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Velocity Financial ( (VEL) ) just unveiled an announcement.
On January 26, 2026, Velocity Financial, Inc. announced that its subsidiary Velocity Commercial Capital, LLC plans an unregistered offering of up to $500 million in senior notes due 2031, guaranteed on a senior unsecured basis by the parent company and sold to qualified institutional buyers and certain non-U.S. investors, a move that could bolster its funding base and support continued loan growth. The company also reported strong preliminary unaudited results for the fourth quarter and full year 2025, including at least $35 million in quarterly net income and $105 million for the year, robust increases in earnings per share, approximately $2.7 billion in 2025 loan originations, a 28% rise in total portfolio unpaid principal balance to about $6.5 billion, improved asset quality with nonperforming loans reduced to between 8.5% and 8.6% of total UPB, and stockholders’ equity of at least $675 million, underscoring significant expansion in its investor real estate lending franchise ahead of final audited results due March 11, 2026.
The most recent analyst rating on (VEL) stock is a Buy with a $22.50 price target. To see the full list of analyst forecasts on Velocity Financial stock, see the VEL Stock Forecast page.
Spark’s Take on VEL Stock
According to Spark, TipRanks’ AI Analyst, VEL is a Neutral.
The score is driven by solid profitability/cash conversion and positive earnings-call momentum, supported by an attractive low P/E. The biggest offset is balance-sheet risk from very high leverage (plus some data inconsistencies), while technicals are mildly constructive and the NPL sale is a supportive de-risking event.
To see Spark’s full report on VEL stock, click here.
More about Velocity Financial
Velocity Financial, Inc., based in Westlake Village, California, is a vertically integrated real estate finance company that primarily originates and manages business-purpose loans secured by 1-4 unit residential rental and small commercial properties, lending nationwide through a long-established network of independent mortgage brokers and focusing on the underserved investor loan market.
Average Trading Volume: 88,568
Technical Sentiment Signal: Buy
Current Market Cap: $754.3M
For a thorough assessment of VEL stock, go to TipRanks’ Stock Analysis page.