Finance of America turned a profit in the first quarter following two consecutive periods of losses. 

The Texas-based reverse mortgage company posted a net income of $35 million last quarter, a significant jump from the $21 million loss recorded in the fourth quarter, but still well below the $80 million it made in the first quarter of last year, FOA announced on an earnings call Tuesday. 

But on an adjusted basis, the lender totaled $26 million in net income, a $12 million improvement from the fourth quarter and a $13 million increase from a year earlier. Adjusted earnings per share came out to $1.10, more than double that of the first quarter of 2025 and well above the a S&P Capital IQ Pro consensus estimate of $0.84.

"The first quarter of 2026 was an outstanding quarter, with operational momentum in originations driving an acceleration in volumes, excellent profitability in our portfolio management segment and steady improvement in our financial results, liquidity and capital position," CEO Graham Fleming said on the call. "Our focus is on translating that momentum into consistent, repeatable growth through the rest of 2026 and in the years ahead."

FOA's retirement solutions produced $14 million in adjusted net income, while its portfolio management generated $28 million, a 155% increase from the fourth quarter. This performance was primarily driven by $1.7 billion of securitization activity, Chief Financial Officer Matt Engel said.

Revenue was also up 62% quarter over quarter to $120 million, but down 28% year over year, according to the earnings report.

FOA's previously announced purchase of reverse mortgage servicing rights from PHH Mortgage was modified. The $9.6 billion servicing sales originally planned were reduced to $5.1 billion last week after review by government securitization guarantor Ginnie Mae.

The transaction will now be completed in the two different phases, with the first, consisting of the origination, marketing and subservicing components, set to close in May, while the second phase, which includes home equity conversion mortgage servicing rights, depends on further approval from Ginnie, Fleming said.

The company also completed the remaining purchase of Blackstone's equity position in February.

FOA's funded volume results

The lender's funded volume increased on a yearly basis, but dipped quarter over quarter. Its funded volume totaled $596 million in the first quarter, up from $561 million the year prior and down from $619 million in the fourth quarter, the report showed.

The quarterly decrease was a result of seasonal patterns, and volume picked up in March, in large part due to Helix, FOA's proprietary, AI-enhanced platform, the lender said.

"What we saw in March was the work that we've been doing actually producing the results that we expected it to," President Kristen Sieffert said. "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 into the year."

First-quarter submissions also reached a new high of $918 million, a 20% increase year over year, Sieffert said. 

As submissions convert to fundings, FOA expects continued growth in revenue and earnings. The lender maintained its origination volume guidance for the full year between $2.8 billion and $3.1 billion, but increased its adjusted earnings per share guidance from between $4.25 and $4.75 to between $4.50 and $5.