Finance Of America Companies (FOA) investor relations material

Executive summary

• Operational improvements and investments led to a more scalable and efficient business, with strong execution in production, operating efficiency, expense management, capital allocation, and cash generation in Q2 2026.

• Adjusted net income for Q2 2026 was $19–$19.4 million ($0.84 per share), and $45 million ($1.94 per share) for the first half, representing up to an 81% year-over-year improvement.

• Funded volume grew 21% year-over-year to $730 million in Q2 2026, with submission volume up 19% and origination gains rising to $66.6 million.

• Completed the acquisition of the Onity (formerly PHH) HECM servicing portfolio, diversifying the servicing footprint and expanding the customer base.

• Enhanced digital and AI capabilities, including the launch of the Helix platform and AI-powered customer support tools, driving productivity and digital funnel improvements.

Financial highlights

• GAAP net loss for Q2 2026 was $28.9–$29 million, primarily due to $84 million in negative fair value adjustments and a $24 million adjustment related to convertible notes.

• Adjusted net income for Q2 2026 was $19–$19.4 million, up 36% year-over-year; adjusted EPS was $0.84, up 53% year-over-year.

• Cash generation from originations and capital markets was $58 million in Q2 and $116 million for the first half of 2026, supporting major acquisitions and deleveraging.

• Book value per common share was $33.20; tangible equity per share was $13.31 as of June 30, 2026.

• Total revenues for Q2 2026 were $62–$62.5 million, down significantly year-over-year due to negative fair value changes.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: origination volumes of $2.8–$3.1 billion and adjusted EPS of $4.50–$5.00.

• Continued focus on retiring $150 million of senior secured notes in November 2026, with future capital allocation decisions to follow.

• Management expects continued growth in reverse mortgage origination volumes, supported by new product launches, strategic partnerships, and ongoing investment in technology and marketing.