loanDepot's Q4 loss exceeded expectations, revenue fell short; stock price down 2%

Irvine, California - loanDepot, Inc. (NYSE:LDI) reported fourth-quarter results that fell short of analyst expectations, with revenue declining 4% to $310 million, below the market consensus of $371.17 million.

Following the earnings release, the stock dropped 2.3%.

The company reported a net loss of $0.10 per share, compared to the analyst estimate of a $0.02 loss per share. Revenue decreased from $323 million in the previous quarter but increased 20% year-over-year from $257 million.

The company issued guidance for Q1 2026, expecting loan originations between $6.75 billion and $7.75 billion, with a weighted average sales yield estimated between 270 and 300 basis points.

Despite missing revenue estimates, loanDepot achieved its highest quarterly loan origination volume since 2022, growing 23% to $8.04 billion. The company’s market share increased 19% quarter-over-quarter to 1.4%. However, the weighted average sales yield declined 15 basis points to 324 basis points, leading to lower revenue.

Founder and CEO Anthony Hsieh stated, “In the fourth quarter, our origination volume reached a new high since 2022, we gained market share in an expanding market, and achieved a 71% customer retention rate through our internal servicing platform.”

Expenses rose 3% to $342 million, primarily driven by personnel costs. Adjusted net loss was $21 million, compared to $3 million in the previous quarter. Adjusted EBITDA decreased from $49 million in Q3 to $29 million.

For the full year 2025, revenue grew 12% to $1.19 billion, with adjusted revenue up 10% to $1.21 billion. Net loss improved 47% to $108 million, from $202 million last year. Adjusted EBITDA increased 46% to $122 million, compared to $84 million in 2024.

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