v3.26.1
Business Segment Reporting
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Business Segment Reporting
13. Business Segment Reporting
The following tables present financial information by segment (in thousands):
For the three months ended June 30, 2026
Retirement Solutions Portfolio ManagementTotal Reportable SegmentsCorporate and OtherTotal
Portfolio interest income
Interest income$— $490,075 $490,075 $— $490,075 
Interest expense— (435,160)(435,160)— (435,160)
Net portfolio interest income— 54,915 54,915 — 54,915 
Other income (expense)
Net origination gains66,576 — 66,576 — 66,576 
Gains on securitization of HECM tails, net— 13,620 13,620 — 13,620 
Fair value changes from model amortization— (36,199)(36,199)— (36,199)
Fair value changes from market inputs or model assumptions— (31,543)(31,543)— (31,543)
Net fair value changes on loans and related obligations66,576 (54,122)12,454 — 12,454 
Fee income7,273 304 7,577 (123)7,454 
Non-funding interest expense, net— — — (12,342)(12,342)
Net other income (expense) 73,849 (53,818)20,031 (12,465)7,566 
Total revenues73,849 1,097 74,946 (12,465)62,481 
Expenses
Salaries, benefits, and related expenses28,380 4,300 32,680 9,587 42,267 
Loan production and portfolio related expenses2,905 12,129 15,034 — 15,034 
Loan servicing expenses— 7,743 7,743 — 7,743 
Marketing and advertising expenses17,188 — 17,188 26 17,214 
Amortization and depreciation9,409 5 9,414 515 9,929 
General and administrative expenses5,787 3,206 8,993 4,909 13,902 
Total expenses63,669 27,383 91,052 15,037 106,089 
Other, net— — — (27,448)(27,448)
Net income (loss) before taxes$10,180 $(26,286)$(16,106)$(54,950)$(71,056)
For the three months ended June 30, 2025
Retirement Solutions Portfolio ManagementTotal Reportable SegmentsCorporate and OtherTotal
Portfolio interest income
Interest income$— $481,800 $481,800 $— $481,800 
Interest expense— (422,336)(422,336)— (422,336)
Net portfolio interest income— 59,464 59,464 — 59,464 
Other income (expense)
Net origination gains56,058 — 56,058 — 56,058 
Gains on securitization of HECM tails, net— 10,855 10,855 — 10,855 
Fair value changes from model amortization— (35,456)(35,456)— (35,456)
Fair value changes from market inputs or model assumptions— 94,939 94,939 — 94,939 
Net fair value changes on loans and related obligations56,058 70,338 126,396 — 126,396 
Fee income6,289 573 6,862 (123)6,739 
Non-funding interest expense, net— — — (15,223)(15,223)
Net other income (expense)62,347 70,911 133,258 (15,346)117,912 
Total revenues62,347 130,375 192,722 (15,346)177,376 
Expenses
Salaries, benefits, and related expenses23,353 3,725 27,078 9,896 36,974 
Loan production and portfolio related expenses1,251 8,211 9,462 — 9,462 
Loan servicing expenses— 7,525 7,525 — 7,525 
Marketing and advertising expenses12,257 — 12,257 8 12,265 
Amortization and depreciation9,327 16 9,343 311 9,654 
General and administrative expenses5,786 2,794 8,580 4,600 13,180 
Total expenses51,974 22,271 74,245 14,815 89,060 
Other, net— — — (6,361)(6,361)
Net income (loss) before taxes$10,373 $108,104 $118,477 $(36,522)$81,955 
For the six months ended June 30, 2026
Retirement Solutions Portfolio ManagementTotal Reportable SegmentsCorporate and OtherTotal
Portfolio interest income
Interest income$— $957,678 $957,678 $— $957,678 
Interest expense— (836,493)(836,493)— (836,493)
Net portfolio interest income— 121,185 121,185 — 121,185 
Other income (expense)
Net origination gains127,463 — 127,463 — 127,463 
Gains on securitization of HECM tails, net— 25,287 25,287 — 25,287 
Fair value changes from model amortization— (68,219)(68,219)— (68,219)
Fair value changes from market inputs or model assumptions— (11,619)(11,619)— (11,619)
Net fair value changes on loans and related obligations127,463 (54,551)72,912 — 72,912 
Fee income13,015 797 13,812 (246)13,566 
Non-funding interest expense, net— — — (25,040)(25,040)
Net other income (expense)140,478 (53,754)86,724 (25,286)61,438 
Total revenues140,478 67,431 207,909 (25,286)182,623 
Expenses
Salaries, benefits, and related expenses54,093 8,598 62,691 22,180 84,871 
Loan production and portfolio related expenses4,839 27,861 32,700 — 32,700 
Loan servicing expenses— 15,189 15,189 — 15,189 
Marketing and advertising expenses30,527 — 30,527 26 30,553 
Amortization and depreciation 18,818 10 18,828 953 19,781 
General and administrative expenses12,108 5,672 17,780 10,581 28,361 
Total expenses120,385 57,330 177,715 33,740 211,455 
Other, net— — — (5,967)(5,967)
Net income (loss) before taxes$20,093 $10,101 $30,194 $(64,993)$(34,799)
For the six months ended June 30, 2025
Retirement Solutions Portfolio ManagementTotal Reportable SegmentsCorporate and OtherTotal
Portfolio interest income
Interest income$— $962,402 $962,402 $— $962,402 
Interest expense— (832,503)(832,503)— (832,503)
Net portfolio interest income— 129,899 129,899 — 129,899 
Other income (expense)
Net origination gains102,096 — 102,096 — 102,096 
Gains on securitization of HECM tails, net— 21,336 21,336 — 21,336 
Fair value changes from model amortization— (76,412)(76,412)— (76,412)
Fair value changes from market inputs or model assumptions— 183,202 183,202 — 183,202 
Net fair value changes on loans and related obligations102,096 128,126 230,222 — 230,222 
Fee income11,972 1,359 13,331 (246)13,085 
Non-funding interest expense, net— — — (30,135)(30,135)
Net other income (expense)114,068 129,485 243,553 (30,381)213,172 
Total revenues114,068 259,384 373,452 (30,381)343,071 
Expenses
Salaries, benefits, and related expenses45,205 7,357 52,562 18,342 70,904 
Loan production and portfolio related expenses2,777 18,015 20,792 — 20,792 
Loan servicing expenses— 15,266 15,266 — 15,266 
Marketing and advertising expenses22,987 — 22,987 9 22,996 
Amortization and depreciation 18,657 34 18,691 621 19,312 
General and administrative expenses10,810 5,330 16,140 10,019 26,159 
Total expenses100,436 46,002 146,438 28,991 175,429 
Other, net— — — (3,994)(3,994)
Net income (loss) before taxes$13,632 $213,382 $227,014 $(63,366)$163,648 
The following table presents total assets by segment (in thousands):
June 30, 2026December 31, 2025
Retirement Solutions$162,013 $214,601 
Portfolio Management37,042,161 30,458,518 
Total reportable segments37,204,174 30,673,119 
Corporate and Other112,589 60,179 
Total assets$37,316,763 $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.