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Vestis Reports Third Quarter 2025 Results

ATLANTA–(BUSINESS WIRE)–
Vestis Corporation (NYSE: VSTS), a leading provider of uniforms and workplace supplies, today announced its results for the third quarter ended June 27, 2025.

Third Quarter 2025 Results

• Revenue of $674 million
• Operating Income of $25 million and Net Loss of $0.7 million
• Adjusted EBITDA* of $64 million
• Cash Flows Provided by Operating Activities of $23 million and Free Cash Flow* of $8 million
• Available liquidity of $290 million including $24 million cash and cash equivalents on hand

Management Commentary

“I’m pleased that our third quarter results were in line with our expectations and that we generated positive cash flow during the period,” said Jim Barber, President and CEO. “Our team has been focused on taking comprehensive actions designed to strengthen our overall results and create long-term shareholder value by unlocking operating leverage through commercial and operational excellence.”

“Since I joined the company as CEO two months ago, I have been focused on engaging in a thorough review of our business,” Mr. Barber continued. “Vestis has faced challenges, but I am optimistic about the road ahead and confident in the team’s ability to deliver for our key stakeholders. Our integrated network of assets gives us scale and reach in an attractive and growing industry.”

Third Quarter 2025 Financial Performance

Third quarter fiscal 2025 revenue totaled $673.8 million, a decrease of $24.4 million year over year or 3.5%. The decline in revenue compared to the prior year reflects a $18.0 million decrease in rental revenue, a $5.6 million decline in direct sales revenue and a $0.8 million negative impact of foreign exchange on currency. The decrease in rental revenue was primarily due to a $14.6 million decline from lost business in excess of new business, and a $3.4 million decline in revenue related to existing business. The decline in direct sales revenue was primarily attributable to a $4.3 million unfavorable impact from the previously anticipated loss of a national account customer. Excluding that, direct sales decreased $1.3 million when compared to the prior year.

Gross profit for the third quarter of fiscal 2025 was $182.1 million, compared to $202.5 million in the third quarter of fiscal 2024, a decrease of 10.1%. The decrease in gross profit compared to the prior year period is primarily attributable to the decremental margin on lost revenues, unfavorable changes in product mix and increased merchandise amortization from new installations, which more than offset the incremental margin from new business and a decline in delivery costs.

Selling, general and administrative (“SG&A”) expenses were $122.3 million in the third quarter of fiscal 2025, which was $7.7 million lower than the same period in the prior year. The year-over-year decrease in SG&A was due primarily to a $6.0 million decline in share-based compensation, a $3.6 million decrease in separation related costs and a $2.6 million reduction in other administrative costs, offset by a $4.5 million increase in selling expenses related to additional field sales personnel.

Interest expense was $22.5 million in the third quarter of fiscal 2025, compared to $29.9 million in the prior year period. The $7.4 million year-over-year decrease in interest expense reflects a decrease in net term loan borrowings resulting from the receipt of net proceeds from establishing the accounts receivable securitization facility during the fiscal fourth quarter of 2024.

Net loss was $0.7 million or $(0.01) per diluted share, in the third quarter of fiscal 2025 versus net income of $5.0 million, or $0.04 per diluted share, in the prior year period and Adjusted EBITDA* was $64.0 million for the third quarter of 2025 as compared to $86.9 million in the third quarter of 2024.

Capital Allocation and Financial Position

During the third quarter of 2025, we invested $14.9 million in property and equipment, the majority of which is related to market center facility improvements.

Net cash provided by operating activities was $22.9 million for the third quarter of 2025 and Free Cash Flow* was $8.0 million for the quarter, a decrease of $25.8 million and $19.7 million, respectively, from the comparative prior year periods. The reduction in cash flow was primarily due to the decrease in earnings and the current quarter includes the impact of allowable deferred cash tax payments from the first half of fiscal 2025 of $9.6 million.

As of June 27, 2025, Vestis had total cash and excess availability under its revolving credit facility of $290 million as compared to $324 million at the end of the third quarter of 2024. Total debt outstanding at the end of the third quarter was $1.32 billion including principal bank debt outstanding of $1.17 billion. The Net Leverage Ratio^a* was 4.50x at the end of the third quarter of fiscal 2025. Pursuant to the credit agreement, as amended, the Net Leverage Ratio cannot exceed 5.25x for any fiscal quarter ending prior to July 3, 2026.

Third Quarter 2025 Results Conference Call & Webcast

Vestis will host a conference call on Wednesday, August 6, 2025, at 8:30 a.m. Eastern Time to discuss its fiscal third quarter 2025 results.

For a live webcast of the conference call and to access the accompanying investor presentation, please visit the investor relations section of the Company’s website at www.vestis.com.

To participate in the live teleconference:

Unites States Live: 800-267-6316

International Live: 203-518-9783

Access Code: VSTSQ325

A replay of the live event will also be available on the Company’s website shortly after the conclusion of the call.

AboutVestis™

Vestis is a leader in the B2B uniform and workplace supplies category. Vestis provides uniform services and workplace supplies to a broad range of North American customers from Fortune 500 companies to locally owned small businesses across a broad set of end sectors. The Company’s comprehensive service offering primarily includes a full-service uniform rental program, floor mats, towels, linens, managed restroom services, first aid supplies, and cleanroom and other specialty garment processing.

<sup>_______________________________

a</sup> The Company incurred a net loss during the third quarter of fiscal 2025, resulting in a negative debt to net income ratio, which is the most directly comparable GAAP measure to Net Leverage Ratio.

* A non-GAAP measure, see accompanying non-GAAP measure explanations and reconciliations later in this release.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of the securities laws. All statements that reflect our expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, forecasts relating to discussions of future operations and financial performance and statements regarding our strategy for growth, future product development, regulatory approvals, competitive position and expenditures. In some cases, forward-looking statements can be identified by words such as “potential,” “outlook,” “guidance,” “anticipate,” “continue,” “estimate,” “expect,” “will,” and “believe,” and other words and terms of similar meaning or the negative versions of such words. Examples of forward-looking statements in this release include, but are not limited to, statements regarding: the potential effects of our comprehensive actions to enhance both our commercial and operational processes, and our expectations regarding our fourth quarter 2025 performance outlook. These forward-looking statements are subject to risks and uncertainties that may change at any time, and actual results or outcomes may differ materially from those that we expected. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict including, but not limited to: unfavorable macroeconomic conditions including inflationary pressures and higher interest rates; the failure to retain current customers, renew existing customer contracts and obtain new customer contracts, which could result in continued stock volatility and potential future goodwill impairment charges; competition in our industry; our ability to comply with certain financial ratios, tests and covenants in our credit agreement, including the Net Leverage Ratio; our significant indebtedness and ability to meet debt obligations and our reliance on an accounts receivable securitization facility; increases in fuel and energy costs and other supply chain challenges and disruptions, including as a result of ongoing military conflicts in Ukraine and the Middle East; implementation of new or increased tariffs and ongoing changes in U.S. and foreign government trade policies, including potential modifications to existing trade agreements and retaliatory measures by foreign governments; increased operating costs and obstacles to cost recovery due to the pricing and cancellation terms of our support services contracts; a determination by our customers to reduce their outsourcing or use of preferred vendors; the outcome of legal proceedings to which we are or may become subject; risks associated with suppliers from whom our products are sourced; challenge of contracts by our customers; currency risks and other risks associated with international operations, including compliance with a broad range of laws and regulations, including the United States Foreign Corrupt Practices Act; increases in labor costs or inability to hire and retain key or sufficient qualified personnel; continued or further unionization of our workforce; our expansion strategy and our ability to successfully integrate the businesses we acquire and costs and timing related thereto; natural disasters, global calamities, climate change, pandemics, and other adverse incidents; liability resulting from our participation in multiemployer-defined benefit pension plans; liability associated with noncompliance with applicable law or other governmental regulations; laws and governmental regulations including those relating to the environment, wage and hour and government contracting; unanticipated changes in tax law; new interpretations of or changes in the enforcement of the government regulatory framework; a cybersecurity incident or other disruptions in the availability of our computer systems or privacy breaches; stakeholder expectations relating to environmental, social and governance (“ESG”) considerations which may expose us to liabilities and other adverse effects on our business; any failure by Aramark to perform its obligations under the various separation agreements entered into in connection with the separation; and a determination by the IRS that the distribution or certain related transactions are taxable. The above list of factors is not exhaustive or necessarily in order of importance. For additional information on identifying factors that may cause actual results to vary materially from those stated in forward-looking statements, see the Company’s filings with the Securities and Exchange Commission (“SEC”), including “Item 1A-Risk Factors” in the Company’s most recent Annual Report on Form 10-K and in “Item 1A-Risk Factors” of Part II in subsequently-filed Quarterly Reports on Form 10-Q, which are available on the SEC’s website at www.sec.gov. Any forward-looking statement speaks only as of the date on which it is made, and we assume no obligation to update or revise such statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

Non-GAAP Financial Measures

Vestis reports its financial results in accordance with U.S. GAAP, but in this release and the non-GAAP reconciliations that follow, Vestis also uses the following non-GAAP measures: Adjusted EBITDA, Free Cash Flow, Net Debt, Net Leverage Ratio, and Trailing Twelve Months Covenant Adjusted EBITDA. Vestis believes that non-GAAP financial measures, both together with and in addition to the corresponding U.S. GAAP financial measure, are important supplemental measures that exclude non-cash or other items that may not be indicative of or are unrelated to Vestis’ core operating results. Vestis uses these non-GAAP financial measures with U.S. GAAP financial measures and other comparable tools to assist in the evaluation of its operating performance. Vestis believes that presentation of these measures also helps investors because the measures enable better comparisons of Vestis’ historical results and allow investors to evaluate Vestis’ performance based on the same metrics that Vestis uses to evaluate its performance and trends in its results. However, these measures have limitations as analytical tools and should not be considered in isolation or as a substitute for Vestis’ results as reported under U.S. GAAP. Specifically, you should not consider these measures as alternatives to revenue, operating income, operating income margin, net income, net income margin or net cash provided by operating activities determined in accordance with U.S. GAAP. These non-GAAP financial measures also should not be considered as measures of cash available to Vestis to invest in the growth of Vestis’ business or cash that will be available to Vestis to meet its obligations. Non-GAAP financial measures as presented by Vestis may not be comparable to other similarly titled measures of other companies because not all companies use identical calculations. These non-GAAP measures are reconciled in the tables at the end of this release.

Adjusted EBITDA

Adjusted EBITDA represents net income adjusted for provision for income taxes; interest expense, net; and depreciation and amortization (EBITDA), further adjusted for share-based compensation expense; severance; separation related charges; securitization fees; loss (gain) on sale of equity investment; third party debt amendment fees; legal reserves and settlements; gains, losses, and other items impacting comparability. Adjusted EBITDA is presented in order to reflect Vestis’ results in a manner that allows a better understanding of operational activities separate from the financial impact of decisions made for the long-term benefit of Vestis and other items impacting comparability between periods. Similar adjustments have been recorded in Adjusted EBITDA for earlier periods and similar types of adjustments can reasonably be expected to be recorded in Adjusted EBITDA in future periods.

Free Cash Flow

Free Cash Flow represents net cash provided by operating activities adjusted for purchases of property and equipment and other. Free Cash Flow is presented because it relates the operating cash flow of Vestis to the capital that is spent to continue and improve business operations, and indicates the amount of cash generated or used after capital expenditures that can be used for, among other things, investment in the Vestis business, strengthening the balance sheet, and repayment of debt obligations. Free cash flow does not represent the residual cash flow available for discretionary expenditures since there may be other nondiscretionary expenditures that are not deducted from the measure.

Net Leverage Ratio, Net Debt, Covenant Adjusted EBITDA and Trailing Twelve Months Covenant Adjusted EBITDA

Net Leverage Ratio is defined in Vestis’ credit agreement and is calculated as consolidated total indebtedness in excess of unrestricted cash (referred to herein as “Net Debt”), divided by the Trailing Twelve Months Covenant Adjusted EBITDA. Net Debt represents total principal debt outstanding, letters of credit outstanding, and finance lease obligations, less cash and cash equivalents. Covenant Adjusted EBITDA represents Adjusted EBITDA, as further modified by certain items specifically permitted under the credit agreement to assess compliance with its financial covenants. Trailing Twelve Months Covenant Adjusted EBITDA represents Covenant Adjusted EBITDA for the preceding four fiscal quarters. Vestis believes that Net Leverage Ratio and its components are useful to investors because they are indicators of Vestis’ ability to meet its future financial obligations and are measures that are frequently used by investors and creditors.

VESTIS CORPORATION CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) (In thousands, except per share amounts)
	Three Months Ended								Nine Months Ended
	June 27, 2025				June 28, 2024				June 27, 2025				June 28, 2024
Revenue	$	673,799			$	698,248			$	2,022,828			$	2,121,539
Operating Expenses:
Cost of services provided (exclusive of depreciation and amortization)		491,681				495,759				1,476,932				1,502,557
Depreciation and amortization		34,856				34,925				107,674				105,500
Selling, general and administrative expenses		122,301				130,041				391,432				385,307
Total Operating Expenses		648,838				660,725				1,976,038				1,993,364
Operating Income (Loss)		24,961				37,523				46,790				128,175
Interest Expense, net		22,495				29,857				67,921				96,715
Other Expense (Income), net		3,215				(471	)			12,270				(1,841	)
Income (Loss) Before Income Taxes		(749	)			8,137				(33,401	)			33,301
Provision (Benefit) for Income Taxes		(73	)			3,100				(5,727	)			10,033
Net Income (Loss)	$	(676	)		$	5,037			$	(27,674	)		$	23,268
Earnings (Loss) per share:
Basic	$	(0.01	)		$	0.04			$	(0.21	)		$	0.18
Diluted	$	(0.01	)		$	0.04			$	(0.21	)		$	0.18
Weighted Average Shares Outstanding:
Basic		131,812				131,543				131,719				131,486
Diluted		131,812				131,833				131,719				131,785

VESTIS CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands, except share and per share amounts)
	June 27, 2025				September 27, 2024
ASSETS
Current Assets:
Cash and cash equivalents	$	23,743			$	31,010
Receivables (net of allowances: $30,795 and $19,804, respectively)		175,789				177,271
Inventories, net		186,992				164,913
Rental merchandise in service, net		400,374				396,094
Other current assets		33,704				18,101
Total current assets		820,602				787,389
Property and Equipment, at cost:
Land, buildings and improvements		574,174				590,972
Equipment		1,170,736				1,168,142
		1,744,910				1,759,114
Less – Accumulated depreciation		(1,092,415	)			(1,088,256	)
Total property and equipment, net		652,495				670,858
Goodwill		963,027				963,844
Other Intangible Assets, net		196,370				212,773
Operating Lease Right-of-use Assets		86,539				73,530
Other Assets		189,058				223,993
Total Assets	$	2,908,091			$	2,932,387
LIABILITIES AND EQUITY
Current Liabilities:
Current maturities of financing lease obligations		32,860				31,347
Current operating lease liabilities		20,576				19,886
Accounts payable		156,661				163,054
Accrued payroll and related expenses		97,329				96,768
Accrued expenses and other current liabilities		138,440				145,047
Total current liabilities		445,866				456,102
Long-Term Borrowings		1,156,457				1,147,733
Noncurrent Financing Lease Obligations		119,014				115,325
Noncurrent Operating Lease Liabilities		78,239				66,111
Deferred Income Taxes		175,069				191,465
Other Noncurrent Liabilities		51,218				52,600
Total Liabilities		2,025,863				2,029,336
Commitments and Contingencies
Equity:
Common stock, par value $0.01 per share, 350,000,000 authorized, 131,836,607 and 131,481,967 issued and outstanding as of June 27, 2025 and September 27, 2024 ,respectively.		1,318				1,315
Additional paid-in capital		937,051				928,082
(Accumulated deficit) retained earnings		(34,330	)			2,565
Accumulated other comprehensive loss		(21,811	)			(28,911	)
Total Equity		882,228				903,051
Total Liabilities and Equity	$	2,908,091			$	2,932,387

VESTIS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
	Three months ended								Nine months ended
	June 27, 2025				June 28, 2024				June 27, 2025				June 28, 2024
Cash flows from operating activities:
Net Income (Loss)	$	(676	)		$	5,037			$	(27,674	)		$	23,268
Adjustments to reconcile Net Income (Loss) to Net cash provided by operating activities:
Depreciation and amortization		34,856				34,925				107,674				105,500
Deferred income taxes		(8,876	)			(4,431	)			(16,002	)			(10,166	)
Share-based compensation expense		(2,148	)			3,856				11,009				13,303
Loss on sale of equity investment, net		—				—				2,150				—
Asset write-down		—				208				189				980
(Gain) Loss on disposals of property and equipment		246				376				(726	)			618
Amortization of debt issuance costs		891				679				2,662				1,478
Loss on extinguishment of debt		—				—				—				3,883
Changes in operating assets and liabilities:
Receivables, net		(11,879	)			(4,307	)			1,063				(17,230	)
Inventories, net		13,091				(12,702	)			(21,487	)			21,136
Rental merchandise in service, net		(4,378	)			1,668				(4,708	)			178
Other current assets		(1,620	)			3,053				(11,888	)			(6,230	)
Accounts payable		3,664				2,137				(1,494	)			14,471
Accrued expenses and other current liabilities		8,130				29,269				19,203				54,511
Changes in other noncurrent liabilities		(7,794	)			(4,875	)			(22,718	)			(16,900	)
Changes in other assets		(1,368	)			(4,738	)			(3,879	)			(10,932	)
Other operating activities		725				(1,497	)			(72	)			(1,668	)
Net cash provided by operating activities		22,864				48,658				33,302				176,200
Cash flows from investing activities:
Purchases of property and equipment and other		(14,860	)			(20,962	)			(43,102	)			(50,787	)
Proceeds from disposals of property and equipment		167				—				5,365				—
Proceeds from sale of equity investment		—				—				36,792				—
Other investing activities		(29	)			—				(4,576	)			—
Net cash provided by (used in) investing activities		(14,722	)			(20,962	)			(5,521	)			(50,787	)
Cash flows from financing activities:
Proceeds from long-term borrowings		53,000				—				93,000				798,000
Payments of long-term borrowings		(55,000	)			(17,000	)			(85,000	)			(879,500	)
Payments of financing lease obligations		(8,808	)			(7,424	)			(25,630	)			(22,572	)
Net cash distributions to Parent		—				—				—				(6,051	)
Dividend payments		—				(4,599	)			(13,822	)			(9,199	)
Debt issuance costs		(1,628	)			—				(1,628	)			(11,134	)
Other financing activities		(242	)			(125	)			(2,037	)			(1,853	)
Net cash provided by (used in) financing activities		(12,678	)			(29,148	)			(35,117	)			(132,309	)
Effect of foreign exchange rates on cash and cash equivalents		(527	)			(109	)			69				(57	)
Increase (decrease) in cash and cash equivalents		(5,063	)			(1,561	)			(7,267	)			(6,953	)
Cash and cash equivalents, beginning of period		28,806				30,659				31,010				36,051
Cash and cash equivalents, end of period	$	23,743			$	29,098			$	23,743			$	29,098

VESTIS CORPORATION RECONCILIATION OF NON-GAAP MEASURES (In thousands)
	Consolidated							Consolidated							Consolidated
	Three Months Ended							Nine months ended							Trailing Twelve Months Ended
	June 27,				June 28,			June 27,				June 28,			June 27,				June 28,				September 27,
	2025				2024			2025				2024			2025				2024				2024
Net Income (Loss)	$	(676	)		$	5,037		$	(27,674	)		$	23,268		$	(29,972	)		$	117,240			$	20,970
Adjustments:
Depreciation and Amortization		34,856				34,925			107,674				105,500			142,955				140,292				140,781
Provision (Benefit) for Income Taxes		(73	)			3,100			(5,727	)			10,033			(4,700	)			25,389				11,060
Interest Expense		22,495				29,857			67,921				96,715			97,769				97,501				126,563
Share-Based Compensation		(2,148	)			3,856			11,009				13,303			14,042				16,190				16,336
Severance (1)		376				871			12,327				701			16,068				901				4,442
Separation Related Charges (2)		1,986				5,579			10,270				18,629			14,244				36,849				22,602
Securitization Fees		3,230				—			10,060				—			10,060				—				—
Loss (Gain) on Sale of Equity Investment		—				—			2,200				—			2,200				(51,863	)			—
Third Party Debt Amendment Charges		1,311				—			1,530				—			1,530				—				—
Legal Reserves and Settlements		1,182				3,056			3,200				3,556			4,165				3,556				4,521
Gains, Losses and Other(3)		1,468				611			(21	)			748			4,876				(2,551	)			5,644
Adjusted EBITDA (Non-GAAP)	$	64,007			$	86,893		$	192,769			$	272,452		$	273,236			$	383,503			$	352,919
Covenant Related Adjustments(4)		1,800				—			16,800				—			16,800				—				—
Covenant Adjusted EBITDA (Non-GAAP)	$	65,807			$	86,893		$	209,569			$	272,452		$	290,036			$	383,503			$	352,919

		(1) Please refer to Note 2. Severance, in the Company’s Form 10-Q for the quarter ended June 27, 2025.
		(2) Separation Related Charges include third-party expenses incurred in connection with the Company’s separation from Aramark on September 30, 2023, and the establishment of stand-alone public company operations. These costs primarily consist of rebranding initiatives, development of stand-alone technology infrastructure, and professional services.
		(3) Other includes certain costs or income items that are not individually material and do not relate to core business activities.
		(4) Includes a $15 million bad debt expense adjustment to EBITDA in the fiscal quarter ended March 28, 2025 and an adjustment of $1.8 million for the quarter ended June 27, 2025 related to a write-off of merchandise-in-service. These adjustments are solely for the purposes of determining compliance with the financial covenants in the Company’s credit agreement.

VESTIS CORPORATION RECONCILIATION OF NON-GAAP MEASURES FREE CASH FLOW, NET DEBT, NET LEVERAGE RATIO, AND PRO FORMA NET LEVERAGE (In thousands)
	Three months ended								Nine Months Ended
	June 27, 2025				June 28, 2024				June 27, 2025				June 28, 2024
Net cash provided by operating activities	$	22,864			$	48,658			$	33,302			$	176,200
Purchases of property and equipment and other		(14,860	)			(20,962	)			(43,102	)			(50,787	)
Free Cash Flow (Non-GAAP)	$	8,004			$	27,696			$	(9,800	)		$	125,413

	As of
	June 27, 2025				September 27, 2024
Total principal debt outstanding	$	1,170,500			$	1,162,500
Letters of credit outstanding		5,698				5,298
Finance lease obligations		151,874				146,672
Less: Cash and cash equivalents		(23,743	)			(31,010	)
Net Debt (Non-GAAP)	$	1,304,329			$	1,283,460
Trailing Twelve Months Adjusted EBITDA (Non-GAAP)	$	273,236			$	352,919
Covenant Related Adjustments (1)		16,800				—
Trailing Twelve Months Covenant Adjusted EBITDA (Non-GAAP)	$	290,036			$	352,919
Net Leverage Ratio (Non-GAAP) (1)		4.50				3.64
(1) Includes a $15 million bad debt expense adjustment to EBITDA in the fiscal quarter ended March 28, 2025 and an adjustment of $1.8 million for the quarter ended June 27, 2025 related to a write-off of merchandise-in-service. These adjustments are solely for the purposes of determining compliance with the financial covenants in the Company’s credit agreement.

 

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KEYWORDS: United States North America Georgia

INDUSTRY KEYWORDS: Supply Chain Management Retail Other Retail Manufacturing Specialty Textiles

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Finance of America Reports Second Quarter 2025 Results

– $3.16 in basic earnings per share or $80 million of net income from continuing operations for the quarter –

– $0.55 in adjusted earnings per share⁽¹⁾ or $14 million of adjusted net income⁽¹⁾ for the quarter –

– Entered into an agreement to repurchase the entirety of Blackstone’s equity stake in Finance of America –

PLANO, Texas–(BUSINESS WIRE)–Finance of America Companies Inc. (“Finance of America” or the “Company”)(NYSE: FOA), a leading provider of home equity-based financing solutions for a modern retirement, reported financial results for the quarter ended June 30, 2025.

Second Quarter 2025 Highlights⁽²⁾

• $3.16 in basic earnings per share or $80 million of net income from continuing operations for the quarter.
• $0.55 in adjusted earnings per share⁽¹⁾ or $14 million of adjusted net income⁽¹⁾ for the quarter.
• Adjusted EBITDA⁽¹⁾ of $30 million for the quarter.
• Funded volume of $602 million in the second quarter, exceeding the top end of the stated quarterly guidance and representing a 35% increase in funded volume from the second quarter of 2024.
• Adjusted net income⁽¹⁾ improved by $14 million compared to the second quarter of 2024 due to increased volumes and reduced operational expenses.
• Adjusted net income⁽¹⁾ totaled $27 million year to date, compared to a $7 million loss in the first half of 2024, demonstrating the results of the Company’s transformed platform.
• Total equity increased to $473 million as of June 30, 2025.
• In early August, repaid higher cost working capital facility and entered into an agreement to repurchase the entirety of Blackstone’s equity stake in Finance of America, reducing interest expense and enhancing financial flexibility.

(1) See the sections titled “Reconciliation to GAAP” and “Non-GAAP Financial Measures” for reconciliations to the most directly comparable GAAP measures and other important disclosures.

(2) The financial information presented in the highlights is for the Company’s continuing operations.

Graham A. Fleming, Chief Executive Officer commented, “Finance of America delivered another strong quarter, funding $602 million in loans and achieving our fifth consecutive quarter of growth. Our second quarter results reflect consistent execution, rising profitability, and the growing relevance of home equity solutions for retirement.

We continue to see encouraging signals from our new brand campaign and digital initiatives, which are helping to expand our reach and deepen engagement with the next generation of borrowers. As demand builds among a rapidly growing demographic, we believe Finance of America will continue to lead this market and deliver long-term value.”

(unaudited)

Second Quarter Financial Summary of Continuing Operations

($ amounts in millions, except per share data)								Variance (%)							Variance (%)										Variance (%)
		Q2’25			Q1’25			Q2’25 vs Q1’25			Q2’24				Q2’25 vs Q2’24			YTD 2025			YTD 2024				2025 vs 2024
Funded volume		$	602		$	561		7	%		$	447			35	%		$	1,163		$	871			34	%
Total revenues			177			166		7	%			79			124	%			343			154			123	%
Total expenses and other, net			95			84		13	%			83			14	%			179			173			3	%
Pre-tax income (loss) from continuing operations			82			82		—	%			(4	)		2,150	%			164			(20	)		920	%
Net income (loss) from continuing operations			80			80		—	%			(5	)		1,700	%			160			(21	)		862	%
Adjusted net income (loss)(1)			14			13		8	%			—			N/A				27			(7	)		486	%
Adjusted EBITDA(1)			30			29		3	%			10			200	%			59			10			490	%
Basic earnings (loss) per share		$	3.16		$	3.17		—	%		$	(0.20	)		1,680	%		$	6.33		$	(0.78	)		912	%
Diluted earnings (loss) per share(2)		$	2.13		$	2.56		(17	)%		$	(0.29	)		834	%		$	4.69		$	(0.88	)		633	%
Adjusted earnings (loss) per share(1)		$	0.55		$	0.52		6	%		$	—			N/A			$	1.07		$	(0.29	)		469	%

(1)		See the sections titled “Reconciliation to GAAP” and “Non-GAAP Financial Measures” for reconciliations to the most directly comparable GAAP measures and other important disclosures.
(2)		Calculated using the treasury stock, if-converted, or two-class method, except when anti-dilutive.

Balance Sheet Highlights

($ amounts in millions)(1)		June 30,			March 31,			Variance (%)
			2025			2025		Q2’25 vs Q1’25
Cash and cash equivalents		$	46		$	52		(12	)%
Securitized loans held for investment (HMBS & nonrecourse)			28,747			28,439		1	%
Total assets			30,147			29,689		2	%
Total liabilities			29,674			29,294		1	%
Total equity			473			395		20	%

• For the quarter, total equity increased from $395 million as of March 31, 2025 to $473 million as of June 30, 2025, an improvement of 20%, reflecting enhanced operational performance and positive fair value adjustments on the Company’s retained interests in securitizations resulting from improving market inputs and model assumptions.
• Additionally, tangible equity⁽²⁾ increased from $187 million as of March 31, 2025 to $275 million as of June 30, 2025, an improvement of 47%.

(1)		Numbers may not foot due to rounding.
(2)		See the sections titled “Reconciliation to GAAP” and “Non-GAAP Financial Measures” for reconciliations to the most directly comparable GAAP measures and other important disclosures.

(unaudited)

Segment Results

Retirement Solutions

The Retirement Solutions segment primarily generates revenue and earnings in the form of net origination gains and origination fees earned on the origination of reverse mortgage loans.

								Variance (%)							Variance (%)										Variance (%)
($ amounts in millions)		Q2’25			Q1’25			Q2’25 vs Q1’25			Q2’24				Q2’25 vs Q2’24			YTD 2025			YTD 2024				2025 vs 2024
Funded volume		$	602		$	561		7	%		$	447			35	%		$	1,163		$	871			34	%
Total revenue			62			52		19	%			47			32	%			114			93			23	%
Pre-tax income (loss)			10			3		233	%			(2	)		600	%			14			(6	)		333	%
Adjusted net income(1)			15			9		67	%			7			114	%			24			11			118	%

(1)

See the sections titled “Reconciliation to GAAP” and “Non-GAAP Financial Measures” for reconciliations to the most directly comparable GAAP measures and other important disclosures.

• For the quarter, the segment recognized pre-tax income of $10 million and adjusted net income of $15 million as a result of increased volumes and improved margins compared to the prior quarter.
• Compared to the second quarter of 2024, total revenue increased by 32%, primarily due to an increase in funded volume, which led to a 600% improvement in pre-tax income and a 114% improvement in adjusted net income.
• Year to date, the segment recognized pre-tax income of $14 million versus a pre-tax loss of $6 million in the first half of 2024, a 333% improvement driven by a 34% increase in funded volumes and stable expense levels.

Portfolio Management

The Portfolio Management segment primarily generates revenue and earnings in the form of net interest income and fair value changes on our portfolio assets, monetized through securitization, sale, or other financing of those assets.

								Variance (%)						Variance (%)									Variance (%)
($ amounts in millions)		Q2’25			Q1’25			Q2’25 vs Q1’25			Q2’24			Q2’25 vs Q2’24			YTD 2025			YTD 2024			2025 vs 2024
Assets under management		$	29,907		$	29,418		2	%		$	27,655		8	%		$	29,907		$	27,655		8	%
Assets excluding HMBS and nonrecourse obligations			1,838			1,664		10	%			1,624		13	%			1,838			1,624		13	%
Total revenue			130			129		1	%			41		217	%			259			79		228	%
Pre-tax income			108			105		3	%			22		391	%			213			36		492	%
Adjusted net income(1)			16			20		(20	)%			12		33	%			37			17		118	%

(1)

See the sections titled “Reconciliation to GAAP” and “Non-GAAP Financial Measures” for reconciliations to the most directly comparable GAAP measures and other important disclosures.

• For the quarter, the segment recognized pre-tax income of $108 million, an improvement against the prior quarter and second quarter of 2024 due to positive fair value adjustments on retained interests in securitizations, resulting from changes in market inputs and model assumptions, combined with an increase in accreted yield on the Company’s residual interests.
• Year to date adjusted net income increased 118% to $37 million compared to $17 million in the same period in 2024.

Finance of America Companies Inc.
Selected Financial Information
Condensed Consolidated Statements of Financial Condition
(in thousands, except share data)
(unaudited)
	June 30, 2025				March 31, 2025
ASSETS
Cash and cash equivalents	$	46,476			$	52,016
Restricted cash		190,176				199,836
Loans held for investment, subject to HMBS related obligations, at fair value		18,858,220				18,809,023
Loans held for investment, subject to nonrecourse debt, at fair value		9,888,492				9,630,150
Loans held for investment, at fair value		634,935				634,104
Intangible assets, net		198,209				207,506
Other assets, net		329,677				154,285
Assets of discontinued operations		1,264				1,936
TOTAL ASSETS	$	30,147,449			$	29,688,856
LIABILITIES AND EQUITY
HMBS related obligations, at fair value	$	18,643,094			$	18,590,357
Nonrecourse debt, at fair value		9,426,194				9,163,399
Other financing lines of credit		1,076,434				1,008,894
Notes payable, net (includes amounts due to related parties of $162,283 as of both June 30, 2025 and March 31, 2025)		383,941				379,159
Payables and other liabilities		139,350				140,709
Liabilities of discontinued operations		5,011				11,452
TOTAL LIABILITIES		29,674,024				29,293,970
EQUITY
Class A Common Stock, $0.0001 par value; 6,000,000,000 shares authorized; 11,502,488 and 11,137,524 shares issued, respectively, and 11,076,638 and 10,711,674 shares outstanding, respectively		1				1
Class B Common Stock, $0.0001 par value; 1,000,000 shares authorized; 14 shares issued and outstanding, respectively		—				—
Additional paid-in capital		959,306				961,044
Accumulated deficit		(633,763	)			(668,686	)
Accumulated other comprehensive loss		(283	)			(285	)
Noncontrolling interest		148,164				102,812
TOTAL EQUITY		473,425				394,886
TOTAL LIABILITIES AND EQUITY	$	30,147,449			$	29,688,856

Finance of America Companies Inc.
Selected Financial Information
Condensed Consolidated Statements of Operations
(in thousands, except share data)
(unaudited)
	Q2’25				Q1’25				Q2’24				YTD 2025				YTD 2024
PORTFOLIO INTEREST INCOME
Interest income	$	481,800			$	480,602			$	478,091			$	962,402			$	942,070
Interest expense		(422,336	)			(410,167	)			(412,618	)			(832,503	)			(806,422	)
NET PORTFOLIO INTEREST INCOME		59,464				70,435				65,473				129,899				135,648
OTHER INCOME (EXPENSE)
Net origination gains		56,058				46,038				40,260				102,096				79,917
Gain on securitization of HECM tails, net		10,855				10,481				11,031				21,336				21,757
Fair value changes from model amortization		(35,456	)			(40,956	)			(47,813	)			(76,412	)			(105,421	)
Fair value changes from market inputs or model assumptions		94,939				88,263				11,260				183,202				24,822
Net fair value changes on loans and related obligations		126,396				103,826				14,738				230,222				21,075
Fee income		6,739				6,346				8,096				13,085				14,418
Non-funding interest expense, net		(15,223	)			(14,912	)			(9,268	)			(30,135	)			(17,420	)
NET OTHER INCOME (EXPENSE)		117,912				95,260				13,566				213,172				18,073
TOTAL REVENUES		177,376				165,695				79,039				343,071				153,721
EXPENSES
Salaries, benefits, and related expenses		36,974				33,930				35,053				70,904				74,076
Loan production and portfolio related expenses		9,462				11,330				5,662				20,792				14,275
Loan servicing expenses		7,525				7,741				7,632				15,266				15,850
Marketing and advertising expenses		12,265				10,731				10,706				22,996				19,218
Depreciation and amortization		9,654				9,658				9,753				19,312				19,431
General and administrative expenses		13,180				12,979				16,241				26,159				33,512
TOTAL EXPENSES		89,060				86,369				85,047				175,429				176,362
IMPAIRMENT OF OTHER ASSETS		—				—				—				—				(600	)
OTHER, NET		(6,361	)			2,367				2,240				(3,994	)			3,693
NET INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES		81,955				81,693				(3,768	)			163,648				(19,548	)
Provision for income taxes from continuing operations		2,132				1,943				1,153				4,075				1,153
NET INCOME (LOSS) FROM CONTINUING OPERATIONS		79,823				79,750				(4,921	)			159,573				(20,701	)
NET LOSS FROM DISCONTINUED OPERATIONS		—				(4,750	)			(203	)			(4,750	)			(4,727	)
NET INCOME (LOSS)		79,823				75,000				(5,124	)			154,823				(25,428	)
Noncontrolling interest		44,900				44,791				(3,035	)			89,691				(15,801	)
NET INCOME (LOSS) ATTRIBUTABLE TO CONTROLLING INTEREST	$	34,923			$	30,209			$	(2,089	)		$	65,132			$	(9,627	)
EARNINGS (LOSS) PER SHARE
Basic weighted average shares outstanding		11,041,337				10,177,266				9,898,182				10,611,689				9,773,370
Basic earnings (loss) per share from continuing operations	$	3.16			$	3.17			$	(0.20	)		$	6.33			$	(0.78	)
Basic earnings (loss) per share	$	3.16			$	2.97			$	(0.21	)		$	6.14			$	(0.99	)
Diluted weighted average shares outstanding		30,137,247				30,167,024				23,084,189				30,152,054				23,013,742
Diluted earnings (loss) per share from continuing operations	$	2.13			$	2.56			$	(0.29	)		$	4.69			$	(0.88	)
Diluted earnings (loss) per share	$	2.13			$	2.43			$	(0.30	)		$	4.56			$	(1.06	)

(unaudited)

Reconciliation to GAAP

($ amounts in millions)(1)	Q2’25				Q1’25				Q2’24				YTD 2025				YTD 2024
Reconciliation of net income (loss) from continuing operations to adjusted net income (loss) and adjusted EBITDA
Net income (loss) from continuing operations	$	80			$	80			$	(5	)		$	160			$	(21	)
Add back: Provision for income taxes		(2	)			(2	)			(1	)			(4	)			(1	)
Net income (loss) from continuing operations before taxes		82				82				(4	)			164				(20	)
Adjustments for:
Changes in fair value(2)		(76	)			(76	)			(8	)			(151	)			(18	)
Amortization or impairment of intangibles and impairment of other assets(3)		9				9				9				19				20
Equity-based compensation(4)		3				2				1				5				6
Certain non-recurring costs(5)		1				—				2				1				3
Adjusted net income (loss) before taxes		19				18				—				37				(9	)
Benefit (provision) for income taxes(6)		(5	)			(5	)			—				(10	)			2
Adjusted net income (loss)		14				13				—				27				(7	)
Provision (benefit) for income taxes(6)		5				5				—				10				(2	)
Depreciation		—				—				—				1				1
Interest expense on non-funding debt		11				11				10				22				18
Adjusted EBITDA	$	30			$	29			$	10			$	59			$	10
($ amounts in millions except shares and $ per share)	Q2’25				Q1’25				Q2’24				YTD 2025				YTD 2024
GAAP PER SHARE MEASURES
Net income (loss) from continuing operations attributable to controlling interest	$	35			$	32			$	(2	)		$	67			$	(8	)
Weighted average outstanding share count		11,041,337				10,177,266				9,898,182				10,611,689				9,773,370
Basic earnings (loss) per share from continuing operations	$	3.16			$	3.17			$	(0.20	)		$	6.33			$	(0.78	)
If-converted method net income (loss) from continuing operations	$	64			$	77			$	(7	)		$	141			$	(20	)
Weighted average diluted share count		30,137,247				30,167,024				23,084,189				30,152,054				23,013,742
Diluted earnings (loss) per share from continuing operations(7)	$	2.13			$	2.56			$	(0.29	)		$	4.69			$	(0.88	)
NON-GAAP PER SHARE MEASURES
Adjusted net income (loss)	$	14			$	13			$	—			$	27			$	(7	)
Exchangeable senior secured notes interest expense(8)		3				3				—				5				—
Total	$	17			$	16			$	—			$	32			$	(7	)
Weighted average share count		30,137,247				30,167,024				23,084,189				30,152,054				23,013,742
Adjusted earnings (loss) per share	$	0.55			$	0.52			$	—			$	1.07			$	(0.29	)

	June 30, 2025			March 31, 2025
Total equity	$	473		$	395
Less: Intangible assets, net		198			208
Tangible equity	$	275		$	187

(1)		Totals may not foot due to rounding.
(2)		Changes in fair value include changes in fair value of loans and securities held for investment and related obligations due to market inputs or model assumptions, deferred purchase price obligations, contingent earnout, warrant liability, and the exchange of our senior notes.
(3)		Includes amortization or impairment of intangibles and impairment of certain other long-lived assets.
(4)		Beginning with the third quarter of 2024, the Company revised our definitions of adjusted net income (loss), adjusted EBITDA, and adjusted earnings (loss) per share to now adjust for all equity-based compensation in this line item, excluding forfeitures and accelerations associated with restructuring activities, which are included in certain non-recurring costs. Prior to the third quarter of 2024, only equity-based compensation for Replacement Restricted Stock Units (“RSUs”) and Earnout Right RSUs were included in our adjustments. As a result of this change, prior period amounts have been recast to reflect the updated presentation. Adjusted net loss decreased $1 million and $2 million for the three and six months ended June 30, 2024, respectively, from what was previously reported. The change also resulted in a decrease to adjusted loss per share of $0.05 and $0.08 for the three and six months ended June 30, 2024, respectively, from what was previously reported.
(5)		Reflects certain non-recurring costs and adjustments that management believes should be excluded as these do not relate to a recurring part of the core business operations. These items include amounts recognized for settlement of legal and regulatory matters, acquisition or divestiture-related expenses, and other one-time charges.
(6)		Income tax provision (benefit) adjustments to apply an effective combined corporate tax rate to adjusted net income (loss) before taxes.
(7)		Calculated using the treasury stock, if-converted, or two-class method, except when anti-dilutive.
(8)		Interest expense on the exchangeable senior secured notes, net of a tax effect, if dilutive, is added to adjusted net income (loss) to calculate adjusted earnings (loss) per share.

(unaudited)

Adjusted Net Income by Segment (Continuing Operations)

For the three months ended June 30, 2025
($ amounts in millions except shares and $ per share)(1)	Retirement Solutions		Portfolio Management			Corporate & Other			FOA
Pre-tax income (loss)	$	10	$	108		$	(37	)	$	82
Adjustments for:
Changes in fair value(2)		—		(86	)		11			(76	)
Amortization or impairment of intangibles and impairment of other assets(3)		9		—			—			9
Equity-based compensation(4)		—		—			2			3
Certain non-recurring costs(5)		—		—			1			1
Adjusted net income (loss) before taxes	$	20	$	22		$	(23	)	$	19
Provision (benefit) for income taxes(6)		5		6			(6	)		5
Adjusted net income (loss)	$	15	$	16		$	(17	)	$	14
Exchangeable senior secured notes interest expense(7)		—		—			3			3
Total	$	15	$	16		$	(14	)	$	17
Weighted average share count		30,137,247		30,137,247			30,137,247			30,137,247
Adjusted earnings (loss) per share	$	0.49	$	0.54		$	(0.47	)	$	0.55

For the three months ended March 31, 2025
($ amounts in millions except shares and $ per share)(1)	Retirement Solutions		Portfolio Management			Corporate & Other			FOA
Pre-tax income (loss)	$	3	$	105		$	(27	)	$	82
Adjustments for:
Changes in fair value(2)		—		(78	)		2			(76	)
Amortization or impairment of intangibles and impairment of other assets(3)		9		—			—			9
Equity-based compensation(4)		—		—			2			2
Adjusted net income (loss) before taxes	$	13	$	28		$	(23	)	$	18
Provision (benefit) for income taxes(6)		4		7			(6	)		5
Adjusted net income (loss)	$	9	$	20		$	(17	)	$	13
Exchangeable senior secured notes interest expense(7)		—		—			3			3
Total	$	9	$	20		$	(14	)	$	16
Weighted average share count		30,167,024		30,167,024			30,167,024			30,167,024
Adjusted earnings (loss) per share	$	0.31	$	0.68		$	(0.47	)	$	0.52

For the three months ended June 30, 2024
($ amounts in millions except shares and $ per share)(1)	Retirement Solutions			Portfolio Management			Corporate & Other			FOA
Pre-tax income (loss)	$	(2	)	$	22		$	(24	)	$	(4	)
Adjustments for:
Changes in fair value(2)		—			(6	)		(2	)		(8	)
Amortization or impairment of intangibles and impairment of other assets(3)		9			—			—			9
Equity-based compensation(4)		—			—			1			1
Certain non-recurring costs(5)		1			—			1			2
Adjusted net income (loss) before taxes	$	9		$	16		$	(24	)	$	—
Provision (benefit) for income taxes(6)		2			4			(6	)		—
Adjusted net income (loss)	$	7		$	12		$	(18	)	$	—
Weighted average share count		23,084,189			23,084,189			23,084,189			23,084,189
Adjusted earnings (loss) per share	$	0.27		$	0.52		$	(0.77	)	$	—

For the six months ended June 30, 2025
($ amounts in millions except shares and $ per share)(1)	Retirement Solutions		Portfolio Management			Corporate & Other			FOA
Pre-tax income (loss)	$	14	$	213		$	(63	)	$	164
Adjustments for:
Changes in fair value(2)		—		(164	)		13			(151	)
Amortization or impairment of intangibles and impairment of other assets(3)		19		—			—			19
Equity-based compensation(4)		—		—			4			5
Certain non-recurring costs(5)		—		—			1			1
Adjusted net income (loss) before taxes	$	33	$	50		$	(46	)	$	37
Provision (benefit) for income taxes(6)		9		13			(12	)		10
Adjusted net income (loss)	$	24	$	37		$	(34	)	$	27
Exchangeable senior secured notes interest expense(7)		—		—			5			5
Total	$	24	$	37		$	(29	)	$	32
Weighted average share count		30,152,054		30,152,054			30,152,054			30,152,054
Adjusted earnings (loss) per share	$	0.80	$	1.21		$	(0.95	)	$	1.07

For the six months ended June 30, 2024
($ amounts in millions except shares and $ per share)(1)	Retirement Solutions			Portfolio Management			Corporate & Other			FOA
Pre-tax income (loss)	$	(6	)	$	36		$	(50	)	$	(20	)
Adjustments for:
Changes in fair value(2)		—			(14	)		(4	)		(18	)
Amortization or impairment of intangibles and impairment of other assets(3)		19			—			1			20
Equity-based compensation(4)		1			—			4			6
Certain non-recurring costs(5)		1			—			2			3
Adjusted net income (loss) before taxes	$	15		$	23		$	(47	)	$	(9	)
Provision (benefit) for income taxes(6)		4			6			(12	)		(2	)
Adjusted net income (loss)	$	11		$	17		$	(35	)	$	(7	)
Weighted average share count		23,013,742			23,013,742			23,013,742			23,013,742
Adjusted earnings (loss) per share	$	0.48		$	0.74		$	(1.52	)	$	(0.29	)

(1)		Totals may not foot due to rounding.
(2)		Changes in fair value include changes in fair value of loans and securities held for investment and related obligations due to market inputs or model assumptions, deferred purchase price obligations, contingent earnout, warrant liability, and the exchange of our senior notes.
(3)		Includes amortization or impairment of intangibles and impairment of certain other long-lived assets.
(4)		Beginning with the third quarter of 2024, the Company revised our definitions of adjusted net income (loss), adjusted EBITDA, and adjusted earnings (loss) per share to now adjust for all equity-based compensation in this line item, excluding forfeitures and accelerations associated with restructuring activities, which are included in certain non-recurring costs. Prior to the third quarter of 2024, only equity-based compensation for Replacement RSUs and Earnout Right RSUs were included in our adjustments. As a result of this change, prior period amounts have been recast to reflect the updated presentation. Adjusted net loss decreased $1 million and $2 million for the three and six months ended June 30, 2024, respectively, from what was previously reported. The change also resulted in a decrease to adjusted loss per share of $0.05 and $0.08 for the three and six months ended June 30, 2024, respectively, from what was previously reported.
(5)		Reflects certain non-recurring costs and adjustments that management believes should be excluded as these do not relate to a recurring part of the core business operations. These items include amounts recognized for settlement of legal and regulatory matters, acquisition or divestiture-related expenses, and other one-time charges.
(6)		Income tax provision (benefit) adjustments to apply an effective combined corporate tax rate to adjusted net income (loss) before taxes.
(7)		Interest expense on the exchangeable senior secured notes, net of a tax effect, if dilutive, is added to adjusted net income (loss) to calculate adjusted earnings (loss) per share.

Webcast and Conference Call

Management will host a webcast and conference call on Tuesday, August 5th at 5:00 pm Eastern Time to discuss the Company’s results for the second quarter ended June 30, 2025. A copy of this press release will be posted prior to the call under the “Investors” section on Finance of America’s website at https://ir.financeofamericacompanies.com/.

To listen to the audio webcast of the conference call, please visit the “Investors” section of the Company’s website at https://ir.financeofamericacompanies.com/. The conference call can also be accessed by dialing the following:

1. 1-800-715-9871 (Domestic)

2. 1-646-307-1963 (International)

3. Conference ID: 5706924

Replay

A replay of the call will also be available on the Company’s website approximately two hours after the conclusion of the conference call until August 12, 2025. To access the replay, visit the “Investors” section of the Company’s website at https://ir.financeofamericacompanies.com/. The replay can also be accessed by dialing 1-800-770-2030 (United States) or 1-609-800-9909 (International). The replay pin number is 5706924.

About Finance of America

Finance of America (NYSE: FOA) is a leading provider of home equity-based financing solutions for a modern retirement. In addition, Finance of America offers capital markets and portfolio management capabilities primarily to optimize the distribution of its originated loans to investors. Finance of America is headquartered in Plano, Texas.

To learn more about Finance of America Companies Inc., please visit our investor-oriented website at www.financeofamericacompanies.com and our consumer-oriented website at www.financeofamerica.com.

Forward-Looking Statements

This release includes forward-looking statements within the meaning of the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements are not historical facts or statements of current conditions, but instead represent only the Company’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. These statements include, but are not limited to, statements related to our expectations regarding our repurchase of Blackstone’s equity stake and related transactions and our ability to realize the anticipated benefits of these transactions, the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “budgets,” “forecasts,” “anticipates,” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties that could cause actual outcomes or results to differ materially from those indicated in these statements, including those risks described below. Given the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the results or conditions described in such statements or the Company’s objectives and plans will be achieved. The Company cautions readers not to place undue reliance upon any forward-looking statements, which are current only as of the date of this release. Results for any specified quarter are not necessarily indicative of the results that may be expected for the full year or any future period. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. All subsequent written and oral forward-looking statements concerning the Company or other matters and attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above. A number of important factors exist that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to, those factors indicated in the Company’s filings with the U.S. Securities and Exchange Commission (the “SEC”).

All of these factors are difficult to predict, contain uncertainties that may materially affect actual results, and may be beyond our control. New factors emerge from time to time, and it is not possible for our management to predict all such factors or to assess the effect of each such new factor on our business. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and any of these statements included herein may prove to be inaccurate. Please refer to “Risk Factors” included in our Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 14, 2025, as amended by Amendment No. 1 to our Annual Report on Form 10-K/A, filed with the SEC on May 20, 2025, for further information on risk factors affecting us, as such factors may be amended and updated from time to time in the Company’s subsequent periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov.

Non-GAAP Financial Measures

The Company’s management evaluates performance of the Company through the use of certain measures that are not prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), including adjusted net income (loss), adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”), adjusted earnings (loss) per share, and tangible equity.

The presentation of non-GAAP measures is used to enhance investors’ understanding of certain aspects of our financial performance. This discussion is not meant to be considered in isolation, superior to, or as a substitute for the directly comparable financial measures prepared in accordance with U.S. GAAP. Management believes these key financial measures provide an additional view of our performance over the long-term and provide useful information that we use in order to maintain and grow our business.

These non-GAAP financial measures should not be considered as an alternative to net income (loss), operating cash flows, or any other performance measures determined in accordance with U.S. GAAP. Adjusted net income (loss), adjusted EBITDA, adjusted earnings (loss) per share, and tangible equity have important limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of our results as reported under U.S. GAAP. Some of the limitations of these metrics are: (i) cash expenditures for future contractual commitments; (ii) cash requirements for working capital needs; (iii) cash requirements for certain tax payments; and (iv) all non-cash income/expense items.

Because of these limitations, adjusted net income (loss), adjusted EBITDA, adjusted earnings (loss) per share, and tangible equity should not be considered as measures of discretionary cash available to us to invest in the growth of our business or distribute to shareholders. We compensate for these limitations by relying primarily on our U.S. GAAP results and using our non-GAAP financial measures only as a supplement. Users of our condensed consolidated financial statements are cautioned not to place undue reliance on our non-GAAP financial measures.

Change in Non-GAAP Measures

Prior to the third quarter of 2024, the Company’s adjusted net income (loss), adjusted EBITDA, and adjusted earnings (loss) per share were adjusted for equity-based compensation for only the Replacement RSUs and Earnout Right RSUs. Beginning with the third quarter of 2024, the Company revised our definitions of adjusted net income (loss), adjusted EBITDA, and adjusted earnings (loss) per share to now adjust for all equity-based compensation in the aforementioned non-GAAP measures. As a result of the change, prior period amounts have been recast to reflect the updated presentation.

Subsequent to granting the Replacement RSUs and Earnout Right RSUs, the Company has granted other equity-based awards. As these awards are non-cash expenses that are not directly correlated with operating results, the Company believes that analysts, investors, and other users of the financial statements may find this change beneficial when analyzing our operating performance and comparability to peers.

Adjusted Net Income (Loss)

We define adjusted net income (loss) as net income (loss) from continuing operations adjusted for:

1. Income taxes

2. Changes in fair value of loans and securities held for investment and related obligations due to market inputs or model assumptions, deferred purchase price obligations, contingent earnout, warrant liability, and the exchange of our senior notes.

3. Amortization or impairment of intangibles and impairment of certain other long-lived assets.

4. Equity-based compensation, excluding forfeitures and accelerations associated with restructuring activities, which are included in certain non-recurring costs.

5. Certain non-recurring costs and adjustments that management believes should be excluded as these do not relate to a recurring part of the core business operations. These items include amounts recognized for settlement of legal and regulatory matters, acquisition or divestiture-related expenses, and other one-time charges.

6. Income tax benefit (provision) adjustments to apply an effective combined corporate tax rate to adjusted net income (loss) before income taxes.

Management considers adjusted net income (loss) important in evaluating our Company as a whole. This supplemental metric is utilized by our management team to assess the underlying key drivers and operational performance of the continuing operations of the business. In addition, analysts, investors, and creditors may use this measure when analyzing our operating performance and comparability to peers. Adjusted net income (loss) is not a presentation made in accordance with U.S. GAAP, and our definition and use of this measure may vary from other companies in our industry.

Adjusted net income (loss) provides visibility to the underlying operating performance by excluding the impact of certain items that management does not believe are representative of our core earnings. Adjusted net income (loss) may also include other adjustments, as applicable, based upon facts and circumstances, consistent with our intent of providing a supplemental means of evaluating our operating performance.

Adjusted EBITDA

We define adjusted EBITDA as net income (loss) from continuing operations adjusted for:

1. Income taxes

2. Changes in fair value of loans and securities held for investment and related obligations due to market inputs or model assumptions, deferred purchase price obligations, contingent earnout, warrant liability, and the exchange of our senior notes.

3. Amortization or impairment of intangibles and impairment of certain other long-lived assets.

4. Equity-based compensation, excluding forfeitures and accelerations associated with restructuring activities, which are included in certain non-recurring costs.

5. Certain non-recurring costs and adjustments that management believes should be excluded as these do not relate to a recurring part of the core business operations. These items include amounts recognized for settlement of legal and regulatory matters, acquisition or divestiture-related expenses, and other one-time charges.

6. Depreciation

7. Interest expense on non-funding debt, excluding amortization of the discount related to our senior notes.

Management considers adjusted EBITDA important in evaluating the Company as a whole. This supplemental metric is utilized by our management team to assess the underlying key drivers and operational performance of the continuing operations of the business. In addition, analysts, investors, and creditors may use this measure when analyzing our operating performance and comparability to peers. Adjusted EBITDA is not a presentation made in accordance with U.S. GAAP, and our definition and use of this measure may vary from other companies in our industry.

Adjusted EBITDA provides visibility to the underlying operating performance by excluding the impact of certain items that management does not believe are representative of our core earnings. Adjusted EBITDA may also include other adjustments, as applicable, based upon facts and circumstances, consistent with our intent of providing a supplemental means of evaluating our operating performance.

Adjusted Earnings (Loss) Per Share

We define adjusted earnings (loss) per share as adjusted net income (loss) (defined above) plus interest expense on the exchangeable senior secured notes, net of a tax effect, if dilutive, divided by the weighted average shares outstanding, which includes outstanding Class A Common Stock plus the Class A Units of Finance of America Equity Capital owned by the noncontrolling interest on an if-converted basis, the exchange of the exchangeable senior secured notes on an if-converted basis if they are dilutive, and any shares under the treasury stock method.

Management considers adjusted earnings (loss) per share important in evaluating the Company as a whole. This supplemental metric is utilized by our management team to assess the underlying key drivers and operational performance of the continuing operations of the business. In addition, analysts, investors, and creditors may use this measure when analyzing our operating performance and comparability to peers. Adjusted earnings (loss) per share is not a presentation made in accordance with U.S. GAAP, and our definition and use of this measure may vary from other companies in our industry.

Tangible Equity

We define tangible equity as total equity less intangible assets, net. Management uses this metric to evaluate the Company’s capital strength exclusive of intangible assets. We believe this measure is useful to analysts, investors, and creditors as it provides additional insight into the underlying equity position of the business. Tangible equity is not a presentation made in accordance with U.S. GAAP, and our definition and use of this measure may vary from other companies in our industry.

Tangible equity provides visibility to the underlying capital position by excluding the impact of certain items that management does not believe are representative of our core equity base. Tangible equity may also include other adjustments, as applicable, based upon facts and circumstances, consistent with our intent of providing a supplemental means of evaluating our financial strength.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250805288165/en/

For Finance of America Media: [email protected]

For Finance of America Investor Relations: [email protected]

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS: Professional Services Consumer Other Construction & Property Residential Building & Real Estate Seniors Finance Construction & Property

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