Velocity Financial Inc (NYSE:VEL)

Q3 2025 Velocity Financial Inc Earnings Call Transcript

Nov 6, 2025 / 10:00 PM GMT

Release Date Price: $18.74 (-0.37%)

Transcript 8-K10-Q

Key Points

Positve

Velocity Financial Inc (VEL) achieved a record quarter with pre-tax earnings up 66.5% and production volumes reaching $739 million.
The company reported a significant increase in new applications, exceeding $1.4 billion for the quarter.
The weighted average portfolio loan-to-value ratio declined to 65.5%, indicating disciplined credit management.
The company successfully closed its first-ever single counterparty securitization with a top-tier money manager, reducing transaction costs and diversifying funding options.
Net income increased by 60% year over year, with a stable portfolio net interest margin (NIM) of 360 basis points above the target.

Negative

There was a notable increase in charge-offs, with a net loss of $1.6 million primarily due to REO valuations.
The non-performing loan rate, although improved, remained relatively high at 9.8%.
REO valuations resulted in a negative adjustment of $6.3 million, indicating potential challenges in property value assessments.
Despite strong overall performance, the company experienced some timing issues with REO evaluation expenses.
The debt-to-equity ratio on a recourse basis remained high at 11x, which could pose risks if market conditions change.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

VEL.N - Velocity Financial Inc
Q3 2025 Velocity Financial Inc Earnings Call
Nov 06, 2025 / 10:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good day and welcome to the Velocity Financial Inc. 3rd quarter 2025 conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialists by pressing the key followed by 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press 1 on a touchtone phone. To withdraw your question, please press 2. Please note this event is being recorded.

I would now like to turn the conference over to Chris Oltman, treasurer. Please go ahead.

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Unidentified_2 [2]
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