EPS missed consensus by $0.05, but core EPS grew 10.1% YoY and net revenue rose 19.1%. Watch for the impact of rising operating expenses (up 26.7%) and the NPL ratio increase to 10.1% on future margins. The $2.4M in merger-acquisition-related costs suggests potential M&A activity.
How the stock moved after the report
⚠ Clustered NEUTRAL VIEWSTOCK ABOVE ENTRY AT T+1- T+0 · Nov 6 $17.63entry
- T+1 · yesterday +0.11%α −2.25% · $17.65
- T+2 · todayOpen
- T+5 · in 2d Pending
- T+20 · in 26d Pending
- T+60 · in 3mo Pending
Price Chart
REPLAYWatch the reaction play outHow similar events traded
Executive Summary
Velocity Financial reported Q3 2026 net income of $26.4M (diluted EPS $0.67) vs $25.4M ($0.65) a year ago, a 4.1% increase. Core net income rose 11.5% to $30.0M (core diluted EPS $0.76). Net revenue grew 19.1% to $102.1M, driven by strong loan production of $911.3M (+23.3% YoY) and portfolio NIM expansion to 3.78%. The EPS of $0.67 missed the consensus estimate of $0.72, while revenue of $102.1M exceeded the $54.8M consensus (note: the revenue consensus appears to be for net interest income, not total net revenue).
Key Financial Metrics
Key Facts
- Net income $26.4M, up 4.1% YoY from $25.4M
- Diluted EPS $0.67, up from $0.65 YoY, missed consensus of $0.72
- Core diluted EPS $0.76, up 10.1% from $0.69 YoY
- Net revenue $102.1M, up 19.1% YoY from $85.8M
- Loan production $911.3M, up 23.3% YoY from $739.0M
- Portfolio NIM 3.78%, up 13 bps from 3.65% YoY
- NPL ratio 10.1%, up from 9.8% YoY
- Diluted book value per share $19.23, up 17.9% from $16.31 YoY
- Operating expenses $63.9M, up 26.7% YoY, including $2.4M merger-acquisition-related costs
- Two securitizations completed totaling $516.0M
Financial Impact
EPS missed consensus by $0.05 (7.0% miss); revenue (net revenue) of $102.1M exceeded the $54.8M consensus for net interest income; net income grew 4.1% YoY; core net income grew 11.5% YoY
Risk Factors
- EPS missed consensus estimate of $0.72 by $0.05 (7.0% miss)
- Operating expenses grew 26.7% YoY, outpacing revenue growth of 19.1%
- NPL ratio increased to 10.1% from 9.8% YoY
- Total company NIM declined to 2.97% from 3.25% YoY
- Cash and restricted cash decreased to $109.3M from $249.2M at year-end 2025
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-450422 |
| Document: vel-20261104.htm | 0001193125-26-450422 |
| Document: 0001193125-26-450422-index-headers.html | 0001193125-26-450422 |
| Document: 0001193125-26-450422-index.html | 0001193125-26-450422 |
| Document: 0001193125-26-450422.txt | 0001193125-26-450422 |
| 8-K Data (Synthetic) | 0001193125-26-450422 |
Track record
15 reports on VEL
2 of 3 bullish or bearish reports moved the stock their way by T+60. Best: +13.67% at T+60 after the Aug 5, 2026 report. 3 of 4 went positive at some point.
Filters
- Nov 10, 2026today S-3 Neutral 4/10 Entry $16.46 Now $16.71 +1.52% settles Feb 9
- Nov 9, 2026today Institutional Cluster Neutral 3/10 Entry $17.65 Now $16.71 −5.33% settles Feb 8
- Nov 5, 20264d ago 8-K Neutral 5/10 Viewing Entry $17.63 Now $16.71 −5.22% settles Feb 4
- Nov 5, 20264d ago 8-K Bullish 5/10 Entry $17.63 Now $16.71 −5.22% settles Feb 4
- Nov 5, 20265d ago 144 Neutral 3/10 Entry $17.63 Now $16.71 −5.22% settles Feb 4
- Aug 27, 202610w ago 8-K Neutral 5/10 Entry $18.08 Now $16.71 −7.58% settles Nov 20
- Aug 11, 202613w ago Insider Cluster Bearish 4/10 Entry $18.01 to $17.45 Now $16.71 +7.22% ▲ +3.11% −2.00% vs SPY
- Aug 5, 202613w ago 8-K Mixed 5/10 Entry $18.21 to $15.72 Now $16.71 −8.24% ▼ −13.67% −12.00% vs SPY
- Aug 5, 202613w ago 8-K Bearish 5/10 Entry $18.21 to $15.72 Now $16.71 +8.24% ▲ +13.67% +12.00% vs SPY
- Jun 12, 202621w ago Institutional Cluster Mixed 4/10 Entry $17.56 to $18.12 Now $16.71 −4.84% ▲ +3.19% −0.07% vs SPY
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers