Velocity Financial Inc (NYSE:VEL)

Q2 2026 Velocity Financial Inc Earnings Call Transcript

Aug 5, 2026 / 09:00 PM GMT

Release Date Price: $17.67 (-0.84%)

Transcript 10-Q8-K

Key Points

Positve

Core net income of $27.9 million with pre-tax income up 3.9% year-over-year to $35.2 million.
Diluted book value per share grew to $18.43, up nearly $0.81 from a year ago, reflecting strong compounding.
Non-performing loans fell to 9.6% of held-for-investment loans, down from 10.3% a year ago, with $90.5 million of NPLs resolved at net gains.
Total loan portfolio grew to $7 billion in UPB, up 19% year-over-year, with unit production up 3.3% despite lower average loan sizes.
Completed two securitizations with the tightest spreads in three years, ending the quarter with $240 million in liquidity and $662 million in available warehouse capacity.
Portfolio net interest margin improved to 366 basis points, up 10 basis points quarter-over-quarter, with a stable weighted average coupon of 9.7%.

Negative

GAAP net income and EPS dipped slightly year-over-year due to a higher effective tax rate, not operational weakness.
Total loan production declined to $672.6 million from $725 million a year ago, reflecting lower average loan sizes.
Net gains on NPL resolutions were slightly lower at $2.5 million (2.7%) versus $2.8 million (3.1%) in the prior year quarter.
Combined REO activity net gain fell to $2.4 million from $5.7 million in Q2 2025, driven by a $3 million loss on existing REOs.
Total debt-to-equity ratio remains elevated at 9.7 times when including non-recourse securitizations, potentially limiting future leverage capacity.

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

VEL.N - Velocity Financial Inc
Q2 2026 Velocity Financial Inc Earnings Call
Aug 05, 2026 / 09:00PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Hello and welcome to the Velocity Financial second quarter 2026 results call.

All lines have been placed on mute to prevent any background noise.

After the speaker's remarks, there will be a question-and-answer session.

If you'd like to ask a question during this time, simply press star 1 on your telephone keypad to raise your hand and join the queue.

If you'd like to withdraw your questions, simply press star 1 again.

We now turn the conference over to Chrisman, corporate treasurer, please go ahead.

Thanks Glee, hello everyone, and thank you for joining us today for the discussion of Velocity second quarter 2026 results.

Joining me today are Chris Farrar, Velocity

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.