Finance Of America Companies (FOA) Q3 2025 earnings summary

Executive summary

• Achieved year-to-date GAAP net income of $131 million ($5.78 per basic share), with Q3 adjusted net income of $33 million ($1.33 per share), more than doubling year-over-year and up 136% sequentially.

• Funded volumes increased 28% year-over-year for the first 9 months, reaching $1.8 billion, with Q3 origination performance at $603 million.

• Strategic execution included digital transformation, AI adoption, and a partnership with Better.com to expand product offerings for the senior demographic.

• Announced a repurchase agreement to buy out Blackstone's equity stake, with amended terms allowing for two closings and potential price increases if delayed.

• Focused on expanding core retirement solutions, leveraging demographic and economic tailwinds, and enhancing digital capabilities to increase origination volumes and efficiency.

Financial highlights

• Q3 GAAP net loss of $29 million due to non-cash fair value adjustments, but year-to-date pre-tax income remains strong at $131 million.

• Q3 total revenues were $81 million, down 54% sequentially and 72% year-over-year, with Q3 revenues (excluding fair value changes) at $103 million.

• Adjusted net income for the first 9 months reached $60 million ($2.33 per share), up from $9 million ($0.38 per share) in 2024, and Q3 adjusted EBITDA was $55 million.

• Net origination gains rose to $59.9 million on $602.9 million in loan originations, up 17.4% year-over-year.

• Cash and cash equivalents increased to $110 million at quarter-end, up from $46 million in Q2.

Outlook and guidance

• Reaffirmed full-year 2025 adjusted EPS target of $2.60-$3.00, tracking toward the low end of $2.4-$2.7 billion volume guidance.

• 2026 guidance projects 20%-25% volume growth and adjusted EPS of $4.25-$4.75, a 60% year-over-year increase.

• Management expects continued growth in reverse mortgage originations and demand for home equity solutions, leveraging product innovation and digital enhancements.

• The company is monitoring macroeconomic conditions, including interest rate volatility, which may impact future results.