BETRW — Better Home & Finance Holding Company

Summary of Better Home & Finance Holding Company Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Funded Loan Volume: $1.64 billion, up 89% year-over-year, exceeding guidance.
• Revenue from Continuing Operations: $47.5 million, a 52% increase year-over-year.
• Adjusted EBITDA Loss: Approximately $19 million, reflecting a 48% improvement year-over-year.
• Expense Growth: Total expenses increased by 27% year-over-year, indicating operational leverage.
• Product Mix: 50% refinance, 36% purchase, and 12% home equity in funded loan volume.

2. Strategic Updates and Business Highlights

• Tinman AI Platform: Funded loan volume from Tinman AI reached approximately 50% of total volume, up from 44% in Q4 2025.
• Partnerships: Key partnerships with Credit Karma and others are ramping up, significantly increasing pre-approval volumes.
• Product Innovations: Launched the Better Home Equity card and a crypto-backed mortgage product in partnership with Coinbase, aimed at enhancing customer engagement and diversifying offerings.
• Cost Reduction Initiatives: Plans to remove at least $25 million in annualized costs and expand warehouse capacity by 48% to $850 million.

3. Forward Guidance and Outlook

• Q2 2026 Guidance: Expected funded loan volume between $1.575 billion and $1.725 billion, representing 37% year-over-year growth. Revenue projected between $53 million and $56 million, indicating 28% growth year-over-year.
• Adjusted EBITDA Loss: Anticipated in the range of $12.5 million to $14 million, with a commitment to reach breakeven by the end of Q3 2026, contingent on macroeconomic conditions.

4. Bad News, Challenges, or Points of Concern

• Macro Environment Impact: Rising interest rates due to geopolitical tensions have led to decreased conversion rates, particularly for refinancing, as consumers hesitate to lock in higher rates.
• Conversion Rates: Notable decline in conversion rates from pre-approval to funded loans due to the current rate environment.
• Visibility on Targets: Uncertainty regarding achieving the $1 billion monthly funded volume target, now deferred due to macro volatility.
• Competitive Pressures: The mortgage industry remains competitive, with ongoing challenges from traditional lenders and fintechs.

5. Notable Q&A Insights

• Macro Assumptions: Management is assuming no resolution to current geopolitical tensions and has adopted a conservative outlook for Q2.
• HELOC Economics: HELOCs provide a higher gain on sale compared to traditional mortgages, averaging between 6-7 points versus 2.5 points for direct-to-consumer mortgages.
• Partnership Growth: New partnerships are ramping well, with significant increases in top-of-funnel pre-approval volumes.
• Operational Efficiency: The use of AI tools like Betsy is expected to enhance operational efficiency and customer engagement, allowing Better to manage spikes in demand more effectively.

Overall, while Better Home & Finance demonstrated strong growth in Q1 2026, the company faces challenges from a volatile macro environment impacting conversion rates and loan volume targets. However, strategic partnerships and product innovations position the company for potential future growth.