Finance of America Companies (NYSE:FOA) Posts Earnings Results, Misses Expectations By $0.20 EPS

Posted by Stanley Muller on Aug 4th, 2026

Finance of America Companies (NYSE:FOA – Get Free Report) announced its quarterly earnings results on Tuesday. The company reported $0.84 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.04 by ($0.20), FiscalAI reports. Finance of America Companies had a net margin of 7.20% and a return on equity of 22.24%. The company had revenue of $62.48 million for the quarter, compared to analysts’ expectations of $121.94 million.

Here are the key takeaways from Finance of America Companies’ conference call:

Adjusted earnings and production improved significantly: Second-quarter adjusted net income was $19 million, or $0.84 per share, while first-half adjusted EPS rose 81% year over year to $1.94. First-half originations increased 14%, with second-quarter reverse mortgage fundings up 21% year over year to $730 million.
Demand and operating efficiency strengthened, with submissions exceeding $1 billion, retail funded loans up 33% year over year, and funded loans per call-center officer increasing nearly 30% sequentially. Management attributed the gains partly to its proprietary technology and AI-enabled platforms.
Finance of America generated $58 million of cash from originations and capital-markets activity during the quarter and completed the acquisition of a $5.2 billion HECM mortgage-servicing-rights portfolio from Onity. The asset is expected to generate a mid-teens yield in the second half and is already included in company guidance.
Management reaffirmed full-year guidance for funded volume of $2.8 billion to $3.1 billion and adjusted EPS of $4.50 to $5.00. The company’s primary capital-allocation priority is retiring the remaining $150 million of senior secured notes in November, which should reduce financing costs and could later enable buybacks, dividends, or additional investment.
GAAP results were pressured by $84 million of negative fair-value adjustments, including a $24 million mark on convertible notes tied to the stock-price increase, resulting in a $29 million quarterly net loss. Interest-rate volatility also affected gain-on-sale margins and the valuation of portfolio assets, creating potential ongoing earnings and book-value volatility.

Finance of America Companies Stock Performance

Shares of NYSE FOA traded up $0.41 during midday trading on Tuesday, hitting $23.77. 45,075 shares of the company’s stock traded hands, compared to its average volume of 77,295. The firm has a fifty day moving average of $22.76 and a 200 day moving average of $21.14. Finance of America Companies has a 1 year low of $15.77 and a 1 year high of $29.79. The company has a debt-to-equity ratio of 43.57, a quick ratio of 2.62 and a current ratio of 2.62. The stock has a market capitalization of $211.32 million, a price-to-earnings ratio of 59.42 and a beta of 1.66.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on FOA shares. Weiss Ratings upgraded shares of Finance of America Companies from a “sell (d)” rating to a “sell (d+)” rating in a research report on Friday, June 12th. Zacks Research upgraded shares of Finance of America Companies to a “hold” rating in a research note on Monday, April 6th. Wall Street Zen cut Finance of America Companies from a “hold” rating to a “sell” rating in a report on Saturday, July 25th. Finally, Alliance Global Partners began coverage on Finance of America Companies in a report on Wednesday, July 22nd. They set a “buy” rating and a $30.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $27.33.

View Our Latest Research Report on FOA

Insider Activity

In related news, CIO Jeremy Prahm sold 8,860 shares of the business’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $20.49, for a total transaction of $181,541.40. Following the completion of the sale, the executive directly owned 203,856 shares in the company, valued at approximately $4,177,009.44. The trade was a 4.17% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 20,838 shares of company stock valued at $431,968 over the last quarter. Company insiders own 35.37% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in FOA. XTX Topco Ltd purchased a new position in shares of Finance of America Companies during the 4th quarter worth $327,000. Millennium Management LLC purchased a new stake in shares of Finance of America Companies in the 4th quarter worth $1,303,000. Bridgeway Capital Management LLC purchased a new stake in shares of Finance of America Companies in the 4th quarter worth $207,000. Lazard Asset Management LLC bought a new position in Finance of America Companies in the 4th quarter worth $1,147,000. Finally, Russell Investments Group Ltd. lifted its position in Finance of America Companies by 5,866.5% during the fourth quarter. Russell Investments Group Ltd. now owns 77,445 shares of the company’s stock valued at $1,875,000 after purchasing an additional 76,147 shares in the last quarter. 97.20% of the stock is currently owned by institutional investors.

Finance of America Companies Company Profile

(Get Free Report)

Finance of America Companies (NYSE: FOA) is a diversified nonbank financial services firm specializing in mortgage and insurance products for consumers. The company operates across multiple business segments, delivering home financing solutions, retirement products and specialized lending services through a blend of digital and traditional distribution channels.

In its mortgage segment, FOA originates and purchases a range of home loans including purchase, refinance, FHA, VA and USDA loans.