loanDepot (LDI) investor relations material

Executive summary

• Strategic expansion into home equity lending drove a 25% increase in unit volume and 18% revenue growth sequentially, with improved operating leverage and a substantially narrowed net loss compared to the prior quarter.

• Technology and AI investments enhanced lead conversion, reduced costs, and increased productivity, with a 70% increase in return on marketing and an 18% rise in funded loan units per loan officer year-over-year.

• Purchase market share increased due to growth in builder partnerships and retail branches, rising to 1.27% from 0.95% sequentially.

• Repurchased $16 million of senior notes at 90% of par during the quarter and an additional $27 million post quarter-end at 86% of par, improving capital structure.

• Monetized approximately $12 billion of servicing rights post quarter-end and retained advisors to optimize capital structure.

Financial highlights

• Loan origination volume reached $8 billion, up 4% from Q1, with a 25% increase in unit volume due to the home equity product mix.

• Total revenue increased 18% quarter-over-quarter to $337.3 million; adjusted revenue was $308 million.

• Net loss narrowed to $6.6 million from $54.9 million in Q1; adjusted net loss was $29 million, improved from $34 million.

• Adjusted EBITDA improved to $20.5 million from $14.3 million in Q1.

• Pull-through weighted gain on sale margin rose to 345 basis points from 271 basis points in Q1.

Outlook and guidance

• Q3 2026 origination volume expected between $6.25 billion and $8.25 billion; pull-through weighted lock volume guidance is $5.25 billion to $7.25 billion.

• Gain on sale margin expected to rise to 360–390 basis points in Q3.

• Total expenses projected to decrease in Q3 due to debt repurchases and ongoing productivity initiatives.

• Market conditions remain challenging due to limited housing supply and higher interest rates, impacting purchase and refinance demand.