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]

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]

Financial Performance - The company's revenue increased by 6% QoQ and 23% YoY, reaching $274 million in Q1 2025[5] - PTNI (Pre-Tax Net Income) shows significant improvement, up 45% QoQ and 46% YoY in Q1 2025, although the specific value is -$46 million[5] Origination and Market Share - Origination volume market share is reported at 1.3%[5] - Unit share increased by 29% YoY, while volume share increased by 1.9% YoY[5] Revenue and UPB - Servicing revenue experienced fluctuations, with $117 million in Q1 2025[5] - UPB (Unpaid Principal Balance) saw a slight increase of 1% QoQ but decreased by 18% YoY[5] Product Mix - The product mix shows a shift in Conv/Gov Delta: -5/+1% QoQ and -15/+5% YoY[5] - Conventional loans represent a significant portion of the product mix[5] Expenses - Expenses are categorized into "All Other Exp" and "Volume Related Exp"[5]

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]