Finance of America Reports $29M Net Loss Amid Reverse Mortgage Growth

Finance of America Companies Inc. (FOA) experienced a 21% year-over-year increase in its reverse mortgage and home equity funding volume during the second quarter of 2026, reaching $730 million in funded volume for the period ending June 30. This growth occurred even as non-cash fair value adjustments within its portfolio business led to a net loss of $29 million from April through June. The Texas-based lender reported that its first-half 2026 volume totaled $1.33 billion, marking a 14% increase from $1.16 billion in the first half of 2025. For the second quarter, FOA reported $0.10 in basic earnings per share, equating to $1 million in net income attributable to Class A common shareholders. However, on a diluted basis, the company posted a loss of $1.28 per share, reflecting the impact of the aforementioned non-cash fair value adjustments. On an adjusted basis, FOA reported $0.84 in earnings per share, or $19 million in adjusted net income, representing a 53% year-over-year improvement. Adjusted EBITDA for the quarter stood at $35 million, and for the first half of 2026, it reached $79 million. CEO Graham Fleming stated in a company release that the second quarter of 2026 validated the company's ongoing operational improvements and investments, which are now contributing to a more robust and scalable business. He highlighted strengthening demand, enhanced conversion rates, improved sales productivity, and growth in proprietary products designed for older homeowners as key drivers. The company's retirement solutions segment, responsible for originating reverse mortgages and other home equity products, continued to be the primary engine of growth. Funded volume within this segment rose by 21% year over year to $730 million in the second quarter. Total revenue for the retirement solutions segment increased by 19% from the previous year to $74 million, with revenue margins remaining stable at approximately 10.1%. The segment reported a pretax income of $10 million for the quarter, which was flat compared to the same period in the prior year. Finance of America Companies Inc. is a financial services company that provides a range of lending and financial solutions, with a particular focus on retirement solutions and home equity products for seniors. The company's strategic focus on these products aims to address the financial needs of an aging population. The reported financial results indicate a mixed performance, with strong operational growth in its core lending business offset by accounting adjustments impacting its net income.