Finance of America Companies (FOA)
NYSE:FOA
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Finance of America Companies
(NYSE:FOA)
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Rating:53Neutral
Price Target:
$17.00
▼(-12.14% Downside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by very high leverage and recent negative operating/free cash flow, which heighten financial risk despite improved profitability. Technicals also remain bearish with price below major moving averages and negative MACD. Offsetting these risks are constructive earnings-call guidance and a low P/E that suggests much of the risk may already be reflected in valuation.
Positive Factors
Profitability recovery & 2026 guidance
Management's multi-quarter recovery to positive adjusted earnings and explicit 2026 EPS/volume guidance indicate underlying operating improvements are durable. A clear earnings run-rate and prospective volume growth support internal cash generation, improving capacity to reduce leverage and fund strategic actions over the medium term.
Negative Factors
Extremely high leverage
An outsized debt load relative to a tiny equity base sharply limits financial flexibility and amplifies downside risk from credit or market shocks. High leverage raises refinancing and covenant risk, constrains capital allocation, and leaves limited equity cushion to absorb losses over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery & 2026 guidance
Management's multi-quarter recovery to positive adjusted earnings and explicit 2026 EPS/volume guidance indicate underlying operating improvements are durable. A clear earnings run-rate and prospective volume growth support internal cash generation, improving capacity to reduce leverage and fund strategic actions over the medium term.
Read all positive factors
Finance of America Companies (FOA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$312.77M
Dividend YieldN/A
Average Volume (3M)94.28K
Price to Earnings (P/E)5.1
Beta (1Y)0.60
Revenue Growth93.57%
EPS Growth-106.02%
CountryUS
Employees751
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)0.69
Shares Outstanding8,551,931
10 Day Avg. Volume77,806
30 Day Avg. Volume94,277
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.71
Price to Sales (P/S)0.12
P/FCF Ratio-0.54
Enterprise Value/Market Cap96.89
Enterprise Value/Revenue15.54
Enterprise Value/Gross Profit16.96
Enterprise Value/Ebitda16.22
Forecast
1Y Price Target
$22.50Price Target Upside16.28% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)4.3
Revenue Forecast (FY)$495.37M
Finance of America Companies Business Overview & Revenue Model
Company Description
Finance of America Companies Inc. operates a consumer lending platform in the United States. The company operates through: Mortgage Originations, Reverse Originations, Commercial Originations, Lender Services, and Portfolio Management segments. It...
How the Company Makes Money
FOA generates revenue primarily from mortgage lending and related fee-based activities. Its main sources of earnings have included: (1) loan origination and sale: FOA originates or acquires residential loans (including, historically, reverse mortg...
Finance of America Companies Key Performance Indicators (KPIs)
Any
Assets by Segment
Details the size and composition of assets held in each segment—loan portfolios, insurance reserves, investments—indicating where the company’s capital is tied up and what credit or interest-rate risks it faces. Rapid asset growth can signal future revenue potential but also raises the importance of asset quality and underwriting standards.
Details the size and composition of assets held in each segment—loan portfolios, insurance reserves, investments—indicating where the company’s capital is tied up and what credit or interest-rate risks it faces. Rapid asset growth can signal future revenue potential but also raises the importance of asset quality and underwriting standards.
Data provided by:
The Fly
The FlyFinance of America Companies Earnings Call Summary
Earnings Call Date:Mar 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call emphasizes strong operational momentum, large year-over-year improvements in adjusted earnings and revenue, meaningful originations growth, technological/digital gains (AI-powered conversion improvements and faster digital funnel metrics), and improved cash flow and capitalization. Key risks highlighted were GAAP volatility driven by noncash fair-value adjustments, remaining corporate leverage and near-term capital allocation trade-offs that constrain share repurchases. Management provided clear plans to pay down debt and reiterated 2026 growth and earnings guidance, indicating confidence in sustainability of the improving underlying economics.Positive Updates
Large Adjusted Earnings Improvement
Full-year adjusted net income of $74 million ($3.04 per share), up $60 million year-over-year, representing a 429% increase; full-year adjusted EBITDA of $143 million, a 138% increase versus 2024.
Negative Updates
Fourth Quarter GAAP Loss and Fair-Value Volatility
GAAP net loss in Q4 of $21 million (−$1.30 per basic share) driven by noncash fair value movements on residual assets; management highlighted that fair-value adjustments can shift quarter-to-quarter and materially impact GAAP results.
Read all updates
Q4-2025 Updates
Positive
Negative
Large Adjusted Earnings Improvement
Full-year adjusted net income of $74 million ($3.04 per share), up $60 million year-over-year, representing a 429% increase; full-year adjusted EBITDA of $143 million, a 138% increase versus 2024.
Read all positive updates
Company Guidance
Management guided 2026 volume growth of 15%–25%, implying funded originations of $2.8–$3.1 billion, and provided adjusted EPS guidance of $4.25–$4.75; they expect cash flows from originations and capital markets similar to 2025 (~$150 million) to fund the expected Q2 PHH acquisition and to retire $150 million of senior secured corporate debt in 2026 (leaving about $40 million of convertible notes and $150 million of exchangeable corporate bonds convertible to equity), noted the second half of 2025 produced $47 million of adjusted net income or $2.05 adjusted EPS (an annualized $4.10 run rate), and said current rates should drive Q1 2026 fair‑value adjustments to more than offset the Q4 2025 fair‑value headwind; for context, 2025 results included adjusted net income of $74 million ($3.04 per share), adjusted EBITDA of $143 million, total revenue of $497 million, and $2.4 billion of funded originations (Q4 $619 million).Finance of America Companies Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
22
Negative
Cash Flow
18
Very Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.95B | 1.95B | 1.57B | 686.96M | 0.00 |
| Gross Profit | 1.79B | 270.64M | 177.03M | -32.38M | 0.00 |
| EBITDA | 1.87B | 81.76M | -119.30M | -278.01M | 0.00 |
| Net Income | 45.23M | 15.49M | -80.09M | -190.68M | 0.00 |
Balance Sheet | |||||
| Total Assets | 30.73B | 29.16B | 27.11B | 20.87B | 21.79B |
| Cash, Cash Equivalents and Short-Term Investments | 324.65M | 47.38M | 46.48M | 61.15M | 143.49M |
| Total Debt | 30.21B | 28.72B | 26.63B | 20.12B | 20.31B |
| Total Liabilities | 30.34B | 28.84B | 26.84B | 20.47B | 20.71B |
| Stockholders Equity | 323.87M | 255.30M | 232.31M | 253.93M | 387.90M |
Cash Flow | |||||
| Free Cash Flow | -429.75M | -423.81M | -71.57M | 1.41B | -114.72M |
| Operating Cash Flow | -429.75M | -423.81M | -71.57M | 1.41B | -96.59M |
| Investing Cash Flow | 854.89M | 114.80M | 158.14M | -1.82B | -1.62B |
| Financing Cash Flow | -402.45M | 386.21M | -139.23M | 225.21M | 1.67B |
Finance of America Companies Technical Analysis
Neutral
19.35
Price Trends
19.44
Negative
21.39
Negative
22.71
Negative
Market Momentum
-0.40
Negative
54.02
Neutral
75.11
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOA, the sentiment is Neutral. The current price of 19.35 is above the 20-day moving average (MA) of 17.20, below the 50-day MA of 19.44, and below the 200-day MA of 22.71, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 54.02 is Neutral, neither overbought nor oversold. The STOCH value of 75.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FOA.
Finance of America Companies Risk Analysis
Finance of America Companies disclosed 71 risk factors in its most recent earnings report. Finance of America Companies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Finance of America Companies Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $148.62M | 28.48 | 0.54% | 10.37% | 10.48% | -30.67% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $747.89M | -193.38 | 10.79% | ― | 2.31% | -27.81% | |
53 Neutral | $312.77M | 5.10 | 14.78% | ― | 93.57% | -106.02% | |
53 Neutral | $724.08M | -2.27 | -27.34% | ― | 13.89% | -899.50% | |
49 Neutral | $637.36M | -7.14 | -10.77% | ― | 23.12% | 19.37% |
* Financial Sector Average
FOA
Finance of America Companies
18.47
-0.45
-2.38%
GDOT
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11.47
3.75
48.58%
PRAA
Pra Group
18.83
0.78
4.32%
WRLD
World Acceptance
151.49
25.31
20.06%
YRD
Yiren Digital
1.72
-3.42
-66.54%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.