Finance Of America 2025 Q3 Earnings Sharp Net Loss of $29.86M, 114.7% Deterioration

Finance Of America (FOA), ranked by market capitalization, reported its fiscal 2025 Q3 earnings on Nov 14th, 2025. The results marked a dramatic shift from prior-year performance, with revenue collapsing by 72.1% to $80.85 million and a net loss of $29.86 million, reflecting a stark reversal from 2024 Q3’s $203.75 million profit. The stock price, however, showed resilience, posting gains across recent trading periods.

Revenue

Finance Of America’s total revenue plummeted by 72.1% year-over-year to $80.85 million in Q3 2025. Retirement Solutions remained the largest contributor, generating $68.12 million, while Portfolio Management added $27.34 million. However, the Corporate and Other segment reported a negative revenue of $14.49 million, and Eliminations subtracted an additional $123,000. The decline underscores significant challenges across core business lines, with no segment offsetting the overall contraction.

Earnings/Net Income

The company swung to a $1.05 per-share loss in Q3 2025, a 112.4% negative change from the $8.48 per-share profit in 2024 Q3. Net income deteriorated to a $29.86 million loss, a 114.7% decline from the prior-year period. The earnings downturn highlights a severe operational reversal, with no guidance adjustments or forward-looking indicators provided in the report.

Price Action

The stock price of Finance Of America gained 2.13% during the latest trading day, 3.00% over the most recent full trading week, and 7.38% month-to-date. These gains suggest investor optimism amid the earnings shortfall, though the underlying financial metrics remain troubling.

CEO Commentary

The CEO emphasized the need for strategic cost management and operational restructuring to address the Q3 losses. While acknowledging market headwinds, leadership prioritized long-term stability over short-term gains, with a focus on optimizing Retirement Solutions and Portfolio Management. Forward-looking statements highlighted cautious optimism for future quarters, contingent on successful execution of modernization initiatives.

Additional News

Finance Of America’s technology division, led by Senior Software Engineer Navneet Kumar Tyagi, outlined a framework for modernizing legacy systems without disrupting core operations. Key principles included avoiding large-scale replacements, layering cloud-native services atop existing infrastructure, and prioritizing data integration. The approach emphasized incremental innovation, hybrid cloud strategies, and cross-functional collaboration to achieve a composable architecture. These efforts align with broader industry trends toward AI-driven, data-centric banking platforms.