loanDepot Announces Second Quarter 2023 Financial Results

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In this article:

Company reports second consecutive quarter of sequential double-digit revenue growth and ongoing cost productivity gains resulting in significant narrowing of net loss

  • Revenue up 31% or $63.9 million from first quarter 2023, primarily driven by higher pull through weighted lock volume and gain on sale margin.

  • Total expenses increased 5% or $15.7 million from first quarter 2023, primarily driven by Vision 2025 related costs and higher direct costs attributable to increased origination volumes, partially offset by cost productivity.

  • Quarterly net loss narrowed by 46% to $49.8 million, or $42.0 million, from first quarter 2023 net loss of $91.7 million primarily due to increased revenues and cost productivity.

  • Adjusted net loss for the second quarter of 2023 was $34.3 million as compared to $60.2 million for the first quarter of 2023.

  • Company continues to maintain strong liquidity profile, exiting the quarter with cash balance of $719.1 million.

IRVINE, Calif., August 08, 2023--(BUSINESS WIRE)--loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, "loanDepot" or the "Company"), today announced results for the second quarter ended June 30, 2023.

"loanDepot continues to make significant progress against the strategic imperatives laid out in our Vision 2025 plan," said President and Chief Executive Officer Frank Martell. "We delivered our second successive quarter of strong top line growth and margin expansion on a sequential basis, and at the same time, continued to drive cost productivity and operating leverage. Importantly, we reduced our sequential quarterly net loss by $66.0 million in the first quarter of 2023 and by $42 million in the second quarter.

"While we continue the work of resetting our cost structure to align with generationally low unit volumes, we are also focused on the other pillars of Vision 2025, including capturing opportunities inherent in our strategy to expand purpose-driven lending that supports first-time homebuyers and diverse communities. During 2022, loanDepot ranked as the country’s third largest mortgage lender for all minorities1. Home ownership is a bedrock of the American Dream and plays a vital role in helping to build strong, stable communities, and further deepening our support for diverse and first-time homebuyers is a critical component of our Vision 2025 plan," Martell added.

"As we move forward in the second half of 2023, we plan to continue maintaining a strong liquidity position and aggressively reduce our costs," said Chief Financial Officer, David Hayes. "Importantly, we are also investing in critical operating platforms, which we expect will deliver higher levels of automation and operating leverage and position us for additional growth and margin expansion in 2024."

_______________
1 Based on 2022 Home Mortgage Disclosure Act (HMDA) data collected by the Consumer Financial Protection Bureau (CFPB).

Second Quarter Highlights:

Financial Summary

Three Months Ended

Six Months Ended

($ in thousands except per share data)

(Unaudited)

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun 30,
2023

Jun 30,
2022

Rate lock volume

$

8,973,666

$

8,468,435

$

19,596,763

$

17,442,101

$

49,588,215

Pull through weighted lock volume(1)

6,057,179

5,325,488

12,412,894

11,382,667

32,212,939

Loan origination volume

6,273,543

4,944,337

15,995,055

11,217,880

37,545,786

Gain on sale margin(2)

2.75

%

2.43

%

1.16

%

2.61

%

1.62

%

Pull through weighted gain on sale margin(3)

2.85

%

2.26

%

1.50

%

2.57

%

1.89

%

Financial Results

Total revenue

$

271,833

$

207,901

$

308,639

$

479,734

$

811,949

Total expense

330,148

314,484

560,657

644,632

1,166,913

Net loss

(49,759

)

(91,721

)

(223,822

)

(141,480

)

(315,141

)

Diluted loss per share

$

(0.13

)

$

(0.25

)

$

(0.66

)

$

(0.38

)

$

(0.93

)

Non-GAAP Financial Measures(4)

Adjusted total revenue

$

275,709

$

226,190

$

273,273

$

501,899

$

777,877

Adjusted net loss

(34,329

)

(60,247

)

(168,863

)

(94,623

)

(250,255

)

Adjusted EBITDA (LBITDA)

6,499

(29,336

)

(191,510

)

(22,838

)

(265,916

)

(1)

Pull through weighted rate lock volume is the principal balance of loans subject to interest rate lock commitments, net of a pull-through factor for the loan funding probability.

(2)

Gain on sale margin represents the total of (i) gain on origination and sale of loans, net, and (ii) origination income, net, divided by loan origination volume during period.

(3)

Pull through weighted gain on sale margin represents the total of (i) gain on origination and sale of loans, net, and (ii) origination income, net, divided by the pull through weighted rate lock volume.

(4)

See "Non-GAAP Financial Measures" for a discussion of Non-GAAP Financial Measures and a reconciliation of these metrics to their closest GAAP measure.

Operational Highlights

  • Quarterly non-volume related expenses increased $2.2 million since the first quarter of 2023, primarily due to higher Vision 2025 related expenses and legal accruals.

  • Incurred expenses related to the Vision 2025 plan of $6.8 million during the quarter, including $4.5 million of personnel related expenses and $2.3 million of lease and other asset impairment charges. Vision 2025 expenses totaled $2.6 million in the first quarter of 2023.

  • Accrued $7.5 million of legal expenses related to the settlement of outstanding litigation.

  • Pull through weighted lock volume of $6.1 billion for the three months ended June 30, 2023, an increase of $0.7 billion or 14% from the first quarter of 2023, resulting in quarterly total revenue of $271.8 million, an increase of $63.9 million, or 31%, over the same period.

  • Loan origination volume for the second quarter of 2023 was $6.3 billion, an increase of $1.3 billion or 27% from the first quarter of 2023.

  • Purchase volume increased to 73% of total loans originated during the second quarter, up from 71% of total loans originated during the first quarter of 2023 and up from 59% of total loans originated during the second quarter of 2022.

  • For the three months ended June 30, 2023, our preliminary organic refinance consumer direct recapture rate2 increased to 69% from the first quarter’s refinance rate of 67%. This highlights the efficacy of our marketing efforts, the strength of our customer relationships, and the value of our servicing portfolio for adjacent and complementary revenue opportunities.

  • Net loss for the second quarter of 2023 of $49.8 million as compared to net loss of $91.7 million in the first quarter of 2023. Net loss decreased quarter over quarter primarily due to an increase in revenues and operating efficiency benefits.

  • Adjusted EBITDA for the second quarter of 2023 was positive $6.5 million as compared to adjusted LBITDA of negative $29.3 million for the first quarter of 2023. Adjusted EBITDA (LBITDA) excludes the impact of interest expense on non-funding debt, fair value changes of our mortgage servicing rights, net of hedging results, impairment charges, and other operating expenses.

______________
2 We define organic refinance consumer direct recapture rate as the total unpaid principal balance ("UPB") of loans in our servicing portfolio that are paid in full for purposes of refinancing the loan on the same property, with the Company acting as lender on both the existing and new loan, divided by the UPB of all loans in our servicing portfolio that paid in full for the purpose of refinancing the loan on the same property. The recapture rate is finalized following the publication date of this release when external data becomes available.

Outlook for the third quarter of 2023

  • Origination volume of between $5 billion and $7 billion.

  • Pull-through weighted rate lock volume of between $5.5 billion and $7.5 billion.

  • Pull-through weighted gain on sale margin of between 245 basis points and 285 basis points.

Servicing

Three Months Ended

Six Months Ended

Servicing Revenue Data:

($ in thousands)

(Unaudited)

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun 30,
2023

Jun 30,
2022

Due to changes in valuation inputs or assumptions

$

26,138

$

(21,368

)

$

98,795

$

4,771

$

297,792

Due to collection/realization of cash flows

(41,619

)

(34,657

)

(66,380

)

(76,276

)

(143,502

)

Realized gains (losses) on sales of servicing rights

7,021

140

(2,493

)

7,161

7,540

Net (loss) gain from derivatives hedging servicing rights

(30,014

)

3,079

(63,429

)

(26,936

)

(263,720

)

Changes in fair value of servicing rights, net

$

(38,474

)

$

(52,806

)

$

(33,507

)

$

(91,280

)

$

(101,890

)

Servicing fee income

$

117,737

$

118,961

$

117,326

$

236,699

$

228,385

Three Months Ended

Six Months Ended

Servicing Rights, at Fair Value:

($ in thousands)

(Unaudited)

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun 30,
2023

Jun 30,
2022

Balance at beginning of period

$

2,016,568

$

2,025,136

$

2,078,187

$

2,025,136

$

1,999,402

Additions

75,866

59,295

180,455

135,161

450,215

Sales proceeds, net

(78,191

)

(11,838

)

(86,464

)

(90,030

)

(399,314

)

Changes in fair value:

Due to changes in valuation inputs or assumptions

26,138

(21,368

)

98,795

4,771

297,792

Due to collection/realization of cash flows

(41,619

)

(34,657

)

(66,380

)

(76,276

)

(143,502

)

Balance at end of period (1)

$

1,998,762

$

2,016,568

$

2,204,593

$

1,998,762

$

2,204,593

(1)

Balances are net of $13.3 million, $12.2 million, and $9.1 million of servicing rights liability as of June 30, 2023, March 31, 2023, and June 30, 2022, respectively.

% Change

Servicing Portfolio Data:

($ in thousands)

(Unaudited)

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun-23

vs

Mar-23

Jun-23
vs
Jun-22

Servicing portfolio (unpaid principal balance)

$

142,479,870

$

141,673,464

$

155,217,012

0.6

%

(8.2

)%

Total servicing portfolio (units)

482,266

475,765

507,231

1.4

(4.9

)

60+ days delinquent ($)

$

1,192,377

$

1,282,432

$

1,511,871

(7.0

)

(21.1

)

60+ days delinquent (%)

0.8

%

0.9

%

1.0

%

Servicing rights, net to UPB

1.4

%

1.4

%

1.4

%

As of June 30, 2023, approximately $115.3 million, or 0.1%, of our servicing portfolio was in active forbearance. This represents a decrease from $174.0 million, or 0.1%, as of March 31, 2023.

Balance Sheet Highlights

% Change

($ in thousands)

(Unaudited)

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun-23
vs
Mar-23

Jun-23
vs
Jun-22

Cash and cash equivalents

$

719,073

$

798,119

$

954,930

(9.9

)%

(24.7

)%

Loans held for sale, at fair value

2,256,551

2,039,367

4,656,338

10.6

(51.5

)

Servicing rights, at fair value

2,012,049

2,028,788

2,213,700

(0.8

)

(9.1

)

Total assets

6,203,504

6,190,791

9,195,187

0.2

(32.5

)

Warehouse and other lines of credit

2,046,208

1,830,319

4,265,343

11.8

(52.0

)

Total liabilities

5,406,160

5,349,629

7,981,324

1.1

(32.3

)

Total equity

797,344

841,162

1,213,863

(5.2

)

(34.3

)

An increase in loans held for sale at June 30, 2023, resulted in a corresponding increase in the balance on our warehouse lines of credit. Total funding capacity with our lending partners was $3.9 billion at June 30, 2023 and $4.1 billion at March 31, 2023. Available borrowing capacity was $1.7 billion at June 30, 2023.

Consolidated Statements of Operations

($ in thousands except per share data)

(Unaudited)

Three Months Ended

Six Months Ended

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun 30,
2023

Jun 30,
2022

REVENUES:

Interest income

$

33,060

$

27,958

$

62,722

$

61,017

$

115,687

Interest expense

(30,209

)

(26,760

)

(39,923

)

(56,969

)

(79,813

)

Net interest income

2,851

1,198

22,799

4,048

35,874

Gain on origination and sale of loans, net

154,335

108,152

146,562

262,487

509,692

Origination income, net

18,332

12,016

39,108

30,349

98,181

Servicing fee income

117,737

118,961

117,326

236,699

228,385

Change in fair value of servicing rights, net

(38,474

)

(52,806

)

(33,507

)

(91,280

)

(101,890

)

Other income

17,052

20,380

16,351

37,431

41,707

Total net revenues

271,833

207,901

308,639

479,734

811,949

EXPENSES:

Personnel expense

157,799

141,027

296,569

298,826

642,563

Marketing and advertising expense

34,712

35,914

60,837

70,626

162,350

Direct origination expense

17,224

17,378

33,996

34,603

87,153

General and administrative expense

54,817

56,134

63,927

110,951

113,675

Occupancy expense

6,099

6,081

9,388

12,180

18,784

Depreciation and amortization

10,721

10,026

11,323

20,747

21,867

Servicing expense

5,750

4,834

10,741

10,583

32,252

Other interest expense

43,026

43,090

33,140

86,116

47,533

Goodwill impairment

—

—

40,736

—

40,736

Total expenses

330,148

314,484

560,657

644,632

1,166,913

Loss before income taxes

(58,315

)

(106,583

)

(252,018

)

(164,898

)

(354,964

)

Income tax benefit

(8,556

)

(14,862

)

(28,196

)

(23,418

)

(39,823

)

Net loss

(49,759

)

(91,721

)

(223,822

)

(141,480

)

(315,141

)

Net loss attributable to noncontrolling interests

(26,316

)

(48,813

)

(122,894

)

(75,130

)

(179,472

)

Net loss attributable to loanDepot, Inc.

$

(23,443

)

$

(42,908

)

$

(100,928

)

$

(66,350

)

$

(135,669

)

Basic loss per share

$

(0.13

)

$

(0.25

)

$

(0.66

)

$

(0.38

)

$

(0.93

)

Diluted loss per share

$

(0.13

)

$

(0.25

)

$

(0.66

)

$

(0.38

)

...

$

(0.93

)

Consolidated Balance Sheets

($ in thousands)

Jun 30,
2023

Mar 31,
2023

Dec 31,
2022

(Unaudited)

ASSETS

Cash and cash equivalents

$

719,073

$

798,119

$

863,956

Restricted cash

61,294

90,084

116,545

Accounts receivable, net

68,581

99,381

145,279

Loans held for sale, at fair value

2,256,551

2,039,367

2,373,427

Derivative assets, at fair value

80,382

84,624

39,411

Servicing rights, at fair value

2,012,049

2,028,788

2,037,447

Trading securities, at fair value

93,442

95,561

94,243

Property and equipment, net

82,677

88,877

92,889

Operating lease right-of-use asset

34,040

35,362

35,668

Prepaid expenses and other assets

129,675

139,904

155,982

Loans eligible for repurchase

647,418

672,458

634,677

Investments in joint ventures

18,322

18,266

20,410

Total assets

$

6,203,504

$

6,190,791

$

6,609,934

LIABILITIES AND EQUITY

LIABILITIES:

Warehouse and other lines of credit

$

2,046,208

$

1,830,319

$

2,146,602

Accounts payable and accrued expenses

407,356

449,641

488,696

Derivative liabilities, at fair value

8,790

35,662

67,492

Liability for loans eligible for repurchase

647,418

672,458

634,677

Operating lease liability

56,552

57,837

61,675

Debt obligations, net

2,239,836

2,303,712

2,289,319

Total liabilities

5,406,160

5,349,629

5,688,461

EQUITY:

Total equity

797,344

841,162

921,473

Total liabilities and equity

$

6,203,504

$

6,190,791

$

6,609,934

Loan Origination and Sales Data

($ in thousands)

(Unaudited)

Three Months Ended

Six Months Ended

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun 30,
2023

Jun 30,
2022

Loan origination volume by type:

Conventional conforming

$

3,323,678

$

2,893,821

$

10,392,730

$

6,217,499

$

26,105,003

FHA/VA/USDA

2,337,946

1,678,591

3,658,309

4,016,537

7,626,820

Jumbo

148,077

131,066

1,595,843

279,143

3,383,547

Other

463,842

240,859

348,173

704,701

430,416

Total

$

6,273,543

$

4,944,337

$

15,995,055

$

11,217,880

$

37,545,786

Loan origination volume by purpose:

Purchase

$

4,552,919

$

3,512,771

$

9,500,164

$

8,065,690

$

17,530,930

Refinance - cash out

1,614,747

1,324,239

5,669,205

2,938,986

15,498,840

Refinance - rate/term

105,877

107,327

825,686

213,204

4,516,016

Total

$

6,273,543

$

4,944,337

$

15,995,055

$

11,217,880

$

37,545,786

Loans sold:

Servicing retained

$

3,943,845

$

3,277,707

$

10,568,649

$

7,221,552

$

27,691,365

Servicing released

2,134,024

2,118,874

7,342,889

4,252,898

13,088,211

Total

$

6,077,869

$

5,396,581

$

17,911,538

$

11,474,450

$

40,779,576

Loan origination margins:

Gain on sale margin

2.75

%

2.43

%

1.16

%

2.61

%

1.62

%

Second Quarter Earnings Call

Management will host a conference call and live webcast today at 5:00 p.m. ET on loanDepot’s Investor Relations website, investors.loandepot.com, to discuss its earnings results.

The conference call can also be accessed by dialing (888) 440-6385 using conference ID number 2021948. Please call five minutes in advance to ensure that you are connected prior to the call. A replay of the webcast and transcript will also be made available on the Investor Relations website following the conclusion of the event, or can be accessed by dialing (800) 770-2030 following the conclusion of the event through September 7, 2023.

For more information about loanDepot, please visit the company’s Investor Relations website: investors.loandepot.com.

Non-GAAP Financial Measures

To provide investors with information in addition to our results as determined by GAAP, we disclose certain non-GAAP measures to assist investors in evaluating our financial results. We believe these non-GAAP measures provide useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. They facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations in hedging strategies, changes in valuations, capital structures (affecting interest expense on non-funding debt), taxation, the age and book depreciation of facilities (affecting relative depreciation expense), and other cost or benefit items which may vary for different companies for reasons unrelated to operating performance. These non-GAAP measures include our Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share (if dilutive), and Adjusted EBITDA (LBITDA). We exclude from these non-GAAP financial measures the change in fair value of MSRs and related hedging gains and losses as they add volatility and are not indicative of the Company’s operating performance or results of operation. We also exclude stock-based compensation expense, which is a non-cash expense, gains or losses on extinguishment of debt and disposal of fixed assets, non-cash goodwill impairment, and other impairment charges to intangible assets and operating lease right-of-use assets as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA (LBITDA) includes interest expense on funding facilities, which are recorded as a component of "net interest income (expense)", as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest expense on our non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA (LBITDA). Adjustments for income taxes are made to reflect historical results of operations on the basis that it was taxed as a corporation under the Internal Revenue Code, and therefore subject to U.S. federal, state and local income taxes. Adjustments to Diluted Weighted Average Shares Outstanding assumes the pro forma conversion of weighted average Class C shares to Class A common stock. These non-GAAP measures have limitations as analytical tools, and should not be considered in isolation or as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Some of these limitations are:

  • they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;

  • Adjusted EBITDA (LBITDA) does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;

  • although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted Total Revenue, Adjusted Net Income (Loss), and Adjusted EBITDA (LBITDA) do not reflect any cash requirement for such replacements or improvements; and

  • they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows.

Because of these limitations, Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share, and Adjusted EBITDA (LBITDA) are not intended as alternatives to total revenue, net income (loss), net income (loss) attributable to the Company, or Diluted Earnings (Loss) Per Share or as an indicator of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share, and Adjusted EBITDA (LBITDA) along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. See below for a reconciliation of these non-GAAP measures to their most comparable U.S. GAAP measures.

Reconciliation of Total Revenue to Adjusted Total Revenue

($ in thousands)

(Unaudited)

Three Months Ended

Six Months Ended

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun 30,
2023

Jun 30,
2022

Total net revenue

$

271,833

$

207,901

$

308,639

$

479,734

$

811,949

Change in fair value of servicing rights, net of hedging gains and losses(1)

3,876

18,289

(35,366

)

22,165

(34,072

)

Adjusted total revenue

$

275,709

$

226,190

$

273,273

$

501,899

$

777,877

(1) Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses.

Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss)

($ in thousands)

(Unaudited)

Three Months Ended

Six Months Ended

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun 30,
2023

Jun 30,
2022

Net loss attributable to loanDepot, Inc.

$

(23,443

)

$

(42,908

)

$

(100,928

)

$

(66,350

)

$

(135,669

)

Net loss from the pro forma conversion of Class C common shares to Class A common shares (1)

(26,316

)

(48,813

)

(122,894

)

(75,130

)

(179,472

)

Net loss

(49,759

)

(91,721

)

(223,822

)

(141,480

)

(315,141

)

Adjustments to the benefit for income taxes(2)

6,916

13,316

31,952

20,120

46,663

Tax-effected net loss

(42,843

)

(78,405

)

(191,870

)

(121,360

)

(268,478

)

Change in fair value of servicing rights, net of hedging gains and losses(3)

3,876

18,289

(35,366

)

22,165

(34,072

)

Stock-based compensation expense

5,754

5,926

4,712

11,679

7,021

Gain on extinguishment of debt

(39

)

—

—

(39

)

(10,528

)

Loss on disposal of fixed assets

751

261

—

1,012

—

Goodwill impairment

—

—

40,736

—

40,736

Other impairment (recovery)

686

(345

)

5,963

341

5,963

Tax effect of adjustments(4)

(2,514

)

(5,973

)

6,962

(8,421

)

9,103

Adjusted net loss

$

(34,329

)

$

(60,247

)

$

(168,863

)

$

(94,623

)

$

(250,255

)

(1)

Reflects net loss to Class A common stock and Class D common stock from the pro forma exchange of Class C common stock.

(2)

loanDepot, Inc. is subject to federal, state and local income taxes. Adjustments to income tax benefit reflect the effective income tax rates below, and the pro forma assumption that loanDepot, Inc. owns 100% of LD Holdings.

Three Months Ended

Six Months Ended

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun 30,
2023

Jun 30,
2022

Statutory U.S. federal income tax rate

21.00

%

21.00

%

21.00

%

21.00

%

21.00

%

State and local income taxes (net of federal benefit)

5.28

%

6.28

%

5.00

%

5.78

%

5.00

%

Effective income tax rate

26.28

%

27.28

%

26.00

%

26.78

%

26.00

%

(3)

Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses.

(4)

Amounts represent the income tax effect using the aforementioned effective income tax rates, excluding certain discrete tax items. Reporting periods after June 30, 2022 include the income tax effect of excess tax benefits or deficiencies on vested RSUs. Prior periods were adjusted to conform to current presentation.

Reconciliation of Adjusted Diluted Weighted Average Shares Outstanding to Diluted Weighted Average Shares Outstanding

($ in thousands except per share data)

(Unaudited)

Three Months Ended

Six Months Ended

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun 30,
2023

Jun 30,
2022

Net loss attributable to loanDepot, Inc.

$

(23,443

)

$

(42,908

)

$

(100,928

)

$

(66,350

)

$

(135,669

)

Adjusted net loss

(34,329

)

(60,247

)

(168,863

)

(94,623

)

(250,255

)

Share Data:

Diluted weighted average shares of Class A and Class D common stock outstanding

173,908,030

170,809,818

153,822,380

172,358,924

146,415,135

Assumed pro forma conversion of weighted average Class C shares to Class A common stock

148,597,745

149,210,417

165,281,304

149,535,576

173,245,208

Adjusted diluted weighted average shares outstanding

322,505,775

320,020,235

319,103,684

321,894,500

319,660,343

Reconciliation of Net Income (Loss) to Adjusted EBITDA (LBITDA)

($ in thousands)

(Unaudited)

Three Months Ended

Six Months Ended

Jun 30,
2023

Mar 31,
2023

Jun 30,
2022

Jun 30,
2023

Jun 30,
2022

(Unaudited)

(Unaudited)

Net loss

$

(49,759

)

$

(91,721

)

$

(223,822

)

$

(141,480

)

$

(315,141

)

Interest expense - non-funding debt (1)

43,026

43,090

33,140

86,116

47,533

Income tax benefit

(8,556

)

(14,862

)

(28,196

)

(23,418

)

(39,823

)

Depreciation and amortization

10,721

10,026

11,323

20,747

21,867

Change in fair value of servicing rights, net of

hedging gains and losses(2)

3,876

18,289

(35,366

)

22,165

(34,072

)

Stock-based compensation expense

5,754

5,926

4,712

11,679

7,021

Loss on disposal of fixed assets

751

261

—

1,012

—

Goodwill impairment

—

—

40,736

—

40,736

Other impairment (recovery)

686

(345

)

5,963

341

5,963

Adjusted EBITDA (LBITDA)

$

6,499

$

(29,336

)

$

(191,510

)

$

(22,838

)

$

(265,916

)

(1)

Represents other interest expense, which includes gain on extinguishment of debt and amortization of debt issuance costs, in the Company’s consolidated statements of operations.

(2)

Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses.

Forward-Looking Statements

This press release may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, its business strategies, including the Vision 2025 plan, our HELOC product, financial condition and liquidity, competitive position, industry and regulatory environment, potential growth opportunities, the effects of competition, operations and financial performance. You can identify these statements by the use of words such as "outlook," "potential," "continue," "may," "seek," "approximately," "predict," "believe," "expect," "plan," "intend," "estimate," "project," or "anticipate" and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as "will," "should," "would" and "could." These forward-looking statements are based on current available operating, financial, economic and other information, and are not guarantees of future performance and are subject to risks, uncertainties and assumptions, including the risks in the "Risk Factors" section of loanDepot, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Reports on Form 10-Q as well as any subsequent filings with the Securities and Exchange Commission, which are difficult to predict. Therefore, current plans, anticipated actions, financial results, as well as the anticipated development of the industry, may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot does not undertake any obligation to publicly update or revise any forward-looking statement to reflect future events or circumstances, except as required by applicable law.

About loanDepot

loanDepot (NYSE: LDI) is a digital commerce company committed to serving its customers throughout the home ownership journey. Since its launch in 2010, loanDepot has revolutionized the mortgage industry with a digital-first approach that makes it easier, faster and less stressful to purchase or refinance a home. Today, as one of the nation's largest non-bank retail mortgage lenders, loanDepot enables customers to achieve the American dream of homeownership through a broad suite of lending and real estate services that simplify one of life's most complex transactions. With headquarters in Southern California and offices nationwide, loanDepot is committed to serving the communities in which its team lives and works through a variety of local, regional and national philanthropic efforts.

LDI-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20230808066863/en/

Contacts

Investor Relations Contact:
Gerhard Erdelji
Senior Vice President, Investor Relations
(949) 822-4074
gerdelji@loandepot.com

Media Contact:
Rebecca Anderson
Senior Vice President, Communications & Public Relations
(949) 822-4024
rebeccaanderson@loandepot.com

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