Second Quarter 2026
Filed Aug 4, 2026alphai · Earnings readFOA · Second Quarter 2026 · ended June 30, 2026
Finance of America Reports Second Quarter 2026 Results
→Mixed quarter
Funded volume, Retirement Solutions revenue, adjusted net income, and Adjusted EBITDA increased year over year, but consolidated total revenues declined 65%, the Company recorded a $29 million net loss from continuing operations, and Portfolio Management recorded a $26 million pre-tax loss.
Revenue
$62 million
(65)% y/y · (48)% q/q
Retirement Solutions
$74 million
19% y/y · 10% q/q
EPS · GAAP
$(1.28)
(160)% y/y · (245)% q/q
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Funded volumeother | $730 million | 22% | 21% |
| Total revenuesGAAP | $62 million | (48)% | (65)% |
| Total expenses and other, netGAAP | $134 million | 60% | 41% |
| Pre-tax income (loss) from continuing operationsGAAP | $(71) million | (297)% | (187)% |
| Net income (loss) from continuing operationsGAAP | $(29) million | (183)% | (136)% |
| Adjusted net incomenon-GAAP | $19 million | (27)% | 36% |
| Adjusted EBITDAnon-GAAP | $35 million | (20)% | 17% |
| Basic earnings per shareGAAP | $0.10 | (95)% | (97)% |
| Diluted earnings (loss) per shareGAAP | $(1.28) | (245)% | (160)% |
| Adjusted earnings per sharenon-GAAP | $0.84 | (24)% | 53% |
| YTD 2026 funded volumeother | $1,326 million | – | 14% |
| YTD 2026 total revenuesGAAP | $183 million | – | (47)% |
| YTD 2026 total expenses and other, netGAAP | $217 million | – | 21% |
| YTD 2026 pre-tax income (loss) from continuing operationsGAAP | $(35) million | – | (121)% |
| YTD 2026 net income (loss) from continuing operationsGAAP | $6 million | – | (96)% |
| YTD 2026 adjusted net incomenon-GAAP | $45 million | – | 67% |
| YTD 2026 Adjusted EBITDAnon-GAAP | $79 million | – | 34% |
| YTD 2026 basic earnings per shareGAAP | $1.99 | – | (69)% |
| YTD 2026 diluted earnings (loss) per shareGAAP | $0.41 | – | (91)% |
| YTD 2026 adjusted earnings per sharenon-GAAP | $1.94 | – | 81% |
| Net portfolio interest incomeGAAP | $54,915 (in thousands) | – | – |
| Net origination gainsGAAP | $66,576 (in thousands) | – | – |
| Gains on securitization of HECM tails, netGAAP | $13,620 (in thousands) | – | – |
| Fair value changes from model amortizationGAAP | $(36,199) (in thousands) | – | – |
| Fair value changes from market inputs or model assumptionsGAAP | $(31,543) (in thousands) | – | – |
| Net fair value changes on loans and related obligationsGAAP | $12,454 (in thousands) | – | – |
| Fee incomeGAAP | $7,454 (in thousands) | – | – |
| Non-funding interest expense, netGAAP | $(12,342) (in thousands) | – | – |
| Total expensesGAAP | $106,089 (in thousands) | – | – |
| Salaries, benefits, and related expensesGAAP | $42,267 (in thousands) | – | – |
| Loan production and portfolio related expensesGAAP | $15,034 (in thousands) | – | – |
| Loan servicing expensesGAAP | $7,743 (in thousands) | – | – |
| Marketing and advertising expensesGAAP | $17,214 (in thousands) | – | – |
| Amortization and depreciationGAAP | $9,929 (in thousands) | – | – |
| General and administrative expensesGAAP | $13,902 (in thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Retirement SolutionsFunded volume increased as a result of growing demand for home equity solutions, while revenue margins were relatively stable at 10.1%. | $74 million | 10% | 19% |
| Portfolio ManagementThe segment recorded negative non-cash fair value adjustments on retained interests in securitizations, partially offset by higher accreted yield on the Company's residual interests. | $1 million | (98)% | (99)% |
What drove it
- Funded volume increased 21% year over year to $730 million, reflecting growing demand for home equity solutions.
- Retirement Solutions revenue increased 19% year over year to $74 million as funded volume increased and revenue margins were relatively stable at 10.1%.
- Retirement Solutions first-half pre-tax income increased to $20 million from $14 million, while first-half adjusted net income increased to $29 million from $24 million.
- Portfolio Management first-half adjusted net income increased to $46 million from $37 million, reflecting improved portfolio economics and higher accreted yield.
- The Company completed the acquisition of the Onity HECM servicing portfolio in June 2026.
Concerns
- Consolidated total revenues declined 65% year over year and 48% sequentially to $62 million.
- Net income from continuing operations was a $29 million loss, compared with $80 million of income in the second quarter of 2025 and $35 million of income in the first quarter of 2026.
- Portfolio Management generated $1 million of revenue and a $26 million pre-tax loss during the quarter.
- The Portfolio Management pre-tax loss reflected negative non-cash fair value adjustments on retained interests in securitizations.
- Total equity declined 7% from March 31, 2026 and 14% from June 30, 2025 to $407 million.
What to watch
- Whether growth in home equity demand, conversion, sales productivity, and proprietary products continues to support Retirement Solutions funded volume and revenue.
- Portfolio Management fair value changes from market inputs or model assumptions and their effect on consolidated revenue and GAAP profitability.
- The effect of the Onity HECM servicing portfolio acquisition on securitized loans held for investment, assets, liabilities, and equity.
- Whether adjusted earnings per share and Adjusted EBITDA recover from their sequential declines.
Balance sheet and cash flow
- Cash and cash equivalents were $85 million as of June 30, 2026, compared with $108 million as of March 31, 2026 and $46 million as of June 30, 2025.
- Securitized loans held for investment (HMBS & nonrecourse) were $35,973 million as of June 30, 2026, compared with $30,090 million as of March 31, 2026 and $28,747 million as of June 30, 2025.
- Total assets were $37,317 million as of June 30, 2026, compared with $31,328 million as of March 31, 2026 and $30,147 million as of June 30, 2025.
- Total liabilities were $36,910 million as of June 30, 2026, compared with $30,890 million as of March 31, 2026 and $29,674 million as of June 30, 2025.
- Total equity was $407 million as of June 30, 2026, compared with $438 million as of March 31, 2026 and $473 million as of June 30, 2025.
- Tangible equity was $246 million as of June 30, 2026, compared with $268 million as of March 31, 2026 and $275 million as of June 30, 2025.
- HMBS related obligations, at fair value, were $24,717,687 (in thousands) as of June 30, 2026, compared with $19,087,650 (in thousands) as of March 31, 2026.
- Nonrecourse debt, at fair value, was $10,641,380 (in thousands) as of June 30, 2026, compared with $10,450,834 (in thousands) as of March 31, 2026.
- Other financing lines of credit were $1,054,766 (in thousands) as of June 30, 2026, compared with $899,338 (in thousands) as of March 31, 2026.
- Notes payable were $347,029 (in thousands) as of June 30, 2026, compared with $317,811 (in thousands) as of March 31, 2026.
- Total equity attributable to common stock was $297 million, or $33.20 book value per common share, as of June 30, 2026.
- Tangible equity was $246 million, or $13.31 per share, as of June 30, 2026.
Analysis
Finance of America delivered higher origination activity in the second quarter, with funded volume of $730 million, up 21% year over year and 22% from the first quarter. Retirement Solutions revenue rose 19% year over year to $74 million, with revenue margins described as relatively stable at 10.1%. The segment reported $10 million of pre-tax income and $15 million of adjusted net income, while first-half pre-tax income and adjusted net income both increased from the prior-year period.
Management, verbatim
The second quarter of 2026 reinforced what we've been communicating over the past several quarters: that the operational improvements and investments we have made are now translating into a stronger, more scalable business. Demand is strengthening, conversion and sales productivity are improving, and our proprietary products are expanding the ways we can serve older homeowners. We believe Finance of America is well positioned to capture the long-term opportunity in home equity and create durable shareholder value.
Graham A. Fleming, Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance
- Prior-period outlook for comparison
- Consolidated gross margin
- Consolidated operating income
- Income tax expense or benefit and tax rate
- Operating cash flow
- Free cash flow
- Share repurchases
- Dividend declaration or payment
- Capital expenditure figures
- Full condensed consolidated statement of operations below total expenses, including the detailed reconciliation from total expenses to pre-tax income and net income
- Reconciliation tables for adjusted net income, Adjusted EBITDA, adjusted earnings per share, and tangible equity
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.