Velocity Financial reports preliminary 2025 results with 53% income jump

Velocity Financial Inc. (NYSE: VEL) announced preliminary unaudited results for the fourth quarter and full year 2025, reporting significant increases in net income and loan originations.

For the full year 2025, the company expects net income of at least $105.0 million, representing an increase of at least 53% compared to 2024. Earnings per diluted share are projected at a minimum of $2.75, up at least 35% year-over-year.

Total loan originations for 2025 reached approximately $2.716 billion, an increase of at least 48% from the previous year. The company's total portfolio loan unpaid principal balance grew to approximately $6.491 billion as of December 31, 2025, marking a 28% increase.

For the fourth quarter alone, Velocity expects net income of at least $35 million, up at least 70% from the same period in 2024. Fourth-quarter loan originations totaled approximately $635 million, an increase of at least 13%.

The company reported improvements in asset quality, with nonperforming loans declining to between 8.5% and 8.6% of total loan unpaid principal balance, compared to 10.7% as of December 31, 2024.

Stockholders' equity increased to at least $675.0 million, up at least 30%, while stockholders' equity per diluted share rose to at least $17.15 from $14.26 at the end of 2024.

Portfolio net interest margin remained relatively stable at 3.57% for the full year, compared to 3.56% in 2024, though it declined to 3.55% in the fourth quarter from 3.70% in the same period of 2024.

The Westlake Village, California-based company originates business-purpose loans secured by residential rental and small commercial properties. Velocity plans to report audited financial results for 2025 on March 11, 2026, after market close.

The preliminary results are subject to completion of year-end closing procedures and may differ from final audited figures.

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