Shares of LoanDepot, Inc (NYSE:LDI) are down 1.8% to trade at $4.44, on track for its first loss in four sessions, pulling back from recent upbeat movement on the charts. In the past two weeks, LDI has twice notched its best-single day percentage gain since February 2021. September in particular is pacing to be its best month yet, up 108.2%, lifting the stock from its April lows to a now 118.4% year-to-date gain.There are plenty of room for upgrades, should bearish sentiment begin to unwind. Heading into to ...

IRVINE, Calif.--(BUSINESS WIRE)--loanDepot, Inc. (NYSE: LDI) ("loanDepot" or the "Company"), today announced it granted inducement equity awards on September 15, 2025, to its recently hired Chief Digital Officer, Dominck Marchetti, and Chief Innovation Officer, Sean DeJulia, as material inducements to their employment with loanDepot. The inducement award to Marchetti consists of 2,000,0000 performance stock units (PSUs). The PSUs will vest based on loanDepot's Class A Common Stock achieving spe. ...

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Net loss improved to $25.3 million in Q2 2025, with total assets at $6.21 billion and equity declining 13.3% Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | $6,208,726 | $6,344,028 | (2.1)% | | Total Liabilities | $5,769,676 | $5,837,417 | (1.2)% | | Total Equity | $439,050 | $506,611 | (13.3)% | Consolidated Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Net Revenues | $282,537 | $265,390 | $556,158 | $488,175 | | Total Expenses | $314,871 | $342,547 | $634,596 | $650,496 | | Net Loss | $(25,273) | $(65,853) | $(65,969) | $(137,357) | | Diluted EPS | $(0.06) | $(0.18) | $(0.17) | $(0.37) | Consolidated Statement of Cash Flows Highlights (Six Months Ended, in thousands) | Cash Flow Activity | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(112,263) | $(556,814) | | Net Cash Provided by Investing Activities | $11,517 | $488,127 | | Net Cash Provided by (Used in) Financing Activities | $51,626 | $(45,959) | | Net Change in Cash | $(49,120) | $(114,646) | [Notes to Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, a $20.0 million cybersecurity insurance receivable, loan sale concentration, and capital compliance - In January 2024, a cybersecurity incident led to **$15.0 million** in insurance reimbursements in 2024 and an additional **$20.0 million** receivable expected in 2025[29](index=29&type=chunk)[30](index=30&type=chunk) - Significant concentration risk exists with three investors accounting for **36%**, **14%**, and **12%** of total loan sales for the six months ended June 30, 2025[40](index=40&type=chunk) - The company operates as a single reportable segment, with performance evaluated by the CODM based on consolidated net income (loss)[135](index=135&type=chunk)[136](index=136&type=chunk) - As of June 30, 2025, the company complied with all regulatory capital and liquidity requirements, with a minimum adjusted net worth of **$337.8 million**[134](index=134&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved Q2 2025 performance to 'Vision 2025', with net loss narrowing to $25.3 million from revenue growth and expense reduction Key Performance Indicators (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Loan Originations | $6.73B | $6.09B | | Gain on Sale Margin | 3.11% | 3.06% | | Pull-through Weighted Gain on Sale Margin | 3.30% | 3.22% | | Total Servicing Portfolio (UPB) | $117.5B | $114.3B | - The decrease in net loss for Q2 2025 was primarily due to a **$27.7 million** decrease in total expenses and a **$17.1 million** increase in total net revenues compared to Q2 2024[156](index=156&type=chunk) - General and administrative expenses decreased by **$33.4 million (45.7%)** in Q2 2025 compared to Q2 2024, mainly due to **$26.6 million** in costs related to the Cybersecurity Incident in the prior year[164](index=164&type=chunk)[165](index=165&type=chunk) - As of June 30, 2025, the company had **$408.6 million** in unrestricted cash and cash equivalents and an additional **$1.6 billion** in available capacity under its warehouse and other lines of credit[187](index=187&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=52&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include interest rate, credit, and prepayment risks, actively managed through hedging instruments and stringent underwriting - The company's principal market exposure is interest rate risk, which affects the value of LHFS, IRLCs, servicing rights, and hedging instruments[227](index=227&type=chunk) - To manage interest rate risk on IRLCs and LHFS, the company enters into hedging instruments, such as forward sale contracts, which are expected to experience changes in fair value opposite to the hedged items[229](index=229&type=chunk) - Credit risk is managed through strict underwriting guidelines, with the company providing representations and warranties on sold loans that could lead to repurchase obligations if breached[230](index=230&type=chunk)[231](index=231&type=chunk) [Item 4. Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal controls - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures are effective at a reasonable assurance level[237](index=237&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[238](index=238&type=chunk) [PART II. OTHER INFORMATION](index=56&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal and regulatory matters, including a cybersecurity class action settlement and ongoing employment and stockholder derivative litigation - The company is a defendant in a consolidated class action lawsuit related to the January 2024 Cybersecurity Incident, with a settlement agreement receiving preliminary court approval on January 13, 2025[124](index=124&type=chunk) - In a securities class action lawsuit related to the company's IPO, the court granted final approval of a settlement on May 24, 2024, though one class member has filed a notice of appeal[126](index=126&type=chunk) [Item 1A. Risk Factors](index=56&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in risk factors were reported from the company's 2024 Form 10-K[241](index=241&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=56&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company issued 4,897,323 shares of Class A common stock through conversions of Class C common stock and Holdco Units, exempt from registration - In Q2 2025, the company issued a total of **4,897,323** shares of Class A common stock upon the conversion of Class C common stock and Holdco Units[243](index=243&type=chunk)[244](index=244&type=chunk)

分组1 - loanDepot reported a quarterly loss of $0.09 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.02, and compared to a loss of $0.05 per share a year ago, indicating a significant earnings surprise of -350.00% [1] - The company posted revenues of $282.54 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 11.46%, while year-ago revenues were $265.39 million [2] - loanDepot shares have declined approximately 7.8% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] 分组2 - The earnings outlook for loanDepot is uncertain, with current consensus EPS estimates at $0.02 on $333.25 million in revenues for the coming quarter and -$0.07 on $1.27 billion in revenues for the current fiscal year [7] - The Zacks Industry Rank for Financial - Mortgage & Related Services is currently in the bottom 9% of over 250 Zacks industries, suggesting that the industry outlook may negatively impact loanDepot's stock performance [8] - The estimate revisions trend for loanDepot was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6]

Financial Data and Key Metrics Changes - The company reported an adjusted net loss of $16 million in Q2 2025, an improvement from an adjusted net loss of $25 million in Q2 2024, primarily due to higher lock volume and lower expenses [11] - Adjusted total revenue for the quarter was $292 million, compared to $278 million in the previous year [11] - Total expenses decreased by $5 million or 2% from the prior quarter, driven by one-time benefits in salary and general and administrative expenses [13] Business Line Data and Key Metrics Changes - Pull through rated rate lock volume was $6.3 billion, a 17% increase from the prior quarter's volume of $5.4 billion, reflecting seasonal increases in home buying activity [11] - Loan origination volume increased by 30% to $6.7 billion from $5.2 billion in the previous quarter [12] - Servicing fee income rose from $104 million in Q2 2024 to $108 million in Q2 2025, reflecting an increase in the unpaid principal balance of the servicing portfolio [12] Market Data and Key Metrics Changes - The company expects third quarter pull through weighted lock volume to be between $5.25 billion and $7.25 billion, and origination volume between $5 billion and $7 billion [14] - The guidance reflects recent market volatility, high mortgage interest rates, and affordability challenges in the housing market [14] Company Strategy and Development Direction - The company aims to return to profitable market share growth and technology-powered efficiency, focusing on digital transformation and operational improvements [9][10] - The addition of new technology leaders is expected to enhance the company's capabilities in loan manufacturing and digital strategy [9][10] - The company plans to leverage its unique assets, including its brand, servicing portfolio, and multichannel origination strategy, to drive growth [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow market share and profitability, particularly in the refinancing market as interest rates potentially decrease [15] - The company remains focused on maintaining a strong balance sheet and managing costs while pursuing growth opportunities [15] Other Important Information - The company acknowledged the retirement of LDI Mortgage President Jeff Walsh, who played a significant role in the company's growth [5] - The company ended the quarter with $409 million in cash, an increase of $37 million since the first quarter [15] Q&A Session Summary Question: Steps to Drive Market Share Growth - Management emphasized the need to achieve scale and utilize technology to increase efficiency during the loan process [17][18] Question: Balancing Growth Investments with Debt Load - Management highlighted the stability of the servicing business and the potential for growth in the refinancing market, indicating a cautious approach to investments while enhancing technology tools [21][22][24]

Financial Performance - Originations reached $67 billion, aligning with guidance[11] - Total revenue was $2825 million, with an adjusted revenue of $2919 million[11] - Total expenses decreased by approximately 2% compared to the first quarter of 2025[11] - The company experienced an adjusted net loss of $16 million and an adjusted EBITDA of $26 million[11] - Unrestricted cash stood at $409 million[15] Operational Highlights - Purchase mix increased to 63% of originations, up from 59% in the first quarter of 2025[12] - The servicing portfolio's unpaid principal balance (UPB) increased to $1175 billion[12] - Retention rate for loans sold was 62%[12] - The company's unit market share was 159 basis points, compared to 187 basis points in the first quarter of 2025[13] Outlook - Q3 2025 pull-through weighted rate lock volume is projected to be between $525 billion and $725 billion[40] - Q3 2025 origination volume is expected to be between $50 billion and $70 billion[40]

Financial Performance - LoanDepot achieved a FY20 volume of $101 billion[26] - The company reported a FY20 net income of $20 billion[27] - Adjusted EBITDA for FY20 reached $21 billion[30] - The UPB (Unpaid Principal Balance) of the servicing portfolio is $103 billion[29] Origination Strategy - LoanDepot's origination strategy is differentiated and built for all markets[17] - The retail strategy generated $80 billion in FY20 volume[18] - The partner strategy contributed $21 billion in FY20 volume[18] - The retail/partner volume split is 80%/20%[28] Servicing Portfolio - 24% of the servicing portfolio is in active forbearance[31] Company Overview - LoanDepot is described as a founder- & CEO-led 11 Year Old Company[20]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited consolidated financial statements for Q1 2025, reporting a net loss of $40.7 million and total assets of $6.42 billion [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheet shows total assets increased to **$6.42 billion**, while total equity decreased to **$469.3 million** Balance Sheet Summary (as of March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 ($ thousands) | December 31, 2024 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | 371,480 | 421,576 | (11.9)% | | Loans held for sale, at fair value | 2,765,417 | 2,603,735 | 6.2% | | **Total assets** | **6,416,714** | **6,344,028** | **1.1%** | | Warehouse and other lines of credit | 2,490,447 | 2,377,127 | 4.8% | | **Total liabilities** | **5,947,416** | **5,837,417** | **1.9%** | | **Total equity** | **469,298** | **506,611** | **(7.4)%** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Reported a net loss of **$40.7 million** for Q1 2025, a significant improvement from the prior year, with total net revenues increasing by **22.8%** Statement of Operations Summary (Q1 2025 vs. Q1 2024) | Metric | Three Months Ended March 31, 2025 ($ thousands) | Three Months Ended March 31, 2024 ($ thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total net revenues | 273,620 | 222,785 | 22.8% | | Total expenses | 319,723 | 307,950 | 3.8% | | Loss before income taxes | (46,103) | (85,165) | 45.9% | | **Net loss** | **(40,696)** | **(71,505)** | **43.1%** | | Net loss attributable to loanDepot, Inc. | (21,896) | (34,255) | 36.1% | | Diluted EPS | $(0.11) | $(0.19) | 42.1% | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Experienced a net cash outflow of **$81.5 million** in Q1 2025, primarily due to **$179.9 million** used in operating activities Cash Flow Summary (Q1 2025 vs. Q1 2024) | Cash Flow Activity | Three Months Ended March 31, 2025 ($ thousands) | Three Months Ended March 31, 2024 ($ thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (179,890) | (278,523) | | Net cash provided by investing activities | 2,795 | 52,024 | | Net cash provided by financing activities | 95,601 | 158,652 | | **Net change in cash** | **(81,494)** | **(67,847)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed explanations of accounting policies and financial statement components, including disclosures on a cybersecurity incident and debt obligations - In January 2024, a cybersecurity incident led to **$0.8 million** in Q1 2025 expenses, with **$15.0 million** insurance reimbursement in 2024 and **$20.0 million** expected in 2025[25](index=25&type=chunk)[26](index=26&type=chunk) - The total servicing portfolio's unpaid principal balance reached **$116.6 billion** as of March 31, 2025, a slight increase from year-end 2024[57](index=57&type=chunk) - The company utilizes nine revolving lines of credit totaling **$3.7 billion** for warehouse and securitization facilities, with **$2.49 billion** outstanding as of March 31, 2025[82](index=82&type=chunk) - The company is a defendant in 23 consolidated class action cases related to the cybersecurity incident, with a preliminary settlement approved in January 2025[118](index=118&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes improved Q1 2025 results to higher gain on sale margins and loan volumes, highlighting 'Project North Star' and sufficient liquidity - 'Project North Star' is a strategic plan focused on becoming a lifetime lending partner, growing mortgage reach, expanding the servicing portfolio, and enhancing operating leverage[142](index=142&type=chunk) Key Performance Indicators (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total loan originations | $5,173.9M | $4,558.4M | | - Purchase | $3,063.9M | $3,296.3M | | - Refinance | $2,110.0M | $1,262.1M | | Gain on sale margin | 3.72% | 2.84% | | Total servicing portfolio (UPB) | $116.6B | $142.3B | - The Q1 2025 net loss decrease was driven by a **$50.8 million** increase in total net revenues from higher loan origination and improved gain on sale margins, partially offset by **$11.8 million** higher expenses[151](index=151&type=chunk) - As of March 31, 2025, the company held **$371.5 million** in unrestricted cash and **$1.2 billion** in available credit, deemed sufficient for the next twelve months[169](index=169&type=chunk)[172](index=172&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses primary market risks, including interest rate risk affecting loans held for sale, IRLCs, and MSRs, along with credit and prepayment risks - The main market exposure is interest rate risk, impacting the value of loans held for sale, IRLCs, servicing rights, and hedging instruments[209](index=209&type=chunk) - Credit risk, managed through underwriting, involves potential repurchases or indemnification for sold loans due to representations and warranties[212](index=212&type=chunk)[213](index=213&type=chunk) - Prepayment risk impacts the fair value of servicing rights, with increased prepayment expectations generally decreasing asset value[216](index=216&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2025[217](index=217&type=chunk) - No material changes to internal control over financial reporting were identified during the quarter[218](index=218&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) Refers to Note 15 of the financial statements for detailed discussion of the company's material legal proceedings - Details on material legal proceedings are provided in Note 15 - Commitments and Contingencies of the financial statements[220](index=220&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) Reports no material changes to risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024 - No material changes in risk factors were reported from those discussed in the company's 2024 Form 10-K[220](index=220&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Reports the issuance of over **5.2 million** shares of Class A common stock in Q1 2025 through conversions exempt from registration under Section 3(a)(9) - The company issued Class A common stock upon conversion of Class C common stock on three occasions in Q1 2025, totaling **5,250,484 shares**[222](index=222&type=chunk)[223](index=223&type=chunk) [Item 5. Other Information](index=52&type=section&id=Item%205.%20Other%20Information) Reports no director or officer adopted or terminated any Rule 10b5-1 trading arrangements during Q1 2025 - No director or officer adopted or terminated any Rule 10b5-1 trading arrangements during Q1 2025[226](index=226&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) Lists all documents filed as part of the Form 10-Q, including amendments to credit agreements, CEO/CFO certifications, and XBRL data files - The report includes various exhibits, such as amendments to credit agreements, executive transition agreements, and Sarbanes-Oxley Act certifications[227](index=227&type=chunk)

Core Insights - loanDepot (LDI) reported revenue of $273.62 million for Q1 2025, a year-over-year increase of 22.8%, but fell short of the Zacks Consensus Estimate of $275.8 million, resulting in a surprise of -0.79% [1] - The company posted an EPS of -$0.13, an improvement from -$0.21 a year ago, but this also represented an EPS surprise of -85.71% against the consensus estimate of -$0.07 [1] Financial Performance Metrics - Net interest income was reported at $3.31 million, significantly below the average estimate of $1.50 million, reflecting a year-over-year change of -546.4% [4] - Other income amounted to $14.90 million, slightly below the estimated $18.15 million, showing a -1.1% change compared to the previous year [4] - Servicing fee income was reported at $104.28 million, lower than the average estimate of $127.10 million, representing a year-over-year decline of -15.9% [4] - The change in fair value of servicing rights, net, was -$41.10 million, worse than the estimated -$39 million, indicating a -9.2% change from the year-ago quarter [4] Stock Performance - Shares of loanDepot have declined by -18.2% over the past month, contrasting with the Zacks S&P 500 composite's increase of +11.5% [3] - The stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - The company reported an adjusted net loss of $25 million in Q1 2025, an improvement from an adjusted net loss of $38 million in Q1 2024, primarily due to higher lock volume and gain on sale margin [18] - Pull through weighted rate lock volume was $5.4 billion, a 15% increase from $4.7 billion in the prior year [18] - Adjusted total revenue increased to $278 million from $231 million in Q1 2024 [18] - The pull through weighted gain on sale margin was 355 basis points, exceeding guidance and up from 274 basis points in the prior year [19] Business Line Data and Key Metrics Changes - Loan origination volume for the quarter was $5.2 billion, a 14% increase from $4.6 billion in the prior year [19] - Servicing fee income decreased from $124 million in Q1 2024 to $104 million in Q1 2025, reflecting the impact of 2024 bulk sales [20] Market Data and Key Metrics Changes - The company experienced a unit share market gain, increasing from 145 basis points to 187 basis points over the past year, driven by increased government lending [19] Company Strategy and Development Direction - The company aims to capitalize on its multichannel sales model, proprietary technology, and strong brand to expand originations and drive growth [10][11] - The focus will be on improving process flow and leveraging brand recognition to enhance customer interactions and satisfaction [15][16] - The company is committed to maintaining a strong balance sheet while investing in growth-generating initiatives [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future success and the potential for profitable market share growth as interest rates decrease [6][23] - The company anticipates a seasonal increase in purchase activity in Q2, potentially offset by market volatility and higher rates [22] Other Important Information - The company ended the quarter with $371 million in cash, indicating a strong liquidity position [23] - The transition of leadership from Frank Martell to Anthony Hsieh was highlighted, with a focus on leveraging the company's unique assets [5][30] Q&A Session Summary Question: Outlook for home equity business - The second mortgage product serves as a hedge against the interest rate environment, with strong demand due to record home equity levels and low loan-to-value ratios [26] Question: Market attractiveness for home equity - As interest rates remain elevated, the company is scaling the home equity business through increased marketing and cross-sell opportunities [26][27]