loanDepot on Thursday reported that its second-quarter 2025 revenue increased by 3% to $283 million and adjusted revenue increased 5% to $292 million compared to the prior quarter.
loanDepot’s first quarter saw the return of loanDepot founder and executive chairman Anthony Hsieh to the day-to-day operations at the California-based lender. The company’s second quarter marks the first quarter that Hsieh has been in the interim CEO role. He officially reclaimed the permanent CEO slot at the end of July.
“I am thrilled to return to the helm of the company that I, along with so many members of the team, built from the ground up,” said Hsieh. “My focus is to return to our roots and drive profitable market share growth fueled by technology innovations that power operating leverage, and ultimately a return to profitability.
“I believe that loanDepot’s unique set of assets – our nationally recognized brand and marketing muscle, our diversified channel strategy, our high-quality servicing portfolio and our exceptional customer experience against the backdrop of a highly fragmented market and the rapid evolution of artificial intelligence – position us to once again disrupt and redefine the industry.”
Hsieh remarked during the company’s Thursday afternoon earnings call on the return of two executives to loanDepot, Dominick Marchetti and Sean DeJulia, who were both instrumental in developing loanDepot’s mello technology platform.
“These two brilliant and proven technology leaders bring a deep understanding of both the loan manufacturing process and the competitive landscape, and are trusted leaders who know how to build, inspire and deliver,” added Hsieh. “I am confident that they will accelerate our progress.”
Origination volume
Last quarter, loanDepot’s expectations for Q2 included an origination volume of $5 billion to $7.5 billion and 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.
loanDepot’s Q2 pull-through weighted gain on sale margin was right on the money, having decreased 25 basis points to 330 basis points. Loan origination volume for the second quarter of 2025 was $6.7 billion, an increase of $1.6 billion or 30% from Q1 2025. Pull-through weighted lock volume of $6.3 billion for the second quarter of 2025, an increase of $0.9 billion or 17% from the first quarter this year.
The company cut its expenses by 2% (or $5 million) to $315 million in the second quarter, CFO David Hayes shared during the call, driven mainly by lower general and administrative costs, even as volume-related expenses rose 12% to $114 million, well below the 30% increase in origination volume.
Narrowing losses
loanDepot also reported a net loss of $25 million, a 38% improvement from the prior quarter’s $41 million loss, which the company attributes to higher revenue and reduced expenses. Adjusted net loss narrowed to $16 million from $25 million, while adjusted EBITDA rose by $7 million to $26 million.
“We continued to narrow our loss in the second quarter, thanks to both higher adjusted revenue and lower expenses,” said Hayes “Our continued focus on productivity and efficiency initiatives was evident in lower direct origination expenses, even as origination volumes increased. We also maintained a strong balance sheet during the quarter, increasing our unrestricted cash balance by $37 million to a total of $409 million.”
Third-quarter expectations
Moving into the third quarter, loanDepot expects an origination volume of between $5.0 billion and $7.0 billion. It estimates a pull-through weighted rate lock volume of between $5.25 billion and $7.25 billion and a pull-through weighted gain on sale margin of between 325 to 350 basis points.
Hayes said during the call that he expects total expenses to increase in the third quarter, primarily driven by higher non-volume related expenses from the exclusion of the one-time benefits recognized during Q2 2025. “The increase during the third quarter is expected to be partially offset by lower volume,” he said. “We remain laser-focused on our commitment to profitability and continue to work with discipline to grow revenue and manage costs while maintaining ample cash and a strong balance sheet.”
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