Finance Of America Companies (FOA) Q4 2025 earnings summary

Executive summary

• Achieved $110 million net income from continuing operations for 2025, up 175% year-over-year, with basic EPS of $5.04.

• Adjusted net income reached $74 million, up 429% year-over-year, with adjusted EPS of $3.04, exceeding guidance.

• Funded $2.4 billion in originations for 2025, a 24% increase from 2024, reflecting strong demand for home equity solutions.

• Expanded market leadership in reverse mortgages, with increased inquiry volume, improved customer engagement, and digital acquisition momentum.

• Enhanced capital structure by paying down high-cost debt, repurchasing Blackstone's equity, and issuing convertible notes and preferred equity.

Financial highlights

• Total revenues for 2025 were $497 million, up 26% year-over-year, with fixed expenses largely unchanged.

• Adjusted EBITDA for 2025 was $143 million, up 138% year-over-year.

• Fourth quarter GAAP net loss of $21 million due to fair value movements; adjusted Q4 net income was $14 million ($0.69/share), up 180% year-over-year.

• Cash and cash equivalents at year-end were $90 million, up 91% from 2024.

• Total equity increased to $396 million from $316 million, driven by profitability and new equity investment.

Outlook and guidance

• Expecting 2026 volume growth of 15%-25%, targeting $2.8-$3.1 billion in originations.

• 2026 adjusted EPS guidance set at $4.25-$4.75.

• Management expects continued momentum in 2026, citing demographic trends, improved funnel productivity, and operating leverage.

• Anticipate cash flows from core activities to fund PHH acquisition and pay down $150 million in senior secured notes.

• Plan to be free of all corporate debt in coming years, enabling future share repurchases.