Market Opportunity and Growth Potential - Finance of America Companies Inc. (FOA) focuses on home equity-based financing solutions, targeting the senior population aged 55 and over, with a significant market opportunity as 11,400 people turn 65 daily in the U.S. from 2024 to 2026 [22]. - As of Q3 2025, homeowners aged 62 and over possess $14.66 trillion in home equity, yet only 2% utilize reverse mortgage loans, indicating a substantial growth potential for FOA's offerings [22]. - FOA plans to launch traditional home equity loan products for the first time in October 2025, expanding its service offerings to borrowers needing higher loan-to-value solutions [23]. Financial Performance and Metrics - Net profits of $103.0 million and $35.7 million were generated for the years ended December 31, 2025 and 2024, respectively, but the company has an accumulated deficit of $653.7 million as of December 31, 2025 [74]. - Revenues were $394 million in fiscal year 2024 and $497 million in fiscal year 2025, with the Retirement Solutions segment contributing $206 million in 2024 and $253 million in 2025 [76]. - The company is significantly impacted by interest rate changes, with the Federal Reserve increasing rates eleven times in 2022 and 2023, which negatively affected mortgage financing demand and overall revenues [76]. Capital and Funding - FOA's strategic partnership with Blue Owl Capital includes a commitment to purchase up to $2.5 billion in reverse mortgage loans and other loan products, enhancing capital access [29]. - As of December 31, 2025, FOA had $1.7 billion in committed or uncommitted loan funding capacity, with $0.6 billion in liquidity sources available for operations [30]. - FAR's borrowing capacity is $1.7 billion across 15 warehouse facilities and other lines of credit as of December 31, 2025 [135]. Risk Management and Regulatory Compliance - The company is subject to extensive regulation by federal, state, and local authorities, which could adversely impact its results of operations and financial condition [50]. - The company must comply with the 40% test under the Investment Company Act to avoid being classified as an investment company, ensuring that investment securities do not exceed 40% of total assets [54]. - The company expects to incur ongoing operational and system costs to maintain compliance with laws and regulations [57]. Operational Efficiency and Internal Capabilities - The company is enhancing its internal servicing capabilities to improve customer experience and reduce servicing-related expenses, particularly for non-agency reverse mortgage products [31]. - The company has implemented measures to mitigate risks associated with reverse mortgage products, including borrower counseling and financial assessments, to reduce default risks [107]. - The company is undertaking initiatives to enhance internal servicing capabilities, aimed at improving customer experience and reducing resolution timelines, although these initiatives present operational and regulatory risks [164]. Marketing and Customer Engagement - The company has initiated a digital marketing strategy, including a national advertising campaign and the launch of an AI-powered customer ambassador chatbot named "Joy" to enhance customer engagement [26]. - The company launched a digital pre-qualification tool that delivers a three-minute pre-qualification experience, enhancing customer engagement [69]. - In October 2025, the company announced a strategic partnership with Better to offer traditional home equity loan products through Better's AI platform, aiming to integrate reverse mortgage products into a unified digital experience [70]. Employee and Workforce Management - The company employs 784 U.S.-based employees, including 782 full-time and 2 part-time employees, as of December 31, 2025 [41]. - The company offers a comprehensive benefits package, including health insurance, dental insurance, vision insurance, life insurance, and a 401(k) plan with employer match [49]. - The company’s ability to attract and retain skilled employees is critical for success, as trained personnel in the mortgage industry are in high demand and may be recruited by competitors [89]. Legal and Litigation Risks - The company is currently involved in litigation under the California Private Attorneys General Act related to alleged violations of the California Labor Code, which may require substantial time and expense to defend against [204]. - The company is involved in various legal proceedings, including class action lawsuits, which could result in significant financial liabilities and adversely affect its financial results [205]. - The company faces potential regulatory enforcement actions and private causes of action related to compliance with applicable laws, which could adversely affect its business and financial condition [183]. Market and Economic Conditions - The company's loan origination and servicing revenues are highly dependent on macroeconomic conditions and the U.S. residential real estate market, which is affected by national and global events [121]. - Adverse economic conditions may decrease demand for loans, impacting origination volumes and increasing default rates, particularly in high-interest rate environments [122]. - The company faces risks related to climate change and ESG regulations, which may increase operational costs and require additional investments [112]. Technology and Cybersecurity - Cybersecurity risks are heightened, with potential breaches that could compromise sensitive information and adversely affect business operations and reputation [99]. - The company relies on third-party technologies for information security, and failures in these systems could lead to significant operational disruptions and reputational harm [100]. - The company faces risks related to the use of AI technologies, including compliance and reputational risks, as regulatory scrutiny around AI continues to evolve [83].

Core Insights - The company is focused on the development of transcript-related projects, indicating a commitment to enhancing their offerings in this area [1] Group 1 - The company publishes thousands of quarterly earnings calls each quarter, showcasing significant growth and expansion in their coverage [1]

Core Insights - Finance Of America Companies Inc. demonstrated strong operational performance in 2025, achieving a GAAP net income of $110 million, or $5.04 per share, a 175% increase from the previous year [1] - Adjusted net income for the year was $74 million, or $3.04 per share, reflecting a 429% increase compared to 2024, exceeding guidance [1][14] - The company reported adjusted EBITDA of $143 million, a 138% increase year-over-year, indicating improved earnings quality and operating leverage [5][14] Financial Performance - Total revenue for 2025 increased by 26% year-over-year to $497 million, up from $394 million in 2024, with a significant portion of this increase translating into improved profitability [14] - The company funded $2.4 billion in originations in 2025, a 24% increase from $1.9 billion in 2024, with fourth quarter volume totaling $619 million [5][9] - Adjusted earnings per share for the fourth quarter were $0.69, representing a 180% increase compared to 2024 [16] Strategic Initiatives - The company announced an agreement to acquire a reverse mortgage servicing portfolio from PHH Mortgage, expected to close in the second quarter of 2026, which will enhance its servicing platform and origination talent [6][7] - A $50 million equity investment was made to support growth initiatives, reflecting the company's commitment to expanding its market presence [7] - Investments in technology and operational processes, including the implementation of AI, have improved customer engagement and operational efficiency [9][10] Market Position and Outlook - The company is positioned as a leader in the reverse mortgage market, with significant marketing investments and a strong brand presence [9] - Early indicators for 2026 show a 75% year-over-year increase in inquiry volume and a 30% increase in opportunities, suggesting strong demand trends [10][11] - The company expects volume growth of 15% to 25% in 2026, with adjusted earnings per share guidance set between $4.25 and $4.75 [17][21] Cash Flow and Debt Management - Finance Of America generated over $150 million in cash flows from core operations in 2025, with plans to use these funds to pay down $150 million of corporate debt [18][19] - The company aims to eliminate all corporate debt in the coming years, enhancing its capital structure and resilience [21][22] - Cash and cash equivalents increased by $42 million during 2025, reflecting strong cash generation capabilities [17]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported GAAP net income of $110 million, or $5.04 per share, a 175% improvement compared to the prior year [4] - Adjusted net income for the full year was $74 million, or $3.04 per share, representing a 429% increase from 2024 [4][14] - Adjusted EBITDA for the year was $143 million, a 138% increase year-over-year [5][14] - Total revenue increased by 26% year-over-year to $497 million in 2025, compared to $394 million in 2024 [14] Business Line Data and Key Metrics Changes - The company funded $2.4 billion of originations in 2025, a 24% increase from $1.9 billion in 2024 [5][9] - Fourth quarter volume totaled $619 million, reflecting strong sequential performance [6][9] - The company recognized $47 million in adjusted net income for the second half of 2025, or adjusted earnings per share of $2.05, which annualizes to approximately $4.10 per share [16] Market Data and Key Metrics Changes - Inquiry volume in January increased more than 75% year-over-year, with speed to answer calls improving by over 60% [9] - Google Trends data shows reverse mortgage-related search activity trending approximately 40% higher year-over-year at seasonal peaks [11] Company Strategy and Development Direction - The company is focused on strengthening its balance sheet and improving alignment while operating in a dynamic market environment [4] - An agreement was announced to acquire the reverse mortgage servicing portfolio from PHH Mortgage, expected to close in the second quarter, which will expand the servicing platform [6] - The company aims to grow volume by 15%-25% year-over-year for 2026, supporting adjusted earnings per share guidance of $4.25-$4.75 [17][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's earnings power becoming more visible and durable as the business scales [20] - The company anticipates cash flows from core operations will be sufficient to fund acquisitions and pay down debt [18][20] - Management highlighted that demographic trends continue to support long-term demand for responsible home equity solutions [21] Other Important Information - The company ended 2025 with a tangible equity position 117% greater than December 2024 [18] - The company generated over $150 million in cash flows through core origination and capital markets activities during 2025 [18] Q&A Session Summary Question: Clarification on balance sheet and cash uses - The company plans to focus on retiring $150 million of corporate debt before considering further share repurchases [24][32] Question: Cash generation and stock buyback - The company expects to pay off the entire $150 million of corporate debt this year, allowing for potential share repurchases in 2027 [32] Question: Key earnings measure - Management emphasized that Adjusted EPS is the most important measure, with guidance for 2026 set at $4.25-$4.75 [33] Question: Share repurchase timing - The company is currently focused on retiring corporate debt, but share repurchase options could be considered as the year unfolds [37]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported GAAP net income of $110 million, or $5.04 per share, representing a 175% improvement compared to the prior year [4] - Adjusted net income for the full year was $74 million, or $3.04 per share, up $60 million from 2024, representing a 429% increase [4][15] - Adjusted EBITDA for the year was $143 million, a 138% increase versus 2024 [5][16] - Total revenue increased 26% year-over-year to $497 million in 2025, compared to $394 million in 2024 [16] Business Line Data and Key Metrics Changes - The company funded $2.4 billion of originations in 2025, a 24% increase from $1.9 billion in 2024 [5][10] - Fourth quarter volume totaled $619 million, reflecting strong sequential performance [6][10] - The company recognized $47 million in adjusted net income for the second half of 2025, or adjusted earnings per share of $2.05, which annualizes to approximately $4.10 per share [18] Market Data and Key Metrics Changes - Inquiry volume in January increased more than 75% year-over-year, with speed to answer calls improving by over 60% [10] - Google Trends data shows reverse mortgage-related search activity trending approximately 40% higher year-over-year at seasonal peaks [12] Company Strategy and Development Direction - The company is focused on strengthening its balance sheet and improving alignment while operating in a dynamic market environment [4] - An agreement was announced to acquire the reverse mortgage servicing portfolio from PHH Mortgage, expected to close in the second quarter, which will expand the servicing platform and add origination talent [7] - The company aims to grow volume by 15%-25% year-over-year for a range of $2.8 billion-$3.1 billion in 2026 [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's earnings power becoming more visible and durable as the business scales [22] - The company anticipates cash flows from core operations will be sufficient to fund acquisitions and pay down debt [20] - Management highlighted that demographic trends continue to support long-term demand for responsible home equity solutions [24] Other Important Information - The company ended 2025 with a tangible equity position 117% greater than December 2024 [20] - The company generated over $150 million in cash flows through core origination and capital markets activities during 2025 [19] Q&A Session Summary Question: Clarification on balance sheet and cash uses - The company confirmed it can fund the PHH acquisition and pay down senior secured notes, with a focus on retiring $150 million of corporate debt before considering share repurchases [26][34] Question: Cash generation and stock buyback - The company aims to pay off the entire $150 million of corporate debt this year, with potential for share repurchases in 2027 [34][38] Question: Key earnings measure - Management indicated that Adjusted EPS is the most important measure, with guidance for 2026 set at $4.25-$4.75 [35] Question: Share repurchase timing - The company is currently focused on retiring corporate debt, but share repurchase options will be evaluated as the year unfolds [38]

FY 2025 Investor Supplement LAST UPDATED 03.10.2026 © 2026 Finance of America Companies Disclaimer Forward Looking Statements This presentation includes forward-looking statements within the meaning of the "safe harbor" provisions of the United States of America (the "U.S.") Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company's beliefs regarding future events, many of which, by their ...

Financial Performance - Basic earnings per share for the year reached $5.04, with net income from continuing operations totaling $110 million, reflecting a 175% increase year over year[1] - Adjusted earnings per share were $3.04, with adjusted net income of $74 million, marking a 429% increase compared to 2024[1] - Total revenue for the year increased by 26% to $497 million compared to $394 million in 2024[5] - Pre-tax income from continuing operations improved to $113 million, a 163% increase from $43 million in 2024[5] - Adjusted net income for the Portfolio Management segment increased by 83% to $77 million compared to $42 million in 2024, reflecting improved portfolio economics[12] - Basic earnings per share from continuing operations for Q4'25 was $(1.30), compared to $(5.95) in Q4'24, indicating a significant improvement year-over-year[19] - Adjusted net income for Q4'25 was $14,000, up from $5,000 in Q4'24, reflecting a positive trend in operational performance[20] - The company reported net origination gains of $64,039 in Q4'25, up from $42,704 in Q4'24, indicating growth in loan production activities[17] - For the year ended December 31, 2025, the total adjusted net income was $85 million, with Retirement Solutions contributing $63 million and Portfolio Management contributing $77 million, while Corporate & Other reported a loss of $55 million[25] Equity and Liquidity - Total equity increased to $396 million as of December 31, 2025, a 25% rise from $316 million in 2024, driven by strong profitability and new investments[7] - Cash and cash equivalents rose to $90 million, a 91% increase from $47 million in 2024, indicating strong liquidity[7] - The company’s total equity increased to $396,000 in 2025 from $316,000 in 2024, indicating a strengthening balance sheet[20] Strategic Initiatives - The company announced an agreement to acquire a reverse mortgage servicing portfolio from PHH Mortgage, enhancing its servicing platform and origination capabilities[4] - A strategic partnership worth $2.5 billion was established, along with a $50 million equity investment from Blue Owl, supporting growth initiatives[4] Operational Metrics - Funded volume for the year was $2.4 billion, representing a 24% increase from 2024, with quarterly funded volume at $619 million, consistent with expectations[4] - Adjusted EBITDA for Q4'25 was $28,000, compared to $18,000 in Q4'24, reflecting improved operational efficiency[20] - The company experienced a net loss from discontinued operations of $(617) in Q4'25, down from $(6,539) in 2024, suggesting better management of non-core assets[17] Earnings Breakdown - For the three months ended December 31, 2025, adjusted net income for Retirement Solutions was $18 million, Portfolio Management was $11 million, and Corporate & Other was a loss of $15 million, resulting in a total adjusted net income of $17 million[22] - The adjusted earnings per share for the same period were $0.74 for Retirement Solutions, $0.43 for Portfolio Management, and $(0.48) for Corporate & Other, with a total of $0.69[22] - In the three months ended September 30, 2025, adjusted net income for Retirement Solutions was $20 million, Portfolio Management was $30 million, and Corporate & Other was a loss of $17 million, leading to a total adjusted net income of $36 million[23] - The adjusted earnings per share for the third quarter of 2025 were $0.75 for Retirement Solutions, $1.11 for Portfolio Management, and $(0.53) for Corporate & Other, totaling $1.33[23] Non-GAAP Measures - Adjusted net income (loss) is defined as net income (loss) from continuing operations adjusted for specific items, providing insight into the company's operational performance[40] - Adjusted EBITDA is calculated by adjusting net income (loss) for income taxes, changes in fair value of loans, amortization of intangibles, and certain non-recurring costs, among others[42] - Adjusted earnings (loss) per share is derived from adjusted net income (loss) and includes interest expense on exchangeable senior secured notes, divided by the weighted average shares outstanding[46] - Management emphasizes the importance of adjusted metrics for evaluating the company's performance and comparability to peers, despite these measures not being in accordance with U.S. GAAP[44] - The company cautions against placing undue reliance on non-GAAP financial measures due to their limitations in assessing discretionary cash available for growth or shareholder distribution[39] - Adjusted net income (loss) and adjusted EBITDA are utilized by management to assess key drivers and operational performance of the business[41] - The company is unable to provide a reconciliation of forward-looking adjusted earnings per share outlook to U.S. GAAP earnings per share without unreasonable effort due to the unpredictability of certain adjusted items[48] - Adjusted metrics may vary from other companies in the industry, highlighting the need for careful analysis when comparing performance[47] - Management believes that tangible equity provides additional insight into the underlying equity position of the business, which is useful for analysts and investors[50]

Core Viewpoint - Abbott Cooper PLLC is investigating potential breaches of fiduciary duty by the Board of Directors of Finance of America Companies, Inc. on behalf of the company's stockholders [1] Group 1: Investigation Details - The investigation focuses on whether the Finance of America Board of Directors has fulfilled its fiduciary obligations to stockholders, including its duty of loyalty [1] Group 2: Stockholder Information - Stockholders of Finance of America who are interested in learning more about the investigation or their legal rights are encouraged to contact Abbott Cooper PLLC at no cost or obligation [2] - Abbott Cooper PLLC operates on a contingency fee basis, meaning there is no cost to stockholders unless a recovery is obtained [2]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures [1][2] Group 1 - There is no stock, option, or similar derivative position in any of the companies mentioned [1] - The article expresses personal opinions and is not compensated for the content [1] - No business relationship exists with any company whose stock is mentioned [1] Group 2 - Past performance is not indicative of future results [2] - No investment recommendations or advice are provided [2] - Analysts may not be licensed or certified by any regulatory body [2]

Core Insights - Finance of America Companies Inc. has announced the expansion of a $2.5 billion strategic partnership with Blue Owl Capital to enhance product innovation and distribution for the growing retirement demographic in the U.S. [1] Company Overview - Finance of America is a leading provider of home equity-based financing solutions tailored for modern retirement needs [1]. - Blue Owl Capital is recognized as a prominent alternative asset manager [1]. Strategic Partnership Details - The partnership aims to accelerate the development and distribution of financial products specifically designed for the fast-growing retirement demographic in the nation [1]. - The total value of the partnership is set at $2.5 billion, indicating a significant commitment to innovation in this sector [1].