FOA's Q3 loss contrasts with sharp rise in adjusted income

"Adjusted net income rose to $33 million, or $1.33 per share, up 136% from the prior quarter and 120% higher than the same period a year ago. For the first nine months of the year, Finance of America reported $131 million in net income from continuing operations and $60 million in adjusted net income. Origination performance remained robust, with funded volume reaching $603 million and submission volume reaching $887 million for the quarter,"

"she added. Matthew Engel, the company's chief financial officer, also shed some light on FOA's Q3 2025 performance. On a GAAP basis, the company reported a net loss of $29 million for the quarter, as lower interest rates and tighter spreads were more than offset by softer home-price appreciation projections impacting the non-cash fair value of our residuals, Engel said."

"Adjusted net income for the quarter totaled $33 million, or $1.33 per share, a 125% increase from the prior quarter and more than double the level from the same period last year. This improvement was driven by higher origination margins and increased capital markets activity. The company also said it repaid $85 million in higher-cost working capital facilities and agreed to repurchase the entirety of Blackstone's equity stake, a move aimed at reducing interest expenses and increasing financial flexibility."

Adjusted net income increased to $33 million, or $1.33 per share, showing strong sequential and year-over-year growth. For the first nine months, net income from continuing operations totaled $131 million and adjusted net income totaled $60 million. Quarterly funded volume reached $603 million with submissions of $887 million. By end of October 2025, $1.97 billion in reverse mortgages were funded, exceeding 2024 production, and October submissions hit $336 million. GAAP results reflected a $29 million quarterly loss due to lower rates, tighter spreads, and softer home-price appreciation projections affecting residual fair value. Year-to-date pretax income was $131 million. Operational improvements were driven by higher origination margins and increased capital markets activity. The company repaid $85 million in higher-cost working capital facilities, agreed to repurchase Blackstone's equity stake, and increased cash to $110 million at quarter end.

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