Velocity Financial, Inc. (NYSE:VEL) has announced its preliminary unaudited results for the fourth quarter and full-year 2025, showcasing impressive growth and performance.
For the fourth quarter of 2025, the company reported a net income of at least $35 million, marking a substantial increase of at least 70% compared to the same period in 2024. Additionally, the GAAP earnings per diluted common share stood at least at $0.90 per share, reflecting a noteworthy increase of at least 56%. The portfolio net interest margin (NIM) was at least 3.55%, slightly lower than the 3.70% reported for the fourth quarter of 2024. Furthermore, total loan originations saw a significant uptick, reaching approximately $635 million, an increase of at least 13% compared to the same period in 2024.
Looking at the full-year 2025 results, Velocity Financial reported a net income of at least $105.0 million, representing a substantial increase of at least 53% compared to the full-year 2024. The GAAP earnings per diluted common share for the full year stood at least at $2.75 per share, marking an increase of at least 35%. The portfolio net interest margin (NIM) for the full year was at least 3.57%, slightly higher than the 3.56% reported for 2024. The total loan originations for the full year amounted to approximately $2,716 million, reflecting an impressive increase of at least 48% compared to the same period in 2024.
Furthermore, the total portfolio loan unpaid principal balance (UPB) stood at approximately $6,491 million as of December 31, 2025, marking an approximate 28% increase from the previous year. The nonperforming loans, which include all loans that are 90 or more days past due, in bankruptcy, or in foreclosure, saw a significant improvement, standing between 8.5% and 8.6% of the total loan UPB as of December 31, 2025, compared to 10.7% as of December 31, 2024.
Additionally, Velocity Financial reported a notable increase in stockholders' equity, reaching at least $675.0 million, reflecting a growth of at least 30%. The GAAP stockholders' equity per diluted common share outstanding also saw a significant increase, reaching at least $17.15 per share as of December 31, 2025, compared to $14.26 per diluted common share outstanding as of December 31, 2024.
Chris Farrar, President and CEO of Velocity Financial, expressed confidence in the company's performance, stating, "2025 was an exceptional year for Velocity, with record originations and earnings." He highlighted the company's ability to grow market share in the underserved investor loan market and its strong value proposition to borrowers as key drivers of success.
Velocity Financial will report its audited financial results for the period ended December 31, 2025, on March 11, 2026, after the market close. The market has reacted to these announcements by moving the company's shares -0.77% to a price of $19.45. If you want to know more, read the company's complete 8-K report here.
