Finance of America Companies Inc.

Second-quarter 2026 continuing operations showed GAAP net loss of $29 million and adjusted net income of $19 million, or $0.84 per share. Adjusted EPS was up 53% versus Q2 2025, and first-half 2026 adjusted net income was $45 million, or $1.94 per share, an 81% improvement versus the first half of 2025. Funded volume increased 21% year over year to $730 million, submissions exceeded $1 billion, and cash generation from originations and capital markets activities was $58 million in the quarter and about $116 million year to date. 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.

Graham Fleming said the quarter showed that the company’s operational improvements and investments are now translating into a stronger, more scalable business. He emphasized that Finance of America is focused on controllable levers such as production, efficiency, expense management, capital allocation, and cash generation, and said the company’s reverse mortgage opportunity remains durable because older homeowners hold substantial home equity and face rising retirement cash-flow pressure. His tone was confident and long-term oriented, with repeated references to stronger execution and a larger market opportunity.

Matt Engel said reported results were affected by nonoperating items, including $84 million of negative fair value adjustments and a $42 million tax benefit from releasing the deferred tax asset valuation allowance. He highlighted the company’s cash generation of $58 million in the quarter and said that funded volume and cash flow enabled the Onity acquisition, the semiannual interest payment on nonfunding corporate debt, and strong quarter-end cash balances. He also noted the HECM MSR adjusted net asset value was $326 million as of June 30, with only $46 million of financing, and said the priority is retiring the remaining $150 million of senior secured notes in November before considering other capital allocation options.

Analysts focused on whether demand was shifting between proprietary and HECM products, with management saying proprietary demand has been stronger recently because those products offer better cash flow to consumers given the rate environment. Questions also covered the decline in tangible equity value per share, which management attributed mainly to the quarterly GAAP loss and fair value adjustments. On capital allocation, management said the main focus between now and November is retiring the $150 million of senior secured notes, and broader decisions on buybacks or other uses of capital will be revisited later.