Q2 2026 Finance of America Companies Inc Earnings Call Transcript
Key Points
- Adjusted net income of $19 million, or $0.84 per share, in Q2 2026, with first-half adjusted EPS of $1.94, an 81% improvement year-over-year.
- Strong demand with submissions exceeding $1 billion in Q2, up 11% sequentially and 19% year-over-year, and funded volume up 21% year-over-year to $730 million.
- Improved operational efficiency, with funded loans per call center loan officer up nearly 30% sequentially and retail funded loans up 33% year-over-year.
- Completed the acquisition of a $5.2 billion HECM MSR portfolio from Onity, diversifying servicing footprint and creating cross-selling opportunities.
- Generated $58 million in cash from originations and capital markets activities in Q2, enabling debt interest payments and maintaining strong cash balances.
- Reaffirmed full-year guidance of funded volume between $2.8 billion and $3.1 billion and adjusted EPS between $4.50 and $5.00.
- Proprietary product submissions and fundings increased approximately 20% and 25%, respectively, expanding the addressable market.
- GAAP net loss of $29 million in Q2, driven by $84 million in non-cash fair value adjustments, including a $24 million charge related to convertible notes due to stock price increase.
- Interest rate volatility negatively impacted gain on sale margins, particularly on the proprietary side, with potential for continued margin volatility.
- Tangible equity value per share declined slightly in Q2, primarily due to the GAAP loss from fair value adjustments.
- Higher personnel and marketing expenses in Retirement Solutions to support future production, which could pressure near-term profitability.
- The company's primary capital allocation focus is retiring $150 million of senior secured notes in November, potentially delaying other shareholder returns like buybacks or dividends.
- Fair value of portfolio is subject to volatility from interest rates, home price appreciation, and credit spreads, with potential for further markdowns in July due to rising rates.
Ladies and gentlemen, thank you for standing by. My name is Leah, and I will be your conference moderator today. At this time, I'd like to welcome you to the Finance of America second-quarter 2026 earnings call. (Operator Instructions)
I will now turn the call over to Michael Fant, Senior Vice President of Finance. You may now begin.
Thank you, and good afternoon, everyone, and welcome to Finance of America's second-quarter 2026 earnings call. With me today are Graham Fleming, Chief Executive Officer; Kristen Sieffert, President; and Matt Engel, Chief Financial Officer.
As a reminder, this call is being recorded. And you can find the earnings release and related presentation on our Investor Relations website at [email protected].
Also, I would like to remind everyone that comments on this conference call may be forward-looking statements within the meaning of the Private Security's Litigation Reform Act of 1995, regarding the company's
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