Velocity Financial Ratings Upgraded Amid Stable Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 44 minutes ago
0mins
Source: Newsfilter
- Rating Upgrades: Kroll Bond Rating Agency's review of 30 securitizations from Velocity Commercial Capital resulted in 27 upgrades, indicating strong market performance and increased investor confidence in the company.
- Enhanced Credit Support: The affirmations reflect generally stable collateral performance with minimal losses since issuance, with cumulative loss levels ranging from 0.00% to 0.95%, and 9 out of 30 experiencing no losses, showcasing robust asset quality.
- Increased Investor Interest: Jeff Taylor noted that the outstanding performance of Velocity's securitizations has driven positive ratings momentum, attracting greater investor interest and indicating strong market confidence in the company's future growth.
- Risk Management Strategies: Velocity's disciplined collateral value management and proprietary loss mitigation strategies have ensured consistently low cumulative losses, further validating the company's risk management capabilities as its portfolio expands.
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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: 18.640
Low
22.00
Averages
22.50
High
23.00
Current: 18.640
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 Ratings Upgraded Amid Stable Performance
- Rating Upgrades: Kroll Bond Rating Agency's review of 30 securitizations from Velocity Commercial Capital resulted in 27 upgrades, indicating strong market performance and increased investor confidence in the company.
- Enhanced Credit Support: The affirmations reflect generally stable collateral performance with minimal losses since issuance, with cumulative loss levels ranging from 0.00% to 0.95%, and 9 out of 30 experiencing no losses, showcasing robust asset quality.
- Increased Investor Interest: Jeff Taylor noted that the outstanding performance of Velocity's securitizations has driven positive ratings momentum, attracting greater investor interest and indicating strong market confidence in the company's future growth.
- Risk Management Strategies: Velocity's disciplined collateral value management and proprietary loss mitigation strategies have ensured consistently low cumulative losses, further validating the company's risk management capabilities as its portfolio expands.
See More
Velocity Financial Appoints New CTO to Drive Technology Modernization
- Leadership Change: Velocity Financial has appointed Dean Thevaos as Chief Technology Officer effective June 1, tasked with leading the technology and engineering organization to modernize the platform and enhance product capabilities, thereby supporting efficient and scalable growth.
- Technical Expertise: Thevaos is highly regarded in the financial services technology sector, boasting over 20 years of experience successfully translating complex technical strategies into measurable business outcomes, particularly in mortgage and consumer lending sectors.
- Strategic Goals: CEO Chris Farrar emphasized that Thevaos's leadership skills and understanding of technology investments will directly impact the company's portfolio performance and operational efficiency, driving growth in a competitive market.
- Extensive Experience: Prior to joining Velocity, Thevaos served as CTO at America's largest retail mortgage lender, overseeing enterprise technology and product management, successfully modernizing core lending platforms to improve deployment speed and system resilience.
See More
Velocity Financial Q1 Earnings Beat Expectations with Strong Revenue Growth
- Earnings Highlights: Velocity Financial reported Q1 GAAP EPS of $0.57, missing estimates by $0.04, yet revenue reached $85.2 million, a 23.3% year-over-year increase, exceeding expectations by $31.38 million, indicating strong market performance.
- Core Net Income Growth: Core net income stood at $26.5 million, up 30.8% from $20.3 million in Q1 2025, reflecting effective strategies in cost control and revenue enhancement.
- EPS Improvement: Core diluted EPS rose to $0.68 from $0.55 in Q1 2025, demonstrating ongoing improvements in profitability and bolstering investor confidence.
- Increased Asset Value: As of March 31, 2025, diluted book value per common share was $17.75, a 19.4% increase from $14.87, showcasing enhanced asset quality and financial stability.
See More
Velocity Financial Q1 2026 Earnings Call Highlights
- Strong Financial Performance: In Q1 2026, Velocity Financial reported a core net income increase of 30% year-over-year, demonstrating the company's ability to maintain profitability amid economic volatility, which boosts investor confidence.
- Successful Debt Issuance: The company executed its first-ever issuance of $500 million in unsecured corporate debt rated by Moody's and Fitch, significantly reducing reliance on shorter-term warehouse debt and providing financial support for future growth.
- Loan Portfolio Growth: As of March 31, the total loan portfolio reached $6.8 billion, reflecting a 5.3% increase from the previous quarter and a 25.6% year-over-year growth, indicating the company's ongoing business expansion and market share enhancement.
- Stable Net Interest Margin: The net interest margin for Q1 was 3.56%, consistent with the previous quarter's 3.59%, showcasing the company's ability to maintain stable profitability in changing interest rate environments, with expectations to sustain this level throughout the year.
See More
Velocity Financial Reports Q4 Profit Increase
- Significant Profit Growth: Velocity Financial's fourth-quarter net profit reached $34.79 million, translating to earnings per share of $0.89, marking a substantial increase from last year's $20.58 million and $0.57 per share, indicating a notable enhancement in the company's profitability.
- Adjusted Earnings Performance: Excluding special items, Velocity Financial reported adjusted earnings of $36.32 million, or $0.93 per share, further reflecting the company's strong performance in its core business operations.
- Substantial Revenue Increase: The company's revenue for the fourth quarter rose by 44.6% to $102.90 million, compared to $71.16 million last year, demonstrating success in market demand and sales strategies.
- Optimistic Market Outlook: With both revenue and profit growth, Velocity Financial showcases strong market competitiveness, and is expected to continue benefiting from industry growth and rising customer demand.
See More
Velocity Financial Reports Strong Q4 Earnings Beat
- Earnings Beat: Velocity Financial reported a Q4 Non-GAAP EPS of $0.93, exceeding expectations by $0.26, which highlights a significant improvement in profitability and is likely to bolster investor confidence moving forward.
- Significant Revenue Growth: The company achieved revenue of $102.9 million in Q4, representing a 44.6% year-over-year increase, reflecting its competitive position and successful business expansion, which may attract further investor interest.
- Positive Stock Performance: Following the earnings release, Velocity Financial's shares rose by 3.18% in after-hours trading, indicating a favorable market reaction to the company's performance, potentially driving future investment and market performance.
- Bond Offering Announcement: The company plans to issue $500 million of senior notes due in 2031, which not only provides funding for future expansion but also enhances its capital structure and financial flexibility, positioning it for sustained growth.
See More
Velocity Financial Ratings Upgraded Amid Stable Performance
- Rating Upgrades: Kroll Bond Rating Agency's review of 30 securitizations from Velocity Commercial Capital resulted in 27 upgrades, indicating strong market performance and increased investor confidence in the company.
- Enhanced Credit Support: The affirmations reflect generally stable collateral performance with minimal losses since issuance, with cumulative loss levels ranging from 0.00% to 0.95%, and 9 out of 30 experiencing no losses, showcasing robust asset quality.
- Increased Investor Interest: Jeff Taylor noted that the outstanding performance of Velocity's securitizations has driven positive ratings momentum, attracting greater investor interest and indicating strong market confidence in the company's future growth.
- Risk Management Strategies: Velocity's disciplined collateral value management and proprietary loss mitigation strategies have ensured consistently low cumulative losses, further validating the company's risk management capabilities as its portfolio expands.
See More
Velocity Financial Appoints New CTO to Drive Technology Modernization
- Leadership Change: Velocity Financial has appointed Dean Thevaos as Chief Technology Officer effective June 1, tasked with leading the technology and engineering organization to modernize the platform and enhance product capabilities, thereby supporting efficient and scalable growth.
- Technical Expertise: Thevaos is highly regarded in the financial services technology sector, boasting over 20 years of experience successfully translating complex technical strategies into measurable business outcomes, particularly in mortgage and consumer lending sectors.
- Strategic Goals: CEO Chris Farrar emphasized that Thevaos's leadership skills and understanding of technology investments will directly impact the company's portfolio performance and operational efficiency, driving growth in a competitive market.
- Extensive Experience: Prior to joining Velocity, Thevaos served as CTO at America's largest retail mortgage lender, overseeing enterprise technology and product management, successfully modernizing core lending platforms to improve deployment speed and system resilience.
See More
Velocity Financial Q1 Earnings Beat Expectations with Strong Revenue Growth
- Earnings Highlights: Velocity Financial reported Q1 GAAP EPS of $0.57, missing estimates by $0.04, yet revenue reached $85.2 million, a 23.3% year-over-year increase, exceeding expectations by $31.38 million, indicating strong market performance.
- Core Net Income Growth: Core net income stood at $26.5 million, up 30.8% from $20.3 million in Q1 2025, reflecting effective strategies in cost control and revenue enhancement.
- EPS Improvement: Core diluted EPS rose to $0.68 from $0.55 in Q1 2025, demonstrating ongoing improvements in profitability and bolstering investor confidence.
- Increased Asset Value: As of March 31, 2025, diluted book value per common share was $17.75, a 19.4% increase from $14.87, showcasing enhanced asset quality and financial stability.
See More
Velocity Financial Q1 2026 Earnings Call Highlights
- Strong Financial Performance: In Q1 2026, Velocity Financial reported a core net income increase of 30% year-over-year, demonstrating the company's ability to maintain profitability amid economic volatility, which boosts investor confidence.
- Successful Debt Issuance: The company executed its first-ever issuance of $500 million in unsecured corporate debt rated by Moody's and Fitch, significantly reducing reliance on shorter-term warehouse debt and providing financial support for future growth.
- Loan Portfolio Growth: As of March 31, the total loan portfolio reached $6.8 billion, reflecting a 5.3% increase from the previous quarter and a 25.6% year-over-year growth, indicating the company's ongoing business expansion and market share enhancement.
- Stable Net Interest Margin: The net interest margin for Q1 was 3.56%, consistent with the previous quarter's 3.59%, showcasing the company's ability to maintain stable profitability in changing interest rate environments, with expectations to sustain this level throughout the year.
See More
Velocity Financial Reports Q4 Profit Increase
- Significant Profit Growth: Velocity Financial's fourth-quarter net profit reached $34.79 million, translating to earnings per share of $0.89, marking a substantial increase from last year's $20.58 million and $0.57 per share, indicating a notable enhancement in the company's profitability.
- Adjusted Earnings Performance: Excluding special items, Velocity Financial reported adjusted earnings of $36.32 million, or $0.93 per share, further reflecting the company's strong performance in its core business operations.
- Substantial Revenue Increase: The company's revenue for the fourth quarter rose by 44.6% to $102.90 million, compared to $71.16 million last year, demonstrating success in market demand and sales strategies.
- Optimistic Market Outlook: With both revenue and profit growth, Velocity Financial showcases strong market competitiveness, and is expected to continue benefiting from industry growth and rising customer demand.
See More
Velocity Financial Reports Strong Q4 Earnings Beat
- Earnings Beat: Velocity Financial reported a Q4 Non-GAAP EPS of $0.93, exceeding expectations by $0.26, which highlights a significant improvement in profitability and is likely to bolster investor confidence moving forward.
- Significant Revenue Growth: The company achieved revenue of $102.9 million in Q4, representing a 44.6% year-over-year increase, reflecting its competitive position and successful business expansion, which may attract further investor interest.
- Positive Stock Performance: Following the earnings release, Velocity Financial's shares rose by 3.18% in after-hours trading, indicating a favorable market reaction to the company's performance, potentially driving future investment and market performance.
- Bond Offering Announcement: The company plans to issue $500 million of senior notes due in 2031, which not only provides funding for future expansion but also enhances its capital structure and financial flexibility, positioning it for sustained growth.
See More
