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 [17] - Adjusted total revenue increased to $278 million in Q1 2025 from $231 million in Q1 2024, reflecting a positive momentum in the company's financial performance [18] - The pull through weighted rate lock volume was $5.4 billion, a 15% increase from $4.7 billion in the prior year [18] 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 [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, benefiting from home equity linked products and a higher proportion of government loans [18] Market Data and Key Metrics Changes - The company experienced an increase in unit share market gain from 145 basis points to 187 basis points over the past year, attributed to increased government lending [18] - Servicing fee income decreased from $124 million in Q1 2024 to $104 million in Q1 2025, primarily due to the impact of 2024 bulk sales [18] 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 [9][10] - The focus will be on improving process flow and operational leverage to scale the business efficiently as the market improves [14] - The company is committed to leveraging its unique assets to maximize operational leverage and accelerate growth once the market normalizes [28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future success and highlighted the importance of customer satisfaction and brand recognition [5][14] - The company anticipates a seasonal increase in purchase activity in Q2 2025, potentially offset by market volatility and higher rates [20] - Management believes that a sustained decrease in rates will materially improve the bottom line and ongoing investments will provide a foundation for momentum in 2025 and beyond [22] Other Important Information - The company ended the quarter with $371 million in cash, indicating a strong balance sheet [21] - The transition of leadership back to the founder, Anthony Shea, is expected to bring renewed focus and energy to the company's operations [4][8] Q&A Session Summary Question: Outlook for home equity business - Management indicated that the second mortgage product serves as a hedge against the interest rate environment, with strong demand for home equity products due to low loan-to-value ratios and consumers protecting their low interest rates [24][25]

Revenue +6% QoQ +23% $274M YoY Q1 2025 -7% QoQ +11% YoY Origination vol. market share (1) 1.3% Market share PTNI -$46M Q1 2025 +45% QoQ +46% YoY PTNI +7% QoQ +29% 1.9% YoY Unit share Volume share Conv / Gov Delta: -5 / +1% QoQ -15 / +5% YoY Product Mix 1Q '25 FINANCIAL HIGHLIGHTS UPB & servicing revenue +1% QoQ -18% YoY UPB Expenses by Category $223 $265 $315 $257 $274 $0 $100 $200 $300 Q1 '24 Q2 '24 Q3 '24 Q4 '24 Q1 '25 Revenue ($M) $142 $114 $115 $116 $117 $70 $100 $130 $100 $140 Q1 '24 Q2 '24 Q3 '24 Q4 ' ...

loanDepot announces first quarter 2025 financial results Q1 was a quarter of positive momentum for the company. Higher volume, margins and ongoing cost discipline drive improved Q1 results. Company Founder and Executive Chairman Anthony Hsieh also returned to the company's day-to-day operations in Q1; Hsieh will focus on expanding originations and driving innovation through tech enablement. Current CEO Frank Martell set to transition to a board advisory role in June; Hsieh will assume interim CEO role at th ...

Company Overview - LoanDepot (LDI) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended March 2025, with a consensus outlook indicating a quarterly loss of $0.07 per share, representing a 66.7% improvement from the previous year [1][3] - Revenues are projected to be $275.8 million, reflecting a 23.8% increase compared to the same quarter last year [3] Earnings Expectations - The upcoming earnings report is scheduled for May 6, and the stock may experience upward movement if the reported numbers exceed expectations, while a miss could lead to a decline [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model suggests that the Most Accurate Estimate for LoanDepot aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [10] - The current Zacks Rank for LoanDepot is 4, which complicates the prediction of an earnings beat [11] Historical Performance - In the last reported quarter, LoanDepot was expected to post earnings of $0.02 per share but instead reported a loss of $0.23, resulting in a surprise of -1,250% [12] - Over the past four quarters, LoanDepot has beaten consensus EPS estimates two times [13] Industry Comparison - Walker & Dunlop (WD), a competitor in the Zacks Financial - Mortgage & Related Services industry, is expected to report earnings per share of $0.98 for the same quarter, indicating a year-over-year decline of 17.7% [17] - Walker & Dunlop's revenues are anticipated to be $249.27 million, up 9.3% from the previous year, and it has an Earnings ESP of 74.49%, suggesting a higher likelihood of beating the consensus EPS estimate [18]

Company Overview - The company is the sixth largest retail-focused non-bank mortgage originator and the eighth largest overall retail originator as of March 13, 2025[18]. - The company aims to increase U.S. annual one-to-four family residential mortgage origination volume from $1.8 trillion in 2024 to $2.1 trillion in 2025, representing a 16% increase[21]. - The company's market share in loan originations increased from 1.0% in 2014 to 1.4% for the year ended December 31, 2024[39]. - As of December 31, 2024, the company employed approximately 4,900 employees, reflecting its commitment to a skilled workforce[54]. - The company holds 34 registered trademarks and 27 trademark applications in the U.S., along with 3 issued patents and 14 patent applications, indicating a strong focus on intellectual property[60]. Financial Performance - The company experienced a significant decline in loan origination activity in fiscal 2023, resulting in a net loss for both fiscal 2023 and 2024, with expectations of continued muted activity through at least 2025[157]. - Elevated interest rates have adversely affected demand for loan and real estate-related products, leading to lower margins and decreased revenues, with net losses reported for fiscal years 2022, 2023, and 2024[158][159]. - The company's profitability is directly affected by interest rate changes, with market value of closed LHFS and IRLCs declining as interest rates rise[85]. - The company has derived substantially all revenue from traditional mortgage loans, and efforts to expand into new consumer products may not succeed, potentially reducing expected revenue growth[72]. Regulatory Environment - The company is licensed as a loan originator in all 50 states and the District of Columbia, ensuring compliance with state regulations[44]. - The company is subject to a comprehensive regulatory framework, including the Dodd-Frank Act and various state-specific laws, which could materially affect its operations[46]. - The company engages proactively with regulators to stay ahead of regulatory trends, viewing its compliance infrastructure as a competitive advantage[41]. - The company is subject to regulatory investigations that could result in fines and penalties, adversely impacting reputation and financial results[188]. - The CFPB has broad enforcement powers, including the ability to impose civil money penalties for violations of consumer protection laws, which could lead to significant financial liabilities for the company[192]. Risk Management - The company's risk management policies and procedures may not be effective, exposing it to various operational risks[68]. - The company relies on internal models to manage risk, which may produce unreliable results if assumptions are inaccurate or if there are unprecedented events[90]. - The company may incur significant penalties under FIRREA and the False Claims Act for alleged violations, with settlements potentially totaling hundreds of millions of dollars[195]. - The company faces risks from VA guaranteed loans, where the guarantee may not cover losses or advances, potentially leading to significant financial impacts if no-bid situations increase[108]. Operational Efficiency - The company completed the transition of its servicing portfolio to an in-house platform in February 2023, enhancing operational efficiency[30]. - The company has developed a proprietary technology platform, mello®, aimed at enhancing compliance and operational efficiency in the financial services industry[40]. - The company plans to develop an AI-powered relationship management platform to enhance customer engagement in home buying and selling[25]. - The transition to in-house servicing from Cenlar FSB may lead to increased operational and compliance costs, with direct responsibility for regulatory compliance[105]. Market Conditions - The Federal Reserve raised the Federal Funds rate to a range of 5.25% - 5.50% in July 2023, impacting mortgage loan origination volumes due to decreased affordability and demand for refinancing[19]. - The company’s operations may be impacted by changes in regulatory requirements, which could increase compliance costs or restrict business practices[46]. - The geographic concentration of mortgage loan originations in states like California, Texas, and Florida may adversely affect the lending business due to economic conditions and property value declines[94]. - Adverse developments in the secondary mortgage loan market, including the MBS market, could materially impact liquidity and overall business performance[171]. Employee Development and Culture - The company provides extensive training and development programs for its employees, including a leadership academy for high-potential leaders[57]. - The company emphasizes a culture of diversity and inclusion, conducting annual pay equity monitoring and employee surveys to enhance workplace engagement[55]. - Attracting and retaining skilled personnel is critical, as competition for experienced employees is intensifying, which may increase labor costs[134]. Competition - The company faces intense competition from large commercial banks and independent loan originators, which may have greater resources and access to capital, impacting its competitive position[163]. - The company is subject to significant competition for attractive acquisition opportunities, which may impede its growth strategy if it cannot identify or consummate acquisitions effectively[81]. Technology and Cybersecurity - Technological advancements, including AI, are essential for competitiveness, but reliance on these technologies introduces operational vulnerabilities and compliance risks[145]. - Cybersecurity threats and technology failures pose significant risks to business operations and could increase operational costs[147]. - Cybersecurity risks have significantly increased, with a notable incident in January 2024 that may make the company more vulnerable to future attacks, potentially disrupting operations and damaging reputation[149][151].

U.S. stock futures were higher this morning, with the Dow futures gaining around 200 points on Wednesday.Shares of Hello Group Inc. MOMO fell sharply during pre-market trading after reporting weak quarterly results.Hello Group posted fourth-quarter adjusted EPADS of 18 cents missing estimates of 21 cents per shares. The company's sales came in at $361.20 million missing expectations of $365.05 million.Hello Group shares dipped 12.4% to $6.50 in the pre-market trading session.Here are some other stocks movin ...

Financial Data and Key Metrics Changes - The company reported an adjusted net loss of $47 million in Q4 2024, compared to an adjusted net loss of $27 million in Q4 2023, primarily due to higher volume-related expenses, offset somewhat by higher adjusted revenues [15] - Adjusted total revenue for Q4 2024 was $267 million, an increase from $251 million in Q4 2023 [17] - Total expenses for Q4 2024 increased by $39 million or 13% from the prior year, driven by higher volume-related commission, direct origination, and marketing expenses [20] Business Line Data and Key Metrics Changes - Pull-through weighted rate lock volume was $5.6 billion in Q4 2024, a 27% increase from $4.4 billion in Q4 2023 [16] - Loan origination volume for the quarter was $7.2 billion, a 34% increase from $5.4 billion in the prior year [18] - Servicing fee income decreased from $132 million in Q4 2023 to $108 million in Q4 2024, reflecting a decrease in the size of the portfolio [19] Market Data and Key Metrics Changes - The mortgage market continued to remain depressed in 2023 and 2024, with volumes approaching generational lows [9] - The company expects pull-through weighted lock volume for Q1 2025 to be between $4.8 billion and $5.8 billion, reflecting a seasonal decrease in purchase activity [21] Company Strategy and Development Direction - The completion of the Vision 2025 strategic program marked significant progress for the company, focusing on resetting the cost structure and making investments in people, processes, products, and technology [10] - The company announced a new three-year plan, Project North Star, aimed at improving operational efficiency and customer experience [11][47] - The company is positioned to accelerate revenue growth and aims to become the lender of choice for American homeowners as the market recovers [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the housing and mortgage markets but emphasized the substantial opportunities for growth [13] - The company is maintaining heightened levels of liquidity to navigate the challenging mortgage market and aims to keep at least 5% of assets in liquidity [28] Other Important Information - The company ended the quarter with $422 million in cash and has made important investments in productivity initiatives [23] - The company plans to continue investing in its servicing asset, viewing it as a strategic asset [30] Q&A Session Summary Question: Current cash liquidity situation and servicing balances outlook for 2025 - Management indicated that they are maintaining heightened levels of liquidity and aim to keep around 5% of assets in liquidity throughout 2025 [27][28] Question: Drivers of sequential increase in G&A and servicing expenses - The increase in G&A expenses was attributed to a return to normalization after a prior insurance recovery, while servicing expenses were impacted by seasonal factors and a slight increase in delinquency rates [34][36] Question: Volume guidance for Q1 and comparison to third-party estimates - Management expects a sequential decline in locks in line with normal seasonality but is hopeful for share gains compared to third-party estimates showing a more significant decline [38] Question: Hiring expense plans in 2025 and operating leverage expectations - Management plans to continue strategic investments in revenue-generating expenses and expects operating leverage to increase as refinance markets improve [44] Question: Updates on Project North Star initiatives - Management confirmed ongoing investments in technology platforms to improve operational efficiency and announced two new joint ventures expected to ramp up in 2025 [47][49]

4Q 2024 INVESTOR PRESENTATION March 11, 2025 DISCLAIMER Forward-Looking Statements and Other Information This presentation and the 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," "anticipate," "expect," "intend," "plan," "predict," "estimate," "project," "will be," "will continue," "will likely result," or o ...

Revenue Performance - Revenue increased 9% to $1.06 billion for the full year 2024, with adjusted revenue rising 10% to $1.10 billion compared to 2023[5] - Fourth quarter revenue reached $257 million, a 13% increase from the prior year, while adjusted revenue was $267 million, up 6%[5] - Total net revenue for the fourth quarter of 2024 was $257,464 thousand, a decrease of 18.14% from $314,598 thousand in the third quarter of 2024[29] - Adjusted total revenue for the fourth quarter of 2024 was $266,594 thousand, up from $251,395 thousand in the same quarter of 2023, reflecting a year-over-year increase of 6.03%[29] - The company reported a total loan origination volume of $24,496,500 thousand for the year ended December 31, 2024, compared to $22,671,731 thousand for the previous year, marking an increase of 8.06%[22] Net Loss and Adjusted Loss - Net loss for the fourth quarter of 2024 was $67.5 million, compared to a net loss of $59.8 million in the fourth quarter of 2023[13] - Adjusted net loss for the fourth quarter of 2024 was $47 million, compared to an adjusted net loss of $26.7 million in the fourth quarter of 2023[13] - The net loss attributable to loanDepot, Inc. for the three months ended December 31, 2024, was $33,234,000, compared to a net income of $1,369,000 in the previous quarter and a net loss of $27,193,000 in the same quarter last year[19] - The adjusted net loss for the year ended December 31, 2024, was $94,823 thousand, an improvement from the adjusted net loss of $151,641 thousand in 2023[30] Loan Origination and Volume - Loan origination volume for the fourth quarter of 2024 was $7.2 billion, a 34% increase from the fourth quarter of 2023[13] - Loan origination volume for the fourth quarter of 2024 reached $7,188,186 thousand, an increase of 8.00% compared to $6,659,329 thousand in the previous quarter[22] - The company retained servicing on loans sold amounting to $4,421,935 thousand in the fourth quarter of 2024, compared to $3,818,375 thousand in the previous quarter, an increase of 15.80%[22] Financial Position and Assets - Cash and cash equivalents decreased by 12.7% from September 30, 2024, to $421,576,000, and by 36.2% compared to $660,707,000 as of December 31, 2023[18] - The total assets as of December 31, 2024, were $6,344,028,000, a decrease of 1.1% from the previous quarter and an increase of 3.1% from the same period last year[18] - The servicing rights at fair value increased to $1,633,661,000 as of December 31, 2024, representing a 5.9% increase from the previous quarter but an 18.3% decrease from the same period last year[18] - Total liabilities as of December 31, 2024, were $5,837,417,000, a slight increase of 0.2% from the previous quarter and a 7.2% increase from the same period last year[18] - The company’s available borrowing capacity was $1.2 billion as of December 31, 2024, up from $3.1 billion at the same time last year[18] Delinquency and Restructuring - The 60+ days delinquent amount increased to $1,826,105,000, a 10.3% increase from the previous quarter and a 31.1% increase compared to December 31, 2023[17] - The liability for loans eligible for repurchase was $995,398 thousand as of December 31, 2024, up from $860,300 thousand on September 30, 2024, an increase of 15.66%[21] - The restructuring charges for the year ended December 31, 2024, were $7,199 thousand, down from $11,811 thousand in 2023[36] Strategic Initiatives - The company successfully refinanced 2025 corporate debt, extending maturity and reducing outstanding corporate debt by $137 million[5] - The company expanded its network of joint venture partnerships with new agreements with Smith Douglas Homes and Onx Homes[5] - The company is focused on Project North Star, aiming for sustainable profitability and revenue growth in the future[41] - loanDepot is committed to enhancing its digital-first home lending products to better serve diverse communities of first-time homebuyers[43] Tax and Shareholder Information - The effective income tax rate for the year ended December 31, 2024, was 25.17%, compared to 26.22% for the previous year[31] - The diluted weighted average shares outstanding increased to 327,009,768 for the year ended December 31, 2024, from 322,695,123 in 2023[34] - Interest expense for non-funding debt was $188,550 thousand for the year ended December 31, 2024, compared to $174,103 thousand in 2023[36] - Adjusted EBITDA for the year ended December 31, 2024, was $83,749 thousand, a significant increase from $6,441 thousand in 2023[36] - The company experienced a valuation change in servicing rights, net of hedging gains and losses, amounting to $44,675 thousand for the year ended December 31, 2024[36]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Company Spotlight - loanDepot (LDI) - loanDepot (LDI) has shown significant price movement, with a 39.1% increase over the past four weeks, indicating growing investor interest [4] - The stock has also gained 2.9% over the past 12 weeks, with a high beta of 3.46, suggesting it moves 246% more than the market [5] - LDI has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings and Valuation - LDI has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is currently trading at a Price-to-Sales ratio of 0.89, suggesting it is undervalued at 89 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides LDI, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]