Velocity Financial Q2 revenue, NII grows on loan portfolio expansion, recoveries

Velocity Financial

05/08/2026 21:42

Overview
U.S. business purpose lender's Q2 core EPS decreases yr/yr
Q2 revenue rose 10.7% yr/yr, driven by higher net interest and noninterest income
GAAP EPS declined to $0.64 from $0.69, mainly due to a higher effective tax rate

Outlook
Velocity Financial did not provide specific financial guidance for the current or future periods

Result Drivers
PORTFOLIO GROWTH - Co said higher net interest income was driven by expansion of loan portfolio and recoveries from nonperforming loans
NONINTEREST INCOME - Co said other operating income rose due to net unrealized gain on fair value instruments and origination fee income
COMMERCIAL DEMAND - Co said Q2 production volume was driven by healthy demand for traditional commercial product

Company press release: ID:nBw4Q7N6Ca

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$94.99 mln
 
Q2 Core EPS
 
$0.71
 
Q2 EPS
 
$0.64
 
Q2 Core Net Income
 
$27.85 mln
 
Q2 Net Income
 
$25.16 mln
 
Q2 Pretax Income
 
$35.24 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 $23.00, about 29.1% above its August 4 closing price of $17.82
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
Aug 5 - Security Bancorp Q2 net income rises on higher loan volumes
Aug 3 - Fed lending officer survey finds stable standard for many types of commercial, industrial loans
Aug 4 - LoanDepot Q2 adjusted net loss narrows from prior quarter but misses profit expectations

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.)