Velocity Financial, Inc. reported significant financial growth for the fiscal year ending December 31, 2025, with total revenue reaching $550.8 million, a 35.4% increase from $406.8 million in 2024. The company's net income also saw a substantial rise, climbing to $105.0 million from $68.5 million the previous year, resulting in a diluted earnings per share of $2.75, compared to $1.91 in 2024. This growth was primarily driven by a 31.8% increase in net interest income, which reached $210.4 million, attributed to higher average loan balances and yields in a rising interest rate environment.
In terms of operational metrics, Velocity Financial originated 6,636 loans totaling $2.7 billion in 2025, marking a 48.7% increase from the previous year's $1.8 billion. The company’s loan portfolio, as of December 31, 2025, totaled $6.5 billion, with a weighted average loan-to-value ratio of 65.2%. The firm also reported a decrease in nonperforming loans as a percentage of total loans, dropping to 8.5% from 10.7% in 2024, indicating improved asset quality.
Strategically, Velocity Financial has expanded its operations through the acquisition of Century Health & Housing Capital, LLC, which provides government-insured FHA mortgage financing. This acquisition, completed in December 2021, has allowed the company to diversify its offerings and enhance its market presence. Additionally, the company has successfully executed 46 securitizations since 2011, issuing a total of $10.6 billion in securities, which has facilitated its access to capital and supported its growth strategy.
Looking ahead, Velocity Financial anticipates continued growth driven by its focus on expanding its network of mortgage brokers and enhancing its product offerings. The company plans to leverage its established brand and operational efficiencies to capture a larger share of the fragmented investor real estate loan market. However, it remains cautious of potential market uncertainties, including economic fluctuations and regulatory changes, which could impact its performance. The company’s management expressed confidence in its ability to navigate these challenges while maintaining a strong financial position.
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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