Key facts
- loanDepot received a deficiency notice from the NYSE due to its Class A common stock trading below $1 for 30 consecutive days.
- The NYSE notice does not immediately affect the stock's listing, trading, or the company's daily operations.
- loanDepot has six months to bring its share price and 30-day average back above $1 to comply with listing standards.
- The company may consider a reverse stock split, subject to shareholder approval, as a potential compliance measure.
- loanDepot reported a second-quarter net loss of $6.6 million, an improvement from the previous quarter, with revenue rising 18%.
loanDepot Inc. has received a deficiency notice from the New York Stock Exchange after its Class A common stock failed to maintain an average closing price of at least $1 for 30 consecutive trading days. The company disclosed this development on Friday.
The notice from the NYSE does not immediately impact loanDepot's stock listing, trading activities, or its day-to-day business operations, including its reporting obligations to the Securities and Exchange Commission (SEC).
loanDepot stated its intention to cure the deficiency and comply with the NYSE's continued listing standards. Under the exchange's rules, the company has 10 business days to inform the NYSE of its plan and is granted a six-month period to bring its share price and 30-day average back above the $1 threshold.
To address the non-compliance, loanDepot indicated it would explore "available alternatives," which may include a reverse stock split. Such a move would require shareholder approval at the company's next annual meeting, anticipated in early June 2027.
Founder and CEO Anthony Hsieh expressed optimism regarding the company's ongoing transformation strategy, highlighting progress in unit volume, revenue, and purchase market share. He also noted expansions into home equity lending and a re-entry into the wholesale market.
Financially, loanDepot reported a second-quarter net loss of $6.6 million, a significant improvement from the $54.9 million loss in the first quarter. Revenue increased by 18% to $337.3 million, driven by a 4% rise in originations to nearly $8 billion and an improved gain on sale margin of 3.45%, boosted by a greater mix of home equity products.