Velocity Financial, Inc. (VEL) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 07 2025
0mins
Should l Buy VEL?
Source: SeekingAlpha
Pretax Earnings Increased by 66.5% year-over-year. This growth was attributed to strong market momentum, disciplined credit management, and attractive risk-adjusted spreads.
Net Income Increased by 60% year-over-year. This was driven by record production volumes and stable portfolio NIM.
Core Diluted EPS Reported at $0.69 per share, reflecting strong earnings performance.
Production Volumes Reached a record $739 million, a 32% net increase year-over-year after accounting for prepayments. This growth was due to strong demand for the company's products.
New Applications Exceeded $1.4 billion for the quarter, indicating robust market demand.
Nonperforming Loans Decreased to 9.8% from 10.6% year-over-year, reflecting effective credit management and resolution efforts.
NPA Resolution Gains Totaled $2.8 million for the quarter, averaging 3.8% quarterly gains over the last 5 quarters. This was due to strong collection efforts by the special servicing department.
Loan Portfolio Increased to $6.3 billion in UPB, a 32% year-over-year growth even after netting out prepayments. The weighted average coupon was 9.74%, up 37 basis points year-over-year.
Portfolio NIM Maintained at 3.65%, consistent with the last 5-quarter average of 3.62%. This stability was due to a healthy spread between portfolio yield and cost of funds.
Liquidity Total liquidity was $144 million, with $99 million in cash and cash equivalents and $45 million in available liquidity on unfinanced collateral. Warehouse line capacity increased to $935 million, up $125 million from Q2.
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Analyst Views on VEL
Wall Street analysts forecast VEL stock price to rise
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 19.750
Low
22.00
Averages
22.50
High
23.00
Current: 19.750
Low
22.00
Averages
22.50
High
23.00
About VEL
Velocity Financial, Inc. is a vertically integrated real estate finance company that primarily originates and manages business purpose loans secured by 1-4-unit residential rental and small commercial properties. It originates loans nationwide across an extensive network of independent mortgage brokers. The Company's portfolio provides loans held for investment. The Company’s typical investor real estate loan is secured by a first lien on the underlying property with the added protection of a personal guarantee. Its portfolio of loans held for investment totaled $5.1 billion of unpaid principal balance (UPB) on properties in 45 states and the District of Columbia. Th Company funds its portfolio primarily through a combination of committed and uncommitted secured warehouse facilities, securitized debt, corporate debt and equity.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Velocity Financial Closes $500 Million Senior Notes Offering
- Offering Size and Rate: Velocity Financial successfully closed a $500 million offering of 9.375% Senior Notes sold at 100% of principal, reflecting strong market confidence in its financing capabilities and expected to enhance the company's capital structure.
- Use of Proceeds: The company intends to allocate approximately $222.7 million of the net proceeds to redeem its outstanding 7.125% Senior Secured Notes due 2027, aiming to reduce interest burdens and optimize its debt structure, thereby enhancing financial flexibility.
- Interest Payment Schedule: Interest on the Notes will begin accruing from January 30, 2026, with the first payment scheduled for August 15, 2026, and the semi-annual payment structure is expected to provide stable cash flow to support operational and investment needs.
- Compliance and Market Positioning: The offering complies with the Securities Act of 1933, targeting qualified institutional buyers, indicating the company's adherence to capital market regulations and its appeal to high-end investors, which may enhance brand image and market trust.
See More
Velocity Financial to Release Q4 and Full Year 2025 Results on March 11, 2026
- Earnings Release Schedule: Velocity Financial will release its Q4 and full year 2025 financial results after market close on March 11, 2026, providing investors with critical financial data and business performance insights.
- Conference Call Details: The executive management team will host a conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on the same day to review the financial results, enhancing investor confidence in the company's future prospects.
- Webcast Information: The conference call will be webcast live on the company's investor relations website, requiring investors to register and install necessary software at least 15 minutes prior to ensure smooth participation.
- Replay Service: An audio replay of the call will be available on the company's website following the conference, accessible until March 27, 2026, providing convenience for investors who could not attend live.
See More
Velocity Financial to Release Q4 and Full Year 2025 Results
- Earnings Release Schedule: Velocity Financial will release its Q4 and full year 2025 financial results after market close on March 11, 2026, providing investors with critical financial data and future outlook.
- Conference Call Details: The executive management team will host a conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on the same day to review the financial results, enhancing investor understanding and confidence in the company's performance.
- Webcast Information: The conference call will be webcast live on the company's investor relations website, requiring investors to register and install necessary software at least 15 minutes prior to ensure smooth participation.
- Replay Arrangement: An audio replay of the call will be available on the company's website until March 27, 2026, allowing investors who could not attend live to access the information.
See More
Velocity Financial Issues $500 Million Senior Notes
- Issuance Size: Velocity Commercial Capital, LLC successfully priced $500 million of 9.375% Senior Notes at an offering price equal to 100% of the principal, expected to close on January 30, 2026, indicating strong demand in the capital markets for the company.
- Use of Proceeds: The company plans to use approximately $222.7 million of the net proceeds to redeem its outstanding 7.125% Senior Secured Notes due 2027, with the remainder allocated for general corporate purposes, including repaying a portion of outstanding borrowings, aimed at optimizing its capital structure.
- Interest Payment Arrangement: The notes will pay an annual interest rate of 9.375%, with the first payment scheduled for August 15, 2026, which is expected to enhance the company's cash flow management capabilities and support future business expansion.
- Compliance Statement: The notes are not registered under the Securities Act and are offered only to individuals reasonably believed to be qualified institutional buyers, ensuring the company raises capital within a compliant framework and mitigates legal risks.
See More
Velocity Financial to Offer $500 Million Senior Notes
- Financing Plan: Velocity Commercial Capital plans to issue up to $500 million in senior notes through a private placement, intending to use approximately $222.7 million to redeem its 7.125% senior secured notes due 2027, thereby optimizing its capital structure and reducing financing costs.
- Potential Acquisition: The company indicated that up to $75 million of the proceeds could be allocated towards a potential business acquisition under consideration, which could not only enhance the company's competitive position but also provide new revenue streams for future growth.
- Quarterly Performance: For Q4 2025, the company expects net income of at least $35 million, a 70% increase year-over-year, with diluted earnings per share of at least $0.90, reflecting strong performance in loan originations and net interest margin, with total loan originations around $635 million.
- Annual Performance: For the full year 2025, net income is projected to be at least $105 million, up 53% year-over-year, with diluted earnings per share of at least $2.75, indicating stable growth in loan portfolio and interest margin, with an unpaid principal balance of $6.49 billion, up 28% from last year.
See More
Velocity Financial Announces Preliminary 2025 Results
- Net Income Surge: Velocity anticipates a net income of at least $35 million for Q4 2025, representing a 70% increase year-over-year, which underscores the company's robust performance in the investor real estate loan market and solidifies its market leadership.
- Earnings Per Share Growth: The expected GAAP earnings per diluted share for Q4 2025 is at least $0.90, a 56% increase compared to the same period in 2024, reflecting a significant enhancement in profitability that could attract more investor interest.
- Loan Origination Innovation: Total loan originations for 2025 are projected to be approximately $2.716 billion, marking a 48% increase, indicating the company's success in meeting market demand and strengthening its position in the competitive real estate loan sector.
- Increased Shareholder Equity: As of December 31, 2025, shareholder equity is expected to be at least $675 million, a 30% increase from the previous year, which not only enhances the company's financial stability but also provides a stronger capital base for future expansion and investments.
See More
Velocity Financial Closes $500 Million Senior Notes Offering
- Offering Size and Rate: Velocity Financial successfully closed a $500 million offering of 9.375% Senior Notes sold at 100% of principal, reflecting strong market confidence in its financing capabilities and expected to enhance the company's capital structure.
- Use of Proceeds: The company intends to allocate approximately $222.7 million of the net proceeds to redeem its outstanding 7.125% Senior Secured Notes due 2027, aiming to reduce interest burdens and optimize its debt structure, thereby enhancing financial flexibility.
- Interest Payment Schedule: Interest on the Notes will begin accruing from January 30, 2026, with the first payment scheduled for August 15, 2026, and the semi-annual payment structure is expected to provide stable cash flow to support operational and investment needs.
- Compliance and Market Positioning: The offering complies with the Securities Act of 1933, targeting qualified institutional buyers, indicating the company's adherence to capital market regulations and its appeal to high-end investors, which may enhance brand image and market trust.
See More
Velocity Financial to Release Q4 and Full Year 2025 Results on March 11, 2026
- Earnings Release Schedule: Velocity Financial will release its Q4 and full year 2025 financial results after market close on March 11, 2026, providing investors with critical financial data and business performance insights.
- Conference Call Details: The executive management team will host a conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on the same day to review the financial results, enhancing investor confidence in the company's future prospects.
- Webcast Information: The conference call will be webcast live on the company's investor relations website, requiring investors to register and install necessary software at least 15 minutes prior to ensure smooth participation.
- Replay Service: An audio replay of the call will be available on the company's website following the conference, accessible until March 27, 2026, providing convenience for investors who could not attend live.
See More
Velocity Financial to Release Q4 and Full Year 2025 Results
- Earnings Release Schedule: Velocity Financial will release its Q4 and full year 2025 financial results after market close on March 11, 2026, providing investors with critical financial data and future outlook.
- Conference Call Details: The executive management team will host a conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on the same day to review the financial results, enhancing investor understanding and confidence in the company's performance.
- Webcast Information: The conference call will be webcast live on the company's investor relations website, requiring investors to register and install necessary software at least 15 minutes prior to ensure smooth participation.
- Replay Arrangement: An audio replay of the call will be available on the company's website until March 27, 2026, allowing investors who could not attend live to access the information.
See More
Velocity Financial Issues $500 Million Senior Notes
- Issuance Size: Velocity Commercial Capital, LLC successfully priced $500 million of 9.375% Senior Notes at an offering price equal to 100% of the principal, expected to close on January 30, 2026, indicating strong demand in the capital markets for the company.
- Use of Proceeds: The company plans to use approximately $222.7 million of the net proceeds to redeem its outstanding 7.125% Senior Secured Notes due 2027, with the remainder allocated for general corporate purposes, including repaying a portion of outstanding borrowings, aimed at optimizing its capital structure.
- Interest Payment Arrangement: The notes will pay an annual interest rate of 9.375%, with the first payment scheduled for August 15, 2026, which is expected to enhance the company's cash flow management capabilities and support future business expansion.
- Compliance Statement: The notes are not registered under the Securities Act and are offered only to individuals reasonably believed to be qualified institutional buyers, ensuring the company raises capital within a compliant framework and mitigates legal risks.
See More
Velocity Financial to Offer $500 Million Senior Notes
- Financing Plan: Velocity Commercial Capital plans to issue up to $500 million in senior notes through a private placement, intending to use approximately $222.7 million to redeem its 7.125% senior secured notes due 2027, thereby optimizing its capital structure and reducing financing costs.
- Potential Acquisition: The company indicated that up to $75 million of the proceeds could be allocated towards a potential business acquisition under consideration, which could not only enhance the company's competitive position but also provide new revenue streams for future growth.
- Quarterly Performance: For Q4 2025, the company expects net income of at least $35 million, a 70% increase year-over-year, with diluted earnings per share of at least $0.90, reflecting strong performance in loan originations and net interest margin, with total loan originations around $635 million.
- Annual Performance: For the full year 2025, net income is projected to be at least $105 million, up 53% year-over-year, with diluted earnings per share of at least $2.75, indicating stable growth in loan portfolio and interest margin, with an unpaid principal balance of $6.49 billion, up 28% from last year.
See More
Velocity Financial Announces Preliminary 2025 Results
- Net Income Surge: Velocity anticipates a net income of at least $35 million for Q4 2025, representing a 70% increase year-over-year, which underscores the company's robust performance in the investor real estate loan market and solidifies its market leadership.
- Earnings Per Share Growth: The expected GAAP earnings per diluted share for Q4 2025 is at least $0.90, a 56% increase compared to the same period in 2024, reflecting a significant enhancement in profitability that could attract more investor interest.
- Loan Origination Innovation: Total loan originations for 2025 are projected to be approximately $2.716 billion, marking a 48% increase, indicating the company's success in meeting market demand and strengthening its position in the competitive real estate loan sector.
- Increased Shareholder Equity: As of December 31, 2025, shareholder equity is expected to be at least $675 million, a 30% increase from the previous year, which not only enhances the company's financial stability but also provides a stronger capital base for future expansion and investments.
See More
