Company: FOACW
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001828937-25-000033
Chunk: 117

Company: Finance of America Companies Inc.
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 2
Chunk 117
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 March 31, 2024

Total revenues worsened by $6.8 million primarily as a result of the following:

•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 $5.0 million or 25.8% as a result of the following:

•Salaries, benefits, and related expenses, net of shared services allocations, decreased $4.4 million or 34.1% due to decreases in salaries and bonuses and other salary related expenses of $2.0 million and $1.2 million, respectively, for the three months ended March 31, 2025 when compared to the 2024 period as the Company continued our focus on cost-cutting initiatives related to the wind-down of business lines that are not part of our unified modern retirement solutions platform. In addition, there was a reduction in compensation cost associated with the Replacement RSUs and Earnout Right RSUs which expired in 2024. Average onshore headcount declined from 278 for the three months ended March 31, 2024 to 235 for the three months ended March 31, 2025. Additionally, shared services allocations increased $1.2 million due to 

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increased Corporate support of our unified modern solutions platform during the three months ended March 31, 2025. 

•General and administrative expenses, net of shared services allocations, decreased $0.7 million or 11.5% primarily 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 during the three months ended March 31, 2025 when compared to the 2024 period.

Non-GAAP Financial Measures

The Company’s management evaluates performance of the Company through the use of certain non-GAAP financial measures, 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. generally accepted accounting principles (“