Investment Thesis
loanDepot exhibits catastrophic financial deterioration with revenue collapsing 99.1% YoY and the company burning $177M in free cash flow while operating at massive losses. With a debt-to-equity ratio of 6.27x, interest coverage of -0.8x, and minimal equity cushion of $337M against $6.9B in liabilities, the company faces severe solvency risk. At current cash burn rates, the $277M cash balance provides insufficient runway.
Strengths
- Cash balance of $277.4M provides near-term liquidity
- Net loss improved 46.8% YoY indicating some stabilization trend
- Total assets of $7.2B represent potential asset base for restructuring
Risks
- Revenue collapsed 99.1% YoY indicating fundamental business failure or severe market disruption
- Negative operating cash flow of -$169.3M with $177.2M free cash burn unsustainable long-term
- Debt-to-equity ratio of 6.27x is extremely high with inability to cover interest expenses (-0.8x coverage)
- Stockholders equity of only $337.3M against $6.9B liabilities creates insolvency risk
- Operating and net margins of -2038% and -1386% respectively indicate structural unprofitability
- Negative return on equity and assets suggest shareholder value destruction
Key Metrics to Watch
- Quarterly revenue trends and stabilization signals
- Operating cash flow reversion to positive territory
- Debt refinancing risk and covenant compliance
- Equity adequacy relative to leverage obligations
Financial Metrics
Revenue
2.7M
Net Income
-37.5M
EPS (Diluted)
$-0.36
Free Cash Flow
-177.2M
Total Assets
7.2B
Cash
277.4M
Profitability Ratios
Gross Margin
N/A
Operating Margin
-2,038.2%
Net Margin
-1,386.4%
ROE
-11.1%
ROA
-0.5%
FCF Margin
-6,553.2%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
6.27x
Debt/Assets
95.3%
Interest Coverage
-0.82x
Long-term Debt
2.1B
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-08T08:28:29.566732 |
Data as of: 2026-03-31 |
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