Finance of America Q2 Revenue Plunges 65%, Misses Across All Key Metrics
FOA sits 46% above its 52-week low of $15.77.
Summary
Finance of America's Q2 revenue collapsed 65% year-over-year to $62 million, missing the $121.94 million consensus by a wide margin. Adjusted EPS of $0.84 also fell short of the $1.04 estimate, with adjusted net income and EBITDA both below expectations. The company reported a GAAP loss per share of $1.28, partly due to negative non-cash fair value adjustments in its Portfolio Management segment. On a positive note, funded volume grew 21% year-over-year, reflecting higher demand for home equity solutions, and the Retirement Solutions segment showed improved profitability. This follows the Q1 10-Q which had shown a significant increase in adjusted net income, making the Q2 miss a sharp reversal. The recent completion of the Onity HECM servicing portfolio acquisition in June adds scale but did not prevent the top-line shortfall. No guidance was provided, leaving uncertainty about the trajectory for the rest of the year.
At the time of this announcement, 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 news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.