Finance of America Companies Inc. a financial service holding company, through its subsidiaries, provides home equity-based financing solutions for a modern retirement ...
Finance of America Companies Inc. (NYSE: FOA) is a financial service holding company that specializes in home equity-based financing solutions, primarily targeting retirees and pre-retirees in the United States. The company operates through two main segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment focuses on originating and servicing ...Finance of America Companies Inc. (NYSE: FOA) is a financial service holding company that specializes in home equity-based financing solutions, primarily targeting retirees and pre-retirees in the United States. The company operates through two main segments: Retirement Solutions and Portfolio Management. The Retirement Solutions segment focuses on originating and servicing home equity conversion mortgages (HECMs) and non-agency reverse mortgage loans, helping seniors access the equity in their homes to fund retirement expenses, healthcare costs, or other financial needs. The Portfolio Management segment handles product development, loan securitization, loan sales, risk management, servicing oversight, and asset management, ensuring the company's loan portfolio is managed effectively. Founded in 2013 and headquartered in Plano, Texas, FOA has grown to become a leading reverse mortgage lender, with over $17 billion in funded reverse mortgage loans and a strong reputation for customer trust, as evidenced by its A+ Better Business Bureau rating and high customer satisfaction scores. The company employs approximately 782 full-time employees, positioning it in the 501-1,000 employee range. Under the leadership of CEO Graham Fleming, who has served since April 2023, and President Kristen Sieffert, FOA is committed to its mission of helping people experience the joy and accomplishment of living retirement to its fullest. The company's products are designed to provide financial flexibility and security for older Americans, offering a range of home equity solutions that can be tailored to individual needs, including lump-sum payments, monthly advances, or lines of credit. FOA also provides educational resources to help consumers understand their options, ensuring that they make informed decisions. From a financial perspective, FOA's stock trades on the New York Stock Exchange, and as of the latest data, the market capitalization is about $195 million, with a price-to-sales ratio of 0.098, indicating a potentially undervalued position relative to revenues. The company's gross profit margin is strong at 52.5%, and it has a significant enterprise value, though it reports negative free cash flow and net income, reflecting challenges in the current economic environment. Despite these financial metrics, FOA's strategic focus on the growing demographic of retirees and the increasing need for retirement income solutions positions it for future growth. The company's leadership emphasizes consumer choice and education, and it continues to innovate in the home equity space, aiming to reshape what financial security and flexibility look like for retirees. With a robust operational infrastructure and a clear vision, Finance of America Companies Inc. is dedicated to unlocking the financial strength of home equity for its customers.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$2.1B
+9.2%
-87.7%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$45.2M
+192.1%
-88.3%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+19.4%
+39.4%
+69.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+5.3%
+141.9%
-772.3%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+2.1%
+167.5%
-4.3%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$-429.7M
-1.4%
-40.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
-20.2%
+7.1%
-1043.0%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
9326.8%
-17.1%
+19.9%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
8.00x
+8355.8%
-6.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Ladies and gentlemen, thank you for standing by. My name is Leah, and I will be your conference moderator today. At this time, I'd like to welcome you to the Finance of America Second Quarter 2026 Earnings Call. [Operator Instructions] I will now turn the call over to Michael Fant, Senior Vice President of Finance. You may now begin.
Michael Fant: Thank you, and good afternoon, everyone, and welcome to Finance of America's Second Quarter 2026 Earnings Call. With me today are Graham Fleming, Chief Executive Officer; Kristen Sieffert, President; and Matt Engel, Chief Financial Officer. As a reminder, this call is being recorded, and you can find the earnings release and related presentation on our Investor Relations website at ir.financeofamericacompanies.com. Also, I would like to remind everyone that comments on this conference call may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations and are subject to the safe harbor statement for forward-looking statements that you will find in today's earnings release and related presentation. Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of risks or other factors, including those that are described in the Risk Factors section of Finance of America's annual report on Form 10-K for the year ended December 31, 2025 filed with the SEC on March 13, 2026. Such risk factors may be amended and updated in our subsequent filings with the SEC. We are not undertaking any commitment to update these statements if conditions change. Please note, today, we will be discussing interim period financials for our continuing operations, which are unaudited. In addition, we will refer to certain non-GAAP financial measures on this call. You can find reconciliations of non-GAAP to GAAP financial measures to the extent available without unreasonable efforts in our earnings press release and presentation on the Investor Relations page of our website. Now I will turn the call over to our Chief Executive Officer, Graham Fleming. Graham?
Graham Fleming: Thank you, Michael. Good afternoon, everyone, and thank you for joining us. The second quarter reinforced what we've been communicating over the past several quarters that the operational improvements and investments we have made are now translating into a stronger, more scalable business. While market movements can create volatility in fair value adjustments and gain on sale margins, we remain focused on areas we directly control, production, operating efficiency, expense management, capital allocation and cash generation. During the second quarter, our team delivered strong execution across each of those areas. To start, if you turn to Slide 5 of the accompanying presentation, …
