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 reaching $603 million and submission volume reaching $887 million for the quarter, compared to $764 million in the same period last year,” FOA President Kristen Sieffert said during the company’s earnings call on Tuesday.
“By 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 Q3 2025 performance.
“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 impacting the non-cash fair value of our residuals,” Engel said.
“Year to date, the company is still significantly positive, reporting $131 million of pretax income for the first nine months of 2025, he added. “Adjusted net income for the quarter totaled $33 million, or $1.33 per share, a 125% increase from the prior quarter and more than double the level from the same period last year.
“This improvement was driven by higher origination margins and increased capital markets activity.”
The company also said it repaid $85 million in higher-cost working capital facilities and agreed to repurchase the entirety of Blackstone’s equity stake, a move aimed at reducing interest expenses and increasing financial flexibility.
Cash and cash equivalents rose to $110 million at the end of September, up from $46 million three months earlier.
Finance of America CEO Graham A. Fleming said the company’s performance reflects growing demand for home equity solutions among older homeowners. “Adjusted net income has increased more than five-fold compared to last year,” Fleming said in a statement.
Fleming told investors during the earnings call that “we are seeing strong momentum at the top of the funnel with record lead generation, higher digital engagement and continued efficiency gains, all of which give us confidence to achieve a 60% year-over-year increase in 2026 adjusted EPS guidance.”
The company’s Retirement Solutions segment reported $17 million in pretax income and $20 million in adjusted net income for the third quarter, driven by higher volumes and improved margins.
Its Portfolio Management segment posted an $11 million pretax loss due to negative fair value adjustments, partly offset by stronger yields 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 demographic.
