loanDepot’s Q3 loss narrows as revenue climbs 14%

loanDepot reported a smaller loss in the third quarter as higher loan volumes, improved margins and increased servicing income boosted its results.

Revenue for the California-based mortgage lender rose 14% from the previous quarter to $323 million, while adjusted revenue increased 11% to $325 million. Pull-through weighted gain-on-sale margins rose 9 basis points to 339 bps.

Founder and CEO Anthony Hsieh said the company’s focus during the quarter was on reshaping its leadership team to drive operational excellence and position for profitable growth. Just hours before the earnings call, the company named Nikul Patel as its chief growth officer.

“In the third quarter, we initiated a business transformation that included naming new leadership across all of our origination channels — consumer direct, retail and partnership lending — as well as our in-house servicing platform,” Hsieh said to investors during Thursday’s earnings call.

When asked what the minimum level of originations are for loanDepot to return to profitability, Hsieh answered that when margins widen, he expects volumes to return and work to the company’s benefit.

“Right now, we are pivoting the use of new and emerging technologies across sales, operations and software engineering, with an expectation that these innovations will improve the customer experience while driving improved productivity and lowering our cost of production,” he said.

Hsieh also reiterated confidence in the company’s ability to “profitably regain market share,” emphasizing the value of its diversified business model and strong servicing platform.

“We started this company and … have grown 38% year over year for the first 11 years of our life, so we understand what it takes to grow market share and grow profitably,” he said.

Third-quarter figures

Chief financial officer David Hayes said stronger revenue and expense control helped narrow the company’s losses. “We also strengthened our balance sheet, increasing cash by $51 million to $459 million,” Hayes said.

loanDepot posted posted higher lock volumes and smaller losses in the third quarter, although loan origination activity declined slightly from the second quarter. Pull-through weighted lock volume rose 10% from Q2 to $7 billion, while origination volume slipped 3% to $6.5 billion.

Purchase loans made up 60% of total originations, down from 63% in the second quarter, the company said.

Expenses climbed 6% to $334 million, driven mainly by higher personnel costs, along with higher general and administrative expenses. loanDepot reported a net loss of $8.7 million, down 65% from a loss of $25.3 million in the prior quarter.

Its adjusted net loss fell 82% to $2.8 million, down from $16 million in Q2 2025. Adjusted EBITDA rose 90% to $49 million. And the company ended Q3 with $459 million in cash, up from $409 million in the second quarter.

Non-volume-related expenses increased by $15.8 million from the previous quarter, largely due to the absence of one-time salary and administrative cost benefits recognized earlier in the year. The company’s organic refinance consumer-direct recapture rate fell to 65%, compared to 70% in the previous quarter.

Looking ahead, the company expects Q4 2025 origination volume to range between $6.5 billion and $8.5 billion, with pull-through weighted rate lock volume between $6 billion and $8 billion. The company forecasts a pull-through weighted gain-on-sale margin of 300 to 325 bps.