loanDepot Inc (NYSE:LDI) Tops Q3 2025 Revenue Estimates and Narrows Loss
By Mill Chart
Last update: Nov 7, 2025
loanDepot Inc - Class A (NYSE:LDI) reported financial results for the third quarter of 2025, delivering a performance that notably surpassed analyst expectations on the top line while narrowing its net loss significantly from the previous quarter. The mortgage lender's latest earnings reveal a company in the midst of a strategic turnaround, demonstrating improved operational efficiency and cost discipline in a challenging housing market.
Earnings and Revenue Versus Estimates
The company's third-quarter financial results presented a mixed but generally positive picture relative to Wall Street forecasts. loanDepot exceeded revenue expectations while its loss per share was slightly better than anticipated.
- Revenue: The company reported total revenue of $323.3 million for the third quarter, surpassing analyst estimates of $316.1 million.
- Earnings Per Share: loanDepot posted a net loss of $8.7 million, or a loss of $0.02 per share. On an adjusted basis, which excludes certain one-time items, the net loss was $2.8 million, or a loss of $0.01 per share. This narrowly beat the analyst estimate for an adjusted EPS loss of $0.0135.
This outperformance on revenue was primarily fueled by a 10% quarter-over-quarter increase in pull-through weighted lock volume, which reached $7.0 billion, alongside improved gain-on-sale margins.
Market Reaction and Price Action
The market responded favorably to the earnings beat and the company's forward-looking commentary. Following the release, the stock experienced an after-market surge of over 3%. This positive initial reaction suggests investors were encouraged by the company's progress in reducing its losses and growing revenue in a period characterized by high interest rates and subdued mortgage demand. This uptick provides a respite from recent negative momentum, as the stock had declined approximately 12.5% over the preceding month.
Strategic and Operational Highlights
The earnings report underscored several key elements of CEO Anthony Hsieh's ongoing restructuring and growth strategy. Management highlighted a continued focus on achieving operational excellence and leveraging the company's multi-channel origination platform.
- Narrowing Losses: The net loss of $8.7 million marks a substantial improvement from the $25.3 million loss reported in the second quarter of 2025. This was attributed to disciplined expense management and higher revenue.
- Positive Operating Leverage: The company achieved positive operating leverage, with revenue growing 14% quarter-over-quarter while expenses increased by only 6%.
- Strengthened Balance Sheet: loanDepot ended the quarter with $459 million in cash, a $51 million increase from the prior quarter, enhancing its financial flexibility.
Fourth Quarter Outlook and Analyst Comparisons
Looking ahead, loanDepot provided specific guidance for the final quarter of 2025. The company's outlook appears measured, reflecting persistent market headwinds.
- Origination Volume: loanDepot expects Q4 origination volume between $6.5 billion and $8.5 billion.
- Pull-Through Lock Volume: The company anticipates pull-through weighted lock volume of $6.0 billion to $8.0 billion.
- Gain-on-Sale Margin: Management forecasts a pull-through weighted gain-on-sale margin between 3.00% and 3.25%.
This guidance sets a trajectory that aligns with the company's recent performance. For context, analysts are currently modeling a slight adjusted loss per share of approximately $0.0017 on sales of $310.8 million for the fourth quarter. The company's own revenue and margin projections suggest a path that could meet or approach these external estimates, contingent on market conditions.
For a deeper dive into loanDepot's historical earnings and future analyst estimates, you can review the detailed data here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
