expense 6,307 5,281 3,599 17,982 7,060
Restructuring
charges(4) 362 1,198 2,147 2,269 4,425
Cybersecurity
incident(5) 414 1,058 473 1,594 1,562
Gain on
extinguishment
of debt (4,122) (1,170) -- (5,292) --
(Gain) loss on
disposal of
fixed assets (483) 1,596 3 1,040 30
Other
impairment(6) 38 -- -- 38 5
Tax effect of
adjustments(7) 305 (801) (3,198) 775 (8,026)
------- ------- ------ ------- -------
Adjusted net loss $(30,829) $(29,435) $(2,688) $(93,821) $(44,364)
======= ======= ====== ======= =======
(1) Reflects net loss to Class A common stock and Class D common stock from
the pro forma exchange of Class B common stock and Class C common
stock.
(2) loanDepot, Inc. is subject to federal, state and local income taxes.
Adjustments to the (provision) benefit 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 Nine Months Ended
---------------- --------------------------------- ----------------------
Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
2026 2026 2025 2026 2025
---------------- ---------- ---------- --------- ----------- ---------
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) 5.06 4.52 4.39 4.80% 4.39%
Effect of
valuation
allowance and
other tax
adjustments (26.36)% (25.29)% --% (25.72)% --%
------ ------ ----- ------ -----
Effective income
tax rate (0.30)% 0.23% 25.39% 0.08% 25.39%
====== ====== ===== ====== =====
(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 third quarter of 2026, we began to include
the effects of contractual prepayment protection and broker fees
associated with the sale of MSRs to appropriately capture all valuation
changes in MSRs up to and including the sales date and broker fees as
they are directly attributable to, and reduce, the consideration
received on MSR sales to reflect the net value realized. Prior periods
have been revised to conform with this new presentation.
(4) Reflects employee severance expense and professional services
associated with restructuring efforts.
(5) Represents 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, professional fees
including legal expenses, 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 Nine Months Ended
--------------- ------------------------------------- ------------------------
Reconciliation
of Diluted
Weighted
Average Shares
Outstanding to
Adjusted
Diluted
Weighted
Average Shares
Outstanding Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2026 2026 2025 2026 2025
--------------- ----------- ----------- ----------- ----------- -----------
Share Data:
Diluted
weighted
average shares
of Class A
common stock
and Class D
common stock
outstanding 232,312,698 231,643,671 211,442,981 230,969,256 206,745,124
Assumed pro
forma
conversion of
weighted
average Class
B common stock
and Class C
common stock
to Class A
common stock
(1) 105,977,644 106,139,515 119,970,814 106,108,197 123,031,001
----------- ----------- ----------- ----------- -----------
Adjusted
diluted
weighted
average shares
outstanding 338,290,342 337,783,186 331,413,795 337,077,453 329,776,125
=========== =========== =========== =========== ===========
(1) Reflects the assumed pro forma exchange and conversion of Class B and
Class C common stock.
Three Months Ended Nine Months Ended
------------------ ------------------------------ ----------------------
Reconciliation of
Net Loss to
Adjusted EBITDA ($
in thousands) Sep 30, Jun 30, Sep 30, Sep 30, Sep 30,
(Unaudited) 2026 2026 2025 2026 2025
------------------ --------- --------- -------- --------- -----------
Net loss $(28,686) $ (6,622) $(8,734) $(90,250) $(74,704)
Interest expense -
non-funding debt
(1) 37,979 41,863 44,292 122,912 131,555
Income tax expense
(benefit) 90 5 (1,555) (76) (14,023)
Depreciation and
amortization 5,833 5,869 6,729 18,037 20,774
Valuation changes
in servicing
rights, net of
hedging gains and
losses(2) (4,937) (29,980) 2,044 (22,000) 16,515
Stock-based
compensation
expense 6,307 5,281 3,599 17,982 7,060
Restructuring
charges(3) 362 1,198 2,147 2,269 4,425
Cybersecurity
incident(4) 414 1,058 473 1,594 1,562
(Gain) loss on
disposal of fixed
assets (483) 1,596 3 1,040 30
Other impairment
(5) 38 -- -- 38 5
------- ------- ------ ------- -------
Adjusted EBITDA $ 16,917 $ 20,268 $48,998 $ 51,546 $ 93,199
======= ======= ====== ======= =======
(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 third quarter of 2026, we began to include
the effects of contractual prepayment protection and broker fees
associated with the sale of MSRs to appropriately capture all valuation
changes in MSRs up to and including the sales date and broker fees as
they are directly attributable to, and reduce, the consideration
received on MSR sales to reflect the net value realized. Prior periods
have been revised to conform with this new presentation.
(3) Reflects employee severance expense and professional services
associated with restructuring efforts.
(4) Represents 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, professional fees
including legal expenses, 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," "aim," "anticipate," "expect," "goal," "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, our expansion of home equity lending and the expected benefits and durability of that strategy; turnaround efforts; competitive advantages and market differentiators; automation, technology and innovation initiatives and investments; strategic opportunities, strengths, plans, focuses, and progress; our momentum; our readiness to take advantage of improved market opportunities; market share; diversified product offerings and revenue sources; hedging strategy benefits; improving profitability; expenses and expense management; liquidity and financing strategies; servicing fee income; productivity initiatives and expected savings and results; loan officer growth; expanding partnership with homebuilders; operating efficiency; loan origination volumes; pull-through weighted lock volume; pull-through weighted gain on sale margin; gain on sale margin; our efforts to address or refinance our senior notes; and actions to reduce, extend or repurchase our debt.
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 our strategic plans and priorities and the success of other business initiatives, including our 5x5 HomeLoan partnerships; 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; our ability to effectively utilize artificial intelligence and emerging technologies; 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 favorably resolve regulatory matters related to the Cybersecurity Incident; adverse changes in macroeconomic and U.S residential real estate and mortgage market conditions, including changes in interest rates, changes in global trade policy and tariffs, geopolitical tensions and conflicts and impacts from government shutdowns; changing federal, state and local laws, as well as changing regulatory enforcement policies and priorities; our failure to regain and maintain compliance with the continued listing standards of the New York Stock Exchange; our ability to address our senior notes; 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, 2025, 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
Since its launch in 2010, loanDepot (NYSE: LDI) has revolutionized the mortgage industry with digital innovations that make transacting easier, faster, and less stressful for customers and originators alike. The Company, which is licensed in all 50 states, helps its customers achieve the American dream of homeownership through a broad suite of lending and real estate services that simplify one of life's most complex transactions. loanDepot is also committed to serving the communities in which its team lives and works through a variety of local and national philanthropic efforts.
LDI-IR
View source version on businesswire.com: https://www.businesswire.com/news/home/20261109383228/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
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