Better Home & Finance (BETR) Q3 2025 earnings summary

Executive summary

• Transitioned from direct-to-consumer to a platform and software provider for the home finance ecosystem, leveraging AI (Betsy™ and TinmanⓇ) to serve both consumers and institutional partners, driving operational efficiency, scalability, and customer satisfaction.

• Executed multiple new partnerships with major financial platforms and non-bank originators, expanding distribution and market reach, with additional partnerships anticipated.

• Launched AI-driven HELOC underwriting for small business and self-employed borrowers, expanding the addressable market.

• CFO Kevin Ryan announced retirement effective November 2025; search for successor underway.

• Won 2025 Fintech Breakthrough Award for Digital Mortgage Innovation and other industry recognitions.

Financial highlights

• Q3 2025 funded loan volume reached $1.21 billion, up 41% year-over-year; revenue grew 52% to $44 million; net revenue increased 51% year-over-year.

• Home equity volume up 52% year-over-year, refinance up 41%, and purchase volume up 5%.

• Adjusted EBITDA loss narrowed to $24.9 million from $38.9 million a year ago; Adjusted Net Loss for Q3 2025 was $28.5 million, improved from $48.9 million.

• Ended Q3 with $226 million in cash, restricted cash, short-term investments, and assets held for sale.

• Total expenses for Q3 2025 were $80.3 million, with compensation and benefits at $41.3 million.

Outlook and guidance

• Full-year 2025 funded loan volume projected to increase year-over-year, despite a $1 billion headwind from the loss of Ally business.

• TinMan AI Platform originations expected to exceed $600 million in Q4 2025; targeting $1 billion monthly run rate within six months.

• Targeting break-even Adjusted EBITDA by end of Q3 2026, with profitability driven by volume growth, improved unit economics, and scaling of partnership channels.

• Anticipate further improvements in Adjusted EBITDA losses for 2025 versus 2024, driven by AI efficiencies and cost reductions.

• Liquidity expected to be sufficient for at least the next 12 months, supported by warehouse lines, customer deposits, and ATM equity program.