v3.26.1
Business Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Business Segment Reporting
12. Business Segment Reporting
The following tables present financial information by segment (in thousands):
For the three months ended March 31, 2026
Retirement Solutions Portfolio ManagementTotal Reportable SegmentsCorporate and OtherTotal
Portfolio interest income
Interest income$— $467,603 $467,603 $— $467,603 
Interest expense— (401,333)(401,333)— (401,333)
Net portfolio interest income— 66,270 66,270 — 66,270 
Other income (expense)
Net origination gains60,887 — 60,887 — 60,887 
Gains on securitization of HECM tails, net— 11,667 11,667 — 11,667 
Fair value changes from model amortization— (32,020)(32,020)— (32,020)
Fair value changes from market inputs or model assumptions— 19,924 19,924 — 19,924 
Net fair value changes on loans and related obligations60,887 (429)60,458 — 60,458 
Fee income5,742 493 6,235 (123)6,112 
Non-funding interest expense, net— — — (12,698)(12,698)
Net other income (expense)66,629 64 66,693 (12,821)53,872 
Total revenues66,629 66,334 132,963 (12,821)120,142 
Expenses
Salaries, benefits, and related expenses25,713 4,298 30,011 12,593 42,604 
Loan production and portfolio related expenses1,934 15,732 17,666 — 17,666 
Loan servicing expenses— 7,446 7,446 — 7,446 
Marketing and advertising expenses13,339 — 13,339 — 13,339 
Amortization and depreciation 9,409 5 9,414 438 9,852 
General and administrative expenses6,321 2,466 8,787 5,672 14,459 
Total expenses56,716 29,947 86,663 18,703 105,366 
Other, net— — — 21,481 21,481 
Net income (loss) before taxes$9,913 $36,387 $46,300 $(10,043)$36,257 
For the three months ended March 31, 2025
Retirement Solutions Portfolio ManagementTotal Reportable SegmentsCorporate and OtherTotal
Portfolio interest income
Interest income$— $480,602 $480,602 $— $480,602 
Interest expense— (410,167)(410,167)— (410,167)
Net portfolio interest income— 70,435 70,435 — 70,435 
Other income (expense)
Net origination gains46,038 — 46,038 — 46,038 
Gains on securitization of HECM tails, net— 10,481 10,481 — 10,481 
Fair value changes from model amortization— (40,956)(40,956)— (40,956)
Fair value changes from market inputs or model assumptions— 88,263 88,263 — 88,263 
Net fair value changes on loans and related obligations46,038 57,788 103,826 — 103,826 
Fee income5,683 786 6,469 (123)6,346 
Non-funding interest expense, net— — — (14,912)(14,912)
Net other income (expense)51,721 58,574 110,295 (15,035)95,260 
Total revenues51,721 129,009 180,730 (15,035)165,695 
Expenses
Salaries, benefits, and related expenses21,852 3,632 25,484 8,446 33,930 
Loan production and portfolio related expenses1,526 9,804 11,330 — 11,330 
Loan servicing expenses— 7,741 7,741 — 7,741 
Marketing and advertising expenses10,730 — 10,730 1 10,731 
Amortization and depreciation 9,330 18 9,348 310 9,658 
General and administrative expenses5,024 2,536 7,560 5,419 12,979 
Total expenses48,462 23,731 72,193 14,176 86,369 
Other, net— — — 2,367 2,367 
Net income (loss) before taxes$3,259 $105,278 $108,537 $(26,844)$81,693 
The following table presents total assets by segment (in thousands):
March 31, 2026December 31, 2025
Retirement Solutions$170,088 $214,601 
Portfolio Management31,051,691 30,458,518 
Total reportable segments31,221,779 30,673,119 
Corporate and Other106,360 60,179 
Total assets$31,328,139 $30,733,298 
The Company has identified two reportable segments: Retirement Solutions and Portfolio Management. The Chief Operating Decision Maker (“CODM”) are certain officers of the Company, which include the Chief Executive Officer, Chief Financial Officer, and Chief Investment Officer. The CODM evaluates the performance of the Company’s segments based on net income (loss) before taxes. The CODM uses this reported measure along with periodic reviews of results and overall market activity to allocate resources to segments in the planning and forecasting process.
Retirement Solutions
Our Retirement Solutions segment conducts all of our Company’s loan origination activity, including the origination and acquisition of HECM loans and non-agency reverse mortgage loans through both the retail and third-party originator channels. The Retirement Solutions segment generates revenue from fees earned at the time of loan origination as well as from the initial estimate of net origination gains, with all originated loans accounted for at fair value. Once originated, the loans are transferred to our Portfolio Management segment, and any future fair value adjustments, including interest earned, on these originated loans are reflected in the revenues of our Portfolio Management segment until final disposition.
Portfolio Management
Our Portfolio Management segment provides product development, loan securitization, loan sales, risk management, servicing oversight, and asset management services to the Company. Our Portfolio Management team acts as the connector between borrowers and investors. The direct connections to investors, provided primarily by our Financial Industry Regulatory Authority (“FINRA”) registered broker-dealer, allow us to innovate and manage risk through better price and product discovery. Given our scale, we are able to work directly with investors and, where appropriate, retain assets on the balance sheet for attractive return opportunities. These retained investments are a source of growing and recurring interest and other servicing-related income. The Portfolio Management segment primarily generates revenue from the net interest income and fair value changes on portfolio assets, monetized through securitization, sale, or other financing of those assets.
Corporate and Other
Corporate and Other consists of our corporate services groups that support the operations of the Company, as well as certain inter-segment revenues and expenses that are eliminated in the condensed consolidated financial statements.
The Company’s segments are based upon the Company’s organizational structure which focuses primarily on the services offered. Corporate functional expenses are allocated to individual segments based on actual cost of services performed based on a direct resource utilization, estimate of percentage use for shared services, or headcount percentage for certain functions. Non-allocated corporate expenses include administrative costs of executive management and other corporate functions that are not directly attributable to the Company’s reportable segments. Revenues generated on inter-segment services performed are valued based on similar services provided to external parties.