loanDepot reported a smaller net loss for 2025 as revenue and margins improved, but results weakened in the fourth quarter as margins declined.
The Irvine, California-based mortgage lender’s earnings showed signs of recovery as the company aims to improve volume and market share.
loanDepot posted a net loss of $108 million for the full year, down 47% from a $202 million loss in 2024, primarily driven by higher revenue. Its adjusted net loss totaled $66 million, compared with $95 million a year earlier.
Revenue for the year rose 12% to $1.19 billion, while adjusted revenue increased 10% to $1.21 billion, reflecting higher pull-through weighted lock volume and improved margins. The company’s pull-through weighted gain-on-sale margin increased to 336 basis points, up 19 bps from 2024.
Annual expenses increased 1% to $1.31 billion, which the company said reflected efforts to maintain operating discipline and drive operating efficiencies. Adjusted EBITDA rose 46% to $122 million, up from $84 million in the prior year.
Fourth-quarter figures
loanDepot reported a net loss of $33 million in Q4 2025, compared with a nearly $9 million loss in the third quarter, primarily due to lower revenue. The adjusted net loss totaled $21.5 million, compared with $3 million in Q3 2025.
Quarterly revenue declined 4% to $310 million, while adjusted revenue fell 3% to $316 million, reflecting a decline in the pull-through weighted gain-on-sale margin, which fell from 339 to 324 bps during the three-month period.
Loan origination volume increased 23% in Q4 2025 to $8.04 billion, the company’s highest level since 2022. Purchase volume, however, accounted for only 49% of loans originated during the fourth quarter, down from 60% during the third quarter. Market share, meanwhile, rose 19% from the prior quarter to 1.4%.
“In the fourth quarter, we originated the most volume since 2022, gained share in an expanding market and achieved a 71% recapture rate from our in-house servicing platform,” loanDepot founder and CEO Anthony Hsieh said during Tuesday’s earnings call. “These results reflect progress in our return to the core competencies that enabled the scaling to become the second largest retail lender nationally during our first decade.
“Behind the scenes, we remained focused on reducing unit costs through operating leverage and automation, while investing in our marketing engine to drive more opportunities to the top of the funnel,” Hsieh added.
According to chief financial officer David Hayes, “the fourth quarter reflected the emerging benefits of our investment in technology and operating efficiency during a period of higher volumes. … We increased adjusted revenue by 10% year-over-year while limiting expense growth to less than 1%, contributing to a 31% reduction in adjusted net loss.
“As a result of this progress, we entered 2026 as a fundamentally stronger company than we were in 2025.”
During the call, Hayes limited his commentary to focus on the fourth quarter. He noted that quarterly expenses increased 3% to $342 million, driven mainly by personnel costs, which were partially offset by a decrease in some volume-related expenses.
Adjusted EBITDA declined to $29 million, down from $49 million in the third quarter.
The company ended Q4 2025 with $337 million in cash, down from $459 million in the previous quarter and “primarily reflecting investment in our loan inventory and full repayment of outstanding 2025 unsecured notes.”
“Our pull-through weighted gain-on-sale margin for the fourth quarter came in at 324 basis points, at the high end of our guidance range of 300 to 325 basis points, but down compared to 339 basis points in the prior quarter,” Hayes said.
The company projects mortgage origination volume of $6.75 billion to $7.75 billion in the first quarter of 2026.
The earnings report came just a day after loanDepot confirmed that, four years after exiting the broker channel, it had relaunched its wholesale division under the leadership of Dan Peña, the company’s president of partnership lending. The move was first anticipated in August by HousingWire.
loanDepot originally shut down its wholesale division in August 2022 after Frank Martell became CEO. The relaunch follows Hsieh’s return to lead loanDepot’s day-to-day operations in Q1 2025. Hsieh officially reclaimed the CEO’s role on a permanent basis at the end of July.