Finance of America panies (US:FOA)2025-11-13 21:10Financial Performance - The company reported a net loss of $29,857 thousand for the three months ended September 30, 2025, compared to a net income of $203,748 thousand for the same period in 2024[20]. - Basic earnings per share from continuing operations for the three months ended September 30, 2025, was $(0.98), a decrease from $8.48 in the same period of 2024[19]. - Total revenues for the three months ended September 30, 2025, were $80,848 thousand, down from $290,073 thousand in the same period of 2024, a decline of approximately 72.06%[18]. - Net income for the nine months ended September 30, 2025, was $124.966 million, a decrease from $178.320 million in the same period of 2024, representing a decline of approximately 30%[26]. - For the nine months ended September 30, 2025, total revenues reached $423,919,000, with net income before taxes of $135,093,000[118]. - The company reported net origination gains of $162,029,000 for the nine months ended September 30, 2025[118]. - Total expenses for the three months ended September 30, 2025, were $104,594,000, with salaries and benefits accounting for $37,245,000[116]. - Total expenses for the period were $256.670 million, with salaries, benefits, and related expenses amounting to $105.159 million[119]. Assets and Liabilities - Total assets increased to $30,656,996 thousand as of September 30, 2025, up from $29,156,490 thousand at December 31, 2024, representing a growth of approximately 5.15%[14]. - Total liabilities rose to $30,291,165 thousand as of September 30, 2025, compared to $28,840,826 thousand at December 31, 2024, marking an increase of approximately 5.01%[14]. - The company’s total equity increased to $365,831 thousand as of September 30, 2025, compared to $315,664 thousand at December 31, 2024, reflecting a growth of approximately 15.87%[14]. - Nonrecourse debt at fair value increased to $10,155,869 thousand as of September 30, 2025, from $8,954,068 thousand at December 31, 2024, indicating a rise of approximately 13.43%[14]. - Total cash and cash equivalents and restricted cash at the end of the period was $402.386 million, up from $220.363 million in the previous year, reflecting an increase of approximately 82%[26]. Operational Metrics - Interest income for the three months ended September 30, 2025, was $482,132,000, while interest expense was $404,031,000, resulting in a net portfolio interest income of $78,101,000[116]. - The company reported a total of 9,925,802 Class A shares outstanding as of September 30, 2024, with an additional 13,185,955 LLC units[22]. - The company executed a cancellation of shares to fund employee tax withholdings amounting to $(178,080,000) during the reporting period[24]. - The company reported purchases and originations of loans held for investment of $(2.477) billion for the nine months ended September 30, 2025, compared to $(2.061) billion in 2024, an increase of approximately 20%[26]. - The company reported a total gain included in earnings of $1,452,839 thousand for the nine months ended September 30, 2024, compared to a gain of $541,007 thousand for the three months ended September 30, 2024[72]. Market and Economic Factors - The Company is focused on expanding its core retirement solutions business, leveraging demographic and economic trends to enhance its home equity-based financing solutions[155]. - The Company is monitoring various economic factors, including interest rates and housing market trends, which significantly impact loan origination volumes and overall financial performance[164]. - The Company has streamlined its marketing and originations operations by transitioning sales teams onto a unified loan origination system, enhancing efficiency and brand recognition[157]. Compliance and Legal Matters - The Company was in compliance with all financial covenants as of September 30, 2025[83]. - Legal expenses for the three months ended September 30, 2025, were $0.5 million, compared to $0.7 million for the same period in 2024[99]. - The Company has settled an individual arbitration claim for a minimal amount but is defending a representative claim under the California Private Attorneys General Act (PAGA)[98]. Adjusted Financial Metrics - Adjusted net income for the nine months ended September 30, 2025, decreased by $2.6 million or 14.9% due to cost-cutting initiatives[208]. - Adjusted net income is utilized by management to assess underlying key drivers and operational performance of continuing operations[210]. - Non-GAAP measures, including adjusted net income and adjusted EBITDA, should not be considered as alternatives to U.S. GAAP measures[206].