Finance of America — Third Quarter 2026 Earnings Summary

Financial Performance:

• Funded volume reached $748 million in Q3 2026, a 24% increase year-over-year compared to $603 million in Q3 2025; year-to-date funded volume increased 17% to $2,074 million.
• Reported a net loss of $110 million ($5.24 basic loss per share) for the quarter, primarily driven by $125 million in non-cash changes in fair value.
• Year-to-date net loss was $103 million ($3.49 basic loss per share).
• Adjusted net income was $6 million ($0.28 adjusted earnings per share) for the quarter, down from $33 million ($1.33 adjusted EPS) in Q3 2025.
• Adjusted EBITDA was $17 million for the quarter, compared to $55 million in Q3 2025.
• Total revenues were $(58) million for the quarter, a 172% decrease from $81 million in Q3 2025.
• Adjusted total revenues were $89 million for the quarter, a 17% decrease from $107 million in Q3 2025.
• Cash and cash equivalents increased by $33 million during the quarter to $118 million as of September 30, 2026.
• Total equity was $307 million as of September 30, 2026, with book value per common share at $28.08.
• Tangible equity was $155 million as of September 30, 2026.

Guidance and Future Outlook:

• The Company expects to complete a $60 million paydown of senior secured notes in November 2026.
• Management indicated that higher interest rates are driving near-term pressure on earnings but believes this impact is temporary.
• The Company has taken steps to improve margins and expects margins to return to historical levels following product and pricing adjustments.
• Management remains focused on driving production growth, operational efficiency, and cash generation.

Business Segments and Product Lines:

• Retirement Solutions: Funded volume was $748 million (24% YoY growth). Total revenue was $67 million (down 1% YoY), while pre-tax income was $3 million (down 82% YoY). Adjusted net income was $9 million.
• Portfolio Management: Assets under management increased 23% YoY to $37,426 million. The segment reported a pre-tax loss of $138 million due to negative non-cash fair value adjustments on retained interests. Adjusted net income was $11 million.
• The Portfolio Management segment's growth in assets reflects new originations and the acquisition of the Onity HECM servicing portfolio in June 2026.

Market and Competitive Landscape:

• The Company cites continued demand for home equity solutions as a driver for funded volume growth.
• Higher benchmark rates during the quarter created pressure on revenue margins in the Retirement Solutions segment.
• The Company operates in a market where rate volatility is expected to continue, influencing portfolio valuations and origination margins.

Risks and Challenges:

• Significant volatility in fair value adjustments on portfolio assets and liabilities, resulting in a $125 million non-cash charge in Q3 2026.
• Pressure on origination margins due to increases in benchmark interest rates.
• Changes in market rates affecting the reported fair value of certain retained assets in the Portfolio Management segment.

Management Commentary and Tone:

• Graham A. Fleming, CEO, stated that Q3 2026 demonstrated the continued strength of the platform with 24% funded volume growth.
• Management expressed confidence that the Company is well-positioned to navigate evolving markets and capitalize on enduring demand for home equity solutions.
• The tone acknowledges temporary earnings pressure from rates but emphasizes a focus on normalization of margins and long-term shareholder value creation.

Other Key Points:

• The Company acquired the Onity HECM servicing portfolio in June 2026, contributing to portfolio growth.
• Total assets grew 23% year-over-year to $37.7 billion, and total liabilities grew 24% to $37.4 billion.
• The Company holds $118 million in cash and cash equivalents, reflecting strong cash generation from originations and capital markets activities.
• Adjusted net income for the first nine months of 2026 was $51 million ($2.26 adjusted EPS), down 15% from $60 million in the prior-year period.