loanDepot reported a wider first-quarter loss as market volatility and lower gain-on-sale margins weighed on revenue, despite growth in lock volume and market share.
The Irvine, California-based mortgage lender on Tuesday posted a net loss of $54.9 million in the first quarter, compared with a loss of $32.8 million in the fourth quarter of 2025 and a loss of $40.7 million a year earlier.
Total revenue fell to $286.4 million from $310.3 million in the prior quarter, while adjusted revenue declined to $299.3 million from $316.3 million. Total expenses were largely flat quarter over quarter at $341.5 million.
loanDepot originated $7.7 billion in loans during the quarter, down 5% from the prior quarter but up from $5.2 billion a year ago. Pull-through weighted lock volume rose 14% quarter over quarter to $8.3 billion.
The company’s pull-through weighted gain-on-sale margin declined to 2.71% from 3.24% in the fourth quarter of 2025. Gain-on-sale margin was 2.93%, compared with 2.94% in the prior quarter.
Founder and CEO Anthony Hsieh said the company continued to benefit from investments in growth and efficiency initiatives despite a “volatile market environment.”
“We increased market share,” Hsieh said in a statement. “At the same time, we made meaningful progress behind the scenes on our long-term initiatives by expanding our revenue-generating capabilities, improving operating leverage, and driving marketing efficiency.”
Hsieh said the company remains focused on digital transformation, including expanding its wholesale channel, which it rejoined in early 2026 after exiting in 2022, as well as increasing loan officer headcount and applying automation technology across origination and servicing operations.
He also pointed to loanDepot’s recently announced partnership with Figure Technology Solutions, which he said is expected to lower production costs, improve customer experience and speed loan closings.
“Since my return as CEO, I have been laser-focused on our digital transformation as a key enabler of our return to a market-leading position,” Hsieh said during the company’s earnings call. “We are now three quarters into the rebuild of our company, and I believe that all of our hard work will soon be reflected in our financial performance.”
Chief Financial Officer David Hayes said in a statement that the quarter reflected “continued progress toward sustainable profitability,” though results were affected by “geopolitically driven market volatility.”
“The geopolitical environment created a sharp increase in interest rates during the first quarter, and we originated fewer higher margin FHA, VA, and HELOC loans and originated more conventional loans, both effects compressing our margin,” Hayes said during the call. “Higher interest rates during the quarter also generated wider negative fair value marks on our mortgage servicing and trading securities, contributing to lower revenue.”
Hayes said marketing costs declined 12% from the prior quarter as the company improved lead conversion and refined marketing strategies. However, he said lower gain-on-sale margins and negative fair value marks on mortgage servicing rights and trading securities contributed to weaker revenue.
Purchase loans accounted for 41% of total originations in the quarter, down from 49% in the fourth quarter of 2025. loanDepot’s preliminary organic refinance consumer direct recapture rate increased to 73% from 71% in the prior quarter.
For the second quarter, the company projects origination volume between $7.25 billion and $9.25 billion and pull-through weighted lock volume between $5.75 billion and $7.75 billion. It expects pull-through weighted gain-on-sale margins between 330 basis points and 360 basis points.
“Our total expenses are expected to increase in the second quarter, primarily driven by higher volume-related costs, reflecting higher expected originations quarter-over-quarter,” Hayes said. “We ended the quarter with $277 million in cash, decreasing by $60 million from the fourth quarter, reflecting our net loss, the investment in servicing rights, and timing differences related to our MSR secured loans.”
