loanDepot — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue decreased 9% to $307 million compared to the prior quarter; adjusted revenue decreased 2% to $302 million.
• Net loss was $29 million, compared to a net loss of $7 million in the prior quarter.
• Adjusted net loss was $31 million, compared to $29 million in the prior quarter.
• Adjusted EBITDA was $17 million, compared to $20 million in the prior quarter.
• Pull-through weighted gain on sale margin increased 54 basis points to 399 basis points.
• Non-volume related expenses decreased $10.4 million from the second quarter of 2026.
• Total expenses were $335.7 million for the quarter.
• Cash and cash equivalents were $214.4 million as of September 30, 2026, a 6.4% decrease from the prior quarter.
• Total assets were $6.16 billion, a 8.0% decrease from the prior quarter.
• Total liabilities were $5.85 billion, a 8.0% decrease from the prior quarter.
• Total equity was $310.9 million, a 6.6% decrease from the prior quarter.
• Loans held for sale, at fair value, were $1.98 billion, a 25.1% decrease from the prior quarter.
• Warehouse and other lines of credit were $1.85 billion, a 24.2% decrease from the prior quarter.
• Available borrowing capacity was $2.5 billion as of September 30, 2026.

Guidance and Future Outlook:

• Fourth quarter 2026 pull-through weighted rate lock volume is projected between $3.25 billion and $5.25 billion.
• Fourth quarter 2026 origination volume is projected between $4.5 billion and $6.5 billion.
• Fourth quarter 2026 pull-through weighted gain on sale margin is projected between 425 basis points and 465 basis points.
• Fourth quarter 2026 gain on sale margin is projected between 315 basis points and 355 basis points.
• Management expects to realize $25 million in annualized cost savings from productivity initiatives through the remainder of 2026, up from $12 million previously announced.
• Management is actively pursuing financing alternatives to refinance or extend debt with counterparties to extend the debt maturity profile.

Business Segments and Product Lines:

• Origination volume declined 12% to $7.05 billion, while unit volume increased 7% from the second quarter of 2026.
• Purchase volume totaled 61% of total loans originated during the third quarter, up from 57% in the second quarter.
• The company expanded home equity lending products, driving unit volume growth and higher margins.
• Preliminary organic refinance consumer direct recapture rate decreased to 52% for the third quarter from 68% in the second quarter.
• Purchase mortgage market share increased by 9% compared to a year ago.
• The company ranked among the top three non-bank home equity lenders during the third quarter based on volume.
• The company continues to expand partnerships with homebuilders and grow its retail loan officer sales force.

Market and Competitive Landscape:

• The company operates in a challenging mortgage market impacted by elevated interest rates.
• loanDepot is positioned as one of only two scaled, branded, Fintech modeled, direct-to-consumer mortgage platforms in the marketplace.
• The company's Direct to Consumer channel is a key differentiator.
• Management believes the company is positioned to emerge from the current cycle as a stronger and more competitive company.

Risks and Challenges:

• Elevated interest rates remain a headwind for mortgage demand.
• Persistent pressure on industry mortgage volumes from higher interest rates.
• The company faces upcoming debt maturities and is working to address them.
• Risks include potential impacts from cybersecurity incidents, cyberattacks, and technology disruptions.
• Risks include adverse changes in macroeconomic and U.S. residential real estate and mortgage market conditions.
• Risks include changing federal, state, and local laws and regulatory enforcement policies.
• Risks include the potential failure to regain and maintain compliance with NYSE continued listing standards.

Management Commentary and Tone:

• CEO Anthony Hsieh stated that third-quarter results demonstrate progress in transforming the operating model despite a significantly more challenging market.
• Hsieh noted that compared to the third quarter of 2025, the company increased origination volume by 8%, grew unit volume by 33%, increased purchase volume by 10%, improved return on marketing by 14%, and reduced cost to produce by 16%.
• CFO David Hayes highlighted progress in improving operating efficiency, expanding revenue opportunities, and strengthening the path toward sustainable profitability.
• Hayes noted that the sale of MSRs and opportunistic repurchase of senior notes contributed to a reduction in net debt obligations by approximately $114 million.
• Management expressed confidence in the company's ability to diversify revenue sources, improve efficiency, and strengthen margins.

Other Key Points:

• The company repurchased $87 million of senior notes at an average purchase price of 88% of par.
• The company 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.
• These transactions contributed to a reduction in net debt obligations by approximately $114 million.
• The company's productivity initiatives include automated underwriting and digital closing technologies.
• The company has a servicing portfolio unpaid principal balance of $115.8 billion as of September 30, 2026.
• The 60+ days delinquent percentage of the servicing portfolio was 2.0% as of September 30, 2026.