Revenue Performance - Revenue increased 9% to $1.06 billion for the full year 2024, with adjusted revenue rising 10% to $1.10 billion compared to 2023[5] - Fourth quarter revenue reached $257 million, a 13% increase from the prior year, while adjusted revenue was $267 million, up 6%[5] - Total net revenue for the fourth quarter of 2024 was $257,464 thousand, a decrease of 18.14% from $314,598 thousand in the third quarter of 2024[29] - Adjusted total revenue for the fourth quarter of 2024 was $266,594 thousand, up from $251,395 thousand in the same quarter of 2023, reflecting a year-over-year increase of 6.03%[29] - The company reported a total loan origination volume of $24,496,500 thousand for the year ended December 31, 2024, compared to $22,671,731 thousand for the previous year, marking an increase of 8.06%[22] Net Loss and Adjusted Loss - Net loss for the fourth quarter of 2024 was $67.5 million, compared to a net loss of $59.8 million in the fourth quarter of 2023[13] - Adjusted net loss for the fourth quarter of 2024 was $47 million, compared to an adjusted net loss of $26.7 million in the fourth quarter of 2023[13] - The net loss attributable to loanDepot, Inc. for the three months ended December 31, 2024, was $33,234,000, compared to a net income of $1,369,000 in the previous quarter and a net loss of $27,193,000 in the same quarter last year[19] - The adjusted net loss for the year ended December 31, 2024, was $94,823 thousand, an improvement from the adjusted net loss of $151,641 thousand in 2023[30] Loan Origination and Volume - Loan origination volume for the fourth quarter of 2024 was $7.2 billion, a 34% increase from the fourth quarter of 2023[13] - Loan origination volume for the fourth quarter of 2024 reached $7,188,186 thousand, an increase of 8.00% compared to $6,659,329 thousand in the previous quarter[22] - The company retained servicing on loans sold amounting to $4,421,935 thousand in the fourth quarter of 2024, compared to $3,818,375 thousand in the previous quarter, an increase of 15.80%[22] Financial Position and Assets - Cash and cash equivalents decreased by 12.7% from September 30, 2024, to $421,576,000, and by 36.2% compared to $660,707,000 as of December 31, 2023[18] - The total assets as of December 31, 2024, were $6,344,028,000, a decrease of 1.1% from the previous quarter and an increase of 3.1% from the same period last year[18] - The servicing rights at fair value increased to $1,633,661,000 as of December 31, 2024, representing a 5.9% increase from the previous quarter but an 18.3% decrease from the same period last year[18] - Total liabilities as of December 31, 2024, were $5,837,417,000, a slight increase of 0.2% from the previous quarter and a 7.2% increase from the same period last year[18] - The company’s available borrowing capacity was $1.2 billion as of December 31, 2024, up from $3.1 billion at the same time last year[18] Delinquency and Restructuring - The 60+ days delinquent amount increased to $1,826,105,000, a 10.3% increase from the previous quarter and a 31.1% increase compared to December 31, 2023[17] - The liability for loans eligible for repurchase was $995,398 thousand as of December 31, 2024, up from $860,300 thousand on September 30, 2024, an increase of 15.66%[21] - The restructuring charges for the year ended December 31, 2024, were $7,199 thousand, down from $11,811 thousand in 2023[36] Strategic Initiatives - The company successfully refinanced 2025 corporate debt, extending maturity and reducing outstanding corporate debt by $137 million[5] - The company expanded its network of joint venture partnerships with new agreements with Smith Douglas Homes and Onx Homes[5] - The company is focused on Project North Star, aiming for sustainable profitability and revenue growth in the future[41] - loanDepot is committed to enhancing its digital-first home lending products to better serve diverse communities of first-time homebuyers[43] Tax and Shareholder Information - The effective income tax rate for the year ended December 31, 2024, was 25.17%, compared to 26.22% for the previous year[31] - The diluted weighted average shares outstanding increased to 327,009,768 for the year ended December 31, 2024, from 322,695,123 in 2023[34] - Interest expense for non-funding debt was $188,550 thousand for the year ended December 31, 2024, compared to $174,103 thousand in 2023[36] - Adjusted EBITDA for the year ended December 31, 2024, was $83,749 thousand, a significant increase from $6,441 thousand in 2023[36] - The company experienced a valuation change in servicing rights, net of hedging gains and losses, amounting to $44,675 thousand for the year ended December 31, 2024[36]

Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than traditional strategies of "buying low and selling high" [1] Group 1: Momentum Investing Strategy - Momentum investors often face challenges in determining the right entry point, as stocks may lose momentum when their valuations exceed future growth potential [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Company Spotlight - loanDepot (LDI) - loanDepot (LDI) has shown significant price movement, with a 39.1% increase over the past four weeks, indicating growing investor interest [4] - The stock has also gained 2.9% over the past 12 weeks, with a high beta of 3.46, suggesting it moves 246% more than the market [5] - LDI has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings and Valuation - LDI has received upward revisions in earnings estimates, earning a Zacks Rank 2 (Buy), which is associated with strong momentum effects [7] - The stock is currently trading at a Price-to-Sales ratio of 0.89, suggesting it is undervalued at 89 cents for each dollar of sales [7] Group 4: Additional Opportunities - Besides LDI, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - Investors can explore over 45 Zacks Premium Screens tailored to different investing styles to identify potential winning stocks [9]

Financial Performance - Total net revenues for the three months ended September 30, 2024, were $314.6 million, an increase of 18.4% compared to $265.7 million for the same period in 2023[9]. - Gain on origination and sale of loans, net, reached $198.0 million for the three months ended September 30, 2024, up 32.9% from $148.8 million in the prior year[9]. - Net income attributable to loanDepot, Inc. was $1.4 million for the three months ended September 30, 2024, compared to a net loss of $16.6 million for the same period in 2023[9]. - Total expenses for the three months ended September 30, 2024, were $311.0 million, slightly up from $305.1 million in the same period last year[9]. - Basic earnings per share for the three months ended September 30, 2024, was $0.01, compared to a loss of $0.09 per share in the prior year[9]. - The company reported a net loss of $134.7 million for the nine months ended September 30, 2024, compared to a net loss of $175.7 million for the same period in 2023[9]. - The total net revenues for the nine months ended September 30, 2024, were $802.8 million, an increase of 7.7% from $745.4 million in the same period of 2023[9]. Cash Flow and Liquidity - Cash flows from operating activities resulted in a net cash used of $905.982 million for the nine months ended September 30, 2024, compared to a net cash provided of $31.203 million in the prior year[20]. - The cash and cash equivalents at the end of the period were $578.641 million, down from $831.961 million at the end of the same period in 2023[20]. - As of September 30, 2024, unrestricted cash and cash equivalents were $483.0 million, with additional available capacity under credit lines of $534.3 million[187]. - The company maintained borrowing capacity totaling $3.1 billion under warehouse and securitization facilities, with $2.6 billion of borrowings outstanding[191]. Loan Originations and Servicing - The total originations of loans for the nine months ended September 30, 2024, were $17.026 billion, slightly down from $17.097 billion in the same period of 2023[20]. - The company originated and purchased loans totaling $6,545,027 during the three months ended September 30, 2024, compared to $6,005,613 in the same period of 2023[53]. - For the nine months ended September 30, 2024, loans originated for properties located in California accounted for approximately 18% of total loan originations[35]. - The servicing portfolio's unpaid principal balance decreased to $114,915,206 thousand in September 2024 from $143,959,705 thousand in September 2023[149]. Cybersecurity Incident - The company recognized $22.8 million in expenses related to a cybersecurity incident during the nine months ended September 30, 2024, net of insurance recoveries[26]. - The company has initiated an investigation and taken steps to remediate a cybersecurity incident affecting sensitive personal information of approximately 16.9 million individuals[25]. - The company is involved in ongoing legal proceedings related to a cybersecurity incident, with potential material impacts on its financial condition and operations[128]. Debt and Liabilities - Total liabilities as of September 30, 2024, were $3,737,386 million, with secured debt obligations of $1,151,280 million and warehouse lines of credit totaling $2,565,713 million[73]. - The company’s total liabilities in the securitization and SPE VIEs were $827,598 million as of September 30, 2024, down from $902,689 million as of December 31, 2023[81]. - The company’s interest rate swap futures liabilities were recorded at $5,468 million as of September 30, 2024[73]. - The company’s forward sale contracts liabilities were $100,709 million as of December 31, 2023, with a net amount of $23,540 million after offsets[74]. Equity and Shareholder Information - Basic earnings per share for Class A common stock was $0.01 for the three months ended September 30, 2024, while diluted earnings per share was also $0.01[112][114]. - The net loss allocated to common stockholders for the nine months ended September 30, 2024, was $(65,097) thousand[114]. - The noncontrolling interest related to LD Holdings was $280.7 million as of September 30, 2024, down from $351.3 million as of December 31, 2023[110]. - The company had 2,305,379 anti-dilutive shares excluded from the computation of diluted earnings per share for the three months ended September 30, 2024[118]. Operational Efficiency - Personnel expenses rose to $161,330 thousand, a 14.1% increase from $141,432 thousand in the same quarter last year[152]. - General and administrative expenses decreased by $23.5 million, or 50.6%, mainly due to a $19.6 million reduction in professional and consulting services related to a cybersecurity incident[163]. - Direct origination expenses increased by $7.4 million, or 46.8%, due to higher loan originations and industry-wide increases in credit reporting fees[162]. Market Conditions and Future Outlook - The Company anticipates continued market challenges but believes that the implementation of Project North Star will allow it to capture higher market volumes[144]. - The Company’s mortgage loan refinancing volumes are influenced by changes in interest rates, with rising rates impacting affordability and qualification for homebuyers[143].

Financial Data and Key Metrics Changes - The company reported adjusted net income of $7 million in Q3 2024, compared to an adjusted net loss of $29 million in Q3 2023, primarily due to higher adjusted revenues from increased volume and gain on sale margins [26] - Pull-through weighted rate lock volume was $6.7 billion, a 19% increase from $5.8 billion in the prior year [27] - Adjusted total revenue increased to $320 million from $261 million in Q3 2023 [27] Business Line Data and Key Metrics Changes - Loan origination volume for the quarter was $6.7 billion, a 9% increase from $6.1 billion in the prior year [29] - Servicing fee income rose from $121 million in Q3 2023 to $124 million in Q3 2024, attributed to higher earnings credits on custodial balances [29] Market Data and Key Metrics Changes - The Mortgage Bankers Association forecasts 2025 mortgage market volumes at $2.3 trillion, up from $1.8 trillion for 2024, indicating a potential recovery in housing transactions [22] Company Strategy and Development Direction - The company successfully completed its Vision 2025 strategic program, which focused on transforming origination business and reducing costs, resulting in a return to profitability [25][14] - The new strategic plan, Project North Star, aims for durable revenue growth and improved customer experiences through AI-powered platforms and expanded geographic reach [15][16] Management Comments on Operating Environment and Future Outlook - Management noted that the housing market has faced challenges, but there is optimism for recovery in 2025, driven by pent-up demand and a potential increase in home equity linked mortgage products [21][23] - The company is positioned to capitalize on improving market conditions, with expectations of sustainable profitability in various operating environments [36] Other Important Information - The company reduced annualized non-volume expenses by over $730 million since Q2 2022, while maintaining top quartile loan quality production [13] - The company ended the quarter with $483 million in cash, indicating a strong liquidity position [35] Q&A Session Summary Question: Expectations for non-volume-related expenses going forward - Management indicated that while volume-related expenses will fluctuate, they expect non-volume related expenses to decrease due to ongoing productivity initiatives, despite inflationary pressures from vendor costs [38][40] Question: Geographic expansion and partnerships under Project North Star - The company is focusing on expanding its retail team and joint ventures with builders, particularly in the South and Southeast regions [42] Question: Sustainable profitability in 2025 - Management expressed confidence in achieving sustainable profitability based on current market forecasts and operational efficiencies [44][46] Question: Growth of servicing portfolio - The growth will come from organic additions and opportunistic acquisitions of MSRs, with financing strategies in place to support this growth [48][49] Question: Loan originator recruitment environment - The company is seeing positive traction in recruiting loan originators, despite a competitive market [50] Question: Details on the Smith Douglas partnership - The joint venture with Smith Douglas is expected to be a positive and predictable business model, distinct from in-market retail origination [52]

Core Viewpoint - loanDepot, Inc. is conducting its Q3 2024 earnings conference call, indicating a focus on financial performance and operational insights for the upcoming periods [1]. Group 1: Company Overview - The conference call is hosted by key company executives, including the President and CEO, CFO, and Chief Investment Officer, highlighting the importance of leadership in discussing financial results [1][2]. - The call aims to provide insights into the company's operating and financial performance, with a specific focus on forward-looking statements regarding various financial metrics [4][5]. Group 2: Financial Performance - The company emphasizes the use of non-GAAP financial measures to provide additional insights into performance and facilitate comparisons with other companies in the industry [6].

loan Depot 3Q 2024 INVESTOR PRESENTATION November 7, 2024 DISCLAIMER 2 Forward-Looking Statements and Other Information This presentation may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, our business strategies, including Project North Star, our progress toward run-rate profitability, ongoing cost management and productivity programs, our HELOC product, financial condition and liquidity, competitive position, industry and regulatory envir ...

Core Insights - loanDepot (LDI) reported revenue of $314.6 million for the quarter ended September 2024, marking an 18.4% increase year-over-year and a surprise of +9.87% over the Zacks Consensus Estimate of $286.35 million [1] - The company's EPS was $0.03, a significant improvement from -$0.15 in the same quarter last year, resulting in an EPS surprise of +200.00% compared to the consensus estimate of -$0.03 [1] Revenue Metrics - Net interest income was reported at -$0.82 million, significantly below the average estimate of $2.25 million, representing a year-over-year change of -131.2% [3] - Other income reached $26.14 million, slightly above the estimated $25.70 million, reflecting a +95.6% change compared to the previous year [3] - Servicing fee income was $124.13 million, exceeding the average estimate of $109.50 million, with a year-over-year increase of +4.5% [3] - The change in fair value of servicing rights, net, was reported at -$56.56 million, worse than the average estimate of -$39.15 million, indicating a +58.5% change year-over-year [3] Stock Performance - Over the past month, loanDepot's shares have declined by -8.4%, contrasting with the Zacks S&P 500 composite's slight decrease of -0.5% [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Group 1: Earnings Performance - LoanDepot reported quarterly earnings of $0.03 per share, exceeding the Zacks Consensus Estimate of a loss of $0.03 per share, compared to a loss of $0.15 per share a year ago, representing an earnings surprise of 200% [1] - The company posted revenues of $314.6 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 9.87%, compared to year-ago revenues of $265.66 million [2] - Over the last four quarters, LoanDepot has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Group 2: Stock Performance and Outlook - LoanDepot shares have declined approximately 40.9% since the beginning of the year, while the S&P 500 has gained 19.8% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is -$0.03 on $272 million in revenues, and -$0.25 on $1.05 billion in revenues for the current fiscal year [7] Group 3: Industry Context - The Financial - Mortgage & Related Services industry, to which LoanDepot belongs, is currently in the top 6% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact LoanDepot's stock performance [5] - The Zacks Rank for LoanDepot is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Revenue for Q3 2024 was $315 million, an 18% increase year-over-year, with adjusted revenue at $329 million, up 26% from the prior year[1]. - Net income for Q3 2024 was $3 million, compared to a net loss of $34 million in Q3 2023, reflecting improved revenue and cost productivity[1][9]. - Adjusted EBITDA for Q3 2024 reached $64 million, significantly up from $15 million in the same quarter last year[1]. - Total net revenues for the three months ended September 30, 2024, were $314,598 thousand, a 18.6% increase from $265,390 thousand in June 2024[18]. - Net income for the three months ended September 30, 2024, was $2,672 thousand, compared to a net loss of $65,853 thousand in June 2024[18]. - Adjusted total revenue for Q3 2024 was $329,499, reflecting a 26.2% increase from $261,116 in Q3 2023[29]. - Net income attributable to loanDepot, Inc. for Q3 2024 was $1,369, compared to a loss of $16,599 in Q3 2023[30]. - Adjusted net income for Q3 2024 was $7,077, a significant improvement from a loss of $29,211 in Q3 2023[30]. - For the three months ended September 30, 2024, loanDepot reported a net income of $2.67 million, compared to a net loss of $32.21 million for the previous quarter and a net loss of $16.60 million for the same period last year[33]. - Adjusted net income for the three months ended September 30, 2024, was $7.08 million, a significant improvement from a loss of $15.89 million in the previous quarter and a loss of $29.21 million in the same period last year[33]. Loan Origination and Volume - Pull-through weighted lock volume for Q3 2024 was $6.7 billion, a 19% increase from Q3 2023, while loan origination volume was $6.7 billion, up 9% year-over-year[8]. - Total loan origination volume for Q3 2024 reached $6,659,329, a 9.5% increase from $6,083,143 in Q3 2023[21]. - Conventional conforming loans accounted for $3,254,702, representing a 3.0% increase from $3,158,107 in the same quarter last year[21]. - FHA/VA/USDA loans increased to $2,564,827, up 8.9% from $2,354,630 in Q3 2023[21]. - Total loans sold amounted to $6,305,964, a slight decrease of 0.3% compared to $6,267,888 in Q3 2023[22]. Assets and Liabilities - Total assets increased to $6,417,627 thousand as of September 30, 2024, up 8.0% from $5,942,777 thousand in June 2024 and 5.6% from $6,078,529 thousand in September 2023[16]. - Total liabilities increased to $5,825,578 thousand as of September 30, 2024, up 8.6% from $5,363,839 thousand in June 2024[19]. - Cash balance stood at $483 million, indicating a strong liquidity profile[1]. - Cash and cash equivalents decreased to $483,048 thousand, down 9.4% from $533,153 thousand in June 2024 and 32.6% from $717,196 thousand in September 2023[16]. - Total equity as of September 30, 2024, was $592,049 thousand, a 2.3% increase from $578,938 thousand in June 2024 but a 23.0% decrease from $768,935 thousand in September 2023[16]. - Available borrowing capacity was $500 million as of September 30, 2024[16]. Operational Efficiency and Strategic Initiatives - The company announced the completion of Vision 2025 and the launch of Project North Star, aimed at sustainable profitability and operational efficiency[4][5]. - The company plans to continue focusing on expanding its loan origination capabilities and enhancing its technology platform to improve operational efficiency[24]. - The company has initiated Project North Star, focusing on achieving run-rate profitability and ongoing cost management[36]. - LoanDepot's restructuring efforts, announced as part of Vision 2025, included employee severance expenses totaling $1.85 million for the three months ended September 30, 2024[34]. - The company is committed to enhancing its HELOC product as part of its strategic initiatives moving forward[36]. Expenses and Charges - The company incurred restructuring and impairment charges totaling $1.9 million, a decrease from the previous year[8]. - Personnel expenses increased to $161,330 thousand for the three months ended September 30, 2024, compared to $141,036 thousand in June 2024[18]. - During the three months ended September 30, 2024, loanDepot incurred $18.88 million in expenses related to a cybersecurity incident, with an expected insurance reimbursement of $20.0 million recorded[34]. - The company recorded $35.0 million in insurance reimbursement related to the cybersecurity incident during the nine months ended September 30, 2024[34]. Market Outlook - The company anticipates origination volume between $6 billion and $8 billion for Q4 2024, with a pull-through weighted rate lock volume forecasted between $5.5 billion and $7.5 billion[10]. - The company anticipates potential growth opportunities despite challenges in the macroeconomic environment and regulatory landscape[36].

Investors in loanDepot, Inc. (LDI) need to pay close attention to the stock based on moves in the options market lately. That is because the Sep 20, 2024 $7.5 Put had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also me ...