Finance Of America Companies (FOA) Q2 2025 earnings summary

Executive summary

• Q2 2025 delivered $80 million net income ($3.16 basic EPS), $14 million adjusted net income ($0.55 adjusted EPS), and $602 million funded volume, up 35% year-over-year, marking five consecutive quarters of growth.

• Achieved major milestones including the first $1 billion+ HomeSafe securitization and agreement to repurchase Blackstone's entire equity stake, enhancing financial flexibility.

• Expanded digital capabilities, launched new borrower experiences, and unified branding to drive origination growth and operational efficiency.

• Portfolio Management segment facilitated successful securitizations, including first-time issuance of securities backed by second lien reverse mortgages.

• Year-to-date adjusted net income totaled $27 million, reversing a $7 million loss in the first half of 2024.

Financial highlights

• Q2 2025 total revenues were $177.4 million, up 124% year-over-year and 7% sequentially; revenue excluding fair value changes was $84.8 million, up 22% year-over-year.

• Adjusted EBITDA for Q2 was $30 million, up 200% from Q2 2024.

• Tangible equity increased to $275 million as of June 30, 2025, from $99.3 million at year-end 2024; total equity rose to $473 million.

• Net income from continuing operations was $80 million, compared to a $5 million loss in Q2 2024.

• Basic EPS from continuing operations was $3.16, up from $(0.20) in Q2 2024; diluted EPS was $2.13.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: $2.4–$2.7 billion in originations and $2.60–$3.00 in adjusted EPS.

• Management expects continued growth in reverse mortgage originations, supported by digital innovation and expanded product offerings.

• Q3 funded volume expected between $600 million and $630 million.

• Anticipates benefits from the upcoming HMBS 2.0 program, which will expand securitization eligibility for HECM loans.

• Ongoing cost-cutting and efficiency initiatives are expected to further improve margins and profitability.