Guild Holdings Company reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in net revenue, which totaled $159.3 million, down 38.3% from $257.3 million in the same quarter of 2023. Year-to-date (YTD) revenue for the first nine months of 2024 reached $676.7 million, reflecting a 13.2% increase compared to $598.0 million in 2023. This increase was primarily driven by a substantial rise in loan origination fees and gains on the sale of loans, which amounted to $560.5 million YTD, up 44.6% from $387.7 million in the prior year.
Despite the revenue growth, the company reported a net loss of $66.9 million for Q3 2024, a stark contrast to the net income of $54.2 million recorded in Q3 2023. For the nine months ended September 30, 2024, Guild reported a net loss of $960,000, compared to a net income of $54.0 million for the same period in 2023. The loss per share for Q3 2024 was $(1.09), compared to earnings of $0.89 per share in Q3 2023.
Total expenses for Q3 2024 increased to $252.1 million, up from $183.7 million in Q3 2023, driven by higher operational costs, including salaries and incentive compensation, which rose due to increased headcount and origination volumes. The company’s total liabilities also surged to $3.5 billion as of September 30, 2024, compared to $2.5 billion at the end of 2023, largely due to increased borrowings on warehouse lines of credit.
Guild's mortgage loans held for sale at fair value increased significantly to $1.8 billion as of September 30, 2024, compared to $901.2 million at the end of 2023. The company also reported a rise in reverse mortgage loans held for investment, which reached $409.1 million, up from $315.9 million at the end of 2023.
Strategically, Guild has been active in acquisitions, including an asset purchase agreement with Academy Mortgage Corporation for $27 million, aimed at enhancing market share and expanding its branch network. The company also repurchased 55,714 shares of Class A common stock for $0.8 million during the nine months ended September 30, 2024, as part of its ongoing share repurchase program.
Overall, while Guild Holdings Company has seen growth in certain revenue streams, it faces challenges with profitability and rising expenses, impacting its financial performance in the current fiscal period.
About Guild Holdings Co
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