loanDepot Q2 Loss Narrows to $6.6M; Cash Drops $108M, $9.7B MSR Sale Planned
LDI is trading near its 52-week low of $0.927 (3.6% above the low) on elevated volume (2.3× avg).
Summary
loanDepot reported a much narrower Q2 loss of $6.6M on higher revenue, but cash dropped $108M and equity fell to $333M. A $9.7B servicing portfolio sale is planned to boost liquidity.
Key Events · Earnings and Guidance · LDI
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Q2 Loss Narrows to $6.6M
Net loss attributable to loanDepot was $4.5M, or $0.02 per share, compared to a $13.4M loss a year ago. Total net revenues rose 19.4% to $337.3M, driven by a 49.5% jump in origination income from HELOC volume.
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Cash Drops $108M to $229M
Cash and cash equivalents fell 32.1% from year-end 2025, primarily due to senior note repurchases, increased collateral requirements, and net losses. Unrestricted cash stands at $229.1M.
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$9.7B Servicing Portfolio Sale Planned
In July 2026, loanDepot agreed to sell $9.7 billion of Agency loans from its servicing portfolio, expected to settle in Q3 2026, to improve liquidity.
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Senior Note Repurchases at a Discount
In June 2026, the company repurchased $6.2M of 2027 Senior Notes at 94.7% of par and $9.9M of 2028 Senior Notes at 86.6% of par. Additional repurchases in July 2026 totaled $5.2M of 2027 Notes at 93.1% and $21.4M of 2028 Notes at 84.1%.
Analysis · LDI · Finance
A much narrower loss of $6.6 million highlights loanDepot's Q2, fueled by an 18% revenue surge and a successful pivot to home equity products. Yet cash reserves tumbled $108 million to $229 million, and total equity contracted to $333 million. To shore up liquidity, the company is selling $9.7 billion of its servicing portfolio, while also repurchasing senior notes at a discount. Separately, the amendment of performance-based stock awards to time-based vesting removes a key incentive tied to share price recovery. With the stock trading near its 52-week low, the combination of declining cash, equity erosion, and a large asset sale signals ongoing financial strain despite the improved operating loss.
At the time of this filing, LDI was trading at $0.96 on NYSE in the Finance sector, with a market capitalization of approximately $318M. The 52-week trading range was $0.93 to $5.05. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.