We came across a bullish thesis on loanDepot, Inc. on wallstreetbets subreddit by PaperHandsTheDip. In this article, we will summarize the bulls’ thesis on LDI. loanDepot, Inc.'s share was trading at $2.7100 as of December 1st. LDI’s forward P/E was 26.95 according to Yahoo Finance. 15 Best Mortgage Lenders in America LoanDepot, Inc. (LDI) is a leading U.S. mortgage originator and refinancer that issued around $30 billion in loans last year, down from approximately $100 billion in 2020. The decline refle ...

Financial Performance - Total net revenues for the three months ended September 30, 2025, were $323.3 million, an increase from $314.6 million in the same period of 2024, representing a growth of 2.3%[15] - Net interest income for the three months ended September 30, 2025, was $3.1 million, compared to a net expense of $0.8 million in the same period of 2024[15] - Gain on origination and sale of loans for the three months ended September 30, 2025, was $201.3 million, up from $198.0 million in the same period of 2024, reflecting a growth of 1.2%[15] - Total expenses for the three months ended September 30, 2025, were $333.6 million, compared to $311.0 million in the same period of 2024, an increase of 7.3%[15] - The net loss attributable to loanDepot, Inc. for the three months ended September 30, 2025, was $4.9 million, compared to a net income of $1.4 million in the same period of 2024[15] - The company reported a net loss of $(8,734,000) for the quarter ending September 30, 2025, compared to a net loss of $(4,882,000) for the previous quarter, indicating a deterioration in financial performance[18] - Net loss for the nine months ended September 30, 2025, was $74,704 thousand, compared to a net loss of $134,685 thousand for the same period in 2024, representing a 44.5% improvement[22] - The Company reported a net loss allocated to common stockholders of $4.882 million for the three months ended September 30, 2025, and $40.166 million for the nine months ended September 30, 2025[112] Assets and Liabilities - Cash and cash equivalents as of September 30, 2025, were $459.2 million, an increase from $421.6 million as of December 31, 2024[13] - Total assets as of September 30, 2025, were $6.245 billion, a slight decrease from $6.344 billion as of December 31, 2024[13] - Total liabilities as of September 30, 2025, were $5.812 billion, down from $5.837 billion as of December 31, 2024[13] - The company reported a retained deficit of $592.4 million as of September 30, 2025, compared to $550.6 million as of December 31, 2024[13] - The total outstanding debt obligations net amounted to $2,090.9 million, an increase from $2,027.2 million as of December 31, 2024, reflecting a growth of approximately 3.1%[93] Equity and Shares - The weighted average shares outstanding for basic earnings per share for the three months ended September 30, 2025, were 211,442,981, compared to 185,385,271 for the same period in 2024[15] - As of September 30, 2024, the total equity of the company stands at $592,049,000, reflecting an increase from $578,938,000 as of June 30, 2024, representing a growth of approximately 2%[18] - The number of common shares outstanding increased from 85,982,810 on June 30, 2024, to 90,509,784 on September 30, 2024, marking an increase of approximately 5.9%[18] - The balance of Class A common stock increased to 90,509,784 shares as of September 30, 2024, from 85,982,810 shares as of June 30, 2024, reflecting a growth of approximately 5.9%[18] Cash Flow and Operating Activities - Cash used in operating activities for the nine months ended September 30, 2025, was $68,850 thousand, significantly reduced from $905,982 thousand in 2024[22] - Total cash and cash equivalents and restricted cash at the end of the period was $525,872 thousand, down from $578,641 thousand at the end of September 2024[24] - Net cash provided by investing activities for the nine months ended September 30, 2025, was $22,892 thousand, a significant decrease from $459,874 thousand in 2024[24] Loan Origination and Sales - Proceeds from sales of loans for the nine months ended September 30, 2025, were $19,079,417 thousand, an increase from $16,742,208 thousand in 2024[22] - The Company originated and purchased loans totaling $6,398,006 during the three months ended September 30, 2025, compared to $6,545,027 in the same period of 2024[52] - The total gain on origination and sale of loans, net for the three months ended September 30, 2025, was $201,304, compared to $198,027 for the same period in 2024[53] Servicing Rights and Fees - The outstanding principal balance of the servicing portfolio increased to $118,228,146 as of September 30, 2025, from $115,971,984 as of December 31, 2024[59] - Total servicing fee income for the nine months ended September 30, 2025, was $324,270, compared to $373,273 for the same period in 2024, a decline of 13.1%[60] - The fair value of servicing rights, net, as of September 30, 2025, was $1,618,259, slightly up from $1,615,510 as of December 31, 2024[61] Risk and Compliance - The Company was in compliance with all financial covenants as of September 30, 2025, including minimum levels of profitability and liquidity[93] - The Company has been named as a defendant in 23 putative class action cases related to a cybersecurity incident, with a settlement agreement granted final approval on August 25, 2025[124] - The Company believes it has substantial defenses against the Telephone Consumer Protection Act class action lawsuit filed in June 2022, which seeks actual and statutory damages[129] Market Conditions and Future Outlook - The Company anticipates that interest rates will remain the primary benchmark for market risk for the foreseeable future, affecting loan origination volumes and margins[227] - Prepayment risk is influenced by interest rates and borrower actions, affecting the carrying value of servicing rights and expected servicing income[234]

Core Insights - loanDepot reported a quarterly loss of $0.01 per share, outperforming the Zacks Consensus Estimate of a loss of $0.04, and compared to earnings of $0.03 per share a year ago, resulting in an earnings surprise of +75.00% [1] - The company posted revenues of $323.32 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 13.61% and showing an increase from $314.6 million year-over-year [2] - loanDepot shares have increased approximately 36.8% since the beginning of the year, outperforming the S&P 500's gain of 15.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $277.8 million, and for the current fiscal year, it is -$0.19 on revenues of $1.12 billion [7] - The estimate revisions trend for loanDepot was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Mortgage & Related Services industry, to which loanDepot belongs, is currently ranked in the top 41% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - The company reported an adjusted net loss of $3 million in Q3 2025, an improvement from an adjusted net loss of $16 million in Q2 2025, driven by higher lock volume and servicing revenue [12][14] - Pull-through weighted rate lock volume increased by 10% to $7 billion from $6.3 billion in the previous quarter, aligning with guidance [12][16] - Adjusted total revenue rose to $325 million in Q3 2025, compared to $292 million in Q2 2025 [12][14] - The pull-through weighted gain on sale margin was 339 basis points, up from 330 basis points in the prior quarter [13][14] - Total expenses increased by 6% to $19 million, primarily due to one-time benefits recognized in the prior quarter [14][16] Business Line Data and Key Metrics Changes - Loan origination volume decreased by 3% to $6.5 billion in Q3 2025 from $6.7 billion in Q2 2025 [13] - Servicing fee income increased from $108 million in Q2 2025 to $112 million in Q3 2025, reflecting growth in the servicing portfolio [14] Market Data and Key Metrics Changes - The company expects pull-through weighted lock volume in Q4 2025 to be between $6 billion and $8 billion, and origination volume between $6.5 billion and $8.5 billion [16][17] Company Strategy and Development Direction - The company is focused on a diversified business model with best-in-class origination capabilities across multiple channels, aiming to profitably regain market share [5][10] - A business transformation was initiated in Q3 2025, including new leadership across origination channels and technology functions [6][10] - The company is leveraging technology and innovation to improve customer experience and operational efficiency [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to fund growth opportunities and maintain a strong capital structure despite upcoming debt maturities [21][34] - The company anticipates improved profitability with a sustained decrease in mortgage rates, leveraging its direct origination platform and technology investments [18][34] Other Important Information - The company ended Q3 2025 with $459 million in cash, an increase of $51 million from Q2 2025 [17] - The leadership team has been reshaped to focus on profitable market share growth and operational efficiency [10][18] Q&A Session Summary Question: Outlook for funding growth with capital given upcoming debt maturities - Management feels confident about funding growth opportunities and has supportive lender relationships [21] Question: Minimum level of originations needed to return to profitability - Management indicated that profitability is closely tied to margins, which are dynamic and will improve with increased volume [30] Question: Consideration of capital raising when stock price was higher - Management acknowledged the attractiveness of raising capital at higher stock valuations and is exploring various options to strengthen the capital structure [33][34]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need for users to disable them for better access [1]

Financial Performance - Originations reached $6.5 billion in funded volume[17] - Total revenue was $323.3 million on $7.0 billion of pull-through weighted lock volume[17] - Adjusted revenue amounted to $325.2 million[19] - The company experienced an adjusted net loss of $2.8 million and an adjusted EBITDA of $48.8 million[17] - Unrestricted cash stood at $459 million[19] Operational Highlights - The servicing portfolio increased to $118.2 billion[17] - The organic refinance consumer direct recapture rate was 65%[17] - Purchase mix accounted for 60% of originations[19] - The company serves approximately 440,000 clients[10] Outlook - Q4 2025 pull-through weighted rate lock volume is projected to be between $6.0 billion and $8.0 billion[44] - Q4 2025 origination volume is expected to range from $6.5 billion to $8.5 billion[44]

Financial Performance - Revenue increased 14% quarter-over-quarter to $323 million, with adjusted revenue rising 11% to $325 million, driven by higher pull-through volume and servicing income[5] - Net loss narrowed to $8.7 million, a 65% improvement from the prior quarter's loss of $25.3 million, primarily due to increased revenue[14] - Adjusted EBITDA surged 90% to $49 million compared to $26 million in the previous quarter[5] - Total net revenues for the three months ended September 30, 2025, were $323.3 million, an increase from $282.5 million in the previous quarter[19] - The company reported a net loss of $8.7 million for the three months ended September 30, 2025, compared to a net loss of $25.3 million in the previous quarter[19] - The adjusted total revenue for the nine months ended September 30, 2025, was $895,513 thousand, compared to $838,318 thousand for the same period in 2024, reflecting a growth of 6.8%[30] - For the three months ended September 30, 2025, the net loss attributable to loanDepot, Inc. was $4,882,000, compared to a net income of $1,369,000 for the same period in 2024[31] - The adjusted EBITDA for the nine months ended September 30, 2025, was $92,715,000, a decrease from $98,820,000 for the same period in 2024[37] Loan Origination and Volume - Loan origination volume for the third quarter was $6.5 billion, a decrease of 3% from the previous quarter[11] - Pull-through weighted lock volume reached $7.0 billion, a 10% increase from the second quarter of 2025[11] - The company reported a total loan origination volume of $18,442,431 thousand for the nine months ended September 30, 2025, up 6.5% from $17,308,314 thousand in the same period of 2024[21] - The company reported a total of $2,498,743 thousand in FHA/VA/USDA loan origination volume for the third quarter of 2025, a decrease of 4.5% from $2,616,977 thousand in the previous quarter[21] - Servicing retained loans sold amounted to $4,168,356 thousand in the third quarter of 2025, compared to $4,296,646 thousand in the previous quarter, indicating a decline of 3%[21] Financial Position and Liquidity - Cash balance increased by $51 million to $459 million, strengthening the company's liquidity profile[5] - Cash and cash equivalents increased by 12.4% to $459.2 million as of September 30, 2025, compared to $408.6 million in the previous quarter[18] - Total assets as of September 30, 2025, were $6.2 billion, a slight increase of 0.6% from the previous quarter[18] - Total assets increased to $6,244,985 thousand as of September 30, 2025, compared to $6,208,726 thousand in June 2025, reflecting a growth of 0.6%[20] - The company’s total liabilities increased by 0.7% to $5.8 billion as of September 30, 2025, compared to $5.8 billion in the previous quarter[18] - Total liabilities stood at $5,811,675 thousand as of September 30, 2025, a slight increase from $5,769,676 thousand in June 2025[20] - The company's total equity decreased to $433,310 thousand from $439,050 thousand in the previous quarter, representing a decline of 1.7%[20] - The company’s available borrowing capacity was $1.8 billion as of September 30, 2025[18] Operational Metrics - The servicing portfolio's unpaid principal balance as of September 30, 2025, was $118.2 billion, reflecting a 0.6% increase from the previous quarter and a 2.9% increase year-over-year[16] - The servicing fee income for the three months ended September 30, 2025, was $111.8 million, compared to $108.2 million in the previous quarter[19] - Pull-through weighted gain on sale margin improved by 9 basis points to 339 basis points[5] - Total expenses increased by 6% to $334 million, primarily due to higher personnel and administrative costs[5] - Interest expense for non-funding debt for the three months ended September 30, 2025, was $44,292,000, compared to $45,129,000 for the same period in 2024[37] Challenges and Risks - The company faces risks related to achieving profitability, loan production volume, and maintaining sufficient operating platforms[40] - Future performance is subject to uncertainties including macroeconomic conditions, interest rate changes, and regulatory matters[40] - loanDepot does not guarantee future performance and may not update forward-looking statements unless required by law[40] Strategic Initiatives - The company anticipates focusing on innovation and technology initiatives to improve competitive positioning and financial performance in the future[39] - loanDepot has been licensed in all 50 states since its launch in 2010, revolutionizing the mortgage industry with digital innovations[41] - The company aims to simplify the complex process of homeownership through a broad suite of lending and real estate services[41] - loanDepot is committed to community service through various local and national philanthropic efforts[41] Special Items - The company has excluded expenses related to a cybersecurity incident in January 2024 from its non-GAAP financial measures, which may impact future financial results[25] - The company reported a restructuring charge of $2,147,000 for the three months ended September 30, 2025[37] - The company incurred cybersecurity incident-related expenses of $473,000 for the three months ended September 30, 2025[37] - The net loss from the pro forma conversion of Class C common stock was $8,734,000 for the three months ended September 30, 2025[31]

Core Insights - loanDepot, Inc. has appointed Nikul Patel as its Chief Growth Officer, indicating a strategic move to enhance growth opportunities and customer engagement [1] Company Developments - The appointment of Nikul Patel is seen as a significant addition to the leadership team, with expectations for transformational impact on the company's growth strategy [1] - Founder and CEO Anthony Hsieh emphasized Patel's impressive background and potential contributions to the company [1]

Core Insights - loanDepot, Inc. has appointed Alec Hanson as Senior Vice President of Production for the West division [1] - The company now has a team of retail sales leaders including Paul Ramos for the Southeast/Mid-Atlantic division and Mary Bane for the Northeast/Central division [1] Company Developments - Alec Hanson joins the leadership team to enhance production capabilities in the West division [1] - The appointment is part of a strategic move to strengthen retail sales leadership across various divisions [1]

Core Viewpoint - loanDepot, Inc. has announced the promotion of Mary Bane to Senior Vice President of Production for the Northeast/Central division, highlighting the company's commitment to leadership and industry expertise [1] Company Summary - Mary Bane has over 25 years of industry experience, having previously worked as a top producing originator and sales leader at various companies including Prospect Mortgage, Countrywide Home Loans, and American Home Mortgage [1] - Bane joined loanDepot in 2015, indicating her long-term commitment to the company and her growth within the organization [1]