Velocity Financial, Inc.

VEL

$18.13

+1.12%

2026-09-02 16:00:02 EDT+$0.20

Financial Services

Financial - Mortgages

NYSE

Active Trading

Operating across the United States, Velocity Financial, Inc. functions as a specialized real estate finance firm. Its core business involves generating and ...

Price Action of VEL

$18.13

+1.12%+$0.20

High—

Low—

52W High-15.2%

Rel. vol—

Interval

Range3.4h

Volume—SMA5SMA10

—

Velocity Financial, Inc. (NYSE: VEL) is a vertically integrated real estate finance company headquartered in Westlake Village, California. Founded in 2004 by Christopher D. Farrar and Jeff Taylor, the company has established itself as a market leader in the origination and management of business purpose loans. Its primary focus is ...Velocity Financial, Inc. (NYSE: VEL) is a vertically integrated real estate finance company headquartered in Westlake Village, California. Founded in 2004 by Christopher D. Farrar and Jeff Taylor, the company has established itself as a market leader in the origination and management of business purpose loans. Its primary focus is on providing financing solutions for 1-4 unit residential rental properties and smaller commercial real estate assets. The company operates nationwide, leveraging an extensive network of independent mortgage brokers to deliver its products. With 371 full-time employees, Velocity maintains a lean operational structure while managing a substantial loan portfolio. Financially, the company has a market capitalization of approximately $724 million, with revenue per share of $13.49 and a price-to-earnings ratio of 6.64, indicating a relatively low valuation compared to earnings. Its gross profit margin is high at 75.7%, and it maintains a return on equity of 15.8%. The company went public in January 2020 and is listed on the New York Stock Exchange. Key leadership includes CEO Christopher D. Farrar, who has been at the helm since co-founding the company. The company's business model involves generating investment loans secured by real estate, serving a niche market of small-scale investors. It also focuses on building long-term relationships with mortgage brokers and borrowers. The company's financial health is characterized by a debt-to-equity ratio of 0.674, and it does not pay dividends. Its enterprise value stands at approximately $965 million, with an EV/EBITDA of 2.58. Velocity has demonstrated resilience in the real estate finance sector, aiming for continued growth and innovation in its services.ExpandCollapse

Founded

2004

Employees

368

CEO

Christopher D. Farrar

Full Name

Velocity Financial, Inc.

Sector

Financial Services

Industry

Financial - Mortgages

ROE

15.83%

Market Cap

$0.71B

Current Ratio

0.94

WACC

4.41%

ROIC

-4632.75%

Contact Information

https://www.velfinance.com

818 532 3700

2945 Townsgate Road, Westlake Village, CA 91361

Key Metrics of VEL

Snapshot

Latest / TTM · 6 periods

Market Cap

$711.70M

ROCE

6.6%

EV / EBITDA

15.85x

-0.8% YoY

FCF Yield

3.1%

+0.8% YoY

Cash Conversion Cycle

-431.6d

Current Ratio

0.94

Quick take

TTM —

Current ratio below 1.0

Negative working capital

Financial Highlights of VEL

Profitability trend

Latest / TTM · 6 periods

Gross Margin

78.9%

Net Margin

15.4%

P/E Ratio

6.62x

n/a

Debt / Equity

9.77

n/a

Current Ratio

0.94

Dividend Yield

0.0%

Understanding

TTM —

Current ratio below 1.0

High debt to equity

Calendar of VEL

Upcoming

Sep 30, 2026In 26 days
Q3 FY2026 · Estimated results
Est. EPS $0.71 · Revenue $93.15M · 3 analysts
Dec 30, 2026
Q4 FY2026 · Estimated results
Est. EPS $0.72 · Revenue $93.19M · 3 analysts
Dec 31, 2026
FY2026 · Estimated annual results
Est. EPS $2.81 · Revenue $278.20M · 2 analysts
Mar 30, 2027
Q1 FY2027 · Estimated results
Est. EPS $0.68 · Revenue $88.91M · 1 analysts

Recent history

Aug 6, 2026
Q2 FY2026 · Results reported
EPS $0.63 · Revenue $178.75M
View filing
May 7, 2026
Q1 FY2026 · Results reported
EPS $0.56 · Revenue $167.92M
View filing
Mar 12, 2026
FY2025 · Annual results
EPS $2.75 · Revenue $714.45M
View filing
Nov 7, 2025
Q3 FY2025 · Results reported
EPS $0.65 · Revenue $172.29M
View filing
Aug 8, 2025
Q2 FY2025 · Results reported
EPS $0.68 · Revenue $166.02M
View filing
Mar 31, 2025
Q1 FY2025 · Results reported
EPS $0.51 · Revenue $119.26M

Financial Statements of VEL

5Y Trend (Revenue, Earnings, FCF)

Metric	Latest	YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.	QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).	$714.4M	+48.0%	+6.5%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.	$105.1M	+53.5%	+12.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.	+95.3%	+118.6%	-3.6%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).	+71.6%	+258.4%	-1.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.	+14.7%	+3.8%	+5.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.	$17.9M	-52.3%	-69.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.	+2.5%	-67.8%	-71.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.	972.1%	+3.4%	+0.8%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.	0.63x	+47.7%	+55.9%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.	$7.4B	+33.5%	+4.9%

Actual vs Estimate

A Dec 31Q Sep 30

Metric	Annual (A vs E)	Annual Surprise	Quarter (A vs E)	Quarter Surprise
EPS Surprise	2.75 vs 2.70	+1.7%	0.63 vs 0.71	-11.8%
Revenue Surprise	$714.4M vs $186.0M	+284.1%	$178.8M vs $93.2M	+91.9%

Insider Transactions of VEL

Acquisitions (A)

Since Jul 1, 2026

Disposals (D)

Since Jul 1, 2026

Monthly shares of acquisitions/disposals with close price trend (shared daily price source)

Insider Trading Snapshot

Date	Executive	Title	Security	Side	Shares	Price
Sep 1, 2026	Kelly Roland Thomas	officer: Chief Legal Officer and GC	Common Stock	D	1,600	$18.00
Aug 11, 2026	Taylor Jeffrey T.	officer: Executive VP, Capital Markets	Common Stock	D	4,330	$19.06
Aug 11, 2026	Tam Fiona	officer: Chief Accounting Officer	Common Stock	D	1,232	$19.00
Aug 10, 2026	Szczepaniak Mark R	officer: Chief Financial Officer	Common Stock	D	2,000	$18.16
Aug 6, 2026	Kelly Roland Thomas	officer: Chief Legal Officer and GC	Common Stock	D	1,600	$18.00

Earnings Call Transcript of VEL

1 transcript segments

Q2 2026

Unknown Speaker

Operator: Hello, and welcome to the Velocity Financial Second Quarter 2026 Results Call. [Operator Instructions] I will now turn the conference over to Chris Oltmann, Corporate Treasurer. Please go ahead. Christopher Oltmann: Thanks, JL. Hello, everyone, and thank you for joining us today for the discussion of Velocity's Second Quarter 2026 results. Joining me today are Chris Farrar, Velocity's President and Chief Executive Officer; and Mark Szczepaniak, Velocity's Chief Financial Officer. Earlier this afternoon, we issued a press release with our second quarter results, and you can find that press release and the accompanying presentation that we will refer to during this call on our Investor Relations website at www.velfinance.com. I'd like to remind everyone that today's call may include forward-looking statements, which are uncertain and outside of the company's control, and actual results may differ materially. For a discussion of some of the risks and other factors that could affect results, please see the risk factors and other cautionary statements made in our communications with shareholders, including the risk factors disclosed in our filings with the Securities and Exchange Commission. Please also note that the content of this conference call contains time-sensitive information that is accurate only as of today, and we do not undertake any duty to update forward-looking statements. We may also refer to certain non-GAAP measures on this call. For reconciliations of these non-GAAP measures, you should refer to the earnings materials in our Investor Relations website. And finally, today's call is being recorded and will be available on the company's website later today. And with that, I will now turn the call over to Chris Farrar. Christopher Farrar: Thank you, and good afternoon, everyone. I appreciate you taking the time to join us today. I'll start with how the quarter came together and then walk through the highlights. Mark will then walk you through the financials in detail before we open up for questions. Second quarter was, in many ways, a continuation of the story we've been telling all year. Demand for our products stayed healthy across both the traditional commercial and 1-4 family rental markets. Our portfolio kept compounding and our credit book performed the way we've come to expect from a well-seasoned low LTV loan book. We delivered core net income of $27.9 million this quarter, with pre-tax income up 3.9% year-over-year to $35.2 million. The modest year-over-year dip in GAAP net income and EPS came almost entirely from a higher effective tax rate, not from any softening in the underlying business. If anything, the underlying business kept getting stronger. Diluted book value per share grew to $18.43, up nearly $2.81 from a year ago, which is really the number that best captures what compounding at Velocity looks like over time. Credit remains our top priority, and this quarter, we reinforced that discipline. …

Leadership Team of VEL

8 executives

Name	Title	Compensation	Gender	Year Born	Status
Christopher D. Farrar	Co-Founder, Chief Executive Officer, President & Director	USD 3,664,245	Male	1967	Active
Mark R. Szczepaniak	Chief Financial Officer	USD 1,719,250	Male	1958	Active
Jeffrey T. Taylor	Executive Vice President of Capital Markets	USD 1,457,013	Male	1969	Active
Joseph A. Cowell	Chief Operating Officer	USD 420,600	Male	1980	Active
Christopher J. Oltmann	Corporate Treasurer & Director of Investor Relations	—	Male	1966	Active
Roland Thomas Kelly	Chief Legal Officer, General Counsel & Corporate Secretary	—	Male	1971	Active
Fiona Tam	Chief Accounting Officer	—	Female	1971	Active
Dean Thevaos	Chief Technology Officer	—	Male	—	Active

Recent News of VEL

Seeking Alpha8/6/2026Neutral

Velocity Financial, Inc. (VEL) Q2 2026 Earnings Call Transcript

Business Wire8/5/2026Neutral

Velocity Financial, Inc. Reports Second Quarter 2026 Results

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Velocity Financial, Inc. (NYSE: VEL) (Velocity or the Company), a leader in business purpose loans, reported net income of $25.2 million and core net income of $27.9 million for 2Q26, compared to $26.0 million and $27.5 million, respectively, for 2Q25. Earnings and core earnings per diluted share were $0.64 and $0.71 for 2Q26, compared to $0.69 and $0.73, respectively, for 2Q25. “Velocity continued to deliver impressive earnings in the second quarter o.

Business Wire7/22/2026Neutral

Velocity Financial, Inc. Announces Date of Second Quarter 2026 Financial Results Webcast and Conference Call

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Velocity Financial, Inc. (NYSE:VEL) (“Velocity” or “Company”), a leader in investor real estate loans, will release its second quarter 2026 results after the market close on Wednesday, August 5, 2026. Velocity's executive management team will host a conference call and webcast to review its financial results at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time on the same day. Webcast Information The conference call will be webcast live in listen-only mo.

Business Wire7/3/2026Neutral

Velocity Commercial Capital Securitization Ratings Affirmed and Upgraded by Kroll Bond Rating Agency

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Velocity Financial, Inc. (NYSE: VEL) (“Velocity” or the “Company”), a leader in investor real estate loans, today announced that Kroll Bond Rating Agency (“KBRA”) has reviewed the ratings on 30 of the outstanding securitizations issued by its wholly-owned subsidiary, Velocity Commercial Capital, LLC (“VCC”), resulting in 379 rating affirmations and 27 rating upgrades of the underlying tranches. These rating actions occurred in conjunction with KBRA's c.

Business Wire6/2/2026Neutral

Velocity Appoints Dean Thevaos as Chief Technology Officer

WESTLAKE VILLAGE, Calif.--(BUSINESS WIRE)--Velocity Financial, Inc. (NYSE:VEL) (“Velocity” or “Company”), a leader in investor real estate loans, today announced the appointment of Dean Thevaos as Chief Technology Officer, effective June 1. Thevaos will lead Velocity's technology and engineering organization, with a mandate to modernize the company's platform, deepen its product capabilities, and build the operational infrastructure that supports efficient, scalable growth. Mr. Thevaos is widel.

Historical Employee Count of VEL

Current

371

Change

+20.06%

Minimum

194

Maximum

371

Recent Filings

Report Date	Employees	Form Type	Filing Date	SEC Filing
Dec 31, 2025	371	10-K	Mar 12, 2026	View
Dec 31, 2024	309	10-K	Mar 12, 2025	View
Dec 31, 2023	253	10-K	Mar 15, 2024	View
Dec 31, 2022	194	10-K	Mar 13, 2023	View
Dec 31, 2021	215	10-K	Mar 15, 2022	View

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Velocity Financial, Inc.