Finance of America reported third quarter 2026 results that fell short of analyst expectations on both revenue and earnings. Despite a 24% year-over-year increase in funded volumes, the company's performance was weighed down by higher benchmark interest rates which pressured origination margins and triggered significant non-cash fair value adjustments.
Key Highlights
- Adjusted revenue of $89 million missed the $132.3 million estimate, impacted by benchmark rate volatility.
- Adjusted EPS of $0.28 was significantly below the $1.09 estimate, primarily due to lower net origination gains in the Retirement Solutions segment.
- Funded volume grew to $748 million, a 24% increase over the same period last year, driven by persistent demand for home equity solutions.
- The company reported a GAAP net loss of $110 million, or $5.24 per share, largely resulting from $125 million in non-cash fair value adjustments.
- Assets under management rose 23% year-over-year to $37.4 billion, supported by new originations and the acquisition of the Onity HECM servicing portfolio.