The firm maintains a vulnerable capital structure characterized by a debt-to-equity ratio that peaked at 9.68x in 2025Q4, indicating a heavy reliance on debt to fund its $7.6 billion asset base.
| Total Current Assets | 308.35M | 301.62M | 212.34M | 163.65M | 142.75M | 125.43M | 101.68M | 91.86M | 68.94M | 51.13M | 49.98M |
| Cash & Short-Term Investments | - | - | - | - | - | - | - | - | - | - | - |
| Cash Only | - | - | - | - | - | - | - | - | - | - | - |
| Short-Term Investments | - | - | - | - | - | - | - | - | - | - | - |
| Accounts Receivable | - | - | - | - | - | - | - | - | - | - | - |
| Days Sales Outstanding | - | - | - | - | - | - | - | - | - | - | - |
| Inventory | - | - | - | - | - | - | - | - | - | - | - |
| Days Inventory Outstanding | - | - | - | - | - | - | - | - | - | - | - |
| Other Current Assets | 0 | 157.13M | 0 | 0 | 0 | -1.63M | 0 | 0 | 0 | 0 | 0 |
| Total Non-Current Assets | 26.56M | 7.08B | 5.32B | 4.24B | 3.61B | 21.5M | 2B | 2.12B | 1.73B | 1.32B | 1.08B |
| Property, Plant & Equipment | 1.32M | 4.24M | 4.15M | 5.33M | 5.78M | 7.57M | 8.93M | 10.69M | 5.54M | 5.77M | 3.88M |
| Fixed Asset Turnover | 478.24x | 168.50x | 116.30x | 24.72x | 42.97x | 23.94x | 18.58x | 14.30x | 21.95x | 16.46x | 19.48x |
| Goodwill | 6.78M | 6.78M | 6.78M | 6.78M | 6.78M | 6.78M | 0 | 0 | 4.32M | 0 | 0 |
| Intangible Assets | 0 | 12.96M | 13.71M | 8.58M | 9.24M | 7.15M | 0 | 0 | 4.78M | 0 | 0 |
| Long-Term Investments | 6.05B | 6.76B | 5.19B | 4.15B | 3.55B | 2.62B | 1.96B | 2.08B | 0 | 1.31B | 0 |
| Other Non-Current Assets | - | - | - | - | - | - | - | - | - | - | - |
| Total Assets | 7.59B | 7.38B | 5.53B | 4.4B | 3.75B | 2.81B | 2.1B | 2.21B | 1.74B | 1.37B | 1.13B |
| Asset Turnover | 0.10x | 0.10x | 0.09x | 0.03x | 0.07x | 0.06x | 0.08x | 0.07x | 0.07x | 0.07x | 0.07x |
| Asset Growth % | 127.31% | 33.54% | 25.49% | 17.49% | 33.3% | 33.74% | -5.05% | 27.63% | 26.49% | 21.07% | - |
| Total Current Liabilities | 485.44M | 476.82M | 495.9M | 456.72M | 422.34M | 0 | 139.28M | 477.69M | 26.8M | 107.33M | 1.96B |
| Accounts Payable | 0 | 168.31M | 147.81M | 121.97M | 91.53M | 92.19M | 63.36M | 56.15M | 26.8M | 22.03M | 0 |
| Days Payables Outstanding | - | - | - | - | - | - | - | - | - | - | - |
| Short-Term Debt | 485.44M | 308.51M | 348.08M | 334.75M | 330.81M | 301.07M | 75.92M | 421.55M | 0 | 85.3M | 0 |
| Deferred Revenue (Current) | 0 | - | - | - | - | - | - | - | - | - | - |
| Other Current Liabilities | 0 | 0 | 0 | 0 | 0 | -602.14M | 0 | 0 | -26.8M | 0 | 0 |
| Current Ratio | 0.64x | 0.63x | 0.43x | 0.36x | 0.34x | - | 0.73x | 0.19x | 2.57x | 0.48x | 0.03x |
| Quick Ratio | 0.64x | 0.63x | 0.43x | 0.36x | 0.34x | - | 0.73x | 0.19x | 2.57x | 0.48x | 0.03x |
| Cash Conversion Cycle | - | - | - | - | - | - | - | - | - | - | - |
| Total Non-Current Liabilities | 6.41B | 6.23B | 4.51B | 3.51B | 2.95B | 2.47B | 1.74B | 1.58B | 1.57B | 1.13B | 972.48M |
| Long-Term Debt | 0 | 6.23B | 4.51B | 3.51B | 2.95B | 2.07B | 1.65B | 1.58B | 1.55B | 1.11B | 972.48M |
| Capital Lease Obligations | 0 | - | - | - | - | - | - | - | - | - | - |
| Deferred Tax Liabilities | 0 | - | - | - | - | - | - | - | - | - | - |
| Other Non-Current Liabilities | - | - | - | - | - | - | - | - | - | - | - |
| Total Liabilities | 6.9B | 6.71B | 5.01B | 3.97B | 3.37B | 2.47B | 1.88B | 2.06B | 1.57B | 1.24B | 984.75M |
| Total Debt | 485.44M | 6.54B | 4.86B | 3.84B | 3.28B | 2.38B | 1.73B | 2.01B | 1.55B | 1.19B | 1.05B |
| Net Debt | 373.39M | 6.45B | 4.81B | 3.8B | 3.23B | 2.34B | 1.72B | 1.98B | 1.53B | 1.18B | 995.68M |
| Debt / Equity | 0.69x | 9.68x | 9.34x | 8.79x | 8.61x | 6.90x | 7.88x | 13.12x | 9.46x | 9.12x | 0.51x |
| Debt / EBITDA | 1.31x | 12.74x | 49.39x | 48.54x | 70.22x | 56.29x | 67.64x | 71.98x | 74.71x | 78.67x | 143.27x |
| Net Debt / EBITDA | 1.01x | 12.56x | 48.88x | 48.03x | 69.25x | 55.44x | 67.10x | 71.17x | 73.94x | 77.62x | 136.19x |
| Interest Coverage | 0.92x | 1.40x | 0.39x | -0.01x | 0.28x | 0.38x | 0.23x | 0.26x | 0.25x | 0.23x | 0.13x |
| Total Equity | 699.46M | 675.69M | 520.22M | 436.87M | 380.5M | 344.49M | 219.59M | 152.84M | 163.26M | 130.94M | 2.05B |
| Equity Growth % | 110.73% | 29.89% | 19.08% | 14.82% | 10.45% | 56.88% | 43.67% | -6.38% | 24.68% | -93.62% | - |
| Book Value per Share | 17.86 | 17.70 | 14.55 | 12.67 | 11.15 | 10.14 | 10.93 | 1.35 | 13.89 | 11.14 | 174.80 |
| Total Shareholders' Equity | 696.4M | 672.53M | 516.94M | 433.44M | 376.81M | 341.11M | 219.59M | 152.84M | 163.26M | 130.94M | 1.13B |
| Common Stock | 403K | 398K | 339K | 331K | 326K | 323K | 201K | 0 | 136.8M | 0 | 125.34M |
| Retained Earnings | 324.74M | 302.38M | 197.32M | 128.91M | 76.63M | 44.42M | 15.2M | 0 | 0 | 0 | 148.38M |
| Treasury Stock | 0 | -10.2M | -2.87M | -1.32M | -458K | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated OCI | -2.31M | -2.6M | -805K | -1.21M | 0 | 0 | 0 | 0 | -4.04M | 0 | 148.38M |
| Minority Interest | 3.06M | 3.15M | 3.27M | 3.43M | 3.69M | 3.38M | 0 | 0 | 0 | 0 | 920.74M |
Excessive securitization leverage
As reported in recent financial filings, Velocity Financial maintains a debt-to-equity ratio that peaked at 9.68x in 2025Q4, underscoring a heavy reliance on securitized debt to fund its loan portfolio and creating significant sensitivity to shifts in credit market liquidity and interest rate environments.
The company's capital structure is dominated by debt, which appears to be primarily utilized for warehouse financing and securitization activities. This high leverage ratio suggests that even minor fluctuations in asset values or funding costs could disproportionately impact the firm's equity base, warranting close monitoring by investors.
Based on the provided quarterly data, the current ratio has remained consistently low, fluctuating between 0.30 and 0.64 over the last ten quarters, which indicates a limited liquidity buffer relative to the firm's short-term obligations and ongoing operational requirements in the mortgage lending space.
The persistent sub-1.0 current ratio suggests that the company relies heavily on the continuous recycling of capital through the securitization market to meet its obligations. This structural reliance may leave the firm vulnerable to sudden liquidity shocks or disruptions in the broader ABS market.
According to historical balance sheet data, Velocity Financial has steadily grown its retained earnings from $128.9 million in 2023Q4 to $324.7 million by 2026Q1, providing a necessary, albeit modest, internal capital base to support the firm's aggressive expansion in the small-balance commercial mortgage sector.
While the growth in retained earnings is a positive indicator of internal value creation, it remains small relative to the company's massive debt load. Investors should consider whether this organic capital accumulation is sufficient to offset the risks inherent in the firm's highly levered business model.
As indicated by the financial statements, the company's total assets have expanded to $7.6 billion as of 2026Q1, yet this growth is almost entirely funded by debt, which may obscure the true credit risk profile of the underlying small-balance commercial loan portfolio held on the balance sheet.
The reliance on non-recourse securitization structures may provide some protection, but the headline debt figures suggest a high degree of operational sensitivity. The lack of transparency regarding the specific credit quality of these assets makes it difficult to assess the potential for future impairment charges.
Quick answers to the most common questions about buying VEL stock.
As of 2025, Velocity Financial, Inc. (VEL) had total assets of $7.38B including $301.6M in current assets.
Velocity Financial, Inc. (VEL) carries total debt of $6.54B. Comparing total debt to cash helps evaluate the company's debt burden and net leverage.
Velocity Financial, Inc. (VEL) has total shareholders' equity (book value) of $672.5M ($17.70 book value per share). Book value represents the net worth of the company belonging to common stock holders.
Velocity Financial, Inc. (VEL) reported a current ratio of 0.63x. A current ratio above 1.0x indicates that the company has more current assets than current liabilities, suggesting sufficient short-term liquidity.