LoanDepot Q2 adjusted net loss narrows from prior quarter but misses profit expectations

loanDepot

04/08/2026 21:19

Overview
U.S. mortgage lender's Q2 revenue grew 18% sequentially, driven by home equity lending expansion
Adjusted net loss for Q2 missed analyst expectations, though loss narrowed from prior quarter
Company repurchased $16 mln of senior notes in Q2, plus $27 mln post quarter-end

Outlook
LoanDepot sees Q3 origination volume between $6.25 bln and $8.25 bln
Company expects Q3 pull-through weighted rate lock volume of $5.25 bln to $7.25 bln
LoanDepot forecasts Q3 pull-through weighted gain on sale margin of 360-390 basis points

Result Drivers
HOME EQUITY LENDING - Co said expansion into home equity lending through its 5X5 HomeLoan product drove 25% unit volume growth and 18% revenue growth
PRODUCT MIX SHIFT - Deliberate shift toward higher-margin home equity and government loans supported a 74 basis point increase in pull-through weighted gain on sale margin
COST MANAGEMENT - Expenses increased less than 1% from prior quarter, reflecting disciplined cost management and a more efficient product mix

Company press release: ID:nBw8WJY9xa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$337.32 mln
 
Q2 Adjusted Revenue
Miss
$307.55 mln
$333.59 mln (2 Analysts)
Q2 Loss Per Share
 
$0.02
 
Q2 Adjusted Net Income
Miss
-$29.23 mln
$1.05 mln (3 Analysts)
Q2 Net Loss
 
$6.62 mln
 
Q2 Adjusted EBITDA
 
$20.48 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"
Wall Street's median 12-month price target for loanDepot Inc is $1.38, about 27.3% above its August 3 closing price of $1.08
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
Aug 3 - BCB Bancorp posts Q2 net loss on higher credit costs
Aug 3 - Oxford Bank's Q2 net income dips on higher noninterest expense
Aug 3 - Fed lending officer survey finds stable standard for many types of commercial, industrial loans

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)