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loanDepot, Inc. (LDI)
NYSE:LDI
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loanDepot
(NYSE:LDI)
Rating:48Neutral
Price Target:―
loanDepot (LDI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$570.75M
Dividend YieldN/A
Average Volume (3M)1.92M
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth6.60%
EPS Growth44.77%
CountryUS
Employees4,900
SectorFinancial
Sector Strength71
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)-0.01
Shares Outstanding111,009,800
10 Day Avg. Volume1,513,247
30 Day Avg. Volume1,918,031
Financial Highlights & Ratios
PEG Ratio0.24
Price to Book (P/B)1.39
Price to Sales (P/S)0.36
P/FCF Ratio-0.42
Enterprise Value/Market Cap7.82
Enterprise Value/Revenue3.86
Enterprise Value/Gross Profit4.12
Enterprise Value/Ebitda-406.17
Forecast
1Y Price Target
$1.33Price Target Upside-22.22% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering2
loanDepot Business Overview & Revenue Model
Company DescriptionloanDepot, 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 MoneyloanDepot generates revenue primarily through the origination and servicing of mortgage loans. The company earns income from loan origination fees, which are charged to borrowers at the initiation of a loan, and from selling the originated loans to investors in the secondary market. Additionally, loanDepot collects servicing fees for managing and processing payments on behalf of investors for the loans it retains on its balance sheet. Significant partnerships with financial institutions and government-sponsored enterprises such as Fannie Mae and Freddie Mac also play a crucial role in facilitating the company's ability to originate and sell a high volume of loans, thereby contributing to its revenue streams.
loanDepot Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: -1.72%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong growth in loan origination volume and revenue, along with effective cost management and a strong cash position. However, the company continues to face challenges with a net loss and the need to regain market share and efficiency through technology. New leadership appointments are expected to drive digital transformation and innovation.Q2-2025 Updates
Positive Updates
Increase in Loan Origination Volume
Loan origination volume increased by 30% from the prior quarter, reaching $6.7 billion, within the guidance of $5 billion to $7.5 billion.
Higher Adjusted Revenue
Adjusted total revenue increased to $292 million from $278 million in the first quarter of 2025.
Increase in Servicing Fee Income
Servicing fee income increased to $108 million from $104 million in the first quarter of 2025.
Reduction in Total Expenses
Total expenses decreased by $5 million or 2% from the prior quarter, benefiting from renegotiated vendor contracts and process improvements.
Strong Cash Position
Ended the quarter with $409 million in cash, increasing by $37 million since the first quarter.
New Leadership Appointments
Appointment of Chief Digital Officer Dominick Marchetti and Chief Innovation Officer Sean DeJulia to drive digital transformation and innovation.
Negative Updates
Continued Net Loss
Reported an adjusted net loss of $16 million in the second quarter, although improved from a $25 million loss in the first quarter of 2025.
Decrease in Gain on Sale Margin
Pull-through weighted gain on sale margin decreased to 330 basis points from 355 basis points in the prior quarter, reflecting a shift in product mix and channel mix.
Challenge of Achieving Scale
Acknowledgment of the need to achieve scale due to shrinking market share over the past few years and the focus on utilizing technology to increase efficiency.
Company Guidance
During loanDepot's Q2 2025 earnings call, the company provided guidance on several key metrics. The pull-through weighted rate lock volume was reported at $6.3 billion, marking a 17% increase from the prior quarter, with future guidance set between $5.25 billion and $7.25 billion. Origination volume rose by 30% to $6.7 billion, with future expectations ranging from $5 billion to $7 billion. The pull-through weighted gain on sale margin was 330 basis points, within the anticipated range of 300 to 350 basis points, and guidance for the third quarter remains within a similar range. The company reported an adjusted net loss of $16 million, an improvement from the previous quarter's loss of $25 million, attributed to increased lock volume and reduced expenses. Servicing fee income rose to $108 million, reflecting an increase in the unpaid principal balance of the servicing portfolio. The company ended the quarter with $409 million in cash, a $37 million increase from the first quarter. Looking forward, loanDepot aims to leverage technology and innovation to drive profitable market share growth and efficiency improvements, emphasizing the importance of achieving scale and enhancing the direct lending channel.loanDepot Financial Statement Overview
Summary
loanDepot faces significant financial challenges, with persistent net losses and negative cash flows impacting its overall financial health. While there have been improvements in revenue and debt reduction, the company struggles with profitability and liquidity. Strategic adjustments are necessary to enhance financial performance and stabilize cash flow.Income Statement
loanDepot has shown a fluctuating revenue trajectory with a recent increase in total revenue for 2024. However, the company has been experiencing consistent net losses over the past few years, with a significant net income decline in 2024. The EBIT margin has improved, yet the negative EBITDA for 2024 signifies financial challenges. The gross profit margin remains strong, but overall profitability is a concern.45
Neutral
Balance Sheet
The balance sheet shows improvements in stockholders' equity and a significant reduction in total debt, enhancing the company's equity ratio. However, the debt-to-equity ratio has benefited from reduced debt levels, but the overall equity position remains relatively weak compared to industry standards. The return on equity remains negative due to persistent net losses, indicating challenges in generating returns for shareholders.50
Neutral
Cash Flow
loanDepot's cash flow statement reveals negative operating and free cash flows, which indicate liquidity challenges. The free cash flow has significantly decreased in 2024, and the operating cash flow to net income ratio is unfavorable due to negative net income. The company needs to improve cash generation to ensure financial stability.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.16B | 1.05B | 971.62M | 1.78B | 5.01B | 4.34B |
| Gross Profit | 1.08B | 1.06B | 1.13B | 1.00B | 4.01B | 4.56B |
| EBITDA | -10.99M | 140.14M | 0.00 | -311.31M | 1.02B | 4.39B |
| Net Income | -85.97M | -98.33M | -110.14M | -273.02M | 113.52M | 2.01B |
Balance Sheet | ||||||
| Total Assets | 6.42B | 6.34B | 6.15B | 7.10B | 11.78B | 10.89B |
| Cash, Cash Equivalents and Short-Term Investments | 1.48B | 421.58M | 660.71M | 863.96M | 419.57M | 284.22M |
| Total Debt | 5.57B | 4.44B | 4.27B | 4.50B | 9.16B | 7.38B |
| Total Liabilities | 5.95B | 5.84B | 5.45B | 5.69B | 10.18B | 9.24B |
| Stockholders Equity | 261.57M | 272.89M | 353.18M | 921.47M | 523.56M | 1.66B |
Cash Flow | ||||||
| Free Cash Flow | -795.21M | -891.81M | -194.83M | 4.42B | -1.52B | -2.06B |
| Operating Cash Flow | -766.79M | -865.42M | -174.22M | 4.46B | -1.47B | -2.03B |
| Investing Cash Flow | 445.82M | 495.05M | 165.66M | 667.76M | 296.78M | -27.67M |
| Financing Cash Flow | -6.92M | 151.74M | -226.09M | -4.77B | 1.30B | 2.43B |
loanDepot Technical Analysis
Neutral
1.71
Price Trends
1.52
Positive
1.35
Positive
1.65
Positive
Market Momentum
0.07
Positive
52.08
Neutral
49.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDI, the sentiment is Neutral. The current price of 1.71 is below the 20-day moving average (MA) of 1.76, above the 50-day MA of 1.52, and above the 200-day MA of 1.65, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 52.08 is Neutral, neither overbought nor oversold. The STOCH value of 49.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LDI.
loanDepot Risk Analysis
loanDepot disclosed 68 risk factors in its most recent earnings report. loanDepot reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
An active, liquid trading market for our Class A Common Stock may not be sustained. Q4, 2024
2.
We use artificial intelligence in our business, and challenges with properly managing its use could result in harm to our brand, reputation, business or customers, and adversely affect our results of operations. Q4, 2024
3.
We are subject to laws, regulations, and guidelines regarding our use of telemarketing; failure to comply with these laws, rules, and guidelines, including the Telephone Consumer Protection Act ("TCPA") and the Telemarketing Sales Rule ("TSR"), could increase our operating costs and adversely impact our business. Q4, 2024
loanDepot Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $641.52M | 8.04 | 15.02% | ― | 35.12% | 25.28% | |
65 Neutral | £5.46B | 8.82 | 9.53% | 5.08% | 10.05% | -13.10% | |
64 Neutral | $5.07B | 13.60 | 10.05% | 1.22% | 20.77% | 96.22% | |
58 Neutral | $35.38B | 68.51 | >-0.01% | ― | 21.52% | -103.65% | |
57 Neutral | $1.25B | 51.33 | 2.12% | 2.50% | 34.62% | -7.94% | |
48 Neutral | $570.75M | ― | -23.67% | ― | 6.60% | 44.77% | |
48 Neutral | $7.21B | 37.74 | 8.18% | 8.85% | 12.27% | -21.43% |
* Financial Sector Average
Performance Comparison
LDI
loanDepot
1.71
-0.61
-26.29%
PFSI
PennyMac Financial
99.66
5.30
5.62%
VEL
Velocity Financial
17.90
-0.33
-1.81%
UWMC
UWM Holding
4.54
-3.14
-40.89%
RKT
Rocket Companies
17.11
0.42
2.52%
GHLD
Guild Holdings
20.05
3.62
22.03%
loanDepot Corporate Events
Business Operations and StrategyFinancial Disclosures
loanDepot Reports 9% Revenue Increase for 2024
Positive
Mar 11, 2025
On March 11, 2025, loanDepot announced its financial results for the fourth quarter and full year ending December 31, 2024. The company reported a 9% increase in annual revenue, reaching $1.06 billion, and a reduction in net losses compared to the previous year. Significant achievements included refinancing corporate debt, expanding joint venture partnerships, and improving operational productivity. Despite a net loss of $202 million for the year, loanDepot’s strategic initiatives under Vision 2025 and Project North Star are expected to position the company for future growth and profitability.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.