loanDepot reported a significantly narrowed loss for the second quarter of 2025, driven by a marked increase in loan origination volume and reductions in non-volume-related expenses. The results come as the company leans into a digital transformation strategy under newly reappointed CEO and founder Anthony Hsieh.
“We need to return to growth, gaining profitable market share, and penetrating new markets — and that needs to be powered by new technology and operating efficiencies, all of which I believe will position us to once again disrupt and redefine the industry,” Hsieh said on an earnings call Thursday evening.
Second-quarter loan origination volume rose to $6.7 billion, up 30% quarter-over-quarter from Q1’s $5.2 billion, and up 10.6% year-over-year from $6.1 billion in Q2 2024. Purchase loans accounted for 63% of the total, compared to 59% in Q1 and 72% in Q2 2024.
Rate lock volume rose to $8.56 billion, versus $7.64 billion in Q1 and $8.3 billion a year earlier. Pull-through weighted lock volume climbed to $6.35 billion, up 17% from Q1 and 9.8% year-over-year.
Despite a drop in pull-through weighted gain-on-sale margin to 3.30% from 3.55% in Q1, the metric remained above the 3.22% posted in Q2 2024.
The company’s net loss narrowed to $25 million, a 38% improvement from Q1’s $41 million and down from a $66 million loss in Q2 2024. On an adjusted basis, loanDepot posted a $16 million loss, compared with $25 million in Q1 and $15.9 million in the same quarter last year.
Adjusted EBITDA totaled $26 million, up from $18 million in Q1 but below $34.6 million in Q2 2024, reflecting progress in cost containment despite a still-tight margin environment.
"We continued to narrow our loss in the second quarter, thanks to both higher adjusted revenue and lower expenses," said CFO David Hayes. "Our continued focus on productivity and efficiency initiatives was evident in lower direct origination expenses, even as origination volumes increased."
Volume-related expenses rose 12% to $114 million but stayed well below the 30% growth in origination, showing improved operating leverage. Non-volume-related expenses declined by $17.3 million from Q1, due to one-time savings in salary and general and administrative expenses.
Tech, Talent, And Transformation
The Q2 earnings release comes on the heels of strategic leadership changes, including the return of Dominick Marchetti as Chief Digital Officer and Sean DeJulia as Chief Innovation Officer, both key architects of loanDepot’s mello platform during its initial growth period.
“Dom is someone that I trust deeply who has a proven track record of delivering next-generation capabilities and with whom I am completely aligned in how we think about the business,” Hsieh noted of Marchetti. “Among the many things that set him apart are his expansive knowledge, his incredible industry relationships, and his ability to harness technology and innovation to build and run an exceptional mortgage business.”
Hsieh also gave a nod to DeJulia on the call: “There are very few who match the type of mortgage IQ Sean has — namely deep competitive knowledge and big-picture thinking, combined with top-tier coding talent and first-hand experience as an originator.”
“My focus is to return to our roots and drive profitable market share growth fueled by technology innovations,” Hsieh stated in the earnings release. He emphasized the company’s “nationally recognized brand,” “diversified channel strategy,” and “exceptional customer experience” as critical differentiators in an evolving tech landscape.
Hsieh also announced the upcoming retirement of LDI Mortgage President Jeff Walsh in September, thanking him for 12 years of leadership across loanDepot’s production channels.
Q3 Outlook: Slight Volume Pullback Expected
Looking ahead, loanDepot projects Q3 loan originations between $5.0 billion and $7.0 billion, and pull-through weighted lock volume between $5.25 billion and $7.25 billion, with a gain-on-sale margin between 3.25% and 3.50%.
The company ended Q2 with a $409 million cash balance, up from $371 million in Q1, though down from $533 million a year ago. The servicing portfolio UPB reached $117.5 billion, up 2.9% from Q2 2024, while servicing fee income came in at $108.2 million, a decline from $125.1 million in the year-ago quarter.
Though not yet profitable, loanDepot’s Q2 trajectory suggests positive momentum, supported by a clearer focus on cost discipline, digital strategy, and leadership alignment.
