Corrected: Finance of America Q2 adjusted EPS misses estimates as revenue falls

Finance of America Companies

04/08/2026 21:37

Corrects second Result Drivers bullet to clarify profitability is for the half year, not Q2

Overview
US home equity lender's Q2 revenue fell 65% yr/yr, adjusted EPS missed analyst expectations
Funded volume rose 21% yr/yr, reflecting higher demand for home equity solutions
Company completed acquisition of Onity HECM servicing portfolio in June 2026

Outlook
Company did not provide specific guidance for the current or upcoming quarters

Result Drivers
FUNDED VOLUME GROWTH - Co said funded volume rose 21% yr/yr, reflecting higher demand for home equity solutions
RETIREMENT SOLUTIONS PROFITABILITY - Co attributed improved HY profitability in Retirement Solutions segment to improved operating leverage with scale
PORTFOLIO MANAGEMENT FAIR VALUE IMPACT - Co said Portfolio Management segment's pre-tax loss was driven by negative non-cash fair value adjustments on retained interests in securitizations

Company press release: ID:nBwjMtg1a

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$62 mln
$121.94 mln (2 Analysts)
Q2 Adjusted EPS
Miss
$0.84
$1.04 (3 Analysts)
Q2 Loss Per Share
 
$1.28
 
Q2 Adjusted Net Income
Miss
$19 mln
$19.84 mln (2 Analysts)
Q2 Adjusted EBITDA
Miss
$35 mln
$38.33 mln (2 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy"
Wall Street's median 12-month price target for Finance of America Companies Inc is $27.50, about 17.7% above its August 3 closing price of $23.36
The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 4 three months ago

Reuters Recommended Reads
Aug 3 - JPMorgan aims to funnel $750 billion into housing through 2035
Aug 3 - Jackson Financial Q2 profit jumps on favorable hedging, annuity sales growth
Aug 3 - New Mountain Finance Q2 net investment income falls year over year

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)