loanDepot (LDI) Q4 2024 earnings summary

Executive summary

• Completed Vision 2025, resetting cost structure and organization, and returned to profitability in Q3 2024; launched Project Northstar and announced CEO transition with founder returning to executive leadership.

• Q4 2024 loan originations reached $7.2 billion, at the high end of guidance, with adjusted revenue of $267 million and total revenue of $257.5 million.

• Net loss for Q4 2024 was $67.5 million, with adjusted net loss of $47 million after excluding non-recurring items.

• Servicing portfolio UPB was $116.0 billion at year-end, reflecting retention of servicing on new originations.

• Expanded joint venture partnerships with Smith Douglas Homes and Onx Homes, and increased refinance activity as purchase mix declined to 58%.

Financial highlights

• Q4 2024 adjusted net loss was $47 million, compared to $27 million loss in Q4 2023, due to higher volume-related expenses despite higher revenues.

• Pull-through weighted rate lock volume was $5.6 billion, up 27% year-over-year; loan origination volume was $7.2 billion, up 34% year-over-year.

• Adjusted total revenue reached $267 million, up from $251 million in Q4 2023.

• Pull-through weighted gain on sale margin was 334 basis points, above guidance and up from 296 basis points last year.

• Servicing fee income for 2024 was $482 million, down from $493 million in 2023.

Outlook and guidance

• Q1 2025 origination volume expected between $4.5 billion and $5.5 billion; pull-through weighted lock volume guidance is $4.8 billion to $5.8 billion.

• Q1 2025 gain on sale margin expected between 320 and 340 basis points; total expenses projected to decline due to lower volume and G&A expenses.

• Guidance embeds normal seasonality and aims for share gains despite third-party estimates predicting a larger market decline.