Finance of America panies (FOA) - 2025 Q3 - Quarterly Results

Financial Performance - Basic earnings per share for the first nine months of 2025 were $5.78, with net income from continuing operations totaling $131 million[1] - Adjusted net income for Q3 2025 was $33 million, or $1.33 in adjusted earnings per share, representing a 136% improvement compared to Q2 2025 and a 120% increase year over year[4] - Year-to-date (YTD) 2025 net income from continuing operations was $131 million, down from $183 million in YTD 2024, indicating a declining trend[19] - The company reported a net loss attributable to controlling interest of $9.5 million in Q3'25, compared to a profit of $84.2 million in Q3'24[19] - Net income from continuing operations for Q3'25 was a loss of $29.9 million, compared to a profit of $203.7 million in Q3'24, indicating a substantial year-over-year decline[16] - Basic earnings per share from continuing operations for Q3'25 was $(0.98), down from $8.48 in Q3'24, highlighting a significant drop in profitability[18] - The diluted earnings per share from continuing operations for Q3'25 was $(1.22), compared to $7.50 in Q3'24, reflecting a significant decrease in earnings power[18] Revenue and Expenses - Total revenues for Q3 2025 were $81 million, a 54% decrease from Q2 2025 and a 72% decrease from Q3 2024[5] - Total revenues for Q3'25 were $80.8 million, a significant decrease from $290.1 million in Q3'24, reflecting a decline in other income[16] - Total expenses for Q3'25 increased to $104.6 million from $80.3 million in Q3'24, driven by higher salaries and loan production expenses[16] Cash and Equity - Cash and cash equivalents increased from $46 million as of June 30, 2025, to $110 million as of September 30, 2025, a 139% increase[6] - Total equity decreased from $473 million as of June 30, 2025, to $366 million as of September 30, 2025, primarily due to the repurchase of shares from Blackstone[6] - The company’s total equity as of September 30, 2025, was $366 million, down from $473 million as of June 30, 2025, indicating a reduction in shareholder equity[19] Segment Performance - The Retirement Solutions segment recognized pre-tax income of $17 million in Q3 2025, driven by increased volumes and improved margins[8] - For the three months ended September 30, 2025, adjusted net income for the Retirement Solutions segment was $20 million, and for the Portfolio Management segment, it was $30 million, while Corporate & Other reported a loss of $17 million[21] - For the nine months ended September 30, 2025, the total adjusted net income was $60 million, with the Retirement Solutions segment contributing $44 million and Portfolio Management contributing $66 million[24] Strategic Initiatives - A strategic partnership was announced with Better.com to expand product offerings and better serve the senior demographic[4] Adjusted Metrics - 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[38] - Adjusted EBITDA is calculated by adjusting net income (loss) from continuing operations for various factors, including income taxes and non-recurring costs, to assess the underlying operational performance[40] - Adjusted earnings (loss) per share is derived from adjusted net income (loss) and considers interest expense on exchangeable senior secured notes, providing a measure of profitability on a per-share basis[44] - Management emphasizes the importance of adjusted metrics like adjusted net income (loss) and adjusted EBITDA for evaluating the company's overall performance and comparability to peers[42] - The company cautions users not to place undue reliance on non-GAAP financial measures, emphasizing the importance of U.S. GAAP results[37] Conference Call - The company will host a conference call on November 4, 2025, to discuss the results for the third quarter ended September 30, 2025[26]