loanDepot(LDI) - 2025 Q3 - Quarterly Results

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