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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 Q3 Earnings: A Step in the Right Direction

loanDepot reported an adjusted net loss of $3 million in the third quarter, a significant improvement from the adjusted net loss of $16 million in the second quarter. The company's adjusted total revenue was $325 million, and pull-through weighted gain on sale margin was 339 basis points. The actual EPS came out at -$0.01, beating estimates of -$0.04. The pull-through weighted rate lock volume was $7 billion, a 10% increase from the prior quarter.

Publication Date: Nov -19

📋 Highlights
  • Strategic Positioning:: LoanDepot emphasizes a diversified business model with in-house servicing, growing to the second-largest retail lender in the U.S.
  • Q3 Business Transformation:: Leadership changes, tech innovation upgrades, and realigned sales teams under new channel presidents to drive growth.
  • Financial Improvement:: Adjusted net loss narrowed to $3M (Q3) from $16M (Q2); pull-through weighted rate lock volume rose 10% to $7B.
  • Revenue & Margins:: Adjusted total revenue $325M, pull-through weighted gain on sale margin at 339 basis points in Q3.
  • Q4 Guidance:: Projects pull-through lock volume of $6B–$8B and origination volume of $6.5B–$8.5B, with higher expenses tied to increased volume.

Operational Highlights

Anthony Hsieh, loanDepot's Founder and CEO, emphasized the company's diversified business model with best-in-class origination capabilities across multiple channels, complemented by an in-house servicing platform and technology assets. The company initiated a business transformation in the third quarter, including naming new leadership across origination channels and transforming technology and innovation functions.

Guidance and Outlook

The company expects pull-through weighted lock volume of between $6 billion and $8 billion and origination volume of between $6.5 billion and $8.5 billion in the fourth quarter. Total expenses are expected to increase due to higher volume-related expenses. Analysts estimate next year's revenue growth at 17.3%, indicating a positive outlook for the company.

Valuation and Capital Structure

With a Price-to-Sales Ratio of 0.78, the market is pricing in a relatively moderate growth expectation. The company's EV/EBITDA ratio is -2.36, indicating that the market is factoring in significant losses. David Hayes, CFO, discussed the company's capital structure and funding for growth opportunities, stating that they have largely worked through their renewal season for warehouse lines and have the opportunity to upsize as needed.

Conclusion and Future Prospects

Anthony Hsieh emphasized the company's confidence in growing market share profitably and its focus on execution. The company is considering capital raising options, including an ATM, to stabilize its capital structure. With a disciplined focus on creating sustainable value for shareholders, loanDepot is well-positioned for any return in volume and margins.

3. NewsRoom

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Market Today: Nvidia earnings, Ford-Amazon tie-up, Boeing lands mega order

Nov -17

Source: gurufocus.com

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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

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

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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

2.73$

Current Price

2.73$

Potential

-0.00%

Expected Cash-Flows