Revenue remains highly erratic, fluctuating between $275.7 million and $712.2 million over the last ten quarters, while operating margins remain thin at 7.1% as of 2026Q1.
| Net Interest Income | 201.25M | 203.2M | 228.43M | 238.26M | 177.56M | -85.47M | 102.57M | 120.19M | 0 |
| NII Growth % | -36% | -11.05% | -4.13% | 34.19% | 307.73% | -183.33% | -14.66% | - | - |
| Net Interest Margin % | 0.64% | 0.66% | 0.78% | 0.88% | 0.85% | -0.39% | 0.52% | 0.72% | 0% |
| Interest Income | 1.91B | 1.92B | 1.91B | 1.63B | 896.89M | 56.59M | 752.26M | 786.56M | 0 |
| Interest Expense | 1.71B | 1.72B | 1.68B | 1.39B | 719.34M | 142.06M | 649.69M | 666.38M | 0 |
| Loan Loss Provision | -365.54M | 0 | 0 | 0 | 0 | -79.84M | 0 | 0 | 0 |
| Non-Interest Income | 184.4M | 208.77M | 42.21M | -61.23M | -209.94M | 1.26B | 1.64B | 727.41M | 789.26M |
| Non-Interest Income % | 8.82% | 9.81% | 2.17% | -3.9% | -30.56% | 95.71% | 68.51% | 48.05% | 100% |
| Total Revenue | 2.09B | 2.13B | 1.95B | 1.57B | 686.96M | 1.32B | 2.39B | 1.51B | 789.26M |
| Revenue Growth % | 51.31% | 9.2% | 24.25% | 128.39% | -47.87% | -44.83% | 57.79% | 91.82% | - |
| Non-Interest Expense | 259.69M | 298.87M | 227.83M | 343.87M | 310.62M | 1.05B | 1.24B | 770.02M | 741.73M |
| Efficiency Ratio | 12.42% | 14.04% | 11.69% | 21.92% | 45.22% | 79.6% | 51.86% | 50.86% | 93.98% |
| Operating Income | 491.49M | 113.1M | 42.82M | -166.84M | -343M | 206.64M | 500.26M | 77.58M | 55.53M |
| Operating Margin % | 23.5% | 5.31% | 2.2% | -10.63% | -49.93% | 15.68% | 20.94% | 5.12% | 7.04% |
| Operating Income Growth % | - | 164.15% | 125.66% | 51.36% | -265.99% | -58.69% | 544.84% | 39.7% | - |
| Pretax Income | 67.66M | 113.1M | 42.82M | -166.84M | -343M | -1.2B | 500.26M | 77.58M | 47.53M |
| Pretax Margin % | 3.24% | 5.31% | 2.2% | -10.63% | -49.93% | -90.77% | 20.94% | 5.12% | 6.02% |
| Income Tax | 2.67M | 3.52M | 2.4M | -593K | -17.13M | 19.53M | 2.34M | 949K | 286K |
| Effective Tax Rate % | 3.94% | 3.11% | 5.6% | 0.36% | 4.99% | -1.63% | 0.47% | 1.22% | 0.6% |
| Net Income | 32.53M | 45.23M | 15.49M | -80.09M | -190.68M | -251.94M | 518.39M | 54.41M | 32.06M |
| Net Margin % | 1.56% | 2.12% | 0.79% | -5.1% | -27.76% | -19.12% | 21.7% | 3.59% | 4.06% |
| Net Income Growth % | -38.89% | 192.06% | 119.34% | 58% | 24.31% | -148.6% | 852.71% | 69.71% | - |
| Net Income (Continuing) | 64.99M | 109.58M | 40.42M | -166.25M | -325.87M | -1.18B | 497.91M | 76.63M | 47.24M |
| EPS (Diluted) | 4.12 | 3.74 | 1.56 | -9.77 | -10.09 | -13.30 | 86.57 | 23.69 | 8.92 |
| EPS Growth % | 138.23% | 139.74% | 115.97% | 3.17% | 24.14% | -115.36% | 265.43% | 165.58% | - |
| EPS (Basic) | - | 4.72 | 1.57 | -9.77 | -30.61 | -41.79 | 86.57 | 23.69 | 8.92 |
| Diluted Shares Outstanding | 7.89M | 8.48M | 9.93M | 8.2M | 18.91M | 18.94M | 2.88M | 3.23M | 3.59M |
High leverage and rate sensitivity
As reported in recent financial statements, Finance of America's revenue trajectory remains highly erratic, fluctuating between $275.7 million and $712.2 million over the last ten quarters, reflecting the inherent instability of a business model currently undergoing a significant transition away from traditional forward mortgage lending operations.
The revenue profile appears heavily influenced by fair value adjustments rather than consistent origination volume growth. Investors should monitor whether the company can achieve a stable revenue baseline now that the forward mortgage segment has been exited, as current figures suggest a reliance on volatile market-to-market gains.
Based on the provided income statement data, Finance of America's gross margins have exhibited extreme variance, ranging from a negative 44.4% in 2024Q4 to a peak of 100% in 2023Q4, highlighting the significant impact of non-cash fair value accounting on the company's reported profitability metrics.
The underlying gross margin of 18.7% in 2026Q1 suggests that the core business faces substantial pressure from funding costs and the high expense of acquiring senior borrowers. This volatility indicates that the company's pricing power may be insufficient to offset the cyclical nature of its specialized reverse mortgage products.
According to the company's quarterly filings, operating income has frequently swung into negative territory, with the 2026Q1 operating margin of 7.1% demonstrating that a substantial portion of gross profit is consistently absorbed by the fixed costs required to maintain a national specialized lending and servicing platform.
The inability to consistently scale operating income faster than gross profit suggests that the company's cost structure remains rigid. This lack of operating leverage may indicate that the firm is struggling to achieve the necessary economies of scale required to justify its current national infrastructure footprint.
Analysis of the income statement reveals that net income is frequently distorted by non-operating fair value adjustments, as evidenced by the sharp swing from a $84.2 million profit in 2024Q3 to a $59.1 million loss in 2024Q4, complicating the assessment of true underlying operational earnings power.
Investors should exercise caution when evaluating EPS, as the volatility in net income appears driven more by mark-to-market fluctuations on mortgage servicing rights than by core origination efficiency. This accounting-driven noise warrants further investigation into the cash-generative capacity of the business versus its reported accounting profits.
As indicated by the company's high debt-to-equity ratio of 76.35%, Finance of America faces significant solvency risks that short-sellers may focus on, particularly if the current high-interest-rate environment continues to compress the principal limit factors essential for the company's reverse mortgage origination volume and profitability.
The reliance on warehouse credit facilities in a restrictive credit environment may limit the company's strategic flexibility. If the pivot to proprietary products fails to yield wider spreads, the firm may find itself with an unsustainable cost structure relative to its shrinking collateral base in the senior housing market.
Quick answers to the most common questions about buying FOA stock.
Finance Of America Companies Inc. (FOA) is profitable, generating $45.2M in net income for the fiscal year ending 2025 with a net profit margin of 2.1%.
Finance Of America Companies Inc. (FOA) reported an operating income of $113.1M, resulting in an operating profit margin of 5.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Finance Of America Companies Inc. (FOA) generated $412.0M in gross profit for the year, representing a gross profit margin of 19.4%. This demonstrates the company's core pricing power and production efficiency.