On Tuesday, Finance of America (NYSE:FOA) discussed first-quarter financial results during its earnings call. The full transcript is provided below.
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<h2>Summary</h2>
Finance of America reported net income of $35 million and adjusted net income of $26 million, with adjusted earnings per share up 112% year over year to $1.10.

The company's proprietary platform, Helix, enhanced by AI component Joy, is driving customer acquisition and cost efficiency improvements, positioning the company for future growth in a significantly underpenetrated market.

Finance of America plans to retire $150 million of senior secured corporate notes to strengthen its balance sheet and is revising its full-year adjusted earnings per share guidance upwards to between $4.50 and $5, reflecting strong first-quarter performance.

<h2>Full Transcript</h2>
Matt
Matt thank you Kristin and good afternoon all. Graham already gave you the headline results, so I'll give you some added color to the quarter which you can find in today's earnings release and summarize by segment on slide 11. As mentioned, we generated 35 million of net income and 26 million of adjusted net income. Adjusted earnings per share of $1.10 was up 112% year-over-year. Starting with Retirement Solutions, which represents our originations platform, adjusted net income was 14 million, down from the fourth quarter due to the typical seasonality in originations, but up substantially year-over-year, in fact up by 56%. Driving these results was the higher conversion rates Kristin mentioned, as well as improved revenue margins which increased year-over-year, reflecting the strong execution we are seeing as proprietary production continues to grow. Portfolio management delivered strong results for the quarter, generating 28 million in adjusted net income. Performance was driven primarily by 1.7 billion of securitization activity across both proprietary Reverse and Home Equity Conversion Mortgage (HECM) buyouts. Results benefited from favorable market conditions including tight spreads and relatively lower interest rates, as well as the timing of execution within the quarter. While timing can vary quarter to quarter, our results reflect the strength of our platform and our ability to consistently identify and execute on attractive capital markets opportunities. Corporate segment adjusted Earnings, which reflects overhead and interest expense on our non Funding debt was materially in line with prior quarters, reflecting reduced non funding interest expense offset by investments in technology. Overall, these results drove a sequential increase in tangible equity to 268 million, or approximately $15 per share. With respect to our valuation, we believe the growing origination and earnings power that we continue to demonstrate will over time warrant a higher multiple on both an earnings and tangible equity basis. Turning to key balance sheet Metrics on slide 12, you can see that our cash balances increased from 90 million at the end of 2025 to to 108 million at the end of the first quarter and are up by 108% year-over-year. During the quarter we generated 58 million in cash flow from our originations and capital markets activities and utilized $40 million to complete the repurchase of Blackstone's equity position at this time. We view our plan to retire the 150 million balance of our senior secured corporate notes later this year as the most prudent use of our liquidity and capital. In the near term, this deleveraging plan will create a very strong balance sheet which we view as an appropriate foundation for the valuable operating franchise we have built. Having said that, given the strong results we posted this quarter, we also see considerable value in our own shares. We expect to revisit capital allocation priorities as we make progress against the deleveraging plan. If you turn to slide 13, I'll conclude my prepared remarks by giving you an update on our guidance for 2026. We are maintaining our funded volume outlook 2.8 to 3.1 billion. We're also increasing our guidance for full year adjusted earnings per share above our previously stated range to between $4.50 and $5 per share, reflecting the strong first quarter performance and the momentum we are seeing in our business. With that, I'd like to ask the operator to open your call for questions.

Timothy Dagustiono (Equity Analyst)
Yeah, hi. Thank you. Congrats on the quarter, So, on origination volume, it sounds like March was a pretty strong month and I was wondering if you could add some color as to maybe why March was stronger than February, January. And if that is, that volume that was seen in March persisted through April and into the beginning of. Beginning of May. Thank you.

Matt
Hi Tim. Yeah, I think a couple of things. One I mentioned there's a normal seasonality, right, So our lead generation capabilities in November and December are always curtailed a little bit just from the holiday periods at the end of November and December, of course. So that will lead naturally to some lower fundings in January and February. But as you start to get into the new year and start to crank that engine back up, you start to see a lead flow come in, which really starts to kick in in February, March. That's just kind of the normal seasonal stuff. And maybe let Kristen expand on the improved performance we're seeing from that marketing spend as well.

Kristin
Yeah, I touched on Helix and really what we saw in March was the work that we've been doing actually producing the results that we expected it to starting to come together in March. So you know, we really started to hit a different speed as it relates to our origination volume in March as a result. And we expect that to continue for the year.

Timothy Dagustiono (Equity Analyst)
Okay, great. That's, that's super helpful. And then on the funded volume by product, especially thinking about the first quarter, obviously it shifted more towards that proprietary product. But I guess regarding originations in the first quarter from the HECM product and the proprietary product, was there any changes in demand or any, any color you can provide on how homeowners are interacting with each product? Is the proprietary product gaining more traction just kind of color on how homeowners are interacting? Thank you.

Kristin
Homeowners typically choose the product that best suits their needs, which in most cases is a function of the amount of proceeds relative to the debt that they have and their home value. So where we see proprietary as natural fits are more of the jumbo home sizes, on our traditional suite. But the, the difference for us in Q1 is we're really starting to see our second lien product, you know, increase in originations. And those, those products are for people that really have a different use case in the sense that, they're happy with their first mortgage, typically a low interest rate, they can afford that payment, but they have a tremendous amount of home equity that they'd like to tap and can't afford or don't want another payment to impact their cash flow. So for HECM versus Home Safe on the traditional side, it's typically a function of which product provides the customer access to the most funds and dependent on Property value and then on the HomeSafe second lien. It's based on what I just described. Borrowers looking for a different alternative.

Timothy Dagustiono (Equity Analyst)
Okay, great. Thank you. I'll jump back in the queue.

OPERATOR
A reminder, if you would like to ask a question, please press star one on your handheld device. And we have a follow up question from Timothy Dagustiono from B. Riley Securities. Please go ahead.

Timothy Dagustiono (Equity Analyst)
Awesome. The third question here, I just wanted to see if you had any more updates or just kind of of anything else regarding the PHH acquisition. I know in the slide deck it was mentioned I was progressing, but I don't know if there's any additional color you can provide. Thank you.

Matt
Yeah, all the additional information, Tim, will be in the 8K that we filed after the market today. So as I said in my remarks, we've bifurcated the transaction into the originations, the marketing of our product and some servicing which we expect to close here in May. We have a smaller pool of HECM MSR in front of Ginnie Mae, which we will work with Ginnie Mae and gain the appropriate approvals and then close on that when the timing is correct and we receive that approval.

Timothy Dagustiono (Equity Analyst)
Okay, great. Thank you so much for taking the questions. Congrats on the quarter.

OPERATOR
We have reached the end of the Q and A session. I will now turn the call back to Graham Fleming for closing remarks.

Graham Fleming
Yeah, thank you. The takeaway from the first quarter is straightforward. You know, we're seeing clear improvement in the underlying drivers of the business and that improvement is starting to translate into stronger production and financial results. And with that, we look forward to updating you in August with our Q2 results. So thank you everybody for joining the call today.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.

Finance of America (NYSE:FOA) reported Q1 2026 earnings, with net income of $35 million and adjusted earnings per share of $1.10, up 112% year-over-year. The company plans to retire $150 million in corporate notes to strengthen its balance sheet and has revised its full-year adjusted EPS guidance to $4.50-$5.00. The proprietary platform, Helix, enhanced by AI, is driving customer acquisition and cost efficiency. Cash balances increased to $108 million, with a strong focus on deleveraging and capital allocation priorities moving forward.

Full Transcript: Finance of America Q1 2026 Earnings Call