Velocity Financial Q4 core EPS beats estimates, revenue rises

Velocity Financial

11/03/2026 20:29

Overview

U.S. business purpose lender's Q4 revenue rose 44.6% yr/yr; core diluted EPS beat expectations

Quarter driven by record loan production and gain on sale of nonperforming loans

Nonperforming loans as percent of portfolio fell to 8.5% from 10.7% yr/yr

Outlook

Velocity Financial did not provide specific guidance for the current qtr or full yr

Result Drivers

RECORD LOAN PRODUCTION - Q4 production volume reached a record, driven mainly by demand for Investor 1-4 rental loans, which rose 40.6% yr/yr

NPL SALE GAINS - Net income benefited from a $13.4 mln tax-effected gain on sale of nonperforming loans

Company press release: ID:nBw57W7Wda

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
$102.9 mln
Q4 Core EPS
Beat
$0.93
$0.67 (3 Analysts)
Q4 Core Net Income
$36.3 mln
Q4 Pretax Income
$50.05 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 21.1% above its March 10 closing price of $18.16

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.)