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Finance of America Companies
(NYSE:FOA)
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Rating:58Neutral
Price Target:
$29.00
▲(49.87% Upside)
Action:Reiterated
Date:07/02/26
FOA scores mid-range primarily due to elevated fundamental risk from extreme leverage and negative recent operating/free cash flow, which outweigh improved profitability. Offsetting this, the latest earnings call was constructive with raised adjusted EPS guidance and continued volume momentum, while technicals show strong uptrend but stretched momentum (RSI/Stoch). Valuation is supportive with a low P/E, though no dividend yield data is available.
Positive Factors
Market Position in Proprietary Reverse Products
Sustaining roughly 30% share in proprietary reverse products gives FOA durable scale advantages in originations, distribution, and pricing power in the senior home-equity niche. This entrenched position supports recurring origination flow, better unit economics, and a defensible moat versus smaller competitors over the medium term.
Negative Factors
Extremely High Financial Leverage
An ~88x debt-to-equity ratio leaves FOA with a very thin equity cushion, limiting capital flexibility and increasing solvency risk if origination volumes or securitization spreads deteriorate. High leverage constrains strategic investments and makes deleveraging a multi-quarter priority, raising structural refinancing and interest-rate sensitivity.
Read all positive and negative factors
Positive Factors
Negative Factors
Market Position in Proprietary Reverse Products
Sustaining roughly 30% share in proprietary reverse products gives FOA durable scale advantages in originations, distribution, and pricing power in the senior home-equity niche. This entrenched position supports recurring origination flow, better unit economics, and a defensible moat versus smaller competitors over the medium term.
Read all positive factors
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 (FOA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$438.07M
Dividend YieldN/A
Average Volume (3M)94.28K
Price to Earnings (P/E)9.4
Beta (1Y)0.68
Revenue Growth-4.00%
EPS Growth-48.96%
CountryUS
Employees784
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)2.70
Shares Outstanding8,936,570
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)0.11
P/FCF Ratio-0.54
Enterprise Value/Market Cap70.36
Enterprise Value/Revenue14.74
Enterprise Value/Gross Profit41.03
Enterprise Value/Ebitda58.72
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.5
Revenue Forecast (FY)$495.37M
Finance of America Companies Business Overview & Revenue Model
Company Description
Finance of America Companies Inc. a financial service holding company, through its subsidiaries, provides home equity-based financing solutions for a modern retirement in the United States. The company operates through two segments: Retirement Sol...
How the Company Makes Money
FOA makes money primarily through mortgage lending and related secondary-market and servicing economics. Key revenue streams generally include: (1) loan origination revenue, earned from fees and gain-on-sale margins when FOA originates residential...
Finance of America Companies Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum and marked financial improvement driven by proprietary product growth, higher submissions and conversion metrics, robust portfolio securitization activity, and raised full-year EPS guidance. Key positives include doubled adjusted EPS year-over-year, rising tangible equity, higher funded volumes, product innovation (second-lien line of credit), and improved top-of-funnel efficiency. Areas of caution are seasonal variability in originations, dependence on favorable market timing for portfolio results, regulatory timing for the PHH-related HECM servicing rights, and ongoing investments and deleveraging priorities that will influence near-term capital allocation.Positive Updates
Strong Profitability and Earnings Upside
Net income of $35 million and adjusted net income of $26 million, or $1.10 per share, representing a 112% increase year-over-year; tangible equity rose to $268 million (≈$15 per share).
Negative Updates
Seasonality Impact on Originations Segment
Retirement Solutions adjusted net income was $14 million, down sequentially from Q4 due to typical seasonality (but still up 56% year-over-year), highlighting quarterly volatility in originations.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Profitability and Earnings Upside
Net income of $35 million and adjusted net income of $26 million, or $1.10 per share, representing a 112% increase year-over-year; tangible equity rose to $268 million (≈$15 per share).
Read all positive updates
Company Guidance
On guidance, Finance of America reaffirmed its 2026 funded volume outlook of $2.8 billion to $3.1 billion and raised full‑year adjusted EPS guidance to $4.50–$5.00 per share (after reporting Q1 adjusted EPS of $1.10, up 112% year‑over‑year), noting Q1 net income of $35 million and adjusted net income of $26 million. Management said deleveraging is the near‑term priority — including plans to retire $150 million of senior secured notes later this year — while highlighting liquidity and capital actions: $108 million of cash on hand (from $90 million), $58 million of cash flow generated in the quarter, and $40 million used to repurchase Blackstone’s equity. They pointed to continuing origination momentum underpinning the outlook (Q1 fundings $596 million, +6% YoY; submissions $918 million, +20% YoY; HomeSafe Second +32% YoY) and strong portfolio results (Portfolio Management adjusted net income $28 million driven by $1.7 billion of securitizations).Finance of America Companies Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
18
Very Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.09B | 2.13B | 1.95B | 1.57B | 686.96M | 1.32B |
| Gross Profit | 751.18M | 411.97M | 270.64M | 177.03M | -32.38M | 1.26B |
| EBITDA | 524.97M | 151.69M | 81.76M | -119.30M | -278.01M | -1.13B |
| Net Income | 32.53M | 45.23M | 15.49M | -80.09M | -190.68M | -251.94M |
Balance Sheet | ||||||
| Total Assets | 31.33B | 30.73B | 29.16B | 27.11B | 20.87B | 21.79B |
| Cash, Cash Equivalents and Short-Term Investments | 108.00M | 324.65M | 47.38M | 46.48M | 61.15M | 143.49M |
| Total Debt | 30.76B | 30.21B | 28.72B | 26.63B | 20.12B | 20.31B |
| Total Liabilities | 30.89B | 30.34B | 28.84B | 26.84B | 20.47B | 20.71B |
| Stockholders Equity | 347.70M | 323.87M | 255.30M | 232.31M | 253.93M | 387.90M |
Cash Flow | ||||||
| Free Cash Flow | -468.53M | -429.75M | -423.81M | -71.57M | 1.41B | -114.72M |
| Operating Cash Flow | -468.53M | -429.75M | -423.81M | -71.57M | 1.41B | -96.59M |
| Investing Cash Flow | 904.51M | 854.89M | 114.80M | 158.14M | -1.82B | -1.62B |
| Financing Cash Flow | -311.23M | -402.45M | 386.21M | -139.23M | 225.21M | 1.67B |
Finance of America Companies Technical Analysis
Positive
19.35
Price Trends
21.39
Positive
20.21
Positive
21.54
Positive
Market Momentum
1.58
Negative
62.36
Neutral
27.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FOA, the sentiment is Positive. The current price of 19.35 is below the 20-day moving average (MA) of 23.71, below the 50-day MA of 21.39, and below the 200-day MA of 21.54, indicating a bullish trend. The MACD of 1.58 indicates Negative momentum. The RSI at 62.36 is Neutral, neither overbought nor oversold. The STOCH value of 27.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
59 Neutral | $754.98M | ― | -7.74% | ― | 18.96% | -1025.15% | |
58 Neutral | $438.07M | 9.40 | 10.17% | ― | -4.00% | -48.96% | |
58 Neutral | $927.04M | 26.03 | 9.36% | ― | 3.70% | -54.55% | |
54 Neutral | $110.05M | -0.35 | 0.54% | 10.37% | -13.83% | -154.13% | |
48 Neutral | $705.23M | -2.56 | -26.42% | ― | 12.38% | -498.81% |
* Financial Sector Average
FOA
Finance of America Companies
25.38
2.23
9.63%
GDOT
Green Dot
13.41
2.74
25.68%
PRAA
Pra Group
18.29
2.90
18.84%
WRLD
World Acceptance
196.29
33.46
20.55%
YRD
Yiren Digital
1.23
-4.70
-79.24%
Finance of America Companies Corporate Events
Business Operations and StrategyM&A Transactions
Finance of America expands reverse mortgage servicing portfolio
Positive
Jul 1, 2026
On June 30, 2026, Finance of America Reverse LLC, a subsidiary of Finance of America Companies Inc., completed an all-cash acquisition of reverse mortgage servicing rights and certain reverse origination assets from Onity Mortgage Corporation, cov...
Business Operations and StrategyRegulatory Filings and ComplianceShareholder Meetings
Finance of America updates charter and governance structure
Neutral
Jun 30, 2026
On June 26, 2026, Finance of America Companies stockholders holding a majority of the company’s overall voting power and nearly all of the Class B voting power approved by written consent a Second Amended and Restated Certificate of Incorpor...
Executive/Board ChangesShareholder Meetings
Finance of America Stockholders Back Board, Pay and Auditor
Positive
May 21, 2026
On May 15, 2026, Finance of America Companies Inc. held its annual meeting of stockholders, with 80.89% of the total voting power represented, to act on director elections, executive compensation and auditor ratification. Stockholders elected six ...
Business Operations and StrategyM&A Transactions
Finance of America Expands Reverse Mortgage Servicing Agreement
Positive
May 5, 2026
On April 30, 2026, Finance of America Reverse amended its agreements with Onity Mortgage Corporation to expand a previously announced transaction for OMC’s reverse mortgage servicing portfolio and originations assets. FAR agreed to purchase ...
Executive/Board Changes
Finance of America Announces CAO Retirement, CFO Expands Role
Neutral
Apr 3, 2026
Finance of America Companies Inc. announced that Chief Accounting Officer Tai A. Thornock notified the company on April 2, 2026, of his decision to retire effective May 15, 2026. The company stated that his retirement is not the result of any disa...
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.