Solid quarter with continued portfolio growth and margin expansion, but operating expense growth outpaced revenue and NPLs increased in absolute terms. No guidance provided. Watch for updates on M&A activity given $4.1M in due diligence costs; monitor expense ratio and NPL resolution trends in coming quarters.
Price Chart
Executive Summary
Velocity Financial reported Q1 2026 results with net income of $22.4M (+18.4% YoY), diluted EPS of $0.57 (+11.8% YoY), and net revenue of $85.2M (+23.4% YoY). Loan portfolio grew 25.4% to $6.8B, and portfolio NIM expanded 21 bps to 3.56%. However, operating expenses grew faster than revenue (+28.8% YoY), and NPL UPB increased 17.7% YoY, partially offsetting positive trends.
Key Facts
- Net income $22.4M vs $18.9M YoY (+18.4%)
- Diluted EPS $0.57 vs $0.51 YoY (+11.8%)
- Core diluted EPS $0.68 vs $0.55 YoY (+23.6%)
- Net revenue $85.2M vs $69.1M YoY (+23.4%)
- Loan portfolio UPB $6.8B, +25.4% YoY
- Portfolio NIM 3.56% vs 3.35% YoY (+21 bps)
- NPL ratio 10.1% vs 10.8% YoY (improved but NPL UPB +17.7%)
- Operating expenses +28.8% YoY, including $4.1M in M&A due diligence costs
- Two securitizations completed totaling $513.8M
- Diluted book value per share $17.75, +19.4% YoY
Financial Impact
Net revenue $85.2M (+23.4% YoY), EPS $0.57 (+11.8% YoY), core EPS $0.68 (+23.6% YoY). No consensus estimates available for comparison.
Risk Factors
- Operating expense growth (+28.8%) exceeding revenue growth (+23.4%)
- NPL UPB increased 17.7% YoY to $692.1M, though ratio improved
- Pre-tax ROE declined to 18.1% from 20.1% YoY
- Potential M&A dilution or integration costs
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-209160 |
| Document: d122273d8k.htm | 0001193125-26-209160 |
| Document: 0001193125-26-209160-index-headers.html | 0001193125-26-209160 |
| Document: 0001193125-26-209160-index.html | 0001193125-26-209160 |
| Document: 0001193125-26-209160.txt | 0001193125-26-209160 |
| 8-K Data (Synthetic) | 0001193125-26-209160 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 8w ago | 8-K | $18.08 $18.40 | ▲ +1.77% | ▲ +1.50% | $15.41 (−14.77%) |
Aug 11, 2026 10w ago | Insider Cluster | $18.01 $18.17 | ▼ −0.89% | ▼ −1.33% | $15.41 (+14.44%) |
Aug 5, 2026 11w ago | 8-K | $18.21 $18.10 | ▼ −0.60% | ▼ −1.82% | $15.41 (−15.38%) |
Aug 5, 2026 11w ago | 8-K | $18.21 $18.10 | ▲ +0.60% | ▲ +1.82% | $15.41 (+15.38%) |
Jun 12, 2026 19w ago | Institutional Cluster | $17.56 $17.54 | ▼ −0.11% | ▼ −0.79% | $15.41 (−12.24%) |
May 7, 2026 24w ago | 8-K | $18.29 $17.36 | ▼ −5.08% | ▼ −6.59% | $15.41 (−15.75%) |
May 6, 2026 24w ago | 8-K | $18.29 $17.36 | ▼ −5.08% | ▼ −6.59% | $15.41 (−15.75%) |
Apr 17, 2026 27w ago | 144 | $19.94 $19.51 | ▼ −2.16% | ▼ −3.07% | $15.41 (−22.72%) |
Apr 10, 2026 28w ago | DEFA14A | $19.14 $19.90 | ▲ +3.97% | ▼ −0.53% | $15.41 (−19.49%) |
Mar 13, 2026 32w ago | 8-K | $17.41 $17.26 | ▼ −0.86% | ▲ +1.26% | $15.41 (−11.49%) |
US Market Status
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