Finance of America Companies (NYSE:FOA) Issues Earnings Results, Misses Estimates By $0.98 EPS

Finance of America Companies (NYSE:FOA) released its quarterly earnings data on Tuesday. The company reported $0.28 EPS for the quarter, missing analysts’ consensus estimates of $1.26 by ($0.98), FiscalAI reports. The firm had revenue of $89.00 million during the quarter, compared to analyst estimates of $132.34 million. Finance of America Companies had a positive return on equity of 28.39% and a negative net margin of 0.10%.

Here are the key takeaways from Finance of America Companies’ conference call:

• Funded volume increased 24% year over year to $748 million in Q3, supported by growth across HECM, HomeSafe First, and HomeSafe Second products. Management expects 2027 funded volume of $3.1 billion to $3.4 billion, citing retirement demographics and continued product expansion.
• Retail productivity improved substantially, with production per loan officer rising more than 40% year over year to approximately $1.2 million per month. Digital initiatives also lifted prequalification starts and opportunities while reducing lead-to-application time.
• Higher interest rates compressed revenue margins and contributed to a $130 million GAAP pretax loss, primarily through non-cash fair-value adjustments. Retirement Solutions revenue margin fell to 9% from 11.3% a year earlier, and Q4 adjusted earnings are expected to be similar to Q3.
• The company withdrew its full-year 2026 adjusted EPS guidance of $4.50–$5.00 because margin pressure and the time required for repricing changes to flow through the pipeline will weigh on results.
• Management plans to repay $60 million of senior secured notes and extend approximately $90 million of remaining debt to November 2027. It expects cash generation from securitization activity and potential HECM MSR financing to support repayment, after which share buybacks or dividends may become possible.

Finance of America Companies Stock Performance

Shares of NYSE FOA traded down $0.25 during trading hours on Tuesday, hitting $10.70. 109,040 shares of the stock were exchanged, compared to its average volume of 74,417. Finance of America Companies has a one year low of $10.04 and a one year high of $29.79. The company’s 50 day moving average is $14.01 and its 200 day moving average is $19.38. The company has a debt-to-equity ratio of 60.78, a current ratio of 3.02 and a quick ratio of 3.02. The firm has a market capitalization of $185.12 million, a P/E ratio of -3.55 and a beta of 1.68.

Analyst Ratings Changes

Several analysts have commented on FOA shares. Alliance Global Partners started coverage on shares of Finance of America Companies in a research report on Wednesday, July 22nd. They issued a “buy” rating and a $30.00 target price for the company. Zacks Research downgraded shares of Finance of America Companies from a “hold” rating to a “strong sell” rating in a report on Tuesday, August 11th. Weiss Ratings lowered shares of Finance of America Companies from a “sell (d+)” rating to a “sell (d)” rating in a research note on Tuesday, August 11th. Wall Street Zen raised shares of Finance of America Companies from a “sell” rating to a “hold” rating in a research note on Saturday, October 3rd. Finally, B. Riley Financial reiterated a “buy” rating and issued a $32.00 price objective (up from $25.00) on shares of Finance of America Companies in a report on Wednesday, August 5th. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Finance of America Companies presently has a consensus rating of “Hold” and a consensus target price of $30.50.

Insider Transactions at Finance of America Companies

In other Finance of America Companies news, CIO Jeremy Prahm sold 5,610 shares of the company’s stock in a transaction dated Monday, October 19th. The shares were sold at an average price of $10.74, for a total transaction of $60,251.40. Following the completion of the sale, the executive directly owned 150,246 shares in the company, valued at $1,613,642.04. This represents a 3.60% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 43,110 shares of company stock worth $729,971 in the last three months. 35.37% of the stock is owned by corporate insiders.

About Finance of America Companies

Finance of America Companies Inc (NYSE:FOA) is a financial services company focused on helping homeowners access and manage home equity. Its primary business is conducted through Finance of America Reverse, which provides reverse mortgage products and related services to older homeowners.

The company offers federally insured Home Equity Conversion Mortgages (HECMs), proprietary reverse mortgage products and reverse mortgage refinancing solutions. These products generally allow eligible homeowners to convert a portion of their home equity into funds while continuing to live in their homes, subject to applicable loan terms, taxes, insurance and maintenance requirements.