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Better Home & Finance Holding Company Announces Second Quarter 2026 Results

August 6, 2026 4:05 PM

Better Reports Second Quarter 2026 Results, Provides Guidance for Q3 and an Update on Strategic Direction

NEW YORK--(BUSINESS WIRE)-- Better Home & Finance Holding Company (NASDAQ: BETR; BETRW) (“Better,” the “Company,” “our” or “we”), the AI-native mortgage and home equity finance company, today reported financial results for the second quarter ended June 30, 2026.

“Better’s road to excellence has never been clearer. The more I see of this business, the more convinced I am that Better has the products, technology, and distribution capabilities to define the next era of home finance. We’re focused on three priorities: expanding our reach through enterprise and wholesale partners, deepening automation to improve operating efficiency, and aggressively scaling our HELOC product, where demand has already exceeded our expectations," said Daniel Lewis, Interim Chief Executive Officer of Better. "Despite a muted near-term macro environment and the natural lead times associated with launching new partnerships, our extensive pipeline across enterprise platforms and independent mortgage brokers shows that we’re only scratching the surface of what’s possible. With our differentiated HELOC product set expanding beyond direct-to-consumer later this year, our growth will become less dependent on the macro environment and increasingly driven by our execution."

Second Quarter 2026 Financial Highlights:

Following the reclassification of our U.K.-based bank to discontinued operations, prior-period results have been recast on a comparable basis.

GAAP Results:

Key Operating Metrics and Non-GAAP Financial Measures:

“Our second quarter results reflect disciplined execution against our targets despite a highly challenging macro environment where rates remained elevated and mortgage application volume fell by over 15%,” said Loveen Advani, CFO of Better.

“We believe our diversified product mix will allow us to adapt to this sustained elevated-rate environment and to continue achieving our targets,” Advani added.

Guidance

A reconciliation of Adjusted EBITDA to Net Loss on a forward-looking basis cannot be provided without unreasonable efforts, as the Company is unable to provide reconciling information with respect to benefit for income taxes, stock-based compensation, changes in fair value of warrant liabilities, and goodwill impairment, all of which are adjustments to Adjusted EBITDA.

Second Quarter 2026 Operational Highlights:

Subsequent Events in Q3 2026:

Additional Information

For more information, please see the detailed financial data and other information available in the Company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2026, to be filed with the Securities and Exchange Commission (the “SEC”), and the investor presentation on the investor relations section of the Company’s website at https://investors.better.com.

* Webcast Details *

Event Title: Better Home & Finance Holding Company 2026 Second Quarter Results
Event Date: August 6, 2026, 4:30PM (GMT-05:00) Eastern Time (US and Canada)
Attendee Registration Link: https://events.q4inc.com/attendee/309944226

About Better

Better Home & Finance Holding Company (NASDAQ: BETR) is the first AI-native mortgage and home equity finance platform, and first fintech to fund more than $110 billion in loan volume. Since 2016, Better has leveraged its industry-leading AI platform, Tinman®, to achieve a singular mission of making homeownership cheaper, faster, and easier for all Americans. Tinman® allows customers to see their rate options in seconds, get pre-approved in minutes, lock in rates, and close their loan in as little as three weeks. In addition, Betsy®, leveraging Tinman® MCP, the first AI loan agent built exclusively for the mortgage industry, is revolutionizing the homebuying journey by delivering timely application status updates to consumers, answering questions, and moving their loan application along 24/7/365. Better’s mortgage offerings include GSE-conforming, FHA, VA loans, jumbo, and Non-QM mortgage loans as well as home equity loans. Better serves customers in all 50 US states.

For more information, follow @tinmanAI on X and @betterdotcom on Instagram and TikTok.

Forward-looking Statements

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release that are not historical fact should be considered forward-looking statements, including, without limitation, statements and expectations regarding financial results for the third quarter of 2026, including Adjusted EBITDA, Loan Volume and Total Net Revenues, cost reduction initiatives, the planned sale of the Company’s UK bank subsidiary, Birmingham Bank, and the leadership transition and related management changes. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” or the negatives of these terms or variations of them or similar terminology. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual future events to differ materially from those expressed or implied by the forward-looking statements in this communication. These risks and uncertainties include those risks discussed in the section entitled “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, as any such factors may be updated from time to time in the Company’s other filings with the SEC, which is available, free of charge, at the SEC’s website at www.sec.gov. New risks and uncertainties arise from time to time, and it is impossible for Better to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Better undertakes no obligation, except as required by law, to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.

SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS

Following are tables that present selected financial data of the Company. Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures and definitions of certain key metrics used herein.

Condensed Consolidated Balance Sheets

June 30,

December 31,

(Amounts in thousands, except share and per share amounts)

2026

2025

Assets

Cash and cash equivalents

$

102,250

$

79,357

Restricted cash

9,633

8,926

Mortgage loans held for sale, at fair value

511,080

466,681

Other receivables, net

18,233

10,716

Property and equipment, net

1,747

1,815

Right-of-use assets

4,664

4,678

Internal use software and other intangible assets, net

17,464

17,349

Goodwill

10,995

10,995

Derivative assets

3,558

4,210

Prepaid expenses and other assets

32,238

27,143

Assets held for sale

5,052

8,687

Assets of discontinued operations

825,380

864,877

Total Assets

$

1,542,294

$

1,505,434

Liabilities and Stockholders’ Equity

Liabilities

Warehouse lines of credit

$

454,334

$

411,862

Senior notes

198,802

198,802

Accounts payable and accrued expenses (includes payables to related parties of $453 and $200)

50,112

58,993

Escrow payable and other customer accounts

806

172

Derivative liabilities

220

804

Warrant and equity related liabilities, at fair value

2,172

1,476

Lease liabilities

4,579

4,629

Other liabilities

6,209

6,533

Liabilities held for sale

5,052

4,802

Liabilities of discontinued operations

762,111

780,178

Total Liabilities

1,484,397

1,468,251

Commitments and contingencies

Stockholders’ Equity

Common stock $0.0001 par value; 66,000,000 shares authorized and 18,981,789 and 15,996,907 shares issued and outstanding

2

2

Additional paid-in capital

2,232,960

2,109,762

Accumulated deficit

(2,177,142

)

(2,076,238

)

Accumulated other comprehensive gain

2,077

3,657

Total Stockholders’ Equity

57,897

37,183

Total Liabilities and Stockholders’ Equity

$

1,542,294

$

1,505,434

Condensed Consolidated Statements of Operations

Three Months Ended June 30,

(Amounts in thousands, except share and per share amounts)

2026

2025

Revenues:

Gain on loans, net

$

51,488

$

36,772

Other revenue

1,094

3,090

Net interest income

Interest income

8,333

8,556

Interest expense

(6,213

)

(5,733

)

Net interest income

2,120

2,823

Total net revenues

54,702

42,685

Expenses:

Compensation and benefits

51,579

37,833

General and administrative

10,327

10,501

Technology

8,771

6,407

Marketing and advertising

9,444

11,114

Loan origination expense

3,472

3,923

Depreciation and amortization

2,973

3,287

Other expenses

(462

)

1,890

Total expenses

86,104

74,955

Loss before income tax expense

(31,402

)

(32,270

)

Income tax (benefit)/expense

63

94

Net loss continuing operations

(31,465

)

(32,364

)

Net loss discontinued operations

872

(3,906

)

Net loss

$

(30,593

)

$

(36,270

)

Three Months Ended June 30,

(Amounts in thousands, except share and per share amounts)

2026

2025

Loss per share attributable to common stockholders, basic and diluted:

Net loss from continuing operations

$

(1.69

)

$

(2.13

)

Net loss from discontinued operations

$

0.05

$

(0.26

)

Net loss

$

(1.64

)

$

(2.39

)

Weighted average common shares outstanding — basic and diluted

18,653,890

15,187,558

Condensed Consolidated Statements of Cash Flows

Six Months Ended June 30,

(Amounts in thousands)

2026

2025

Cash Flows from Operating Activities:

Net loss

$

(100,904

)

$

(86,827

)

Net loss from discontinued operations

(20,089

)

(8,491

)

Net loss from continuing operations

(80,815

)

(78,336

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation of property and equipment

500

697

Impairment charges, net

399

1,356

Amortization of internal use software and other intangible assets

5,470

6,362

Gain on sale of loans, net

(94,918

)

(55,293

)

Non-cash interest and amortization of debt issuance costs and discounts

—

1,700

Change in fair value of warrants and equity related liabilities

5,135

344

Stock-based compensation

38,380

8,285

Provision (Recovery) of loan repurchase reserve

1,510

(2,549

)

Change in fair value of derivatives

68

(813

)

Change in fair value of mortgage loans held for sale

(7,433

)

(7,206

)

Gain on disposal of assets held for sale

(1,000

)

—

Change in operating lease of right-of-use assets

14

(3,527

)

Originations of mortgage loans held for sale

(3,255,127

)

(2,055,658

)

Proceeds from sale of mortgage loans held for sale

3,311,386

2,068,863

Change in operating assets and liabilities:

Other receivables, net

(7,519

)

(1,428

)

Prepaid expenses and other assets

(5,186

)

2,694

Operating lease liabilities

(51

)

2,047

Accounts payable and accrued expenses

(13,093

)

8,060

Escrow payable and other customer accounts

1,353

721

Other liabilities

2,409

(205

)

Net cash used in operating activities-continuing operations

(98,518

)

(103,886

)

Net cash used in operating activities-discontinued operations

(3,192

)

(9,299

)

Net cash used in operating activities

(101,710

)

(113,185

)

Cash Flows from Investing Activities:

Purchase of property and equipment

(470

)

(609

)

Proceeds of sale of assets held for sale

2,375

—

Capitalization of internal use software

(4,443

)

(4,843

)

Net cash used in investing activities-continuing operations

(2,538

)

(5,452

)

Net cash used in investing activities-discontinued operations

11,747

(376,515

)

Net cash provided by (used in) investing activities

9,209

(381,967

)

Cash Flows from Financing Activities:

Principal payments on convertible notes

—

(110,000

)

Net borrowings on warehouse lines of credit

42,472

127,119

Proceeds from issuance of common stock

77,697

—

Proceeds from issuance of stock options

—

1

Proceeds from exercise of warrants

5,732

—

Net investment in discontinued operations

—

(47,930

)

Net cash provided by/(used in) financing activities-continuing operations

125,901

(30,810

)

Net cash (used in)/provided by financing activities-discontinued operations

(16,982

)

396,161

Net cash provided by financing activities

108,919

365,351

Effects of currency translation on cash, cash equivalents, and restricted cash

(269

)

2,511

Net change in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale

24,576

(137,637

)

Less: net change in cash, cash equivalents and restricted cash classified within assets held for sale

(976

)

1,316

Cash, cash equivalents, and restricted cash—Beginning of period

88,283

218,043

Cash, cash equivalents, and restricted cash—End of period

$

111,883

$

81,722

Key Metrics

This press release refers to the following key metrics:

Funded Loan Volume represents the aggregate dollar amount of all loans funded in a given period based on the principal amount of the loan at funding.

Loan Volume consists of Funded Loan Volume and Processed Volume.

Processed Volume includes loans processed on the Tinman platform on behalf of our strategic partners but not funded by Better.

Purchase Loan Volume represents the aggregate dollar amount of purchase loans funded in a given period based on the principal amount of the loan at purchase date.

Refinance Loan Volume represents the aggregate dollar amount of refinance loans funded in a given period based on the principal amount of the loan at refinancing date.

HELOC Loan Volume represents the aggregate dollar amount of HELOC and close-end second lien loans funded in a given period based on the principal amount of the loan at funding.

D2C Loan Volume represents the aggregate dollar amount of loans funded in a given period based on the principal amount of the loan at funding that have been generated from direct interactions with customers using all marketing channels other than our partner relationships and our Tinman® AI Platform channel.

Platform Loan Volume represents the aggregate dollar amount of loans funded in a given period based on the principal amount of the loan at funding that have been generated through one of our Tinman® AI Platform partner relationships.

Total Loans represents the total number of purchase loans, refinance loans, HELOCs, and closed-end second-lien loans completed during a given period, including loans funded by Better and loans processed on the Tinman® AI Platform on behalf of our strategic partners but not funded by Better.

Use of Non-GAAP Measures and Other Financial Metrics

We include certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including Adjusted EBITDA.

We calculate Adjusted EBITDA as net income (loss) adjusted for the impact of stock-based compensation expense, change in the fair value of warrants and equity-related liabilities, and other non-recurring or non-core operational expenses, as well as interest and amortization on non-funding debt (which includes interest on the Convertible Note (as defined in our Form 10-K), depreciation and amortization expense, and income tax (benefit)/expense.

This non-GAAP financial measure should not be considered in isolation and is not intended to be a substitute for any GAAP financial measure. This non-GAAP measure provides supplemental information that we believe helps investors better understand our business, our business model and how we analyze our performance. We also believe this non-GAAP financial measure improves investors’ and analysts’ ability to compare our results with those of our competitors and other similarly situated companies, which commonly disclose similar performance measures.

However, our calculation of Adjusted EBITDA may not be comparable to similarly titled performance measures presented by other companies. Further, although we use this non-GAAP measure to assess the financial performance of our business, this measure excludes certain substantial costs related to our business, and investors are cautioned not to use such measures as a substitute for financial results prepared according to GAAP. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. As a result, non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, our financial results prepared and presented in accordance with GAAP.

Reconciliation of Non-GAAP Metrics

Three Months Ended June 30,

(Amounts in thousands)

2026

2025

Adjusted EBITDA

Net loss

$

(30,593

)

$

(36,270

)

Income tax (benefit)/expense

63

94

Depreciation and amortization expense (1)

2,973

3,287

Stock-based compensation expense (2)

14,585

4,252

Interest and amortization on non-funding debt (3)

14

6

Restructuring, impairment, and other expenses (4)

909

1,206

Change in fair value of warrants and equity related liabilities (5)

(1,067

)

572

Loss from discontinued operations

(872

)

3,906

Adjusted EBITDA

$

(13,988

)

$

(22,947

)

(1)

Depreciation and amortization represents the loss in value of fixed and intangible assets through depreciation and amortization, respectively. These expenses are non-cash expenses, and we believe that they do not correlate to the performance of our business during the periods presented.

(2)

Stock-based compensation represents the non-cash grant date fair value of stock-based instruments utilized to incentivize employees and consultants recognized over the applicable vesting period. This expense is a non-cash expense. We exclude this expense from our internal operating plans and measurement of financial performance (although we consider the dilutive impact to our stockholders when awarding stock-based compensation and value such awards accordingly).

(3)

Interest and amortization on non-funding debt represents interest and amortization on the Convertible Note, which is included within net interest income in our Consolidated Statements of Operations and Comprehensive Loss.

(4)

Restructuring, impairment, and other expenses are primarily comprised of employee one-time termination benefits, real estate restructuring losses, impairment of disposal groups classified as held for sale, and impairment of property and equipment.

(5)

Change in fair value of warrants and equity related liabilities which comprise the Public Warrants and Private Warrants as well as the Sponsor Locked-Up Shares, represents the change in fair value of liability-classified warrants as presented in our Consolidated Statements of Operations and Comprehensive Loss.

For Investor Relations Inquiries please email: [email protected]

Source: Better Home & Finance Holding Company

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