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1. Company Snapshot

1.a. Company Description

loanDepot, Inc.engages in originating, financing, selling, and servicing residential mortgage loans in the United States.It offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans.


The company also provides settlement services, which include captive title and escrow business; real estate services that cover captive real estate referral business; and insurance services, including services to homeowners, as well as other consumer insurance policies.The company was founded in 2010 and is headquartered in Foothill Ranch, California.

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1.b. Last Insights on LDI

Negative drivers behind loanDepot's recent 3-month performance include a Q4 loss of $0.23 per share, exceeding the Zacks Consensus Estimate of $0.02. The company's revenue also fell short of expectations, with a year-over-year decline in mortgage banking revenue. Additionally, loanDepot announced a leadership transition, with Frank Martell stepping down as CEO and Anthony Hsieh rejoining the executive leadership team as Executive Chairman of Mortgage Originations. This change in leadership may have contributed to the company's disappointing earnings release. Furthermore, the company's expansion of its equityFREEDOM portfolio, while a positive development, may not have been enough to offset the negative impact of these other factors.

1.c. Company Highlights

2. LoanDepot's Q2 Loss Narrows on Revenue Growth and Expense Control

LoanDepot reported a second quarter adjusted net loss of $16 million, an improvement from the $25 million loss in the first quarter. The company's adjusted total revenue reached $292 million, up from $278 million in the previous quarter. The pull-through weighted gain on sale margin decreased to 330 basis points from 355 basis points in the first quarter, yet remained within the guided range of 300 to 350 basis points. Actual EPS came out at -$0.09, missing estimates of -$0.02.

Publication Date: Sep -04

📋 Highlights
  • Net Loss Narrows:: Adjusted net loss improved to $16M in Q2 from $25M in Q1.
  • Volume Growth:: Pull-through weighted rate lock volume surged 17% to $6.3B, driving revenue to $292M ($14M increase).
  • Margin Stability:: Gain on sale margin dipped to 330 bps but stayed within guidance (300–350 bps), despite a 5 bps decline from Q1.
  • Origination Expansion:: Loan origination volume jumped 30% to $6.7B, aligning with guidance.
  • Liquidity Strengthened:: Cash reserves rose to $409M (+$37M QoQ), reflecting disciplined financial management amid growth.

Operational Highlights

Loan origination volume increased 30% to $6.7 billion, and the pull-through weighted rate lock volume rose 17% to $6.3 billion. The company's direct lending channel was highlighted as a key asset, enabling rapid scale and market share capture. CEO Anthony Hsieh emphasized a strategy focused on profitable market share growth, technology-driven operating efficiencies, and returning to profitability.

Guidance and Outlook

Looking ahead, loanDepot projects third quarter pull-through weighted lock volume between $5.25 billion and $7.25 billion, origination volume between $5 billion and $7 billion, and a pull-through weighted gain on sale margin between 325 and 350 basis points. Total expenses are expected to increase due to non-volume-related expenses, partially offset by lower volume-related expenses.

Valuation and Financial Discipline

The company's P/S Ratio stands at 0.58, indicating a relatively low revenue multiple. The EV/EBITDA ratio is 35.79, suggesting that the market is pricing in significant future growth. LoanDepot ended the quarter with $409 million in cash, up $37 million from the first quarter, demonstrating a focus on financial discipline while pursuing growth initiatives. Analysts estimate next year's revenue growth at 18.1%.

Digital Transformation and Leadership

CEO Anthony Hsieh announced the appointment of Dominick Marchetti as Chief Digital Officer and Sean DeJulia as Chief Innovation Officer, bringing expertise in technology and mortgage operations to accelerate the company's digital transformation. This move is expected to drive operating efficiencies and support the company's strategy for profitable growth.

3. NewsRoom

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loanDepot, Inc. (LDI) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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loanDepot (LDI) Reports Q3 Loss, Beats Revenue Estimates

Nov -07

Source: zacks.com

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loanDepot Announces Third Quarter 2025 Financial Results

Nov -06

Source: businesswire.com

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loanDepot Appoints Nikul Patel Chief Growth Officer

Nov -05

Source: businesswire.com

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loanDepot (LDI) Expected to Announce Quarterly Earnings on Thursday

Oct -30

Source: defenseworld.net

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loanDepot, Inc. to Report Third Quarter 2025 Financial Results on November 6, 2025

Oct -22

Source: businesswire.com

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loanDepot Renews Focus on Consumer Direct Lending, Reassembles Consumer Direct Lending Dream Team

Oct -14

Source: businesswire.com

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Rick Calle Returns to loanDepot to Lead Strategy and Revenue Operations

Oct -13

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.00%)

6. Segments

Mortgage and Consumer Loans

Expected Growth: 10%

loanDepot, Inc.'s 10% growth in Mortgage and Consumer Loans is driven by increasing demand for housing, low interest rates, and a strong economy. Additionally, the company's digital platform and expanded product offerings have improved customer experience, leading to increased market share and revenue growth.

7. Detailed Products

Conventional Loans

Fixed-rate and adjustable-rate loans for purchasing or refinancing a primary residence, second home, or investment property.

FHA Loans

Government-backed loans with lower down payment requirements and more lenient credit score requirements.

VA Loans

Zero-down mortgage options for eligible veterans, active-duty military personnel, and surviving spouses.

Jumbo Loans

Higher-balance loans for luxury homes or high-cost areas, often with more stringent credit and income requirements.

Refinance Loans

Loans for refinancing an existing mortgage to lower monthly payments, tap into equity, or switch from an adjustable to a fixed rate.

Home Equity Loans

Loans that allow homeowners to tap into their home's equity for cash or to consolidate debt.

Personal Loans

Unsecured loans for various personal expenses, such as debt consolidation, weddings, or home improvements.

8. loanDepot, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for loanDepot, Inc. is medium due to the presence of alternative mortgage lenders and financial institutions that offer similar services.

Bargaining Power Of Customers

The bargaining power of customers is low due to the complexity of mortgage products and the lack of price sensitivity among customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and its ability to negotiate favorable terms with suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the mortgage lending industry and the potential for new fintech companies to disrupt the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the mortgage lending industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 92.31%
Debt Cost 8.42%
Equity Weight 7.69%
Equity Cost 19.63%
WACC 9.28%
Leverage 1200.59%

11. Quality Control: loanDepot, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Guild

A-Score: 5.5/10

Value: 5.1

Growth: 3.8

Quality: 4.2

Yield: 8.0

Momentum: 8.0

Volatility: 4.0

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Security National Financial

A-Score: 4.9/10

Value: 8.6

Growth: 5.0

Quality: 6.5

Yield: 0.0

Momentum: 3.0

Volatility: 6.0

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Velocity Financial

A-Score: 4.9/10

Value: 5.2

Growth: 7.1

Quality: 5.5

Yield: 0.0

Momentum: 4.0

Volatility: 7.3

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UWM Holdings

A-Score: 4.5/10

Value: 2.2

Growth: 3.0

Quality: 4.2

Yield: 10.0

Momentum: 3.5

Volatility: 4.0

1-Year Total Return ->

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Encore Capital Group

A-Score: 4.0/10

Value: 7.9

Growth: 2.4

Quality: 5.0

Yield: 0.0

Momentum: 4.0

Volatility: 4.7

1-Year Total Return ->

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loanDepot

A-Score: 3.9/10

Value: 6.4

Growth: 2.3

Quality: 3.9

Yield: 2.0

Momentum: 8.0

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.92$

Current Price

2.92$

Potential

-0.00%

Expected Cash-Flows