Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 109

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 2
Chunk 109
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 net fair value gains during the three months ended March 31, 2025 compared to the 2024 period. Refer to Note 5 - Fair Value in the Notes to Condensed Consolidated Financial Statements for additional information regarding the key inputs, assumptions, and valuation techniques impacting the value of our loans held for investment and related obligations.

•Non-funding interest expense, net, increased $6.8 million during the three months ended March 31, 2025 compared to the 2024 period primarily due to the discount amortization expense related to the exchange of our senior notes that occurred on October 31, 2024.

•Total expenses decreased $4.9 million or 5.4% due to decreases in salaries, benefits, and related expenses related to a reduction in average headcount, as well as decreases in general and administrative expenses due to continued cost-cutting measures associated with the wind-down of business lines that are not part of our unified modern retirement solutions platform. This was partially offset by an increase in loan portfolio related expenses due to increased securitization expenses related to nonrecourse securitizations during the three months ended March 31, 2025 compared to the 2024 period, as well as an increase in marketing and advertising expenses related to brand marketing and our digital innovation strategy.

50

Segment Results

Revenues and fees are directly attributed to their respective segments at the time services are performed. Revenues generated on inter-segment services performed are valued based on estimated market value. Expenses directly attributable to the operating segments are expensed as incurred. Other expenses are allocated to individual segments based on the estimated value of services performed, total revenue contributions, personnel headcount, or the equity invested in each segment based on the type of expense allocated. The allocation methodology is reviewed annually. There were no changes to methodology during the three months ended March 31, 2025 and 2024. Expenses for enterprise-level general overhead, such as executive administration, are not allocated to the business segments.

Retirement Solutions Segment

The following table summarizes our Retirement Solutions segment’s results (in thousands):  

For the three months ended March 31, 2025For the three months ended March 31, 2024Net origination gains$46,038 $39,657 Fee income5,683 6,051 Total revenues51,721 45,708 Total expenses48,462 49,410 Other, net— (174)NET INCOME (LOSS