Finance of America Companies (NYSE:FOA) Issues Quarterly Earnings Results

Key Points

• Finance of America reported Q earnings of $0.69 EPS, beating estimates, but revenue missed at $73.5M versus expectations of $109.5M; management highlighted strong 2025 results (GAAP net income $110M, adjusted net income $74M, Adjusted EBITDA $143M) and reiterated 2026 guidance of $4.25–$4.75 adjusted EPS with expected volume growth of 15%–25%.
• Management said technology and AI improvements—most notably the "Joy" ambassador—have materially boosted digital conversion ( >5x vs prior call center) and doubled pre-qual engagement, implying lower customer acquisition costs and better scalability.
• The company has strengthened its capital position with a $50M preferred equity investment, a $40M convertible note and completion of the Blackstone buyback, expects to close the PHH servicing portfolio in Q2 and is targeting to retire $150M of corporate debt in 2026, though GAAP results remain volatile (Q4 GAAP loss of $21M from non‑cash fair‑value movements).

Finance of America Companies (NYSE:FOA - Get Free Report) released its earnings results on Tuesday. The company reported $0.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.65 by $0.04, Zacks reports. The business had revenue of $73.51 million for the quarter, compared to analysts' expectations of $109.45 million.

Here are the key takeaways from Finance of America Companies' conference call:

• Finance of America delivered a strong 2025 operating performance with GAAP net income of $110M ($5.04/sh), adjusted net income of $74M ($3.04/sh), and Adjusted EBITDA of $143M, and management reiterated 2026 guidance of $4.25–$4.75 adjusted EPS with expected volume growth of 15%–25% to $2.8B–$3.1B.
• Management highlighted meaningful operational improvements from technology and AI — its "Joy" ambassador is generating >5x the conversion of the prior call center and early 2026 digital metrics show doubled pre-qual engagement and large gains in speed-to-application and submission rates, implying lower acquisition costs and better scalability.
• The company strengthened its capital position via a $50M preferred equity investment, a $40M convertible note, completion of the Blackstone buyback, and expects to close the PHH servicing portfolio acquisition in Q2 while targeting to retire the $150M corporate debt in 2026 to further deleverage the balance sheet.
• GAAP results remain volatile — the company reported a Q4 GAAP loss of $21M driven by non‑cash fair value movements of residual assets and sensitivity to interest rates/spreads, which could continue to cause near-term GAAP earnings swings despite resilient adjusted cash earnings.

Finance of America Companies Trading Up 4.1%

Shares of FOA traded up $0.73 during midday trading on Wednesday, reaching $18.33. The company had a trading volume of 69,631 shares, compared to its average volume of 85,516. Finance of America Companies has a 1-year low of $16.58 and a 1-year high of $29.58. The company has a quick ratio of 2.64, a current ratio of 2.64 and a debt-to-equity ratio of 51.28. The firm has a 50 day simple moving average of $22.02 and a 200-day simple moving average of $23.04. The stock has a market cap of $144.62 million, a PE ratio of -6.88 and a beta of 1.65.

Insider Activity

In related news, CAO Tai A. Thornock sold 1,100 shares of the company's stock in a transaction dated Friday, January 16th. The shares were sold at an average price of $24.58, for a total value of $27,038.00. Following the completion of the sale, the chief accounting officer owned 10,650 shares of the company's stock, valued at approximately $261,777. This represents a 9.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, major shareholder Tactical Opportunit Blackstone sold 1,596,142 shares of the firm's stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $10.00, for a total transaction of $15,961,420.00. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 3,195,234 shares of company stock valued at $31,993,357. 25.00% of the stock is currently owned by insiders.

Institutional Trading of Finance of America Companies

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Bridgeway Capital Management LLC acquired a new position in Finance of America Companies in the fourth quarter valued at approximately $207,000. Verition Fund Management LLC acquired a new stake in Finance of America Companies during the fourth quarter worth $201,000. Barclays PLC raised its position in Finance of America Companies by 23.9% in the fourth quarter. Barclays PLC now owns 7,907 shares of the company's stock valued at $191,000 after purchasing an additional 1,525 shares during the period. Charles Schwab Investment Management Inc. raised its position in Finance of America Companies by 8.3% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 18,241 shares of the company's stock valued at $442,000 after purchasing an additional 1,397 shares during the period. Finally, Los Angeles Capital Management LLC acquired a new position in shares of Finance of America Companies in the 4th quarter valued at $127,000. Institutional investors and hedge funds own 97.20% of the company's stock.

Wall Street Analyst Weigh In

FOA has been the topic of a number of recent research reports. Wall Street Zen lowered shares of Finance of America Companies from a "hold" rating to a "sell" rating in a research report on Saturday. Weiss Ratings reiterated a "sell (d)" rating on shares of Finance of America Companies in a report on Monday, December 29th. Finally, UBS Group set a $29.50 target price on shares of Finance of America Companies and gave the stock a "neutral" rating in a research note on Wednesday, November 26th. One equities research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $29.75.

About Finance of America Companies

Finance of America Companies NYSE: FOA is a diversified nonbank financial services firm specializing in mortgage and insurance products for consumers. The company operates across multiple business segments, delivering home financing solutions, retirement products and specialized lending services through a blend of digital and traditional distribution channels.

In its mortgage segment, FOA originates and purchases a range of home loans including purchase, refinance, FHA, VA and USDA loans.

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