Finance Of America Companies (FOA) Q4 2024 earnings summary

Executive summary

• Achieved net income from continuing operations of $40 million, adjusted net income of $14 million, and adjusted EBITDA of $60 million for 2024, marking a return to profitability year-over-year.

• Funded over $1.9 billion in loans, a 19% year-over-year increase, with reverse mortgage business growth driven by proprietary product expansion and retail platform integration.

• Strategic initiatives included retail platform integration, corporate bond exchange, reverse stock split, unification under a single brand, and key leadership hires to drive transformation.

• Tangible equity increased by $80 million, reflecting improved operational performance and positive fair value adjustments.

• Expanded product offerings and modernized data infrastructure with AI-driven tools to enhance performance.

Financial highlights

• 2024 GAAP net income of $40 million, adjusted net income of $14 million, adjusted EBITDA of $60 million, and full-year total revenues of $338 million, up 44% from 2023.

• Year-over-year, GAAP net income increased by $206 million, adjusted net income by nearly $100 million, adjusted EBITDA by 178%, and adjusted EPS by 116%.

• Total expenses for 2024 decreased 10% to $351 million, supporting margin expansion and profitability.

• Q4 2024 funding volume was $534 million, with a net loss of $143 million, but adjusted net income of $5 million for the quarter.

• Tangible net worth rose from $19 million at end-2023 to $99 million at end-2024, a 421% increase.

Outlook and guidance

• 2025 origination volume expected between $2.4-$2.7 billion, a 26%-42% increase from 2024.

• Q1 2025 origination volume projected at $525-$550 million, a 25%-30% increase year-over-year.

• Full-year 2025 adjusted net income guidance reaffirmed at $2.60-$3 per share.

• Anticipate sequential growth in originations throughout 2025, with marketing and product initiatives ramping mid-year.

• Management expects to build on 2024's momentum in 2025, focusing on expanding reach and delivering greater value.