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Finance of America Companies
(NYSE:FOA)
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Rating:55Neutral
Price Target:
$22.50
▼(-1.53% Downside)
Action:Reiterated
Date:08/08/26
FOA scores mid-range: the strongest input is the earnings call showing improving operating metrics, reaffirmed guidance, and better liquidity actions, but this is offset by weak underlying financial quality signals—especially multiple years of negative operating/free cash flow and historically very high leverage. Technicals are also soft in the near term (below 20/50-day averages with negative MACD), while the low P/E provides some valuation support.
Positive Factors
Fundings & Origination Growth
Sustained funded-volume and submissions growth reflects durable demand and improving conversion across retail and proprietary channels. Higher funded volumes and a larger pipeline support recurring gain-on-sale and servicing opportunities, underpinning revenue stability and scalable origination economics over coming quarters.
Negative Factors
Historically Very High Leverage
Extremely high historical leverage amplifies earnings and capital volatility, constraining the company’s ability to absorb credit or market shocks. Such indebtedness increases refinancing and covenant risk and makes executing strategic investments or weathering rate cycles more difficult over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Fundings & Origination Growth
Sustained funded-volume and submissions growth reflects durable demand and improving conversion across retail and proprietary channels. Higher funded volumes and a larger pipeline support recurring gain-on-sale and servicing opportunities, underpinning revenue stability and scalable origination economics over coming quarters.
Read all positive factors
Finance of America Companies Key Performance Indicators (KPIs)
Any
Assets by Segment
Details the size and composition of assets held in each segment—loan portfolios, insurance reserves, investments—indicating where the company’s capital is tied up and what credit or interest-rate risks it faces. Rapid asset growth can signal future revenue potential but also raises the importance of asset quality and underwriting standards.
Details the size and composition of assets held in each segment—loan portfolios, insurance reserves, investments—indicating where the company’s capital is tied up and what credit or interest-rate risks it faces. Rapid asset growth can signal future revenue potential but also raises the importance of asset quality and underwriting standards.
Data provided by:
The Fly
The FlyFinance of America Companies (FOA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$552.61M
Dividend YieldN/A
Average Volume (3M)94.28K
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth-2.88%
EPS Growth-104.13%
CountryUS
Employees783
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)-0.36
Shares Outstanding9,217,956
10 Day Avg. Volume77,806
30 Day Avg. Volume94,277
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.71
Price to Sales (P/S)0.11
P/FCF Ratio-0.54
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$31.00Price Target Upside35.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.66
Revenue Forecast (FY)$505.98M
Finance of America Companies Business Overview & Revenue Model
Company Description
Finance of America Companies Inc. a financial service holding company, through its subsidiaries, provides home equity-based financing solutions for a modern retirement in the United States. The company operates through two segments: Retirement Sol...
How the Company Makes Money
FOA makes money primarily through mortgage lending and related secondary-market and servicing economics. Key revenue streams generally include: (1) loan origination revenue, earned from fees and gain-on-sale margins when FOA originates residential...
Finance of America Companies Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call emphasized clear operational improvements across demand, conversion, digital engagement and proprietary product penetration, supported by strong cash generation and a strategic acquisition (Onity MSR). Management reaffirmed full-year guidance and prioritized retiring $150 million of debt to strengthen the balance sheet. Offsetting these positives were significant noncash GAAP volatility (notably $84 million of negative fair value adjustments and a $24 million convertible note mark) and some margin sensitivity to interest rate movements, along with near-term investment-related expenses. Overall, underlying operating performance and cash generation appear strong and improving despite accounting-driven GAAP noise.Positive Updates
Strong Adjusted Earnings and EPS Growth
Adjusted net income of $19 million in Q2 2026 (adjusted EPS $0.84). First half 2026 adjusted net income of $45 million (adjusted EPS $1.94), an 81% improvement versus the first half of 2025. Q2 adjusted EPS improved ~53% versus Q2 2025.
Negative Updates
GAAP Net Loss and Large Fair Value Adjustments
Reported GAAP net loss of $29 million in Q2 driven primarily by $84 million of negative fair value adjustments on the portfolio, introducing significant quarter-to-quarter GAAP volatility unrelated to underlying operating cash generation.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Adjusted Earnings and EPS Growth
Adjusted net income of $19 million in Q2 2026 (adjusted EPS $0.84). First half 2026 adjusted net income of $45 million (adjusted EPS $1.94), an 81% improvement versus the first half of 2025. Q2 adjusted EPS improved ~53% versus Q2 2025.
Read all positive updates
Company Guidance
Finance of America reaffirmed full‑year guidance of funded volume of $2.8–$3.1 billion and adjusted EPS of $4.50–$5.00, a view the company said is supported by strong second‑quarter and year‑to‑date operating metrics — Q2 funded volume was $730 million (up 21% YoY) with submissions >$1 billion (≈11% sequential, 19% YoY), Q2 adjusted net income of $19 million ($0.84 per share, +53% YoY) and H1 adjusted net income of $45 million ($1.94, +81% vs. H1 2025); cash generation from originations and capital markets was $58 million in Q2 ($116 million H1), portfolio securitizations topped $1 billion in June, the $5.2 billion Onity HECM MSR closing (incorporated in guidance) and an HECM MSR adjusted net asset value of $326 million (financing $46 million, ~14% leverage) bolster liquidity, proprietary submissions/fundings rose ~20%/25%, retail submissions/fundings rose ~19%/33% with funded loans per call‑center LO up ~30%, digital prequal activity hit ~10,000 site visitors in June with monthly prequalification offers +90% and time‑to‑application improving ~57%, and management reiterated priority to retire $150 million of senior secured notes in November to further strengthen the balance sheet.Finance of America Companies Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
33
Negative
Cash Flow
27
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 2.13B | 1.95B | 1.57B | 686.96M | 1.32B |
| Gross Profit | 1.05B | 411.97M | 270.64M | 177.03M | -32.38M | 1.26B |
| EBITDA | 819.74M | 151.69M | 81.76M | -119.30M | -278.01M | -1.13B |
| Net Income | -338.00K | 45.23M | 15.49M | -80.09M | -190.68M | -251.94M |
Balance Sheet | ||||||
| Total Assets | 37.32B | 30.73B | 29.16B | 27.11B | 20.87B | 21.79B |
| Cash, Cash Equivalents and Short-Term Investments | 85.28B | 324.65M | 47.38M | 46.48M | 61.15M | 143.49M |
| Total Debt | 36.76B | 30.21B | 28.72B | 26.63B | 20.12B | 20.31B |
| Total Liabilities | 36.91B | 30.34B | 28.84B | 26.84B | 20.47B | 20.71B |
| Stockholders Equity | 346.66M | 323.87M | 255.30M | 232.31M | 253.93M | 387.90M |
Cash Flow | ||||||
| Free Cash Flow | -555.32M | -429.75M | -423.81M | -71.57M | 1.41B | -114.72M |
| Operating Cash Flow | -555.32M | -429.75M | -423.81M | -71.57M | 1.41B | -96.59M |
| Investing Cash Flow | 721.72M | 854.89M | 114.80M | 158.14M | -1.82B | -1.62B |
| Financing Cash Flow | -62.59M | -402.45M | 386.21M | -139.23M | 225.21M | 1.67B |
Finance of America Companies Technical Analysis
Negative
22.85
Price Trends
23.01
Negative
21.34
Positive
21.65
Positive
Market Momentum
-0.48
Positive
42.06
Neutral
20.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOA, the sentiment is Negative. The current price of 22.85 is above the 20-day moving average (MA) of 22.85, below the 50-day MA of 23.01, and above the 200-day MA of 21.65, indicating a neutral trend. The MACD of -0.48 indicates Positive momentum. The RSI at 42.06 is Neutral, neither overbought nor oversold. The STOCH value of 20.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FOA.
Finance of America Companies Risk Analysis
Finance of America Companies disclosed 71 risk factors in its most recent earnings report. Finance of America Companies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Finance of America Companies Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.61B | 18.58 | 25.76% | ― | 17.65% | 43.92% | |
72 Outperform | $610.09M | 2.12 | 68.06% | ― | 10.16% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $7.56B | 9.86 | 23.07% | 7.01% | 6.93% | 19.96% | |
63 Neutral | $309.06M | 6.73 | 12.49% | 2.88% | 9.63% | 40.75% | |
59 Neutral | $204.99M | 9.61 | 6.91% | ― | 11.35% | 9.36% | |
55 Neutral | $552.61M | -60.44 | >-0.01% | ― | -2.88% | -104.13% |
* Financial Sector Average
FOA
Finance of America Companies
21.76
-5.51
-20.21%
CPSS
Consumer Portfolio Services
9.51
1.17
14.03%
RM
Regional Management
33.50
-3.02
-8.28%
OMF
OneMain Holdings
65.68
11.52
21.27%
ENVA
Enova International
265.45
157.58
146.08%
OPFI
OppFi
7.16
-3.44
-32.45%
Finance of America Companies Corporate Events
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Finance of America Companies Updates Charter and Governance
Positive
Aug 3, 2026
On July 31, 2026, Finance of America Companies Inc. implemented a Second Amended and Restated Certificate of Incorporation that reclassified its Class B common stock to achieve parity with FOAEC Class A units and granted each Class B share one vot...
Business Operations and StrategyM&A Transactions
Finance of America expands reverse mortgage servicing portfolio
Positive
Jul 1, 2026
On June 30, 2026, Finance of America Reverse LLC, a subsidiary of Finance of America Companies Inc., completed an all-cash acquisition of reverse mortgage servicing rights and certain reverse origination assets from Onity Mortgage Corporation, cov...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Finance of America updates charter and governance structure
Neutral
Jun 30, 2026
On June 26, 2026, Finance of America Companies stockholders holding a majority of the company’s overall voting power and nearly all of the Class B voting power approved by written consent a Second Amended and Restated Certificate of Incorpor...
Executive/Board ChangesShareholder Meetings
Finance of America Stockholders Back Board, Pay and Auditor
Positive
May 21, 2026
On May 15, 2026, Finance of America Companies Inc. held its annual meeting of stockholders, with 80.89% of the total voting power represented, to act on director elections, executive compensation and auditor ratification. Stockholders elected six ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.