Finance of America Companies reported second-quarter adjusted earnings per share of $0.55, missing the consensus estimate of $0.60. Revenue reached $177.38 million, well above the forecasted $97.05 million, driven by strong loan origination volumes and fair value gains. Net income from continuing operations totaled $80 million, while adjusted net income stood at $14 million, both reflecting significant year-over-year improvements compared to a net loss in Q2 2024. Post-quarter actions included repayment of a higher-cost working capital facility and an agreement to repurchase Blackstone’s equity stake, steps expected to lower interest expense and bolster financial flexibility. Management reaffirmed prior guidance for annual funded loan volumes between $2.4 billion and $2.7 billion and non-GAAP diluted EPS of $2.60 to $3. Key investor considerations include expense discipline, sustainability of fair value gains, and continued market penetration in the reverse mortgage space, where only 2% of eligible seniors currently participate. GAAP expenses increased 14% to $95 million, reflecting scaling costs that pressured non-GAAP margins. The company’s price-to-earnings ratio stands at 4.38, with a price-to-sales ratio of 0.21. A high enterprise-value-to-operating-cash-flow multiple of 134.92 indicates investor willingness to pay for cash flow potential, while an earnings yield of 22.85% highlights attractive returns for shareholders. The Retirement Solutions segment generated $62 million in revenue, a 13% increase year over year, supported by a 35% rise in funded loan volume to $602 million. Portfolio Management revenue soared 217% to reflect favorable fair value adjustments on retained securitized interests and higher accreted yield, lifting assets under management to $29.9 billion, up 8%. Adjusted EBITDA climbed to $30 million, doubling the prior estimate of $10 million and marking a 200% increase over Q2 2024.
Finance of America Companies reported second-quarter adjusted earnings per share of $0.55, missing the consensus estimate of $0.60. Revenue reached $177.38 million, well above the forecasted $97.05 million, driven by strong loan origination volumes and fair value gains. Net income from continuing operations totaled $80 million, while adjusted net income stood at $14 million, both reflecting significant year-over-year improvements compared to a net loss in Q2 2024. Post-quarter actions included repayment of a higher-cost working capital facility and an agreement to repurchase Blackstone’s equity stake, steps expected to lower interest expense and bolster financial flexibility. Management reaffirmed prior guidance for annual funded loan volumes between $2.4 billion and $2.7 billion and non-GAAP diluted EPS of $2.60 to $3. Key investor considerations include expense discipline, sustainability of fair value gains, and continued market penetration in the reverse mortgage space, where only 2% of eligible seniors currently participate. GAAP expenses increased 14% to $95 million, reflecting scaling costs that pressured non-GAAP margins. The company’s price-to-earnings ratio stands at 4.38, with a price-to-sales ratio of 0.21. A high enterprise-value-to-operating-cash-flow multiple of 134.92 indicates investor willingness to pay for cash flow potential, while an earnings yield of 22.85% highlights attractive returns for shareholders. The Retirement Solutions segment generated $62 million in revenue, a 13% increase year over year, supported by a 35% rise in funded loan volume to $602 million. Portfolio Management revenue soared 217% to reflect favorable fair value adjustments on retained securitized interests and higher accreted yield, lifting assets under management to $29.9 billion, up 8%. Adjusted EBITDA climbed to $30 million, doubling the prior estimate of $10 million and marking a 200% increase over Q2 2024.