That trend was partly offset by a preferred share accounting loss
Dominion Lending Centres Inc. (DLCG) ended 2024 with double-digit growth in mortgage volume and revenue, despite recording a significant non-cash net loss linked to a preferred share transaction.
In its annual earnings report, the mortgage brokerage group posted $67.4 billion in funded mortgage volume for 2024, up 19% from the previous year. Revenue climbed 23% to $76.8 million, while adjusted EBITDA rose 47% to $36 million. Fourth quarter volume alone hit $19.6 billion—up 38% from the same period in 2023.
The company credited its gains to higher adoption of its Velocity platform and a growing network of brokers, alongside franchise expansion. DLCG noted that the tech upgrade helped increase revenue at its Newton subsidiary and boost mortgage brokering activity across its corporate franchises.
DLCG's momentum continued with a recent partnership with AI-based platform Pinch Financial. Through the agreement, DLCG’s broker network will now be accessible to users through REALTOR.ca via the Pinch mortgage qualification platform.
“We are pleased to report annual funded volume growth of 19% over the prior year which helped drive a 23% increase in revenues and a 47% increase in adjusted EBITDA,” said DLCG executive chairman and CEO Gary Mauris. “We are proud of our strong network of franchisees and mortgage professionals and would like to thank them for their continued hard work in 2024.”
The latest results follow a strong third quarter, when funded mortgage volumes hit $19.7 billion, an 11% increase over Q3 2023, and revenue reached $22.1 million, up 13% year over year. Net income for Q3 held steady at $5.3 million, as non-cash finance expenses tied to preferred shares offset the gains.
Read more: DLC posts double-digit revenue and volume growth in Q3
However, DLC also reported a net loss of $126.8 million for the year, largely due to a non-cash expense related to the acquisition of its preferred shares.
In December, the company completed its buyout of all series I, class “B” preferred shares. Because those shares were previously recorded at amortized cost, the difference between the fair value of the buyout and their book value was booked as a finance expense, resulting in a $138.8 million Q4 net loss.
“Income from operations increased from higher revenues,” the company noted, but was partially offset by rising costs tied to tech support, licensing, and advertising. DLC also reported increased recruiting expenses, share-based payments, and general administrative costs.
In the fourth quarter, revenue rose 41% year-over-year to $22.3 million, and adjusted EBITDA came in at $10.2 million. The company declared a quarterly dividend of $0.03 per share in Q4, for a total payout of $1.4 million.
“Looking ahead, we believe we are well-positioned to take advantage of favourable market conditions should interest rates further decline and as a significant number of mortgage renewals are on the horizon,” Mauris said in a press release.
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