VEL Velocity Financial, Inc.

Overview and Growth

Velocity Financial, Inc. recorded fiscal 2025 net income of $105.05M. Diluted earnings per share were $2.75, translating the period’s attributable earnings into the amount reported for each diluted share. Diluted EPS increased by 44.0% from $1.91 in fiscal 2024, showing how the earnings change reached shareholders on a per-share basis. A diluted share base of 38.18M links the aggregate earnings figure to diluted EPS and helps frame the per-share comparison. Diluted shares moved 6.8% from 35.76M in fiscal 2024, leaving the current share base higher year over year. Total assets stood at $7.38B, showing the scale of resources supporting revenue, earnings, liquidity, and financing.

Profitability

Net income came to $105.05M, completing the progression from revenue through gross and operating profitability to the final reported result. Pretax income was $146.24M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The company recognized $41.26M of income tax for the period, completing the transition from pretax income to net income. The effective relationship between income tax and positive pretax income was 28.2%, without assuming a statutory-rate comparison. The relationship between net income and period-end equity was 15.5%, indicating the profitability achieved on book capital. Net income represented 1.4% of period-end assets, placing the company’s bottom-line result against the total resource base employed. Against $68.42M in fiscal 2024, the current $105.05M bottom line finished above the prior-year result in absolute terms.

Liquidity and Capital Structure

Total assets were $7.38B, supported by $6.71B of liabilities and $675.69M of shareholder equity. Cash and equivalents totaled $92.10M, identifying the most liquid reported component available within the broader current-asset balance. Equity equaled 9.2% of assets, showing the shareholder-capital layer within the company’s balance sheet. The liabilities-to-assets relationship was 90.8%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 1.2% of total assets, showing the liquid cash component within the company’s broader resource base. The asset base changed 33.5% from $5.53B in fiscal 2024, leaving current total assets higher year over year. Against $520.22M of equity in fiscal 2024, the current book-equity balance moved 29.9% and ended higher. The reported cash balance changed 84.6% from $49.90M in fiscal 2024, ending higher year over year.

Cash Flow and Earnings Quality

The company reported $18.16M of operating cash flow, a cash inflow that shows the cash generated by operations. Operating cash flow equaled 0.17x of net income, showing how strongly accounting earnings converted into cash from operations. The cash-flow statement records $281.00K of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 1.5% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $17.88M, leaving a positive amount after capital expenditures. The free-cash-flow-to-assets relationship was 0.2%, comparing post-investment cash with the balance-sheet asset base. Compared with $37.76M in fiscal 2024, current operating cash flow of $18.16M was below the prior result.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.