Finance Of America Companies Inc. Q4 FY2025 earnings call

1. In 2025, Finance of America had strong execution, with full - year gap net income of $110 million or $5.04 per share, a 175% improvement over the prior year. Adjusted net income was $74 million or $3.04 per share, up $60 million from 2024 (429% increase) and above guidance. Adjusted EBITDA was $143 million, a 138% increase. 2. Funded $2.4 billion of originations in 2025, a 24% increase from 2024, with fourth - quarter volume at $619 million. 3. In November 2025, announced acquisition of reverse mortgage servicing portfolio and related assets from PHH Mortgage (expected to close in second quarter 2026). In December 2025, announced a $50 million equity investment. 4. Fourth quarter 2025 marked inflection point, with 2025 being a year of disciplined investment in technology, AI, and marketing. In January 2026, inquiry volume increased over 75% year - over - year, speed to answer calls improved by over 60%, and Joy (AI - powered customer ambassador) delivered better conversion and responsiveness. Digital acquisition engine showed pre - qualification engagement doubled in Q1 2026, with improvements in speed to application, speed to submission, and submission rate. Google Trends data showed reverse mortgage - related search activity up ~40% year - over - year at seasonal peaks.

1. For 2026, expect volume growth of 15 - 25% year - over - year for a range of 2.8 - 3.1 billion, supporting adjusted earnings per share guidance of $4.25 - $4.75 per share. 2. Anticipate cash flows from core origination and asset level capital markets financing activities to be sufficient to fund acquisition of PHH and pay down $150 million of senior secured notes. Once senior secured notes are paid off, left with $40 million of convertible notes and $150 million of exchangeable corporate bonds. 3. Goal is to pay off $150 million of corporate debt in 2026, with expectation to retire the full amount by November 2026, and then have free cash flow for other activities including share repurchases in 2027.

Q: Nice job on the quarter. Trying to clarify balance sheet uses of cash, about funding PHH acquisition, paying down senior secured notes, and share repurchases.

A: Focus is on retiring $150 million of corporate debt in 2026. First half of Blackstone repurchase completed in February 2026. Goal is to pay off $60 million by November 2026 and the remaining $90 million, with gates open for share repurchases in 2027.

Q: Question from Bloomberg about cash generation to pay off first liens and stock buyback.

A: Goal is to pay off entire $150 million in 2026. $60 million will be paid down this year for sure, $90 million could be extended, but plan is to retire entire $150 million this year, and next year free cash flow can be used for share repurchases if option.

Q: Question about measure to run the company by.

A: Look at adjusted EPS ANI which was $3.04. 2025 finished just over high end of guidance range of $2.60 - $3.00. 2026 guidance is $4.25 - $4.75, confident of being in range. Discussing alternatives of cash, buying back shares, and extinguishing debt, focus currently on retiring corporate debt but could change as year unfolds.

Q: Discuss current warehouse financing conditions for new originations and MSRs, and if consolidation has improved funding terms.

A: Warehouse financing is ample, increased some facilities, added new financing partners, credit readily available. Pursuing financing on mortgage servicing rights asset going well, spreads generally tightened, renewing facilities and gaining improved terms like higher advance rates or lower spreads.