Better Home & Finance (BETR) Q2 2024 earnings summary

Executive summary

• Funded loan volume rose 45% sequentially in Q2 2024 to $962 million, with revenue up 41% to approximately $31 million and total expenses remaining flat quarter-over-quarter.

• Net loss narrowed to $41.4 million in Q2 2024, with adjusted EBITDA loss improving to $23.3 million and adjusted net loss to $33.1 million.

• Focused on expanding purchase and home equity products, leveraging technology, AI, and automation for operational efficiency and customer conversion.

• Announced a 1-for-50 reverse stock split effective August 16, 2024, to regain Nasdaq compliance.

• Maintained strong liquidity with $507 million in cash, restricted cash, short-term investments, and self-funded loans at quarter end.

Financial highlights

• Q2 2024 funded loan volume reached $962 million across 2,995 loans, exceeding prior guidance.

• Revenue was approximately $31 million, with $9 million in nonrecurring gain on sale revenue and $1 million in one-time contra expense benefits.

• GAAP net loss was $42 million, a $9 million improvement from Q1 2024; adjusted EBITDA loss improved to $23.3 million.

• Total expenses were $73 million, flat compared to Q1 and down 2% year-over-year.

• Gain on sale margin was 2.43% in Q2 2024.

Outlook and guidance

• Q3 2024 funded loan volume is expected to exceed $1 billion, with continued growth in 2024 versus 2023.

• Total expenses projected to remain approximately flat year-over-year despite growth investments.

• Ongoing focus on technology efficiency, cost management, and improved customer conversion.

• Restructuring and cost reduction initiatives to continue through at least the end of 2024.

• Efforts to regain and maintain Nasdaq compliance, including the reverse stock split, are expected to mitigate going concern risks.