Company: FOACW
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001628280-25-052025
Chunk: 30

Company: Finance of America Companies Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Item 2
Chunk 30
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214)

68

Our cash and cash equivalents and restricted cash increased by $100.4 million for the nine months ended September 30, 2025 compared to a decrease of $4.4 million during the comparable period in 2024. Our cash and cash equivalents, excluding restricted cash, increased $62.4 million for the nine months ended September 30, 2025 compared to a decrease of $2.2 million during the comparable period in 2024.

Operating Cash Flow

Cash flows from operating activities decreased by $20.7 million for the nine months ended September 30, 2025 compared to the corresponding 2024 period, which was primarily attributable to an increase in cash used for originations of loans held for sale, partially offset by changes in payables and other liabilities.

Investing Cash Flow

The increase of $171.5 million in cash flows from our investing activities during the nine months ended September 30, 2025 compared to the 2024 period was primarily attributable to a $135.0 million increase in proceeds/payments on loans held for investment, net of cash used for purchases and originations, and a $48.8 million increase in proceeds/payments on loans held for investment, subject to nonrecourse debt, net of cash used for purchases and originations. This was partially offset by a decrease of $5.5 million in proceeds on the sale of mortgage servicing rights (“MSR”). 

Financing Cash Flow

The decrease of $45.9 million in cash flows from our financing activities during the nine months ended September 30, 2025 compared to the 2024 period was primarily driven by a $348.5 million increase in payments on HMBS related obligations, net of proceeds, a $235.0 million decrease in proceeds from other financing lines of credit, net of payments, and a $72.0 million increase in payments on notes payable, net of proceeds. This was partially offset by a $609.3 million increase in proceeds from issuance of nonrecourse debt, net of payments.

Financial Covenants

Our credit facilities contain various financial covenants, which primarily relate to required tangible net worth amounts, liquidity reserves, leverage ratios, and profitability. These covenants are measured at FAH or FAR. The Company was in compliance with the financial covenants as of September 30, 2025. Refer to Note 9 - Other Financing Lines of Credit in the Notes to Condensed Consolidated Financial Statements