Finance Of America Companies (FOA) Q1 2025 earnings summary

Executive summary

• Achieved $561 million in funded volume in Q1 2025, up 32% year-over-year and 5% sequentially, surpassing guidance and marking the fourth consecutive quarter of growth.

• Reported Q1 2025 net income from continuing operations of $80 million ($3.17 basic EPS), a significant turnaround from prior periods.

• Launched a new brand campaign in April 2025, shifting messaging to real-life use cases and digital experiences to broaden market appeal and drive higher conversion rates.

• Operational improvements included doubling the percentage of retail loans funded within 30 days and a 40% increase in initial 30-day sales conversion rates quarter-over-quarter.

• Strategic initiatives focus on expanding non-agency reverse mortgage products, digital innovation, and streamlining operations under a unified brand.

Financial highlights

• Q1 2025 total revenue was $166 million, a 121% increase year-over-year, driven by higher origination gains and fair value changes.

• Adjusted net income was $13 million ($0.52 per share), a $20 million improvement year-over-year and $8 million higher than Q4 2024.

• Adjusted EBITDA reached $29 million, up $11 million sequentially and $29 million year-over-year.

• Cash and cash equivalents plus restricted cash totaled $251.9 million at quarter-end.

• General and administrative expenses declined by $4.3 million (25% year-over-year), with a 35% reduction in communication and data processing costs.

Outlook and guidance

• Reaffirmed full-year 2025 guidance: $2.4–$2.7 billion in funded volume and $2.60–$3.00 in adjusted EPS.

• Q2 2025 funded volume expected in the range of $575–$600 million.

• Management expects continued growth in reverse mortgage origination volumes, supported by demographic trends and expanded product offerings.

• Company is investing in digital channels and marketing to increase brand recognition and operational efficiency.

• Plans to profitably securitize and monetize the reverse mortgage portfolio, leveraging a unified lending platform.