Finance of America Companies (FOA) AI Stock Analysis

• Market Cap: $380.96M
• Dividend Yield: N/A
• Average Volume (3M): 94.28K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: 93.57%
• EPS Growth: -106.02%
• Country: US
• Employees: 751
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 1.33
• Shares Outstanding: 7,891,348
• 10 Day Avg. Volume: 77,806
• 30 Day Avg. Volume: 94,277
• PEG Ratio: -0.15
• Price to Book (P/B): 1.09
• Price to Sales (P/S): 0.82
• P/FCF Ratio: -0.65
• Enterprise Value/Market Cap: 78.86
• Enterprise Value/Revenue: 20.59
• Enterprise Value/Gross Profit: 168.11
• Enterprise Value/Ebitda: 640.68
• 1Y Price Target: $29.50
• Price Target Upside: 23.07% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $23.00 ▼(-4.05% Downside)

Finance of America Companies' overall stock score is primarily impacted by its financial performance challenges, including declining revenues and negative profitability. While the earnings call provided some positive insights with improved adjusted net income and strategic partnerships, the technical analysis and valuation remain weak. The company's ability to address these financial issues and capitalize on strategic initiatives will be crucial for future performance.

Positive Factors

Strategic Partnerships

The partnership with Better.com enhances product offerings and market reach, potentially driving long-term growth and competitive advantage.

Operational Efficiency

Strong operational efficiency as indicated by high gross margins suggests effective cost management, supporting sustainable profitability.

Liquidity Position

Improved liquidity enhances financial flexibility, enabling the company to invest in growth opportunities and withstand market fluctuations.

Negative Factors

Declining Revenue

A declining revenue trend poses a risk to long-term growth and profitability, requiring strategic initiatives to reverse the trend.

Negative Profitability

Negative profitability indicates challenges in generating sufficient returns, impacting long-term financial health and shareholder value.

Cash Flow Issues

Negative cash flows highlight liquidity challenges, limiting the company's ability to fund operations and growth without external financing.

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 provides residential mortgage loans to the government sponsored entities; government-insured agricultural lending solutions to farmers; product development, loan securitization, loan sales, risk management, asset management, and servicing oversight services to enterprise and third-party funds; and ancillary business services, title agency and title insurance services, mortgage servicing rights valuation and trade brokerage, transactional fulfillment services, mortgage loan third party review or due diligence services, and appraisal and capital management services to residential mortgage, student lending, and commercial lending industry customers. The company was founded in 2013 and is based in Irving, Texas.

How the Company Makes Money

Finance of America Companies generates revenue primarily through the origination and servicing of mortgage loans. The company earns income from origination fees, interest income on mortgage loans, and servicing fees charged to mortgage holders. Additionally, FOA may profit from selling loans to investors in the secondary mortgage market, which provides liquidity and allows the company to manage capital efficiently. The company also engages in investment management services, earning fees for managing investment portfolios and funds. Strategic partnerships with financial institutions and technology firms enhance their offerings and expand their market reach, further contributing to their revenue streams.

Finance of America Companies Financial Statement Overview

Summary

Finance of America Companies faces significant financial challenges, with declining revenues and profitability issues. While operational efficiency is evident in high gross and EBIT margins, the company struggles with negative net income and cash flow. The balance sheet shows improved leverage, but the negative return on equity highlights ongoing profitability concerns. Overall, the company needs to address revenue growth and cash flow management to improve its financial health.

Income Statement

The income statement shows a mixed performance. The TTM data indicates a negative net profit margin of -0.26%, reflecting a loss-making period. Revenue has decreased by 10.19% compared to the previous period, indicating a declining trend. However, the gross profit margin remains strong at 96.03%, suggesting efficient cost management. The EBIT and EBITDA margins are also high at 93.63% and 96.58%, respectively, indicating operational efficiency despite the net loss.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 8.24% in the TTM, which is relatively low compared to previous years, indicating improved leverage management. However, the return on equity is negative, reflecting losses and potential inefficiencies in generating returns for shareholders. The equity ratio is not provided, but the overall leverage remains a concern.

Cash Flow

The cash flow statement highlights challenges with negative operating and free cash flows in the TTM. The free cash flow growth rate is positive at 18.18%, showing some improvement. However, the operating cash flow to net income ratio is negative, indicating cash flow issues relative to earnings. The free cash flow to net income ratio is 1.0, suggesting that free cash flow aligns with net income, but both are negative.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.95B	1.57B	686.96M	0.00	2.39B
Gross Profit	178.71M	270.64M	177.03M	-32.38M	0.00	1.74B
EBITDA	46.89M	81.76M	-119.30M	-278.01M	0.00	519.58M
Net Income	6.04M	15.49M	-80.09M	-190.68M	0.00	518.39M
Balance Sheet
Total Assets	30.66B	29.16B	27.11B	20.87B	21.79B	19.57B
Cash, Cash Equivalents and Short-Term Investments	402.39M	47.38M	46.48M	61.15M	143.49M	247.29M
Total Debt	30.16B	28.72B	26.63B	20.12B	20.31B	18.46B
Total Liabilities	30.29B	28.84B	26.84B	20.47B	20.71B	18.94B
Stockholders Equity	283.19M	255.30M	232.31M	253.93M	387.90M	628.18M
Cash Flow
Free Cash Flow	-444.51M	-423.81M	-71.57M	1.41B	-114.72M	-709.21M
Operating Cash Flow	-444.51M	-423.81M	-71.57M	1.41B	-96.59M	-686.09M
Investing Cash Flow	416.31M	114.80M	158.14M	-1.82B	-1.62B	-875.11M
Financing Cash Flow	210.28M	386.21M	-139.23M	225.21M	1.67B	1.72B

Finance of America Companies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.97
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 23.97 is above the 20-day moving average (MA) of 22.90, above the 50-day MA of 22.80, and above the 200-day MA of 22.85, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 58.73 is Neutral, neither overbought nor oversold. The STOCH value of 69.34 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	70 Outperform	$381.05M	2.21	12.53%	9.52%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WRLD	67 Neutral	$784.03M	14.89	14.57%	―	2.31%	-27.81%
QD	63 Neutral	$805.82M	7.29	6.75%	―	-62.48%	1441.74%
PRAA	61 Neutral	$635.17M	―	-31.97%	―	13.89%	-899.50%
GDOT	52 Neutral	$681.70M	―	-5.09%	―	23.12%	19.37%
FOA	50 Neutral	$380.96M	―	-0.27%	―	93.57%	-106.02%

Finance of America Companies Corporate Events

Finance Of America Q3 2025 Earnings Call Highlights

Finance Of America Companies Inc. recently held its third-quarter 2025 earnings call, revealing a generally positive sentiment despite some challenges. The company demonstrated strong financial performance with notable improvements in adjusted net income and EBITDA. This success was supported by record-breaking securitization and strategic partnerships. However, the company faced a GAAP net loss for the quarter, attributed to external market factors, and is expected to meet the lower end of its full-year guidance.

Finance of America Reports Strong Year-to-Date Growth

Finance of America Companies Inc., headquartered in Plano, Texas, is a leading provider of home equity-based financing solutions, primarily serving the retirement sector and offering capital markets and portfolio management services.

Finance of America Completes Consent Transactions Agreement

On October 21, 2025, Finance of America Funding LLC completed consent transactions as part of a Consent Support Agreement involving several subsidiaries and holders of its senior secured notes. The transactions included entering into Supplemental Indentures allowing restricted payments for equity repurchase and changes in treatment of proceeds from certain instruments, impacting the company’s financial operations and stakeholder interests.

The most recent analyst rating on (FOA) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Finance of America Companies stock, see the FOA Stock Forecast page.