Velocity Financial Reports Q2 2026 Earnings: EPS Up Sequentially, NPLs Decline
VEL is trading near its 52-week low of $16.27 (8.8% above the low).
Summary
Velocity Financial reported Q2 2026 diluted EPS of $0.64, an increase from Q1, with nonperforming loans decreasing and book value per share growing significantly year-over-year.
Key Events · Earnings and Guidance · VEL
-
Q2 2026 Diluted EPS
Reported diluted EPS of $0.64, an increase from $0.57 in Q1 2026, but a decrease from $0.69 in Q2 2025.
-
Nonperforming Loans (NPLs) Decline
NPLs as a percentage of Held for Investment (HFI) loans decreased to 9.6% as of June 30, 2026, down from 10.3% in Q2 2025.
-
Loan Portfolio Growth
Total loan portfolio increased 19.2% year-over-year to $7.0 billion in Unpaid Principal Balance (UPB).
-
Book Value Per Share Increase
Diluted book value per share rose to $18.43 as of June 30, 2026, an 18.0% increase from $15.62 in Q2 2025.
Analysis · VEL · Finance
Velocity Financial's second quarter 2026 results show a sequential improvement in diluted EPS and a reduction in nonperforming loans, addressing a key concern from the previous quarter. While year-over-year diluted EPS saw a slight decline, the company demonstrated strong growth in its total loan portfolio and book value per share, alongside successful securitization activities that bolster its funding and liquidity.
At the time of this filing, VEL was trading at $17.70 on NYSE in the Finance sector, with a market capitalization of approximately $694.6M. The 52-week trading range was $16.27 to $21.40. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.