loanDepot’s Q1 revenue jumps 23% as Hsieh prepares to take the wheel again

loanDepot on Tuesday reported that its first-quarter 2025 revenue increased by 23% annually to $274 million, while its adjusted revenue was up 21% to $278 million on higher mortgage sales volumes and stronger margins.

Revenues also increased on a quarterly basis, growing from a baseline figure of $257 million and an adjusted figure of $267 million in Q4 2024.

loanDepot‘s origination volume for Q1 2025 was $5.2 billion, an increase of $0.6 billion or 14% annually. Purchase loans accounted for 59% of originations during the first quarter, down from 72% in Q1 2024. The company touted that its preliminary organic refinance consumer-direct recapture rate increased to 65%, compared to 59% in Q1 2024.

The first quarter also saw the return of loanDepot founder and executive chairman Anthony Hsieh to the day-to-day operations at the California-based lender. During the company’s earnings call, it was reiterated that current CEO Frank Martell is set to transition to a board advisory role on June 4, and Hsieh will assume the interim CEO role at that time.

“I would like to thank Team loanDepot for their dedication and support over these past three years,” Martell said. “Together as a team, we addressed the realities of the market while investing in critical systems, products, and processes.

“These investments will allow loanDepot to take advantage of our marketplace differentiators in this and upcoming cycles, as well as to continue to deliver a best-in-class customer experience. I am proud to have been a part of loanDepot and look forward with confidence to the company’s future success.”

Martell characterized Q1 2025 as a “quarter of positive momentum” before turning the call over to Hsieh.

“As we go forward, the team and I will focus on capitalizing upon the things that already make loanDepot great,” Hsieh said. “Our multichannel sales model, proprietary mello tech stack, wide product array, powerful brand muscle and our servicing business are foundational places in which loanDepot can win.

“By leveraging this unique constellation of assets, plus adding to our arsenal with new and emerging technologies and platform refinements, I believe we are well positioned to regain profitable market share and scale our business.”

loanDepot’s first quarter saw solid mortgage revenue growth, which more than overcame the loss of $20 million in revenue tied to 2024 bulk sales of mortgage servicing rights (MSRs). As a result, loanDepot’s net loss of $40.7 million was down 43% compared to its $71.5 million loss in Q1 2024.

Chief financial officer David Hayes said the company is “energized” by Hsieh’s return.

“Our strategy for hedging the servicing portfolio is dynamic, and we adjust our hedged positions in reaction to changing and straight environments,” Hayes said. “Our total expenses for the first quarter of 2025 increased by $12 million, or 4%, from the prior year quarter.

“The primary drivers of the increase were for higher volume-related commission, direct origination and marketing expenses. Our non-volume-related expenses decreased $7 million [during] the same period, … reflecting our ongoing cost management discipline and lower cyber-related costs,” Hayes said.

loanDepot’s expectations for Q2 2025 include an origination volume of $5 billion to $7.5 billion. It estimates a pull-through weighted rate-lock volume of $5.5 billion to $8.0 billion, along with a pull-through weighted gain-on-sale margin of 300 to 350 basis points.

“Because we service loans in-house, we directly interact with our customers, strengthening our brand and awareness loyalty and providing important self-serve opportunities throughout our customer portal,” Hsieh said.

“This improves our recapture rates, which deepens our customer relationships and drives profitability by saving marketing expenses, avoiding much of the customer acquisition costs.”