Finance Of America Companies Inc ((FOA)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Finance Of America Companies Inc. recently held its third-quarter 2025 earnings call, revealing a generally positive sentiment despite some challenges. The company demonstrated strong financial performance with notable improvements in adjusted net income and EBITDA. This success was supported by record-breaking securitization and strategic partnerships. However, the company faced a GAAP net loss for the quarter, attributed to external market factors, and is expected to meet the lower end of its full-year guidance.
Significant Sequential Improvement in Adjusted Net Income
The earnings call highlighted a significant sequential improvement in adjusted net income for Q3 2025, which reached $33 million or $1.33 per share. This figure more than doubled from the same period last year, driven by increasing revenues across the business and stronger origination fee income.
Record-Breaking Securitization
In September 2025, Finance Of America closed the largest proprietary securitization in its history, with a nearly $2 billion issuance. This move has enhanced the company’s liquidity and balance sheet flexibility, marking a significant milestone in its financial strategy.
Strong Origination and Submission Volumes
The company reported robust origination and submission volumes, with funded volume reaching $603 million and submission volume hitting $887 million for Q3 2025. Notably, reverse mortgages surpassed the entire 2024 production by the end of October 2025, showcasing strong growth in this segment.
Strategic Partnership and Technological Advancements
Finance Of America entered a strategic partnership with Better.com, advancing its digital transformation efforts. This collaboration resulted in a 32% increase in monthly submission volume and a 206% increase in leads generated through email nurture quarter-over-quarter, highlighting the impact of technological advancements on business growth.
Robust Adjusted EBITDA Growth
The company generated $114 million in adjusted EBITDA for the first nine months of 2025, marking a 171% improvement compared to the previous year. This robust growth underscores the company’s operational efficiency and strategic focus on profitability.
GAAP Net Loss in Q3 2025
Despite the positive financial indicators, Finance Of America reported a GAAP net loss of $29 million for Q3 2025. This loss was primarily due to lower interest rates and softer home price appreciation projections, which affected the noncash fair value of residuals.
Slightly Lower End of Full Year Guidance
The company anticipates tracking toward the lower end of its previously stated volume range of $2.4 billion to $2.7 billion for 2025. This cautious outlook reflects the external market challenges impacting the company’s financial performance.
Forward-Looking Guidance
During the earnings call, Finance Of America provided forward-looking guidance, reporting a year-to-date GAAP net income of $131 million, translating to $5.78 per basic share. The company reaffirmed its full-year 2025 adjusted EPS target of $2.60 to $3 and anticipates a 20% to 25% volume growth year-over-year in 2026. Additionally, adjusted EPS guidance is expected to increase to $4.25 to $4.75 per share, indicating a positive outlook for future growth.
In summary, Finance Of America Companies Inc.’s third-quarter 2025 earnings call conveyed a positive sentiment with strong financial performance, despite some challenges. Key takeaways include significant improvements in adjusted net income, record-breaking securitization, and strategic partnerships driving growth. While the company faces a GAAP net loss for the quarter, its forward-looking guidance suggests continued growth and profitability in the coming years.