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

Finance of America Companies (NYSE:FOA) posted its quarterly earnings results on Tuesday. The company reported $0.28 EPS for the quarter, missing analysts’ consensus estimates of $1.26 by ($0.98), FiscalAI reports. Finance of America Companies had a positive return on equity of 28.39% and a negative net margin of 0.10%. The company had revenue of $89.00 million during the quarter, compared to the consensus estimate of $132.34 million.

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

• Funded volume increased 24% year over year to $748 million in Q3, supported by growth across HECM, HomeSafe First, and HomeSafe Second products. Management expects 2027 funded volume of $3.1 billion to $3.4 billion, citing retirement demographics and continued product expansion.
• Retail productivity improved substantially, with production per loan officer rising more than 40% year over year to approximately $1.2 million per month. Digital initiatives also lifted prequalification starts and opportunities while reducing lead-to-application time.
• Higher interest rates compressed revenue margins and contributed to a $130 million GAAP pretax loss, primarily through non-cash fair-value adjustments. Retirement Solutions revenue margin fell to 9% from 11.3% a year earlier, and Q4 adjusted earnings are expected to be similar to Q3.
• The company withdrew its full-year 2026 adjusted EPS guidance of $4.50–$5.00 because margin pressure and the time required for repricing changes to flow through the pipeline will weigh on results.
• Management plans to repay $60 million of senior secured notes and extend approximately $90 million of remaining debt to November 2027. It expects cash generation from securitization activity and potential HECM MSR financing to support repayment, after which share buybacks or dividends may become possible.

Finance of America Companies Trading Down 2.3%

Shares of FOA stock opened at $10.70 on Wednesday. The company has a market capitalization of $185.15 million, a PE ratio of -3.55 and a beta of 1.77. Finance of America Companies has a 52-week low of $10.04 and a 52-week high of $29.79. The business’s fifty day moving average is $13.82 and its 200 day moving average is $19.31. The company has a debt-to-equity ratio of 60.78, a quick ratio of 3.02 and a current ratio of 3.02.

Insider Buying and Selling

In other Finance of America Companies news, CIO Jeremy Prahm sold 6,000 shares of the company’s stock in a transaction dated Monday, October 5th. The stock was sold at an average price of $13.20, for a total value of $79,200.00. Following the transaction, the executive directly owned 155,856 shares in the company, valued at $2,057,299.20. This represents a 3.71% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 43,110 shares of company stock worth $729,971 in the last three months. 35.37% of the stock is owned by insiders.

Wall Street Analyst Weigh In

FOA has been the topic of a number of analyst reports. Weiss Ratings lowered Finance of America Companies from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday, August 11th. Zacks Research raised Finance of America Companies from a “strong sell” rating to a “hold” rating in a report on Monday. Alliance Global Partners assumed coverage on Finance of America Companies in a research note on Wednesday, July 22nd. They issued a “buy” rating and a $30.00 target price for the company. B. Riley Financial reaffirmed a “buy” rating and set a $32.00 target price (up from $25.00) on shares of Finance of America Companies in a report on Wednesday, August 5th. Finally, Wall Street Zen upgraded Finance of America Companies from a “sell” rating to a “hold” rating in a research report on Saturday, October 3rd. Two analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $30.50.

Finance of America Companies News Roundup

Here are the key news stories impacting Finance of America Companies this week:

• Positive Sentiment: Management projected a $4–$5 adjusted EPS run rate in the second half of 2027, with margins expected to normalize in the first half. That forecast offers a potential longer-term recovery signal, though it depends on future margin improvement. Article: Finance of America forecasts adjusted EPS
• Positive Sentiment: Reports highlighted growth in origination volume and FOA’s position in the reverse-mortgage market, providing some support for its business outlook. Article: Finance of America earnings
• Positive Sentiment: Zacks Research raised its rating on FOA from “strong sell” to “hold”—an improvement, although not an outright buy recommendation. Zacks Research ratings
• Negative Sentiment: FOA reported third-quarter EPS of $0.28, well below the $1.26 consensus estimate and down from $1.33 a year earlier. Revenue of $89 million also missed expectations of $132.34 million; a separate report said the company posted a $110 million loss. The earnings and revenue misses are the clearest near-term negatives. Article: FOA misses Q3 earnings and revenue estimates

About Finance of America Companies

Finance of America Companies Inc (NYSE:FOA) is a financial services company focused on helping homeowners access and manage home equity. Its primary business is conducted through Finance of America Reverse, which provides reverse mortgage products and related services to older homeowners.

The company offers federally insured Home Equity Conversion Mortgages (HECMs), proprietary reverse mortgage products and reverse mortgage refinancing solutions. These products generally allow eligible homeowners to convert a portion of their home equity into funds while continuing to live in their homes, subject to applicable loan terms, taxes, insurance and maintenance requirements.