Velocity Financial, Inc.

Listed Company

VELCIK 0001692376NYSEAcceleratedSmaller ReportingFinance ServicesDelawareFY ends Dec 31

Period

FY 2025

Revenue

—

Net Income

$105.05M

Total Assets

$7.38B

Equity

$672.53M

Shares Out

39.24M

Op. Cash Flow

$18.16M

Business

Velocity Financial, Inc. is a vertically integrated real estate finance company that originates, securitizes and manages loans secured by real estate to generate attractive risk‑adjusted spreads. It primarily offers investor loans secured by 1‑4 unit residential rental properties and also originates loans for multi‑family, mixed‑use and commercial properties, including long‑term fixed‑rate amortizing loans and short‑term interest‑only rehab/acquisition loans; through its Century subsidiary it provides FHA/Ginnie Mae insured multifamily and healthcare loan products and servicing. Key business segments include loan origination, securitization, in‑house asset management/servicing and portfolio acquisitions. It originates loans nationwide through an extensive network of independent mortgage brokers and direct borrower relationships and finances originations via warehouse facilities and securitizations.

Summary from filing dated 2025-03-12

Financials

Consolidated Statement of Income

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Interest income	551	407	311	240	182
Interest expense portfolio related	340	247	186	128	85
Net interest income portfolio related	210	160	124	113	97
Interest expense corporate debt	25	24	17	29	21
Net interest income	186	136	108	83	76
Provision for credit losses	6	1	2	1	−292,000
Net interest income after provision for credit losses	180	135	106	82	76
Gain on disposition of loans	—	10	8	7	8
Unrealized gain on fair value loans	117	56	48	8	29,000
Unrealized gain (loss) on fair value securitized debt	−30	3	−9	—	—
Unrealized gain (loss) on mortgage servicing rights	−998,000	375,000	−660,000	2	—
Origination fee income	34	24	12	5	2
Interest income on cash balance	6	6	5	—	—
Other income	2	2	2	2	267,000
Total other operating income	164	101	66	24	10
Compensation and employee benefits	90	70	48	30	19
Origination expenses	4	3	518,000	4	2
Securitization expenses	28	19	13	—	—
Loan servicing	33	22	18	12	8
Professional fees	6	8	5	4	4
Rent and occupancy	1	2	2	2	2
Real estate owned, net	23	6	6	−70,000	3
Other operating expenses	11	10	9	9	8
Total operating expenses	197	140	101	62	46
Income before income taxes	146	96	71	45	40
Total income tax expense	41	28	19	12	11
Net income	105	68	52	33	29
Net income (loss) attributable to noncontrolling interest	−71,000	47,000	20,000	308,000	—
Net income attributable to Velocity Financial, Inc.	105	68	52	32	29
Less undistributed earnings attributable to unvested restricted stock awards	1	834,000	753,000	491,000	9
Net earnings attributable to common stockholders	104	68	52	32	21
Basic (per share)	2.81	2.07	1.6	0.99	0.9
Diluted (per share)	2.75	1.91	1.52	0.94	0.86
Basic (shares)	37	33	32	32	23
Diluted (shares)	38	36	34	34	34

Consolidated Balance Sheet

As of · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Cash and cash equivalents	92	50	41	45	36
Restricted cash	157	21	21	17	12
Loans held for investment, at amortized cost	2,028	2,420	2,828	—	—
Loans held for investment, at fair value	4,730	2,767	1,306	276	1
Total loans, net	6,758	5,187	4,152	—	—
Accrued interest receivables	50	35	27	20	13
Receivables due from servicers	151	123	85	66	—
Other receivables	2	1	9	1	2
Real estate owned, net	118	68	44	13	18
Property and equipment, net	1	2	3	3	4
Deferred tax asset	23	14	2	5	17
Mortgage servicing rights, at fair value	200,000	14	9	9	7
Derivative Asset	66,000	—	—	—	—
Goodwill	7	7	7	7	7
Other assets	9	6	5	14	7
Total assets	7,382	5,527	4,405	3,749	2,812
Accounts payable and accrued expenses	168	148	122	92	92
Secured financing, net	287	285	211	210	163
Securitized debt, at amortized cost	1,706	2,019	2,419	—	—
Securitized debt, at fair value	4,237	2,207	877	—	—
Warehouse and repurchase facilities, net	309	348	335	331	301
Total liabilities	6,706	5,007	3,968	3,368	2,468
Commitments and contingencies	—	—	—	—	—
Common stock ($0.01 par value, 100,000,000 shares authorized; 38,965,317 and 33,761,147 shares issued, 39,573,657 and 33,545,585 shares outstanding as of December 31, 2025 and 2024, respectively)	398,000	339,000	331,000	326,000	323,000
Additional paid-in capital	383	323	307	300	296
Retained earnings	302	197	129	77	44
Treasury stock, at cost (608,340 and 215,562 common shares as of December 31, 2025 and 2024 respectively)	−10	−3	−1	−458,000	—
Accumulated other comprehensive loss	−3	−805,000	−1	—	—
Total Velocity Financial Inc. stockholders' equity	673	517	433	377	341
Noncontrolling interest in subsidiary	3	3	3	4	3
Total equity	676	520	437	381	344
Total liabilities and equity	7,382	5,527	4,405	3,749	2,812

Consolidated Statement of Cash Flows

Year Ended · In millions, except per-share amounts

Concept	FY 2025 2025-12-31	FY 2024 2024-12-31	FY 2023 2023-12-31	FY 2022 2022-12-31	FY 2021 2021-12-31
Depreciation and amortization	500,000	800,000	800,000	800,000	1
Amortization of right-of-use assets	2	1	2	1	1
Origination of loans held for sale	−50	−24	−38	−31	—
Proceeds from sales of loans held for sale	51	24	26	32	—
Net accretion of discount on purchased loans and deferred loan origination costs	4	4	5	—	—
Provision for (reversal of) uncollectible corporate and escrow advances receivable	−158,000	554,000	721,000	−175,000	−80,000
Gain on disposition of loans	—	−1	−826,000	−4	−7
Real estate acquired through foreclosure in excess of recorded investment	−16	−9	−7	−3	−1
Amortization of debt issuance discount and costs	10	12	19	28	20
Change in valuation of real estate owned	18	6	4	364,000	2
Change in valuation of fair value loans	−117	−56	−48	−8	−29,000
Change in valuation of mortgage servicing rights	998,000	−375,000	660,000	−2	—
Change in valuation of fair value securitized debt	30	−3	9	—	—
Hedging activities	−3	1	−2	—	—
Gain on sale of real estate owned	−1	−4	−568,000	−3	−409,000
Stock-based compensation	8	6	4	3	2
Deferred tax (benefit) expense	−8	−11	3	12	−10
Accrued interest and other receivables	−17	−6	−9	−7	−3
Other assets	−4	−284,000	8	−8	−360,000
Accounts payable and accrued expenses	20	26	20	−3	16
Net cash provided by operating activities	18	38	49	49	58
Purchase of loans held for investment	—	−17	−14	−18	−21
Origination of loans held for investment	−2,666	−1,818	−1,080	−1,740	−1,344
Proceeds from sales of loans originally classified as held for investment	—	50	21	292	136
Payments of loans held for investment	964	723	460	542	569
Proceeds from sale of real estate owned	56	33	22	22	10
Capitalized improvement on real estate owned	−1	—	—	—	—
Change in corporate and escrow advances receivable	−2	−11	−3	−5	−5
Change in impounds and deposits	−1	−2	9	910,000	9
Purchase of property and equipment	−281,000	−289,000	−180,000	−326,000	−135,000
Proceeds from sale of property and equipment	—	640,000	—	—	—
Purchase of mortgage servicing rights	—	−5	—	—	—
Net cash used in investing activities	−1,522	−1,045	−585	−908	−656
Warehouse repurchase facilities advances	2,634	1,947	1,193	1,687	1,216
Warehouse repurchase facilities repayments	−2,673	−1,933	−1,192	−1,658	−989
Proceeds from secured financing	—	74	—	215	175
Proceeds of securitized debt	2,651	1,590	975	1,370	978
Repayment of securitized debt	−972	−666	−439	−544	−644
Purchase of treasury stock	−7	−2	−861,000	−458,000	—
Debt issuance costs	−2	−4	−3	−26	−27
Proceeds from issuance of common stock related to warrants exercised	11	—	—	—	—
Proceeds from issuance of common stocks, net	41	10	2	607,000	137,000
Deferred stock issuance costs	−392,000	−186,000	—	—	−560,000
Distribution to non-controlling interest	−47,000	−205,000	−280,000	—	—
Net cash provided by financing activities	1,682	1,016	536	874	626
Net increase (decrease) in cash, cash equivalents, and restricted cash	178	9	−129,000	14	27
Cash paid during the year for interest	345	251	180	119	85
Cash paid during the year for income taxes	51	42	8	23	10
Transfer of loans held for investment to loans held for sale	110	35	42	279	206
Transfer of loans held for investment to real estate owned	105	50	49	10	11
Transfer of loans held for sale to held for investment	—	3	16	77	11
Capitalized interest on loans held for investment	2	1	2	1	2
Discount on issuance of securitized debt	4	—	2	23	2
Recognition of new leases in exchange for lease obligations	2	1	2	26,000	256,000

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