Key Highlights

  • Funded Volume rose 24% to USD 748 million, and year-to-date funded volume rose 17% to USD 2,074 million.
  • Net loss was USD 110 million, or USD 5.24 per share, mainly from USD 125 million in Fair Value changes.
  • Adjusted Net Income was USD 6 million, or USD 0.28 per share, and adjusted EBITDA was USD 17 million.
  • Cash rose USD 33 million to USD 118 million, and Book Value per common share was USD 28.08.

Volume Growth, Fair Value Loss

Finance of America Companies Inc. (NYSE:FOA), a Plano, Texas provider of home equity-based financing for retirement, reported third-quarter 2026 funded volume of USD 748 million, a 24% increase from a year earlier. Year-to-date funded volume rose 17% to USD 2,074 million.

The net loss was USD 110 million, or USD 5.24 per basic share, primarily the result of USD 125 million of non-cash fair value adjustments. For the first nine months the net loss was USD 103 million, or USD 3.49 per basic share. The nine-month result means the company earned USD 7 million over the first six months before the third-quarter loss.

Analyst estimates were EPS of USD 1.26 against reported EPS of USD 0.28.

Adjusted Earnings

Adjusted net income was USD 6 million, or USD 0.28 per share, for the quarter, primarily reflecting lower net origination gains because of higher benchmark rates. Adjusted EBITDA was USD 17 million. For the first nine months adjusted net income was USD 51 million, or USD 2.26 per share.

The company said it implemented product and pricing adjustments to address the effect of higher interest rates and expects Margin to return to historical levels.

Cash, Capital and Notes Paydown

Cash and cash equivalents increased by USD 33 million during the quarter, or 39% from June 30, to USD 118 million at September 30, 2026, reflecting cash generation from originations and Capital Markets activity. The company expects to complete a USD 60 million paydown of senior secured notes in November 2026.

Total Equity was USD 307 million, with total equity attributable to common stock of USD 259 million, equal to USD 28.08 of book value per common share. Securitized loans held for investment, total Assets and total liabilities were relatively stable from June 30, 2026.

Total Revenue was USD 67 million, as funded volume growth was offset by pressure on revenue margin from higher benchmark rates, and year-to-date revenue increased 14% to USD 208 million from USD 182 million. Assets under management increased 23% year over year to USD 37,426 million, helped by new originations and the Acquisition of the Onity HECM servicing portfolio in June 2026. Portfolio Management recorded a pre-tax loss of USD 138 million on negative non-cash fair value adjustments on retained interests in securitizations.

Portfolio Management Segment

The Portfolio Management segment primarily earns net interest income and fair value changes on portfolio assets, which the company monetizes through securitization, sale or other financing. Fair value changes in that portfolio are the main reason the GAAP result diverged from the adjusted result in the quarter. Funded volume growth, the margin recovery following pricing changes and fair value movements are the items to follow.