FOA’s loss in the third quarter is in stark contrast to the sharp increase in adjusted income

Adjusted net income rose to $33 million, or $1.33 per share, up 136% from the prior quarter and 120% higher than the same period a year ago.

For the first nine months of the year, Finance of America reported $131 million in net income from continuing operations and $60 million in adjusted net income.

“Origination performance remained robust, with funded volume of $603 million and submission volume of $887 million for the quarter, compared to $764 million in the prior-year period,” FOA President Kristen Sieffert said during the company’s earnings call Tuesday.

“At the end of October for the year 2025, we funded $1.97 billion in reverse mortgages, surpassing our entire 2024 production of $1.92 billion, and October submissions totaled $336 million, the highest month in three years,” she added.

Matthew Engel, the company’s chief financial officer, also shed some light on FOA’s performance in the third quarter of 2025.

“On a GAAP basis, the company reported a net loss of $29 million for the quarter as lower interest rates and tighter spreads were more than offset by softer home price appreciation projections that impacted the non-cash fair value of our residuals,” Engel said.

“Yet to date, the company remains significantly positive, reporting $131 million in pre-tax revenue for the first nine months of 2025,” he added. “Adjusted net income for the quarter was $33 million, or $1.33 per share, up 125% from the prior quarter and more than double the year-ago period.

“This improvement was due to higher margins on production and increased activity in the capital markets.”

The company also said it has repaid $85 million in higher-cost working capital facilities and agreed to repurchase the entirety of the company’s investments. Blackstone‘s equity interest, a step aimed at reducing interest costs and increasing financial flexibility.

Cash and cash equivalents rose to $110 million at the end of September, compared to $46 million three months earlier.

Graham A. Fleming, CEO of Finance of America, said the company’s performance reflects the growing demand for home equity solutions among older homeowners. “Adjusted net income increased more than fivefold compared to last year,” Fleming said in a statement.

Fleming told investors during the earnings call that “we see strong momentum at the top of the funnel with record lead generation, increased digital engagement and continued efficiency gains, all of which give us the confidence to deliver a 60% year-over-year increase in adjusted 2026 EPS guidance.”

The company’s Retirement Solutions segment reported $17 million in pretax profit and $20 million in adjusted net income for the third quarter, driven by higher volumes and improved margins.

The Portfolio Management segment recorded a pre-tax loss of $11 million due to negative fair value adjustments, partially offset by higher returns and capital markets activity.

During the quarter, FOA also announced a partnership with Better.com to expand its product offerings and leverage technology to serve the senior population.