Velocity Financial Earnings Call Transcripts
Fiscal Year 2026
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The meeting confirmed a legal quorum and approved all proposals, including director reelections, executive compensation for 2025, and the ratification of the independent auditor for 2026. Final vote counts will be disclosed in the meeting minutes and on Form 8-K.
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Q1 2026 saw 30% year-over-year core net income growth, a 25.6% increase in the loan portfolio, and a stable 3.56% NIM. Liquidity and capital strength improved with a $500 million unsecured debt issuance, while origination volumes and ROE are expected to remain strong through 2026.
Fiscal Year 2025
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Record 2025 results included 52% net income growth, 49% higher originations, and a 28% larger portfolio, with robust liquidity and capital markets support. NPLs declined, margins remained stable, and management expects continued growth in 2026.
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Record pre-tax earnings and loan production marked a strong Q3, with net income up 60% year-over-year and stable credit metrics. Funding sources diversified through a new securitization, and liquidity and capital positions remain robust.
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Record net income and loan production drove strong revenue and portfolio growth, with NIM and ROE reaching new highs. Liquidity and capital markets activity were robust, and management expects continued growth, supported by technology investments and a diversified portfolio.
Fiscal Year 2024
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Record 2024 results with 64% origination growth, 37% higher net revenue, and strong Q4 ROE. Portfolio reached $5.1B, NPL resolutions drove gains, and liquidity remains robust. 2025 outlook is positive with continued demand and capital market tailwinds.
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Record origination and portfolio growth drove a 31% earnings increase year-over-year, with strong credit performance and robust liquidity. The company expects to surpass its $5 billion UPB goal by 2025, supported by a healthy pipeline and favorable market conditions.
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Net revenue rose 41% year-over-year, with core earnings up 23% and loan originations up 63%. Margins and credit standards held firm, while two securitizations and strong liquidity position support continued growth. Securitization and real estate markets remain favorable.