Loandepot warned by NYSE for low stock price

The New York Stock Exchange sent a deficiency letter to loanDepot on Friday, the company announced, stating it was in violation of minimum stock price rules.

As of Aug. 20, loanDepot has not been in compliance with the requirement that its average closing price over a consecutive 30-day period needed to be over $1 per share, the letter said.

Loandepot first closed under this mark on July 23, at 96.8 cents per share.

But between July 24 and Aug. 5, the close was over $1 per share, except on July 28 (99.8 cents) and July 31 (98.1 cents).

The day cited by the notice, Aug. 20, loanDepot closed at 87 cents per share, while the following day, it rose to 89.3 cents.

Loandepot issued the press release after the end of Friday's trading. Monday morning, the opening price was 87.48 cents per share.

Under NYSE rules, loanDepot has six months to bring its share price and average share price back above $1, the company pointed out.

It will respond to the NYSE within 10 business days of its intent to cure the deficiency.

In the press release, loanDepot added the company will consider available alternatives to fix the price issue including a reverse stock split. This would have to be approved by stockholders, no later than at the company's next annual meeting, which is anticipated for early June 2027.

In the press release announcing the notice, CEO Anthony Hsieh said the company was making significant progress towards profitable market share growth.

The company lost less money for the second quarter than in the comparable periods, at $6.6 million. In the first quarter, the loss was $54.9 million, while for the second quarter of 2025, it posted a $25.3 million loss.

"In the last quarter, unit volume grew by 25%, revenue grew by 18%, and purchase market share grew by 33%," Hsieh said in the latest press release. "We executed a successful and strategic expansion into home equity lending, at scale, and re-entered the wholesale market."

Hsieh touted the company's speed to originate and its cost structure, plus its "differentiated" customer acquisition and retention strategies.

"By prudently and actively managing our capital and debt obligations, we believe we can create sustainable stockholder value," he continued. "As we do that, we expect our stock price to reflect our success."

After being forced out as executive chair in February 2023 over a proxy fight regarding the company's board, Hsieh returned to the company he founded in March 2025 and stepped back in as CEO in June.

The company has a model for being able to cure its stock price deficiency in Finance of America.

FOA received two notices, in December 2023 and then the following February, for noncompliance with the $1 per share average price rule.

In July 2024, the NYSE delisted FOA's stock warrants although the common stock remained traded on the Big Board. Around the same time, the company did receive approval from its stockholders for a reverse stock split. The split was executed on July 26. 2024.

FOA remains listed on the NYSE, and closed at $20.05 per share on Aug. 21.