Velocity Financial, Inc.
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 6, 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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Consolidated Statements of Cash Flows
| Nine Months Ended September 30, | ||
|---|---|---|
| 2026 | 2025 | |
| (Unaudited) | ||
| Cash flows from operating activities: | ||
| Net income | $75,252 | $70,230 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 406 | 393 |
| Amortization of right-of-use assets | 644 | 875 |
| Provision for credit losses | 3,172 | 3,851 |
| Origination of loans held for sale | (243,389) | (47,879) |
| Proceeds from sales of loans held for sale | 219,108 | 46,953 |
| Net accretion of discount on purchased loans and deferred loan origination costs | 2,417 | 2,989 |
| Paid-in-kind interest income | (320) | — |
| Provision for uncollectible corporate and escrow advances receivable | 18 | 711 |
| Gain on disposition of loans | (7,770) | (1,145) |
| Real estate acquired through foreclosure in excess of recorded investment | (11,888) | (12,549) |
| Amortization of debt issuance discount and costs | 9,583 | 7,667 |
| Change in valuation of real estate owned | 15,545 | 10,530 |
| Change in valuation of fair value loans | 39,239 | (95,724) |
| Change in valuation of mortgage servicing rights | (1,826) | 1,566 |
| Change in valuation of fair value securitized debt | (115,927) | 31,254 |
| Change in valuation of fair value retained securities | 602 | — |
| Hedging activities | 4,172 | (3,553) |
| Gain on sale of real estate owned | (432) | (1,242) |
| Stock-based compensation | 8,459 | 6,153 |
| Deferred tax expense (benefit) | 6,968 | (2,160) |
| Change in operating assets and liabilities: | ||
| Accrued interest and other receivables | (10,061) | (14,038) |
| Other assets | (1,677) | (2,004) |
| Accounts payable and accrued expenses | 11,306 | 19,772 |
| Net cash provided by operating activities | 3,601 | 22,650 |
| Cash flows from investing activities: | ||
| Purchase of loans held for investment | (70) | — |
| Origination of loans held for investment | (1,979,814) | (2,033,018) |
| Proceeds from sales of loans originally classified as held for investment | 103,169 | — |
| Payments of loans held for investment | 830,893 | 728,965 |
| Proceeds from sale of real estate owned | 49,436 | 34,399 |
| Capitalized improvement on real estate owned | (1,002) | (99) |
| Change in corporate and escrow advances and note receivable | (17,938) | (2,825) |
| Change in impounds and deposits | 1,376 | 1,117 |
| Purchase of property and equipment | (200) | (224) |
| Net cash used in investing activities | (1,014,150) | (1,271,685) |
| Cash flows from financing activities: | ||
| Warehouse repurchase facilities advances | 1,821,670 | 2,072,225 |
| Warehouse repurchase facilities repayments | (1,582,506) | (2,087,575) |
| Proceeds from unsecured financing | 500,000 | — |
| Proceeds from securitized debt | 1,428,104 | 2,006,012 |
| Repayment of secured financing | (215,000) | — |
| Repayment of securitized debt | (1,060,733) | (736,521) |
| Debt issuance costs | (15,912) | (1,205) |
| Deferred stock issuance costs | — | (379) |
| Proceeds from issuance of common stock related to warrants exercised | — | 10,908 |
| Proceeds from issuance of common stock | 2,646 | 39,931 |
| Purchase of treasury stock | (7,640) | (7,334) |
| Distribution to non-controlling interest | (33) | (47) |
| Net cash provided by financing activities | 870,596 | 1,296,015 |
| Net (decrease) increase in cash, cash equivalents, and restricted cash | (139,953) | 46,980 |
| Cash, cash equivalents, and restricted cash at beginning of period | 249,237 | 70,830 |
| Cash, cash equivalents, and restricted cash at end of period | $109,284 | $117,810 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
| Nine Months Ended September 30, | ||
|---|---|---|
| 2026 | 2025 | |
| (Unaudited) | ||
| Supplemental cash flow information: | ||
| Cash paid during the period for interest | $321,925 | $251,053 |
| Cash paid during the period for income taxes, net | 23,726 | 26,801 |
| Noncash transactions from investing and financing activities: | ||
| Transfer of loans held for investment to held for sale | 132,438 | — |
| Transfer of loans held for investment to real estate owned | 87,945 | 76,738 |
| Transfer of accrued interest to loans held for investment | 1,648 | 1,893 |
| Recognition of new leases in exchange for lease obligations | 1,200 | 1,384 |
| Deferred stock issuance costs charged against additional paid-in capital | — | 488 |
| Retained securities | 29,924 | — |
| Mortgage servicing rights | 1,619 | — |
| Paid-in-kind interest income | 320 | — |
VELOCITY FINANCIAL, INC. AND SUBSIDIARIES
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