Finance of America Posts $110 Million Loss on Fair-Value Hits

The Tip Desk · November 3, 2026 · 3 min read

Funded volume reached $748 million, up 24% from a year earlier, as the company booked $125 million of non-cash fair-value adjustments.

Finance of America Companies Inc. (FOA), a provider of home equity-based financing solutions, reported a $110 million net loss from continuing operations, or $5.24 a share, for the quarter ended September 30, 2026, primarily the result of $125 million in non-cash fair-value adjustments.

The loss widened from $29 million in the second quarter, when basic earnings were $0.10 a share and diluted earnings were a $1.28 loss a share. GAAP total revenues swung to a $58 million loss from $62 million of revenue in the prior quarter.

Funded volume was $748 million, a 24% increase from $603 million in the third quarter of 2025. That year-over-year growth rate compared with a 21% increase in the second quarter. Year-to-date funded volume was $2,074 million, up 17% from the first nine months of 2025.

Adjusted net income was $6 million, or $0.28 a share, down from $19 million, or $0.84 a share, in the second quarter. The company attributed the adjusted decline to lower net origination gains due to higher benchmark rates. Adjusted EBITDA was $17 million.

Chief Executive Officer Graham A. Fleming said the third quarter demonstrated continued strength of the platform, with funded origination volume growing 24% year over year. He said higher interest rates drove near-term pressure on earnings, that the company believes the impact is temporary, and that it has already taken steps to improve margins.

Retirement Solutions, which generates revenue from origination fees and the initial estimate of net origination gains, reported total revenue of $67 million. The company said funded-volume growth was offset by pressure on revenue margin from increases in benchmark rates. Pre-tax income in the segment fell to $3 million from $10 million in the second quarter, and adjusted net income fell to $9 million from $15 million.

The company said it implemented product and pricing adjustments to address the impact of higher interest rates and expects margin to return to historical levels.

Portfolio Management recorded a $138 million pre-tax loss, reflecting negative non-cash fair-value adjustments on retained interests in securitizations, versus a $26 million pre-tax loss in the second quarter. Adjusted net income in the segment was $11 million. Assets under management were $37,426 million, up 23% from a year earlier, which the company said reflected growth from new originations combined with the acquisition of the Onity HECM servicing portfolio in June 2026.

Cash and cash equivalents increased $33 million during the quarter to $118 million as of September 30, 2026, from $85 million at June 30, 2026. The company said the increase reflected strong cash generation from originations and capital markets. It expects to complete a $60 million paydown of senior secured notes in November 2026.

Total equity was $307 million as of September 30, 2026, down from $407 million at June 30, 2026. Tangible equity was $155 million. Total equity attributable to common stock was $259 million, or $28.08 book value per common share. Securitized loans held for investment were $35,843 million.