Q1 2026 Finance of America Companies Inc Earnings Call

May 5, 2026

Speaker #1: 2026 earnings call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star 1 to raise your hand.

Speaker #1: To withdraw your question, press star 1 again. I will now hand the conference over to Michael Fant, Senior Vice President of Finance. Michael, please go ahead.

Operator: Hello, everyone. Thank you for joining us. Welcome to the Finance of America Q1 2026 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Michael Fant, Senior Vice President of Finance. Michael, please go ahead.

Operator: Hello, everyone. Thank you for joining us. Welcome to the Finance of America Q1 2026 Earnings Call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Michael Fant, Senior Vice President of Finance. Michael, please go ahead.

Speaker #2: Thank you. And good afternoon, everyone. And welcome to Finance of America's first quarter 2026 earnings call. With me today are Graham Fleming, Chief Executive Officer; Kristen Sieffert, President; and Matt Engel, Chief Financial Officer.

Speaker #2: As a reminder, this call is being recorded, and you can find the earnings release and related presentation on our investor relations website, at ir.financeofamericacompany.com.

Michael Fant: Thank you. Good afternoon, everyone, welcome to Finance of America's Q1 2026 earnings call. With me today are Graham Fleming, Chief Executive Officer, Kristen Sieffert, President, and Matt Engel, Chief Financial Officer. As a reminder, this call is being recorded. You can find the earnings release and related presentation on our investor relations website at ir.financeofamerica.com. I would like to remind everyone that comments on this conference call may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the company's expected operating and financial performance for future periods. These statements are based on the company's current expectations and are subject to the safe harbor statement for forward-looking statements that you will find in today's earnings release.

Speaker #2: Also, I would like to remind everyone that comments on this conference call may be forward-looking statements within the meaning of the private securities litigation reform act of 1995 regarding the company's expected operating and financial performance for future periods.

Speaker #2: These statements are based on the company's current expectations and are subject to the Safe Harbor Statement for forward-looking statements that you will find in today's earnings release.

Speaker #2: Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements, due to a number of risks or other factors, including those that are described in the risk factors section of Finance of America's annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC on March 13, 2026.

Speaker #2: Such risk factors may be amended and updated in our subsequent filings with the SEC. We are not undertaking any commitment to update these statements if conditions change.

Michael Fant: Actual results for future periods may differ materially from those expressed or implied by these forward-looking statements due to a number of risks or other factors, including those that are described in the Risk Factors section of Finance of America's annual report on Form 10-K for the year ended 31 December 2025, filed with the SEC on 13 March 2026. Such risk factors may be amended and updated in our subsequent filings with the SEC. We are not undertaking any commitment to update these statements if conditions change. Please note, today we will be discussing interim period financials for our continuing operations, which are unaudited. In addition, we will refer to certain non-GAAP financial measures on this call.

Speaker #2: Please note, today we will be discussing interim period financials for our continuing operations, which are un-audited. In addition, we will refer to certain non-GAAP financial measures on this call.

Speaker #2: You can find reconciliations of non-GAAP to GAAP financial measures to the extent available without unreasonable efforts in our earnings press release and presentation on the investor relations page of our website.

Speaker #2: Now, I will turn the call over to our Chief Executive Officer, Graham Fleming. Graham?

Speaker #3: Thank you, Michael. And good afternoon, everyone. The first quarter of 2026 was an outstanding quarter, with operational momentum and originations driving an acceleration of volumes, excellent profitability in our portfolio management segment, and steady improvement in our financial results, liquidity, and capital position.

Michael Fant: You can find reconciliations of non-GAAP to GAAP financial measures to the extent available without unreasonable efforts in our earnings press release and presentation on the investor relations page of our website. Now, I will turn the call over to our Chief Executive Officer, Graham Fleming. Graham?

Speaker #3: On our call today, I will take you through the highlights, then spend a moment commenting on the market opportunity and reverse mortgages, which we believe is significant, Kristen will dive into our originations performance, Matt will comment on the financials, and then we will take your questions.

Graham Fleming: Thank you, Michael. Good afternoon, everyone. The Q1 of 2026 was an outstanding quarter, with operational momentum and originations driving an acceleration of volumes, excellent profitability in our portfolio management segment, and steady improvement in our financial results, liquidity, and capital position. On our call today, I will take you through the highlights, then spend a moment commenting on the market opportunity in reverse mortgages, which we believe is significant. Kristen will dive into our originations performance. Matt will comment on the financials, and then we will take your questions. To start with, if you turn to slide 5 of the accompanying presentation, Finance of America generated net income of $35 million and adjusted net income of $26 million, or $1.10 per share, up 112% from last year's Q1 results.

Speaker #3: To start with, if you turn to slide 5 of the accompanying presentation, Finance of America generated net income of $35 million, and adjusted net income of $26 million, or $1.10 per share.

Speaker #3: Up 112% from last year's first quarter results. This powered a strong increase in tangible equity to $268 million, or approximately $15 per share. These results are consistent with the guidance we have issued for 2026, which Matt will update you on in a moment.

Speaker #3: From a production standpoint, we funded $596 million in the quarter, up 6% year over year. As you will recall, we talked about operational enhancements to our platform driving an inflection point in results.

Graham Fleming: This powered a strong increase in tangible equity to $268 million, or approximately $15 per share. These results are consistent with the guidance we have issued for 2026, which Matt will update you on in a moment. From a production standpoint, we funded $596 million in the quarter, up 6% year over year. As you will recall, we talked about operational enhancements to our platform driving an inflection point in results, and we are starting to see that in the March and April fundings, consistent with the volume guidance we have shared with you. Separately, I'm excited to see us rolling out a new second lien reverse mortgage line of credit, which is a great product to help seniors tap directly with the timing and amounts that precisely suit their needs.

Speaker #3: And we are starting to see that in the March and April fundings, consistent with the volume guidance we have shared with you. Separately, I'm excited to see a swelling at a new second lien reverse mortgage line of credit, which is a great product to help seniors tap their equity with the timing and amounts that precisely suit their needs.

Speaker #3: Regarding the previously announced PHH transaction, the transaction has been modified to close in two distinct phases. The first phase consisting of the origination marketing of our products and subservicing components is expected to close in May.

Speaker #3: The second phase, which includes the purchase of HECM servicing rights, will follow as we continue to work with our primary regulator, Jeannie May, on the related approval.

Graham Fleming: Regarding the previously announced PHH transaction, the transaction has been modified to close in two distinct phases. The first phase, consisting of the origination, marketing of our products, and sub-servicing components, is expected to close in May. The second phase, which includes the purchase of HECM servicing rights, will follow as we continue to work with our primary regulator, Ginnie Mae, on the related approval. Additional information can be found in today's 8-K filing with the SEC. Before turning the call over to Kristen, I would like to spend a moment on the opportunity in reverse mortgages, which are typically viewed as a niche product in the broader mortgage universe and in our experience, are not well understood by investors missing the growth potential. If you turn to slide 6, let me share with you a snapshot on current industry volumes.

Separately. I'm excited to see us rolling out a new second lean reverse mortgage line of credit, which is a great product to help seniors tap directly with the timing and amounts that precisely suit their needs.

Speaker #3: Additional information can be found in today's 8-K filing with the SEC. Before turning the call over to Kristen, I would like to spend a moment on the opportunity and reverse mortgages which are typically viewed as a niche product in the broader mortgage universe.

Regarding the previously announced PHH transaction. The transaction has been modified to close in 2, distinct places.

The first phase consisting of the origination marketing of our products and sub-servicing components is expected to close. In May

Speaker #3: And in our experience, they are not well understood by investors missing the growth potential. If you turn to slide 6, let me share with you a snapshot on current industry volumes.

Speaker #3: As you can see from the top chart of this slide, government-insured reverse mortgages or HECMs have been running roughly flat for the last three years, at approximately $4 billion per year.

Nursing rights will follow as we continue to work with our primary regulator, Jeannie Mae on the related approval. Additional information can be found in today's 8K. Filing with the SEC.

Speaker #3: Down significantly from the boom experienced during the pandemic, driven by refinance activity. What is noteworthy, but is somewhat hard to see given the lack of consistently available industry data, is the market expansion related to proprietary products.

Before turning the call over to Kristen, I would like to spend a moment on the opportunity in Reverse Mortgages which are typically viewed as a niche product in the broader mortgage Universal.

And an Our experience are not well. Understood by investors missing the growth potential.

Graham Fleming: As you can see from the top chart of this slide, government-insured reverse mortgages or HECMs, have been running roughly flat for the last three years at approximately $4 billion per year, down significantly from the boom experienced during the pandemic, driven by refinance activity. What is noteworthy but is somewhat hard to see, given the lack of consistently available industry data, is the market expansion related to proprietary products. These proprietary products significantly expand the market by making reverse mortgages available to borrowers aged 55 and older in certain states, compared to age 62 for government-insured products, and by offering jumbo balances and a range of product structures, including first liens, second liens, and lines of credit.

You return to slide 6, let me share with you a snapshot on current industry volumes.

Speaker #3: This is one of the reasons we believe the equity markets have been slow to pick up on the opportunity. These proprietary products significantly expand the market by making reverse mortgages available to borrowers aged 55 and older in certain states, compared to aged 62 for government-insured products, and by offering jumbo balances and a range of product structures including first liens, second liens, and lines of credit.

as you can see, from the top chart of the slide,

government ensured reverse mortgages or happens have been running roughly flat for the last 3 years at approximately 4 billion per year.

Now, significantly from the boom experience during the pandemic driven by refinance activity.

What is noteworthy, but is so much harder to see, given the lack of consistently available industry data, is the market expansion related to proprietary products.

Speaker #3: For example, Finance of America's second lien products can provide a solution for borrowers who want to access home equity while maintaining a low-rate primary mortgage.

This is 1 of the reasons, we believe the equity markets have been slow to pick up on the opportunity.

Speaker #3: These products are really important to watch. Because they're increasing origination volumes demonstrate the growing mainstream acceptance of reverse mortgages by American seniors. Finance of America has been the market leader in proprietary reverse products for over a decade.

these proprietary products significantly, expand the market by making reverse mortgages available to borrowers, AED, 55 and older in certain States

Compared to age 62 for government ensured products and by offering jumbo balances.

Graham Fleming: For example, Finance of America's second lien products can provide a solution for borrowers who want to access home equity while maintaining a low rate primary mortgage. These products are really important to watch because their increasing origination volumes demonstrate the growing mainstream acceptance of reverse mortgages by American seniors. Finance of America has been the market leader in proprietary reverse products for over a decade. These products have been a significant and accelerating driver of our growth over the last 3 years as they continue to gain acceptance from our customers and from our investors alike. With this thought in mind, if you will turn to slide 7, I will end my prepared remarks by reminding you that American seniors control a massive amount of home equity, approximately $14.6 trillion.

And a range of product structures including first Lanes. Second lanes and lines of credit.

Speaker #3: These products have been a significant and accelerating driver of our growth over the last three years, as they continue to gain acceptance from our customers and from our investors alike.

For example, Finance of America's second lean products and provide a solution for borrowers who want to access home equity while maintaining a low rate primary mortgage.

Speaker #3: With this thought in mind, if you will turn to slide 7, I will end my prepared remarks by reminding you that American seniors control a massive amount of home equity, approximately $14.6 trillion.

These products are really important to watch because their increasing origination volumes demonstrate the growth of acceptance of reverse mortgages by American seniors.

Speaker #3: And this equity is expected to continue to grow as homes continue to appreciate and as the population ages. Between 2024 and 2026, census data shows that over 11,000 Americans turn 65 every day.

Finance of America has been the market leader in proprietary reverse products for over a decade.

these products have been a significant and accelerating driver of our growth over the last 3 years, as they continue to gain acceptance from our customers and from our investors alike

Speaker #3: Now, these are big numbers. Making the addressable market more than 100 times greater than the size of the entire reverse mortgage population outstanding today.

Graham Fleming: This equity is expected to continue to grow as homes continue to appreciate and as the population ages. Between 2024 and 2026, census data shows that over 11,000 Americans turn 65 every day. Now, these are big numbers, making the addressable market more than 100 times greater than the size of the entire reverse mortgage population outstanding today. Not everyone is going to become a reverse customer. However, as the proprietary product set continues to expand and American seniors turn to home equity for an ever-widening set of use cases, we believe there is a massive multi-year growth opportunity shaping up for Finance of America. With that, I'll turn the call over to Kristen.

Speaker #3: And not everyone is going to become a reverse customer. However, as the proprietary product set continues to expand, and American seniors turn to home equity for an ever-widening set of use cases, we believe there is a massive multi-year growth opportunity shaping up for Finance of America.

With this. Thought in mind, if you will turn to slide 7, I will end my prepared. Remarks by reminding you that American seniors control, a massive amount of home equity, approximately 14.6 billion and this Equity is expected to continue to grow as homes, continue to appreciate. And as the population ages.

Between 2024 and 2026.

Satisfaction shows that over 11,000 Americans, turn 65 every day.

Speaker #3: And with that, I'll turn the call over to Kristen.

Speaker #2: Thanks, Graham, and good afternoon, everyone. Last quarter, I said we were reaching an inflection point in the platform, what we saw in the first quarter reinforces that view, and we can see it clearly in the numbers.

Speaker #2: Turning to slide 8, overall originations were up 6% year over year, and first quarter submissions reached a new high of $918 million. Which is up 20% year over year.

Speaker #2: Submissions represent customers who've completed their application and provided all supporting paperwork. They're one of our clearest leading indicators of future funded volume and why we remain confident in our volume guidance.

Kristen Sieffert: Thanks, Graham, and good afternoon, everyone. Last quarter, I said we were reaching an inflection point in the platform. What we saw in Q1 reinforces that view, and we can see it clearly in the numbers. Turning to slide 8, overall originations were up 6% year-over-year, and Q1 submissions reached a new high of $918 million, which is up 20% year-over-year. Submissions represent customers who've completed their application and provided all supporting paperwork. They're one of our clearest leading indicators of future funded volume and why we remain confident in our volume guidance. Our volumes reflect a mix of both HECM and proprietary products across first and second liens. I'd specifically call out our HomeSafe Second, which reached a high watermark in the quarter, increasing 32% year-over-year.

Now, these are Big Numbers making the addressable Market more than a 100 times greater than the size of the entire reverse mortgage population outstanding today and not everyone is going to become a reverse customer. However as the proprietary products that continues to expand and American seniors turn to home equity for an Ever widening. Set of use cases, we believe there is a massive multi-year growth opportunity shaping up for financial America. And with that, I'll turn the call over to Crystal

Thanks Graham and good afternoon. Everyone last quarter. I've said you're reaching an inflection point in the platform. What we saw in the first quarter reinforces that view and we can see it clearly in the numbers.

Speaker #2: Our volumes reflect a mix of both HECM and proprietary products across first and second liens. I'd specifically call out our home safe second, which reached a high watermark in the quarter, increasing 32% year over year, and as Graham mentioned, we rolled out a new line of credit option for home safe second, further expanding the use cases for our customers.

Speaker #2: Finance of America has long been a leader in proprietary products supported by our understanding of the customer and strong capital markets relationships, which continue to support growth across both our retail and wholesale channels.

Turning the slide to 8 overall, originations were up 6% year-over-year and first quarter of submissions reached a new high of 918 million which is up 20% year-over-year. Submissions represent customers who've completed their application and provided all supporting paperwork. They're 1 of our clearest leading indicators of future fund and volume and why you're remain confident in our volume guidance.

Our volumes reflect a mix of both HECM and proprietary products across first and second lien.

Speaker #2: While HECM is structured to a one-size-fits-all approach, FOA's industry-leading product development and partnerships allow us to better target the various and bespoke needs of our massive customer base.

Kristen Sieffert: As Graham mentioned, we rolled out a new line of credit option for HomeSafe Second, further expanding the use cases for our customers. Finance of America has long been a leader in proprietary products supported by our understanding of the customer and strong capital markets relationships, which continue to support growth across both our retail and wholesale channels. While HECM is structured to a one-size-fits-all approach, FOA's industry-leading product development and partnerships allow us to better target the various and bespoke needs of our massive customer base, which will lead to continued profitable growth. Turning to slide 9, at the top of the funnel, momentum exiting the quarter was strong. Inquiry volume in March was up 84% versus the 2025 average, while cost per inquiry declined 19%.

Speaker #2: Which will lead to continued profitable growth. Turning to slide 9, at the top of the funnel, momentum exiting the quarter was strong. Inquiry volume in March was up 84% versus the 2025 average, while cost per inquiry declined 19%.

I specifically call out our home safe second which reached a high water mark in the quarter, increasing 32% year-over-year. And as Graham mentioned, we rolled out a new line of credit option for home. Safe seconds. Further expanding the use cases for our customers.

Finance of America, has long been a leader in proprietary products, supported by our understanding of the customer and strong Capital markets relationship, which continue to support growth across both our retail and wholesale channels.

Speaker #2: Opportunities, defined as qualified warm transfers to loan officers, also reached a new high in March, up roughly 58% over 2025 levels. Further down the funnel, we're seeing equally strong progress in early conversion.

We'll have them as structured to a 1 size. Fits all approach, foas industry-leading, product development and Partnerships. Allow us to better Target the various and bespoke needs of our massive customer base which will lead to continued profitable growth.

Speaker #2: Borrowers opting into our digital pre-qualification experience more than doubled sequentially, and submissions per loan officer in March reached the highest level in the history of our retail channel, up 47% compared to 2025 levels.

Kristen Sieffert: Opportunities, defined as qualified warm transfers to loan officers, also reached a new high in March, up roughly 58% over 2025 levels. Further down the funnel, we're seeing equally strong progress in early conversion. Borrowers opting into our digital prequalification experience more than doubled sequentially, and submissions per loan officer in March reached the highest level in the history of our retail channel, up 47% compared to 2025 levels. These improvements are being driven by the operating model we've been building. Helix is our proprietary industry-first end-to-end platform that connects how we acquire, evaluate, and move customers through the process with Joy operating as the AI layer across that system. The deployment of AI is helping us in two ways. First, by allowing us to more consistently match customers with the right solution and improve their overall experience.

Speaker #2: These improvements are being driven by the operating model we've been building. Helix is our proprietary industry-first end-to-end platform that connects how we acquire, evaluate, and move customers through the process with joy operating as the AI layer across that system.

Over 2025 levels.

Further down the funnel, we're seeing equally strong progress in early conversions.

Speaker #2: The deployment of AI is helping us in two ways. First, by allowing us to more consistently match customers with the right solution, and improve their overall experience, and second, by improving our top-of-funnel marketing and resulting cost per lead.

Borrowers opting into our digital pre-qualification experience more than doubled sequentially, and submissions per loan. Officer in March reached, the highest level in the history of our retail Channel up. 47% compared to 2025 levels.

These improvements are being driven by the operating model we've been building.

Speaker #2: Incorporating AI across the platform is driving meaningful improvements that will compound as we grow and scale. Helix and joy give us a competitive advantage over peer-to-reliable vendor systems, and I look forward to updating you on our progress as we build out new capabilities.

Speaker #2: Stepping back, this is happening in a market that remains significantly underpenetrated. As Graham mentioned, today there's less than 100 billion dollars of reverse mortgage volume outstanding compared to an estimated 14.6 trillion dollars of senior home equity.

Kristen Sieffert: Second, by improving our top-of-funnel marketing and resulting cost per lead. Incorporating AI across the platform is driving meaningful improvements that will compound as we grow and scale. Helix and Joy give us a competitive advantage over peers who rely on vendor systems, and I look forward to updating you on our progress as we build out new capabilities. Stepping back, this is happening in a market that remains significantly underpenetrated. As Graham mentioned, today, there's less than $100 billion of reverse mortgage volume outstanding compared to an estimated $14.6 trillion of senior home equity. As the category leader with approximately 30% market share, our scale, product breadth, and operating model position us to capture more of this underpenetrated opportunity, supporting better outcomes for customers in retirement and strengthening the durability and scalability of our earnings.

Speaker #2: As the category leader with approximately 30% market share, our scale, product breadth, and operating model position us to capture more of this underpenetrated opportunity.

Felix is our proprietary industry, first. And to end platform, that connects how we acquire evaluate and move customers to the process with joy operating as the AI. Layer of that system, the deployment of AI is helping us in key ways. First by allowing us to more consistently match, customers with the right solution and improve their overall experience and second by improving our top of funnel marketing and resulting cost per leads. Incorporating AI across the platform is driving meaningful improvements. That will compound as we grow and scale.

Helix and Joy give us a competitive advantage over peers who rely on vendor systems. I look forward to updating you on our progress as we build out new capabilities.

Speaker #2: Supporting better outcomes for customers in retirement and strengthening the durability and scalability of our earnings. With that, I'll turn it over to Matt.

Speaker #3: Thank you, Kristen. And good afternoon, all. Graham already gave you the headline results, so I'll give you some added color for the quarter. But you can find in today's earnings release and summarized by segment on slide 11.

Stepping back, this is happening in a market that remains significantly underpenetrated, as Graham mentioned today. There's less than $100 billion of reverse mortgage volume outstanding compared to an estimated $14.6 trillion of senior home equity.

Speaker #3: As mentioned, we generated 35 million of net income in 26 million of adjusted net income. Adjusted earnings per share of $1.10 was up 112% year over year.

Kristen Sieffert: With that, I'll turn it over to Matt.

Speaker #3: Starting with retirement solutions, which represents our originations platform, adjusted net income was 14 million. Down from the fourth quarter to the due to the typical seasonality in originations, but up substantially year over year.

As the category leader, with approximately 30% market share, our scale, product breadth, and operating model position us to capture more of this underpenetrated opportunity. Supporting better outcomes for customers and retirement, and strengthening the durability and scalability of our earnings with that. I'll turn it over to Matt.

Matt Engel: Thank you, Kristen, and good afternoon, all. Graham already gave you the headline results, so I'll give you some added color for the quarter, which you can find in today's earnings release and summarized by segment on slide 11. As mentioned, we generated $35 million of net income and $26 million of adjusted net income. Adjusted earnings per share of $1.10 was up 112% year over year. Starting with Retirement Solutions, which represents our originations platform, adjusted net income was $14 million.

Thank you, Kristen and good afternoon. All

Grant already gave you the headline results. So I'll give you some added color to the quarter but you can find in today's earnings release and summarized by segment on, slide to the left.

Speaker #3: In fact, up by 56%. Driving these results was the higher conversion rates Kristen mentioned, as well as improved revenue margins, which increased year over year.

As mentioned, we generated 35 million of net income in 26 million of adjusted net income.

Speaker #3: Reflecting the strong execution we are seeing as proprietary production continues to grow. Portfolio management delivered strong results for the quarter, generating 28 million in adjusted net income.

Adjusted earnings per share of a dollar and 10 cents was up. 112% year-over-year,

Matt Engel: Down from Q4 due to the typical seasonality in originations, but up substantially year over year. In fact, up by 56%. Driving these results was the higher conversion rates Kristen mentioned, as well as improved revenue margins, which increased year over year, reflecting the strong execution we are seeing as proprietary production continues to grow. Portfolio management delivered strong results for the quarter, generating $28 million in adjusted net income. Performance was driven primarily by $1.7 billion of securitization activity across both proprietary reverse and HECM buyouts. Results benefited from favorable market conditions, including tight spreads and relatively lower interest rates, as well as the timing of execution within the quarter. While timing can vary quarter to quarter, our results reflect the strength of our platform and our ability to consistently identify and execute on attractive capital markets opportunities.

Speaker #3: Performance was driven primarily by 1.7 billion of securitization activity across both proprietary reverse and HECM buyouts. Results benefited from favorable market conditions, including tight spreads and relatively lower interest rates, as well as the timing of execution within the quarter.

With Retirement Solutions with represents our origination platform. Adjusted. Net income was 14 million down from the fourth quarter, to the due to the typical seasonality in originations. But up substantially year-over-year, we backed up by 56%

Speaker #3: While timing can vary quarter to quarter, our results reflect the strength of our platform and our ability to consistently identify and execute on attractive capital markets opportunities.

Driving. These results were the higher conversion rates Chris had mentioned, as well as improved revenue markets, which increased year-over-year, reflecting the strong execution we are seeing as proprietary production continues to grow.

Portfolio management delivered strong results for the quarter generating 28 million in adjusted net income.

Speaker #3: Corporate segment adjusted earnings, which reflects overhead and interest expense on our non-funding debt, was interiorly in line with prior quarters, reflecting reduced non-funding interest expense offset by investments in technology.

Performance was driven primarily by 1.7 billion of securitization activity across both proprietary reverse and hecm. Buyouts

Results benefited from favorable market conditions, including tight, spreads and relatively lower interest rates, as well as the timing of execution within the quarter.

Speaker #3: Overall, these results drove a sequential increase in tangible equity to $268 million, or approximately $15 per share. With respect to our valuation, we believe the growing origination and earnings power that we continue to demonstrate will, over time, warrant a higher multiple on both an earnings and tangible equity basis.

Matt Engel: Corporate segment adjusted earnings, which reflects overhead and interest expense on our non-funding debt, was materially in line with prior quarters, reflecting reduced non-funding interest expense offset by investments in technology. Overall, these results drove a sequential increase in tangible equity to $268 million, or approximately $15 per share. With respect to our valuation, we believe the growing origination and earnings power that we continue to demonstrate will, over time, warrant a higher multiple on both an earnings and tangible equity basis. Turning to key balance sheet metrics on slide 12, you can see that our cash balances increased from $90 million at the end of 2025 to $108 million at the end of Q1, and they're up by 108% year over year.

While timing can vary quarter to quarter, our results reflect the strength of our platform and our ability to consistently identify and execute on attractive capital markets opportunities.

Speaker #3: Turning to key balance sheet metrics on slide 12, you can see that our cash balances increased from $90 million at the end of 2025 to $108 million at the end of the first quarter, and are up by 108% year over year.

Corporate segment adjusted earnings which reflects overhead and interest expense. On our non-funded net was entirely in line with prior quarters reflecting reduced non-funded interest expense offset by investments in technology.

Overall, these results drove a sequential increase in tangible equity to $268 million, or approximately $15 per share.

Speaker #3: During the quarter, we generated $58 million in cash flow from our originations and capital markets activities, and utilized $40 million to complete the repurchase of Blackstone's equity position.

With respect to our evaluation, we believe the growing origination in earnings power that we continue to demonstrate will over time warrant a higher multiple on both an earnings and tangible Equity basis.

Speaker #3: At this time, we view our plan to retire the $150 million balance of our senior secured corporate notes later this year as the most prudent use of our liquidity and capital in the near term.

Speaker #3: This deleveraging plan will create a very strong balance sheet, which we view as an appropriate foundation for the valuable operating franchise we have built.

Matt Engel: During the quarter, we generated $58 million in cash flow from our originations and capital markets activities and utilized $40 million to complete the repurchase of Blackstone's equity position. At this time, we view our plan to retire the $150 million balance of our senior secured corporate notes later this year as the most prudent use of our liquidity and capital in the near term. This de-leveraging plan will create a very strong balance sheet, which we view as an appropriate foundation for the valuable operating franchise we have built. Having said that, given the strong results we posted this quarter, we also see considerable value in our own shares. We expect to revisit capital allocation priorities as we make progress against the de-leveraging plan. If you turn to slide 13, I'll conclude my prepared remarks by giving you an update on our guidance.

Turning to key balance sheet metrics on slide 12. You can see that our cash balances increased from $90 million at the end of 2025 to $1,089 million at the end of the first quarter and are up by 108% year-over-year.

Speaker #3: Having said that, given the strong results we posted this quarter, we also see considerable value in our own shares. We expect to revisit capital allocation priorities as we make progress against the deleveraging plan.

During the quarter, we generated 58 million in cash flow from our origination to Capital markets activities and utilized 40 million dollars to complete the repurchase of blackstone's equity position.

Speaker #3: If you turn to slide 13, I'll conclude my prepared remarks by giving you an update on our guidance. For 2026, we are maintaining our funded volume outlook of 2.8 to 3.1 billion.

At this time, we view our plan to retire in the 150 million balance of our senior security corporate notes later this year, as the most prudent use of our liquidity and capital in the near term.

This will be leveraging, plan will create a very strong balance sheet, which we view as an appropriate foundation for the valuable operating franchise. We have built

Speaker #3: We're also increasing our guidance for full-year adjusted earnings per share above our previously stated range. To between $4.50 and $5 per share. Reflecting the strong first quarter performance and the momentum we are seeing in our business.

Having said that given the strong results, we posted this quarter, we also see considerable value in our own shares. We expect to revisit Capital allocation priorities as we make progress against the deleveraging plan.

Speaker #3: With that, I'd like to ask the operator to open your call for questions.

Matt Engel: For 2026, we are maintaining our funded volume outlook from $2.8 billion to $3.1 billion. We are also increasing our guidance for full year adjusted earnings per share above our previously stated range to between $4.50 and $5 per share, reflecting the strong Q1 performance and the momentum we are seeing in our business. With that, I'd like to ask the operator to open your call for questions.

Speaker #1: Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand.

Maintaining our funded volume outlook at $2.8 to $3.1 billion.

Speaker #1: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #1: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Timothy D'Agostino.

We're also increasing our guidance for 4 year adjusted earnings per share above our previously, stated range. 2 between $4.50 and $5 per share reflecting a strong first quarter performance and the momentum we are seeing in our business

with that, I'd like to

the operator to open your call for questions.

Operator: Your first question comes from the line of Timothy D'Agostino with B. Riley Securities. Please go ahead.

Speaker #1: With B. Reilly Securities. Please go ahead.

Speaker #4: Yeah. Hi. Thank you. Congrats on the quarter. So on origination volume, it sounds like March was a pretty strong month. And I was wondering if you could add some color as to maybe why March was stronger than February and January, and if that volume that was seen in March persisted through April and into the beginning of May.

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand to withdraw. Your question, press star 1. Again we ask that you pick up your handset. When asking a question to allow for Optimum sound quality. If you are muted locally, please remember to unmute your device.

Please stand by while we compile the Q&A roster.

Operator: Your first question comes from the line of Timothy D'Agostino with B. Riley Securities. Please go ahead.

Your first question comes from the line of Timothy Diono with B. Riley Securities. Please go ahead.

Timothy D'Agostino: Yeah. Hi. Thank you. Congrats on the quarter. So on origination volume, it sounds like March was a pretty strong month. I was wondering if you could add some color as to maybe why March was stronger than February and January, and if that volume that was seen in March persisted through April and into the beginning of May. Thank you.

Speaker #4: Thank you.

Speaker #3: Okay. Hi, Tim. Oh, it's Matt. Yeah. I think a couple of things. One, I mentioned there's a normal seasonality, right? So our lead generation capabilities in November and December is always curtailed a little bit just from the holiday periods at the end of November and the end of December, of course.

Yeah, hi. Thank you. Congrats on the quarter. Um,

Speaker #3: So that will lead naturally to some lower fundings in January and February. But as you start to get into the new year and start to crank that engine back up, you start to see a lead flow come in, which really starts to kick into February, March.

so on the origination volume, um, it it it sounds like March was a pretty strong month. And I was wondering if you could add some color as to maybe why March was stronger than February and January. And if that if that volume, that was seen in March persisted through April and and into the beginning of beginning of May, thank you.

Matt Engel: Hi, Tim. It's Matt. Yeah, I think 2 things. 1, I mentioned there's some normal seasonality, right? Our lead generation capabilities in November and December is always curtailed a little bit just from the holiday periods at the end of November and the end of December, of course. That will lead naturally to some lower fundings in January and February. As you start to get into the new year and start to crank that engine back up, you start to see a lead flow, come in, which really starts to tick in February, March. That's just kind of the normal seasonal stuff. Maybe let Kristen expand on the improved performance we're seeing from that marketing spend as well.

Speaker #3: That's just kind of the normal seasonal stuff that maybe like Kristen expand on the improved performance we're seeing from that marketing spend as well.

Speaker #5: Yeah. I touched on Helix and really what we saw in March was the work that we've been doing actually producing the results that we expected it to, starting to come together in March.

Speaker #5: So 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 through the year.

Speaker #4: Okay. Great. That's super helpful. And then on the funded volume by product, especially thinking about the first quarter, obviously it shifted more towards that proprietary product.

Kristen Sieffert: Yeah. I touched on Helix, and really what we saw in March was the work that we've been doing actually producing the results that we expected it to starting to come together in March. You know, 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 through the year.

Speaker #4: But I guess regarding originations in the first quarter from the HECM product and the proprietary product, was there any changes in demand or any color you can provide on how homeowners are interacting with each product is the proprietary product gaining more traction?

Um yeah, I think a couple things 1, I mentioned there's some normal seasonality right so our lead generation capabilities in November and December is always good to have a little bit, just from the holiday periods at the end of November. And then in December, of course, so that will lead naturally to some lower fundings in January and February, but as you start to get into the new year and start to crank that engine back up, um you start to see a deep flow um come in, which really starts to kick in in February March. That's just kind of the normal seasonal stuff and maybe like Chris and expand on the improved performance. We're seeing from that marketing spend as well. Yeah, I touched on Helix and really what we saw in March was the work that we've been doing actually producing the results that we expected it to starting to come together in March. So, you know, we really started to hit a different speed as it relates to our origination volume, uh, in March as a result. And we expect that to continue through the year.

Timothy D'Agostino: Okay, great. That's super helpful. On the funded volume by product, especially thinking about Q1, obviously it's shifted more towards that proprietary product. Regarding origination in Q1 from the HECM product and the proprietary product, was there any, you know, changes in demand or any color you can provide on how homeowners are interacting with each product? Is the proprietary product gaining more traction? Just kind of color on how homeowners are interacting. Thank you.

Speaker #4: Just kind of color on how homeowners are interacting. Thank you.

Speaker #5: Homeowners typically choose the product that best suits their needs, which in most cases is a function of the amount of proceeds relative to the debt that they have.

Speaker #5: And their home value. So where we see proprietary as natural fits are more of the jumbo home sizes on our traditional fleet. But the difference for us in Q1 is we're really starting to see our second-lean product increase in originations.

Okay, great. That's that's super helpful. And then on the funded volume by product especially thinking about the first quarter obviously, it's shifted more towards that proprietary product but I guess regarding origination in the first quarter from the heck of a product in the proprietary product. What was there? Any you know changes in demand? Or or any any color you can provide on how homeowners are interacting with each product is the proprietary product. Uh, getting retraction, just kind of

Kristen Sieffert: Homeowners typically choose the product that best suits their needs, which in most cases, is a function of the amount of proceeds relative to the debt that they have and their home value. The difference for us in Q1 is we're really starting to see our second lien product, you know, increase in originations. Those products are for people that really have a different use case in the sense that they're happy with their first mortgage, typically a low interest rate. They can afford that payment, but they have a tremendous amount of home equity that they'd like to tap and can't afford or don't want another payment to impact their cash flow.

Color on how homeowners are interacting. Thank you.

Speaker #5: And those products are for people that really have a different use case in the sense that they're happy with their first mortgage, typically a low interest rate.

Uh, home owners typically.

Speaker #5: They can afford that payment, but they have a tremendous amount of home equity that they'd like to tap and can't afford or don't want another payment to impact their cash flow.

Speaker #5: So for HECM versus Homesafe on the traditional side, it's typically a function of which product provides the customer access to the most funds and dependent Homesafe second lean, it's based on what I just described, forward-looking for a different alternative.

Speaker #4: Okay. Great. Thank you. I'll jump back in the queue.

Kristen Sieffert: For a HECM versus HomeSafe on the just traditional side, it's typically a function of which product provides the customer access to the most funds and dependent on property value. On the HomeSafe Second lien, it's based on what I just described, borrowers looking for a different alternative.

Speaker #1: A reminder, if you would like to ask a question, please press star one on your handheld device. And we have a follow-up question from Timothy D'Agostino.

Speaker #1: From B. Reilly Securities. Please go ahead.

Speaker #4: Awesome. Fish takes a third question here. I just wanted to see if you had any more updates or just kind of touch on anything else regarding the PHAC acquisition.

Precedes relative to the to the debt that they have and their home value. So where we see proprietary is natural, fits are more of the jumbo home sizes, on our traditional Suite. But the the difference for us in q1 is we're really starting to see our second lean product. Um you know, increase in origination and those those products are for people that really have a different use case in a sense that they're happy with their first mortgage, typically a low interest rate, they can afford that payment but they have a tremendous amount of home equity that they'd like to tap and can't afford, or don't want another payment to impact their cash flow. So for a tech number versus home safe on the traditional side, it's typically a function of which product provides the customer access to the most fun and dependent on property value. And then on the homepage second lead, it's based on what I just described, um, before I was looking for a different alternative

Timothy D'Agostino: Okay, great. Thank you. I'll jump back in the queue.

Okay, great. Thank you. I'll jump back to the queue.

Operator: We have a follow-up question from Timothy D'Agostino from B. Riley Securities. Please go ahead.

Speaker #4: I know in the slide deck, it was mentioned that it was progressing, but I don't know if there was any additional color you could provide.

A reminder, if you would like to ask a question, please press star 1 on your handheld device.

Speaker #4: Thank you.

Operator: We have a follow-up question from Timothy D'Agostino from B. Riley Securities. Please go ahead.

Speaker #3: Yeah. All the additional information Tim will be in the AK that we filed after the market today. So as I said in my remarks, right, we bifurcated the transaction into the originations, the marketing of our product, and subservicing, which we expect to close here in May.

And we have a follow-up question from Timothy Diono from B Riley Securities. Please go ahead.

Timothy D'Agostino: Awesome. This takes a third question here. I just wanted to see if you had any more updates or just kind of touch on anything else regarding the PHH acquisition. I know in the slide deck it was mentioned as progressing, but I don't know if there's any additional color you could provide. Thank you.

Please take the third question here. Um,

Speaker #3: We have a small pool of HECM MSR in front of GenieMay, which we'll work with GenieMay on gaining the appropriate approvals and then close on that when the timing is correct and we've received that approval.

Graham Fleming: All the additional information, Tim, will be in the 8-K that we filed after the market today. As I said in my remarks, right, we bifurcated the transaction into the originations, the marketing of our product, and sub-servicing, which we expect to close here in May. We have a small pool of HECM MSR in front of Ginnie Mae, which we, you know, will work with Ginnie Mae on gaining the appropriate approvals and then close on that when the timing is correct and we receive that approval.

just wanted to to see if you had any more updates or just kind of up to anything else regarding the PHA acquisition. I know in the slide deck, it was it was mentioned, that was progressing, but I don't know if there was any additional color. You can provide thank you.

Speaker #4: Okay. Great. Thank you so much for taking the questions. Thank you. Congrats on the quarter.

Speaker #1: We have reached the end of the Q&A session. I will now turn the call back to Graham Fleming for closing remarks.

Speaker #3: Yeah. Thank you. The takeaway from the first quarter is straightforward. We're seeing clear improvement in the underlying drivers of the business, and that improvement is starting to translate into stronger production and financial results.

The marketing of a product and some servicing, which we expect to close here in May. Um, we have a small pool of tech and MSR in front of Ginnie Mae, which we, uh, you know, will work with. You may have gained the approval of Google's, and then close on that when, uh, when the time is correct and we've received that Google.

Speaker #3: And with that, we look forward to updating you in August with our ur Q2. Q2 results. So thank you, everybody, for joining the call today.

Timothy D'Agostino: Okay, great. Thank you so much for taking the questions today. Congrats on the quarter.

Okay, great. Thank you so much for taking the questions. Thank you. Congrats on the quarter.

Operator: We have reached the end of the Q&A session. I will now turn the call back to Graham Fleming for closing remarks.

Graham Fleming: Yeah. Thank you. The takeaway from Q1 is straightforward. You know, we're seeing clear improvement in the underlying drivers of the business. That improvement is starting to translate into stronger production and financial results. With that, we look forward to updating you in August with our Q2 results. Thank you everybody for joining the call today.

We have reached the end of the Q&A session. I will now turn the call back to Graham Fleming for closing remarks.

Yeah, thank you, uh, the takeaway from the first quarter straight forward.

You know, we're seeing clear Improvement in the underlying virus as a business and that Improvement is starting to translate into the stronger production and financial results. And, and with that, we look forward to updating you on August, uh, with our Q2, uh, Q2 results. So, thank you everybody for joining the call today.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

This concludes today's call, thank you for attending. You may now disconnect