loanDepot, Inc.LDI
loanDepot, Inc. Income Taxes Disclosure
INCOME TAXES
The following table details the Company’s provision for income taxes:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Current | ||||||||||||||||||||
| Federal | $ | (3,616) | $ | 4,952 | $ | 240 | ||||||||||||||
| State | (2,522) | 2,434 | 139 | |||||||||||||||||
| Total current | (6,138) | 7,386 | 379 | |||||||||||||||||
| Deferred | ||||||||||||||||||||
| Federal | (13,740) | (29,825) | (27,512) | |||||||||||||||||
| State | 6,877 | (18,259) | (15,663) | |||||||||||||||||
| Total deferred | (6,863) | (48,084) | (43,175) | |||||||||||||||||
| Total | ||||||||||||||||||||
| Federal | (17,356) | (24,873) | (27,272) | |||||||||||||||||
| State | 4,355 | (15,825) | (15,524) | |||||||||||||||||
| Total income tax benefit | $ | (13,001) | $ | (40,698) | $ | (42,796) | ||||||||||||||
The following table is a reconciliation of the estimated provision for income taxes at statutory rates to the provision for income taxes at the Company’s effective tax rate:
| Year Ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Federal income tax at statutory rate | $ | (25,312) | 21.0 | % | $ | (50,998) | 21.0 | % | $ | (58,445) | 21.0 | % | |||||||||||||||||||||||
State and local income taxes (net of federal benefit)(1) | 3,258 | (2.7) | (6,996) | 2.9 | (7,669) | 2.8 | |||||||||||||||||||||||||||||
| State rate change | — | — | (2,409) | 1.0 | (5,308) | 1.9 | |||||||||||||||||||||||||||||
| Change in valuation allowance | 1,749 | (1.5) | (112) | 0.1 | (139) | 0.1 | |||||||||||||||||||||||||||||
| Change in unrecognized tax benefits | 764 | (0.6) | 72 | — | 142 | (0.1) | |||||||||||||||||||||||||||||
| Tax credits | (23) | — | (538) | 0.2 | 101 | — | |||||||||||||||||||||||||||||
| Nontaxable or nondeductible items: | |||||||||||||||||||||||||||||||||||
| Disallowed executive compensation | 1,904 | (1.6) | 913 | (0.4) | 333 | (0.1) | |||||||||||||||||||||||||||||
| Other | (379) | 0.3 | 1,239 | (0.5) | 1,113 | (0.4) | |||||||||||||||||||||||||||||
| Other reconciling items: | |||||||||||||||||||||||||||||||||||
| Return to provision | (1,793) | 1.5 | 57 | — | 745 | (0.3) | |||||||||||||||||||||||||||||
| Deferred true-up | (2,595) | 2.2 | (3,728) | 1.5 | 3 | — | |||||||||||||||||||||||||||||
| Non-controlling interests | 9,426 | (7.8) | 21,802 | (9.0) | 26,328 | (9.5) | |||||||||||||||||||||||||||||
| Effective income tax rate | $ | (13,001) | 10.8 | % | $ | (40,698) | 16.8 | % | $ | (42,796) | 15.4 | % | |||||||||||||||||||||||
(1) State taxes in California, New York, New Jersey, and Illinois make up the majority of the tax effect in this category for 2025. State taxes in California, Illinois, and New Jersey make up the majority of the tax effect in this category for 2024. State taxes in California and New York make up the majority of the tax effect in this category for 2023.
The Company’s income tax expense varies from the expense that would be expected based on statutory rates due principally to income passed through to noncontrolling interests. Prior to the IPO, income taxes for LD Holdings at the consolidated level were primarily federal, state, and local taxes for ACT, a C Corporation. Subsequent to the IPO, the Company became a C Corporation subject to federal, state, and local income taxes with respect to its share of net taxable income of LD Holdings.
Income taxes paid (refunds received) by jurisdiction are as follows:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Federal | $ | (403) | $ | 5,643 | $ | (5,311) | ||||||||||||||
State (1) | (2,510) | 3,381 | (3,559) | |||||||||||||||||
| Total | $ | (2,913) | $ | 9,024 | $ | (8,870) | ||||||||||||||
(1) During the year ended December 31, 2025, the Company received income tax refunds of $2.6 million, $0.3 million, and $0.2 million in California, New Jersey, and Pennsylvania, respectively, and paid income taxes of $0.8 million in New York. The Company paid income taxes of $2.5 million and received an income tax refund of $3.4 million in the state of California for the years ended December 31, 2024 and 2023, respectively.
Temporary differences and carryforwards that give rise to deferred tax assets and liabilities are comprised of the following:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Deferred tax assets: | |||||||||||
| Accrued compensation | $ | 12 | $ | 12 | |||||||
Net operating loss(1) | 124,770 | 67,042 | |||||||||
Tax credits(2) | 2,322 | 172 | |||||||||
| Depreciation | 6 | 7 | |||||||||
| State taxes | — | 331 | |||||||||
| Acquired intangible assets | 120 | 138 | |||||||||
| Charitable contributions carryover | — | 162 | |||||||||
| Gross deferred tax assets before valuation allowance | 127,230 | 67,864 | |||||||||
| Valuation allowance | (7,305) | (172) | |||||||||
| Net deferred tax assets | 119,925 | 67,692 | |||||||||
| Deferred tax liabilities: | |||||||||||
| Outside basis difference | 124,297 | 90,635 | |||||||||
| Total deferred tax liabilities | 124,297 | 90,635 | |||||||||
| Net deferred tax liabilities | $ | (4,372) | $ | (22,943) | |||||||
(1) Federal net operating loss carryforwards begin to expire in 2042; State net operating loss carryforwards begin to expire in 2030 through 2045 with some state providing indefinite carryforwards.
(2) Tax credits begin to expire in 2042.
Deferred income taxes arise from temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements, which will result in taxable or deductible amounts in the future. The deferred tax liability as of December 31, 2025 relates to temporary outside basis differences in the book basis as compared to the tax basis of loanDepot, Inc.’s investment in LD Holdings, net of tax benefits from future deductions for payments made under the TRA as a result of the offering transaction. Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and the Company’s effective tax rate in the future. Deferred income taxes are measured using the applicable tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on the tax rates that have been enacted at the reporting date. The Company measured its deferred tax assets and liabilities at December 31, 2025 and 2024 using the combined federal and state rate (less federal benefit) of 25.8% and 25.8%, respectively. The Company establishes a valuation allowance when it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. In determining the need for a valuation allowance, the Company considered all negative and positive evidence. Based on this evaluation, the Company concluded that it is more likely than not that a portion of the state deferred tax assets will not be realized due to insufficient expected future taxable income in certain state jurisdictions. Accordingly, the Company recorded a partial valuation
allowance of $5.0 million against its state deferred tax assets, and a full valuation allowance on ACT's federal and state net deferred tax assets of $2.3 million as of December 31, 2025. The Company will continue to assess the realizability of its deferred tax assets each reporting period and will adjust the valuation allowance as necessary if new information indicates a change in expectations. The Company recognized a TRA liability of $109.1 million and $80.2 million as of December 31, 2025 and 2024, respectively, which represents the Company’s estimate of the aggregate amount that it will pay under the TRA as a result of the offering transaction. The increase in the TRA liability was due to the number of LLC units exchanged for Class A common stock during the year ended December 31, 2025. Refer to Note 20 - Commitments and Contingencies, for further information on the TRA liability.
Uncertain tax positions relate to various federal and state income tax matters. The income tax returns for 2020-2024 are subject to examination by the relevant taxing authorities. There were no interest or penalties related to uncertain tax positions for the years ended December 31, 2025, 2024, and 2023, respectively. A reconciliation of the beginning and ending amount of uncertain tax positions is as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Beginning balance | $ | 352 | $ | 639 | $ | 497 | |||||||||||
| Increases related to positions taken during prior years | 951 | — | — | ||||||||||||||
| Increases related to positions taken during the current year | — | 181 | — | ||||||||||||||
(Decrease) increase related to positions settled with tax authorities | — | (359) | 212 | ||||||||||||||
| Decreases due to a lapse of applicable statute of limitations | (115) | (109) | (70) | ||||||||||||||
| Ending balance | $ | 1,188 | $ | 352 | $ | 639 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 18, 2022 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.