Watch for the Toorak Capital acquisition closing in Q4 2026, which would add ~$3 billion in assets under management and is expected to be accretive to GAAP earnings in 2027. Monitor the next securitization issuance and NPL resolution trends for credit quality signals.
How the stock moved after the report
⚠ Clustered BULLISH 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 posted its Q3 2026 earnings presentation, showing record loan production of $911.3 million (up 23.3% YoY), core diluted EPS of $0.76 (up 10.1% YoY), and portfolio NIM of 3.78% (up 13 bps YoY). The company also disclosed the pending Toorak Capital acquisition for ~$62 million, expected to close in Q4 2026.
Key Facts
- Record loan production of $911.3 million in Q3 2026, up 23.3% from $739.0 million in Q3 2025
- Core diluted EPS of $0.76, up 10.1% from $0.69 in Q3 2025
- Net income of $26.4 million, up 4.1% from $25.4 million in Q3 2025
- Portfolio net interest margin of 3.78%, up 13 bps from 3.65% in Q3 2025
- HFI loan portfolio of $7.43 billion UPB, up 18.4% from $6.27 billion in Q3 2025
- Diluted book value per share of $19.23, up 17.9% from $16.31 in Q3 2025
- Toorak Capital acquisition for ~$62 million in cash, expected to close in Q4 2026
- Two securitizations totaling $516.0 million issued in Q3 2026, plus $465.7 million VCC 2026-4 issued in October 2026
- Liquidity of $193.4 million including $86.8 million unrestricted cash
Financial Impact
Core net income of $30.0 million in Q3 2026, up from $26.9 million in Q3 2025; record loan production of $911.3 million
Risk Factors
- Nonperforming loans increased to 10.1% of HFI loans from 9.8% a year ago
- REO valuation losses increased to $8.8 million in Q3 2026 from $6.2 million in Q3 2025
- Unrealized loss of $64.8 million on fair value loans in Q3 2026 vs. a gain of $31.0 million in Q3 2025
- Toorak acquisition subject to customary closing conditions and may not close as expected
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-450405 |
| Document: vel-ex99.htm | 0001193125-26-450405 |
| Document: 0001193125-26-450405-index-headers.html | 0001193125-26-450405 |
| Document: 0001193125-26-450405-index.html | 0001193125-26-450405 |
| Document: 0001193125-26-450405.txt | 0001193125-26-450405 |
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. 2 of 3 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 Entry $17.63 Now $16.71 −5.22% settles Feb 4
- Nov 5, 20264d ago 8-K Bullish 5/10 Viewing 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
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