loanDepot, Inc. (LDI): Results of Operations and Financial Condition
loanDepot, Inc. (LDI) filed an SEC Form 8-K — Results of Operations and Financial Condition. 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
How this was made
The 30-second read
Why it matters
Earnings miss and loss may trigger short‑term sell‑off, but balance‑sheet actions could mitigate longer‑term risk.
Market read
Q3 results provide fresh data on loanDepot's performance and liquidity actions, influencing its stock and the broader non‑bank mortgage sector.
What to watch
Productivity initiatives delivering $25M cost savings may boost margins later in the year.
loanDepot Q3 2026: net loss widened to $(28,686) thousand on lower revenue, while gain on sale margin rose and home equity mix grew
Origination volume was up 8% year over year and unit volume up 33%, and pull-through weighted gain on sale margin rose to 3.99%. Revenue fell 9% sequentially, the net loss widened from $(6,622) thousand to $(28,686) thousand, adjusted EBITDA fell to $16,917 thousand from $20,268 thousand, and total equity declined to $310,914 thousand.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Rate lock volume, Q3 2026other | $7.52B | – | – |
| Pull-through weighted lock volume, Q3 2026other | $5.61B | decrease of $1.0 billion or 15% | – |
| Loan origination volume, Q3 2026other | $7.05B | decrease of $945.9 million or 12% | +8% |
| Gain on sale margin, Q3 2026other | 3.18% | – | – |
| Pull-through weighted gain on sale margin, Q3 2026other | 3.99% | increase of 54 basis points | – |
| Total revenue, Q3 2026GAAP | $307.1M | decrease of 9% | – |
| Adjusted total revenue, Q3 2026non-GAAP | $302.2M | decrease of 2% | – |
| Net interest income, Q3 2026GAAP | $2.96M | – | – |
| Gain on origination and sale of loans, net, Q3 2026GAAP | $159.4M | – | – |
| Origination income, net, Q3 2026GAAP | $64.61M | – | – |
| Servicing fee income, Q3 2026GAAP | $112.7M | – | – |
| Change in fair value of servicing rights, net, Q3 2026GAAP | −$37.51M | – | – |
| Other income, Q3 2026GAAP | $5.05M | – | – |
| Total expenses, Q3 2026GAAP | $335.7M | – | – |
| Personnel expense, Q3 2026GAAP | $171.5M | – | – |
| Marketing and advertising expense, Q3 2026GAAP | $27.72M | – | – |
| Direct origination expense, Q3 2026GAAP | $34.57M | – | – |
| General and administrative expense, Q3 2026GAAP | $44.77M | – | – |
| Depreciation and amortization, Q3 2026GAAP | $5.83M | – | – |
| Servicing expense, Q3 2026GAAP | $8.55M | – | – |
| Other interest expense, Q3 2026GAAP | $37.98M | – | – |
| Loss before income taxes, Q3 2026GAAP | −$28.60M | – | – |
| Income tax expense (benefit), Q3 2026GAAP | $90K | – | – |
| Net loss, Q3 2026GAAP | −$28.69M | – | – |
| Net loss attributable to loanDepot, Inc., Q3 2026GAAP | −$19.73M | – | – |
| Diluted loss per share, Q3 2026GAAP | $(0.08) | – | – |
| Adjusted net loss, Q3 2026non-GAAP | −$30.83M | – | – |
| Adjusted EBITDA, Q3 2026non-GAAP | $16.92M | – | – |
| Total revenue, nine months 2026GAAP | $930.9M | – | – |
| Total expenses, nine months 2026GAAP | $1.02B | – | – |
| Net loss, nine months 2026GAAP | −$90.25M | – | – |
| Diluted loss per share, nine months 2026GAAP | $(0.27) | – | – |
| Adjusted total revenue, nine months 2026non-GAAP | $908.9M | – | – |
| Adjusted net loss, nine months 2026non-GAAP | −$93.82M | – | – |
| Adjusted EBITDA, nine months 2026non-GAAP | $51.55M | – | – |
| Loan origination volume, nine months 2026other | $22.70B | – | – |
| Gain on sale margin, nine months 2026other | 2.98% | – | – |
| Pull-through weighted gain on sale margin, nine months 2026other | 3.30% | – | – |
| Cash and cash equivalents, Sep 30, 2026GAAP | $214.4M | -6.4% | -53.3% |
| Total assets, Sep 30, 2026GAAP | $6.16B | -8.0% | -1.3% |
| Debt obligations, net, Sep 30, 2026GAAP | $2.02B | – | – |
| Total equity, Sep 30, 2026GAAP | $310.9M | -6.6% | -28.2% |
Q4 2026 outlook
- NotePull-through weighted rate lock volume of between $3.25 billion and $5.25 billion
- NoteOrigination volume of between $4.5 billion and $6.5 billion
- NotePull-through weighted gain on sale margin of between 425 basis points and 465 basis points
- NoteGain on sale margin of between 315 basis points and 355 basis points
Capital returns
- The company repurchased $87 million of senior notes at an average purchase price of 88% of par during the quarter.
- The company reports a gain on extinguishment of debt of $(4,122) thousand in Q3 2026 in its adjusted net loss reconciliation (Q2 2026: $(1,170) thousand).
- The release does not report share repurchases or dividends for the quarter.
What drove it
- Revenue decreased 9% from the prior quarter, which the company attributes primarily to lower origination income resulting from reduced mortgage volumes.
- The company attributes the pull-through weighted gain on sale margin increase to a deliberate shift toward higher-margin home equity loans.
- The company states that operating leverage strengthened because expenses decreased by a greater amount than adjusted revenue, reflecting investment in productivity initiatives and benefits of a more efficient product mix.
- The company states that productivity initiatives impact increased from $12 million to $25 million of annualized cost savings expected to be realized through the remainder of 2026.
- Non-volume related expenses decreased $10.4 million from the second quarter, primarily reflecting lower servicing expense and other interest expense, according to the release.
- The company attributes the pull-through weighted lock volume decline of 15% to its strategic mix shift toward higher-margin HELOC production, which does not carry an associated interest rate lock.
- Purchase volume was 61% of total loans originated in Q3 2026, up from 57% in Q2 2026.
- Total expenses decreased from $343,938 thousand to $335,741 thousand, while personnel expense decreased from $180,729 thousand to $171,507 thousand and direct origination expense increased from $27,840 thousand to $34,572 thousand.
Concerns
- Net loss widened to $(28,686) thousand from $(6,622) thousand in the prior quarter, and the nine-month net loss was $(90,250) thousand against $(74,704) thousand a year earlier.
- Adjusted EBITDA was $16,917 thousand, down from $20,268 thousand in the prior quarter and $48,998 thousand a year earlier.
- Total equity fell to $310,914 thousand from $333,046 thousand in the prior quarter and $433,310 thousand a year earlier.
- The company's Q3 2026 preliminary organic refinance consumer direct recapture rate decreased to 52% from 68% in Q2 2026.
- 60+ days delinquent servicing balances rose to $2,371,572 thousand, a 10.7% increase from the prior quarter.
- Cash and cash equivalents were $214,413 thousand, down 53.3% from $459,161 thousand a year earlier.
- The company states it continues to work to address upcoming debt maturities and is pursuing several financing alternatives to refinance or extend its debt.
- The forward-looking statements list includes the company's ability to regain and maintain compliance with the continued listing standards of the New York Stock Exchange.
What to watch
- Q4 2026 guidance: pull-through weighted rate lock volume of $3.25 billion to $5.25 billion and origination volume of $4.5 billion to $6.5 billion, against Q3 2026 actuals of $5,607,089 thousand and $7,047,829 thousand.
- Q4 2026 gain on sale margin guidance of 315 to 355 basis points and pull-through weighted gain on sale margin guidance of 425 to 465 basis points, against Q3 2026 actuals of 3.18% and 3.99%.
- Progress on refinancing or extending the company's debt maturities, which the CFO described as the focus.
- Whether the Q3 2026 productivity savings, now $25 million annualized, carry into adjusted EBITDA.
- The October sale of $9 billion of Government MSRs and its effect on servicing revenue and liquidity.
- Recapture rate and 60+ day delinquency trends in the servicing portfolio.
Balance sheet and cash flow
- The company completed the sale of approximately $10 billion of Agency MSRs during the quarter and entered into an agreement to sell an additional $9 billion of Government MSRs, which closed in October.
- The company states that these transactions, combined with the senior notes repurchase, contributed to a reduction in net debt obligations of approximately $114 million.
- Loans held for sale were $1,979,288 thousand at Sep 30, 2026, against $2,643,032 thousand at Jun 30, 2026 and $2,606,361 thousand at Sep 30, 2025. Warehouse and other lines of credit were $1,851,744 thousand, against $2,443,802 thousand at Jun 30, 2026.
- Total funding capacity with lending partners was $4.4 billion at Sep 30, 2026 and Jun 30, 2026. Available borrowing capacity was $2.5 billion at Sep 30, 2026.
- Servicing portfolio unpaid principal balance was $115,791,359 thousand at Sep 30, 2026, down 6.2% from Jun 30, 2026 and down 2.1% from Sep 30, 2025. 60+ days delinquent balances were $2,371,572 thousand, or 2.0% of the portfolio, up 10.7% from Jun 30, 2026 and up 38.2% from Sep 30, 2025.
- Servicing rights at fair value were $1,702,970 thousand in the servicing rollforward and $1,725,465 thousand on the balance sheet, a difference the release does not explain.
- Restricted cash was $119,126 thousand at Sep 30, 2026, against $70,717 thousand at Jun 30, 2026.
Analysis
loanDepot reported a Q3 2026 net loss of $(28,686) thousand, against $(6,622) thousand in Q2 2026 and $(8,734) thousand in Q3 2025. Total revenue was $307,145 thousand, down 9% from the prior quarter and below the $323,324 thousand reported a year earlier. Adjusted total revenue was $302,208 thousand, down 2% sequentially. The company attributes the revenue decline primarily to lower origination income from reduced mortgage volumes. Total expenses fell to $335,741 thousand from $343,938 thousand, and the company states that expenses fell by more than adjusted revenue, which it credits to productivity initiatives and product mix.
Volume and mix shifted during the quarter. Loan origination volume was $7,047,829 thousand, down 12% from Q2 2026 but up 8% from Q3 2025 as stated by the CEO. Pull-through weighted lock volume fell 15% sequentially to $5,607,089 thousand, which the company says reflects its mix shift toward HELOC production, a product that carries no interest rate lock. Purchase volume was 61% of originations, up from 57%. The pull-through weighted gain on sale margin rose 54 basis points to 3.99%, which the company attributes to the shift toward higher-margin home equity loans. The gain on sale margin itself was 3.18%, up from 2.86% but below the 3.61% printed for Q3 2025.
Profitability weakened on a GAAP and non-GAAP basis. Adjusted EBITDA fell to $16,917 thousand from $20,268 thousand in Q2 2026 and $48,998 thousand a year earlier. Adjusted net loss was $(30,829) thousand, against $(2,688) thousand in Q3 2025. Personnel expense fell to $171,507 thousand from $180,729 thousand, while direct origination expense rose to $34,572 thousand from $27,840 thousand. Change in fair value of servicing rights, net, was $(37,511) thousand, and the release reports hedging-related losses in a separate line of $(74,105) thousand within the servicing rights table. The release does not explain the causes of the full-year servicing swings beyond the reconciliation tables.
The balance sheet contracted. Total assets were $6,163,751 thousand, down 8.0% sequentially, and total equity was $310,914 thousand, down 6.6% sequentially and 28.2% year over year. Cash was $214,413 thousand. Debt obligations, net, were $2,016,069 thousand, against $2,130,204 thousand in Q2 2026, and the company repurchased $87 million of senior notes at 88% of par. The company completed the sale of about $10 billion of Agency MSRs and says that these transactions and the note repurchase reduced net debt obligations by about $114 million. A further $9 billion of Government MSRs was sold in October. The release does not report a prior-year debt figure, so that comparison cannot be made from the document.
The Q4 2026 outlook calls for pull-through weighted lock volume of $3.25 billion to $5.25 billion, origination volume of $4.5 billion to $6.5 billion, pull-through weighted gain on sale margin of 425 to 465 basis points, and gain on sale margin of 315 to 355 basis points. No prior-quarter outlook was provided, so the release cannot be checked against earlier guidance. The servicing portfolio fell 6.2% sequentially to $115,791,359 thousand, while 60+ day delinquencies rose 10.7% to $2,371,572 thousand, and the preliminary organic refinance recapture rate fell to 52% from 68%. These figures are the points to weigh against the guided Q4 volume range.
Management, verbatim
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,
Anthony Hsieh, Founder and Chief Executive Officer
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.
David Hayes, Chief Financial Officer
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.
Anthony Hsieh, Founder and Chief Executive Officer
Not in the filing
stated, not guessed- No segment revenue disclosure is presented; the release breaks revenue into line items only, which are reported in key_metrics.
- Prior-year debt obligations, net, at Sep 30, 2025 are not printed.
- Year-over-year and sequential percentage changes are not printed for most income statement lines, and no prior-year or prior-quarter comparison was calculated.
- Prior-year and prior-quarter figures for the nine-month period comparisons are not applicable as printed, so those fields are null.
- No consensus estimates, analyst expectations or share price reaction are included in the document.
- No prior-period outlook was provided, so vs_prior_guidance is empty.
- Q4 2026 guidance for total revenue, operating expenses, gross margin and tax rate is not provided.
- The release does not report share repurchases, dividends or free cash flow.
- The release does not explain the difference between servicing rights at fair value in the rollforward ($1,702,970 thousand) and on the balance sheet ($1,725,465 thousand).
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
loanDepot is a non‑bank mortgage lender navigating a high‑interest‑rate environment.
Ticker impact
loanDepot disclosed Q3 2026 results with a net loss of $29M, revenue down 9% and a $10B sale of agency MSRs.
likely downward pressure as investors price in lower revenue and net loss.
Revenue decline and net loss signal earnings weakness, while the MSR sale provides modest liquidity but does not offset earnings disappointment.
Market effects
home‑equity lending sector faces pressure from higher rates and reduced mortgage volumes.
U.S. mortgage market outlook may soften, affecting related lenders.
Limited; primarily U.S. residential finance market.
Counterpoint
The $10B MSR sale could improve balance‑sheet flexibility and support a turnaround.
Key entities
- ExecutiveAnthony Hsieh
Founder and CEO of loanDepot
- ExecutiveDavid Hayes
Chief Financial Officer of loanDepot
