Velocity Financial (VEL)
NYSE:VEL
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Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
0.68Last Year’s EPS
0.73Same Quarter Last Year
Moderate Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
Overall, the call conveyed a positive tone: strong earnings growth, double-digit year-over-year portfolio expansion, attractive new-production yields, solid NIM, effective NPL resolution performance and a successful $500M unsecured debt issuance that materially strengthened liquidity and reduced short-term warehouse reliance. The company did acknowledge an elevated but improving nonperforming loan rate, sizeable fair-value valuation allowances on NPLs, some REO markdowns and early-year seasonality in originations; however management framed these as manageable and supported by disciplined underwriting and servicing capabilities.Company Guidance
Strong Earnings Growth
Core net income increased 30% year-over-year in Q1 2026, demonstrating meaningful profitability improvement.
Material Portfolio and Origination Growth
Total loan portfolio UPB reached $6.8 billion, up 25.6% year-over-year and 5.3% quarter-over-quarter. Q1 originations were ~$639 million in UPB across >1,600 loans, consistent with Q4 2025 volumes.
High Yielding New Production and Portfolio Yield Expansion
Weighted average coupon on new held-for-investment originations was 10.1% (5-quarter average 10.3%). Portfolio weighted average coupon was 9.75%, a 16 basis point increase year-over-year; portfolio yield increased ~12 bps YoY.
Stable Net Interest Margin
Net interest margin was 3.56% in Q1 2026, essentially in line with guidance/target (3.5%) and roughly flat to Q4 2025 (3.59%).
Strong NPL Resolution Performance
Nonperforming loan resolutions totaled just over $70 million UPB with total recovered revenue of $4.6 million (6.5% over UPB). Company reported positive NPL resolution recoveries at ~102.3% (recoveries above principal) and strong collection gains on default interest/prepayment (gains ~$1.6 million).
Net REO Gains
Combined REO activity produced a net gain of $3.5 million in Q1 2026 versus a $2.7 million net gain in Q1 2025; gains on transfers to new REOs were $6.8 million (vs $4.4 million prior year).
Significant Funding & Liquidity Strengthening
Completed first-ever $500 million unsecured corporate debt issuance (rated by Moody's and Fitch), oversubscribed and broad investor demand. Total liquidity of $329 million (cash $87M + ~$242M available on unfinanced collateral). Available warehouse line capacity ~$835.6M of $935M max.
Lower Reliance on Short-Term Warehouse and Healthy Leverage
Proceeds from corporate debt used to pay off $215M secured note and reduce warehouse lines. Recourse debt-to-equity ratio remained low at 1.0x; total debt-to-equity (including nonrecourse securitizations) was 9.6x.
Confident Outlook
Management reiterated expectations for ~3.5% NIM for the year and guided to portfolio growth with origination volumes expected to pick up in the second half of 2026.
VEL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
VEL Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 06, 2026 | $19.57 | $18.29 | -6.54% |
Mar 12, 2026 | $17.79 | $17.41 | -2.14% |
Nov 06, 2025 | $18.74 | $18.91 | +0.91% |
Aug 07, 2025 | $16.33 | $17.58 | +7.65% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Velocity Financial (VEL) report earnings?
Velocity Financial (VEL) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Velocity Financial (VEL) earnings time?
Velocity Financial (VEL) earnings time is at Jul 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is VEL EPS forecast?
VEL EPS forecast for the fiscal quarter 2026 (Q2) is 0.68.