FOA Q2 Revenue Plunges 65% to $62M, Swings to Loss as Fair Value Headwinds Hit
FOA sits 40% above its 52-week low of $15.77.
Summary
FOA reported Q2 2026 revenue of $62 million, down 65% YoY, and a net loss of $28.9 million driven by fair value losses on its loan portfolio. The results confirm the preliminary miss disclosed on August 4 and add detail on the Onity acquisition and expense growth.
Key Events · Earnings and Guidance · FOA
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Revenue Collapses 65%
Total revenues fell to $62 million from $177 million a year ago, driven by a $126.5 million swing in fair value changes on loans and related obligations — a $31.5 million loss this quarter versus a $94.9 million gain in Q2 2025.
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Swings to Net Loss
Net loss from continuing operations was $28.9 million, compared to net income of $79.8 million in the prior-year quarter. Diluted loss per share was $1.28.
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Expenses Surge 19%
Total expenses rose to $106.1 million from $89.1 million, with marketing and advertising up 40% and salaries up 14% as the company invested in growth despite the revenue decline.
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Onity Acquisition Closed
On June 30, 2026, FOA completed the acquisition of Onity Mortgage's reverse mortgage assets, adding $5.6 billion in assets and $5.5 billion in HMBS obligations. Cash paid at closing was $91.8 million.
Analysis · FOA · Finance
Finance of America's Q2 2026 revenue collapsed 65% year-over-year to $62 million, missing consensus by a wide margin and swinging to a net loss of $28.9 million from a $79.8 million profit a year ago. The primary driver was a $126.5 million swing in fair value changes from market inputs — a $31.5 million loss this quarter versus a $94.9 million gain last year — reflecting adverse moves in interest rates, yields, and home price assumptions. Origination gains rose on higher volumes, but expenses jumped 19% on increased marketing and compensation. The company also closed the Onity Mortgage acquisition, adding $5.6 billion in assets and $5.5 billion in HMBS obligations. A $33.8 million valuation allowance release provided a tax benefit, but the underlying operating trends are sharply negative. This filing confirms the severe Q2 miss previewed in the August 4 8-K, adding full financial detail and segment-level breakdowns.
At the time of this filing, FOA was trading at $22.12 on NYSE in the Finance sector, with a market capitalization of approximately $197.7M. 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.