Velocity Financial, Inc.

VEL

Financial ServicesSmall CapUS Equities · NYSE / NASDAQ

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Company Profile

Velocity Financial, Inc. operates as a real estate finance company in the United States. The company originates, securitizes, and manages a portfolio of loans, which are secured by real estate, including investor loans unit residential rental properties; residential rental properties office; and loans for multi-family, mixed use, and commercial properties. The company also provides warehouse and other properties. It offers its products through a network of independent mortgage brokers and direct borrower relationships. The company was founded in 2004 and is headquartered in Westlake Village, California

Valuation

Market Cap$752M

Current Price$19.16

P/E Ratio6.97

P/B Ratio1.11

EV / EBITDA-

EV / Sales31.93

Profitability

Operating Margin-

Net Profit Margin33.7%

EBITDA Margin-

Returns

ROE15.5%

ROCE-

ROIC %-

ROA1.4%

Solvency

Current Ratio15.20

Debt / Equity9.68

Debt / Assets0.89

CFO / Net Profit0.17

Price History▲ 7.22% over 1Y

Technical Chart

Historical Performance Charts

5-year financial trends. Figures in USD millions.

Revenue vs Net Profit (5Y)

Free Cash Flow vs Operating Cash Flow (5Y)

Operating Margin % (5Y)

No margin data.

Growth Summary

Latest fiscal year: 2025

Revenue$312M▲ 47.1%

EBITDA-

Net Profit$105M▲ 53.5%

Cash from Ops (CFO)$18M

Free Cash Flow (FCF)$17M

Revenue CAGR 3Y-

Revenue CAGR 5Y-

Net Profit CAGR 3Y-

Net Profit CAGR 5Y-

Historical Growth

Year-by-year revenue, profitability, and cash flow (USD millions, last 10 years)

Year	Revenue	EBITDA	Net Profit	FCF	ROE	Rev Growth 1Y	NP Growth 1Y
2025	$312M	-	$105M	$17M	15.5%	47.1%	53.5%
2024	$212M	-	$68M	$33M	13.2%	36.2%	30.9%
2023	$156M	-	$52M	$49M	12.0%	70.5%	62.3%
2022	$91M	-	$32M	$48M	8.5%	-	-

Financial Statements

Income statement, balance sheet, and cash flow as reported

Consolidated Figures in USD Millions.

Metric	2022	2023	2024	2025
Total Revenue	91.19	155.51	211.74	311.52
Pretax Income	44.55	71.13	96.39	146.24
Tax Provision	12.03	18.83	27.93	41.26
Net Income	32.21	52.27	68.42	105.05
Net Income Common Stockholders	31.72	51.52	67.58	103.71
Interest Expense	157.19	203.02	271.04	365.05
Interest Income	240.34	315.97	413.33	556.68
Selling General And Administration	35.93	52.99	74.55	94.95
Normalized Income	32.21	52.27	68.42	105.05
Basic EPS	0.99	1.60	2.07	2.81
Diluted EPS	0.94	1.52	1.91	2.75
Tax Effect Of Unusual Items	0	0	0	0
Tax Rate For Calcs	0.27	0.25	0.29	0.28
Net Income From Continuing Operation Net Minority Interest	32.21	52.27	68.42	105.05
Reconciled Depreciation	2.12	2.30	2	2.02
Net Interest Income	83.15	112.94	142.29	191.64
Net Income From Continuing And Discontinued Operation	32.21	52.27	68.42	105.05
Rent Expense Supplemental	1.75	1.93	1.93	1.12
Diluted Average Shares	34.13	34.48	35.76	38.18
Basic Average Shares	31.91	32.21	32.65	36.85
Diluted NI Availto Com Stockholders	31.72	51.52	67.58	103.71
Otherunder Preferred Stock Dividend	0.49	0.75	0.83	1.35
Minority Interests	-0.31	-0.02	-0.05	0.07
Net Income Including Noncontrolling Interests	32.52	52.29	68.47	104.98
Net Income Continuous Operations	32.52	52.29	68.47	104.98
Gain On Sale Of Security	0	-9	2.58	-30.45
Selling And Marketing Expense	1.42	0.87	1.24	1.43
General And Administrative Expense	34.51	52.12	73.31	93.52
Other Gand A	0	0	0	0
Insurance And Claims	2.30	1.85	1.79	2.18
Rent And Landing Fees	1.75	1.93	1.93	1.12
Salaries And Wages	30.46	48.34	69.59	90.22
Operating Revenue	91.19	155.51	211.74	311.52
Professional Expense And Contract Services Expense	4.18	4.60	7.62	6.10
Other Non Interest Expense	5.37	24.88	32.01	58.43

Peer Comparison

Financial Services sector peers, ranked by market cap

Company	Ticker	Market Cap	P/E	P/B	ROE	EV/EBITDA
Velocity Financial, Inc.this co.	VEL	$752M	6.97↓ discount	1.11	15.5%	-
OppFi Inc.	OPFI	$785M	9.28	4.29	8.5%	-
Bowhead Specialty Holdings Inc.	BOW	$784M	15.01	1.74	12.0%	9.66
First Financial Corporation	THFF	$772M	9.55	1.19	12.2%	-
Southern Missouri Bancorp, Inc.	SMBC	$751M

Learn while you research

Hand-picked academy chapters to deepen your understanding of Velocity Financial, Inc. and the metrics that matter.

01 Stock Valuation BasicsHow to think about what a fair price for a stock looks like.7 min read 02 Value Investing

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Year

Revenue

EBITDA

Net Profit

FCF

ROE

Rev Growth 1Y

NP Growth 1Y

2025

$312M

$105M

$17M

15.5%

47.1%

53.5%

2024

$212M

$68M

$33M

13.2%

36.2%

30.9%

2023

$156M

$52M

$49M

12.0%

70.5%

62.3%

2022

$91M

$32M

$48M

8.5%

Metric

2022

2023

2024

2025

Total Revenue

91.19

155.51

211.74

311.52

Pretax Income

44.55

71.13

96.39

146.24

Tax Provision

12.03

18.83

27.93

41.26

Net Income

32.21

52.27

68.42

105.05

Net Income Common Stockholders

31.72

51.52

67.58

103.71

Interest Expense

157.19

203.02

271.04

365.05

Interest Income

240.34

315.97

413.33

556.68

Selling General And Administration

35.93

52.99

74.55

94.95

Normalized Income

32.21

52.27

68.42

105.05

Basic EPS

0.99

1.60

2.07

2.81

Diluted EPS

0.94

1.52

1.91

2.75

Tax Effect Of Unusual Items

Tax Rate For Calcs

0.27

0.25

0.29

0.28

Net Income From Continuing Operation Net Minority Interest

32.21

52.27

68.42

105.05

Reconciled Depreciation

2.12

2.30

2.02

Net Interest Income

83.15

112.94

142.29

191.64

Net Income From Continuing And Discontinued Operation

32.21

52.27

68.42

105.05

Rent Expense Supplemental

1.75

1.93

1.12

Diluted Average Shares

34.13

34.48

35.76

38.18

Basic Average Shares

31.91

32.21

32.65

36.85

Diluted NI Availto Com Stockholders

31.72

51.52

67.58

103.71

Otherunder Preferred Stock Dividend

0.49

0.75

0.83

1.35

Minority Interests

-0.31

-0.02

-0.05

0.07

Net Income Including Noncontrolling Interests

32.52

52.29

68.47

104.98

Net Income Continuous Operations

32.52

52.29

68.47

104.98

Gain On Sale Of Security

-9

2.58

-30.45

Selling And Marketing Expense

1.42

0.87

1.24

1.43

General And Administrative Expense

34.51

52.12

73.31

93.52

Other Gand A

Insurance And Claims

2.30

1.85

1.79

2.18

Rent And Landing Fees

1.75

1.93

1.12

Salaries And Wages

30.46

48.34

69.59

90.22

Operating Revenue

91.19

155.51

211.74

311.52

Professional Expense And Contract Services Expense

4.18

4.60

7.62

6.10

Other Non Interest Expense

5.37

24.88

32.01

58.43

Company

Ticker

Market Cap

P/E

P/B

ROE

EV/EBITDA

Velocity Financial, Inc.this co.

VEL

$752M

6.97↓ discount

1.11

15.5%

OppFi Inc.

OPFI

$785M

9.28

4.29

8.5%

Bowhead Specialty Holdings Inc.

BOW

$784M

15.01

1.74

12.0%

9.66

First Financial Corporation

THFF

$772M

9.55

1.19

12.2%

Southern Missouri Bancorp, Inc.

SMBC

$751M

Velocity Financial, Inc.

Valuation

Profitability

Returns

Solvency

Historical Performance Charts

Revenue vs Net Profit (5Y)

Free Cash Flow vs Operating Cash Flow (5Y)

Operating Margin % (5Y)

Growth Summary

Historical Growth

Financial Statements

Peer Comparison

Velocity Financial, Inc.

Valuation

Profitability

Returns

Solvency

Historical Performance Charts

Revenue vs Net Profit (5Y)

Free Cash Flow vs Operating Cash Flow (5Y)

Operating Margin % (5Y)

Growth Summary

Historical Growth

Financial Statements

Peer Comparison

Key concepts to brush up on