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VEL

Velocity Financial, Inc.

VEL

Velocity Financial, Inc. • NYSE
$19.33 ▼ -0.46% (-0.09)
Market Cap $751.80 M
52w High $20.98
52w Low $16.12
Dividend Yield 0%
P/E 7.95
Volume 28.82K
Outstanding Shares 38.89M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $172.294M ▲ $41.495M ▼ $25.373M ▼ 14.727% ▼ $0.66 ▼ $35.698M ▲
Q2-2025 $166.016M ▲ $42.515M ▼ $25.997M ▲ 15.659% ▲ $0.69 ▲ $34.26M ▼
Q1-2025 $119.261M ▼ $44.062M ▲ $18.409M ▼ 15.436% ▼ $0.55 ▼ $102.12M ▼
Q4-2024 $124.886M ▲ $-52K ▼ $20.587M ▲ 16.485% ▲ $0.62 ▲ $107.235M ▲
Q3-2024 $119.279M $28.09M $15.803M 13.249% $0.48 $21.859M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $98.964M ▲ $6.959B ▲ $6.321B ▲ $634.259M ▲
Q2-2025 $79.559M ▲ $6.476B ▲ $5.875B ▲ $597.895M ▲
Q1-2025 $51.676M ▲ $5.972B ▲ $5.405B ▲ $563.187M ▲
Q4-2024 $50.111M ▲ $5.527B ▲ $5.007B ▲ $516.944M ▲
Q3-2024 $44.094M $5.202B $4.715B $484.636M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $25.412M ▼ $11.452M ▲ $-429.074M ▲ $438.243M ▼ $20.621M ▼ $11.306M ▲
Q2-2025 $26.17M ▲ $7.662M ▲ $-441.198M ▼ $456.264M ▲ $22.728M ▲ $7.584M ▲
Q1-2025 $18.648M ▼ $3.536M ▼ $-401.413M ▼ $401.508M ▲ $3.631M ▲ $3.437M ▼
Q4-2024 $20.805M ▲ $33.273M ▲ $-356.069M ▼ $326.365M ▲ $3.569M ▲ $33.175M ▲
Q3-2024 $16.031M $-17.571M $-279.732M $284.905M $-12.398M $-17.636M

Five-Year Company Overview

Income Statement

Income Statement Velocity Financial’s income statement shows a business that has moved from early-stage losses to consistent and growing profitability. Revenue has expanded meaningfully over the last several years, and profits have followed, with net income and per-share earnings rising and turning solidly positive. Margins look reasonably healthy for a specialty lender, suggesting decent pricing power and good cost control. The pattern points to a company that has scaled its model successfully, though it still operates in a cyclical, rate-sensitive mortgage niche where earnings can swing if credit conditions or interest rates change sharply.

Balance Sheet

Balance Sheet The balance sheet reflects a typical specialty finance model: a large and growing loan portfolio funded mostly with debt, with equity increasing but still representing a modest slice of the capital structure. Assets have grown steadily, indicating expansion of the lending book and business footprint. Equity has also built up over time, which is a positive sign of retained profitability. However, leverage is high by design in this type of business, making the company reliant on stable funding markets and disciplined risk management. The relatively small cash position compared with total assets underscores the importance of ongoing access to warehouse lines, securitizations, and other financing channels.

Cash Flow

Cash Flow Cash flow from operations has been consistently positive and fairly steady over the last several years, which is encouraging for a lender operating through a volatile rate environment. Free cash flow essentially mirrors operating cash flow, since physical capital spending is minimal; this highlights an asset-light operational footprint where the main “investment” is in the loan book rather than in buildings or equipment. The stability of cash generation suggests the core model is working, but as with most finance companies, cash flows can shift quickly with changes in loan growth, securitization activity, and credit performance, so they should be viewed in the context of broader funding and credit cycles.

Competitive Edge

Competitive Edge Velocity Financial occupies a focused niche in non-traditional mortgage lending to real estate investors and small commercial properties, especially borrowers who fall outside standard bank criteria. Its strengths include specialization in this segment, a broad and loyal network of independent mortgage brokers across most of the U.S., and a vertically integrated platform that covers origination, servicing, and securitization. The firm differentiates itself through speed, flexible underwriting that emphasizes property cash flow, and tailored loan products. On the risk side, it faces competition from other non-bank lenders and banks that may target the same profitable niches, as well as exposure to real estate cycles, funding costs, and regulatory shifts in the non-qualified mortgage space.

Innovation and R&D

Innovation and R&D Innovation at Velocity is centered on technology, data, and product design rather than traditional research labs. The company has built proprietary data analytics and customized workflows that allow it to process loans quickly and assess risk in more nuanced ways than many traditional lenders. Its online broker portal and end-to-end digital processes are key enablers of speed and broker loyalty. Ongoing projects to further modernize and automate operations over the next couple of years show a commitment to staying ahead on efficiency and decision quality. In addition, the firm experiments with specialized loan programs for investors, higher-equity borrowers with credit blemishes, and foreign investors, which helps it adapt to evolving demand but also requires careful risk calibration.

Summary

Overall, Velocity Financial looks like a scaled-up niche lender that has transitioned from early-stage volatility to consistent growth and profitability. The company has expanded its loan book, grown its equity base, and generated steady cash flow, all while building a defensible position in non-traditional investor mortgages through technology, data, and broker relationships. Its business model is inherently leveraged and sensitive to real estate values, borrower performance, and funding market conditions, so risk management and access to capital remain critical. If it can maintain credit discipline and funding stability while continuing to refine its technology and products, it has room to further build on its current momentum, but outcomes will remain closely tied to broader housing, rate, and credit cycles.

NEWS

November 6, 2025 · 4:10 PM UTC

Velocity Financial, Inc. Reports Third Quarter 2025 Results

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October 23, 2025 · 8:30 AM UTC

Velocity Financial, Inc. Announces Date of Third Quarter 2025 Financial Results Webcast and Conference Call

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