Finance of America Companies Inc.

Previous wording

Through FAR, the Company originates, acquires, and services (in partnership with third-party subservicers) home equity conversion mortgage (“HECM”) loans, which are originated pursuant to the Federal Housing Administration (the “FHA”) HECM program and are insured by the FHA, and non-agency reverse mortgage loans, which are not insured by the FHA. We have launched several non-agency reverse mortgage loan products to serve the U.S. senior population. At the same time, we continuously look to develop and launch new products to satisfy this vast and largely underserved market. For example, we previously launched a non-agency second lien reverse mortgage loan product, second in priority behind the first lien of an existing traditional mortgage loan or home equity line of credit collateralized by the same mortgaged property. This second lien product has enabled us to serve borrowers who already have and desire to maintain a low-rate primary mortgage but want the convenience of a flexible second lien loan with no required monthly principal and interest payments. In April 2026, FOA rolled out a new second lien reverse mortgage line of credit, which is a non-revolving, multi-draw product that allows borrowers to tap their equity at the times and in the amounts that precisely suit their needs. We are also pursuing partnerships with mortgage servicers to make our second lien reverse mortgage loan products available to their eligible traditional mortgage customers with a streamlined approval process, which we expect to broaden the reach of, and raise originations volumes for, the second lien product. Additionally, in 2026, we commenced originating certain traditional home equity loan products. This marks the first time that we have originated traditional home equity loans and enables us to serve potential borrowers who need higher loan-to-value solutions than those provided by our suite of reverse mortgage loan products. Further, in December 2025, we announced a strategic partnership with funds managed by Blue Owl Capital, Inc., which includes a joint innovation and product-development initiative focused on the continuous rollout of new, differentiated financial products tailored for people looking to maximize freedom, security, and opportunity throughout their retirement. These efforts exemplify our commitment to meet and serve new kinds of borrowers. We are a leader in this market and we are focused on developing and offering products for borrowers with interest in using home equity-based financing solutions as retirement planning tools, which we believe will continue to increase our addressable customer base and ultimately raise our origination volumes.

Current wording

Through FAR, the Company originates, acquires, and services (in partnership with third-party subservicers) home equity conversion mortgage (“HECM”) loans, which are originated pursuant to the Federal Housing Administration (the “FHA”) HECM program and are insured by the FHA, and non-agency reverse mortgage loans, which are not insured by the FHA. We have launched several non-agency reverse mortgage loan products to serve the U.S. senior population. At the same time, we continuously look to develop and launch new products to satisfy this vast and largely underserved market. For example, we previously launched a non-agency second lien reverse mortgage loan product, second in priority behind the first lien of an existing traditional mortgage loan or home equity line of credit collateralized by the same mortgaged property. This second lien product has enabled us to serve borrowers who already have and desire to maintain a low-rate primary mortgage but want the convenience of a flexible second lien loan with no required monthly principal and interest payments. In April 2026, FOA rolled out a new second lien reverse mortgage line of credit, which is a non-revolving, multi-draw product that allows borrowers to tap their equity at the times and in the amounts that precisely suit their needs. We are also pursuing partnerships with mortgage servicers to make our second lien reverse mortgage loan products available to their eligible traditional mortgage customers with a streamlined approval process, which we expect to broaden the reach of, and raise origination volumes for, the second lien product. Additionally, in 2026, we commenced originating certain traditional home equity loan products. This marks the first time that we have originated traditional home equity loans and enables us to serve potential borrowers who need higher loan-to-value solutions than those provided by our suite of reverse mortgage loan products. Further, in December 2025, we announced a strategic partnership with funds managed by Blue Owl Capital, Inc., which includes a joint innovation and product-development initiative focused on the continuous rollout of new, differentiated financial products tailored for people looking to maximize financial freedom, security, and opportunity throughout their retirement. These efforts exemplify our commitment to meet and serve new kinds of borrowers. We are a leader in this market and we are focused on developing and offering products for borrowers with interest in using home equity-based financing solutions as retirement planning tools, which we believe will continue to increase our addressable customer base and ultimately raise our origination volumes.

Previous wording

We originate reverse mortgage loans through a retail channel (consisting primarily of a centralized retail platform) and a third-party originator (“TPO”) channel (consisting primarily of a network of mortgage brokers). In 2026, we have also begun originating traditional home equity loans initially through an artificial intelligence (“AI”) platform provided by the Better Home & Finance Holding Company (“Better”). In 2025 and 2026, we have continued to take steps to enhance our marketing and digital capabilities. In the first quarter of 2025, we completed the migration of our telephony platform, and we have continued to enhance its performance. In the second quarter of 2025, we launched and transitioned to our new brand platform, “A Better Way with FOA,” alongside the launch of a national advertising campaign, which integrates a mix of traditional and online mediums. This represents a shift in marketing strategy designed to enhance brand visibility and connect with a new generation of customers through modernized messaging that reflects the real-life goals and aspirations of today’s senior homeowners. We have also continued to enhance our digital capabilities by leveraging automated digital tools to improve efficiency and the overall ease of transacting. In June 2025, we launched a digital pre-qualification tool for certain products that can deliver a three-minute pre-qualification experience, setting a new benchmark for speed and customer engagement in the industry. In the fourth quarter of 2025, we launched “Joy,” our AI-powered customer ambassador chatbot, to provide consumer support over the telephone. In 2026, we expanded Joy’s capabilities, including enabling Joy to provide consumer support via the exchange of online instant messages, and separately implemented SMS engagement tools for sales teams. These efforts have culminated in the launch of Helix, our proprietary, industry first end-to-end platform that connects how we acquire, evaluate, and move customers through the loan origination process, with Joy operating as the AI layer across that system. Additionally, in 2025, we engaged in efforts to refine the systems used by our mortgage broker partners to improve the efficiency and ease of originations via our TPO channel. We believe that these efforts have and will (i) increase brand and product recognition among customers and mortgage brokers, (ii) improve overall customer experience, and (iii) ultimately raise our origination volumes.

Current wording

We originate reverse mortgage loans through a retail channel (consisting primarily of a centralized retail platform) and a third-party originator (“TPO”) channel (consisting primarily of a network of mortgage brokers). In 2026, we have also begun originating traditional home equity loans initially through an artificial intelligence (“AI”) platform provided by the Better Home & Finance Holding Company (“Better”). In 2025 and 2026, we have continued to take steps to enhance our marketing and digital capabilities. In the first quarter of 2025, we completed the migration of our telephony platform, and we have continued to enhance its performance. In the second quarter of 2025, we launched and transitioned to our new brand platform, “A Better Way with FOA,” alongside the launch of a national advertising campaign, which integrates a mix of traditional and online mediums. This represents a shift in marketing strategy designed to enhance brand visibility and connect with a new generation of customers through modernized messaging that reflects the real-life goals and aspirations of today’s senior homeowners. We have also continued to enhance our digital capabilities by leveraging automated digital tools to improve efficiency and the overall ease of transacting. In June 2025, we launched a digital pre-qualification tool for certain products that can deliver a three-minute pre-qualification experience, setting a new benchmark for speed and customer engagement in the industry. In the fourth quarter of 2025, we launched “Joy,” our AI-powered customer ambassador chatbot, to provide consumer support over the telephone. In 2026, we expanded Joy’s capabilities, including enabling Joy to provide consumer support via the exchange of online instant messages, and separately implemented SMS engagement tools for sales teams. These efforts have culminated in the launch of FOA Intelligence, or FOAi, our proprietary, industry-first end-to-end platform that connects how we acquire, evaluate, and move customers through the loan origination process, with Joy operating as the AI layer across that system. Additionally, in 2025, we engaged in efforts to refine the systems used by our mortgage broker partners to improve the efficiency and ease of originations via our TPO channel. We believe that these efforts have and will (i) increase brand and product recognition among customers and mortgage brokers, (ii) improve overall customer experience, and (iii) ultimately raise our origination volumes.

Previous wording

Our Portfolio Management segment provides structuring and product development expertise as well as broker/dealer and institutional asset management capabilities, which facilitates innovation and the successful monetization of our loans. We securitize HECM loans into Home Equity Conversion Mortgage-Backed Securities (“HMBS”), which the Government National Mortgage Association (“Ginnie Mae”) guarantees, and sell HMBS in the secondary market while retaining the rights to service the HECM loans. When HECM loans are not eligible for securitization into HMBS or are required to be bought out of a pool of HECM loans previously securitized into HMBS, we convey the

Current wording

Our Portfolio Management segment provides structuring and product development expertise as well as broker/dealer and institutional asset management capabilities, which facilitates innovation and the successful monetization of our loans. We securitize HECM loans into Home Equity Conversion Mortgage-Backed Securities (“HMBS”), which the Government National Mortgage Association (“Ginnie Mae”) guarantees, and sell HMBS in the secondary market while retaining the rights to service the HECM loans. When HECM loans are not eligible for securitization into

Previous wording

HECM loans to the United States Department of Housing and Urban Development (“HUD”) or liquidate them in accordance with program requirements, securitize them into privately placed mortgage-backed securities (“MBS”), or hold them for investment. In November 2024, Ginnie Mae announced the finalized term sheet for its HMBS 2.0 program. If implemented, the HMBS 2.0 program will enable us to securitize into HMBS additional HECM loans that are required to be bought out of pools of HECM loans securitized pursuant to Ginnie Mae’s existing HMBS program or otherwise not eligible for securitization pursuant to Ginnie Mae’s existing HMBS program (subject to expanded eligibility parameters applicable to the HMBS 2.0 program), increasing the HECM loans that we are able to securitize into HMBS. We either securitize non-agency reverse mortgage loans into MBS sold to investors or sell them as whole loans to investors, while retaining the right to service the loans. We may also decide to strategically hold certain non-agency reverse mortgage loans for investment. We sell traditional home equity loans as whole loans to investors on a servicing released basis. The capabilities provided by the Portfolio Management segment allowed us to complete several sales and issuances of MBS backed by our loan products in 2025 and the first half of 2026, including a nearly $2 billion securitization of non-agency reverse mortgage loans in September 2025, the largest in Company history. This demonstrates the high quality and liquidity of the loan products we originate, the deep relationships we have with our investors, and the resilience of our business model in many economic environments.

Current wording

HMBS or are required to be bought out of a pool of HECM loans previously securitized into HMBS, we convey the HECM loans to the United States Department of Housing and Urban Development (“HUD”) or liquidate them in accordance with program requirements, securitize them into privately placed mortgage-backed securities (“MBS”), or hold them for investment. In November 2024, Ginnie Mae announced the finalized term sheet for its HMBS 2.0 program. If implemented, the HMBS 2.0 program will enable us to securitize into HMBS additional HECM loans that are required to be bought out of pools of HECM loans securitized pursuant to Ginnie Mae’s existing HMBS program or otherwise not eligible for securitization pursuant to Ginnie Mae’s existing HMBS program (subject to expanded eligibility parameters applicable to the HMBS 2.0 program), increasing the HECM loans that we are able to securitize into HMBS. We either securitize non-agency reverse mortgage loans into MBS sold to investors or sell them as whole loans to investors, while retaining the right to service the loans. We may also decide to strategically hold certain non-agency reverse mortgage loans for investment. We sell traditional home equity loans as whole loans to investors on a servicing released basis. The capabilities provided by the Portfolio Management segment allowed us to complete several sales and issuances of MBS backed by our loan products in 2025 and during the first nine months of 2026, including a nearly $2 billion securitization of non-agency reverse mortgage loans in September 2025, the largest in Company history. This demonstrates the high quality and liquidity of the loan products we originate, the deep relationships we have with our investors, and the resilience of our business model in many economic environments.

Previous wording

•prevailing interest rates which impact loan origination volume, with declining interest rates generally leading to increases in volume, and an increasing interest rate environment generally leading to decreases in volume;

Current wording

•prevailing interest rates, which impact loan origination volume, with declining interest rates generally leading to increases in volume and increasing interest rates generally leading to decreases in volume, as well as movements in market interest rates and yields required by investors, with increases generally having negative impacts on the fair value of our financial assets and decreases generally having positive impacts;

Previous wording

•broad economic factors such as the strength and stability of the overall economy, including sustained higher or lower interest rates, inflation, the unemployment level, real estate values, and trade and tax policies.

Current wording

•broad economic factors such as the strength and stability of the overall economy, including inflation, the unemployment level, real estate values, and trade and tax policies.

Previous wording

The U.S. Federal Reserve’s monetary policies and the federal government’s tariff policies may have an impact on economic conditions relevant to our business, including real estate values and prevailing mortgage rates, however, the extent of the impact remains uncertain. Higher interest rates generally lead to lower mortgage transaction volumes, increased competition, and lower profit margins. Volatility in market conditions resulting from the foregoing policies may cause credit spreads to widen, which reduces, among other things, availability of credit to our Company on favorable terms, liquidity in the market, the fair value of assets on our balance sheet, and price transparency of real estate-related or asset-backed assets.

Current wording

The U.S. Federal Reserve’s monetary policies and the federal government’s tariff policies may have an impact on economic conditions relevant to our business, including real estate values and prevailing mortgage rates; however, the extent of the impact remains uncertain. In September 2026, the U.S. Federal Reserve increased the target range for the federal funds rate by 25 basis points. Higher interest rates generally lead to lower mortgage transaction volumes, increased competition, and lower profit margins. During the three months ended September 30, 2026, an increase in interest rates resulted in negative non-cash fair value adjustments to certain assets in our portfolio and placed pressure on reverse mortgage origination margins. In response to these market conditions, in October 2026, we implemented changes to our products and pricing intended to improve reverse mortgage origination margins. Volatility in market conditions resulting from the foregoing policies may cause credit spreads to widen, which reduces, among other things, availability of credit to our Company on favorable terms, liquidity in the market, the fair value of assets on our balance sheet, and price transparency of real estate-related or asset-backed assets.

Previous wording

Our Company is actively monitoring these events and their effects on the Company’s financial condition, liquidity, operations, industry, and workforce. These continuing economic impacts may cause additional volatility in the financial markets and may have an adverse effect on the Company’s results of future operations, financial condition, and liquidity in 2026 and beyond. See the Results of Operations section below.

Current wording

Our Company is actively monitoring these events and their effects on the Company’s financial condition, liquidity, operations, industry, and workforce. The U.S. Federal Reserve has indicated that additional increases to the target range for the federal funds rate may be implemented in the future to combat persistent inflation. However, future changes in monetary policy, including potential adjustments to interest rates, remain uncertain and may be influenced by inflation, employment, and other economic conditions. These continuing economic impacts may cause additional volatility in the financial markets and may have an adverse effect on the Company’s future results of operations, financial condition, and liquidity in 2026 and beyond. See the Results of Operations section below.

Previous wording

Net income (loss) from continuing operations before income taxes decreased $198.4 million primarily as a result of the following:

Current wording

Net loss from continuing operations before income taxes increased $101.2 million primarily as a result of the following:

Previous wording

•Net origination gains increased $10.5 million as a result of higher reverse mortgage loan origination volumes. We recognized $66.6 million in net origination gains on loan originations of $730.0 million for the three months ended June 30, 2026 compared to $56.1 million in net origination gains on loan originations of $602.3 million for the comparable 2025 period.

Current wording

•Net origination gains decreased $0.5 million as higher reverse mortgage loan origination volume was offset by lower margins resulting from the increase in interest rates during the period. We recognized $59.5 million in net origination gains on loan originations of $748.4 million for the three months ended September 30, 2026 compared to $59.9 million in net origination gains on loan originations of $602.9 million for the comparable 2025 period.

Previous wording

•Total expenses increased $17.0 million primarily due to increases in salaries, benefits, and related expenses as a result of higher compensation resulting from increased loan production, an increase in marketing and advertising expenses related to our investment in marketing for future volume growth, and an increase in loan portfolio related expenses as a result of higher securitization expenses and increased loan production. We issued $1.2 billion of notes during the three months ended June 30, 2026 compared to $0.9 billion for the 2025 period.

Current wording

•Total expenses decreased $0.1 million primarily due to decreased loan portfolio related expenses as a result of lower securitization expenses. We issued $1.7 billion of notes during the three months ended September 30, 2026 compared to $3.2 billion during the 2025 period. This was offset by increases in salaries, benefits, and related expenses as a result of higher compensation associated with increased loan production, particularly in our retail channel, as well as an increase in marketing and advertising expenses related to our investment in marketing to support future loan origination volume growth.

Previous wording

Net income (loss) from continuing operations before income taxes decreased $153.0 million primarily as a result of the following:

Current wording

Net income (loss) from continuing operations before income taxes decreased $299.7 million primarily as a result of the following:

Previous wording

•Net portfolio interest income decreased $8.7 million due to a higher cost of funds within our securitized financing portfolio, which was partially offset by increased gains on extinguishment of debt related to the purchases of securities that were previously issued by consolidated trusts. Fair value changes from model amortization improved $8.2 million primarily due to higher accreted yield on the Company’s residual interests during the six months ended June 30, 2026 compared to the 2025 period.

Current wording

•Net portfolio interest income decreased $25.2 million primarily due to lower gains on extinguishment of debt recognized during the nine months ended September 30, 2026 compared to the 2025 period related to purchases of securities that were previously issued by consolidated trusts, and a higher cost of funds within our securitized portfolio, which was partially offset by increased net portfolio interest income related to the OMC Transaction. Gains on securitization of HECM tails, net, increased $11.8 million as a result of the OMC Transaction.

Previous wording

•Net origination gains increased $25.4 million as a result of higher reverse mortgage loan origination volumes and higher margins. We recognized $127.5 million in net origination gains on reverse mortgage loan originations of $1.3 billion for the six months ended June 30, 2026 compared to $102.1 million in net origination gains on loan originations of $1.2 billion for the comparable 2025 period.

Current wording

•Net origination gains increased $24.9 million as a result of higher reverse mortgage loan origination volume. We recognized $186.9 million in net origination gains on reverse mortgage loan originations of $2.1 billion for the nine months ended September 30, 2026 compared to $162.0 million in net origination gains on loan originations of $1.8 billion for the comparable 2025 period.

Previous wording

•Total expenses increased $36.0 million primarily due to increases in salaries, benefits, and related expenses as a result of higher compensation resulting from increased loan production, as well as increased headcount to support the Company’s investment in our technology initiatives, an increase in marketing and advertising expenses related to our investment in marketing for future volume growth, and an increase in loan portfolio related expenses as a result of higher securitization expenses and increased loan production. We issued $2.9 billion of notes during the six months ended June 30, 2026 compared to $1.7 billion for the 2025 period.

Current wording

•Total expenses increased $35.9 million primarily due to increases in salaries, benefits, and related expenses as a result of higher compensation associated with increased loan production, particularly in our retail channel, as well as increased headcount to support the Company’s investment in our technology initiatives, and an increase in marketing and advertising expenses related to our investment in marketing to support future loan origination volume growth. This was partially offset by a decrease in loan portfolio related expenses as a result of lower securitization expenses. We issued $4.6 billion of notes during the nine months ended September 30, 2026 compared to $4.9 billion for the 2025 period.

Previous wording

•Other, net, decreased $21.1 million primarily due to a $24.3 million loss on convertible notes resulting from the increase in FOA’s stock price from $16.60 to $27.52 during the three months ended June 30, 2026, as well as valuation changes in certain non-operating assets and deferred purchase price liabilities.

Current wording

•Other, net, increased $35.5 million primarily due to a $22.9 million fair value gain on convertible notes resulting from changes in FOA’s stock price during the nine months ended September 30, 2026 compared to a $9.8 million fair value loss in the 2025 period, as well as valuation changes in certain non-operating assets and deferred purchase price liabilities.

Previous wording

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 and six months ended June 30, 2026 and 2025. Expenses for enterprise-level general overhead, such as executive administration, are not allocated to the business segments.

Current wording

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 and nine months ended September 30, 2026 and 2025. Expenses for enterprise-level general overhead, such as executive administration, are not allocated to the business segments.

Previous wording

(2) Tails consist of subsequent borrower draws, mortgage insurance premiums, service fees, and other advances, which are added to the balance of the reverse mortgage loans and which we are able to subsequently securitize.

Current wording

(2) Tails consist of subsequent borrower draws, mortgage insurance premiums, service fees, and other advances that are added to the balance of the reverse mortgage loans and that we are able to subsequently securitize.

Previous wording

•Net origination gains increased $25.4 million or 24.8% as a result of higher reverse mortgage loan origination volumes and higher margins. We originated $1.3 billion of reverse mortgage loans for the six months ended June 30, 2026, an increase of 14.0%, compared to $1.2 billion for the comparable 2025 period. During the six months ended June 30, 2026, the weighted average margin on reverse mortgage loan production was 9.6% compared to 8.8% in the 2025 period, an increase of 0.8%.

Current wording

Total revenues decreased $1.1 million or 1.6% primarily due to lower net origination gains, which decreased $0.5 million or 0.8% as higher reverse mortgage loan origination volume was offset by lower margins resulting from the increase in interest rates during the period. We originated $748.4 million of reverse mortgage loans for the three months ended September 30, 2026, an increase of 24.1%, compared to $602.9 million for the comparable 2025 period. During the three months ended September 30, 2026, the average margin on reverse mortgage loan production was 7.9% compared to 9.9% in the 2025 period, a decrease of 2.0%.

Previous wording

•Total salaries, benefits, and related expenses increased $5.0 million primarily due to higher compensation resulting from increased loan production.

Current wording

•Total salaries, benefits, and related expenses increased $7.1 million primarily due to higher compensation associated with increased loan production, particularly in our retail channel.

Previous wording

•Total salaries, benefits, and related expenses increased $8.9 million primarily due to higher compensation resulting from increased loan production.

Current wording

•Total salaries, benefits, and related expenses increased $16.0 million primarily due to higher compensation associated with increased loan production, particularly in our retail channel.

Previous wording

•Net portfolio interest income decreased $8.7 million due to a higher cost of funds within our securitized financing portfolio, which was partially offset by increased gains on extinguishment of debt related to the purchases of securities that were previously issued by consolidated trusts. Fair value changes from model amortization improved $8.2 million primarily due to higher accreted yield on the Company’s residual interests during the six months ended June 30, 2026 compared to the 2025 period.

Current wording

•Net portfolio interest income decreased $25.2 million primarily due to lower gains on extinguishment of debt recognized during the nine months ended September 30, 2026 compared to the 2025 period related to purchases of securities that were previously issued by consolidated trusts, and a higher cost of funds within our securitized portfolio, which was partially offset by increased net portfolio interest income related to the OMC Transaction. Gains on securitization of HECM tails, net, increased $11.8 million as a result of the OMC Transaction.

Previous wording

•Loan portfolio related expenses increased $3.9 million due to higher securitization expenses during the three months ended June 30, 2026 compared to the 2025 period. We issued $1.2 billion of notes during the three months ended June 30, 2026 compared to $0.9 billion for the 2025 period.

Current wording

Total expenses decreased $12.7 million or 33.1% primarily due to lower loan portfolio related expenses, which decreased $15.1 million due to a decline in securitization expenses during the three months ended September 30, 2026 compared to the 2025 period. We issued $1.7 billion of notes during the three months ended September 30, 2026 compared to $3.2 billion during the 2025 period. This decrease was partially offset by a $1.1 million increase in loan servicing expenses associated with the OMC HECM portfolio acquired on June 30, 2026.

Previous wording

Corporate and Other consists of our corporate services groups, as well as certain inter-segment revenues and expenses that are eliminated in the condensed consolidated financial statements. These groups support our operating segments, and the cost of services directly supporting the operating segments are allocated to those operating segments on a cost-of-service basis. Enterprise-focused Corporate and Other expenses that are not incurred in direct support of the operating segments are kept unallocated within Corporate and Other.

Current wording

Corporate and Other consists of our corporate services groups, as well as certain inter-segment revenues and expenses that are eliminated in the condensed consolidated financial statements. These groups support our operating segments, and the costs of services directly supporting the operating segments are allocated to those operating segments on a cost-of-service basis. Enterprise-focused Corporate and Other expenses that are not incurred in direct support of the operating segments are kept unallocated within Corporate and Other.

Previous wording

•Salaries, benefits, and related expenses, net of shared services allocations, increased $3.8 million for the six months ended June 30, 2026 when compared to the 2025 period primarily due to increased headcount to support the Company’s investment in our technology initiatives.

Current wording

Total expenses increased $3.6 million or 8.0% due to higher salaries, benefits, and related expenses, net of shared services allocations, which increased $3.2 million during the nine months ended September 30, 2026 when compared to the 2025 period primarily due to increased headcount to support the Company’s investment in technology initiatives.

Previous wording

Other, net, decreased $21.1 million primarily due to a $24.3 million loss on convertible notes resulting from the increase in FOA’s stock price from $16.60 to $27.52 during the three months ended June 30, 2026, as well as valuation changes in certain non-operating assets and deferred purchase price liabilities.

Current wording

Other, net, increased $35.5 million primarily due to a $22.9 million fair value gain on convertible notes resulting from changes in FOA’s stock price during the nine months ended September 30, 2026 compared to a $9.8 million fair value loss in the 2025 period, as well as valuation changes in certain non-operating assets and deferred purchase price liabilities.

Previous wording

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

Current wording

The Company’s management evaluates performance of the Company through the use of certain financial measures that are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), including adjusted total revenues, adjusted net income, adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”), adjusted earnings per share, tangible equity, and tangible equity per share.

Previous wording

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, adjusted EBITDA, adjusted earnings per share, tangible equity, and tangible equity per share 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.

Current wording

These non-GAAP financial measures should not be considered as an alternative to total revenues, net income (loss), operating cash flows, or any other performance measures determined in accordance with U.S. GAAP. Adjusted total revenues, adjusted net income, adjusted EBITDA, adjusted earnings per share, tangible equity, and tangible equity per share 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.

Previous wording

Because of these limitations, adjusted net income, adjusted EBITDA, adjusted earnings per share, tangible equity, and tangible equity per share 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.

Current wording

Because of these limitations, adjusted total revenues, adjusted net income, adjusted EBITDA, adjusted earnings per share, tangible equity, and tangible equity per share 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.

Previous wording

Management considers adjusted net income 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 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.

Current wording

Management considers adjusted net income 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 net income 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.

Previous wording

The following table presents a reconciliation of net income (loss) from continuing operations to adjusted net income and adjusted EBITDA, as well as adjusted earnings per share, tangible equity, and tangible equity per share (in thousands, except for share data):

Current wording

The following table presents a reconciliation of total revenues to adjusted total revenues and net income (loss) from continuing operations to adjusted net income and adjusted EBITDA, as well as adjusted earnings per share, tangible equity, and tangible equity per share (in thousands, except for share data):

Previous wording

Our cash flows from operations, borrowing availability, and overall liquidity are subject to risks and uncertainties. We may not be able to obtain additional liquidity on reasonable terms, or at all. Additionally, our liquidity and our ability to meet our obligations and fund our capital requirements are dependent on our future financial performance, which is subject to general economic, financial, and other factors that are beyond our control. Accordingly, our business may not generate sufficient cash flow from operations and future borrowings may not be available from additional indebtedness or otherwise to meet our liquidity needs. If we decide to pursue one or more significant acquisitions, we may incur additional debt or sell additional equity to finance such acquisitions, which could result in additional expenses or dilution.

Current wording

Our cash flows from operations, borrowing availability, and overall liquidity are subject to risks and uncertainties. We may not be able to obtain additional liquidity on reasonable terms, or at all. Additionally, our liquidity and our ability to meet our obligations and fund our capital requirements are dependent on our future financial performance, which is subject to general economic, financial, and other factors that are beyond our control. Accordingly, our business may not generate sufficient cash flow from operations and future borrowings or other sources of financing may not be available to meet our liquidity needs. If we decide to pursue one or more significant acquisitions, we may incur additional debt or sell additional equity to finance such acquisitions, which could result in additional expenses or dilution.

Previous wording

Our cash and cash equivalents and restricted cash increased by $15.8 million for the six months ended June 30, 2026 compared to a decrease of $65.3 million during the comparable period in 2025. Our cash and cash equivalents, excluding restricted cash, decreased $4.2 million for the six months ended June 30, 2026 compared to a decrease of $0.9 million during the comparable period in 2025.

Current wording

Our cash and cash equivalents and restricted cash increased by $476.4 million for the nine months ended September 30, 2026 compared to an increase of $100.4 million during the comparable period in 2025. Our cash and cash equivalents, excluding restricted cash, increased $28.9 million for the nine months ended September 30, 2026 compared to an increase of $62.4 million during the comparable period in 2025. Our restricted cash increased $447.5 million during the nine months ended September 30, 2026, which was primarily attributable to cash held in connection with a securitization completed during the third quarter of 2026 that will be used to purchase additional collateral for the securitization.

Previous wording

Cash flows from operating activities decreased by $125.6 million for the six months ended June 30, 2026 compared to the corresponding 2025 period, which was primarily attributable to an increase in cash used for originations of loans held for sale, net of proceeds on sale.

Current wording

Cash flows from operating activities decreased by $149.4 million for the nine months ended September 30, 2026 compared to the corresponding 2025 period, which was primarily attributable to an increase in cash used for originations of loans held for sale, net of proceeds on sale.

Previous wording

The decrease of $133.2 million in cash flows from our investing activities during the six months ended June 30, 2026 compared to the 2025 period was primarily attributable to a $195.8 million decrease in proceeds/payments on loans held for investment, net of cash used for purchases and originations, and a $91.8 million cash outlay for the OMC Transaction. This was partially offset by a $152.6 million increase in proceeds/payments on loans held for investment, subject to nonrecourse debt, net of cash used for purchases and originations.

Current wording

The decrease of $316.9 million in cash flows from our investing activities during the nine months ended September 30, 2026 compared to the 2025 period was primarily attributable to a $472.9 million increase in cash used for purchases and originations of loans held for investment, net of proceeds/payments, and a $117.5 million cash outlay for the OMC Transaction. This was partially offset by a $260.3 million increase in proceeds/payments on loans held for investment, subject to nonrecourse debt, net of cash used for purchases and originations.

Previous wording

The increase of $339.9 million in cash flows from our financing activities during the six months ended June 30, 2026 compared to the 2025 period was primarily driven by a $564.0 million increase in proceeds from nonrecourse debt, net of payments, and a $110.6 million decrease in payments on HMBS related obligations, net of proceeds. This was partially offset by a $291.1 million increase in payments on other financing lines of credit, net of proceeds, $41.6 million of cash used for the repurchase of Class A Common Stock and Class A LLC Units, and $2.3 million of cash used for dividends paid on the Preferred Stock.

Current wording

The increase of $842.2 million in cash flows from our financing activities during the nine months ended September 30, 2026 compared to the 2025 period was primarily driven by a $445.2 million increase in proceeds from nonrecourse debt, net of payments, a $207.2 million decrease in payments on HMBS related obligations, net of proceeds, a $193.3 million decrease in payments on other financing lines of credit, net of proceeds, and a $45.0 million decrease in payments on notes payable, net of proceeds. This was partially offset by $41.6 million of cash used for the repurchase of Class A Common Stock and Class A LLC Units and $3.4 million of cash used for dividends paid on the Preferred Stock.

Previous wording

As of June 30, 2026, FAR was in compliance with the minimum net worth, liquidity, capitalization levels, and insurance requirements of Ginnie Mae. FAR’s actual ratio of adjusted net worth to total assets was below the Ginnie Mae requirement due to the Company’s determination that HECM loans transferred into HMBS as well as its HECM buyout and non-agency reverse mortgage loan securitizations do not meet the requirements of sale accounting and are not derecognized upon date of transfer. As a result, the Company accounts for HECM loans transferred into HMBS as well as its HECM buyout and non-agency reverse mortgage loan securitizations as secured borrowings and continues to recognize the loans as held for investment, subject to HMBS related obligations or nonrecourse debt, along with the corresponding liability for the HMBS related obligations or nonrecourse debt. Based on this, FAR requested and received a waiver for the minimum outstanding capital requirements from Ginnie Mae. Therefore, FAR was in compliance with all Ginnie Mae requirements.

Current wording

FAR’s actual ratio of adjusted net worth to total assets was below the Ginnie Mae requirement due to the Company’s determination that HECM loans transferred into HMBS as well as its HECM buyout and non-agency reverse mortgage loan securitizations do not meet the requirements of sale accounting and are not derecognized upon transfer. As a result, the Company accounts for HECM loans transferred into HMBS as well as its HECM buyout and non-agency reverse mortgage loan securitizations as secured borrowings and continues to recognize the loans as held for investment, subject to HMBS related obligations or nonrecourse debt, along with the corresponding liability for the HMBS related obligations or nonrecourse debt. Accordingly, FAR requested and received a waiver from Ginnie Mae for the leverage ratio requirement. In addition, FAR is required to maintain both fidelity bond and errors and omissions insurance coverage at tiered levels based on the aggregate UPB of the loans serviced by FAR throughout the year. FAR is required to conduct compliance testing at least quarterly to ensure compliance with the foregoing requirements. As of September 30, 2026, FAR was in compliance with all Ginnie Mae requirements.

Previous wording

The following description is a summary of certain material provisions of our outstanding indebtedness. As of June 30, 2026, our total debt obligations were $36.8 billion. This summary does not restate the terms of our outstanding indebtedness in its entirety, nor does it describe all of the material terms of our indebtedness.

Current wording

The following description is a summary of certain material provisions of our outstanding indebtedness. As of September 30, 2026, our total debt obligations were $37.3 billion. This summary does not restate the terms of our outstanding indebtedness in its entirety, nor does it describe all of the material terms of our indebtedness.

Previous wording

As of June 30, 2026, we had HMBS related obligations of $24.7 billion and HECM loans pledged as collateral to the pools of $25.0 billion, both recorded at fair value.

Current wording

As of September 30, 2026, we had HMBS related obligations of $24.8 billion and HECM loans pledged as collateral to the pools of $25.2 billion, both recorded at fair value.

Previous wording

We securitize and issue interests in pools of loans that are not eligible for the Ginnie Mae securitization program, which include non-agency reverse mortgage loans and HECM buyouts. The transactions provide investors with the ability to invest in these pools of assets. The transactions provide us with access to liquidity for these assets, ongoing servicing fees, and potential residual returns for the residual securities we retain at the time of securitization. The transactions are structured as secured borrowings, with the loan assets and liabilities included in the Condensed Consolidated Statements of Financial Condition as Loans held for investment, subject to nonrecourse debt, at fair value, and Nonrecourse debt, at fair value, respectively. As of June 30, 2026, we had nonrecourse debt-related borrowings of $10.6 billion and loans held for investment pledged as collateral for the nonrecourse debt of $10.9 billion, both recorded at fair value.

Current wording

We securitize and issue interests in pools of loans that are not eligible for the Ginnie Mae securitization program, which include non-agency reverse mortgage loans and HECM buyouts. The transactions provide investors with the ability to invest in these pools of assets. The transactions provide us with access to liquidity for these assets, ongoing servicing fees, and potential residual returns for the residual securities we retain at the time of securitization. The transactions are structured as secured borrowings, with the loan assets and liabilities included in the Condensed Consolidated Statements of Financial Condition as Loans held for investment, subject to nonrecourse debt, at fair value, and Nonrecourse debt, at fair value, respectively. As of September 30, 2026, we had $10.9 billion of nonrecourse debt-related borrowings secured by $10.7 billion of loans held for investment pledged as collateral, both recorded at fair value, as well as $675.7 million of related restricted cash.