Finance of America’s Q3 adjusted EPS misses analyst estimates
FOA•Finance of America reported Q3 adjusted EPS of $0.28, below the $1.26 analyst estimate, and a $110 million net loss. Funded volume rose 24% year over year.
1. Quarterly results
Finance of America’s Q3 adjusted EPS was $0.28, missing the $1.26 consensus estimate. Adjusted net income was $6 million versus an estimated $24.90 million, while adjusted EBITDA was $17 million compared with an estimate of $45.81 million. The company reported a $110 million net loss, mainly attributed to $125 million in non-cash fair value changes.
2. Volume and outlook
Funded volume rose 24% year over year, driven by continued demand for home equity solutions. The company said higher benchmark rates reduced net origination gains and pressured revenue margin, and it expects margins to return to historical levels after product and pricing adjustments. It plans to pay down $60 million of senior secured notes in November 2026 and said it will continue taking action to normalize margins if rate volatility remains elevated.
