Velocity Financial, Inc.
For the period ended Dec 31, 2025. Filed Mar 12, 2026.
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FY2025 · Filed Mar 12, 2026
VEL$16.71-5.3%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Consolidated Statements of Cash Flows
CONSOLIDATED STATE MENTS OF CASH FLOWS
| December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Cash flows from operating activities: | |||
| Net income | $104,983 | $68,466 | $52,293 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation and amortization | 516 | 793 | 752 |
| Amortization of right-of-use assets | 1,504 | 1,207 | 1,545 |
| Provision for credit losses | 5,805 | 1,173 | 1,915 |
| Origination of loans held for sale | (49,697) | (23,554) | (38,036) |
| Proceeds from sales of loans held for sale | 50,920 | 23,956 | 25,817 |
| Net accretion of discount on purchased loans and deferred loan origination costs | 3,795 | 4,411 | 4,813 |
| Provision for (reversal of) uncollectible corporate and escrow advances receivable | (158) | 554 | 721 |
| Gain on disposition of loans | (1,257) | (1,236) | (826) |
| Gain on sale of loans to a related party | (19,344) | — | — |
| Real estate acquired through foreclosure in excess of recorded investment | (15,653) | (8,704) | (7,412) |
| Amortization of debt issuance discount and costs | 10,128 | 12,244 | 18,624 |
| Change in valuation of real estate owned | 17,520 | 6,121 | 3,903 |
| Change in valuation of fair value loans | (116,853) | (55,857) | (47,850) |
| Change in valuation of mortgage servicing rights | 998 | (375) | 660 |
| Change in valuation of fair value securitized debt | 30,454 | (2,581) | 9,002 |
| Hedging activities | (2,898) | 1,066 | (2,138) |
| Gain on sale of real estate owned | (1,445) | (4,275) | (568) |
| Stock-based compensation | 8,284 | 6,155 | 4,128 |
| Deferred tax (benefit) expense | (8,134) | (11,431) | 2,694 |
| Change in operating assets and liabilities: | |||
| Accrued interest and other receivables | (17,215) | (6,374) | (9,227) |
| Other assets | (3,650) | (284) | 8,361 |
| Accounts payable and accrued expenses | 19,558 | 26,280 | 19,664 |
| Net cash provided by operating activities | 18,161 | 37,755 | 48,835 |
| Cash flows from investing activities: | |||
| Purchase of loans held for investment | — | (16,670) | (13,823) |
| Origination of loans held for investment | (2,665,814) | (1,817,600) | (1,079,811) |
| Proceeds from sales of loans originally classified as held for investment | — | 50,204 | 21,485 |
| Proceeds from sales of loans originally classified as held for investment to a related party | 128,935 | — | — |
| Payments of loans held for investment | 963,810 | 722,986 | 459,681 |
| Proceeds from sale of real estate owned | 55,581 | 32,979 | 21,747 |
| Capitalized improvement on real estate owned | (1,285) | — | — |
| Change in corporate and escrow advances receivable | (1,565) | (10,515) | (3,039) |
| Change in impounds and deposits | (1,163) | (2,058) | 9,208 |
| Purchase of property and equipment | (281) | (289) | (180) |
| Proceeds from sale of property and equipment | — | 640 | — |
| Purchase of mortgage servicing rights | — | (4,759) | — |
| Net cash used in investing activities | (1,521,782) | (1,045,082) | (584,732) |
| Cash flows from financing activities: | |||
| Warehouse and repurchase facilities advances | 2,633,807 | 1,946,797 | 1,192,999 |
| Warehouse and repurchase facilities repayments | (2,673,414) | (1,933,102) | (1,191,642) |
| Proceeds from secured financing | — | 74,311 | — |
| Proceeds of securitized debt | 2,650,903 | 1,590,197 | 975,072 |
| Repayment of securitized debt | (971,748) | (666,274) | (438,763) |
| Purchase of treasury stock | (7,335) | (1,550) | (861) |
| Debt issuance costs | (1,623) | (3,903) | (3,062) |
| Proceeds from issuance of common stock related to warrants exercised | 10,908 | — | — |
| Proceeds from issuance of common stocks, net | 40,969 | 10,145 | 2,305 |
| Deferred stock issuance costs | (392) | (186) | — |
| Distribution to non-controlling interest | (47) | (205) | (280) |
| Net cash provided by financing activities | 1,682,028 | 1,016,230 | 535,768 |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 178,407 | 8,903 | (129) |
| Cash, cash equivalents, and restricted cash at beginning of year | 70,830 | 61,927 | 62,056 |
| Cash, cash equivalents, and restricted cash at end of year | $249,237 | $70,830 | $61,927 |
| December 31, | |||
|---|---|---|---|
| 2025 | 2024 | 2023 | |
| Supplemental cash flow information: | |||
| Cash paid during the year for interest | $344,882 | $251,259 | $180,364 |
| Cash paid during the year for income taxes | 50,736 | 41,549 | 7,648 |
| Noncash transactions from investing and financing activities: | |||
| Transfer of loans held for investment to loans held for sale | 109,806 | 35,067 | 42,029 |
| Transfer of loans held for investment to real estate owned | 105,006 | 49,852 | 48,614 |
| Transfer of loans held for sale to held for investment | — | 2,612 | 16,246 |
| Capitalized interest on loans held for investment | 2,304 | 1,403 | 2,395 |
| Discount on issuance of securitized debt | 4,279 | — | 1,636 |
| Recognition of new leases in exchange for lease obligations | 1,829 | 1,180 | 1,689 |
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