Finance of America Q2 Revenue Plunges 65% to $62M, Missing Consensus by Nearly Half
FOA sits 46% above its 52-week low of $15.77.
Summary
Finance of America reported Q2 2026 revenue of $62 million, a 65% decline year-over-year and well below consensus, driven by a collapse in Portfolio Management segment revenue. Adjusted net income was $19 million, and the company completed the Onity HECM servicing acquisition.
Key Events · Earnings and Guidance · FOA
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Revenue Misses Consensus by 49%
Q2 2026 total revenues of $62 million fell 65% year-over-year and missed the $121.94 million consensus estimate by nearly half, driven by a 99% decline in Portfolio Management segment revenue.
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GAAP Net Loss of $29 Million
The company reported a net loss from continuing operations of $29 million, or $1.28 diluted loss per share, compared to net income of $80 million in Q2 2025.
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Adjusted Net Income of $19 Million
Adjusted net income was $19 million, or $0.84 per share, up 53% year-over-year, while adjusted EBITDA was $35 million, reflecting operational improvements in the Retirement Solutions segment.
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Retirement Solutions Funded Volume Up 21%
Funded volume in the Retirement Solutions segment reached $730 million, a 21% increase year-over-year, with pre-tax income stable at $10 million.
Analysis · FOA · Finance
Finance of America's Q2 revenue collapsed 65% year-over-year to $62 million, missing the $121.94 million consensus by a wide margin. The GAAP net loss from continuing operations was $29 million, though adjusted net income was $19 million and adjusted EBITDA was $35 million. The revenue miss is driven by a sharp decline in Portfolio Management segment revenue, which fell 99% year-over-year due to negative fair value adjustments on retained interests. The core Retirement Solutions segment showed strength with funded volume up 21% to $730 million and pre-tax income stable at $10 million. The company completed the Onity HECM servicing portfolio acquisition, boosting assets under management to $37 billion. With $85 million in cash and $407 million in total equity, the balance sheet remains solid, but the top-line miss raises questions about the sustainability of recent profitability improvements.
At the time of this filing, FOA was trading at $23.00 on NYSE in the Finance sector, with a market capitalization of approximately $212.3M. The 52-week trading range was $15.77 to $29.79. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.