loanDepot (LDI) AI Stock Analysis

• Market Cap: $654.38M
• Dividend Yield: N/A
• Average Volume (3M): 2.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: 3.91%
• EPS Growth: 27.78%
• Country: US
• Employees: 4,900
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): -0.06
• Shares Outstanding: 228,569,600
• 10 Day Avg. Volume: 3,022,064
• 30 Day Avg. Volume: 2,631,337
• PEG Ratio: 0.16
• Price to Book (P/B): 1.13
• Price to Sales (P/S): 0.28
• P/FCF Ratio: -0.59
• Enterprise Value/Market Cap: 7.98
• Enterprise Value/Revenue: 3.90
• Enterprise Value/Gross Profit: 4.97
• Enterprise Value/Ebitda: -2.48K
• 1Y Price Target: $2.40
• Price Target Upside: 53.85% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.15
• Revenue Forecast (FY): $1.46B

• Rating: 46 Neutral
• Price Target: $1.50 ▼(-3.85% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

LDI scores low mainly due to high leverage and ongoing cash burn despite improving operating performance, which elevates liquidity and refinancing sensitivity risk. Technicals also remain bearish with the price below key moving averages and negative MACD. The earnings call adds some support via improving volumes and reduced full-year losses, but near-term margin and expense headwinds and declining cash keep the overall score subdued.

Positive Factors

Origination Scale

A sharp origination rebound to $8.0B in Q4 (+23% q/q) demonstrates restored distribution and capacity. Sustained higher volumes support diversified revenue streams and market share gains, improving the firm's ability to generate originations-driven revenue over the coming quarters.

Servicing Recapture

A 71% servicing recapture rate indicates strong customer retention and an expanding servicing portfolio that generates recurring fee income. Recapture reduces acquisition costs and creates durable, annuity-like cash flows that stabilize revenue and margins over a multi-quarter horizon.

Efficiency & EBITDA Progress

Material adjusted EBITDA improvement and management's digital/AI investments point to operating leverage and lower unit costs. These scalable efficiency gains can sustainably improve margins and cash conversion if volume trends persist and tech-driven cost savings continue to compound.

Negative Factors

High Leverage

Very high leverage (~13x debt/equity) sharply limits financial flexibility and raises refinancing and interest-rate sensitivity. Over months this amplifies earnings volatility and constrains strategic options, likely forcing priority on deleveraging or external funding over growth investments.

Weak Cash Generation

Consistent negative operating and free cash flow, combined with a $122M quarterly cash decline to $337M, creates reliance on external funding. With a leveraged balance sheet, persistent cash burn increases liquidity and rollover risk and limits capacity to sustain investments or absorb shocks.

Margin Pressure & MSR Amortization

Compression in gain-on-sale margins and a higher MSR amortization run-rate raise ongoing expense pressure. Management's mix shift toward larger refinance balances and Q1 margin guidance below Q4 suggest persistent margin headwinds that could cap sustainable profitability absent structural margin recovery.

loanDepot Business Overview & Revenue Model

Company Description

loanDepot, Inc. engages in originating, financing, selling, and servicing residential mortgage loans in the United States. It offers conventional agency-conforming and prime jumbo, federal assistance residential mortgage, and home equity loans. The company also provides settlement services, which include captive title and escrow business; real estate services that cover captive real estate referral business; and insurance services, including services to homeowners, as well as other consumer insurance policies. The company was founded in 2010 and is headquartered in Foothill Ranch, California.

How the Company Makes Money

loanDepot generates revenue primarily through the origination and sale of mortgage loans. When customers take out a loan, the company earns origination fees, which are charged at the time of closing the loan. Additionally, loanDepot profits from the sale of loans in the secondary mortgage market, where they can sell the loans to investors or government-sponsored enterprises. The company also earns interest income from servicing loans over their lifespan, as they manage the ongoing payments and customer interactions. Significant partnerships with financial institutions and real estate agencies further bolster their revenue streams by driving more loan applications through their platform.

loanDepot Financial Statement Overview

Summary

2025 shows a clear operational rebound (revenue up ~27% YoY and operating profit turning positive), but the company still posted a net loss. The balance sheet is the key drag with very high leverage (debt-to-equity ~13x), and cash flow remains a major concern with deeply negative operating and free cash flow in 2025, indicating ongoing cash burn and funding risk.

Income Statement

Revenue rebounded strongly in 2025 (up ~27% year over year) and profitability improved materially, with operating profit turning positive and solid gross and operating margins. However, the company still reported a net loss in 2025, and the multi-year backdrop shows meaningful volatility with steep revenue declines and sizable losses in 2022–2024. Overall, the income statement shows a clear near-term recovery, but not yet consistent bottom-line profitability.

Balance Sheet

Leverage remains very high, with debt far exceeding equity in 2025 (debt-to-equity ~13x), which limits financial flexibility and raises refinancing/earnings sensitivity risk. Equity is relatively small versus the asset base, and returns on equity have been negative for most of the recent period, reflecting ongoing losses. While assets are sizable, the capital structure is the key weakness and is the main constraint on the balance sheet score.

Cash Flow

Cash generation is a major pressure point: both operating cash flow and free cash flow were deeply negative in 2025, following negative results again in 2023–2024 and 2020–2021. Although 2022 showed a large positive cash flow swing, the overall pattern is inconsistent and the most recent year indicates cash burn, which can increase reliance on external funding given the already leveraged balance sheet.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.54B	1.12B	1.04B	1.41B	3.76B
Gross Profit	1.36B	787.45M	731.09M	1.00B	3.45B
EBITDA	229.43M	-195.73M	-222.88M	-627.01M	724.67M
Net Income	-62.65M	-98.33M	-110.14M	-273.02M	113.52M
Balance Sheet
Total Assets	6.86B	6.34B	6.15B	6.61B	11.81B
Cash, Cash Equivalents and Short-Term Investments	337.23M	421.58M	660.71M	863.96M	419.57M
Total Debt	5.04B	5.43B	4.98B	5.13B	9.52B
Total Liabilities	6.47B	5.84B	5.45B	5.69B	10.18B
Stockholders Equity	386.01M	272.89M	353.18M	433.50M	523.56M
Cash Flow
Free Cash Flow	-734.61M	-891.81M	-194.83M	4.42B	-1.52B
Operating Cash Flow	-707.51M	-865.42M	-174.22M	4.46B	-1.47B
Investing Cash Flow	14.51M	495.05M	165.66M	667.76M	296.78M
Financing Cash Flow	566.80M	151.74M	-226.09M	-4.77B	1.30B

loanDepot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDI, the sentiment is Negative. The current price of 1.56 is below the 20-day moving average (MA) of 1.85, below the 50-day MA of 2.18, and below the 200-day MA of 2.32, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 28.08 is Positive, neither overbought nor oversold. The STOCH value of 3.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LDI.

loanDepot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PFSI	54 Neutral	$4.55B	16.04	12.18%	0.90%	25.42%	190.85%
RKT	52 Neutral	$40.13B	-376.48	-0.68%	―	22.56%	―
UWMC	49 Neutral	$5.90B	33.82	15.25%	8.64%	-8.66%	―
LDI	46 Neutral	$654.38M	-6.97	-24.39%	―	3.91%	27.78%

loanDepot Corporate Events

loanDepot reports 2025 results with higher revenue, lower losses

loanDepot reported its year-end and fourth-quarter 2025 results on March 10, 2026, highlighting a 12% rise in full-year revenue to $1.19 billion and a 10% increase in adjusted revenue to $1.21 billion as higher pull-through weighted lock volumes and margins helped narrow its net loss. Full-year expenses edged up just 1% to $1.31 billion, contributing to a 47% reduction in net loss to $108 million and a 31% improvement in adjusted net loss to $66 million, while adjusted EBITDA climbed 46% to $122 million, underscoring the benefits of technology and efficiency investments.

In the fourth quarter, the lender posted its highest quarterly loan origination volume since 2022 at $8.04 billion and expanded market share 19% to 1.4%, even as revenue slipped 4% sequentially to $310 million and pull-through weighted gain-on-sale margin compressed to 3.24%. The period saw expenses rise 3% to $342 million and net loss widen to $33 million, while cash fell to $337 million from $459 million after investing in loan inventory and fully repaying 2025 unsecured notes, as management emphasized ongoing efforts to harness automation and AI-driven digital capabilities to capture share in a consolidating yet fragmented mortgage market.

The most recent analyst rating on (LDI) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on loanDepot stock, see the LDI Stock Forecast page.

loanDepot Simplifies Capital Structure With Share Class Conversion

On February 11, 2026, loanDepot, Inc. completed the automatic conversion of all outstanding shares of its Class C and Class D common stock into Class B and Class A common stock, respectively, pursuant to its Amended and Restated Certificate of Incorporation dated February 11, 2021. Following the conversion, the company reported 228,569,593 Class A shares and 106,207,433 Class B shares outstanding, with no remaining Class C or Class D shares, consolidating its equity structure while maintaining one-vote-per-share rights for holders of Class A and Class B stock on all general stockholder matters.

The most recent analyst rating on (LDI) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on loanDepot stock, see the LDI Stock Forecast page.