Core Viewpoint - Momentum investing focuses on "buying high and selling higher" rather than the traditional "buying low and selling high" strategy, aiming for quicker profits [1] Group 1: Momentum Investing Characteristics - Momentum investing can be risky as stocks may lose momentum if their valuations exceed future growth potential, leading to potential losses for investors [2] - A safer approach involves investing in bargain stocks that exhibit recent price momentum, utilizing tools like the Zacks Momentum Style Score to identify such opportunities [3] Group 2: Finance of America Companies Inc. (FOA) Analysis - FOA has shown a four-week price change of 14.6%, indicating strong investor interest and recent price momentum [4] - Over the past 12 weeks, FOA's stock has gained 74.1%, with a beta of 1.22, suggesting it moves 22% more than the market [5] - FOA has a Momentum Score of A, indicating a favorable time to invest based on its momentum characteristics [6] Group 3: Earnings Estimates and Valuation - FOA has received a Zacks Rank 1 (Strong Buy) due to upward revisions in earnings estimates, which typically attract more investor interest [7] - The stock is currently trading at a Price-to-Sales ratio of 0.30, suggesting it is undervalued as investors pay only 30 cents for each dollar of sales [7] Group 4: Additional Investment Opportunities - Besides FOA, there are other stocks that meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen, presenting further investment opportunities [8] - The Zacks Premium Screens offer over 45 different strategies to help identify potential winning stocks based on various investing styles [9]

Financial Performance - Net income from continuing operations for the three months ended September 30, 2024, was $203,748 thousand, compared to a loss of $172,468 thousand in the same period of 2023[16]. - Basic earnings per share from continuing operations was $8.48 for the three months ended September 30, 2024, compared to a loss of $7.36 in the same period of 2023[18]. - Total revenues for the three months ended September 30, 2024, were $290,073 thousand, a significant increase from a loss of $70,440 thousand in the same period of 2023[16]. - Comprehensive income attributable to controlling interest for the three months ended September 30, 2024, was $84,213 thousand, compared to a loss of $65,351 thousand in the same period of 2023[20]. - The company reported net income (loss) attributable to controlling interest of $84,203 thousand for the three months ended September 30, 2024, compared to a loss of $65,363 thousand in the same period of 2023[18]. - The net income for the quarter was $74,576, contributing to a total of $178,320 for the year[32]. - Net income for the nine months ended September 30, 2024, was $178,320, compared to a net loss of $382,821 for the same period in 2023[41]. - The company reported net income before taxes of $208,173,000 for the three months ended September 30, 2024, compared to a net loss before taxes of $172,571,000 for the same period in 2023[160]. - Net portfolio interest income for the three months ended September 30, 2024, was $63,061,000, down from $71,540,000 in the prior year, representing a decline of about 11.1%[158]. - Total expenses for the three months ended September 30, 2024, were $80,308,000, compared to $105,426,000 in the same period of 2023, reflecting a decrease of approximately 23.8%[160]. Assets and Liabilities - Total assets increased to $9,157,545 thousand as of September 30, 2024, compared to $8,117,754 thousand as of December 31, 2023, representing a growth of 12.8%[14]. - Total liabilities increased to $8,346,965 thousand as of September 30, 2024, from $7,531,958 thousand as of December 31, 2023, reflecting a rise of 10.8%[14]. - The net carrying value of assets in variable interest entities (VIEs) increased to $810,580 thousand, up from $585,796 thousand, marking a growth of 38.3%[14]. - The balance of additional paid-in capital reached $953,023 as of September 30, 2024[24]. - The balance of retained earnings (accumulated deficit) was $(639,807) as of September 30, 2024[24]. - Total cash consideration for the acquisition amounted to $140.9 million, with 1,969,299 Class A LLC Units issued to the Seller at a fair value of $12.40 per share[65]. - The total assets acquired in the transaction were valued at $5,596.1 million, including loans held for investment of $5,448.7 million[65]. - The liabilities assumed in the acquisition totaled $5,380.8 million, primarily consisting of HMBS related obligations of $5,354.4 million[65]. Cash Flow and Investments - Net cash used in operating activities was $(317,610) for the nine months ended September 30, 2024, compared to $(10,233) for the same period in 2023[41]. - Net cash provided by investing activities was $145,598 for the nine months ended September 30, 2024, compared to $139,331 for the same period in 2023[41]. - Proceeds from the issuance of HMBS related obligations were $1,457,360 for the nine months ended September 30, 2024, compared to $1,553,957 for the same period in 2023[41]. - Payments on HMBS related obligations increased to $(1,622,531) for the nine months ended September 30, 2024, from $(1,433,751) in 2023[41]. - Cash paid for interest increased to $274,887 for the nine months ended September 30, 2024, compared to $210,840 for the same period in 2023[41]. Equity and Stock Activity - As of September 30, 2024, total equity increased to $456,456, up from $143,512 at the end of the previous quarter[24]. - The total shares outstanding increased to 9,925,802, reflecting ongoing equity management strategies[24]. - The company completed a 1-for-10 reverse stock split on July 25, 2024, affecting the number of Class A Common Stock shares[48]. - The company issued 2,173,912 shares of Class A Common Stock for $30,000,000 in conjunction with the AAG Transaction on March 31, 2023[174]. - The company issued 705,841 Class A LLC Units to AAG/Bloom on October 29, 2024, following the satisfaction of control conditions related to the AAG Transaction[186]. Segment Reporting and Business Strategy - The company restructured its reporting segments into Retirement Solutions and Portfolio Management to align with its business strategy[44]. - The company completed the acquisition of American Advisors Group's assets on March 31, 2023, enhancing its Retirement Solutions segment[47]. - The company has discontinued certain business lines to enhance its reverse mortgage loan business, impacting operations and financial results significantly[67]. - The company ceased operations of Incenter Solutions LLC, with the wind-down substantially complete as of December 31, 2023[46]. Market and Interest Rate Risks - The company’s principal market risk is interest rate risk, primarily due to changes in long-term Treasury rates and mortgage interest rates[303]. - An increase in prevailing interest rates could adversely affect loan origination volume, making new loans or refinancing less attractive to borrowers[304]. - An increase in interest rates may lead to higher delinquency, default, and foreclosure rates, increasing servicing costs and interest expenses on outstanding debt[304]. - The fair value of long-term assets may decrease due to rising interest rates and market spreads[304]. - The estimated change in fair value for loans held for investment subject to HMBS related obligations shows a decrease of $30,833,000 with a 25 bps increase in rates[307]. Legal and Compliance Matters - The Company is a defendant in three lawsuits alleging violations of the California Labor Code, with two claims settled for a de minimis amount[146]. - The California Supreme Court ruled that individual PAGA claims must be arbitrated, affecting the Company's ongoing litigation strategy[146]. - The company has maintained a valuation allowance for deferred tax assets due to insufficient projected future taxable income[154]. - The effective tax rate on continuing operations differs from the U.S. federal statutory rate due to various factors, including state tax rates and discrete tax items[154]. Other Financial Metrics - The company achieved net origination gains of $57,216,000 for the three months ended September 30, 2024, compared to $31,376,000 in the same period in 2023, marking an increase of about 82.5%[158]. - The company recognized impairment charges related to the sales of previously reported segments, totaling $4.5 million for the nine months ended September 30, 2023[70]. - The company experienced settlements of $1,433,751 during the nine months ended September 30, 2023[118]. - The company serviced 2,767 Ginnie Mae loan pools as of September 30, 2024, an increase from 2,552 pools as of December 31, 2023[135].

Financial Data and Key Metrics - Net income for Q3 2024 was $204 million, or $8.48 in basic earnings per share, with adjusted net income of $15 million, or $0.67 in adjusted earnings per share, and adjusted EBITDA of $32 million [7] - Funded volume for Q3 reached $513 million, exceeding the guidance range of $475 million to $500 million [8] - Revenue increased from $79 million in Q2 to $290 million in Q3, driven by higher origination volumes and fair value gains on residual assets [24] - Adjusted EBITDA grew from $10 million in Q2 to $32 million in Q3, reflecting higher revenue and improved margins [25] - Tangible net worth rose to $231 million, or approximately $10 per share [23] Business Line Data and Key Metrics - The retail channel saw a 38% productivity improvement in fundings per loan officer compared to the prior quarter [13] - HomeSafe Second product saw an 89% increase in Q3 compared to Q2, with further growth anticipated [19] - The company completed a reverse stock split and finalized the exchange offer and consent solicitation of its 2025 unsecured notes, enhancing its balance sheet and financial flexibility [9] Market Data and Key Metrics - The company is focusing on consumers aged 55 and older seeking second lien mortgage loans, a segment with significant growth potential [11] - Home equity lending nationwide is on the rise, with denial rates for people aged 55 and older exceeding 35%, presenting a significant opportunity for the company [19] Company Strategy and Industry Competition - The company is modernizing its approach to customer experience and acquisition through a digital-first channel and a modern advertising strategy [15] - The consolidation of the Finance of America Reverse and AAG brands under a single name has been successful, setting the stage for further modernization [14] - The company is expanding its HomeSafe Second product to additional states and lowering loan interest rates to attract more customers [18] Management Commentary on Operating Environment and Future Outlook - The company expects to deliver adjusted earnings per share between $2.60 and $3 in 2025, reflecting confidence in its growth trajectory [31] - The senior population is expected to nearly double by 2050, presenting a massive total addressable market for the company's home equity-based retirement products [37] Other Important Information - The company completed a securitization of its HomeSafe product totaling $794 million in Q3, its third such securitization in 2024, enhancing liquidity [33] - The company is focused on improving its marketing strategy with a new advertising agency, introducing regional and local programs to build brand profile and drive business in strategic markets starting in 2025 [17] Q&A Session Summary Question: Outlook for volume given the backup in rates [39] - The company expects Q4 volume to be similar to Q3, around $500 million, with full-year 2025 volume anticipated to be around $2.7 billion [40][41] - The introduction of the HomeSafe Second program is designed to mitigate the impact of rising rates, offering a second lien product that is ideal for borrowers if rates remain high [42] Question: Timing and impact of HMBS 2.0 [44] - The company expects feedback from Ginnie Mae on HMBS 2.0 around mid-November [44] Question: Volume expectations and seasonality [46] - October was the strongest month for funding and submission volumes in 2024, but Q4 volumes are expected to be similar to Q3 due to holiday periods [47][48] - Seasonality may impact Q1 volumes, with growth expected to pick up after Q1 [49] Question: Impact of rate volatility on fair value marks [51] - Fair value marks are influenced by multiple factors, including interest rates, spreads, and home price appreciation, with some offsetting effects expected due to spread tightening [52][53]

Finance of America Companies Inc. (FOA) came out with quarterly earnings of $0.67 per share, beating the Zacks Consensus Estimate of $0.13 per share. This compares to loss of $1.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 415.38%. A quarter ago, it was expected that this company would post a loss of $0.20 per share when it actually produced a loss of $0.05, delivering a surprise of 75%.Over the last four quarters, the c ...

Core Insights - Finance of America Companies Inc. (FOA) reported a quarterly loss of $0.05 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.20, and an improvement from a loss of $1.20 per share a year ago, indicating a 75% earnings surprise [1] - The company achieved revenues of $79.04 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 19.76%, compared to revenues of -$111.9 million in the same quarter last year [2] - The stock has underperformed, losing about 36% since the beginning of the year, while the S&P 500 has gained 8.7% [3] Earnings Outlook - The future performance of Finance of America Companies will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $81 million, with a breakeven estimate of $314 million for the current fiscal year [7] Industry Context - The Financial - Mortgage & Related Services industry is currently ranked in the top 44% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-Q _________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40308 _________________________ FINANCE OF AMERICA COMPANIES INC. (Exact nam ...

[First Quarter 2024 Financial Highlights](index=1&type=section&id=First%20Quarter%202024%20Financial%20Highlights) [Key Highlights](index=1&type=section&id=First%20Quarter%202024%20Highlights) Finance of America reported a **$16 million net loss** from continuing operations for Q1 2024, showing improved adjusted operating performance Q1 2024 Key Financial Metrics | Metric | Value (in millions) | | :--- | :--- | | Net loss from continuing operations | $(16) | | Adjusted net loss | $(7) | | Adjusted EBITDA | $(1) | - This marks the **third consecutive quarter** of improved operating performance on an adjusted net basis, with the adjusted net loss narrowing significantly[1](index=1&type=chunk)[4](index=4&type=chunk) - The Retirement Solutions segment saw a **69% improvement** on a pre-tax basis compared to the prior quarter, driven by higher revenue margin and reduced expenses[4](index=4&type=chunk) - The CEO expressed confidence that the company is well-positioned to benefit from home price appreciation and a growing senior homeowner population, and is **on track to return to sustained profitability**[3](index=3&type=chunk) [Consolidated Financial Results](index=2&type=section&id=Consolidated%20Financial%20Results) [Financial Performance Summary](index=2&type=section&id=First%20Quarter%20Financial%20Summary%20of%20Continuing%20Operations) Total revenues for Q1 2024 were $75 million, a decrease from prior periods, though adjusted net loss improved by 65% to -$7 million Q1 2024 Financial Summary vs. Prior Periods (Continuing Operations) | ($ amounts in millions) | Q1'24 | Q4'23 | Q1'23 | | :--- | :--- | :--- | :--- | | Funded volume | $424 | $446 | $357 | | Total revenues | $75 | $276 | $141 | | Pre-tax loss from continuing operations | $(16) | $172 | $58 | | Net loss from continuing operations | $(16) | $171 | $55 | | Adjusted net loss | $(7) | $(20) | $(15) | | Adjusted EBITDA | $(1) | $(18) | $(12) | [Balance Sheet Highlights](index=2&type=section&id=Balance%20Sheet%20Highlights) Total assets increased 2% to $27.7 billion, driven by securitized loans, while total liabilities also grew 2%, leading to a 6% decrease in total equity Balance Sheet Summary (as of March 31, 2024) | ($ amounts in millions) | March 31, 2024 | December 31, 2023 | Variance (%) | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $48 | $46 | 4% | | Securitized loans held for investment | $26,458 | $25,821 | 2% | | Total assets | $27,684 | $27,108 | 2% | | Total liabilities | $27,428 | $26,835 | 2% | | Total equity | $256 | $272 | (6)% | - The increase in total assets and liabilities was primarily driven by **growth in securitized loans and corresponding HMBS obligations**, following two proprietary securitizations during the quarter[8](index=8&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Results) [Retirement Solutions](index=3&type=section&id=Retirement%20Solutions) The Retirement Solutions segment reported a pre-tax loss of $4 million, a 69% improvement, driven by a 12% revenue increase and improved margins Retirement Solutions Q1 2024 Performance | ($ amounts in millions) | Q1'24 | Q4'23 | Q1'23 | | :--- | :--- | :--- | :--- | | Funded volume | $424 | $446 | $357 | | Total revenue | $46 | $41 | $26 | | Pre-tax loss | $(4) | $(13) | $(9) | | Adjusted net income (loss) | $5 | $(2) | $2 | - Revenue margin improved to **10.8%** in Q1 2024 from **9.2%** in Q4 2023 as a result of spread tightening[13](index=13&type=chunk) - Funded volume in the Reverse business **decreased 3%** from the prior quarter, attributed to seasonality and the consolidation to a single loan origination system[13](index=13&type=chunk) [Portfolio Management](index=3&type=section&id=Portfolio%20Management) The Portfolio Management segment generated a pre-tax income of $14 million and adjusted net income of $6 million, primarily due to higher yields Portfolio Management Q1 2024 Performance | ($ amounts in millions) | Q1'24 | Q4'23 | Q1'23 | | :--- | :--- | :--- | :--- | | Assets under management | $27,357 | $26,773 | $26,327 | | Total revenue | $37 | $240 | $124 | | Pre-tax income | $14 | $217 | $99 | | Adjusted net income | $6 | $— | $4 | - The segment's adjusted net income of **$6 million** was an improvement over the prior quarter's break-even result, primarily due to increased yield on the Company's retained interests in securitized loans[14](index=14&type=chunk) - Net fair value adjustments during the quarter totaled **$7 million**, as changes in market interest rates were more than offset by credit spread and home price appreciation adjustments[14](index=14&type=chunk) [Detailed Financial Statements](index=4&type=section&id=Selected%20Financial%20Information) [Condensed Consolidated Statements of Financial Condition](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) The detailed balance sheet shows total assets of $27.68 billion and total liabilities of $27.43 billion, with total equity at $255.7 million Detailed Balance Sheet (in thousands) | | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **ASSETS** | | | | Cash and cash equivalents | $48,229 | $46,482 | | Loans held for investment, subject to HMBS related obligations | $18,050,772 | $17,548,763 | | Loans held for investment, subject to nonrecourse debt | $8,407,602 | $8,272,393 | | **TOTAL ASSETS** | **$27,683,568** | **$27,107,590** | | **LIABILITIES & EQUITY** | | | | HMBS related obligations | $17,827,060 | $17,353,720 | | Nonrecourse debt | $7,897,896 | $7,904,200 | | **TOTAL LIABILITIES** | **$27,427,845** | **$26,835,183** | | **TOTAL EQUITY** | **$255,723** | **$272,407** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q1 2024, total revenues were $74.7 million and total expenses $91.3 million, resulting in a pre-tax loss of $15.8 million from continuing operations Detailed Income Statement (in thousands) | | Q1'24 | Q4'23 | Q1'23 | | :--- | :--- | :--- | :--- | | TOTAL REVENUES | $74,682 | $275,732 | $140,855 | | TOTAL EXPENSES | $91,315 | $92,799 | $83,777 | | NET INCOME (LOSS) FROM CONTINUING OPERATIONS | $(15,780) | $171,361 | $55,482 | | NET LOSS FROM DISCONTINUED OPERATIONS | $(4,524) | $(6,698) | $(40,890) | | NET INCOME (LOSS) | $(20,304) | $164,663 | $14,592 | | NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST | $(7,538) | $61,361 | $3,054 | [Reconciliation of GAAP to Non-GAAP Measures](index=6&type=section&id=Reconciliation%20to%20GAAP) [Consolidated Reconciliation](index=6&type=section&id=Consolidated%20Reconciliation) The company reconciles its GAAP net loss of $16 million to a non-GAAP adjusted net loss of $7 million, further reconciling to an adjusted EBITDA loss of $1 million Reconciliation to Adjusted Net Loss and Adjusted EBITDA (Q1 2024, in millions) | | Amount | | :--- | :--- | | Net loss from continuing operations (GAAP) | $(16) | | Adjustments for: | | | Changes in fair value | $(9) | | Amortization and impairment of intangibles | $10 | | Share-based compensation | $3 | | Certain non-recurring costs | $2 | | Benefit for income taxes | $2 | | **Adjusted net loss (Non-GAAP)** | **$(7)** | | Adjustments for: | | | Benefit for income taxes | $(2) | | Depreciation | $— | | Interest expense on non-funding debt | $8 | | **Adjusted EBITDA (Non-GAAP)** | **$(1)** | Per Share Reconciliation (Q1 2024) | | Per Share Amount | | :--- | :--- | | Basic net loss per share from continuing operations (GAAP) | $(0.06) | | Adjusted loss per share (Non-GAAP) | $(0.03) | [Adjusted Net Income by Segment](index=7&type=section&id=Adjusted%20Net%20Income%20by%20Segment%20%28Continuing%20Operations%29) For Q1 2024, the total adjusted net loss of $7 million is broken down by segment, with Retirement Solutions and Portfolio Management contributing positive adjusted net income Q1 2024 Adjusted Net Income (Loss) by Segment (in millions) | Segment | Pre-tax income (loss) | Adjustments | Adjusted net income (loss) | | :--- | :--- | :--- | :--- | | Retirement Solutions | $(4) | $12 | $5 | | Portfolio Management | $14 | $(6) | $6 | | Corporate & Other | $(26) | $8 | $(18) | | **Total FOA** | **$(16)** | **$14** | **$(7)** | [Supplementary Information](index=9&type=section&id=Supplementary%20Information) [Forward-Looking Statements and Risk Factors](index=9&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to inherent uncertainties and numerous risk factors, including business transformation and regulatory compliance - The company is managing unique challenges presented by its **business transformation** from a diversified lending platform to a modern retirement solutions platform[29](index=29&type=chunk) - Key risks include the ability to **operate profitably**, respond to **interest rate changes**, manage **cyber risks**, obtain **sufficient capital and liquidity**, and **comply with extensive regulations**[29](index=29&type=chunk)[30](index=30&type=chunk) [Non-GAAP Financial Measures Definition](index=11&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like Adjusted Net Loss and Adjusted EBITDA to provide an additional view of performance, adjusting GAAP figures - **Adjusted Net Loss** is defined as net income from continuing operations adjusted for items like changes in fair value, amortization, share-based compensation, and certain non-recurring costs[32](index=32&type=chunk) - **Adjusted EBITDA** is defined as Adjusted Net Loss further adjusted for taxes, interest on non-funding debt, and depreciation[33](index=33&type=chunk) - A reconciliation of forward-looking non-GAAP guidance to GAAP measures is **not provided** due to the inherent difficulty in forecasting the adjusting items[37](index=37&type=chunk)

Wall Street expects a year-over-year increase in earnings on lower revenues when Finance of America Companies Inc. (FOA) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on May 6, 2024, might help the stock move higher if these key numbers are ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-40308 _________________________ FINANCE OF AMERICA COMPANIES INC. (Exact name of registrant as specified in ...