loanDepot Announces Third Quarter 2026 Financial Results

Strategic expansion and continued productivity gains drive higher unit volume, stronger margins and improved operating efficiency despite rising interest rates and a challenging housing market.

Third Quarter 2026 Highlights:

• Origination volume declined 12% to $7.05 billion, while unit volume increased 7% from the second quarter of 2026, reflecting continued momentum in the Company’s expansion of home equity lending products.
• Revenue decreased 9% to $307 million and adjusted revenue decreased 2% to $302 million compared to the prior quarter, primarily due to lower origination income resulting from reduced mortgage volumes.
• Pull-through weighted gain on sale margin increased 54 basis points to 399 basis points, driven by deliberate shift toward higher-margin home equity loans.
• Operating leverage strengthened as expenses decreased by a greater amount than adjusted revenue, reflecting investment in productivity initiatives and benefits of a more efficient product mix.
• Impact of previously announced productivity initiatives increased from $12 million to $25 million of annualized cost savings expected to be realized through the remainder of 2026.
• Net loss of $29 million, compared with $7 million in the prior quarter.
• Adjusted net loss of $31 million, compared with $29 million in the prior quarter.
• Adjusted EBITDA of $17 million, compared with $20 million in the prior quarter.
• Repurchased $87 million of senior notes at an average purchase price of 88% of par.
• Completed the sale of $10 billion of Agency mortgage servicing rights (“MSRs”) and entered into an agreement to sell an additional $9 billion of Government MSRs, which closed in October.

IRVINE, Calif.--(BUSINESS WIRE)--$LDI #LDI--loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, “loanDepot” or the “Company”), today announced results for the third quarter ended September 30, 2026.

"Our third-quarter results demonstrate the progress we have made transforming loanDepot’s operating model over the last year, despite a significantly more challenging mortgage market throughout 2026,” said loanDepot Founder and Chief Executive Officer Anthony Hsieh. “While our third-quarter financial results were impacted by market conditions that became increasingly difficult compared to earlier in the year, the broader momentum in our business is clearly evident when viewed against where we were a year ago. Compared to the third quarter of 2025, we increased origination volume by 8%, grew unit volume by 33%, increased purchase volume by 10%, improved return on marketing by 14%, and reduced our cost to produce by 16%¹. These results reflect the success of our ongoing turnaround efforts to diversify revenue sources, improve operating efficiency, and strengthen our competitive position across market cycles.

Hsieh continued, "Our strategic expansion into home equity lending creates attractive growth opportunities by serving homeowners seeking access to liquidity while preserving their low-rate first mortgages. The rapid growth of this business reflects both the agility of our platform and the strength of our technology investments, which have enabled us to scale efficiently while delivering a seamless customer experience. Based on our analysis of publicly available industry data and internal estimates, we believe loanDepot ranked among the top three non-bank home equity lenders during the third quarter based on volume. This growth demonstrates the power of our Direct to Consumer channel, which we believe is one of only two scaled, branded, Fintech modeled, direct-to-consumer mortgage platforms in the marketplace. At the same time, we remain deeply committed to the purchase market, where we continue to expand our partnerships with homebuilders while also growing our retail loan officer sales force. Together, these investments led to a 9% gain in our purchase mortgage market share compared to a year ago. Finally, our productivity initiatives continue to deliver measurable results as we streamline operations through automation and technology-enabled efficiencies, including automated underwriting and digital closing technologies.

Hsieh concluded, “While elevated interest rates remain a headwind for mortgage demand, we believe the actions we have taken to diversify our product offerings, expand our purchase market presence, improve efficiency, strengthen margins, and optimize our balance sheet have positioned loanDepot to emerge from this cycle as a stronger and more competitive company. We remain focused on growing market share, improving profitability, and creating long-term value for our shareholders.”

"Despite persistent pressure on industry mortgage volumes from higher interest rates, we continued to make progress against our strategic priorities of improving operating efficiency, expanding revenue opportunities and strengthening the path toward sustainable profitability," said David Hayes, Chief Financial Officer. “We also continued to proactively manage liquidity and our balance sheet. During the quarter, we completed the sale of approximately $10 billion of Agency MSRs, and combined with the opportunistic repurchase of senior notes at a discount to par, these transactions contributed to a reduction in net debt obligations by approximately $114 million, strengthened our liquidity position and enhanced financial flexibility as we continue executing our long-term strategy. In October, we sold an additional $9 billion of Government MSRs.”

Hayes concluded, “We continue to actively work to address our upcoming debt maturities and are pursuing several financing alternatives to refinance or extend our debt with financing counterparties. Our focus is on extending our debt maturity profile.”

Third Quarter Highlights:

Financial Summary

Operational Highlights

• Non-volume² related expenses decreased $10.4 million from the second quarter of 2026, primarily reflecting lower servicing expense and other interest expense.
• Pull-through weighted lock volume was $5.6 billion for the third quarter of 2026, a decrease of $1.0 billion or 15% from the second quarter, primarily reflecting the Company’s strategic mix shift toward higher-margin HELOC production, which does not carry an associated interest rate lock.
• Loan origination volume for the third quarter of 2026 was $7.0 billion, a decrease of $945.9 million or 12% from the second quarter of 2026.
• Purchase volume totaled 61% of total loans originated during the third quarter, up from 57% during the second quarter of 2026.
• Our preliminary organic refinance consumer direct recapture rate³ decreased to 52% for the third quarter from the second quarter 2026’s recapture rate of 68%.

Outlook for the fourth quarter of 2026

• Pull-through weighted rate lock volume of between $3.25 billion and $5.25 billion.
• Origination volume of between $4.5 billion and $6.5 billion.
• Pull-through weighted gain on sale margin of between 425 basis points and 465 basis points.
• Gain on sale margin of between 315 basis points and 355 basis points.

Servicing

Balance Sheet Highlights

A decrease in loans held for sale at September 30, 2026, resulted in a corresponding decrease in the balance on our warehouse lines of credit. Total funding capacity with our lending partners was $4.4 billion at September 30, 2026 and June 30, 2026. Available borrowing capacity was $2.5 billion at September 30, 2026.

Consolidated Statements of Operations

Consolidated Balance Sheets

Loan Origination and Sales Data

Third Quarter Earnings Call

Management will host a conference call and live webcast today at 1:00 p.m. ET to discuss the Company’s financial and operational highlights followed by a question-and-answer session.

Register online at https://events.q4inc.com/attendee/498655934. A live audio webcast of the conference call will also be available via the Company's website, investors.loandepot.com, under the Events & Presentation tab. A replay of the webcast will be made available following the conclusion of the event.

For more information about loanDepot, please visit the Company’s Investor Relations website: investors.loandepot.com.

Non-GAAP Financial Measures

To provide investors with information in addition to our results as determined by GAAP, we disclose certain non-GAAP measures to assist investors in evaluating our financial results. We believe these non-GAAP measures provide useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. They facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations in hedging strategies, changes in valuations, capital structures (affecting interest expense on non-funding debt), taxation, the age and book depreciation of facilities (affecting relative depreciation expense), and other cost or benefit items which may vary for different companies for reasons unrelated to operating performance. These non-GAAP measures include our Adjusted Total Revenue, Adjusted Net Loss, Adjusted Diluted Weighted Average Shares Outstanding, and Adjusted EBITDA. We exclude from these non-GAAP financial measures the change in fair value of MSRs, gains (losses) from the sale of MSRs, the effects of contractual prepayment protection, broker fees associated with the sale of MSRs, and related hedging gains and losses that represent realized and unrealized adjustments resulting from changes in valuation, mostly due to changes in market interest rates, and are not indicative of the Company’s operating performance or results of operation. Beginning in the third quarter of 2026, we began to include the effects of contractual prepayment protection and broker fees associated with the sale of MSRs to appropriately capture all valuation changes in MSRs up to and including the sales date and broker fees as they are directly attributable to, and reduce, the consideration received on MSR sales to reflect the net value realized. Prior periods have been revised to conform with this new presentation. We have excluded expenses directly related to the cybersecurity incident in January 2024 that resulted from unauthorized access to our systems (the “Cybersecurity Incident”), net of insurance recoveries during fiscal 2024, such as costs to investigate and remediate the Cybersecurity Incident, the costs of customer notifications and identity protection, and professional fees, including legal expenses, settlement costs, and commission guarantees. We also exclude stock-based compensation expense, which is a non-cash expense, gains or losses on extinguishment of debt and disposal of fixed assets, and impairment charges to operating lease right-of-use assets, as well as certain costs associated with our restructuring efforts, as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA includes interest expense on funding facilities, which are recorded as a component of “net interest income,” as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest expense on our non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA. Adjustments for income taxes are made to reflect historical results of operations on the basis that it was taxed as a corporation under the Internal Revenue Code, and therefore subject to U.

Investor Relations Contact:
Gerhard Erdelji
Senior Vice President, Investor Relations
(949) 822-4074
gerdelji@loandepot.com

Media Contact:
Rebecca Anderson
Senior Vice President, Communications & Public Relations
(949) 822-4024
rebeccaanderson@loandepot.com