Velocity Financial Q1 core EPS beats estimates, net income up 18%

Velocity Financial

06/05/2026 21:42

Overview

US real estate finance firm's Q1 core diluted EPS beat analyst expectations, net income rose 18% yr/yr

Loan portfolio growth and strong portfolio earnings drove quarterly results

Company completed two securitizations totaling $513.8 mln in Q1

Outlook

Company says financing demand remains strong in commercial and residential rental property markets

Velocity Financial expects to sustain profitable market share growth

Result Drivers

LOAN PORTFOLIO GROWTH - Co said higher net income was driven by loan portfolio growth and strong portfolio earnings

NET INTEREST INCOME - Co attributed higher net interest income and margin to disciplined loan pricing and higher average loan coupons

NONINTEREST INCOME - Co said other operating income rose mainly due to net unrealized gain on fair value instruments

Company press release: ID:nBw2bXQzRa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$85.22 mln
Q1 Core EPS
Beat
$0.68
$0.64 (3 Analysts)
Q1 EPS
$0.57
Q1 Core Net Income
$26.48 mln
Q1 Net Income
$22.36 mln
Q1 Pretax Income
$30.88 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the consumer lending peer group is "buy"

Wall Street's median 12-month price target for Velocity Financial Inc is $22.00, about 13.8% above its May 5 closing price of $19.33

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)