NYSE:FOA Finance of America Companies Q1 2025 Earnings Report $21.07 +1.62 (+8.33%) As of 02:39 PM Eastern This is a fair market value price provided by Polygon.io. Learn more. Earnings HistoryForecast Finance of America Companies EPS ResultsActual EPS$0.52Consensus EPS $0.37Beat/MissBeat by +$0.15One Year Ago EPSN/AFinance of America Companies Revenue ResultsActual Revenue$165.70 millionExpected Revenue$79.56 millionBeat/MissBeat by +$86.13 millionYoY Revenue GrowthN/AFinance of America Companies Announcement DetailsQuarterQ1 2025Date5/6/2025TimeAfter Market ClosesConference Call DateTuesday, May 6, 2025Conference Call Time5:00PM ETConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Finance of America Companies Q1 2025 Earnings Call TranscriptProvided by QuartrMay 6, 2025 ShareLink copied to clipboard.There are 6 speakers on the call. Operator00:00:00Thank you for standing by. My name is Celine, and I will be your conference operator today. At this time, I would like to welcome everyone to the Finance of America First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question and answer session. Operator00:00:35Thank you. I would now like to turn the call over to Michael Font, Senior Vice President of Finance. Please go ahead. Speaker 100:00:45Thank you, and good afternoon, everyone, and welcome to Finance of America's First Quarter twenty twenty five Earnings Call. With me today are Graham Fleming, Chief Executive Officer Kristen Sievert, President and Matt Engel, Chief Financial Officer. As a reminder, this call is being recorded, and you can find the earnings release and additional materials on our Investor Relations website at ir.financeofamericacompanies.com. In addition, we will refer to certain non GAAP financial measures on this call. You can find reconciliations of non GAAP to GAAP financial measures to the extent available without unreasonable efforts discussed on today's call in our earnings press release on the Investor Relations page of our website. Speaker 100:01:29Also, I would like to remind everyone that comments on this conference call may be forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations and are subject to the Safe Harbor statement for forward looking statements that you will find in today's earnings release. Actual results for future periods may differ materially from those expressed or implied by these forward looking statements due to a number of risks or other factors, including those that are described in the Risk Factors section of Finance of America's Annual Report on Form 10 ks for the year ended 12/31/2024, filed with the SEC on 03/14/2025. As such, risk factors may be amended and updated in our subsequent filings with the SEC. We are not undertaking any commitment to update these statements if conditions change. Speaker 100:02:27Please note, today, we will be discussing interim period financials for our continuing operations, which are unaudited. Now I would like to turn the call over to the Finance of America's Chief Executive Officer, Graham Fleming. Graham? Speaker 200:02:41Thank you, Michael. Good afternoon, everyone, and thank you for joining us today. The first quarter marked another important step forward in our strategy to raise awareness about the importance of home equity for homeowners 55 and up and position reverse mortgages as a preferred tool to unlock housing wealth. We continue to lead with innovation, scale and customer trust. As a result, we delivered $561,000,000 in funded volume during the first quarter, exceeding our guidance range of $525,000,000 to $550,000,000 That marks our fourth consecutive quarter of volume growth and a 32% improvement over the first quarter of twenty twenty four. Speaker 200:03:21During the quarter, we benefited from a modestly lower rate environment with a ten year treasury falling roughly 35 basis points, which was partially offset by widening spreads. On the whole, this resulted in a broadly positive fair value environment, creating a tailwind for our performance. From a financial performance perspective, we generated $80,000,000 in GAAP net income or $3.17 basic earnings per share. On an adjusted basis, the company earned $13,000,000 in adjusted net income or $0.52 per share, an improvement of $20,000,000 from the first quarter of twenty twenty four. We remain on track to meet our full year guidance of 2,400,000,000.0 to $2,700,000,000 in funded volume and $2.6 to $3 in adjusted earnings per share. Speaker 200:04:11Beyond the numbers, Q1 marked a strategic turning point in how we engage with borrowers and reshape industry perception. With the recent launch of our new A Better Way with FOA campaign, we are redefining how reverse mortgages are understood, moving the product from the margins into the mainstream as a flexible, forward looking financial planning tool for homeowners 55 and up. Finance of America is setting the standard for how our industry communicates the role of reverse mortgages, and Kristen will speak more about the new campaign. We believe this strategic repositioning strengthens our brands and supports long term growth. Speaker 300:04:49Finally, we continue to see the advantages of our product suite flexibility. By offering a broader range of solutions and the ability to introduce new products to address emerging needs, we Speaker 200:05:00are able to better serve our customers. This approach allows our customers to access the most suitable products to support their individual needs and circumstances. And with that, I'll turn it over to Kristen. Speaker 400:05:12Thanks, Graham, and good afternoon, everyone. The first quarter marked a pivotal moment in our operational and brand strategy. As part of our commitment to elevating customer engagement, we recently launched our new messaging campaign, a better way with FOA. This campaign marks a shift away from traditional celebrity endorsements towards storytelling that reflects real life goals and aspirations of today's homeowners. Our goal was to create ads that highlight relatable use cases that dismantle stereotypes and show reverse mortgages as a smart tool for responsible financial planning, whether it's funding a renovation, covering unexpected expenses, or simply enabling peace of mind. Speaker 400:05:54We're embedding this message across every customer and marketing touch point, and we expect the full transition will be complete by the June. To give you a closer look at the campaign in action, we posted a few examples of our creative materials on our investor relations website. We believe this new platform will enable us to attract and convert a new broader audience, one that is experienced and comfortable with leveraging home equity to responsibly achieve their financial goals and that has a higher intent to transact. A modest 5% improvement in our lead to opportunity metric would support the growth in retail production that we've modeled for the year with additional upside as we continue to focus on optimizing the customer journey. While the campaign has only been in market at a small scale for less than one month, we're already seeing this play out in our early direct mail results, which has shown a 16% improvement in our upper funnel inquiry to lead conversion. Speaker 400:06:50As we gain insights into the new types of customers engaging with our brand, we will utilize this data to inform our growth strategy and drive product innovation. Given the various economic uncertainties impacting our customers, including stock market volatility, risk of recession and further inflation, we're confident that our current solutions can assist many Americans in achieving the stability they seek. Furthermore, we're well positioned to introduce new solutions to address additional needs. In addition to launching the new brand platform, we've continued to focus on the fundamentals across the business and have seen notable improvements across key operational metrics in Q1. Quarter over quarter, we doubled the percentage of retail loans funded within the first thirty days from submission. Speaker 400:07:36We increased the initial thirty day sales conversion rates by 40%, and we reduced our cost per opportunity by 12% over the same period. Our continued focus on operational excellence is strengthening the business and laying the groundwork for future growth investments. Before I hand it over to Matt, I'd like to congratulate John Scarpatti on his recent promotion to Chief Production Officer of our operating subsidiary, Finance of America Reverse. John has been the head of our industry leading wholesale division for over a decade. In this new role, John will oversee our sales and production strategy, heading both the wholesale and retail channels. Speaker 400:08:14We believe this leadership will be key to helping us unlock the massive growth potential we know is available within our category. With momentum on the brand and operations front, I'll turn it over to Matt to discuss our financial performance. Matt? Speaker 500:08:29Thank you, Kristen, and good afternoon, everyone. The first quarter of twenty twenty five was strong across several key metrics. We delivered $561,000,000 in funded volume, up 5% from the fourth quarter of 'twenty four and thirty two percent from the first quarter of twenty twenty four. As Graham mentioned, this was the fourth consecutive quarter of volume growth for the company. We also saw a meaningful improvement in our GAAP results. Speaker 500:08:53For the first quarter, the company recorded GAAP net income of $80,000,000 or $3.17 per basic share compared to a GAAP net loss of $16,000,000 or $0.58 per basic share in the first quarter of twenty twenty four. These results were aided by positive fair value adjustments during the quarter. While spreads widened slightly, overall valuations remained positive given declining base rates and stable home price appreciation assumptions. Adjusted net income for the first quarter came in at $13,000,000 or $0.52 per share. This result was in line with our stated expectations performing similar to the third quarter of twenty twenty four. Speaker 500:09:31Compared to the first quarter of twenty twenty four, when we reported an adjusted net loss of $7,000,000 the company saw a $20,000,000 improvement year over year. This turnaround reflects three key elements of strong operational performance: higher volumes, a fully integrated business and disciplined expense management. Quarter over quarter, adjusted net income improved by $8,000,000 increasing from $5,000,000 in the fourth quarter of twenty twenty four. This performance reflects our ability to grow volume efficiently while maintaining margin discipline, even in a dynamic rate environment. Adjusted EBITDA totaled $29,000,000 This represents an $11,000,000 improvement from $18,000,000 in the fourth quarter of twenty twenty four and a $29,000,000 increase from breakeven in the first quarter of twenty twenty four. Speaker 500:10:18Building on that, product level margins improved quarter over quarter as expected. However, total Retirement Solutions revenue margin was flat sequentially, driven by a shift in channel mix. Our wholesale channel exceeded volume expectations, helping us beat our overall guidance. However, since wholesale carries lower margins, channel mix offset the product level improvement, and our overall revenue margin was flat. Turning to our cost structure. Speaker 500:10:43We saw further improvements both sequentially and year over year as a result of our disciplined approach to vendor spend. Compared to the first quarter of twenty twenty four, general and administrative expenses declined by $4,300,000 representing a 25% year over year reduction. A key contributor to this was a 35% decrease in communication and data processing expenses, which reflects our ongoing efforts to right size our vendor relationships and optimize our technology infrastructure. These savings highlight the efficiency gains we continue to unlock through proactive cost management. Speaking of efficiency across the platform, operational productivity continues to trend favorably. Speaker 500:11:23We originated higher volumes with a more streamlined team, leading to an increase in loans per employee of 33% across our origination platform compared to the first quarter of twenty twenty four. We expect to continue to see this trend upward due to the scalability of our model and the benefit of our ongoing digital transformation. Our liquidity remains adequate, and we remain healthy maintain healthy financing capacity to support our continued growth projections. We are reaffirming our full year guidance for both volume and earnings. 2,400,000,000.0 to $2,700,000,000 in origination volume and $2.6 to $3 in adjusted EPS. Speaker 500:12:02In addition, for the second quarter, we expect to see funded volume in the range of $575,000,000 to $600,000,000 With that, let me hand it back to Graham for closing remarks. Thank you, Matt. We are happy with Speaker 200:12:15our progress in Q1 and confident in our ability to continue to execute going forward. Our message is resonating, our platform is delivering, and our strategy is taking hold. Older homeowners are increasingly aware of the value sitting around them for home equity. When investment portfolios are under pressure, the relative stability of housing creates compelling case for tapping into home equity. As the largest originator of reverse mortgages in the country, we believe we are well positioned to meet the moment. Speaker 200:12:45There is a better way with FOA. And with that, we'll open the call for questions. Operator00:12:52Thank you. We will now begin the question and answer session. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Your first question comes from the line of Doug Harter with UBS. Operator00:13:27This Speaker 300:13:31is actually Will Masta on for Doug today. And I know you gave guidance for 2Q volumes, but I was just hoping you could talk for a minute about how the rate volatility, particularly in April, impacted volumes and kind of what you've been seeing in the market so far this quarter? Speaker 200:13:48You know, I'll I'll take the second part of that question. April, April was actually our best submission and funded volume, month in the last two years, so very strong, volume in April. I don't know, Matt, if you want to take the rate environment and volatility, but Speaker 500:14:03I mean, I think certainly rates continue to bounce around a little bit. So we're kind of taking it day by day, but we haven't seen a significant movement yet either way in terms of the rate impacting our volume at this point. Speaker 300:14:18Okay. All right. That makes sense. And then just one more. Could you just talk about what your outlook for expenses are? Speaker 300:14:25Obviously, they've come down a decent amount over the last year plus. Just curious how you're thinking about your expense base going forward. Speaker 500:14:33So I'll kind of reiterate what we said in prior quarters that, you know, our our fixed cost base is relatively fixed. Right? As production increases, we expect there'll be some variable expenses increase along with that, but the fixed base is relatively fixed. That said, on the fixed side, we continue to see we were a much bigger business a couple of years ago. We continue to see opportunities, what we call sharpen the pencil, as contracts renew and we can renew for a lower fee count, lower number of licenses, we see some downward pressure on some of those expenses. Speaker 500:15:04But relatively speaking, our fixed corporate infrastructure is going be fixed and we only have the variable expenses on increased production. We do feel like our platform can handle significantly more production without putting a lot of pressure on that fixed cost base. Speaker 300:15:19Got it. Okay. Thank you. Operator00:15:23That concludes our question and answer session. I will now turn the conference back over to Graham Levine for closing remarks. Speaker 200:15:32Want to thank everybody for joining our Q1 call, and we look forward to updating you on our progress in q two in in August. So thank you very much, everybody. Ladies Operator00:15:43and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallFinance of America Companies Q1 202500:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K) Finance of America Companies Earnings HeadlinesFinance of America stock jumps after Q1 earnings, revenue beat; delivers Q2 guidanceMay 7 at 1:48 PM | msn.comFinance of America Companies Inc (FOA) Q1 2025 Earnings Report Preview: What to Look ForMay 7 at 8:48 AM | finance.yahoo.comURGENT: This Altcoin Opportunity Won’t Wait – Act NowMy friends Joel and Adam have a simple motto: "For us, it's always a bull market." That’s because their 92% win rate trading system is built to profit in any market – whether Bitcoin is mooning, correcting, or chopping sideways. No more guessing. No more stress. Just precision trades that put you in control.May 7, 2025 | Crypto Swap Profits (Ad)Finance Of America Companies Inc. (NYSE:FOA) Q1 2025 Earnings Call TranscriptMay 7 at 8:48 AM | msn.comFinance of america reaffirms 2025 guidance with $2.4B-$2.7B origination targetMay 6 at 10:47 PM | msn.comFinance of America Companies, Inc. (FOA) Q1 2025 Earnings Call TranscriptMay 6 at 7:05 PM | seekingalpha.comSee More Finance of America Companies Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Finance of America Companies? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Finance of America Companies and other key companies, straight to your email. Email Address About Finance of America CompaniesFinance of America Companies (NYSE:FOA) a financial service holding company, through its subsidiaries, engages in the operation of a retirement solutions platform in the United States. It operates through two segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment engages in the loan origination activities comprising home equity conversion, proprietary reverse, and hybrid mortgage loans for senior homeowners. The Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services for borrowers and investors. The company was founded in 2013 and is headquartered in Plano, Texas.View Finance of America Companies ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Archer Stock Eyes Q1 Earnings After UAE UpdatesFord Motor Stock Rises After Earnings, But Momentum May Not Last Broadcom Stock Gets a Lift on Hyperscaler Earnings & CapEx BoostPalantir Stock Drops Despite Stellar Earnings: What's Next?Is Eli Lilly a Buy After Weak Earnings and CVS-Novo Partnership?Is Reddit Stock a Buy, Sell, or Hold After Earnings Release?Warning or Opportunity After Super Micro Computer's Earnings Upcoming Earnings Coinbase Global (5/8/2025)Monster Beverage (5/8/2025)Brookfield (5/8/2025)Anheuser-Busch InBev SA/NV (5/8/2025)ConocoPhillips (5/8/2025)Cheniere Energy (5/8/2025)McKesson (5/8/2025)Shopify (5/8/2025)Enbridge (5/9/2025)Petróleo Brasileiro S.A. - Petrobras (5/12/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. Start Your 30-Day Trial MarketBeat All Access Features Best-in-Class Portfolio Monitoring Get personalized stock ideas. Compare portfolio to indices. Check stock news, ratings, SEC filings, and more. Stock Ideas and Recommendations See daily stock ideas from top analysts. Receive short-term trading ideas from MarketBeat. Identify trending stocks on social media. Advanced Stock Screeners and Research Tools Use our seven stock screeners to find suitable stocks. Stay informed with MarketBeat's real-time news. Export data to Excel for personal analysis. Sign in to your free account to enjoy these benefits In-depth profiles and analysis for 20,000 public companies. Real-time analyst ratings, insider transactions, earnings data, and more. Our daily ratings and market update email newsletter. Sign in to your free account to enjoy all that MarketBeat has to offer. Sign In Create Account Your Email Address: Email Address Required Your Password: Password Required Log In or Sign in with Facebook Sign in with Google Forgot your password? Your Email Address: Please enter your email address. Please enter a valid email address Choose a Password: Please enter your password. Your password must be at least 8 characters long and contain at least 1 number, 1 letter, and 1 special character. Create My Account (Free) or Sign in with Facebook Sign in with Google By creating a free account, you agree to our terms of service. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
There are 6 speakers on the call. Operator00:00:00Thank you for standing by. My name is Celine, and I will be your conference operator today. At this time, I would like to welcome everyone to the Finance of America First Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question and answer session. Operator00:00:35Thank you. I would now like to turn the call over to Michael Font, Senior Vice President of Finance. Please go ahead. Speaker 100:00:45Thank you, and good afternoon, everyone, and welcome to Finance of America's First Quarter twenty twenty five Earnings Call. With me today are Graham Fleming, Chief Executive Officer Kristen Sievert, President and Matt Engel, Chief Financial Officer. As a reminder, this call is being recorded, and you can find the earnings release and additional materials on our Investor Relations website at ir.financeofamericacompanies.com. In addition, we will refer to certain non GAAP financial measures on this call. You can find reconciliations of non GAAP to GAAP financial measures to the extent available without unreasonable efforts discussed on today's call in our earnings press release on the Investor Relations page of our website. Speaker 100:01:29Also, I would like to remind everyone that comments on this conference call may be forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations and are subject to the Safe Harbor statement for forward looking statements that you will find in today's earnings release. Actual results for future periods may differ materially from those expressed or implied by these forward looking statements due to a number of risks or other factors, including those that are described in the Risk Factors section of Finance of America's Annual Report on Form 10 ks for the year ended 12/31/2024, filed with the SEC on 03/14/2025. As such, risk factors may be amended and updated in our subsequent filings with the SEC. We are not undertaking any commitment to update these statements if conditions change. Speaker 100:02:27Please note, today, we will be discussing interim period financials for our continuing operations, which are unaudited. Now I would like to turn the call over to the Finance of America's Chief Executive Officer, Graham Fleming. Graham? Speaker 200:02:41Thank you, Michael. Good afternoon, everyone, and thank you for joining us today. The first quarter marked another important step forward in our strategy to raise awareness about the importance of home equity for homeowners 55 and up and position reverse mortgages as a preferred tool to unlock housing wealth. We continue to lead with innovation, scale and customer trust. As a result, we delivered $561,000,000 in funded volume during the first quarter, exceeding our guidance range of $525,000,000 to $550,000,000 That marks our fourth consecutive quarter of volume growth and a 32% improvement over the first quarter of twenty twenty four. Speaker 200:03:21During the quarter, we benefited from a modestly lower rate environment with a ten year treasury falling roughly 35 basis points, which was partially offset by widening spreads. On the whole, this resulted in a broadly positive fair value environment, creating a tailwind for our performance. From a financial performance perspective, we generated $80,000,000 in GAAP net income or $3.17 basic earnings per share. On an adjusted basis, the company earned $13,000,000 in adjusted net income or $0.52 per share, an improvement of $20,000,000 from the first quarter of twenty twenty four. We remain on track to meet our full year guidance of 2,400,000,000.0 to $2,700,000,000 in funded volume and $2.6 to $3 in adjusted earnings per share. Speaker 200:04:11Beyond the numbers, Q1 marked a strategic turning point in how we engage with borrowers and reshape industry perception. With the recent launch of our new A Better Way with FOA campaign, we are redefining how reverse mortgages are understood, moving the product from the margins into the mainstream as a flexible, forward looking financial planning tool for homeowners 55 and up. Finance of America is setting the standard for how our industry communicates the role of reverse mortgages, and Kristen will speak more about the new campaign. We believe this strategic repositioning strengthens our brands and supports long term growth. Speaker 300:04:49Finally, we continue to see the advantages of our product suite flexibility. By offering a broader range of solutions and the ability to introduce new products to address emerging needs, we Speaker 200:05:00are able to better serve our customers. This approach allows our customers to access the most suitable products to support their individual needs and circumstances. And with that, I'll turn it over to Kristen. Speaker 400:05:12Thanks, Graham, and good afternoon, everyone. The first quarter marked a pivotal moment in our operational and brand strategy. As part of our commitment to elevating customer engagement, we recently launched our new messaging campaign, a better way with FOA. This campaign marks a shift away from traditional celebrity endorsements towards storytelling that reflects real life goals and aspirations of today's homeowners. Our goal was to create ads that highlight relatable use cases that dismantle stereotypes and show reverse mortgages as a smart tool for responsible financial planning, whether it's funding a renovation, covering unexpected expenses, or simply enabling peace of mind. Speaker 400:05:54We're embedding this message across every customer and marketing touch point, and we expect the full transition will be complete by the June. To give you a closer look at the campaign in action, we posted a few examples of our creative materials on our investor relations website. We believe this new platform will enable us to attract and convert a new broader audience, one that is experienced and comfortable with leveraging home equity to responsibly achieve their financial goals and that has a higher intent to transact. A modest 5% improvement in our lead to opportunity metric would support the growth in retail production that we've modeled for the year with additional upside as we continue to focus on optimizing the customer journey. While the campaign has only been in market at a small scale for less than one month, we're already seeing this play out in our early direct mail results, which has shown a 16% improvement in our upper funnel inquiry to lead conversion. Speaker 400:06:50As we gain insights into the new types of customers engaging with our brand, we will utilize this data to inform our growth strategy and drive product innovation. Given the various economic uncertainties impacting our customers, including stock market volatility, risk of recession and further inflation, we're confident that our current solutions can assist many Americans in achieving the stability they seek. Furthermore, we're well positioned to introduce new solutions to address additional needs. In addition to launching the new brand platform, we've continued to focus on the fundamentals across the business and have seen notable improvements across key operational metrics in Q1. Quarter over quarter, we doubled the percentage of retail loans funded within the first thirty days from submission. Speaker 400:07:36We increased the initial thirty day sales conversion rates by 40%, and we reduced our cost per opportunity by 12% over the same period. Our continued focus on operational excellence is strengthening the business and laying the groundwork for future growth investments. Before I hand it over to Matt, I'd like to congratulate John Scarpatti on his recent promotion to Chief Production Officer of our operating subsidiary, Finance of America Reverse. John has been the head of our industry leading wholesale division for over a decade. In this new role, John will oversee our sales and production strategy, heading both the wholesale and retail channels. Speaker 400:08:14We believe this leadership will be key to helping us unlock the massive growth potential we know is available within our category. With momentum on the brand and operations front, I'll turn it over to Matt to discuss our financial performance. Matt? Speaker 500:08:29Thank you, Kristen, and good afternoon, everyone. The first quarter of twenty twenty five was strong across several key metrics. We delivered $561,000,000 in funded volume, up 5% from the fourth quarter of 'twenty four and thirty two percent from the first quarter of twenty twenty four. As Graham mentioned, this was the fourth consecutive quarter of volume growth for the company. We also saw a meaningful improvement in our GAAP results. Speaker 500:08:53For the first quarter, the company recorded GAAP net income of $80,000,000 or $3.17 per basic share compared to a GAAP net loss of $16,000,000 or $0.58 per basic share in the first quarter of twenty twenty four. These results were aided by positive fair value adjustments during the quarter. While spreads widened slightly, overall valuations remained positive given declining base rates and stable home price appreciation assumptions. Adjusted net income for the first quarter came in at $13,000,000 or $0.52 per share. This result was in line with our stated expectations performing similar to the third quarter of twenty twenty four. Speaker 500:09:31Compared to the first quarter of twenty twenty four, when we reported an adjusted net loss of $7,000,000 the company saw a $20,000,000 improvement year over year. This turnaround reflects three key elements of strong operational performance: higher volumes, a fully integrated business and disciplined expense management. Quarter over quarter, adjusted net income improved by $8,000,000 increasing from $5,000,000 in the fourth quarter of twenty twenty four. This performance reflects our ability to grow volume efficiently while maintaining margin discipline, even in a dynamic rate environment. Adjusted EBITDA totaled $29,000,000 This represents an $11,000,000 improvement from $18,000,000 in the fourth quarter of twenty twenty four and a $29,000,000 increase from breakeven in the first quarter of twenty twenty four. Speaker 500:10:18Building on that, product level margins improved quarter over quarter as expected. However, total Retirement Solutions revenue margin was flat sequentially, driven by a shift in channel mix. Our wholesale channel exceeded volume expectations, helping us beat our overall guidance. However, since wholesale carries lower margins, channel mix offset the product level improvement, and our overall revenue margin was flat. Turning to our cost structure. Speaker 500:10:43We saw further improvements both sequentially and year over year as a result of our disciplined approach to vendor spend. Compared to the first quarter of twenty twenty four, general and administrative expenses declined by $4,300,000 representing a 25% year over year reduction. A key contributor to this was a 35% decrease in communication and data processing expenses, which reflects our ongoing efforts to right size our vendor relationships and optimize our technology infrastructure. These savings highlight the efficiency gains we continue to unlock through proactive cost management. Speaking of efficiency across the platform, operational productivity continues to trend favorably. Speaker 500:11:23We originated higher volumes with a more streamlined team, leading to an increase in loans per employee of 33% across our origination platform compared to the first quarter of twenty twenty four. We expect to continue to see this trend upward due to the scalability of our model and the benefit of our ongoing digital transformation. Our liquidity remains adequate, and we remain healthy maintain healthy financing capacity to support our continued growth projections. We are reaffirming our full year guidance for both volume and earnings. 2,400,000,000.0 to $2,700,000,000 in origination volume and $2.6 to $3 in adjusted EPS. Speaker 500:12:02In addition, for the second quarter, we expect to see funded volume in the range of $575,000,000 to $600,000,000 With that, let me hand it back to Graham for closing remarks. Thank you, Matt. We are happy with Speaker 200:12:15our progress in Q1 and confident in our ability to continue to execute going forward. Our message is resonating, our platform is delivering, and our strategy is taking hold. Older homeowners are increasingly aware of the value sitting around them for home equity. When investment portfolios are under pressure, the relative stability of housing creates compelling case for tapping into home equity. As the largest originator of reverse mortgages in the country, we believe we are well positioned to meet the moment. Speaker 200:12:45There is a better way with FOA. And with that, we'll open the call for questions. Operator00:12:52Thank you. We will now begin the question and answer session. If you would like to withdraw your question, simply press star one again. If you are called upon to ask your question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Your first question comes from the line of Doug Harter with UBS. Operator00:13:27This Speaker 300:13:31is actually Will Masta on for Doug today. And I know you gave guidance for 2Q volumes, but I was just hoping you could talk for a minute about how the rate volatility, particularly in April, impacted volumes and kind of what you've been seeing in the market so far this quarter? Speaker 200:13:48You know, I'll I'll take the second part of that question. April, April was actually our best submission and funded volume, month in the last two years, so very strong, volume in April. I don't know, Matt, if you want to take the rate environment and volatility, but Speaker 500:14:03I mean, I think certainly rates continue to bounce around a little bit. So we're kind of taking it day by day, but we haven't seen a significant movement yet either way in terms of the rate impacting our volume at this point. Speaker 300:14:18Okay. All right. That makes sense. And then just one more. Could you just talk about what your outlook for expenses are? Speaker 300:14:25Obviously, they've come down a decent amount over the last year plus. Just curious how you're thinking about your expense base going forward. Speaker 500:14:33So I'll kind of reiterate what we said in prior quarters that, you know, our our fixed cost base is relatively fixed. Right? As production increases, we expect there'll be some variable expenses increase along with that, but the fixed base is relatively fixed. That said, on the fixed side, we continue to see we were a much bigger business a couple of years ago. We continue to see opportunities, what we call sharpen the pencil, as contracts renew and we can renew for a lower fee count, lower number of licenses, we see some downward pressure on some of those expenses. Speaker 500:15:04But relatively speaking, our fixed corporate infrastructure is going be fixed and we only have the variable expenses on increased production. We do feel like our platform can handle significantly more production without putting a lot of pressure on that fixed cost base. Speaker 300:15:19Got it. Okay. Thank you. Operator00:15:23That concludes our question and answer session. I will now turn the conference back over to Graham Levine for closing remarks. Speaker 200:15:32Want to thank everybody for joining our Q1 call, and we look forward to updating you on our progress in q two in in August. So thank you very much, everybody. Ladies Operator00:15:43and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.Read morePowered by