Document
loanDepot announces second quarter 2026 financial results
Strategic expansion into home equity drove unit volume growth of 25%, and revenue growth of 18%, improved operating leverage and substantially narrowed the quarterly loss compared to prior quarter.
Second Quarter 2026 Highlights:
•Loan origination volume increased 4% to $7.99 billion and unit volume increased 25% from the first quarter of 2026, demonstrating meaningful progress in the Company’s strategic expansion into home equity lending through its 5X5 HomeLoan product.
•Revenue grew 18% to $337 million and adjusted revenue increased 3% to $308 million compared to the prior quarter, primarily due to higher origination income and servicing revenue.
•Pull-through weighted gain on sale margin increased 74 basis points to 345 basis points, supported by the Company’s deliberate mix shift toward higher-margin home equity and government loans.
•Operating leverage strengthened as revenue increased while expenses increased less than 1% to $344 million from the prior quarter, reflecting disciplined cost management and benefits of a more efficient product mix; return on marketing increased 70% and cost-per-funded loan decreased 12% from the second quarter of 20251.
•The Company has begun actioning approximately $12 million of annualized productivity initiatives progressing through the remainder of the year.
•Net loss was narrowed to $7 million, compared with a net loss of $55 million in the prior quarter.
•Adjusted net loss was $29 million, compared with adjusted net loss of $34 million in the prior quarter.
•Adjusted EBITDA was $20 million, compared to adjusted EBITDA of $14 million in the prior quarter.
•The Company repurchased $16 million of senior notes at an average purchase price of 90% of par during the quarter and repurchased an additional $27 million of notes at an average purchase price of 86% of par post quarter end through July 30, 2026.
IRVINE, Calif., August 04, 2026 - loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, “loanDepot” or the “Company”), today announced results for the second quarter ended June 30, 2026.
"We have moved decisively to reshape the business for profitable market share growth in any macro environment and are starting to see the signs of our progress: we are making more loans, faster and at a lower cost,” said loanDepot Founder and Chief Executive Officer Anthony Hsieh. “In the second quarter, revenue increased, operating leverage improved, and our net loss narrowed substantially even as interest rates rose meaningfully beginning in March. The pace of improvement accelerated as the quarter progressed, with June demonstrating the strongest results so far this year.
Hsieh continued, “A central driver of this momentum is the progress we made during the second quarter in executing our strategic expansion into home equity lending. This represents a significant expansion opportunity within a market supported by approximately $35 trillion of U.S. homeowner equity. Importantly, these are the same homeowners we have long served through traditional refinance products. In a higher-rate environment, however, home equity products can allow qualified borrowers to access liquidity while preserving an attractive first-mortgage rate and may offer a more compelling value proposition than higher-cost alternatives such as unsecured personal loans, credit cards, and certain small business financing products.
1 Internal management metrics: Return on marketing is lead expense to Direct channel revenue and Cost per funded loan is mortgage-related expenses to total origination volume.
“Home equity lending is more stable, less rate sensitive, and less seasonal than refinance and purchase mortgage lending. Loan balances are smaller, but gain on sale and revenue are both typically higher, and our cost to produce is significantly lower. We are now seeing the results of this pivot. The second quarter results demonstrate that this strategic shift is beginning to translate into measurable growth, stronger margins and improved operating leverage.
“During the year, we continued to expand our core mortgage franchise by adding builder partners in our joint venture channel and branch locations in our retail channel. That growth contributed to an increase in purchase market share during the quarter and reinforces the durability of our diversified origination platform.
“Our ability to pivot toward home equity while continuing to grow purchase market share reflects the agility of our team and the adaptability of loanDepot’s differentiated model. We believe our nationally recognized brand, valuable servicing portfolio, diversified origination channels, proven ability to develop loan officers organically, industry-leading recapture capabilities, and technology-enabled customer acquisition platform allow us to redirect capacity toward the products that offer the greatest customer and shareholder value in a given rate environment. Few originators have the resources, customer relationships or operating expertise to make that transition at scale. As refinance and purchase opportunities expand, we expect to deploy the same platform and execution discipline to capture them quickly. This is what it means to be built to compete across market cycles.”
Chief Financial Officer David Hayes said, "The second quarter represented another meaningful step forward in our financial performance and showed that we can increase funded volume while maintaining disciplined expense management and a clear focus on profitability. The benefits of our product mix shift were evident in higher revenue, stronger pull-through weighted gain on sale margin and an improved bottom line. Maintaining strong liquidity remains a top priority, and we took advantage of favorable market conditions to monetize approximately $10 billion of servicing rights after quarter end. We also continue to evaluate opportunities to optimize our capital structure. Addressing the Company’s bond maturities remains a high priority for management, and we are evaluating a range of options with the support of retained advisors."
Second Quarter Highlights:
Financial Summary
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Three Months Ended |
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Six Months Ended |
($ in thousands except per share data)
(Unaudited) |
Jun 30,
2026 |
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Mar 31,
2026 |
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Jun 30,
2025 |
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Jun 30,
2026 |
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Jun 30,
2025 |
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| Rate lock volume |
$ |
8,994,216 |
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$ |
11,445,494 |
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$ |
8,560,699 |
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$ |
20,439,710 |
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$ |
16,198,686 |
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Pull-through weighted lock volume(1)
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6,632,371 |
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8,274,191 |
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6,348,060 |
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14,906,562 |
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11,766,745 |
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| Loan origination volume |
7,993,712 |
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7,658,619 |
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6,734,529 |
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15,652,331 |
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11,908,457 |
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Gain on sale margin(2)
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2.86 |
% |
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2.93 |
% |
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3.11 |
% |
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2.90 |
% |
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3.38 |
% |
Pull-through weighted gain on sale margin(3)
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3.45 |
% |
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2.71 |
% |
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3.30 |
% |
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3.04 |
% |
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3.42 |
% |
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| Financial Results |
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| Total revenue |
$ |
337,321 |
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$ |
286,387 |
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$ |
282,537 |
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$ |
623,708 |
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$ |
556,158 |
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| Total expense |
343,938 |
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341,500 |
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314,871 |
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685,438 |
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634,596 |
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Net loss |
(6,622) |
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(54,942) |
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(25,273) |
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(61,564) |
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(65,969) |
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Diluted loss per share |
$ |
(0.02) |
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$ |
(0.16) |
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$ |
(0.06) |
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$ |
(0.18) |
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$ |
(0.17) |
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Non-GAAP Financial Measures(4)
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| Adjusted total revenue |
$ |
307,551 |
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$ |
299,250 |
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$ |
291,912 |
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$ |
606,801 |
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$ |
570,356 |
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Adjusted net loss |
(29,226) |
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(33,624) |
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(16,013) |
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(62,839) |
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(41,368) |
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Adjusted EBITDA |
20,478 |
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14,305 |
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25,631 |
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34,783 |
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43,928 |
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(1)Pull-through weighted rate lock volume is the principal balance of loans subject to interest rate lock commitments, net of a pull-through factor for the loan funding probability.
(2)Gain on sale margin represents the total of (i) gain on origination and sale of loans, net, and (ii) origination income, net, divided by loan origination volume during period.
(3)Pull-through weighted gain on sale margin represents the total of (i) gain on origination and sale of loans, net, and (ii) origination income, net, divided by the pull-through weighted rate lock volume.
(4)See “Non-GAAP Financial Measures” for a discussion of Non-GAAP Financial Measures and a reconciliation of these metrics to their closest GAAP measure.
Operational Highlights
•Non-volume2 related expenses decreased $6.4 million from the first quarter of 2026, primarily reflecting lower salary-related costs, servicing expense, and other interest expense.
•Pull-through weighted lock volume was $6.6 billion for the second quarter of 2026, a decrease of $1.6 billion or 20% from the first quarter, primarily reflecting the Company’s strategic mix shift toward higher-margin HELOC production, which does not carry an associated interest rate lock.
•Loan origination volume for the second quarter of 2026 was $8.0 billion, an increase of $335.1 million or 4% from the first quarter of 2026.
•Purchase volume totaled 57% of total loans originated during the second quarter, up from 41% during the first quarter of 2026.
2 Volume related expenses include commissions, marketing and advertising expense, and direct origination expense. All remaining expenses are considered non-volume related.
•Our preliminary organic refinance consumer direct recapture rate3 decreased to 68% for the second quarter from the first quarter 2026’s recapture rate of 73%.
Outlook for the third quarter of 2026
•Origination volume of between $6.25 billion and $8.25 billion.
•Pull-through weighted rate lock volume of between $5.25 billion and $7.25 billion.
•Pull-through weighted gain on sale margin of between 360 basis points and 390 basis points.
Servicing
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Three Months Ended |
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Six Months Ended |
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Servicing Revenue Data:
($ in thousands)
(Unaudited)
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Jun 30,
2026 |
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Mar 31,
2026 |
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Jun 30,
2025 |
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Jun 30,
2026 |
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Jun 30,
2025 |
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| Due to collection/realization of cash flows |
$ |
(49,538) |
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$ |
(51,442) |
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$ |
(42,832) |
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$ |
(100,980) |
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$ |
(79,008) |
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| Due to changes in valuation inputs or assumptions |
36,677 |
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448 |
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145 |
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37,125 |
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(23,543) |
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| Realized (losses) gains on sale of servicing rights |
(588) |
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(888) |
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44 |
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(1,477) |
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106 |
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Net (loss) gain from derivatives hedging servicing rights |
(6,319) |
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(12,423) |
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(9,564) |
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(18,741) |
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9,239 |
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Changes in fair value of servicing rights, net of hedging gains and losses |
29,770 |
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(12,863) |
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(9,375) |
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16,907 |
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(14,198) |
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Other realized gains (losses) on sales of servicing rights (1)
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210 |
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(54) |
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(169) |
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156 |
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(273) |
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| Changes in fair value of servicing rights, net |
$ |
(19,558) |
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$ |
(64,359) |
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$ |
(52,376) |
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$ |
(83,917) |
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$ |
(93,479) |
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| Servicing fee income |
$ |
111,964 |
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$ |
108,749 |
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$ |
108,209 |
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$ |
220,713 |
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$ |
212,487 |
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(1)Includes the provision for sold MSRs and broker fees.
3 We define organic refinance consumer direct recapture rate as the total unpaid principal balance (“UPB”) of loans in our servicing portfolio that are paid in full for purposes of refinancing the loan on the same property, with the Company acting as lender on both the existing and new loan, divided by the UPB of all loans in our servicing portfolio that paid in full for the purpose of refinancing the loan on the same property. The recapture rate is finalized following the publication date of this release when external data becomes available. Data is as of July 20, 2026.
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Three Months Ended |
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Six Months Ended |
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Servicing Rights, at Fair Value:
($ in thousands)
(Unaudited)
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Jun 30,
2026 |
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Mar 31,
2026 |
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Jun 30,
2025 |
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Jun 30,
2026 |
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Jun 30,
2025 |
| Balance at beginning of period |
$ |
1,669,648 |
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$ |
1,637,706 |
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$ |
1,603,031 |
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$ |
1,637,706 |
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$ |
1,615,510 |
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| Additions |
98,335 |
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87,150 |
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66,940 |
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185,485 |
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119,626 |
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| Sales proceeds |
(2,991) |
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(3,326) |
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(10,474) |
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(6,316) |
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(15,837) |
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| Changes in fair value: |
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| Due to changes in valuation inputs or assumptions |
36,677 |
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448 |
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145 |
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37,125 |
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(23,543) |
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| Due to collection/realization of cash flows |
(49,538) |
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(51,442) |
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(42,832) |
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(100,980) |
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(79,008) |
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| Realized (losses) gains on sales of servicing rights |
(588) |
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(888) |
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44 |
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(1,477) |
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106 |
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| Total changes in fair value |
(13,449) |
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(51,882) |
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(42,643) |
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(65,332) |
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(102,445) |
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Balance at end of period (1)
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$ |
1,751,543 |
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$ |
1,669,648 |
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$ |
1,616,854 |
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$ |
1,751,543 |
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$ |
1,616,854 |
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(1)Balances are net of $28.3 million, $21.6 million, and $19.1 million of servicing rights liability as of June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
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% Change |
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Servicing Portfolio Data:
($ in thousands)
(Unaudited)
|
Jun 30,
2026 |
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Mar 31,
2026 |
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Jun 30,
2025 |
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Jun-26
vs
Mar-26 |
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Jun-26
vs
Jun-25 |
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| Servicing portfolio (unpaid principal balance) |
$ |
123,387,503 |
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$ |
120,674,154 |
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$ |
117,539,884 |
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2.2 |
% |
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5.0 |
% |
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| Total servicing portfolio (units) |
465,089 |
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455,634 |
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432,764 |
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2.1 |
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7.5 |
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| 60+ days delinquent ($) |
$ |
2,142,638 |
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$ |
2,113,465 |
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$ |
1,641,165 |
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1.4 |
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30.6 |
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| 60+ days delinquent (%) |
1.7 |
% |
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1.8 |
% |
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1.4 |
% |
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| Servicing rights, net to UPB |
1.4 |
% |
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1.4 |
% |
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1.4 |
% |
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Balance Sheet Highlights
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% Change |
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($ in thousands)
(Unaudited)
|
Jun 30,
2026 |
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Mar 31,
2026 |
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Jun 30,
2025 |
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Jun-26
vs
Mar-26 |
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Jun-26
vs
Jun-25 |
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| Cash and cash equivalents |
$ |
229,128 |
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$ |
277,418 |
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$ |
408,623 |
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(17.4) |
% |
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(43.9) |
% |
| Loans held for sale, at fair value |
2,643,032 |
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3,266,759 |
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2,622,959 |
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(19.1) |
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0.8 |
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| Loans held for investment, at fair value |
106,268 |
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108,227 |
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111,591 |
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(1.8) |
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(4.8) |
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| Servicing rights, at fair value |
1,779,817 |
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1,691,235 |
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1,635,991 |
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5.2 |
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8.8 |
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| Total assets |
6,696,560 |
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7,246,519 |
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6,208,726 |
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(7.6) |
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7.9 |
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| Warehouse and other lines of credit |
2,443,802 |
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3,024,131 |
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2,411,416 |
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(19.2) |
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1.3 |
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| Total liabilities |
6,363,514 |
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6,909,223 |
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5,769,676 |
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(7.9) |
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|
10.3 |
|
| Total equity |
333,046 |
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|
337,296 |
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|
439,050 |
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(1.3) |
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(24.1) |
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A decrease in loans held for sale at June 30, 2026, resulted in a corresponding decrease in the balance on our warehouse lines of credit. Total funding capacity with our lending partners was $4.4 billion at June 30, 2026 and March 31, 2026. Available borrowing capacity was $1.9 billion at June 30, 2026.
Consolidated Statements of Operations
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($ in thousands except per share data)
(Unaudited) |
Three Months Ended |
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Six Months Ended |
|
Jun 30,
2026 |
|
Mar 31,
2026 |
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Jun 30,
2025 |
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Jun 30,
2026 |
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Jun 30,
2025 |
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| REVENUES: |
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| Interest income |
$ |
39,692 |
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$ |
39,383 |
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$ |
40,946 |
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$ |
79,075 |
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$ |
76,017 |
|
| Interest expense |
(37,433) |
|
|
(36,679) |
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|
(39,297) |
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(74,112) |
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|
(71,059) |
|
Net interest income |
2,259 |
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|
2,704 |
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|
1,649 |
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|
4,963 |
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|
4,958 |
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| Gain on origination and sale of loans, net |
176,740 |
|
|
192,006 |
|
|
174,810 |
|
|
368,746 |
|
|
341,186 |
|
| Origination income, net |
52,224 |
|
|
32,622 |
|
|
34,931 |
|
|
84,846 |
|
|
60,789 |
|
| Servicing fee income |
111,964 |
|
|
108,749 |
|
|
108,209 |
|
|
220,713 |
|
|
212,487 |
|
| Change in fair value of servicing rights, net |
(19,558) |
|
|
(64,359) |
|
|
(52,376) |
|
|
(83,917) |
|
|
(93,479) |
|
| Other income |
13,692 |
|
|
14,665 |
|
|
15,314 |
|
|
28,357 |
|
|
30,217 |
|
| Total net revenues |
337,321 |
|
|
286,387 |
|
|
282,537 |
|
|
623,708 |
|
|
556,158 |
|
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| EXPENSES: |
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| Personnel expense |
180,729 |
|
|
175,367 |
|
|
154,116 |
|
|
356,096 |
|
|
304,277 |
|
| Marketing and advertising expense |
26,694 |
|
|
29,006 |
|
|
37,878 |
|
|
55,700 |
|
|
76,128 |
|
| Direct origination expense |
27,840 |
|
|
25,088 |
|
|
20,456 |
|
|
52,928 |
|
|
42,411 |
|
| General and administrative expense |
47,528 |
|
|
46,881 |
|
|
39,727 |
|
|
94,409 |
|
|
83,860 |
|
| Occupancy expense |
4,595 |
|
|
4,275 |
|
|
4,133 |
|
|
8,870 |
|
|
8,429 |
|
| Depreciation and amortization |
5,869 |
|
|
6,335 |
|
|
6,379 |
|
|
12,204 |
|
|
14,045 |
|
| Servicing expense |
8,820 |
|
|
11,478 |
|
|
8,184 |
|
|
20,298 |
|
|
18,183 |
|
| Other interest expense |
41,863 |
|
|
43,070 |
|
|
43,998 |
|
|
84,933 |
|
|
87,263 |
|
|
|
|
|
|
|
|
|
|
|
| Total expenses |
343,938 |
|
|
341,500 |
|
|
314,871 |
|
|
685,438 |
|
|
634,596 |
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
(6,617) |
|
|
(55,113) |
|
|
(32,334) |
|
|
(61,730) |
|
|
(78,438) |
|
|
|
|
|
|
|
|
|
|
|
Income tax expense (benefit) |
5 |
|
|
(171) |
|
|
(7,061) |
|
|
(166) |
|
|
(12,469) |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
(6,622) |
|
|
(54,942) |
|
|
(25,273) |
|
|
(61,564) |
|
|
(65,969) |
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to noncontrolling interests |
(2,089) |
|
|
(17,455) |
|
|
(11,885) |
|
|
(19,544) |
|
|
(30,686) |
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to loanDepot, Inc. |
$ |
(4,533) |
|
|
$ |
(37,487) |
|
|
$ |
(13,388) |
|
|
$ |
(42,020) |
|
|
$ |
(35,283) |
|
|
|
|
|
|
|
|
|
|
|
Basic loss per share |
$ |
(0.02) |
|
|
$ |
(0.16) |
|
|
$ |
(0.06) |
|
|
$ |
(0.18) |
|
|
$ |
(0.17) |
|
Diluted loss per share |
$ |
(0.02) |
|
|
$ |
(0.16) |
|
|
$ |
(0.06) |
|
|
$ |
(0.18) |
|
|
$ |
(0.17) |
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
| Basic |
231,643,671 |
|
|
228,962,329 |
|
|
207,948,195 |
|
|
230,290,154 |
|
|
204,370,382 |
|
| Diluted |
231,643,671 |
|
|
228,962,329 |
|
|
207,948,195 |
|
|
230,290,154 |
|
|
204,370,382 |
|
Consolidated Balance Sheets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ($ in thousands) |
Jun 30,
2026 |
|
Mar 31,
2026 |
|
Dec 31,
2025 |
|
(Unaudited) |
|
|
| ASSETS |
|
|
|
|
|
| Cash and cash equivalents |
$ |
229,128 |
|
|
$ |
277,418 |
|
|
$ |
337,232 |
|
| Restricted cash |
70,717 |
|
|
79,770 |
|
|
63,790 |
|
| Loans held for sale, at fair value |
2,643,032 |
|
|
3,266,759 |
|
|
3,165,542 |
|
| Loans held for investment, at fair value |
106,268 |
|
|
108,227 |
|
|
109,821 |
|
| Derivative assets, at fair value |
59,225 |
|
|
70,076 |
|
|
42,365 |
|
| Servicing rights, at fair value |
1,779,817 |
|
|
1,691,235 |
|
|
1,658,223 |
|
| Trading securities, at fair value |
82,008 |
|
|
83,722 |
|
|
85,640 |
|
| Property and equipment, net |
65,485 |
|
|
63,514 |
|
|
61,929 |
|
| Operating lease right-of-use asset |
25,951 |
|
|
24,592 |
|
|
23,877 |
|
| Loans eligible for repurchase |
1,401,739 |
|
|
1,344,573 |
|
|
1,074,386 |
|
| Investments in joint ventures |
18,177 |
|
|
18,101 |
|
|
18,251 |
|
| Other assets |
215,013 |
|
|
218,532 |
|
|
216,880 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
$ |
6,696,560 |
|
|
$ |
7,246,519 |
|
|
$ |
6,857,936 |
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
| LIABILITIES: |
|
|
|
|
|
| Warehouse and other lines of credit |
$ |
2,443,802 |
|
|
$ |
3,024,131 |
|
|
$ |
2,902,539 |
|
| Accounts payable and accrued expenses |
346,638 |
|
|
374,374 |
|
|
349,350 |
|
| Derivative liabilities, at fair value |
6,341 |
|
|
17,253 |
|
|
10,718 |
|
| Liability for loans eligible for repurchase |
1,401,739 |
|
|
1,344,573 |
|
|
1,074,386 |
|
| Operating lease liability |
34,790 |
|
|
34,325 |
|
|
34,630 |
|
| Debt obligations, net |
2,130,204 |
|
|
2,114,567 |
|
|
2,100,303 |
|
| Total liabilities |
6,363,514 |
|
|
6,909,223 |
|
|
6,471,926 |
|
| EQUITY: |
|
|
|
|
|
| Total equity |
333,046 |
|
|
337,296 |
|
|
386,010 |
|
| Total liabilities and equity |
$ |
6,696,560 |
|
|
$ |
7,246,519 |
|
|
$ |
6,857,936 |
|
Loan Origination and Sales Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ in thousands)
(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
Jun 30,
2026 |
|
Mar 31,
2026 |
|
Jun 30,
2025 |
|
Jun 30,
2026 |
|
Jun 30,
2025 |
|
|
| Loan origination volume by type: |
|
|
|
|
|
|
|
|
|
| Conventional conforming |
$3,263,295 |
|
$3,933,312 |
|
$2,967,898 |
|
$7,196,607 |
|
$5,086,764 |
| FHA/VA/USDA |
2,819,401 |
|
2,486,444 |
|
2,616,977 |
|
5,305,845 |
|
4,738,185 |
| Jumbo |
794,773 |
|
668,245 |
|
422,732 |
|
1,463,018 |
|
742,122 |
| Other |
1,116,243 |
|
570,618 |
|
726,922 |
|
1,686,861 |
|
1,341,386 |
| Total |
$7,993,712 |
|
$7,658,619 |
|
$6,734,529 |
|
$15,652,331 |
|
$11,908,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loan origination volume by purpose: |
|
|
|
|
|
|
|
|
| Purchase |
$4,560,891 |
|
$3,159,251 |
|
$4,263,771 |
|
$7,720,142 |
|
$7,327,685 |
| Refinance - cash out |
2,650,296 |
|
2,628,228 |
|
1,978,142 |
|
5,278,524 |
|
3,825,318 |
| Refinance - rate/term |
782,525 |
|
1,871,140 |
|
492,616 |
|
2,653,665 |
|
755,454 |
| Total |
$7,993,712 |
|
$7,658,619 |
|
$6,734,529 |
|
$15,652,331 |
|
$11,908,457 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loans sold: |
|
|
|
|
|
|
|
|
|
| Servicing retained |
$6,713,623 |
|
$5,749,016 |
|
$4,296,646 |
|
$12,462,639 |
|
$7,750,356 |
| Servicing released |
2,001,477 |
|
1,924,638 |
|
2,645,958 |
|
3,926,115 |
|
4,359,921 |
| Total |
$8,715,100 |
|
$7,673,654 |
|
$6,942,604 |
|
$16,388,754 |
|
$12,110,277 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Earnings Call
Management will host a conference call and live webcast today at 5:00 p.m. ET to discuss the Company’s financial and operational highlights followed by a question-and-answer session.
Register online at https://events.q4inc.com/attendee/948119963. A live audio webcast of the conference call will also be available via the Company's website, investors.loandepot.com, under the Events & Presentation tab. A replay of the webcast will be made available following the conclusion of the event.
For more information about loanDepot, please visit the Company’s Investor Relations website: investors.loandepot.com.
Non-GAAP Financial Measures
To provide investors with information in addition to our results as determined by GAAP, we disclose certain non-GAAP measures to assist investors in evaluating our financial results. We believe these non-GAAP measures provide useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. They facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations in hedging strategies, changes in valuations, capital structures (affecting interest expense on non-funding debt), taxation, the age and book depreciation of facilities (affecting relative depreciation expense), and other cost or benefit items which may vary for different companies for reasons unrelated to operating performance. These non-GAAP measures include our Adjusted Total Revenue, Adjusted Net Loss, Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA. We exclude from these non-GAAP financial measures the change in fair value of MSRs, gains (losses) from the sale of MSRs, and related hedging gains and losses that represent realized and unrealized adjustments resulting from changes in valuation, mostly due to changes in market interest rates, and are not indicative of the Company’s operating performance or results of operation. We have excluded expenses directly related to the cybersecurity incident in January 2024 that resulted from unauthorized access to our systems (the “Cybersecurity Incident”), net of insurance recoveries during fiscal 2024, such as costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, and professional fees, including legal expenses, settlement costs, and commission guarantees. We also exclude stock-based compensation expense, which is a non-cash expense, gains or losses on extinguishment of debt and disposal of fixed assets, and impairment charges to operating lease right-of-use assets, as well as certain costs associated with our restructuring efforts, as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA includes interest expense on funding facilities, which are recorded as a component of “net interest income,” as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest expense on our non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA. Adjustments for income taxes are made to reflect historical results of operations on the basis that it was taxed as a corporation under the Internal Revenue Code, and therefore subject to U.S. federal, state, and local income taxes. Adjustments to Diluted Weighted Average Shares Outstanding assumes the pro forma conversion of weighted average Class B and Class C common stock to Class A common stock. These non-GAAP measures have limitations as analytical tools and should not be considered in isolation or as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Some of these limitations are:
•They do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;
•Adjusted EBITDA does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;
•Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted Total Revenue, Adjusted Net Loss, and Adjusted EBITDA do not reflect any cash requirement for such replacements or improvements; and
•They are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows.
Because of these limitations, Adjusted Total Revenue, Adjusted Net Loss, Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA are not intended as alternatives to total revenue, net loss, net loss attributable to the Company, or as an indicator of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Total Revenue, Adjusted Net Loss, Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA along
with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. See below for a reconciliation of these non-GAAP measures to their most comparable U.S. GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Total Revenue to Adjusted Total Revenue
($ in thousands)
(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
Jun 30,
2026 |
|
Mar 31,
2026 |
|
Jun 30,
2025 |
|
Jun 30,
2026 |
|
Jun 30,
2025 |
| Total net revenue |
$ |
337,321 |
|
|
$ |
286,387 |
|
|
$ |
282,537 |
|
|
$ |
623,708 |
|
|
$ |
556,158 |
|
Valuation changes in servicing rights, net of hedging gains and losses(1)
|
(29,770) |
|
|
12,863 |
|
|
9,375 |
|
|
(16,907) |
|
|
14,198 |
|
| Adjusted total revenue |
$ |
307,551 |
|
|
$ |
299,250 |
|
|
$ |
291,912 |
|
|
$ |
606,801 |
|
|
$ |
570,356 |
|
|
|
|
|
|
|
|
|
|
|
(1)Represents the change in the fair value of servicing rights due to changes in valuation inputs or assumptions, net of gains or losses from derivatives hedging servicing rights, and gains (losses) from the sale of MSRs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss to Adjusted Net Loss
($ in thousands)
(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
|
Jun 30,
2026 |
|
Mar 31,
2026 |
|
Jun 30,
2025 |
|
Jun 30,
2026 |
|
Jun 30,
2025 |
Net loss attributable to loanDepot, Inc. |
|
$ |
(4,533) |
|
|
$ |
(37,487) |
|
|
$ |
(13,388) |
|
|
$ |
(42,020) |
|
|
$ |
(35,283) |
|
Net loss from the pro forma conversion of Class B or Class C common stock to Class A common stock (1)
|
|
(2,089) |
|
|
(17,455) |
|
|
(11,885) |
|
|
(19,544) |
|
|
(30,686) |
|
Net loss |
|
(6,622) |
|
|
(54,942) |
|
|
(25,273) |
|
|
(61,564) |
|
|
(65,969) |
|
Adjustments to the benefit for income taxes(2)
|
|
5 |
|
|
54 |
|
|
2,937 |
|
|
53 |
|
|
7,791 |
|
Tax-effected net loss |
|
(6,617) |
|
|
(54,888) |
|
|
(22,336) |
|
|
(61,511) |
|
|
(58,178) |
|
Valuation changes in servicing rights, net of hedging gains and losses(3)
|
|
(29,770) |
|
|
12,863 |
|
|
9,375 |
|
|
(16,907) |
|
|
14,198 |
|
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
|
5,281 |
|
|
6,393 |
|
|
(2,256) |
|
|
11,674 |
|
|
3,460 |
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges(4)
|
|
1,198 |
|
|
708 |
|
|
157 |
|
|
1,906 |
|
|
2,278 |
|
Cybersecurity incident(5)
|
|
1,058 |
|
|
121 |
|
|
301 |
|
|
1,179 |
|
|
1,089 |
|
| Gain on extinguishment of debt |
|
(1,170) |
|
|
— |
|
|
— |
|
|
(1,170) |
|
|
— |
|
| Loss (gain) on disposal of fixed assets |
|
1,596 |
|
|
(72) |
|
|
11 |
|
|
1,524 |
|
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
Other impairment(6)
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
5 |
|
Tax effect of adjustments(7)
|
|
(802) |
|
|
1,251 |
|
|
(1,265) |
|
|
466 |
|
|
(4,248) |
|
Adjusted net loss |
|
$ |
(29,226) |
|
|
$ |
(33,624) |
|
|
$ |
(16,013) |
|
|
$ |
(62,839) |
|
|
$ |
(41,368) |
|
|
|
|
|
|
|
|
|
|
|
|
(1)Reflects net loss to Class A common stock and Class D common stock from the pro forma exchange of Class B common stock and Class C common stock.
(2)loanDepot, Inc. is subject to federal, state and local income taxes. Adjustments to the benefit for income taxes reflect the income tax rates below, and the pro forma assumption that loanDepot, Inc. owns 100% of LD Holdings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
Jun 30,
2026 |
|
Mar 31,
2026 |
|
Jun 30,
2025 |
|
Jun 30,
2026 |
|
Jun 30,
2025 |
| Statutory U.S. federal income tax rate |
21.00 |
% |
|
21.00 |
% |
|
21.00 |
% |
|
21.00 |
% |
|
21.00 |
% |
| State and local income taxes (net of federal benefit) |
4.52 |
|
|
4.82 |
|
|
3.71 |
|
|
4.67 |
% |
|
4.39 |
% |
Effect of valuation allowance and other tax adjustments |
(25.29) |
% |
|
(25.51) |
% |
|
— |
% |
|
(25.40) |
% |
|
— |
% |
| Effective income tax rate |
0.23 |
% |
|
0.31 |
% |
|
24.71 |
% |
|
0.27 |
% |
|
25.39 |
% |
|
|
|
|
|
|
|
|
|
|
(3)Represents the change in the fair value of servicing rights due to changes in valuation inputs or assumptions, net of gains or losses from derivatives hedging servicing rights, and gains (losses) from the sale of MSRs.
(4)Reflects employee severance expense and professional services associated with restructuring efforts.
(5)Represents expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 2024, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees including legal expenses, settlement costs, and commission guarantees.
(6)Represents lease impairment on corporate and retail locations.
(7)Amounts represent the income tax effect using the aforementioned effective income tax rates, excluding certain discrete tax items.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Diluted Weighted Average Shares Outstanding to Adjusted Diluted Weighted Average Shares Outstanding
(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
Jun 30,
2026 |
|
Mar 31,
2026 |
|
Jun 30,
2025 |
|
Jun 30,
2026 |
|
Jun 30,
2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share Data: |
|
|
|
|
|
|
|
|
|
Diluted weighted average shares of Class A common stock and Class D common stock outstanding |
231,643,671 |
|
|
228,962,329 |
|
|
207,948,195 |
|
|
230,290,154 |
|
|
204,370,382 |
|
Assumed pro forma conversion of weighted average Class B common stock and Class C common stock to Class A common stock (1)
|
106,139,515 |
|
|
106,207,433 |
|
|
121,881,530 |
|
|
106,173,474 |
|
|
124,561,094 |
|
| Adjusted diluted weighted average shares outstanding |
337,783,186 |
|
335,169,762 |
|
329,829,725 |
|
336,463,628 |
|
328,931,476 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)Reflects the assumed pro forma exchange and conversion of Class B and Class C common stock.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Loss to Adjusted EBITDA
($ in thousands)
(Unaudited)
|
Three Months Ended |
|
Six Months Ended |
Jun 30,
2026 |
|
Mar 31,
2026 |
|
Jun 30,
2025 |
|
Jun 30,
2026 |
|
Jun 30,
2025 |
Net loss |
$ |
(6,622) |
|
|
$ |
(54,942) |
|
|
$ |
(25,273) |
|
|
$ |
(61,564) |
|
|
$ |
(65,969) |
|
Interest expense - non-funding debt (1)
|
41,863 |
|
|
43,070 |
|
|
43,998 |
|
|
84,933 |
|
|
87,263 |
|
Income tax expense (benefit) |
5 |
|
|
(171) |
|
|
(7,061) |
|
|
(166) |
|
|
(12,469) |
|
| Depreciation and amortization |
5,869 |
|
|
6,335 |
|
|
6,379 |
|
|
12,204 |
|
|
14,045 |
|
Valuation changes in servicing rights, net of hedging gains and losses(2)
|
(29,770) |
|
|
12,863 |
|
|
9,375 |
|
|
(16,907) |
|
|
14,198 |
|
|
|
|
|
|
|
|
|
|
|
| Stock-based compensation expense |
5,281 |
|
|
6,393 |
|
|
(2,256) |
|
|
11,674 |
|
|
3,460 |
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges(3)
|
1,198 |
|
|
708 |
|
|
157 |
|
|
1,906 |
|
|
2,278 |
|
Cybersecurity incident(4)
|
1,058 |
|
|
121 |
|
|
301 |
|
|
1,179 |
|
|
1,089 |
|
|
|
|
|
|
|
|
|
|
|
| Loss (gain) on disposal of fixed assets |
1,596 |
|
|
(72) |
|
|
11 |
|
|
1,524 |
|
|
28 |
|
|
|
|
|
|
|
|
|
|
|
Other impairment (5)
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
5 |
|
Adjusted EBITDA |
$ |
20,478 |
|
|
$ |
14,305 |
|
|
$ |
25,631 |
|
|
$ |
34,783 |
|
|
$ |
43,928 |
|
|
|
|
|
|
|
|
|
|
|
(1)Represents other interest expense, which includes gain or loss on extinguishment of debt and amortization of debt issuance costs and debt discount, in the Company’s consolidated statements of operations.
(2)Represents the change in the fair value of servicing rights due to changes in valuation inputs or assumptions, net of gains or losses from derivatives hedging servicing rights, and gains (losses) from the sale of MSRs.
(3)Reflects employee severance expense and professional services associated with restructuring efforts.
(4)Represents expenses directly related to the Cybersecurity Incident, net of insurance recoveries during fiscal 2024, including costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, professional fees including legal expenses, settlement costs, and commission guarantees.
(5)Represents lease impairment on corporate and retail locations.
Forward-Looking Statements
This press release and 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,” “aim,” “anticipate,” “expect,” “goal,” “intend,” “plan,” “predict,” “estimate,” “project,” “will be,” “will continue,” “will likely result,” or other similar words and phrases or future or conditional verbs such as “will,” “may,” “might,” “should,” “would,” or “could” and the negatives of those terms. Examples of forward-looking statements include, but are not limited to, our strategic expansion into home equity lending and the expected benefits of that strategy; attractiveness and growth of our home equity products, competitive advantages and market differentiators; automation, technology and innovation initiatives and investments, including artificial intelligence and the benefits of our technology-enabled, multi-channel platform; strategic opportunities, strengths, plans, focuses, and progress; our momentum; our readiness to take advantage of improved market opportunities; market share; hedging strategy benefits; return to profitability; expenses and expense management; liquidity and financing strategies; settlement of a mortgage servicing rights transaction; productivity initiatives; loan officer growth and development; operating leverage; loan origination volumes; pull-through weighted lock volume; pull-through weighted gain on sale margin; and evaluation of capital structures and bond maturities.
These forward-looking statements are based on current available operating, financial, economic and other information, and are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict, including but not limited to, the following: our ability to achieve the expected benefits of our strategic plans and priorities and the success of other business initiatives, including our partnership with Figure Technology Solutions; our ability to achieve profitability; our loan production volume; our ability to maintain an operating platform and management system sufficient to conduct our business; our ability to maintain warehouse lines of credit and other sources of capital and liquidity; our ability to effectively utilize artificial intelligence and emerging technologies; impacts of cybersecurity incidents, cyberattacks, information or security breaches and technology disruptions or failures, of ours or of our third party vendors; the outcome of legal proceedings to which we are a party; our ability to favorably resolve regulatory matters related to the Cybersecurity Incident; adverse changes in macroeconomic and U.S residential real estate and mortgage market conditions, including changes in interest rates, changes in global trade policy and tariffs, geopolitical tensions and conflicts and impacts from government shutdowns; changing federal, state and local laws, as well as changing regulatory enforcement policies and priorities; our ability to address our senior notes; and other risks detailed in the "Risk Factors" section of loanDepot, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2025, as well as any subsequent filings with the Securities and Exchange Commission. Therefore, current plans, anticipated actions, and financial results, as well as the anticipated development of the industry, may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot does not undertake any obligation to publicly update or revise any forward-looking statement to reflect future events or circumstances, except as required by applicable law.
About loanDepot
Since its launch in 2010, loanDepot (NYSE: LDI) has revolutionized the mortgage industry with digital innovations that make transacting easier, faster, and less stressful for customers and originators alike. The Company, which is licensed in all 50 states, helps its customers achieve the American dream of homeownership through a broad suite of lending and real estate services that simplify one of life's most complex transactions. loanDepot is also committed to serving the communities in which its team lives and works through a variety of local and national philanthropic efforts.
Investor Relations Contact:
Gerhard Erdelji
Senior Vice President, Investor Relations
(949) 822-4074
gerdelji@loandepot.com
Media Contact:
Rebecca Anderson
Senior Vice President, Communications & Public Relations
(949) 822-4024
rebeccaanderson@loandepot.com
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