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 ...

PLANO, Texas--(BUSINESS WIRE)--Finance of America Companies Inc. (“Finance of America” or the “Company”) (NYSE: FOA), a modern retirement solutions platform, reported financial results for the quarter and year ended December 31, 2023. Fourth Quarter and Full Year 2023 Highlights Net income from continuing operations for the fourth quarter of $171 million or $0.72 basic earnings per share primarily due to non-cash, positive fair value changes on long-term assets and liabilities combined with improved resu ...

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 September 30, 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 ...