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loanDepot, Inc. (LDI)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 showed operational improvement but missed Street expectations: revenue $282.5M vs consensus $315.8M and Primary EPS -$0.077 vs -$0.0347; origination volume rose 30% QoQ to $6.7B and adjusted EBITDA improved to $25.6M, aided by cost discipline and higher locks. Stock fell ~7.45% post-release, highlighting the miss as the near-term catalyst .
  • Margin compressed: pull-through weighted gain-on-sale (GOS) margin fell to 330 bps from 355 bps in Q1, while adjusted revenue rose 5% QoQ to $291.9M; net loss narrowed to $25.3M, adjusted net loss to $16.0M .
  • Guidance: Q3 origination $5.0–$7.0B, pull-through weighted lock $5.25–$7.25B, GOS margin 325–350 bps; lower lock/volume ranges vs Q2 guidance, but higher margin floor, signaling mix/price discipline .
  • Leadership and tech pivot: Founder Anthony Hsieh appointed permanent CEO; added a Chief Digital Officer and Chief Innovation Officer to accelerate AI-driven operating leverage and scale .

What Went Well and What Went Wrong

What Went Well

  • Origination volume +30% QoQ to $6.73B; pull-through weighted locks +17% QoQ to $6.35B; adjusted revenue +5% QoQ to $291.9M; adjusted EBITDA +$7.3M QoQ to $25.6M .
  • Liquidity strengthened: cash increased $37M QoQ to $409M; servicing UPB rose to $117.54B; 60+ day delinquency improved to 1.4% from 1.5% QoQ .
  • Strategic tech hires and CEO clarity: “My focus is to return to our roots and drive profitable market share growth fueled by technology innovations that power operating leverage, and ultimately a return to profitability.” — CEO Anthony Hsieh ; Q2 call emphasized tech-enabled efficiency at scale .

What Went Wrong

  • Street miss: Primary EPS -$0.077 vs -$0.0347 consensus and revenue $282.5M vs $315.8M; after-hours stock -7.45% as investors reacted to the miss .
  • Margin compression: pull-through weighted GOS margin fell 25 bps QoQ to 330 bps, reflecting product/channel mix shifts (less home equity contribution vs Q1) .
  • Servicing fair value headwinds persisted: changes in fair value of servicing rights, net at -$52.4M (including hedging) weighed on GAAP revenue metrics, despite fee income gains .

Financial Results

Summary Financials vs Prior Periods

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$265.4 $273.6 $282.5
Total Expenses ($USD Millions)$342.5 $319.7 $314.9
Net Loss ($USD Millions)$(65.9) $(40.7) $(25.3)
Diluted Loss per Share ($USD)$(0.18) $(0.11) $(0.06)

Margins and Profitability

MetricQ2 2024Q1 2025Q2 2025
Gain on Sale Margin (%)3.06% 3.72% 3.11%
Pull-through Weighted GOS Margin (%)3.22% 3.55% 3.30%
Adjusted Total Revenue ($USD Millions)$278.0 $278.4 $291.9
Adjusted Net Loss ($USD Millions)$(15.9) $(25.3) $(16.0)
Adjusted EBITDA ($USD Millions)$34.6 $18.3 $25.6

Volumes and Mix

MetricQ2 2024Q1 2025Q2 2025
Rate Lock Volume ($USD Millions)$8,298.3 $7,638.0 $8,560.7
Pull-through Weighted Lock Volume ($USD Millions)$5,782.3 $5,418.7 $6,348.1
Loan Origination Volume ($USD Millions)$6,090.6 $5,173.9 $6,734.5

Actuals vs S&P Global Consensus (Q2 2025)

MetricConsensusActual
Revenue ($USD)$315,790,040*$281,351,000*
Primary EPS ($USD)-$0.03473*-$0.077*

Values retrieved from S&P Global.

Origination Breakdown by Type ($USD Millions)

TypeQ2 2024Q1 2025Q2 2025
Conventional Conforming$3,311.6 $2,118.9 $2,967.9
FHA/VA/USDA$2,271.1 $2,121.2 $2,617.0
Jumbo$150.7 $319.4 $422.7
Other$357.2 $614.5 $726.9
Total$6,090.6 $5,173.9 $6,734.5

Origination by Purpose ($USD Millions)

PurposeQ2 2024Q1 2025Q2 2025
Purchase$4,383.1 $3,063.9 $4,263.8
Refinance – Cash Out$1,562.8 $1,847.2 $1,978.1
Refinance – Rate/Term$144.7 $262.8 $492.6
Total$6,090.6 $5,173.9 $6,734.5

KPIs and Balance Sheet Highlights

MetricQ2 2024Q1 2025Q2 2025
Purchase Mix (%)72% 59% 63%
Organic Refi Recapture Rate (%)59% 65% 70%
Servicing UPB ($USD Billions)$114.28 $116.60 $117.54
60+ Days Delinquent (%)1.3% 1.5% 1.4%
Cash & Equivalents ($USD Millions)$533.2 $371.5 $408.6
PTW GOS Margin (bps)322 355 330

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Pull-through Weighted Lock Volume ($bn)Q3 2025N/A$5.25–$7.25 New issue
Origination Volume ($bn)Q3 2025N/A$5.0–$7.0 New issue
Pull-through Weighted GOS Margin (bps)Q3 2025N/A325–350 New issue
Total ExpensesQ3 2025N/AHigher (non-volume costs normalize, one-time Q2 benefits excluded) New issue
Pull-through Weighted Lock Volume ($bn)Q2 2025$5.5–$8.0 Actual $6.35 Met within range
Origination Volume ($bn)Q2 2025$5.0–$7.5 Actual $6.73 Met within range
Pull-through Weighted GOS Margin (bps)Q2 2025300–350 Actual 330 Within range

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024 and Q1 2025)Current Period (Q2 2025)Trend
AI/technology initiativesProject North Star and mello® platform; investing in tech platforms to reduce cycle time CEO Hsieh: return to innovation roots; added CDO and CIO; focus on AI-driven operating efficiency Strengthening
Macro rates/affordabilitySeasonal decline in Q1; market volatility; rates drive lock/origination guidance Persistent rate headwinds; guidance framed around seasonality and competitive pressures Ongoing headwind
Product performance (home equity)Home equity-linked products drove margin expansion in Q1 Mix shift reduced margin vs Q1; still recapture strong; cash-out refi up QoQ Mixed
Servicing/hedgingDynamic hedging strategy to reduce earnings volatility; fee income down on 2024 bulk MSR sales Servicing fee income up QoQ; fair value changes remain negative; MSR financing expanded (Ginnie Mae notes) Stabilizing fee income; FV headwinds persist
Leadership/JV channelsAnnounced JV expansions (Smith Douglas, Onx Homes) CEO transition complete; retail/partnership leadership promotions Clarity in org; growth focus

Management Commentary

  • “My focus is to return to our roots and drive profitable market share growth fueled by technology innovations that power operating leverage, and ultimately a return to profitability.” — Anthony Hsieh, CEO .
  • “We continued to narrow our loss in the second quarter, thanks to both higher adjusted revenue and lower expenses… increasing our unrestricted cash balance by $37 million to a total of $409 million.” — David Hayes, CFO .
  • Q2 call: “We need to return to growth, gaining profitable market share, and penetrating new markets, and that needs to be powered by new technology and operating efficiencies.” — Anthony Hsieh .
  • CFO emphasized tech-enabled efficiency and scale in outlook commentary .

Q&A Highlights

  • Analysts probed the path to profitable growth; management stressed achieving scale, tech-enabled efficiencies, and balancing investment with capital preservation amid rate headwinds .
  • Limited Q&A volume; call reiterated guidance ranges and operational focus; no material changes to capital/liquidity policy cited in Q2 session .

Estimates Context

  • Q2 2025 results missed S&P Global consensus: revenue $282.35M vs $315.79M and Primary EPS -$0.077 vs -$0.0347; we expect near-term estimate cuts primarily on revenue and EPS to reflect margin compression and lower-than-expected top-line throughput* .
  • Street coverage remains limited (5 EPS estimates, 4 revenue estimates), amplifying volatility in consensus amid execution changes*.

Values retrieved from S&P Global.

Estimates vs Actuals (Q2 2025)

MetricConsensusActual
Revenue ($USD)$315,790,040*$281,351,000*
Primary EPS ($USD)-$0.03473*-$0.077*

Values retrieved from S&P Global.

Key Takeaways for Investors

  • The quarter’s operational progress (higher volume, improved EBITDA, stronger cash) was overshadowed by a revenue/EPS miss; shares sold off ~7% post-release, setting a near-term trading overhang .
  • Margin floor raised in Q3 guidance (325–350 bps) suggests pricing/mix discipline; monitor execution to sustain margin amid competitive rate environment .
  • Tech pivot and leadership additions are tangible catalysts for operating leverage; track productization of AI and measurable cycle-time/expense benefits over H2’25 .
  • Servicing economics: fee income steady QoQ, but fair value headwinds persist; recent MSR term notes diversify financing and extend duration—positive for liquidity/risk management .
  • Watch origination mix: cash-out refi and rate/term refi both up QoQ; home equity product contribution vs first-mortgage cash-out will drive margin trajectory .
  • Expense normalization: Q3 expenses guided higher as one-time Q2 benefits fade; near-term profitability hinges on volume scale plus efficiency programs .
  • Thesis: medium-term improvement depends on sustained rate declines unlocking scale in direct channels, delivery on AI-enabled efficiency, and maintaining strong liquidity to invest through volatility .

Sources

  • Q2 2025 press release and 8-K exhibits, financial tables, and outlook .
  • Q2 2025 press release (duplicate of EX-99.1) .
  • Q1 2025 press release and 8-K (for prior quarter comparisons and guidance) .
  • Q4 2024 press release and 8-K (trend context) .
  • Q2 2025 call transcript (external hosting) .
  • Post-call stock reaction summary .
  • Executive changes and tech leadership additions .