Operational liquidity remains strained, evidenced by a $130.9 million cash outflow in 2026Q1 despite the company reporting a $17.5 million net profit.
| Cash from Operations | -468.53M | -429.75M | -423.81M | -71.57M | 1.41B | -96.59M | -686.09M | 101.13M | 605.88M |
| Operating CF Growth % | -105.02% | -1.4% | -492.19% | -105.08% | 1557.57% | 85.92% | -778.46% | -83.31% | - |
| Net Income | 32.53M | 103.04M | -142.63M | -218.16M | -64.42M | -251.94M | 497.91M | 76.63M | 32.06M |
| Depreciation & Amortization | 9.85M | 38.59M | 38.95M | 47.55M | 42.03M | 62.22M | 19.33M | 19.34M | 14.36M |
| Deferred Taxes | 0 | -3.52M | -2.41M | 678K | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | -589.92M | -572.77M | -276.06M | 71.77M | -689.47M | -748.44M | -1.23B | 36.5M | 466.05M |
| Working Capital Changes | 0 | -5.25M | -50.48M | 1.93M | 2.12B | 841.57M | 21.86M | -34.26M | 93.07M |
| Cash from Investing | 904.51M | 854.89M | 114.8M | 158.14M | -1.82B | -1.62B | -875.11M | -2.03B | -817.02M |
| Purchase of Investments | -828.48M | 0 | 0 | 0 | -6.28B | -5.89B | -39.26M | -128.83M | 0 |
| Sale/Maturity of Investments | 0 | 0 | 0 | 0 | 4.03B | 4.37B | 140.79M | 20.49M | 0 |
| Net Investment Activity | -828.48M | 0 | 0 | 0 | -2.26B | -1.52B | 101.52M | -108.34M | 0 |
| Acquisitions | 0 | 0 | 0 | -69.69M | 0 | -29.18M | -197K | 0 | -4.63M |
| Other Investing | 1.73B | 854.89M | 114.8M | 227.82M | 437.53M | -24.13M | -967.41M | -1.91B | -797.01M |
| Cash from Financing | -311.23M | -402.45M | 386.21M | -139.23M | 225.21M | 1.67B | 1.72B | 2.07B | 322.17M |
| Dividends Paid | -1.13M | -196K | 0 | 0 | 0 | -75M | -380.43M | -2.68M | 0 |
| Share Repurchases | -41.55M | -40.15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 0 | 49.31M | 0 | 30M | 0 | 0 | 0 | 0 | 0 |
| Net Stock Activity | -41.55M | 9.16M | 0 | 30M | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | 0 | -1000K | 1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 1000K |
| Other Financing | 3.85M | -4.04M | -10.35M | -2.73M | -7.14M | -8.95M | -11.04M | -8.98M | -5.26M |
| Net Change in Cash | 124.75M | 22.68M | 77.17M | -52.63M | -222.73M | 462.79M | 156.7M | 143.44M | 110.98M |
| Exchange Rate Effect | 0 | -9K | -27K | 24K | -36.69M | 512.18M | 34K | 22K | -44K |
| Cash at Beginning | 324.65M | 301.97M | 224.8M | 277.44M | 463.64M | 849.91K | 382.66M | 239.22M | 128.24M |
| Cash at End | 376.61M | 324.65M | 301.97M | 224.8M | 240.91M | 463.64M | 539.36M | 382.66M | 239.22M |
| Interest Paid | 209.64M | 0 | 0 | 308.38M | 0 | 0 | 169.36M | 159.16M | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 1.45M | 698K | 0 |
| Free Cash Flow | -468.53M | -429.75M | -423.81M | -71.57M | 1.41B | -114.72M | -709.21M | 96.84M | 590.51M |
| FCF Growth % | -22.27% | -1.4% | -492.19% | -105.08% | 1327.22% | 83.82% | -832.38% | -83.6% | - |
Persistent negative operating cash
According to quarterly financial data, FOA consistently reports net income while simultaneously generating negative operating cash flow, as evidenced by the 2026Q1 period where a $17.5 million profit was accompanied by a $130.9 million cash outflow, suggesting significant non-cash accounting distortions within the reported earnings.
The recurring divergence between net income and operating cash flow indicates that reported profits are heavily reliant on fair value adjustments rather than realized cash generation. Investors should monitor this gap, as it suggests the company's earnings quality is low and may not support the ongoing capital requirements of its specialized lending model.
Based on reported financial statements, FOA has failed to generate positive free cash flow in any of the last ten quarters, with FCF margins reaching a low of -36.7% in 2024Q4, highlighting a structural inability to fund operations through internal cash generation during its strategic transition.
The persistent negative FCF trajectory implies that the company is reliant on external financing or balance sheet liquidation to sustain its operations. This trend warrants further investigation into whether the current business model can ever reach a self-sustaining cash flow state without further dilutive capital raises.
As reported in recent filings, FOA utilized $41.6 million for share repurchases in 2026Q1 despite experiencing a $130.9 million operating cash outflow, a decision that appears counterintuitive given the company's ongoing struggle to maintain positive liquidity and its high leverage profile.
The allocation of scarce cash toward share repurchases while the core business remains cash-flow negative may indicate a management focus on supporting equity valuation over balance sheet preservation. This strategy appears risky and may limit the company's flexibility to navigate future interest rate volatility or credit market tightening.
Analysis of the ten-quarter cumulative performance reveals a stark disconnect, where reported net income is frequently positive while operating cash flow remains deeply negative, suggesting that the company's accounting-based profitability is not translating into the tangible liquidity required to support its long-term debt obligations.
The cumulative cash burn over the last two and a half years suggests that the company's business model is structurally cash-intensive. This divergence between accounting profit and cash reality may indicate that the company is essentially consuming its own capital base to maintain its market position in the reverse mortgage sector.
Quick answers to the most common questions about buying FOA stock.
Finance Of America Companies Inc. (FOA) generated $-429.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Finance Of America Companies Inc. (FOA) reported negative free cash flow of $429.7M in 2025, indicating capital requirements exceeded cash from operations.
Finance Of America Companies Inc. (FOA) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Finance Of America Companies Inc. (FOA) returned $0.2M to shareholders via cash dividends and spent $40.1M on share repurchases. This shows the company's commitment to returning capital to its equity investors.