Velocity Financial/$VEL
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Capital at risk
About Velocity Financial
Velocity Financial Inc is a United States-based real estate finance company. Company operates in a large fragmented market with substantial demand for financing and limited supply of institutional financing alternative The company originates and manages investor loans secured by residential rental and small commercial properties. The company earns revenue in the form of interest income. It operates in New York, California, Florida, New Jersey, and other states.
- Ticker
- $VEL
- Sector
- Finance
- Primary listing
- NYSE
- Employees
- 368
- Headquarters
- Westlake Village, United States
- Website
- www.velfinance.com
VEL Metrics
BasicAdvanced
$632M
5.82
$2.75
0.70
-
Price and volume
Market cap
$632M
Beta
0.7
52-week high
$21.40
52-week low
$15.09
Average daily volume
133K
Financial strength
Current ratio
15.552
Quick ratio
15.552
Long term debt to equity
9.295
Total debt to equity
9.725
Profitability
Gross margin (TTM)
75.67%
Net profit margin (TTM)
37.91%
Operating margin (TTM)
53.34%
Effective tax rate (TTM)
28.60%
Revenue per employee (TTM)
$770,000
Management effectiveness
Return on assets (TTM)
1.50%
Return on equity (TTM)
16.32%
Valuation
Price to earnings (TTM)
5.815
Price to revenue (TTM)
2.207
Price to book
0.87
Price to tangible book (TTM)
0.86
Price to free cash flow (TTM)
27.319
Free cash flow yield (TTM)
3.66%
Free cash flow per share (TTM)
0.586
Growth
Revenue change (TTM)
42.55%
Earnings per share change (TTM)
24.09%
3-year revenue growth (CAGR)
35.29%
3-year earnings per share growth (CAGR)
31.50%
Bulls say / Bears say
The loan portfolio reached $7.0 billion at 30 June 2026, up 19.2% year on year, while demand remained strong across residential rental and small commercial lending. The 64.6% weighted average loan-to-value ratio provides meaningful collateral support. (Velocity Financial)
Credit performance is showing resilience despite the growth: non-performing loans fell to 9.6% of held-for-investment loans from 10.3% a year earlier, charge-offs were just $0.7 million, and resolved loans produced 107.7% total recoveries. (Velocity Financial)
The planned Toorak transaction could broaden the business beyond balance-sheet lending by adding roughly $3 billion of managed loans and more fee-based income. Velocity expects it to lift origination capacity from about $2.7 billion to more than $4.8 billion and be accretive to GAAP earnings from 2027. (Velocity Financial)
Credit risk remains material: non-performing loans were still $673.3 million, or 9.6% of held-for-investment loans, and the real-estate-owned portfolio had grown to $142.1 million. A weaker property market could therefore create losses well above the recent low charge-off figure. (Velocity Financial)
Earnings momentum softened in the second quarter: loan production fell to $672.6 million from $725.4 million a year earlier, portfolio net interest margin narrowed to 3.66% from 3.82%, and diluted EPS dropped to $0.64 from $0.69. (Velocity Financial)
Growth is constrained by leverage and funding needs. Management said it does not expect to exceed roughly 10 times leverage and may need further equity or debt as the portfolio expands, while the new $500 million senior notes carry a high 9.375% coupon. (The Motley Fool, StockTitan)
Data summarised monthly by Lightyear AI. Last updated on 20 Sept 2026.
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Funds containing VEL
Fund name | Fund size | $VEL weighting |
|---|---|---|
SPDR Russell 2000 US Small Cap€R2US | €4.8B | 0.01% |
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