Key facts
- Finance of America reported a third-quarter 2026 net loss of $110 million, or $5.24 per basic share.
- Adjusted net income was $6 million, or 28 cents per share, down from $33 million, or $1.33 per share, a year earlier.
- Adjusted EBITDA totaled $17 million, down from $55 million in the third quarter of 2025.
- The retirement solutions segment's revenue margin fell to 9% from 11.3% a year earlier, CEO Graham Fleming said.
- Portfolio management assets under management rose 23% year over year to $37.4 billion.
- Finance of America ended the quarter with $118 million in cash and cash equivalents, up from $85 million at the end of June.
Finance of America reported a net loss of $110 million for the third quarter of 2026, or $5.24 per basic share, the Plano, Texas-based lender said on November 3, 2026. The loss compared with a loss of 98 cents per share a year earlier and was primarily driven by $125 million in noncash fair value adjustments.
Funded volume for the quarter ending September 30 reached $748 million, up 24% from $603 million in the same period of 2025. Year-to-date funded volume was $2.07 billion, a 17% increase from the first nine months of 2025. On an adjusted basis, the company reported net income of $6 million, or 28 cents per share, compared with $33 million, or $1.33 per share, a year earlier. Adjusted EBITDA totaled $17 million, down from $55 million.
CEO Graham Fleming said in a statement that higher interest rates drove near-term pressure on earnings, which he said the company believes is temporary. On the earnings call, he said margins compressed after the Federal Reserve shifted from cutting to raising interest rates, and that the company expects margins to return to historical levels in the first half of 2027. He said the 10-year Treasury yield rose more than 75 basis points during the quarter.
The retirement solutions segment, which originates home equity-based financing products including reverse mortgages, recorded $748 million in funded volume, up 24% year over year. Segment revenue was $67 million, down 1% from a year earlier and below the $74 million recorded in the second quarter of 2026. Pretax income fell to $3 million from $10 million, and adjusted net income declined to $9 million from $20 million. Fleming said the segment's revenue margin decreased to 9% from 11.3% a year earlier, against a historical average of 10.7% since the start of 2024.
For the first nine months of 2026, the retirement solutions segment generated $2.07 billion in funded volume, up 17%, and revenue rose 14% to $208 million. President Kristen Sieffert said on the call that submission volumes have increased 21% annually since 2023 while funded volume grew 20% annually, with HECM volume up 14% year over year, HomeSafe first liens up 15% and HomeSafe seconds up 63%.
The portfolio management segment reported a pretax loss of $138 million, compared with an $11 million loss a year earlier, which the company attributed primarily to negative noncash fair value adjustments on retained interests in securitizations. Adjusted net income was $11 million, down from $30 million. Assets under management rose 23% year over year to $37.4 billion, reflecting new originations and the July 1 acquisition of Onity Mortgage Corp.'s HECM servicing portfolio. For the first nine months of 2026, the segment recorded a pretax loss of $128 million, compared with pretax income of $202 million a year earlier, and adjusted net income of $57 million, down from $66 million.