Velocity Financial, Inc. reported significant financial growth in its latest quarterly filing, with total revenue reaching $144.1 million for the three months ended September 30, 2025, a 37% increase from $105.1 million in the same period last year. For the nine months ended September 30, 2025, revenue was $398.4 million, up from $293.4 million in 2024. The company's net income also saw a substantial rise, totaling $25.4 million for the third quarter, compared to $15.6 million in the prior year, and $70.2 million for the nine-month period, up from $47.7 million.
The company’s total assets increased to $6.96 billion as of September 30, 2025, compared to $5.53 billion at the end of 2024. This growth was driven by a rise in loans held for investment, which reached $6.5 billion, up from $5.2 billion at the end of the previous fiscal year. The increase in loans was attributed to a higher volume of loan originations, which totaled $715.1 million for the quarter, reflecting a 3.5% increase from the previous quarter and a 50% increase year-over-year.
Operationally, Velocity Financial expanded its loan portfolio, which included 15,978 loans with an average balance of approximately $393,000. The company reported a weighted average loan-to-value ratio of 65.5% and a portfolio yield of 9.54% for the quarter. The number of nonperforming loans decreased slightly to 9.8% of the total portfolio, down from 10.3% in the previous quarter, indicating improved asset quality. The company also maintained a strong allowance for credit losses of $4.6 million, reflecting a conservative approach to risk management.
Strategically, Velocity Financial continues to focus on its core market of investor real estate loans, leveraging its extensive network of independent mortgage brokers. The company has also engaged in various financing activities, including securitized debt transactions, which have provided substantial capital for its operations. Looking ahead, the company anticipates continued growth driven by favorable market conditions and its established business model, although it remains cautious of potential macroeconomic challenges that could impact performance.
About Velocity Financial, Inc.
Velocity Financial, Inc. is a vertically integrated real estate finance company specializing in originating, securitizing, and managing loans secured by residential and commercial properties. Its core focus is on investor loans for 1-4 unit rental homes and small commercial properties, serving a fragmented market with a network of mortgage brokers. The company leverages proprietary data, technology, and long-term securitizations to generate attractive risk-adjusted returns.
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