second quarter 2026
Filed Aug 4, 2026Strategic expansion into home equity drove unit volume growth of 25%, and revenue growth of 18%, improved operating leverage and substantially narrowed the quarterly loss compared to prior quarter.
Revenue, origination volume, pull-through weighted gain on sale margin and adjusted EBITDA improved from the first quarter, while the GAAP net loss narrowed substantially. The company remains loss-making on both a GAAP and adjusted basis, and third-quarter volume guidance is presented as a broad range.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Rate lock volumeother | $ 8,994,216 ($ in thousands) | – | – |
| Pull-through weighted lock volumeother | 6,632,371 ($ in thousands) | decrease of $1.6 billion or 20% | – |
| Loan origination volumeother | 7,993,712 ($ in thousands) | increase of $335.1 million or 4% | – |
| Gain on sale marginother | 2.86 % | – | – |
| Pull-through weighted gain on sale marginother | 3.45 % | increased 74 basis points | – |
| Total revenueGAAP | $ 337,321 ($ in thousands) | 18% | – |
| Total expenseGAAP | 343,938 ($ in thousands) | increased less than 1% | – |
| Net lossGAAP | (6,622) ($ in thousands) | – | – |
| Diluted loss per shareGAAP | $ (0.02) | – | – |
| Adjusted total revenuenon-GAAP | $ 307,551 ($ in thousands) | 3% | – |
| Adjusted net lossnon-GAAP | (29,226) ($ in thousands) | – | – |
| Adjusted EBITDAnon-GAAP | 20,478 ($ in thousands) | – | – |
| Non-volume related expensesother | decreased $6.4 million | decreased $6.4 million | – |
| Purchase volume as a percentage of total loans originatedother | 57% | – | – |
| Preliminary organic refinance consumer direct recapture rateother | 68% | decreased to 68% | – |
| Return on marketingother | increased 70% | – | increased 70% from the second quarter of 2025 |
| Cost-per-funded loanother | decreased 12% | – | decreased 12% from the second quarter of 2025 |
| Due to collection/realization of cash flows, servicing revenue dataother | $ (49,538) ($ in thousands) | – | – |
| Due to changes in valuation inputs or assumptions, servicing revenue dataother | 36,677 ($ in thousands) | – | – |
| Realized losses on sale of servicing rightsother | (588) ($ in thousands) | – | – |
| Net loss from derivatives hedging servicing rightsother | (6,319) ($ in thousands) | – | – |
| Changes in fair value of servicing rights, net of hedging gains and lossesother | 29,770 ($ in thousands) | – | – |
| Other realized gains on sales of servicing rightsother | 210 ($ in thousands) | – | – |
| Changes in fair value of servicing rights, netother | $ (19,558) ($ in thousands) | – | – |
| Servicing fee incomeother | $ 111,964 ($ in thousands) | – | – |
| Servicing rights balance at beginning of period, at fair valueother | $ 1,669,648 ($ in thousands) | – | – |
| Servicing rights additions, at fair valueother | 98,335 ($ in thousands) | – | – |
| Servicing rights sales proceeds, at fair valueother | (2,991) ($ in thousands) | – | – |
| Total changes in fair value of servicing rightsother | (13,449) ($ in thousands) | – | – |
| Servicing rights balance at end of period, at fair valueother | $ 1,751,543 ($ in thousands) | – | – |
| Servicing rights liabilityother | $28.3 million | – | – |
| Annualized productivity initiativesother | approximately $12 million | – | – |
third quarter of 2026 outlook
- NoteOrigination volume of between $6.25 billion and $8.25 billion.
- NotePull-through weighted rate lock volume of between $5.25 billion and $7.25 billion.
- NotePull-through weighted gain on sale margin of between 360 basis points and 390 basis points.
Capital returns
- Repurchased $16 million of senior notes at an average purchase price of 90% of par during the quarter.
- Repurchased an additional $27 million of notes at an average purchase price of 86% of par post quarter end through July 30, 2026.
What drove it
- The strategic expansion into home equity lending through the 5X5 HomeLoan product drove unit volume growth.
- Higher origination income and servicing revenue primarily drove the increase in revenue from the prior quarter.
- The deliberate mix shift toward higher-margin home equity and government loans supported the increase in pull-through weighted gain on sale margin.
- Lower salary-related costs, servicing expense, and other interest expense primarily drove the decrease in non-volume related expenses.
- Purchase volume increased to 57% of total loans originated from 41% in the first quarter of 2026.
Concerns
- The company reported a GAAP net loss of (6,622) ($ in thousands) and an adjusted net loss of (29,226) ($ in thousands).
- Pull-through weighted lock volume decreased $1.6 billion or 20% from the first quarter, primarily reflecting the strategic shift toward HELOC production that does not carry an associated interest rate lock.
- The preliminary organic refinance consumer direct recapture rate decreased to 68% from 73% in the first quarter of 2026.
- Management stated that addressing the Company’s bond maturities remains a high priority and that it is evaluating a range of options with retained advisors.
What to watch
- Execution of approximately $12 million of annualized productivity initiatives progressing through the remainder of the year.
- Third-quarter origination volume guidance of between $6.25 billion and $8.25 billion.
- Third-quarter pull-through weighted gain on sale margin guidance of between 360 basis points and 390 basis points.
- Progress in monetizing servicing rights and optimizing the capital structure, including options to address bond maturities.
- The finalized organic refinance consumer direct recapture rate, which management said is finalized following publication when external data becomes available.
Balance sheet and cash flow
- Servicing rights balance at end of period was $ 1,751,543 ($ in thousands), net of $28.3 million of servicing rights liability as of June 30, 2026.
- Monetized approximately $10 billion of servicing rights after quarter end.
Analysis
loanDepot reported improved sequential operating performance in the second quarter ended June 30, 2026. Total revenue was $ 337,321 ($ in thousands), versus $ 286,387 ($ in thousands) in the first quarter, while loan origination volume increased to 7,993,712 ($ in thousands) from 7,658,619 ($ in thousands). The company attributed the volume expansion to its strategic move into home equity lending, while purchase volume represented 57% of total loans originated, compared with 41% in the prior quarter.
The product mix shift supported profitability metrics. Pull-through weighted gain on sale margin increased 74 basis points to 3.45 %, and adjusted EBITDA increased to 20,478 ($ in thousands) from 14,305 ($ in thousands). Total expense rose to 343,938 ($ in thousands) from 341,500 ($ in thousands), described as an increase of less than 1%, while non-volume related expenses decreased $6.4 million. The company also reported a 70% increase in return on marketing and a 12% decrease in cost-per-funded loan from the second quarter of 2025.
The GAAP net loss narrowed materially to (6,622) ($ in thousands) from (54,942) ($ in thousands) in the first quarter, although adjusted net loss remained (29,226) ($ in thousands). Servicing fee income increased to $ 111,964 ($ in thousands) from $ 108,749 ($ in thousands), and the servicing rights balance at end of period increased to $ 1,751,543 ($ in thousands) from $ 1,669,648 ($ in thousands). Pull-through weighted lock volume declined 20% from the prior quarter, which management linked to greater HELOC production because those loans do not carry associated interest rate locks.
Capital structure actions were a central feature of the release. The company repurchased $16 million of senior notes during the quarter and a further $27 million post quarter end through July 30, 2026. Management also said it monetized approximately $10 billion of servicing rights after quarter end and continues to assess options related to bond maturities. For the third quarter, loanDepot guided to origination volume of between $6.25 billion and $8.25 billion, pull-through weighted rate lock volume of between $5.25 billion and $7.25 billion, and pull-through weighted gain on sale margin of between 360 basis points and 390 basis points.
Management, verbatim
We have moved decisively to reshape the business for profitable market share growth in any macro environment and are starting to see the signs of our progress: we are making more loans, faster and at a lower cost.
Anthony Hsieh, Founder and Chief Executive Officer
The second quarter represented another meaningful step forward in our financial performance and showed that we can increase funded volume while maintaining disciplined expense management and a clear focus on profitability.
David Hayes, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-period outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- GAAP gross profit and gross margin were not reported.
- GAAP operating income or loss and operating margin were not reported.
- GAAP net income or loss attributable to common stockholders was not separately reported.
- Non-GAAP diluted earnings or loss per share was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash and cash equivalents were not reported.
- Total debt and debt maturity amounts were not reported.
- Revenue by operating segment was not reported.
- Third-quarter revenue, gross margin, operating expense and tax-rate guidance were not reported.
- The servicing portfolio data table was truncated before its metrics were provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.