Financial Performance - Total net revenues for the three months ended September 30, 2024, were $314.6 million, an increase of 18.4% compared to $265.7 million for the same period in 2023[9]. - Gain on origination and sale of loans, net, reached $198.0 million for the three months ended September 30, 2024, up 32.9% from $148.8 million in the prior year[9]. - Net income attributable to loanDepot, Inc. was $1.4 million for the three months ended September 30, 2024, compared to a net loss of $16.6 million for the same period in 2023[9]. - Total expenses for the three months ended September 30, 2024, were $311.0 million, slightly up from $305.1 million in the same period last year[9]. - Basic earnings per share for the three months ended September 30, 2024, was $0.01, compared to a loss of $0.09 per share in the prior year[9]. - The company reported a net loss of $134.7 million for the nine months ended September 30, 2024, compared to a net loss of $175.7 million for the same period in 2023[9]. - The total net revenues for the nine months ended September 30, 2024, were $802.8 million, an increase of 7.7% from $745.4 million in the same period of 2023[9]. Cash Flow and Liquidity - Cash flows from operating activities resulted in a net cash used of $905.982 million for the nine months ended September 30, 2024, compared to a net cash provided of $31.203 million in the prior year[20]. - The cash and cash equivalents at the end of the period were $578.641 million, down from $831.961 million at the end of the same period in 2023[20]. - As of September 30, 2024, unrestricted cash and cash equivalents were $483.0 million, with additional available capacity under credit lines of $534.3 million[187]. - The company maintained borrowing capacity totaling $3.1 billion under warehouse and securitization facilities, with $2.6 billion of borrowings outstanding[191]. Loan Originations and Servicing - The total originations of loans for the nine months ended September 30, 2024, were $17.026 billion, slightly down from $17.097 billion in the same period of 2023[20]. - The company originated and purchased loans totaling $6,545,027 during the three months ended September 30, 2024, compared to $6,005,613 in the same period of 2023[53]. - For the nine months ended September 30, 2024, loans originated for properties located in California accounted for approximately 18% of total loan originations[35]. - The servicing portfolio's unpaid principal balance decreased to $114,915,206 thousand in September 2024 from $143,959,705 thousand in September 2023[149]. Cybersecurity Incident - The company recognized $22.8 million in expenses related to a cybersecurity incident during the nine months ended September 30, 2024, net of insurance recoveries[26]. - The company has initiated an investigation and taken steps to remediate a cybersecurity incident affecting sensitive personal information of approximately 16.9 million individuals[25]. - The company is involved in ongoing legal proceedings related to a cybersecurity incident, with potential material impacts on its financial condition and operations[128]. Debt and Liabilities - Total liabilities as of September 30, 2024, were $3,737,386 million, with secured debt obligations of $1,151,280 million and warehouse lines of credit totaling $2,565,713 million[73]. - The company’s total liabilities in the securitization and SPE VIEs were $827,598 million as of September 30, 2024, down from $902,689 million as of December 31, 2023[81]. - The company’s interest rate swap futures liabilities were recorded at $5,468 million as of September 30, 2024[73]. - The company’s forward sale contracts liabilities were $100,709 million as of December 31, 2023, with a net amount of $23,540 million after offsets[74]. Equity and Shareholder Information - Basic earnings per share for Class A common stock was $0.01 for the three months ended September 30, 2024, while diluted earnings per share was also $0.01[112][114]. - The net loss allocated to common stockholders for the nine months ended September 30, 2024, was $(65,097) thousand[114]. - The noncontrolling interest related to LD Holdings was $280.7 million as of September 30, 2024, down from $351.3 million as of December 31, 2023[110]. - The company had 2,305,379 anti-dilutive shares excluded from the computation of diluted earnings per share for the three months ended September 30, 2024[118]. Operational Efficiency - Personnel expenses rose to $161,330 thousand, a 14.1% increase from $141,432 thousand in the same quarter last year[152]. - General and administrative expenses decreased by $23.5 million, or 50.6%, mainly due to a $19.6 million reduction in professional and consulting services related to a cybersecurity incident[163]. - Direct origination expenses increased by $7.4 million, or 46.8%, due to higher loan originations and industry-wide increases in credit reporting fees[162]. Market Conditions and Future Outlook - The Company anticipates continued market challenges but believes that the implementation of Project North Star will allow it to capture higher market volumes[144]. - The Company’s mortgage loan refinancing volumes are influenced by changes in interest rates, with rising rates impacting affordability and qualification for homebuyers[143].

Financial Data and Key Metrics Changes - The company reported adjusted net income of $7 million in Q3 2024, compared to an adjusted net loss of $29 million in Q3 2023, primarily due to higher adjusted revenues from increased volume and gain on sale margins [26] - Pull-through weighted rate lock volume was $6.7 billion, a 19% increase from $5.8 billion in the prior year [27] - Adjusted total revenue increased to $320 million from $261 million in Q3 2023 [27] Business Line Data and Key Metrics Changes - Loan origination volume for the quarter was $6.7 billion, a 9% increase from $6.1 billion in the prior year [29] - Servicing fee income rose from $121 million in Q3 2023 to $124 million in Q3 2024, attributed to higher earnings credits on custodial balances [29] Market Data and Key Metrics Changes - The Mortgage Bankers Association forecasts 2025 mortgage market volumes at $2.3 trillion, up from $1.8 trillion for 2024, indicating a potential recovery in housing transactions [22] Company Strategy and Development Direction - The company successfully completed its Vision 2025 strategic program, which focused on transforming origination business and reducing costs, resulting in a return to profitability [25][14] - The new strategic plan, Project North Star, aims for durable revenue growth and improved customer experiences through AI-powered platforms and expanded geographic reach [15][16] Management Comments on Operating Environment and Future Outlook - Management noted that the housing market has faced challenges, but there is optimism for recovery in 2025, driven by pent-up demand and a potential increase in home equity linked mortgage products [21][23] - The company is positioned to capitalize on improving market conditions, with expectations of sustainable profitability in various operating environments [36] Other Important Information - The company reduced annualized non-volume expenses by over $730 million since Q2 2022, while maintaining top quartile loan quality production [13] - The company ended the quarter with $483 million in cash, indicating a strong liquidity position [35] Q&A Session Summary Question: Expectations for non-volume-related expenses going forward - Management indicated that while volume-related expenses will fluctuate, they expect non-volume related expenses to decrease due to ongoing productivity initiatives, despite inflationary pressures from vendor costs [38][40] Question: Geographic expansion and partnerships under Project North Star - The company is focusing on expanding its retail team and joint ventures with builders, particularly in the South and Southeast regions [42] Question: Sustainable profitability in 2025 - Management expressed confidence in achieving sustainable profitability based on current market forecasts and operational efficiencies [44][46] Question: Growth of servicing portfolio - The growth will come from organic additions and opportunistic acquisitions of MSRs, with financing strategies in place to support this growth [48][49] Question: Loan originator recruitment environment - The company is seeing positive traction in recruiting loan originators, despite a competitive market [50] Question: Details on the Smith Douglas partnership - The joint venture with Smith Douglas is expected to be a positive and predictable business model, distinct from in-market retail origination [52]

Financial Performance - Originations reached $67 billion in funded volume, aligning with the high-end of the third quarter 2024 guidance[8] - Total revenue amounted to $3146 million on $67 billion of pull-through weighted lock volume, with an adjusted revenue of $3295 million[8] - Net income stood at $27 million, and adjusted net income reached $71 million, primarily driven by higher adjusted revenues from increased volume and gain on sale margins[8] - Unrestricted cash reserves totaled $4830 million[8] - Servicing UPB increased to $1149 billion from 2Q24, as portfolio units rebuild from retaining servicing on new originations[8] Operational Highlights - Project North Star was announced, focusing on first-time homebuyers and the entire homeownership lifecycle[8] - A joint venture, Ridgeland Mortgage, was announced with Smith Douglas Homes[8] - Purchase mix accounted for 66% of total originations, a decrease from 72% in the second quarter of 2024 due to strength in refi during the quarter[8] - The organic refinance consumer direct recapture rate increased to 71% for the quarter, compared to 69% in the third quarter of 2023[8] Q4 2024 Outlook - Pull-through weighted rate lock volume is projected to be between $55 billion and $75 billion[43] - Origination volume is expected to range from $60 billion to $80 billion[43] - Pull-through weighted GOS margin is anticipated to be between 285 and 305 basis points[43]

Core Insights - loanDepot (LDI) reported revenue of $314.6 million for the quarter ended September 2024, marking an 18.4% increase year-over-year and a surprise of +9.87% over the Zacks Consensus Estimate of $286.35 million [1] - The company's EPS was $0.03, a significant improvement from -$0.15 in the same quarter last year, resulting in an EPS surprise of +200.00% compared to the consensus estimate of -$0.03 [1] Revenue Metrics - Net interest income was reported at -$0.82 million, significantly below the average estimate of $2.25 million, representing a year-over-year change of -131.2% [3] - Other income reached $26.14 million, slightly above the estimated $25.70 million, reflecting a +95.6% change compared to the previous year [3] - Servicing fee income was $124.13 million, exceeding the average estimate of $109.50 million, with a year-over-year increase of +4.5% [3] - The change in fair value of servicing rights, net, was reported at -$56.56 million, worse than the average estimate of -$39.15 million, indicating a +58.5% change year-over-year [3] Stock Performance - Over the past month, loanDepot's shares have declined by -8.4%, contrasting with the Zacks S&P 500 composite's slight decrease of -0.5% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Group 1: Earnings Performance - LoanDepot reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of a loss of $0.03 per share, compared to a loss of $0.15 per share a year ago, representing an earnings surprise of 200% [1] - The company posted revenues of $314.6 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 9.87%, compared to year-ago revenues of $265.66 million [2] - Over the last four quarters, LoanDepot has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Group 2: Stock Performance and Outlook - LoanDepot shares have declined approximately 40.9% since the beginning of the year, while the S&P 500 has gained 19.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.03 on $272 million in revenues, and -$0.25 on $1.05 billion in revenues for the current fiscal year [7] Group 3: Industry Context - The Financial - Mortgage & Related Services industry, to which LoanDepot belongs, is currently in the top 6% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact LoanDepot's stock performance [5] - The Zacks Rank for LoanDepot is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Revenue for Q3 2024 was $315 million, an 18% increase year-over-year, with adjusted revenue at $329 million, up 26% from the prior year[1]. - Net income for Q3 2024 was $3 million, compared to a net loss of $34 million in Q3 2023, reflecting improved revenue and cost productivity[1][9]. - Adjusted EBITDA for Q3 2024 reached $64 million, significantly up from $15 million in the same quarter last year[1]. - Total net revenues for the three months ended September 30, 2024, were $314,598 thousand, a 18.6% increase from $265,390 thousand in June 2024[18]. - Net income for the three months ended September 30, 2024, was $2,672 thousand, compared to a net loss of $65,853 thousand in June 2024[18]. - Adjusted total revenue for Q3 2024 was $329,499, reflecting a 26.2% increase from $261,116 in Q3 2023[29]. - Net income attributable to loanDepot, Inc. for Q3 2024 was $1,369, compared to a loss of $16,599 in Q3 2023[30]. - Adjusted net income for Q3 2024 was $7,077, a significant improvement from a loss of $29,211 in Q3 2023[30]. - For the three months ended September 30, 2024, loanDepot reported a net income of $2.67 million, compared to a net loss of $32.21 million for the previous quarter and a net loss of $16.60 million for the same period last year[33]. - Adjusted net income for the three months ended September 30, 2024, was $7.08 million, a significant improvement from a loss of $15.89 million in the previous quarter and a loss of $29.21 million in the same period last year[33]. Loan Origination and Volume - Pull-through weighted lock volume for Q3 2024 was $6.7 billion, a 19% increase from Q3 2023, while loan origination volume was $6.7 billion, up 9% year-over-year[8]. - Total loan origination volume for Q3 2024 reached $6,659,329, a 9.5% increase from $6,083,143 in Q3 2023[21]. - Conventional conforming loans accounted for $3,254,702, representing a 3.0% increase from $3,158,107 in the same quarter last year[21]. - FHA/VA/USDA loans increased to $2,564,827, up 8.9% from $2,354,630 in Q3 2023[21]. - Total loans sold amounted to $6,305,964, a slight decrease of 0.3% compared to $6,267,888 in Q3 2023[22]. Assets and Liabilities - Total assets increased to $6,417,627 thousand as of September 30, 2024, up 8.0% from $5,942,777 thousand in June 2024 and 5.6% from $6,078,529 thousand in September 2023[16]. - Total liabilities increased to $5,825,578 thousand as of September 30, 2024, up 8.6% from $5,363,839 thousand in June 2024[19]. - Cash balance stood at $483 million, indicating a strong liquidity profile[1]. - Cash and cash equivalents decreased to $483,048 thousand, down 9.4% from $533,153 thousand in June 2024 and 32.6% from $717,196 thousand in September 2023[16]. - Total equity as of September 30, 2024, was $592,049 thousand, a 2.3% increase from $578,938 thousand in June 2024 but a 23.0% decrease from $768,935 thousand in September 2023[16]. - Available borrowing capacity was $500 million as of September 30, 2024[16]. Operational Efficiency and Strategic Initiatives - The company announced the completion of Vision 2025 and the launch of Project North Star, aimed at sustainable profitability and operational efficiency[4][5]. - The company plans to continue focusing on expanding its loan origination capabilities and enhancing its technology platform to improve operational efficiency[24]. - The company has initiated Project North Star, focusing on achieving run-rate profitability and ongoing cost management[36]. - LoanDepot's restructuring efforts, announced as part of Vision 2025, included employee severance expenses totaling $1.85 million for the three months ended September 30, 2024[34]. - The company is committed to enhancing its HELOC product as part of its strategic initiatives moving forward[36]. Expenses and Charges - The company incurred restructuring and impairment charges totaling $1.9 million, a decrease from the previous year[8]. - Personnel expenses increased to $161,330 thousand for the three months ended September 30, 2024, compared to $141,036 thousand in June 2024[18]. - During the three months ended September 30, 2024, loanDepot incurred $18.88 million in expenses related to a cybersecurity incident, with an expected insurance reimbursement of $20.0 million recorded[34]. - The company recorded $35.0 million in insurance reimbursement related to the cybersecurity incident during the nine months ended September 30, 2024[34]. Market Outlook - The company anticipates origination volume between $6 billion and $8 billion for Q4 2024, with a pull-through weighted rate lock volume forecasted between $5.5 billion and $7.5 billion[10]. - The company anticipates potential growth opportunities despite challenges in the macroeconomic environment and regulatory landscape[36].

Investors in loanDepot, Inc. (LDI) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 20, 2024 $7.5 Put had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also me ...

Core Insights - loanDepot (LDI) reported a revenue of $265.39 million for the quarter ended June 2024, reflecting a decrease of 2.4% year-over-year, and an EPS of -$0.05, an improvement from -$0.19 in the same quarter last year [1] - The reported revenue fell short of the Zacks Consensus Estimate of $267.66 million, resulting in a surprise of -0.85%, while the EPS exceeded expectations by 37.50% against a consensus estimate of -$0.08 [1] Revenue Metrics - Net interest income was reported at -$0.63 million, significantly below the two-analyst average estimate of $2.10 million, marking a year-over-year decline of 122.1% [3] - Other income amounted to $15.31 million, which was lower than the average estimate of $23 million, representing a year-over-year decrease of 10.2% [4] - Servicing fee income reached $125.08 million, slightly below the average estimate of $127.40 million, but showed a year-over-year increase of 6.2% [5] - The change in fair value of servicing rights, net, was reported at -$60.79 million, worse than the average estimate of -$45.30 million, but indicated a year-over-year improvement of 58% [6] Stock Performance - Over the past month, loanDepot's shares have returned +38.1%, contrasting with the Zacks S&P 500 composite's decline of -6.7% [6] - The stock currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market in the near term [6]

LoanDepot (LDI) came out with a quarterly loss of $0.05 per share versus the Zacks Consensus Estimate of a loss of $0.08. This compares to loss of $0.19 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 37.50%. A quarter ago, it was expected that this lender would post a loss of $0.06 per share when it actually produced a loss of $0.21, delivering a surprise of -250%. Over the last four quarters, the company has surpassed conse ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this cha ...