Annual expenses rose 1% to $1.31 billion, which the company said reflected efforts to maintain operational discipline and drive efficiencies. Adjusted EBITDA increased 46% to $122 million, from $84 million last year.
Fourth quarter statistics
loanDepot reported a net loss of $33 million in Q4 2025, compared to a loss of nearly $9 million in the third quarter, largely due to lower revenue. Adjusted net loss reached $21.5 million, compared to $3 million in Q3 2025.
Revenue for the quarter fell 4% to $310 million, while adjusted net income fell 3% to $316 million, reflecting a decline in weighted margin, which fell from 339 to 324 bps over the three-month period.
Loans rose 23% in Q4 2025 to $8.04 billion, the company’s highest level since 2022. However, purchase volume accounted for only 49% of loans originated in the fourth quarter, down from 60% during the third quarter. Market share, meanwhile, rose 19% from the previous quarter to 1.4%.
“In the fourth quarter, we started the largest volume since 2022, gained share in a growing market and achieved a repeat rate of 71% in our home office,” Depot founder and CEO Anthony Hsieh said during a call Tuesday. “These results show progress in our return to core competencies that allowed us to grow to become the second largest lender in the country during our first decade.
“Other than that, we remained focused on reducing unit costs through manpower and automation, while investing in our marketing engine to drive more opportunities upstream,” added Hsieh.
According to chief financial officer David Hayes, “the fourth quarter demonstrated the emerging benefits of our investment in technology and efficiency during a period of high volume. … We increased adjusted revenue by 10% year over year while estimating cost growth to less than 1%, which contributed to a 31% reduction in adjusted net loss.
“Because of this progress, we enter 2026 as a much stronger company than we were in 2025.”
During the call, Hayes limited his comments to focus on the fourth quarter. He noted that expenses for the quarter rose 3% to $342 million, driven primarily by labor costs, which were partially offset by a decrease in other volume-related expenses.
Adjusted EBITDA fell to $29 million, down from $49 million in the third quarter.
The company ended Q4 2025 with cash of $337 million, down from $459 million in the previous quarter and “primarily reflecting investments in our loan portfolio and the full repayment of the 2025 unsecured notes.”
“Our weighted gross margin for the fourth quarter came in at 324 points, at the high end of our 300 to 325 point guidance, but down from 339 points last quarter,” Hayes said.
The company is projecting an initial mortgage volume of $6.75 billion to $7.75 billion in the first quarter of 2026.
The earnings report came just a day after Depot Loans confirmed that, four years after exiting the broker-dealer channel, it was relaunching its supermarket division under the leadership of Dan Peña, the company’s president of cooperative lending. This move was first expected in August by HousingWire.
loanDepot originally closed its supermarket division in August 2022 after Frank Martell became CEO. The relaunch follows Hsieh’s return to lead Depot’s day-to-day operations for Q1 2025. Hsieh officially reassumed the role of CEO on a permanent basis at the end of July.
