Velocity Financial
VEL on NYSE. Velocity Financial lends money to investors who buy houses to rent. Market value $578m.
Price checks use the past 12 months to June 2026. Some use the latest annual report instead, as marked. Quality checks use five annual reports, the latest for the year to December 2025.
We can't read total debt from the filing, so debt is left out.
Should I look at this?
Worth a closer look
Why it could be worth it
What to watch out for
Nothing stood out in the numbers we check.
This is not advice. Check the numbers below.
Yearly profit per dollar of owners' money: 13 cents. Above 10 is good.
What you pay for each dollar of net assets: $0.80.
Profit per $100 you pay: $18.64.
Quality score: 95 of 100. Price score: 100 of 100. Our list needs 70 on quality and 60 on price.
$14.63 a share, 3% above its 1-year low
Over the past year the price has ranged from $14.18 to $21.40.
Pays no dividend
Prices from Monday’s close (5 October).
Five years of cash, in billions
| Revenue | |||||
| Revenue | n/a | n/a | n/a | n/a | n/a |
| Operating margin | |||||
| Operating margin | n/a | n/a | n/a | n/a | n/a |
| Debt to equity | |||||
| Debt to equity | n/a | n/a | n/a | n/a | n/a |
| Shares outstanding | |||||
| Shares outstanding | 0.03bn | 0.03bn | 0.03bn | 0.04bn | 0.04bn |
Health checks
- Free cash flow positiveDoesn't apply to banks and insurers
- Accounting checksDoesn't apply to banks and insurers
- DebtDoesn't apply to banks and insurers
- Revenue growth, five yearsUnknown
- Buying back its own sharesNo, 22% more shares since 2021
The quarter to June 2026
How the business did, compared with the same quarter a year earlier.
- Profit: $25 million, down 3% on a year ago.
- Spare cash over the past 12 months: $23 million, down from $27 million.
- 4% more shares than a year ago. Each share owns a bit less of the company.
| Quarter to | Amount |
|---|---|
| September 2024 | $16m |
| December 2024 | $21m |
| March 2025 | $19m |
| June 2025 | $26m |
| September 2025 | $25m |
| December 2025 | $35m |
| March 2026 | $22m |
| June 2026 | $25m |
From the company's quarterly reports to the SEC.
Dates
- Next results (estimated)
- n/a
- Last annual report (10-K)
- 12 March 2026
- Next quarterly (estimated, 10-Q)
- 5 November 2026
Who owns it
None of the long-term investors we follow own it. 100 funds in all.
Largest holders overall
- Snow Phipps Group$246m
- Allianz Asset Management GmbH$233m
- Beach Point Capital Management LP$122m
- BlackRock$28mCut
- Dimensional Fund Advisors LP$12mAdded
- Adage Capital Partners GP, L.L.C.$9mAdded
- Vanguard Capital Management$9m
- American Century Companies$7mAdded
- Geode Capital Management$5mAdded
- State Street$5mAdded
From 13F filings for the quarter ended 30 June 2026.
Big holders and activists
3 investors own more than 5%.
- SPG GP, LLCInsider or founderat least 34.7%−1.9 pts(filed with 6 related holders)Since 8 August 2025
- Pacific Investment Management Company LLCPassive investor33.1%0.0 ptsSince 1 May 2025
What they said
Item 4 of the Schedule 13D is supplemented by adding the following: WARRANT EXERCISE As previously disclosed, on April 5, 2020, the Reporting Person acquired the Warrants, which were exercisable at an exercise price of $2.96 per share of Common Stock, with respect to two-thirds…
Read the filing - Beach Point Capital Management LPPassive investorat least 17.9%+3.4 pts(filed with 1 related holder)Since 31 December 2025
| Holder | Stake | Since | |
|---|---|---|---|
SPG GP, LLC Insider or founder | at least 34.7%−1.9 pts (filed with 6 related holders) | 8 August 2025 | |
Pacific Investment Management Company LLC Passive investor | 33.1%0.0 pts | 1 May 2025 | What they saidItem 4 of the Schedule 13D is supplemented by adding the following: WARRANT EXERCISE As previously disclosed, on April 5, 2020, the Reporting Person acquired the Warrants, which were exercisable at an exercise price of $2.96 per share of Common Stock, with respect to two-thirds… Read the filing |
Beach Point Capital Management LP Passive investor | at least 17.9%+3.4 pts (filed with 1 related holder) | 31 December 2025 |
From Schedule 13D and 13G filings: anyone owning more than 5% must file one.
What insiders did
No insider bought shares on the open market in the last 12 months. 4 sold $1m, $1m of it under preset trading plans.
- Szczepaniak Mark RChief Financial OfficerSoldunder a preset trading plan
- Date
- 10 September 2026
- Shares
- 2,000
- Price
- $18.03
- Value
- $36,060
- Kelly Roland ThomasChief Legal Officer and GCSoldunder a preset trading plan
- Date
- 1 September 2026
- Shares
- 1,600
- Price
- $18.00
- Value
- $28,800
- Taylor Jeffrey T.Executive VP, Capital MarketsSoldunder a preset trading plan
- Date
- 11 August 2026
- Shares
- 4,330
- Price
- $19.06
- Value
- $82,530
- Tam FionaChief Accounting OfficerSoldunder a preset trading plan
- Date
- 11 August 2026
- Shares
- 1,232
- Price
- $19.00
- Value
- $23,408
- Szczepaniak Mark RChief Financial OfficerSoldunder a preset trading plan
- Date
- 10 August 2026
- Shares
- 2,000
- Price
- $18.16
- Value
- $36,320
- Kelly Roland ThomasChief Legal Officer and GCSoldunder a preset trading plan
- Date
- 6 August 2026
- Shares
- 1,600
- Price
- $18.00
- Value
- $28,800
- Szczepaniak Mark RChief Financial OfficerSoldunder a preset trading plan
- Date
- 6 August 2026
- Shares
- 400
- Price
- $18.00
- Value
- $7,200
- Szczepaniak Mark RChief Financial OfficerSoldunder a preset trading plan
- Date
- 28 July 2026
- Shares
- 400
- Price
- $18.00
- Value
- $7,200
- Tam FionaChief Accounting OfficerSoldunder a preset trading plan
- Date
- 7 July 2026
- Shares
- 68
- Price
- $19.00
- Value
- $1,292
- Taylor Jeffrey T.Executive VP, Capital MarketsSoldunder a preset trading plan
- Date
- 7 July 2026
- Shares
- 2,165
- Price
- $19.00
- Value
- $41,135
| Date | Who | Did | Shares | Price | Value |
|---|---|---|---|---|---|
| 10 September 2026 | Szczepaniak Mark R Chief Financial Officer | Sold under a preset trading plan | 2,000 | $18.03 | $36,060 |
| 1 September 2026 | Kelly Roland Thomas Chief Legal Officer and GC | Sold under a preset trading plan | 1,600 | $18.00 | $28,800 |
| 11 August 2026 | Taylor Jeffrey T. Executive VP, Capital Markets | Sold under a preset trading plan | 4,330 | $19.06 | $82,530 |
| 11 August 2026 | Tam Fiona Chief Accounting Officer | Sold under a preset trading plan | 1,232 | $19.00 | $23,408 |
| 10 August 2026 | Szczepaniak Mark R Chief Financial Officer | Sold under a preset trading plan | 2,000 | $18.16 | $36,320 |
| 6 August 2026 | Kelly Roland Thomas Chief Legal Officer and GC | Sold under a preset trading plan | 1,600 | $18.00 | $28,800 |
| 6 August 2026 | Szczepaniak Mark R Chief Financial Officer | Sold under a preset trading plan | 400 | $18.00 | $7,200 |
| 28 July 2026 | Szczepaniak Mark R Chief Financial Officer | Sold under a preset trading plan | 400 | $18.00 | $7,200 |
| 7 July 2026 | Tam Fiona Chief Accounting Officer | Sold under a preset trading plan | 68 | $19.00 | $1,292 |
| 7 July 2026 | Taylor Jeffrey T. Executive VP, Capital Markets | Sold under a preset trading plan | 2,165 | $19.00 | $41,135 |
From Form 4 filings: insiders must report trades in their own company's shares within two days.
Warning signs in its filings
Problems the company itself reported to the SEC, in its own words.
None of the warning signs we check for were found.
We look for five warning signs: doubt it can keep going, weak checks on its own accounts, a notice that its past accounts can't be relied on, a change of auditor, and one customer bringing in a big share of sales. We don't check lawsuits, investigations or debt yet.
We checked the auditor's report, internal controls, restatement notices, auditor changes and big customers in the 10-K filed 12 Mar 2026, plus the 10-Q filed 6 Aug 2026 and 7 later 8-Ks.
A 10-K is the yearly report every US company files with the SEC. An 8-K is a short notice of a big event.
What could go wrong
Cheap for a reason is the question the numbers cannot answer.
Whether the price already reflects the risks is what the deep dive is for.
The deep dive
Everything above is arithmetic on public filings. The deep dive reads the last ten years of annual reports, the proxy statements, and the earnings calls, then argues the case the way Buffett, Klarman, and Hohn would, and checks every claim against the source.
- What the business is worth, as a range, and the margin of safety at today’s price
- Prices to start buying, buy, and buy hard
- The three things that would make this a mistake
- Every number footnoted to the filing it came from
Your first deep dive is free.
Not advice. Numbers on this page come from SEC filings and are updated each night; prices are updated again after the US market closes. The five-year figures are rounded.