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Velocity Financial (VEL)
NYSE:VEL
Earnings Data
Report Date
Apr 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
0.64Last Year’s EPS
0.55Same Quarter Last Year
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents strong operational and financial momentum: record originations, portfolio growth, higher core net income, expanded securitization activity, improved liquidity and a transformative NPL sale that freed working capital. These positives substantially outweigh the manageable negatives — an elevated but improving NPL rate, a one-time-above-normal charge-off loss, notable valuation allowances on fair value loans, and higher funding costs. Management emphasized disciplined underwriting and robust capital markets execution while acknowledging macro interest-rate uncertainty.Company Guidance
Record Core Net Income and Pretax ROE
Core net income increased 52% year-over-year to $111,000,000, driving a record pretax return on equity of 26%.
Record Originations and Production Growth
Total originations reached a record $2,700,000,000 (up ~49% YoY per management), with full-year production of $2.7B and Q4 production of $634,000,000 (up ~12.5% YoY). Over 6,600 loans originated in 2025.
Portfolio Expansion and Strong Yields
Total loan portfolio grew to $6,500,000,000 UPB, a 28.4% increase versus prior year. Weighted average coupon on the total portfolio was 9.7% (up ~21 bps YoY); Q4 held-for-investment new originations had coupons just over 10%. Portfolio-related net interest margin remained healthy and stable at ~3.6% (portfolio NIM 3.61%, ~1.4% higher than 2024).
Capital Markets Execution and Improved Liquidity
Completed nine securitizations and ~$2.6B in new issuance during the year (Q4 securitizations totaled $646.3M). Issued first rated unsecured corporate debt of $500,000,000 (five-year fixed at 9.38%, rated by Fitch and Moody's) to diversify funding. End-of-year liquidity was approximately $117,000,000 (including $92,000,000 cash) with available warehouse capacity near $600,000,000.
Effective NPL Resolution and a Transformative Sale
Asset management resolved $331,000,000 in NPLs with net recoveries of $30,000,000 for the year. A Q4 sale of $129,000,000 UPB of NPLs generated $13,400,000 of net income and released approximately $50,000,000 of working capital while retaining servicing rights to the pool.
Book Value and EPS Improvements
Book value grew 21% year-over-year. Q4 core net income was $36,300,000, or $0.93 per share, up from $0.60 per share in Q4 2024, reflecting improved earnings power while maintaining margins and credit discipline.
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 |
|---|---|---|---|
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% |
May 01, 2025 | $17.85 | $17.12 | -4.09% |
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 Apr 30, 2026, Before Open (Confirmed).
What is Velocity Financial (VEL) earnings time?
Velocity Financial (VEL) earnings time is at Apr 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 (Q1) is 0.64.