Finance of America panies (FOA) - 2025 Q1 - Quarterly Results

Financial Performance - Basic earnings per share for Q1 2025 were $3.17, resulting in $80 million of net income from continuing operations[1] - Adjusted earnings per share for the quarter were $0.52, with adjusted net income of $13 million, reflecting a $20 million improvement compared to Q1 2024[4] - Total revenues for the quarter were $166 million, a 121% increase compared to $75 million in Q1 2024[5] - Net income from continuing operations for Q1'25 was $79.8 million, compared to a loss of $142.6 million in Q4'24 and a loss of $15.8 million in Q1'24[16] - Basic earnings per share from continuing operations for Q1'25 was $3.17, a significant improvement from a loss of $5.95 in Q4'24 and a loss of $0.58 in Q1'24[17] - Adjusted net income for Q1'25 was $13 million, up from $5 million in Q4'24 and a loss of $7 million in Q1'24[17] - Total revenues for Q1'25 were $165.7 million, compared to a loss of $49.4 million in Q4'24 and $74.7 million in Q1'24[16] Equity and Assets - Total equity increased to $395 million as of March 31, 2025, representing a 25% growth from $316 million at the end of 2024[6] - Tangible equity grew by 89% from $99 million at the end of 2024 to $187 million as of March 31, 2025[6] - Total equity increased to $395 million in Q1'25 from $316 million in Q4'24 and $256 million in Q1'24[17] Segment Performance - The Retirement Solutions segment reported a pre-tax income of $3 million, with adjusted net income of $9 million, marking a 200% increase in pre-tax income compared to Q4 2024[11] - The Portfolio Management segment achieved a pre-tax income of $105 million, an increase from a loss of $168 million in Q4 2024, with adjusted net income of $20 million[12] Operational Metrics - Funded volume reached $561 million in Q1 2025, a 32% increase from $424 million in Q1 2024, exceeding the high end of the guidance range[4] - Adjusted EBITDA for the quarter was $29 million, a 61% increase from $18 million in Q4 2024[5] - Adjusted EBITDA for Q1'25 was $29 million, compared to $18 million in Q4'24[17] - Portfolio interest income for Q1'25 was $480.6 million, an increase from $473.2 million in Q4'24 and $464.0 million in Q1'24[16] Changes and Adjustments - The company reported net fair value changes on loans and related obligations of $103.8 million in Q1'25, compared to a loss of $169.1 million in Q4'24 and a gain of $6.3 million in Q1'24[16] - The company experienced a net loss from discontinued operations of $4.8 million in Q1'25, compared to no loss in Q4'24 and a loss of $4.5 million in Q1'24[16] - The company revised its definitions of adjusted net income (loss), adjusted EBITDA, and adjusted earnings (loss) per share to include all equity-based compensation starting from the third quarter of 2024[21] Company Strategy and Initiatives - The company launched a new brand platform, 'A Better Way with FOA,' along with a national advertising campaign to increase awareness of reverse mortgages[4] - The company is a leading provider of home equity-based financing solutions, focusing on optimizing the distribution of originated loans to investors[24] - Management considers adjusted earnings (loss) per share important for evaluating the company's overall performance[46] Conference and Reporting - The company will host a conference call on May 6, 2025, to discuss the results for the first quarter ended March 31, 2025[22]