Finance of America posted another net loss in the fourth quarter, but saw significant profit increases for 2025 as a whole.

The reverse mortgage company reported a $21 million loss from continuing operations in the fourth quarter, a $7-million improvement from the previous quarter, FOA revealed on an earnings call Tuesday. On an adjusted basis, the company reported $14 million in net income, down from $33 million in the third quarter.

For the entire year, FOA saw its profits jump 175%, from $40 million to $110 million, and 429% on an adjusted basis, from $14 million to $74 million, the company reported.

The results reflect the progress the company has made "improving earnings quality and capitalizing on operating leverage as the platform scales," CEO Graham Fleming said during the call.

The company's fourth quarter results were largely impacted by fair value movements, but adjustments in the first quarter this year are expected to more than offset them, as interest rates have dropped and spreads have tightened thus far, Chief Financial Officer Matt Engel said during the call.

FOA's funded volume increased on a quarterly and yearly basis again. Its funded volume hit $619 million in the fourth quarter, up from $603 in the third quarter, and $2.4 billion for the whole year, compared with $1.9 billion in 2024, reflecting continued demand for home equity solutions, the company said in a press release.

"In a rate sensitive environment, this growth reflects improved funnel productivity and the durability of our category leadership," President Kristen Sieffert said during the call.

FOA's plans for 2026

The company paid down $117 million of corporate debt and working capital facilities and used an additional $40 million to acquire the first half of Blackstone's equity position last year.

FOA has similar priorities this year, as it completed the second half of the Blackstone purchase in February. The company also anticipates that cash flows from core origination and asset level capital financing activities will be sufficient to fund the acquisition of Onity's PHH Mortgage Corp.'s multibillion-dollar servicing rights portfolio and the pay down of $150 million in senior secured notes, Engel said.

The company secured a $50 million equity investment from Blue Owl in December as well, part of a $2.5-billion commitment.

FOA's focus is on retiring corporate debt instead of repurchasing shares, Engel said.

"There's certainly arguments on both sides of that equation," he added. "Removing the corporate debt overhang is beneficial. [It] helps rating agencies' overall perception of the company."