loanDepot (LDI) investor relations material

Executive summary

• Strategic expansion into home equity lending drove a 25% increase in unit volume and 18% revenue growth sequentially, with improved operating leverage and a substantially narrowed net loss compared to the prior quarter.

• Home equity lending, less rate sensitive and more stable than traditional mortgage products, contributed to higher margins and lower production costs.

• Purchase market share increased 33% in the quarter, supported by growth in builder partnerships and retail branches, with purchase loans comprising 57% of total originations, up from 41% in the prior quarter.

• Technology and AI investments are enhancing lead conversion, reducing costs, and supporting scalable growth.

• Repurchased $16 million of senior notes at 90% of par during the quarter and an additional $27 million at 86% of par post quarter-end; monetized approximately $12 billion of servicing rights post quarter-end.

Financial highlights

• Loan origination volume rose to $8 billion, up 4% sequentially, with unit volume up 25% due to home equity product growth.

• Total revenue increased 18% quarter-over-quarter to $337.3 million; adjusted revenue up 3% to $308 million.

• Net loss narrowed to $6.6 million from $54.9 million in the prior quarter; adjusted net loss was $29 million, improved from $34 million.

• Adjusted EBITDA reached $20.5 million, up from $14.3 million sequentially.

• Pull-through weighted gain on sale margin increased to 3.45% from 2.71%, reflecting product mix shift to higher-margin HELOCs.

Outlook and guidance

• Q3 2026 origination volume expected between $6.25 billion and $8.25 billion; pull-through weighted lock volume guidance is $5.25 billion to $7.25 billion.

• Pull-through weighted gain on sale margin expected between 3.60% and 3.90%.

• Total expenses expected to decrease in Q3, aided by debt repurchases and productivity initiatives.

• Anticipates continued mix shift toward HELOCs, supporting higher unit volume and margins.

• Market conditions remain challenging due to limited housing supply and higher interest rates, impacting purchase and refinance demand.