Strong earnings beat across GAAP and core metrics with improving NIM and credit trends. Next securitization targeted for May 2026, which could provide further funding for growth. Monitor upcoming 10-Q for detailed financials.
Price Chart
Executive Summary
Velocity Financial reported strong Q1 2026 results with net income up 18.4% YoY to $22.4M, diluted EPS of $0.57 (up $0.06), and core net income up 30.8% to $26.5M. Loan portfolio grew 25.4% to $6.8B UPB and net interest margin expanded 21 bps to 3.56%. The company also issued $500M in unsecured debt to optimize its capital structure.
Key Facts
- Net income of $22.4M in Q1 2026, up 18.4% from $18.9M in Q1 2025
- Diluted EPS of $0.57, up from $0.51 in Q1 2025
- Core net income of $26.5M, up 30.8% from $20.3M in Q1 2025
- Total loan portfolio UPB of $6.8B as of March 31, 2026, up 25.4% YoY
- Portfolio NIM of 3.56%, up 21 bps from 3.35% in Q1 2025
- NPLs as % of HFI loans improved to 10.1% from 10.8% YoY
- Issued $500M of unsecured corporate debt, repaid $215M secured debt
Financial Impact
Net income increased $3.5M YoY; core net income increased $6.2M YoY; loan portfolio expanded by $1.4B UPB YoY
Risk Factors
- NPL ratio still elevated at 10.1%, though improving
- Loan production flat YoY at $639.4M
- REO portfolio increased to $131.8M from $83.4M YoY
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-210739 |
| Document: vel-ex99.htm | 0001193125-26-210739 |
| Document: 0001193125-26-210739-index-headers.html | 0001193125-26-210739 |
| Document: 0001193125-26-210739-index.html | 0001193125-26-210739 |
| Document: 0001193125-26-210739.txt | 0001193125-26-210739 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 27, 2026 8w ago | 8-K | $18.08 $18.40 | ▲ +1.77% | ▲ +1.50% | $15.45 (−14.55%) |
Aug 11, 2026 11w ago | Insider Cluster | $18.01 $18.17 | ▼ −0.89% | ▼ −1.33% | $15.45 (+14.21%) |
Aug 5, 2026 11w ago | 8-K | $18.21 $18.10 | ▼ −0.60% | ▼ −1.82% | $15.45 (−15.16%) |
Aug 5, 2026 11w ago | 8-K | $18.21 $18.10 | ▲ +0.60% | ▲ +1.82% | $15.45 (+15.16%) |
Jun 12, 2026 19w ago | Institutional Cluster | $17.56 $17.54 | ▼ −0.11% | ▼ −0.79% | $15.45 (−12.02%) |
May 7, 2026 24w ago | 8-K | $18.29 $17.36 | ▼ −5.08% | ▼ −6.59% | $15.45 (−15.53%) |
May 6, 2026 24w ago | 8-K | $18.29 $17.36 | ▼ −5.08% | ▼ −6.59% | $15.45 (−15.53%) |
Apr 17, 2026 27w ago | 144 | $19.94 $19.51 | ▼ −2.16% | ▼ −3.07% | $15.45 (−22.52%) |
Apr 10, 2026 28w ago | DEFA14A | $19.14 $19.90 | ▲ +3.97% | ▼ −0.53% | $15.45 (−19.28%) |
Mar 13, 2026 32w ago | 8-K | $17.41 $17.26 | ▼ −0.86% | ▲ +1.26% | $15.45 (−11.26%) |
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