Better Home & Finance Holding Company
Other securities:
BETRWwarrant
Loading chart...
Item 1. Business
The Business Combination
On August 22, 2023, we consummated the transactions contemplated by the Agreement and Plan of Merger (as amended, the “Merger Agreement”), by and among Aurora Acquisition Corp. (“Aurora”), Better Holdco, Inc. (“Pre-Business Combination Better”), and Aurora Merger Sub I, Inc., formerly a wholly owned subsidiary of Aurora (“Business Combination”). In connection with the closing of the transactions contemplated by the Merger Agreement, the Company’s Class A common stock and Warrants began trading on the Nasdaq Global Market and Nasdaq Capital Market, respectively, under the ticker symbols “BETR” and BETRW.” On March 13, 2024, the listing of the Company’s Class A common stock and warrants transferred from the Nasdaq Global Market to the Nasdaq Capital Market.
Unless otherwise indicated, references to “Better,” “Better Home & Finance,” the “Company,” “we,” “us,” “our” and other similar terms refer to (i) Pre-Business Combination Better and its consolidated subsidiaries prior to the closing of the Business Combination and (ii) Better Home & Finance and its consolidated subsidiaries following the closing of the Business Combination.
Overview
We are a technology-enabled homeownership company that offers mortgage, home equity, and other homeownership products through a digital platform. Our services are designed to support customers across key stages of the homeownership cycle including purchase, ownership, refinance, and sale. Founded in 2015, we built our business with a technology-first approach. Our proprietary platform supports both consumer-facing offerings and offerings provided to third-party strategic partners and is designed to scale across products, channels, and market conditions.
The home is among the world’s largest, oldest, and most tangible asset classes and yet, while other industries are undergoing end-to-end digital transformations, the homeownership journey remains mired in legacy inefficiencies. High transaction costs, regulatory complexity, and sprawling intermediary stack come at the expense of the consumer, leading to frustration and impeding digital adoption. The homeownership experience is unnecessarily slow, convoluted, and analog; in sum, we believe it is broken.
Our advanced technology stack, which we call Tinman®, enables us to deliver on what we believe is most important for our customers: a seamless experience, time saved, and higher certainty on the single biggest financial decision of their lives.
For the year ended December 31, 2025, our Funded Loan Volume was $4.7 billion, compared to $3.6 billion for the year ended December 31, 2024, representing a year-over-year increase of approximately 32%. Our revenue was $164.9 million for the year ended December 31, 2025, compared to $108.5 million for the year ended December 31, 2024, representing a year-over-year increase of approximately 52%. We recorded a net loss of $165.9 million for the year ended December 31, 2025, compared to a net loss of $206.3 million for the year ended December 31, 2024, representing a 20% year-over-year decrease.
Our Products and Services
We offer a range of products and services designed to support the homeownership lifecycle. These include consumer-facing mortgage and related homeownership products, as well as technology-enabled offerings provided to third-party strategic partners. Our offerings are supported by our proprietary technology platform, Tinman, which enables digital delivery, automation, and integration across these activities.
Home Finance
Home Finance offers a range of residential mortgage loan products for home purchase and refinance, including cash-out refinance and debt consolidation, and home equity, across various maturities and interest rate structures. Our offerings include GSE-conforming loans, Federal Housing Administration (“FHA”) insured loans, Department of Veterans Affairs (“VA”) guaranteed loans, and jumbo loans.
We sell the mortgage loans we originate into a network of loan purchasers, including GSEs, banks, insurance companies, asset managers, and mortgage real estate investment trusts, and we earn revenue upon the sale of each loan. The majority of the loans we originate conform to the underwriting standards of Fannie Mae and the Federal Home Loan Mortgage Corporation (“Freddie Mac”).
4
As of December 31, 2025, we were licensed to originate mortgage loans in all 50 states and the District of Columbia across a range of credit and income profiles. In addition to first-lien mortgage products, we offer home equity lines of credit and closed-end second-lien loans to enable customers to access equity in their homes.
Tinman AI Platform
The Tinman AI Platform (“Tinman”) includes access to our proprietary technology in connection with mortgage origination activities, including technology-enabled underwriting, loan processing, compliance support, capital markets connectivity, and related back-office functionality. In certain arrangements, partners integrate Tinman into their existing internal digital operations to support mortgage origination activities and pay fees to the Company based on funded loans processed through the platform.
In other arrangements, Tinman is integrated into a strategic partner’s customer-facing application or workflow, and we originate mortgage loans directly using our Home Finance products for the partner’s customers. The scope, pricing structure and responsibilities under these arrangements vary by partner.
Better Plus
We complement our residential mortgage loan products through Better Plus, which includes a set of non-mortgage homeownership products and services offered primarily through third-party strategic partners. These offerings include referrals to real estate agents, title insurance and settlement services provided through third-party providers, and access to homeowners insurance policies through a digital marketplace of insurance partners. In these arrangements, we generally act as an agent or referral source and receive fees from third-party providers. Better Plus products are integrated into our platform to support customers throughout the homeownership process.
International Lending & Services
Through our U.K. subsidiary, Birmingham Bank, and related U.K. homeownership businesses, we offer residential mortgage and related financial products to customers in the United Kingdom. Our U.K. operations utilize a technology-first approach to address a market we believe is similarly encumbered by legacy inefficiencies. We are in the process of exiting our non-core international operations.
Our Technology
Our products and services are supported by Tinman and our voice-based AI assistant, Betsy. Tinman is a digital loan origination and workflow platform that uses AI and automation to integrate customer-facing applications, internal operational tools, and third-party systems to support mortgage origination and related homeownership services. Betsy assists customers with mortgage application inquiries and the collection of required application information and is designed to interact directly with customers as part of the loan origination process and to support more efficient completion of application workflows.
Tinman serves as the system of record for our Home Finance, Platform Services, and Better Plus offerings. The platform aggregates customer and property data from direct user input and third-party sources through application programming interfaces (“APIs”), applies automated decisioning and rules-based logic, and orchestrates workflows across underwriting, processing, and closing activities. Tinman also supports pricing, document generation, task assignment, and connectivity with loan purchasers.
Tinman’s automated decisioning and workflow engine supports internal operations by collecting and processing data, coordinating tasks between customers and team members, and guiding mortgage transactions from application through closing, including through the use of third-party software where applicable. The platform also supports the matching of originated loans with loan purchasers based on applicable criteria. Through this approach, Tinman standardizes and automates portions of the loan production process, while maintaining appropriate human review.
Customers interact with Tinman primarily through digital interfaces to submit information, complete required tasks, review loan options, and access related homeownership products. In parallel, Tinman coordinates operational workflows by completing certain tasks through automation and routing other tasks to team members for review or completion. While we expect to continue to invest in automation and AI-enabled capabilities, portions of our loan production process require human involvement.
5
Distribution Channels
We reach our customers through two primary channels: (1) direct-to-consumer (D2C); and our (2) platform channel.
Under our D2C distribution channel, customers engage directly with Better through our website and complete the mortgage process under the Better Home & Finance brand. Customer relationships in this channel are initiated through performance-based digital marketing and other online media, with prospective borrowers directed to our platform to explore mortgage options and begin the application process.
Under our platform distribution channel, we engage with borrowers through third-party partners as well as through our in-market originations business. In both cases, Tinman is used as the underlying technology platform to support mortgage origination activities. Our previous Retail channel has been consolidated under the Platform channel.
In partner arrangements, third parties use Tinman to support their existing mortgage operations or to establish new mortgage origination capabilities. Depending on the structure of the arrangement, we may provide out Tinman technology, underwriting, processing, and related operational services, or we may originate mortgage loans directly using our Home Finance products for our strategic partners’ customers.
Tinman also supports our in-market originations business (previously referred to as our retail business), where mortgage demand is sourced primarily through referral- and relationship-based channels rather than direct-to-consumer marketing. Across both partner and in-market originations, our platform provides automated workflow, underwriting, and loan manufacturing capabilities that support mortgage origination at scale.
Our Competitive Strengths
We believe we have a number of competitive advantages that contribute to our success. We aim to provide our customers with superior experience and a wide selection of products to navigate their homeownership journey. We believe that lowering loan manufacturing costs and scaling our ecosystem will enable us to deliver increased value to our customers and contribute to our mission.
•Superior Customer Experience. Our customers use our integrated platform to seamlessly navigate the homeownership journey. Tinman enables our customers to interact with us on their schedule, allowing us to meet our customers where they are, be it digitally on our platform, or by phone, text, or email, 24/7. Our goal is to surface the most updated interest rates to our customers , and our tools provide them with flexibility to evaluate Home Finance and Better Plus products in real time as they move through our customer workflow.
•Highly Scalable Platform in Breadth and Depth. Tinman provides the backbone of our homeownership products, using the same technology regardless of customer, channel or loan type. We have built Tinman to support significant, rapid growth in volumes. In addition to our platform being able to scale mortgage volume quickly, we believe our technology enables us to achieve broad scale across multiple homeownership products as well. Our platform is modular in nature and new products and partners can be added seamlessly using the same core code and systems architecture.
•Labor Cost. We are working to re-engineer traditionally complex, manual and highly specialized loan workflows into simple tasks that can be partially completed through automation or with unspecialized lower-cost labor. Our digital platform orchestrates each transaction and simplifies the mortgage workflow to reduce complex tasks. Tinman aims to make our loan manufacturing team members more productive than the competition at a lower cost. We believe we can complete many of our transactions at a lower production labor cost per unit, seeking to pass savings on to our customers.
•Data Advantage. We operate in a fully-digital environment allowing us to track and analyze all workflows to optimize customer experience and operational efficiency. We frequently use data to improve our customer experience and maximize conversion. On the customer side, we capture up to 10,000 data points per customer during the loan transaction process. This enables us to save customers time and money by removing friction from manual re-entry of personal details and details on their home captured through the loan origination and appraisal process, reducing fatigue from dealing with numerous providers, offering them a combination of tailored products through our expanding homeownership platform.
•Limited Credit Exposure. Our business model is to manufacture loans to sell to our marketplace of secondary investors and partners, and we do not seek to retain assets for long periods of time. With every loan we produce, we aim to sell the loan and associated MSRs into our network of purchasers and not permanently retain loans or
6
MSRs on our balance sheet as part of our business model. As of December 31, 2025, we had no material MSRs on our balance sheet. Substantially all of the loans we produced, excluding home equity lines of credit, were conforming with GSE-guaranteed takeout, providing access to liquidity for our loans across market cycles. For jumbo loans, which are not GSE eligible, we enter into sale agreements with purchasers prior to lock, thereby limiting balance sheet exposure and credit risk for non-conforming loans.
Our Growth Strategies
We were launched with the mission of making homeownership better, faster and cheaper for all. We believe we can grow by enhancing our customer experience, expanding our customer base and providing additional products and services.
•Diversified Distribution Strategy. We seek to expand our mortgage origination capabilities by diversifying our distribution channels beyond direct-to-consumer digital marketing. While we continue to serve customers who prefer a fully digital, self-directed experience, we are also focused on reaching customers through partner relationships and locally oriented origination channels that emphasize referral- and relationship-based engagement.
We believe that different customer segments prefer different modes of interaction, particularly in purchase transactions, and that a multi-channel distribution approach enables us to meet customers where they are most comfortable transacting. We leverage Tinman to support these additional distribution channels by providing a centralized technology and fulfillment platform that enables consistent underwriting, processing, and operational execution across distribution models.
This approach is intended to broaden our reach, support purchase market growth, and enable scalable origination across a wider range of customer acquisition pathways.
•Conversion. We seek to drive growth by improving the conversion of prospective customers into funded loans through continued enhancements to operational efficiency, customer experience, and product offerings. We are focused on supporting customers earlier in the homeownership journey through improved customer engagement and technology-enabled workflows. In addition, by further automating elements of the loan manufacturing process, we aim to reduce friction and processing time, which may support improved customer outcomes and conversion rates.
•Enhance Technology Innovation.
Loading financial statements...
Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
| Line item |
|---|
| Period ending |
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of Better Home & Finance Holding Company’s (together with its consolidated subsidiaries, the “Company,” “we” “our” or “us”) financial condition and results of operations should be read together with our audited consolidated financial statements as of December 31, 2025 and for the years ended December 31, 2025 and 2024, in each case, together with related notes thereto, included in our Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”), and our condensed consolidated financial statements and related notes as of and for the quarterly period ended March 31, 2026, included elsewhere in this Quarterly Report on Form 10-Q (the “Quarterly Report”).
Company Overview
We are an AI-native home finance company on a mission to make homeownership cheaper, faster, and more accessible for all Americans. Our services offer consumers a seamless experience that eliminates friction and complexity across every stage of homeownership including purchase, refinance, home equity, and sale.
Founded in 2015, we built our business with an AI-first mindset that remains at the core of everything we do. Our proprietary platform, Tinman®, is trained on $110B in origination volume and grew its share of volume by 38% from 2024 to 2025. The platform automates the most time-consuming parts of the mortgage process and enables faster decisions to create a better experience for consumers navigating the biggest financial decision of their life.
The home is among the world’s largest and most tangible asset classes. While other industries have undergone end-to-end digital transformations, the homeownership journey remains mired in legacy inefficiencies. High transaction costs, regulatory complexity, and a sprawling intermediary stack come at the expense of consumers and limit digital adoption across the industry. We believe the homeownership experience is broken, and we're fixing it.
Designed to scale across products, channels, and market conditions, Tinman is not just the engine behind Better; it is how we are modernizing the broader mortgage industry. Through Tinman, we partner with lenders, banks, and financial institutions to bring AI-driven efficiency and savings to their own customers, helping transform an industry long overdue for change.
Business Environment
The mortgage industry continues to be influenced by a dynamic macroeconomic and geopolitical environment. In the first quarter of 2026, the U.S. Federal Reserve maintained the federal funds rate within a target range of approximately 3.50% to 3.75%. This sustained restrictive monetary policy stance, implemented to address inflation above the Federal Reserve’s long-term 2% target, has contributed to mortgage rates remaining elevated relative to recent historical levels, limiting refinance activity and moderating overall borrower demand, particularly in rate-sensitive segments.
In addition, geopolitical uncertainty, including the ongoing conflict in the Middle East, has contributed to volatility in financial markets, impacting U.S. Treasury yields, inflation expectations, and mortgage rate movements. These factors, combined with affordability constraints driven by rising home prices and borrowing costs, have created a more challenging operating environment for mortgage originators. At the same time, lenders with diversified product offerings across purchase and non-mortgage products, such as home equity, are better positioned to capture baseline purchase activity and benefit from the counter-cyclical demand for home equity products that typically increases in higher-rate environments.
Recent Developments
As previously announced, the Company determined to dispose of Birmingham Bank, which represents the Company’s reportable banking segment. The sale process is underway and is expected to conclude during 2026; and, therefore, the assets related to this business have been classified as held for sale. The timing and ultimate outcome of the sale of Birmingham Bank remains subject to market conditions and required regulatory approvals. The results of operations, financial condition, and cash flows for Birmingham Bank are presented herein as discontinued operations. Except where noted, any tables, percentages or metrics included within this filing exclude the results of Birmingham Bank.
33
Our Business Model
We generate revenue through the production and sale of loans and other product offerings through our platform. The revenue and mix of revenue as a percentage of total revenue attributable to our sale of loan production (Gain on loans, net) and Better Plus (Other revenue) and net interest income for the three months ended March 31, 2026 and 2025 is as follows:
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||
(Amounts in thousands, except percentage amounts) | Amounts | Percentages | Amounts | Percentages | |||||||||||||||||||
| Gain on loans, net | $ | 44,801 | 95 | % | $ | 24,576 | 78 | % | |||||||||||||||
| Other revenue | 1,142 | 2 | % | 3,650 | 12 | % | |||||||||||||||||
| Net interest income | 1,554 | 3 | % | 3,102 | 10 | % | |||||||||||||||||
Total net revenues | $ | 47,497 | $ | 31,328 | |||||||||||||||||||
Home Finance—Gain on loans, net
We produce a wide selection of mortgage loans and leverage our platform to quickly sell these loans and related mortgage servicing rights (“MSRs”) to our loan purchaser network. Historically, the Company utilized three primary channels for customer acquisition; however, our current operations have been streamlined to focus on two key sourcing channels: our D2C channel and our Platform channel. Through these channels, we generate gain on loans, net by selling loans and MSRs to our loan purchaser network, recognizing revenue per loan. Through our Platform channel, we generate revenue from various partnerships with mortgage originators and technology companies, as well as our in-market loan officer teams, which ramped over the course of 2025. These partnerships come in different structures. For some, we access our partners’ customer base and originate loans on our platform and in other arrangements, the partner originates the loan and we provide the technology, underwriting, and fulfillment.
Better Plus—Other revenue
We complement our residential mortgage loan products through Better Plus, which includes a set of non-mortgage homeownership products and services offered primarily through third-party strategic partners. These offerings include referrals to real estate agents, title insurance and settlement services provided through third-party providers, and access to homeowners insurance policies through a digital marketplace of insurance partners. In these arrangements, we generally act as an agent or referral source and receive fees from third-party providers. Better Plus products are integrated into our platform to support customers throughout the homeownership process.
Mortgage Interest Income —Net interest income
As we originate mortgages, there is a short period between the funding of a loan and its sale into our investor network. During this time, we borrow against our warehouse lines of credit as a source of capital and pay interest on those borrowings. It is not uncommon for a mortgage to be awaiting sale while the borrower's first interest payment is collected. In these instances, Better collects and recognizes that interest as revenue. Once the mortgage is sold to our investor network, the warehouse line of credit is repaid and we do not collect any future interest payments on that loan.
International Lending Revenue—Other revenue
International lending revenue consists of revenue from our international lending activities, primarily in the U.K., which has expanded via acquisitions in prior years. International lending activities primarily include broker fees earned via our digital mortgage broker in the U.K. During 2024, management enacted a plan to sell several entities in the U.K. One of those sales was completed in Q3 2025, with the remaining expected to be completed in 2026. As such, the revenue from our non-core international operations is winding down.
Key Business Metrics
In addition to the measures presented in our condensed consolidated financial statements, we use the following key business metrics to help us evaluate our business, identify trends affecting our business, formulate plans and make strategic decisions. Our key business metrics enable us to monitor our ability to manage our business compared to the broader mortgage origination market, as well as monitor relative performance across key purchase and refinance verticals.
34
Key measures that we use in assessing our business include the following ($ in millions, except percentage data or as otherwise noted):
| Three Months Ended March 31, | |||||||||||||
Key Business Metric | 2026 | 2025 | |||||||||||
Home Finance | |||||||||||||
Refinance Loan Volume | $ | 854 | $ | 133 | |||||||||
Purchase Loan Volume | 588 | 578 | |||||||||||
| HELOC Volume | 203 | 157 | |||||||||||
Funded Loan Volume | $ | 1,645 | $ | 868 | |||||||||
D2C Loan Volume | $ | 824 | $ | 614 | |||||||||
B2B Loan Volume | — | 91 | |||||||||||
| Platform Loan Volume | 821 | 163 | |||||||||||
Funded Loan Volume | $ | 1,645 | $ | 868 | |||||||||
Total Loans (number of loans, not millions) | 5,018 | 2,975 | |||||||||||
Average Loan Amount ($ value, not millions) | $ | 327,723 | $ | 291,909 | |||||||||
Gain on Sale Margin | 2.72 | % | 2.83 | % | |||||||||
Total Market Share | 0.3 | % | 0.2 | % | |||||||||
Better Plus | |||||||||||||
Better Real Estate Transaction Volume | $ | 33 | $ | 70 | |||||||||
Insurance Coverage Written | $ | 1,305 | $ | 996 | |||||||||
Home Finance
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.
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.
HELOC Loan Volume represents the aggregate dollar amount of HELOC and closed-end lien loans funded in a given period based on the principal amount of the loan at funding.
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.
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.
B2B 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 our B2B partner relationship with Ally. This channel was discontinued upon the wind-down of the relationship with Ally Financial Inc. (“Ally”); the Company has not reported B2B Loan Volume since Q4 2025.
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 distributed retail channels.
Total Loans represents the total number of loans funded in a given period, including purchase loans, refinance loans and HELOC loans and closed-end second lien loans.
35
Average Loan Amount represents Funded Loan Volume divided by Total Loans in a period.
Gain on Sale Margin represents gain on loans, net, as presented on our condensed consolidated statements of operations and comprehensive loss, divided by Funded Loan Volume.
Total Market Share represents Funded Loan Volume in a period divided by total value of loans funded in the industry for the same period, as presented by FNMA.
Better Plus
Better Real Estate Transaction Volume represents the aggregate dollar amount of real estate volume transacted in a given period across both in-house agents and third-party network agents.
Insurance Coverage Written represents the aggregate dollar amount of insurance liability coverage provided to customers on behalf of insurance carrier partners across all insurance products on the Company’s marketplace, specifically title and homeowners insurance offered through Better Settlement Services and Better Cover. This includes the value of the loan for lender’s title insurance and dwelling coverage for homeowners insurance. Insurance Coverage Written amounts for Better Cover have been updated for all periods presented to include both new policies and policy renewals, which in prior periods included only new policies.
Description of Certain Components of Our Financial Data
Components of Revenue
Our sources of revenue include gain on loans, net, other revenue, and net interest income.
Home Finance (Gain on Loans, Net)
Gain on loans, net, includes revenue generated from our mortgage production process. The components of Gain on loans, net, are as follows:
i.Gain on sale of loans, net–This represents the premium we receive in excess of the loan principal amount and certain fees charged by loan purchasers upon sale of loans into the secondary market. Gain on sale of loans, net includes unrealized changes in the fair value of LHFS, which are recognized on a loan-by-loan basis as part of current period earnings until the loan is sold on the secondary market. The fair value of LHFS is measured based on observable market data. This also includes activity for loans originated on behalf of the integrated partnership that are subsequently purchased by us as well the portion of the sale proceeds to be received by the integrated partner. The portion of the sale proceeds that is to be allocated to the integrated partner is accrued as a reduction of gain on sale of loans, net when the loan is initially purchased by us from the integrated relationship partner.
Gain on sale of loans, net also includes the changes in fair value of IRLCs and forward sale commitments. IRLCs include the fair value upon purchase/issuance with subsequent changes in the fair value recorded in each reporting period until the loan is sold on the secondary market. Fair value of forward commitments hedging IRLCs and LHFS are measured based on quoted prices for similar assets.
ii.Broker revenue–Includes fees that the Company receives for originating loans on behalf of third-parties.
iii.Provision for Loan Repurchase Reserve–In connection with our sale of loans on the secondary market, we make customary representations and warranties to the relevant loan purchasers about various characteristics of each loan, such as the origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local laws. In the event of a breach of its representations and warranties, we may be required to repurchase the loan with the identified defects. The provision for loan repurchase reserve, represents the charge for these potential losses.
Better Plus, International Lending Revenue, and Other (Other Revenue)
We generate other revenue through our Better Plus offerings, which includes real estate services, insurance, settlement services, and international lending revenue.
36
For real estate services, we generate revenues from fees related to real estate agent services, mainly cooperative brokerage fees from our network of third-party real estate agents, to assist our customers in the purchase or sale of a home. For settlement services, we generate revenues from fees on services, such as policy preparation, title search, wire, and other services, required to close a loan, which were provided by third parties through our platform. We recognize revenues from fees on settlement services upon the completion of the performance obligation, which was when the loan transaction closes.
For insurance services, we generate revenues from agent fees on homeowners insurance policies obtained by our customers through our marketplace of third-party insurance carriers. For title insurance, we generate revenues from agent fees on title policies written by third parties and sold to our customers in loan transactions. We recognize revenues from agent fees on title policies upon the completion of the performance obligation, which is when the loan transaction closes. As an agent, we do not control the ability to direct the fulfillment of the service, are not primarily responsible for fulfilling the performance of the service, and do not assume the risk in a claim against the policy.
Our performance obligations for settlement services and title insurance are typically completed 40 to 60 days after the commencement of the loan origination process and are recognized in revenue upon the closing of the loan transaction.
For international lending revenue, we generate revenue primarily from broker fees earned via our digital mortgage broker in the U.K. During 2024, management enacted a plan to sell several entities in the U.K. One of those sales was completed in Q3 2025, with an additional sale completed in Q1 2026, and any remaining dispositions are expected to be completed during 2026. As such, the revenue from our non-core international operations is winding down. We do not expect to generate material revenue from these non-core international operations in future periods.
Net Interest Income
Net interest income from continuing operations includes interest income from LHFS, including HELOCs, calculated based on the note rate of the respective loan. Interest expense from continuing operations primarily includes interest expense on warehouse lines of credit and corporate debt.
Components of Our Expenses
Our expenses consist of compensation and benefits, general and administrative, technology expenses, marketing and advertising expenses, loan origination expenses, depreciation and amortization, and other expenses.
Compensation and Benefits Expenses
Compensation and benefits expenses includes salaries, wages, and incentive pay as well as stock-based compensation, employee health benefits, 401(k) plan benefits, and social security and unemployment taxes. Stock-based compensation includes expenses associated with restricted stock unit grants, performance stock unit grants, and stock option grants under our stock plans. We recognize compensation expense for the stock-based payments based on the fair value of the awards on the grant date. The expense is recorded on a straight-line basis over the requisite service period. Compensation and benefits excludes amounts capitalized for internally-developed software.
General and Administrative Expenses
General and administrative expenses include rent and occupancy expenses, travel and entertainment expenses, insurance expenses, and external legal, tax and accounting services. General and administrative expenses are expensed as incurred.
Technology Expenses
Technology expenses consist of expenses related to vendors engaged in product management, design, development and testing of our websites and products. Technology and product development expenses are generally expensed as incurred.
Marketing and Advertising Expenses
Marketing and advertising expenses consist of customer acquisition expenses, brand costs, and paid marketing. For customer acquisition expenses, we primarily generate loan origination leads through third-party financial service websites for which we incur “pay-per-click” expenses. A majority of our marketing expenses are incurred from leads that we purchase from these third-party financial service websites. Marketing expenses are generally expensed as incurred.
37
Loan Origination Expenses
Loan origination expenses consist primarily of origination expenses, appraisal fees, processing expenses, underwriting, closing fees, and servicing costs. These expenses are expensed as incurred.
Other Expenses
Other expenses relate to other non-mortgage homeownership activities, including settlement service expenses, lead generation expenses, expenses incurred in relation to our international lending activities, restructuring and impairment expenses, gains and losses from equity related liabilities, and gains and losses related to disposals of held-for-sale assets. Settlement service expenses consist of fees for transactional services performed by third-party providers for borrowers while lead generation expenses consist of fees for services related to real estate agents. Other expenses are expensed as incurred.
38
Results of Operations-Continuing Operations
The following table sets forth selected financial data of the Company’s continuing operations for each of the periods indicated:
| Three Months Ended March 31, | |||||||||||
(Amounts in thousands, except per share amounts) | 2026 | 2025 | |||||||||
Revenues: | |||||||||||
| Gain on loans, net | $ | 44,801 | $ | 24,576 | |||||||
| Other revenue | 1,142 | 3,650 | |||||||||
| Net interest income | |||||||||||
| Interest income | 7,284 | 7,595 | |||||||||
| Interest expense | (5,730) | (4,493) | |||||||||
| Net interest income | 1,554 | 3,102 | |||||||||
Total net revenues | 47,497 | 31,328 | |||||||||
Expenses: | |||||||||||
| Compensation and benefits | 55,736 | 43,892 | |||||||||
| General and administrative | 8,948 | 10,777 | |||||||||
| Technology | 8,361 | 6,649 | |||||||||
| Marketing and advertising | 9,217 | 8,679 | |||||||||
| Loan origination expense | 7,733 | 2,503 | |||||||||
| Depreciation and amortization | 2,997 | 3,773 | |||||||||
| Other expenses | 5,421 | 882 | |||||||||
Total expenses | 98,413 | 77,155 | |||||||||
Loss before income tax expense | (50,916) | (45,827) | |||||||||
Income tax (benefit)/expense | (1,566) | 145 | |||||||||
Net loss | $ | (49,350) | $ | (45,972) | |||||||
Earnings (loss) per share attributable to common stockholders (Basic) | $ | (3.01) | $ | (3.03) | |||||||
Earnings (loss) per share attributable to common stockholders (Diluted) | $ | (3.01) | $ | (3.03) | |||||||
39
Three Months Ended March 31, 2026 as Compared to Three Months Ended March 31, 2025
Revenues
The components of our revenues for the period were:
| Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2026 | 2025 | |||||||||
Revenues: | |||||||||||
| Gain on loans, net | $ | 44,801 | $ | 24,576 | |||||||
| Other revenue | 1,142 | 3,650 | |||||||||
| Net interest income | |||||||||||
| Interest income | 7,284 | 7,595 | |||||||||
| Interest expense | (5,730) | (4,493) | |||||||||
| Net interest income | 1,554 | 3,102 | |||||||||
Total net revenues | $ | 47,497 | $ | 31,328 | |||||||
Gain on loans, net
The components of our gain on loans, net for the period were:
| Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2026 | 2025 | |||||||||
| Gain on sale of loans, net | $ | 44,064 | $ | 21,278 | |||||||
| Broker revenue | 1,375 | 1,171 | |||||||||
| Loan repurchase reserve (provision) recovery | (638) | 2,127 | |||||||||
| Total gain on loans, net | $ | 44,801 | $ | 24,576 | |||||||
Gain on sale of loans, net increased $22.8 million or 107% to $44.1 million for the three months ended March 31, 2026 compared to $21.3 million for the three months ended March 31, 2025. The increase in gain on sale of loans, net was largely driven by the increase of Funded Loan Volume, which was driven by increases in refinance and home equity products.
Broker revenue increased $0.2 million, or 17% to $1.4 million for the three months ended March 31, 2026, compared to $1.2 million for the three months ended March 31, 2025. The increase in broker revenue was primarily driven by broker revenue earned for originating loans for third-parties through in-market originations operations.
Loan repurchase reserve recovery decreased $2.8 million or 130%, to a provision of $0.6 million for the three months ended March 31, 2026, compared to a recovery of $2.1 million for the three months ended March 31, 2025. The prior-year recovery was driven by declining estimated loss exposure associated with historical origination vintages, while the current-year provision reflects updated estimates of expected losses and loan-specific activity during the period.
40
Other Revenue
The components of other revenue for the period were:
| Three Months Ended March 31, | |||||||||||
| (Amounts in thousands) | 2026 | 2025 | |||||||||
| International lending revenue | $ | 47 | $ | 1,538 | |||||||
| Insurance services | 578 | 673 | |||||||||
| Real estate services | 170 | 947 | |||||||||
| Other revenue | 347 | 492 | |||||||||
| Total other revenue | $ | 1,142 | $ | 3,650 | |||||||
International lending revenue decreased $1.5 million, or 96.9% to an immaterial amount for the three months ended March 31, 2026 compared to $1.5 million for the three months ended March 31, 2025. The decrease in international lending revenue was primarily driven by the sale of the Trussle disposal group in the third quarter of 2025.
Insurance services decreased $0.1 million, or 14.1% to $0.6 million for the three months ended March 31, 2026 compared to $0.7 million for the three months ended March 31, 2025. The decrease in insurance services revenue was primarily driven by the sale of the Trussle disposal group in the third quarter of 2025 offset slightly by an increase in insurance related revenue from our Better Cover business.
Real estate services decreased $0.7 million, or 77% to $0.2 million for the three months ended March 31, 2026 compared to $0.9 million the three months ended March 31, 2025 due to a decrease in real estate transaction volume driven by the conclusion of the integrated relationship partnership with Ally and its use as a source of referrals for real estate services.
Other revenue decreased by $0.2 million, or 31.5% to $0.3 million for the three months ended March 31, 2026 compared to $0.5 million for the three months ended March 31, 2025. The decrease in other revenue was primarily driven by lower ancillary revenue activities.
Net Interest Income
The components of our net interest income for the period were:
| Three Months Ended March 31, | |||||||||||
| (Amounts in thousands) | 2026 | 2025 | |||||||||
| Mortgage interest income | $ | 6,941 | $ | 6,437 | |||||||
| Interest income from investments | 343 | 1,158 | |||||||||
| Warehouse interest expense | (5,730) | (2,788) | |||||||||
| Other interest expense | — | (1,705) | |||||||||
| Total net interest income | $ | 1,554 | $ | 3,102 | |||||||
Mortgage interest income increased $0.5 million, or 8% to $6.9 million for the three months ended March 31, 2026 compared from $6.4 million of the three months ended March 31, 2025. The increase in mortgage interest income was primarily driven by the increase in origination volume and the mortgage interest income earned on the unpaid principal balance for loans held and serviced during the interim between the origination of the loan and its sale on the secondary market.
Interest income from investments decreased $0.8 million, or 70% to $0.3 million for the three months ended March 31, 2026 compared to $1.2 million for the three months ended March 31, 2025. The decrease in interest income from investments was primarily driven by decreased holdings of investments with maturities less than 90 days.
Warehouse interest expense increased $2.9 million, or 106% to $5.7 million for the three months ended March 31, 2026 compared to $2.8 million for the three months ended March 31, 2025. The increase in warehouse interest
41
expense was primarily driven by increased borrowings on funding facilities used in the mortgage production process to meet the increased origination volume.
Other interest expense decreased $1.7 million, or 100% to none for the three months ended March 31, 2026 compared to $1.7 million for the three months ended March 31, 2025. Other interest expense is related to interest expense on our Convertible Notes which were extinguished as part of the Exchange per Note 10 in April 2025. As part of the TDR accounting, the interest on the Senior Notes has been recognized up front as part of the new carrying value.
Expenses
The components of our expenses for the period were:
| Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2026 | 2025 | |||||||||
| Compensation and benefits | $ | 55,736 | $ | 43,892 | |||||||
| General and administrative | 8,948 | 10,777 | |||||||||
| Technology | 8,361 | 6,649 | |||||||||
| Marketing and advertising | 9,217 | 8,679 | |||||||||
| Loan origination expense | 7,733 | 2,503 | |||||||||
| Depreciation and amortization | 2,997 | 3,773 | |||||||||
| Other expenses | 5,421 | 882 | |||||||||
Total operating expenses | $ | 98,413 | $ | 77,155 | |||||||
Compensation and benefits expenses were $55.7 million for the three months ended March 31, 2026, an increase of $11.8 million or 27% compared with $43.9 million for the three months ended March 31, 2025. The increase in compensation and benefits was primarily driven by higher expense recognized for performance-based equity awards, reflecting changes in the probability of achieving specified performance metrics.
General and administrative expenses were $8.9 million for the three months ended March 31, 2026, a decrease of $1.8 million or 17% as compared with $10.8 million in the three months ended March 31, 2025. The decrease in general and administrative expenses was driven primarily by reductions in insurance premiums and professional services.
Technology expenses were $8.4 million for the three months ended March 31, 2026, an increase of $1.7 million or 26% as compared with $6.6 million in the three months ended March 31, 2025. The increase in technology expenses was driven primarily by the increase in costs related to software vendors.
Marketing and advertising expenses were $9.2 million for the three months ended March 31, 2026, an increase of $0.5 million or 6% as compared with $8.7 million in the three months ended March 31, 2025. The increase was primarily driven by higher advertising spend to generate home equity line of credit and refinancing leads.
Loan origination expenses were $7.7 million for the three months ended March 31, 2026, an increase of $5.2 million or 209%, as compared with $2.5 million in the three months ended March 31, 2025. The increase in loan origination expenses was driven by an increase in origination volume.
Other expenses were $5.4 million for the three months ended March 31, 2026, an increase of $4.5 million or 515%, as compared with $0.9 million in the three months ended March 31, 2025. The increase in other expenses was primarily driven the changes in the fair value of the warrant issued by the Company in connection with a private placement transaction, which provided the holder the right to purchase up to 211,312 shares of the Company’s Class A common stock prior to its exercise, as well as increases in liability-classified warrants and other equity related liabilities due to the higher trading price of the Company’s common stock, partially offset by a gain on the disposal of the BHO disposal group.
42
Results of Operations-Discontinued Operations
During the first quarter of 2026, the Birmingham Bank business, which represents the Company’s reportable banking segment was classified as held-for-sale. In addition, the Company determined that the planned disposal represents a strategic shift that is expected to have a significant effect on the Company’s operations and financial results. Accordingly, the results of the Birmingham Bank business are presented as discontinued operations in the Company’s condensed consolidated financial statements for all periods presented. The Company continues to actively market the Birmingham Bank business and is pursuing a sale transaction. The timing and ultimate outcome of the disposal remain subject to market conditions and regulatory approvals. The Company expects that the results of discontinued operations will continue to be impacted by operating performance, changes in interest rates, and any additional adjustments to the carrying value of the disposal group prior to sale.
The following table presents the results of discontinued operations for the periods indicated.
| Three Months Ended March 31, | |||||||||||
(Amounts in thousands, except per share amounts) | 2026 | 2025 | |||||||||
Revenues: | |||||||||||
| Other revenue | $ | (22) | $ | 380 | |||||||
| Net interest income | |||||||||||
| Interest income | 11,284 | 2,850 | |||||||||
| Interest expense | (8,606) | (2,005) | |||||||||
| Net interest income | 2,678 | 845 | |||||||||
Total net revenues | 2,656 | 1,225 | |||||||||
Expenses: | |||||||||||
| Compensation and benefits | 2,765 | 2,776 | |||||||||
| General and administrative | 1,069 | 853 | |||||||||
| Technology | 591 | 533 | |||||||||
| Marketing and advertising | 2 | 8 | |||||||||
| Depreciation and amortization | 286 | 202 | |||||||||
| Other expenses | 18,904 | 1,438 | |||||||||
Total expenses from discontinued operations | 23,617 | 5,810 | |||||||||
Net loss discontinued operations | $ | (20,961) | $ | (4,585) | |||||||
Three Months Ended March 31, 2026 as Compared to Three Months Ended March 31, 2025
Revenues
The components of revenues from discontinued operations for the period were:
| Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2026 | 2025 | |||||||||
Revenues: | |||||||||||
| Other revenue | $ | (22) | $ | 380 | |||||||
| Net interest income | |||||||||||
| Interest income | 11,284 | 2,850 | |||||||||
| Interest expense | (8,606) | (2,005) | |||||||||
| Net interest income | 2,678 | 845 | |||||||||
Total net revenues | $ | 2,656 | $ | 1,225 | |||||||
43
Net Interest Income
The components of net interest income for discontinued operations for the period were:
| Three Months Ended March 31, | |||||||||||
(Amounts in thousands) | 2026 | 2025 | |||||||||
| Interest income on loans held for investment | $ | 9,188 | $ | 1,878 | |||||||
| Interest income from investments | 2,096 | ||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-05-21 | Garg Vishal | Chief Executive Officer | Buy | +15,600 | $24.89 | $388,328 |
| 2026-05-20 | Garg Vishal | Chief Executive Officer | Buy | +15,600 ×2 | $25.00 | $389,994 |
| 2026-05-18 | Garg Vishal | Chief Executive Officer | Buy | +15,600 ×5 | $24.87 | $387,989 |
| 2026-05-12 | Advani Loveen | Chief Financial Officer | Buy | +400 | $30.55 | $12,220 |
| 2026-05-11 | Advani Loveen | Chief Financial Officer | Buy | +100 | $31.25 | $3,125 |
| 2026-05-08 | Talwar Harit | Director | Buy | +3,000 | $30.43 | $91,290 |
| 2026-05-07 | Garg Vishal | Chief Executive Officer | Buy | +6,583 ×2 | $30.00 | $197,485 |
| 2026-05-08 | Smith Chad M. indirect | Pres & COO, Better Mortgage | Sell | -2,455 ×3 | $30.16 | -$74,054 |
| 2026-04-09 | Talwar Harit | Director | Buy | +5,000 | $32.89 | $164,432 |
| 2026-04-08 | Talwar Harit | Director | Buy | +1,000 | $33.34 | $33,340 |
| 2026-04-08 | MENON BHASKAR | Director | Buy | +590 | $34.13 | $20,140 |
| 2026-04-08 | Advani Loveen | Chief Financial Officer | Buy | +10 | $35.50 | $355 |
| 2026-04-08 | Orn Jonsson Sigurgeir | Chief Technology Officer | Buy | +1,000 ×2 | $36.09 | $36,089 |
| 2026-04-08 | Garg Vishal | Chief Executive Officer | Buy | +10,000 | $35.05 | $350,519 |
| 2026-04-02 | Talwar Harit | Director | Buy | +5,000 | $35.24 | $176,218 |
| 2026-03-25 | Garg Vishal | Chief Executive Officer | Buy | +2,217 | $29.90 | $66,298 |
| 2026-03-24 | Garg Vishal | Chief Executive Officer | Buy | +10,600 ×3 | $28.90 | $306,366 |
| 2026-03-23 | Garg Vishal | Chief Executive Officer | Buy | +10,600 ×2 | $29.49 | $312,566 |
| 2026-03-17 | Smith Chad M. indirect | Pres & COO, Better Mortgage | Sell | -2,374 | $28.51 | -$67,690 |
| 2026-03-16 | Smith Chad M. indirect | Pres & COO, Better Mortgage | Sell | -2,567 | $29.80 | -$76,503 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-08-12 10-Q expected by 2026-08-13 (in 79 days)
- ~2026-11-12 10-Q expected by 2026-11-13 (in 171 days)
- ~2027-03-06 10-K expected by 2027-03-12 (in 285 days)
- ~2027-05-10 10-Q expected by 2027-05-11 (in 350 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-05-11 10-Q Quarterly Report
- 2026-05-07 8-K Earnings Release
- 2026-04-17 S-3 Registration Statement
- 2026-04-09 424B5 Prospectus Supplement
- 2026-04-09 8-K Earnings Release; Other Events; Financial Statements and Exhibits
- 2026-03-25 8-K Officer/Director Change
- 2026-03-19 8-K Changes in Auditor; Financial Statements and Exhibits
- 2026-03-13 10-K Annual Report
- 2026-03-13 8-K Earnings Release
- 2026-02-23 8-K Material Agreement Entered; Financial Statements and Exhibits
- 2025-12-22 8-K Other Events
- 2025-12-22 8-K Officer/Director Change; Other Events
- 2025-12-19 8-K Officer/Director Change; Regulation FD Disclosure
- 2025-11-13 10-Q Quarterly Report
- 2025-11-13 8-K Earnings Release