loanDepot Q2 2025 slides: Origination volume rises amid continued losses

Introduction & Market Context

loanDepot Inc. (NYSE:LDI) presented its second quarter 2025 results on August 7, revealing increased origination volume despite ongoing profitability challenges in a persistently difficult mortgage market. The company’s stock closed at $1.74, down 7.45% on the day, reflecting investor concerns despite some operational improvements.

The mortgage lender continues to navigate a complex market environment characterized by high interest rates and affordability challenges for homebuyers. Against this backdrop, loanDepot has positioned itself as a comprehensive homeownership lifecycle company, offering services spanning from real estate agent connections to home management solutions.

Quarterly Performance Highlights

loanDepot reported $6.7 billion in originations for Q2 2025, generating total revenue of $282.5 million and adjusted revenue of $291.9 million. Despite these figures, the company posted a net loss of $25 million, though it managed to reduce total expenses by approximately 2% compared to the previous quarter.

As shown in the following quarterly fact sheet, the company maintained key operational metrics while working to improve its financial position:

The company’s purchase mix comprised 63% of originations, reflecting loanDepot’s continued focus on purchase mortgages in a market where refinancing activity remains subdued. The company also reported an organic refinance consumer direct recapture rate of 70%, demonstrating strong customer retention capabilities.

Detailed Financial Analysis

loanDepot’s origination volume showed improvement quarter-over-quarter, increasing from $5.4 billion in Q1 2025 to $6.3 billion in Q2 2025. However, the company’s market share slightly decreased from 1.3% to 1.2% during the same period, indicating that industry-wide origination volume may have grown at a faster pace.

The following chart illustrates loanDepot’s origination growth relative to the industry over recent quarters:

On the expense front, loanDepot continues to manage its cost structure, with total expenses decreasing from $4,547 million in Q1 2025 to $4,509 million in Q2 2025. This represents the company’s ongoing efforts to achieve operational efficiency in a challenging market environment.

The company’s historical cost structure comparison reveals the composition of expenses over time:

loanDepot’s servicing portfolio continued its steady growth, with unpaid principal balance (UPB) increasing to $118 billion in Q2 2025 from $117 billion in the previous quarter. The servicing portfolio maintains solid fundamentals with a weighted average FICO score of 728 and a delinquency rate (60+ days) of 1.4%.

The following chart shows the historical trend in loanDepot’s servicing portfolio:

Strategic Initiatives

loanDepot continues to position itself as a comprehensive provider of homeownership services, extending beyond traditional mortgage lending. The company’s strategic vision encompasses the entire homeownership lifecycle, from finding a real estate agent to managing home improvements and renovations.

As illustrated in the following slide, loanDepot’s service offerings span multiple aspects of homeownership:

A notable operational update included in the presentation was the appointment of Founder and Chairman of the Board Anthony Hsieh as permanent CEO, signaling stability in leadership as the company navigates market challenges.

The company also highlighted its improved liquidity position, with unrestricted cash increasing to $409 million in Q2 2025 from $371 million in Q1 2025. This represents 7% of total assets, providing a buffer against market volatility.

Forward-Looking Statements

Looking ahead to Q3 2025, loanDepot provided guidance for pull-through weighted rate lock volume of $5.25-$7.25 billion and origination volume of $5.0-$7.0 billion. The company expects pull-through weighted gain-on-sale margins between 325 and 350 basis points.

The following outlook details loanDepot’s expectations for the coming quarter:

This guidance suggests cautious optimism about near-term market conditions, though the wide ranges indicate continued uncertainty in the mortgage market. The company’s focus on maintaining its servicing portfolio and diversifying revenue streams appears to be a strategic hedge against ongoing market volatility.

While loanDepot has shown improvement in certain operational metrics, the continued net losses highlight the challenges facing mortgage lenders in the current high-interest-rate environment. The company’s ability to further reduce expenses while maintaining market share will be critical to achieving profitability in the quarters ahead.

Full presentation:

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