Document

EX-99.1 2 a2023q2formearningsrelease.htm EX-99.1 Document

loanDepot announces second quarter 2023 financial results

Company reports second consecutive quarter of sequential double-digit revenue growth and ongoing cost productivity gains resulting in significant narrowing of net loss

•Revenue up 31% or $63.9 million from first quarter 2023, primarily driven by higher pull through weighted lock volume and gain on sale margin.

•Total expenses increased 5% or $15.7 million from first quarter 2023, primarily driven by Vision 2025 related costs and higher direct costs attributable to increased origination volumes, partially offset by cost productivity.

•Quarterly net loss narrowed by 46% to $49.8 million, or $42.0 million, from first quarter 2023 net loss of $91.7 million primarily due to increased revenues and cost productivity.

•Adjusted net loss for the second quarter of 2023 was $34.3 million as compared to $60.2 million for the first quarter of 2023.

•Company continues to maintain strong liquidity profile, exiting the quarter with cash balance of $719.1 million.

IRVINE, Calif., August 8, 2023 - loanDepot, Inc. (NYSE: LDI), (together with its subsidiaries, “loanDepot” or the “Company”), today announced results for the second quarter ended June 30, 2023.

“loanDepot continues to make significant progress against the strategic imperatives laid out in our Vision 2025 plan,” said President and Chief Executive Officer Frank Martell. “We delivered our second successive quarter of strong top line growth and margin expansion on a sequential basis, and at the same time, continued to drive cost productivity and operating leverage. Importantly, we reduced our sequential quarterly net loss by $66.0 million in the first quarter of 2023 and by $42 million in the second quarter.

“While we continue the work of resetting our cost structure to align with generationally low unit volumes, we are also focused on the other pillars of Vision 2025, including capturing opportunities inherent in our strategy to expand purpose-driven lending that supports first-time homebuyers and diverse communities. During 2022, loanDepot ranked as the country’s third largest mortgage lender for all minorities1. Home ownership is a bedrock of the American Dream and plays a vital role in helping to build strong, stable communities, and further deepening our support for diverse and first-time homebuyers is a critical component of our Vision 2025 plan,” Martell added.

“As we move forward in the second half of 2023, we plan to continue maintaining a strong liquidity position and aggressively reduce our costs,” said Chief Financial Officer, David Hayes. “Importantly, we are also investing in critical operating platforms, which we expect will deliver higher levels of automation and operating leverage and position us for additional growth and margin expansion in 2024.”

1 Based on 2022 Home Mortgage Disclosure Act (HMDA) data collected by the Consumer Financial Protection Bureau (CFPB).

Second Quarter Highlights:

Financial Summary


	Three Months Ended									Six Months Ended
($ in thousands except per share data) (Unaudited)	Jun 30, 2023			Mar 31, 2023			Jun 30, 2022			Jun 30, 2023			Jun 30, 2022

Rate lock volume	$	8,973,666		$	8,468,435		$	19,596,763		$	17,442,101		$	49,588,215
Pull through weighted lock volume(1)	6,057,179			5,325,488			12,412,894			11,382,667			32,212,939
Loan origination volume	6,273,543			4,944,337			15,995,055			11,217,880			37,545,786
Gain on sale margin(2)	2.75		%	2.43		%	1.16		%	2.61		%	1.62		%
Pull through weighted gain on sale margin(3)	2.85		%	2.26		%	1.50		%	2.57		%	1.89		%

Financial Results
Total revenue	$	271,833		$	207,901		$	308,639		$	479,734		$	811,949
Total expense	330,148			314,484			560,657			644,632			1,166,913
Net loss	(49,759)			(91,721)			(223,822)			(141,480)			(315,141)

Diluted loss per share	$	(0.13)		$	(0.25)		$	(0.66)		$	(0.38)		$(0.93)

Non-GAAP Financial Measures(4)

Adjusted total revenue	$	275,709		$	226,190		$	273,273		$	501,899		$	777,877
Adjusted net loss	(34,329)			(60,247)			(168,863)			(94,623)			(250,255)
Adjusted EBITDA (LBITDA)	6,499			(29,336)			(191,510)			(22,838)			(265,916)

(1)Pull through weighted rate lock volume is the principal balance of loans subject to interest rate lock commitments, net of a pull-through factor for the loan funding probability.

(2)Gain on sale margin represents the total of (i) gain on origination and sale of loans, net, and (ii) origination income, net, divided by loan origination volume during period.

(3)Pull through weighted gain on sale margin represents the total of (i) gain on origination and sale of loans, net, and (ii) origination income, net, divided by the pull through weighted rate lock volume.

(4)See “Non-GAAP Financial Measures” for a discussion of Non-GAAP Financial Measures and a reconciliation of these metrics to their closest GAAP measure.

Operational Highlights

•Quarterly non-volume related expenses increased $2.2 million since the first quarter of 2023, primarily due to higher Vision 2025 related expenses and legal accruals.

•Incurred expenses related to the Vision 2025 plan of $6.8 million during the quarter, including $4.5 million of personnel related expenses and $2.3 million of lease and other asset impairment charges. Vision 2025 expenses totaled $2.6 million in the first quarter of 2023.

•Accrued $7.5 million of legal expenses related to the settlement of outstanding litigation.

•Pull through weighted lock volume of $6.1 billion for the three months ended June 30, 2023, an increase of $0.7 billion or 14% from the first quarter of 2023, resulting in quarterly total revenue of $271.8 million, an increase of $63.9 million, or 31%, over the same period.

•Loan origination volume for the second quarter of 2023 was $6.3 billion, an increase of $1.3 billion or 27% from the first quarter of 2023.

•Purchase volume increased to 73% of total loans originated during the second quarter, up from 71% of total loans originated during the first quarter of 2023 and up from 59% of total loans originated during the second quarter of 2022.

•For the three months ended June 30, 2023, our preliminary organic refinance consumer direct recapture rate2 increased to 69% from the first quarter’s refinance rate of 67%. This highlights the efficacy of our marketing efforts, the strength of our customer relationships, and the value of our servicing portfolio for adjacent and complementary revenue opportunities.

•Net loss for the second quarter of 2023 of $49.8 million as compared to net loss of $91.7 million in the first quarter of 2023. Net loss decreased quarter over quarter primarily due to an increase in revenues and operating efficiency benefits.

•Adjusted EBITDA for the second quarter of 2023 was positive $6.5 million as compared to adjusted LBITDA of negative $29.3 million for the first quarter of 2023. Adjusted EBITDA (LBITDA) excludes the impact of interest expense on non-funding debt, fair value changes of our mortgage servicing rights, net of hedging results, impairment charges, and other operating expenses.

Outlook for the third quarter of 2023

•Origination volume of between $5 billion and $7 billion.

•Pull-through weighted rate lock volume of between $5.5 billion and $7.5 billion.

•Pull-through weighted gain on sale margin of between 245 basis points and 285 basis points.

Servicing


	Three Months Ended						Six Months Ended
Servicing Revenue Data: ($ in thousands) (Unaudited)	Jun 30, 2023		Mar 31, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022

Due to changes in valuation inputs or assumptions	$	26,138	$	(21,368)	$	98,795	$	4,771	$	297,792
Due to collection/realization of cash flows	(41,619)		(34,657)		(66,380)		(76,276)		(143,502)
Realized gains (losses) on sales of servicing rights	7,021		140		(2,493)		7,161		7,540
Net (loss) gain from derivatives hedging servicing rights	(30,014)		3,079		(63,429)		(26,936)		(263,720)
Changes in fair value of servicing rights, net	$	(38,474)	$	(52,806)	$	(33,507)	$	(91,280)	$	(101,890)

Servicing fee income	$	117,737	$	118,961	$	117,326	$	236,699	$	228,385

2 We define organic refinance consumer direct recapture rate as the total unpaid principal balance (“UPB”) of loans in our servicing portfolio that are paid in full for purposes of refinancing the loan on the same property, with the Company acting as lender on both the existing and new loan, divided by the UPB of all loans in our servicing portfolio that paid in full for the purpose of refinancing the loan on the same property. The recapture rate is finalized following the publication date of this release when external data becomes available.


	Three Months Ended						Six Months Ended
Servicing Rights, at Fair Value: ($ in thousands) (Unaudited)	Jun 30, 2023		Mar 31, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Balance at beginning of period	$	2,016,568	$	2,025,136	$	2,078,187	$	2,025,136	$	1,999,402
Additions	75,866		59,295		180,455		135,161		450,215
Sales proceeds, net	(78,191)		(11,838)		(86,464)		(90,030)		(399,314)
Changes in fair value:
Due to changes in valuation inputs or assumptions	26,138		(21,368)		98,795		4,771		297,792
Due to collection/realization of cash flows	(41,619)		(34,657)		(66,380)		(76,276)		(143,502)
Balance at end of period (1)	$	1,998,762	$	2,016,568	$	2,204,593	$	1,998,762	$	2,204,593

(1)Balances are net of $13.3 million, $12.2 million, and $9.1 million of servicing rights liability as of June 30, 2023, March 31, 2023, and June 30, 2022, respectively.



										% Change
Servicing Portfolio Data: ($ in thousands) (Unaudited)	Jun 30, 2023			Mar 31, 2023			Jun 30, 2022			Jun-23 vs Mar-23		Jun-23 vs Jun-22







Servicing portfolio (unpaid principal balance)	$	142,479,870		$	141,673,464		$	155,217,012		0.6	%	(8.2)	%

Total servicing portfolio (units)	482,266			475,765			507,231			1.4		(4.9)

60+ days delinquent ($)	$	1,192,377		$	1,282,432		$	1,511,871		(7.0)		(21.1)
60+ days delinquent (%)	0.8		%	0.9		%	1.0		%



Servicing rights, net to UPB	1.4		%	1.4		%	1.4		%

As of June 30, 2023, approximately $115.3 million, or 0.1%, of our servicing portfolio was in active forbearance. This represents a decrease from $174.0 million, or 0.1%, as of March 31, 2023.

Balance Sheet Highlights


							% Change
($ in thousands) (Unaudited)	Jun 30, 2023		Mar 31, 2023		Jun 30, 2022		Jun-23 vs Mar-23		Jun-23 vs Jun-22


Cash and cash equivalents	$	719,073	$	798,119	$	954,930	(9.9)	%	(24.7)	%
Loans held for sale, at fair value	2,256,551		2,039,367		4,656,338		10.6		(51.5)
Servicing rights, at fair value	2,012,049		2,028,788		2,213,700		(0.8)		(9.1)
Total assets	6,203,504		6,190,791		9,195,187		0.2		(32.5)
Warehouse and other lines of credit	2,046,208		1,830,319		4,265,343		11.8		(52.0)
Total liabilities	5,406,160		5,349,629		7,981,324		1.1		(32.3)
Total equity	797,344		841,162		1,213,863		(5.2)		(34.3)

An increase in loans held for sale at June 30, 2023, resulted in a corresponding increase in the balance on our warehouse lines of credit. Total funding capacity with our lending partners was $3.9 billion at June 30, 2023 and $4.1 billion at March 31, 2023. Available borrowing capacity was $1.7 billion at June 30, 2023.

Consolidated Statements of Operations


($ in thousands except per share data) (Unaudited)	Three Months Ended						Six Months Ended
	Jun 30, 2023		Mar 31, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022




REVENUES:
Interest income	$	33,060	$	27,958	$	62,722	$	61,017	$	115,687
Interest expense	(30,209)		(26,760)		(39,923)		(56,969)		(79,813)
Net interest income	2,851		1,198		22,799		4,048		35,874

Gain on origination and sale of loans, net	154,335		108,152		146,562		262,487		509,692
Origination income, net	18,332		12,016		39,108		30,349		98,181
Servicing fee income	117,737		118,961		117,326		236,699		228,385
Change in fair value of servicing rights, net	(38,474)		(52,806)		(33,507)		(91,280)		(101,890)
Other income	17,052		20,380		16,351		37,431		41,707
Total net revenues	271,833		207,901		308,639		479,734		811,949

EXPENSES:
Personnel expense	157,799		141,027		296,569		298,826		642,563
Marketing and advertising expense	34,712		35,914		60,837		70,626		162,350
Direct origination expense	17,224		17,378		33,996		34,603		87,153
General and administrative expense	54,817		56,134		63,927		110,951		113,675
Occupancy expense	6,099		6,081		9,388		12,180		18,784
Depreciation and amortization	10,721		10,026		11,323		20,747		21,867
Servicing expense	5,750		4,834		10,741		10,583		32,252
Other interest expense	43,026		43,090		33,140		86,116		47,533
Goodwill impairment	—		—		40,736		—		40,736
Total expenses	330,148		314,484		560,657		644,632		1,166,913

Loss before income taxes	(58,315)		(106,583)		(252,018)		(164,898)		(354,964)

Income tax benefit	(8,556)		(14,862)		(28,196)		(23,418)		(39,823)

Net loss	(49,759)		(91,721)		(223,822)		(141,480)		(315,141)

Net loss attributable to noncontrolling interests	(26,316)		(48,813)		(122,894)		(75,130)		(179,472)

Net loss attributable to loanDepot, Inc.	$	(23,443)	$	(42,908)	$	(100,928)	$	(66,350)	$	(135,669)

Basic loss per share	$	(0.13)	$	(0.25)	$	(0.66)	$	(0.38)	$	(0.93)
Diluted loss per share	$	(0.13)	$	(0.25)	$	(0.66)	$	(0.38)	$	(0.93)

Consolidated Balance Sheets


($ in thousands)	Jun 30, 2023		Mar 31, 2023		Dec 31, 2022
	(Unaudited)
ASSETS
Cash and cash equivalents	$	719,073	$	798,119	$	863,956
Restricted cash	61,294		90,084		116,545
Accounts receivable, net	68,581		99,381		145,279
Loans held for sale, at fair value	2,256,551		2,039,367		2,373,427
Derivative assets, at fair value	80,382		84,624		39,411
Servicing rights, at fair value	2,012,049		2,028,788		2,037,447
Trading securities, at fair value	93,442		95,561		94,243
Property and equipment, net	82,677		88,877		92,889
Operating lease right-of-use asset	34,040		35,362		35,668
Prepaid expenses and other assets	129,675		139,904		155,982
Loans eligible for repurchase	647,418		672,458		634,677
Investments in joint ventures	18,322		18,266		20,410



Total assets	$	6,203,504	$	6,190,791	$	6,609,934

LIABILITIES AND EQUITY
LIABILITIES:
Warehouse and other lines of credit	$	2,046,208	$	1,830,319	$	2,146,602
Accounts payable and accrued expenses	407,356		449,641		488,696
Derivative liabilities, at fair value	8,790		35,662		67,492
Liability for loans eligible for repurchase	647,418		672,458		634,677
Operating lease liability	56,552		57,837		61,675
Debt obligations, net	2,239,836		2,303,712		2,289,319
Total liabilities	5,406,160		5,349,629		5,688,461
EQUITY:








Total equity	797,344		841,162		921,473
Total liabilities and equity	$	6,203,504	$	6,190,791	$	6,609,934

Loan Origination and Sales Data


($ in thousands) (Unaudited)	Three Months Ended						Six Months Ended
	Jun 30, 2023		Mar 31, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022

Loan origination volume by type:
Conventional conforming	$3,323,678		$2,893,821		$10,392,730		$6,217,499		$26,105,003
FHA/VA/USDA	2,337,946		1,678,591		3,658,309		4,016,537		7,626,820
Jumbo	148,077		131,066		1,595,843		279,143		3,383,547
Other	463,842		240,859		348,173		704,701		430,416
Total	$6,273,543		$4,944,337		$15,995,055		$11,217,880		$37,545,786

















Loan origination volume by purpose:
Purchase	$4,552,919		$3,512,771		$9,500,164		$8,065,690		$17,530,930
Refinance - cash out	1,614,747		1,324,239		5,669,205		2,938,986		15,498,840
Refinance - rate/term	105,877		107,327		825,686		213,204		4,516,016
Total	$6,273,543		$4,944,337		$15,995,055		$11,217,880		$37,545,786




Loans sold:
Servicing retained	$3,943,845		$3,277,707		$10,568,649		$7,221,552		$27,691,365
Servicing released	2,134,024		2,118,874		7,342,889		4,252,898		13,088,211
Total	$6,077,869		$5,396,581		$17,911,538		$11,474,450		$40,779,576





Loan origination margins:
Gain on sale margin	2.75	%	2.43	%	1.16	%	2.61	%	1.62	%

Second Quarter Earnings Call

Management will host a conference call and live webcast today at 5:00 p.m. ET on loanDepot’s Investor Relations website, investors.loandepot.com, to discuss its earnings results.

The conference call can also be accessed by dialing (888) 440-6385 using conference ID number 2021948. Please call five minutes in advance to ensure that you are connected prior to the call. A replay of the webcast and transcript will also be made available on the Investor Relations website following the conclusion of the event, or can be accessed by dialing (800) 770-2030 following the conclusion of the event through September 7, 2023.

For more information about loanDepot, please visit the company’s Investor Relations website: investors.loandepot.com.

Non-GAAP Financial Measures

To provide investors with information in addition to our results as determined by GAAP, we disclose certain non-GAAP measures to assist investors in evaluating our financial results. We believe these non-GAAP measures provide useful information to investors regarding our results of operations because each measure assists both investors and management in analyzing and benchmarking the performance and value of our business. They facilitate company-to-company operating performance comparisons by backing out potential differences caused by variations in hedging strategies, changes in valuations, capital structures (affecting interest expense on non-funding debt), taxation, the age and book depreciation of facilities (affecting relative depreciation expense), and other cost or benefit items which may vary for different companies for reasons unrelated to operating performance. These non-GAAP measures include our Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share (if dilutive), and Adjusted EBITDA (LBITDA). We exclude from these non-GAAP financial measures the change in fair value of MSRs and related hedging gains and losses as they add volatility and are not indicative of the Company’s operating performance or results of operation. We also exclude stock-based compensation expense, which is a non-cash expense, gains or losses on extinguishment of debt and disposal of fixed assets, non-cash goodwill impairment, and other impairment charges to intangible assets and operating lease right-of-use assets as management does not consider these costs to be indicative of our performance or results of operations. Adjusted EBITDA (LBITDA) includes interest expense on funding facilities, which are recorded as a component of “net interest income (expense)”, as these expenses are a direct operating expense driven by loan origination volume. By contrast, interest expense on our non-funding debt is a function of our capital structure and is therefore excluded from Adjusted EBITDA (LBITDA). Adjustments for income taxes are made to reflect historical results of operations on the basis that it was taxed as a corporation under the Internal Revenue Code, and therefore subject to U.S. federal, state and local income taxes. Adjustments to Diluted Weighted Average Shares Outstanding assumes the pro forma conversion of weighted average Class C shares to Class A common stock. These non-GAAP measures have limitations as analytical tools, and should not be considered in isolation or as a substitute for revenue, net income, or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Some of these limitations are:

•they do not reflect every cash expenditure, future requirements for capital expenditures or contractual commitments;

•Adjusted EBITDA (LBITDA) does not reflect the significant interest expense or the cash requirements necessary to service interest or principal payment on our debt;

•although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced or require improvements in the future, and Adjusted Total Revenue, Adjusted Net Income (Loss), and Adjusted EBITDA (LBITDA) do not reflect any cash requirement for such replacements or improvements; and

•they are not adjusted for all non-cash income or expense items that are reflected in our statements of cash flows.

Because of these limitations, Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share, and Adjusted EBITDA (LBITDA) are not intended as alternatives to total revenue, net income (loss), net income (loss) attributable to the Company, or Diluted Earnings (Loss) Per Share or as an indicator of our operating performance and should not be considered as measures of discretionary cash available to us to invest in the growth of our business or as measures of cash that will be available to us to meet our obligations. We compensate for these limitations by using Adjusted Total Revenue, Adjusted Net Income (Loss), Adjusted Diluted Earnings (Loss) Per Share, and Adjusted EBITDA (LBITDA) along with other comparative tools, together with U.S. GAAP measurements, to assist in the evaluation of operating performance. See below for a reconciliation of these non-GAAP measures to their most comparable U.S. GAAP measures.


Reconciliation of Total Revenue to Adjusted Total Revenue ($ in thousands) (Unaudited)	Three Months Ended						Six Months Ended
	Jun 30, 2023		Mar 31, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Total net revenue	$	271,833	$	207,901	$	308,639	$	479,734	$	811,949
Change in fair value of servicing rights, net of hedging gains and losses(1)	3,876		18,289		(35,366)		22,165		(34,072)
Adjusted total revenue	$	275,709	$	226,190	$	273,273	$	501,899	$	777,877

(1)Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses.


Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) ($ in thousands) (Unaudited)	Three Months Ended						Six Months Ended
	Jun 30, 2023		Mar 31, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Net loss attributable to loanDepot, Inc.	$	(23,443)	$	(42,908)	$	(100,928)	$	(66,350)	$	(135,669)
Net loss from the pro forma conversion of Class C common shares to Class A common shares (1)	(26,316)		(48,813)		(122,894)		(75,130)		(179,472)
Net loss	(49,759)		(91,721)		(223,822)		(141,480)		(315,141)
Adjustments to the benefit for income taxes(2)	6,916		13,316		31,952		20,120		46,663
Tax-effected net loss	(42,843)		(78,405)		(191,870)		(121,360)		(268,478)
Change in fair value of servicing rights, net of hedging gains and losses(3)	3,876		18,289		(35,366)		22,165		(34,072)

Stock-based compensation expense	5,754		5,926		4,712		11,679		7,021

Gain on extinguishment of debt	(39)		—		—		(39)		(10,528)
Loss on disposal of fixed assets	751		261		—		1,012		—
Goodwill impairment	—		—		40,736		—		40,736
Other impairment (recovery)	686		(345)		5,963		341		5,963
Tax effect of adjustments(4)	(2,514)		(5,973)		6,962		(8,421)		9,103
Adjusted net loss	$	(34,329)	$	(60,247)	$	(168,863)	$	(94,623)	$	(250,255)

(1)Reflects net loss to Class A common stock and Class D common stock from the pro forma exchange of Class C common stock.

(2)loanDepot, Inc. is subject to federal, state and local income taxes. Adjustments to income tax benefit reflect the effective income tax rates below, and the pro forma assumption that loanDepot, Inc. owns 100% of LD Holdings.


	Three Months Ended						Six Months Ended
	Jun 30, 2023		Mar 31, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Statutory U.S. federal income tax rate	21.00	%	21.00	%	21.00	%	21.00	%	21.00	%
State and local income taxes (net of federal benefit)	5.28	%	6.28	%	5.00	%	5.78	%	5.00	%
Effective income tax rate	26.28	%	27.28	%	26.00	%	26.78	%	26.00	%

(3)Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses.

(4)Amounts represent the income tax effect using the aforementioned effective income tax rates, excluding certain discrete tax items. Reporting periods after June 30, 2022 include the income tax effect of excess tax benefits or deficiencies on vested RSUs. Prior periods were adjusted to conform to current presentation.


Reconciliation of Adjusted Diluted Weighted Average Shares Outstanding to Diluted Weighted Average Shares Outstanding ($ in thousands except per share data) (Unaudited)	Three Months Ended						Six Months Ended
	Jun 30, 2023		Mar 31, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
Net loss attributable to loanDepot, Inc.	$	(23,443)	$	(42,908)	$	(100,928)	$	(66,350)	$	(135,669)
Adjusted net loss	(34,329)		(60,247)		(168,863)		(94,623)		(250,255)

Share Data:
Diluted weighted average shares of Class A and Class D common stock outstanding	173,908,030		170,809,818		153,822,380		172,358,924		146,415,135
Assumed pro forma conversion of weighted average Class C shares to Class A common stock	148,597,745		149,210,417		165,281,304		149,535,576		173,245,208
Adjusted diluted weighted average shares outstanding	322,505,775		320,020,235		319,103,684		321,894,500		319,660,343


Reconciliation of Net Income (Loss) to Adjusted EBITDA (LBITDA) ($ in thousands) (Unaudited)	Three Months Ended						Six Months Ended
	Jun 30, 2023		Mar 31, 2023		Jun 30, 2022		Jun 30, 2023		Jun 30, 2022
	(Unaudited)						(Unaudited)
Net loss	$	(49,759)	$	(91,721)	$	(223,822)	$	(141,480)	$	(315,141)
Interest expense - non-funding debt (1)	43,026		43,090		33,140		86,116		47,533
Income tax benefit	(8,556)		(14,862)		(28,196)		(23,418)		(39,823)
Depreciation and amortization	10,721		10,026		11,323		20,747		21,867
Change in fair value of servicing rights, net of hedging gains and losses(2)	3,876		18,289		(35,366)		22,165		(34,072)

Stock-based compensation expense	5,754		5,926		4,712		11,679		7,021

Loss on disposal of fixed assets	751		261		—		1,012		—
Goodwill impairment	—		—		40,736		—		40,736
Other impairment (recovery)	686		(345)		5,963		341		5,963
Adjusted EBITDA (LBITDA)	$	6,499	$	(29,336)	$	(191,510)	$	(22,838)	$	(265,916)

(1)Represents other interest expense, which includes gain on extinguishment of debt and amortization of debt issuance costs, in the Company’s consolidated statements of operations.

(2)Represents the change in the fair value of servicing rights attributable to changes in assumptions, net of hedging gains and losses.

Forward-Looking Statements

This press release may contain "forward-looking statements," which reflect loanDepot's current views with respect to, among other things, its business strategies, including the Vision 2025 plan, our HELOC product, financial condition and liquidity, competitive position, industry and regulatory environment, potential growth opportunities, the effects of competition, operations and financial performance. You can identify these statements by the use of words such as "outlook," "potential," "continue," "may," "seek," "approximately," "predict," "believe," "expect," "plan," "intend," "estimate," “project,” or "anticipate" and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as "will," "should," "would" and "could." These forward-looking statements are based on current available operating, financial, economic and other information, and are not guarantees of future performance and are subject to risks, uncertainties and assumptions, including the risks in the "Risk Factors" section of loanDepot, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2022 and Quarterly Reports on Form 10-Q as well as any subsequent filings with the Securities and Exchange Commission, which are difficult to predict. Therefore, current plans, anticipated actions, financial results, as well as the anticipated development of the industry, may differ materially from what is expressed or forecasted in any forward-looking statement. loanDepot does not undertake any obligation to publicly update or revise any forward-looking statement to reflect future events or circumstances, except as required by applicable law.

About loanDepot

loanDepot (NYSE: LDI) is a digital commerce company committed to serving its customers throughout the home ownership journey. Since its launch in 2010, loanDepot has revolutionized the mortgage industry with a digital-first approach that makes it easier, faster and less stressful to purchase or refinance a home. Today, as one of the nation's largest non-bank retail mortgage lenders, loanDepot enables customers to achieve the American dream of homeownership through a broad suite of lending and real estate services that simplify one of life's most complex transactions. With headquarters in Southern California and offices nationwide, loanDepot is committed to serving the communities in which its team lives and works through a variety of local, regional and national philanthropic efforts.

Investor Relations Contact:

Gerhard Erdelji

Senior Vice President, Investor Relations

(949) 822-4074

gerdelji@loandepot.com

Media Contact:

Rebecca Anderson

Senior Vice President, Communications & Public Relations

(949) 822-4024

rebeccaanderson@loandepot.com

LDI-IR