Velocity Financial Inc (NYSE:VEL)

Q4 2025 Velocity Financial Inc Earnings Call Transcript

Mar 11, 2026 / 09:00 PM GMT

Release Date Price: $18.26 (+0.55%)

Transcript 8-K10-K

Key Points

Positve

Velocity Financial Inc (VEL) reported a 52% increase in core net income, reaching $111 million, and achieved a record pre-tax ROE of 26%.
The company experienced a 49% increase in origination volume, setting a record at $2.7 billion.
VEL successfully completed 9 new securitizations, issuing $2.6 billion in new securities.
The company entered into a transformative partnership, selling $129 million of NPLs while retaining servicing rights, freeing up $50 million in working capital.
VEL issued its first rated unsecured debt offering of $500 million, enhancing liquidity and reducing reliance on short-term warehouse lines.

Negative

The non-performing loan (NPL) rate, although reduced, remains relatively high at 8.5% at the end of 2025.
The company reported a net loss of $3.7 million from loan charge-offs, attributed to legacy loans.
There is a potential small drag on Q1 results due to the friction from the recent debt transaction.
The company faces ongoing competition in its lending markets, although it has not significantly impacted operations yet.
There is a slight risk of increased competition from banks if capital rules are adjusted, although VEL does not see this as a major concern currently.

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

VEL.N - Velocity Financial Inc
Q4 2025 Velocity Financial Inc Earnings Call
Mar 11, 2026 / 09:00PM 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. 4th quarter 2025 conference call.

All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist 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 your telephone keypad and to withdraw your question, please press 2.

Please note, today's 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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