A U.S.-based mortgage originator that generates fee income but currently faces substantial net losses due to high interest expenses and a significant retained earnings deficit.
If interest rates normalize or the company successfully refinances its debt structure, the current negative equity position could present an extreme undervaluation opportunity for distressed asset investors seeking deep value turnaround plays in the mortgage sector.
The combination of a -$39.4M net loss, negative shareholders' equity of -$11.6M, and a retained earnings deficit of -$1.29B creates an extremely high risk of insolvency or bankruptcy without immediate capital injection or drastic deleveraging.
IMPAC Mortgage Holdings Inc. specializes in originating residential mortgage loans across the United States, leveraging its network to serve borrowers seeking financing for home purchases and refinancing. The company operates primarily within the highly regulated financial services sector, focusing on generating fee-based revenue from loan origination activities while managing significant debt obligations to fund its lending operations.
The company reported a net loss of $39.4M with operating profits at -$47.5M, heavily offset by massive financing cash outflows of $365.2M which reduced total cash and equivalents to $25.9M. Despite generating $8.6M in revenue and operating expenses of $56.1M, the firm's shareholders' equity remains negative at -$11.6M, indicating a critical liquidity and solvency challenge exacerbated by high interest expense of $19.1M.
The mortgage lending industry is currently navigating a challenging environment characterized by volatile interest rates and stricter regulatory oversight, which pressures originators to balance loan pricing against funding costs while maintaining sufficient liquidity reserves.
| Metric | 2022 |
|---|---|
| Revenue | $8.6M |
| Cost of Revenue | $0 |
| Gross Profit | $8.6M |
| Operating Expenses | $56.1M |
| Operating Income | $-47.5M |
| G&A | $15.7M |
| Stock-Based Comp | $678.0K |
| Depreciation | $317.0K |
| Other OpEx | $40.4M |
| Non-Operating Income | $8.1M |
| Interest Expense | $19.1M |
| Pre-Tax Income | $-39.4M |
| Income Tax | $38.0K |
| Continuing Ops | $-39.4M |
| Discontinued Ops | $0 |
| Net Income | $-39.4M |
| Minority Interest | $0 |
| Net to Common | $-39.4M |
| Metric | 2022 |
|---|---|
| Cash & Equivalents | $25.9M |
| PP&E (Net) | $220.0K |
| Operating Leases | $1.2M |
| Total Assets | $60.3M |
| Total Liabilities | $71.9M |
| Shareholders' Equity | $-11.6M |
| Paid-In Capital | $1.24B |
| Retained Earnings | $-1.29B |
| AOCI | $39.3M |
| Total L&E | $60.3M |
| Metric | 2022 |
|---|---|
| Net Income (CFO) | $-39.4M |
| Non-Cash Adjustments | $310.6M |
| Working Capital Changes | $-21.6M |
| Cash from Operations | $249.6M |
| Cash from Investing | $110.4M |
| Cash from Financing | $-365.2M |
| FX Effect | $0 |
| Net Change in Cash | $-5.2M |
| Beginning Cash | $35.2M |
| Ending Cash | $30.0M |
Residential Mortgage Origination, Commercial Real Estate Lending, Asset Management Services
Sustained elevated interest rates increasing the cost of funds relative to loan yields, significant leverage indicated by total liabilities exceeding assets leading to potential insolvency, and high non-cash adjustments suggesting aggressive accounting or asset impairment provisions impacting true cash generation.
Extensive proprietary underwriting technology stack allowing for rapid loan processing, a diversified geographic footprint enabling access to varied local real estate markets, and deep industry expertise in navigating complex regulatory compliance frameworks.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.