Finance of America Companies Inc. Reports Q2 2025 Earnings: Strong Growth, Strategic Securitization, and Digital Pre-Qualification Launch

Finance of America Companies Inc. reported a 35% increase in funded volume, GAAP net income of $80 million, and completed a $1 billion+ home safe securitization. The company launched a new digital pre-qualification experience and saw a 10% increase in leads from digital channels. However, total expenses increased by approximately $2.7 million, and the company faces ongoing risks and uncertainties.

Finance of America Companies Inc. (NYSE: FOA) reported a robust second quarter (Q2) 2025, with a 35% increase in funded volume compared to Q2 2024. The company achieved a GAAP net income of $80 million, or $3.16 per basic share, and completed its first-ever $1 billion-plus home safe securitization [1].

Key highlights include:
- Funded Volume: $602 million, a 35% increase from Q2 2024 and a 7% increase from the prior quarter.
- GAAP Net Income: $80 million, up from a loss of $5 million in the same period last year.
- Adjusted Net Income: $14 million, or $0.55 adjusted earnings per share.
- Adjusted EBITDA: $30 million for the quarter.
- Revenue (excluding fair value changes): $84.8 million, up 6% quarter over quarter and 22% year over year.
- HMBS Issuance Market Share: Over 29% in June, with a Q2 average market share of 28%.
- Tangible Net Worth: $275 million at quarter end.
- Book Equity: $473 million at quarter end.
- Securitization: Over $800 million in proprietary loans during Q2, with a $1.2 billion transaction in July.

The company also launched a new digital pre-qualification experience, enhancing borrower engagement and operational efficiency. Digital acquisition strategies showed promising results with a 10% increase in leads from digital channels.

However, total expenses increased by approximately $2.7 million compared to the prior quarter. The company is still managing its debt, with plans to retire $200 million by November 2027. The transition to a new marketing campaign concluded its long-standing partnership with Tom Selleck, which may impact brand recognition.

The company faces ongoing risks and uncertainties as outlined in its annual report, which could affect future performance. Strategic marketing investments have led to increased variable expenses, impacting overall cost management.

References:
[1] https://finance.yahoo.com/news/finance-america-companies-inc-foa-073136372.html
[2] https://finance.yahoo.com/news/finance-america-reports-second-quarter-200800358.html