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

Finance of America Companies (NYSE:FOA) announced its earnings results on Tuesday. The company reported $0.28 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.26 by ($0.98), FiscalAI reports. The company had revenue of $89.00 million for the quarter, compared to the consensus estimate 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 Price Performance

Shares of FOA traded down $0.25 during trading hours on Tuesday, hitting $10.70. The stock had a trading volume of 109,040 shares, compared to its average volume of 74,417. The stock has a market capitalization of $185.12 million, a price-to-earnings ratio of -3.55 and a beta of 1.68. 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 company’s fifty day moving average is $14.01 and its two-hundred day moving average is $19.38. Finance of America Companies has a 52 week low of $10.04 and a 52 week high of $29.79.

Insider Buying and Selling

In other Finance of America Companies news, CIO Jeremy Prahm sold 6,000 shares of the business’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $13.20, for a total value of $79,200.00. Following the completion of the transaction, the executive directly owned 155,856 shares of the company’s stock, valued at approximately $2,057,299.20. The trade was a 3.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 43,110 shares of company stock valued at $729,971 over the last quarter. 35.37% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

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

Finance of America Companies Company Profile

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.