As Anthony Hsieh returns to the helm, loanDepot announces $202M loss in 2024

In Q4 2024, loanDepot’s gross revenue increased 13% to $257 million and its adjusted revenue increased 6% to $267 million compared to the same period in 2023. But the company also reported a net loss of $67.5 million during the fourth quarter, up from a loss of $60 million in the final quarter of 2023.

Its loan origination volume totaled $7.2 billion in Q4 2024, an increase of $1.8 billion or 34% from Q4 2023. Purchase volume accounted for 58% of loans originated during Q4 2024, down from 76% in Q4 2023. loanDepot said this is a reflection of the increased demand for refinances during a period of lower interest rates seen in Q3 2024 — deals that were still being closed during the fourth quarter.

“2024 was a successful year for loanDepot from a financial point of view,” said David Hayes, the company’s chief financial officer. “We grew revenue, expanded margins, reduced our corporate debt and made important investments in productivity initiatives that benefited the year.

“Importantly, during the third quarter, we demonstrated our significant operational progress by achieving profitability during a period of modest market improvement. Our investments in products and operating leverage will provide the foundation for additional momentum in 2025 and beyond.”

loanDepot also saw an adjusted net loss of $47 million in Q4 2024, up from the loss of $27 million in Q4 2023.

For all of 2024, loanDepot cut its losses to $202 million, including $25 million of losses related to a cybersecurity incident. This was an improvement from a net loss of $236 million in 2023. The company’s adjusted net loss was $95 million, an improvement compared with the $152 million loss in 2023.

The lender is also undergoing a leadership shakeup. Just last week, loanDepot founder and controlling shareholder Anthony Hsieh returned as executive chairman of mortgage operations, while CEO Frank Martell announced his pending departure.

Martell will step down as of June 4 and transition to a board advisory role. Hsieh will serve as interim CEO if a successor isn’t appointed by then. The board is working with an executive search firm to find a new CEO.

In the earnings release, Martell touted the company’s “significant progress” made throughout 2024, citing the completion of its Vision 2025 program.

“The strategic imperatives of Vision 2025 served as our road map for successfully navigating the historical downturn in the housing and mortgage markets over the past three years,” Martell said.

“As the company enters 2025, I believe team loanDepot is positioned to accelerate revenue growth and continue our progress toward sustainable profitability under the auspices of Project North Star that we announced in November 2024, and under Anthony Hsieh’s new leadership that was announced last week.”

Financial highlights of Q4 2024 included loanDepot’s expanded network of joint venture partnerships, namely with Smith Douglas Homes and Onx Homes. The company also touted a strong liquidity profile with a cash balance of $422 million.

For the full year of 2024, loanDepot’s revenue increased 9% to $1.06 billion and its adjusted revenue increased 10% to $1.10 billion. Moving into Q1 2025, loanDepot anticipates an origination volume of $4.5 billion to $5.5 billion.