loanDepot Inc. reported a fourth‑quarter 2025 loss of $0.10 per share, falling short of the consensus estimate of $-0.02. Revenue for the quarter was $310.3 million, a decline from $323.3 million in Q3 2025 and from $257.5 million in Q4 2024, and below the broad range of analyst expectations that spanned $337.3 million to $371.17 million.
The miss in revenue and earnings is largely attributable to margin compression. The pull‑through weighted gain on sale margin fell to 324 basis points in Q4 2025 from 339 basis points in Q3 2025, driven by a shift toward refinance volume, which carries lower margins, and by higher amortization on the mortgage‑servicing‑right portfolio. Operating expenses rose modestly, further eroding profitability.
Management guidance for the first quarter of 2026 signals cautious optimism. loanDepot expects origination volume between $6.75 billion and $7.75 billion, and a pull‑through weighted gain on sale margin of 270 to 300 basis points, a decline from the 324 basis‑point margin reported in Q4 2025. The guidance reflects confidence in volume momentum but acknowledges the need to manage margin pressure as the company expands its wholesale lending and AI‑driven servicing capabilities.
Founder and CEO Anthony Hsieh said, "In the fourth quarter we originated the most volume since 2022, gained share in an expanding market and achieved a 71% recapture rate from our in-house servicing platform." CFO David Hayes added, "We reported an adjusted net loss of $21 million in the fourth quarter compared to an adjusted net loss of $3 million in the third quarter of 2025 due primarily to lower pull‑through weighted gain on sale margin, higher amortization on our MSR portfolio and higher expenses, offset somewhat by higher pull‑through weighted lock volume."
The results underscore the company’s ongoing challenge of translating high origination volumes into profitable growth amid a high‑rate environment and competitive pressure. While loanDepot’s volume growth remains strong, margin compression and rising expenses are key headwinds that management is actively addressing through technology investments and operational efficiencies.
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