$BETR earnings report

Better reported preliminary Q3 2026 Loan Volume of $1,395.0 million, up 15.3% year over year but down 16.3% from Q2 2026. The volume result fell within the previously issued $1.375 billion to $1.525 billion guidance range. Total Net Revenues were $45.1 million, up 8.6% year over year and down 17.5% sequentially. Revenue was below the previously issued $49.0 million to $52.0 million range, with management citing interest rate headwinds and proxy-related effects on morale, conversion, and partner launch timelines.

Preliminary Net Loss was $(33.1) million to $(34.1) million, narrower than $(39.1) million in Q3 2025 but wider than $(30.6) million in Q2 2026. Preliminary Adjusted EBITDA loss was $(24.8) million to $(25.8) million, compared with losses of $(23.0) million in Q3 2025 and $(14.0) million in Q2 2026. The result was worse than the prior guided Adjusted EBITDA loss range of $15.0 million to $18.0 million. The Company said approximately $8.0 million of proxy-related legal, PR, and other expenses were included, and that the loss excluding those expenses would have been approximately $(17.8) million.

The preliminary reconciliation identifies $2.8 million of stock-based compensation expense, $2.8 million of depreciation and amortization expense, $1.1 million of restructuring, impairment, and other expenses, and $2.4 million of loss from discontinued operations. Separately, the Company expects a non-cash reversal of approximately $7 million to $8 million of stock-based compensation expense in Q3, primarily from forfeiture of unvested equity awards following former directors' departures. These amounts remain preliminary and are subject to the Company's closing procedures.

Liquidity disclosures included $81 million of cash and cash equivalents, $9 million of restricted cash, and an unencumbered tangible equity position of $75 million in the UK Bank. The Company expects the UK Bank sale to close in Q1 2027 and generate an additional $65 million of cash. Management also described a potential borrowing against its Birmingham Bank position that it said could take total cash and securities to over $140 million before the sale is completed.

Management's near-term operational priorities are expense reductions and improved conversion efficiency in November and December, following expected October headwinds from proxy contest actions. Its stated year-end objective is Adjusted EBITDA breakeven on a go-forward basis, assuming the current rate environment and the identified expense savings. The release does not provide quantified Q4 revenue, volume, profitability, margin, tax-rate, or expense guidance.

Better reported preliminary Q3 2026 Total Loan Volume of $1.39 billion, up 15% from $1.21 billion in Q3 2025. The Company said this result was within its previously announced Loan Volume guidance range of $1.375 billion to $1.525 billion, toward the lower end. Management reported the volume performance against a 37% decrease in Industry volume during the same period and a 2 month public proxy fight distraction.

Tinman AI platform volume was the central growth driver. It increased 64% to $790 million from $483 million and represented approximately 57% of Total Loan Volume, compared with approximately 40% in Q3 2025. The CFO identified Tinman as the principal driver of year-over-year volume growth. The mix shift toward Tinman is therefore the principal reported operational change in the quarter.

The release is focused on reducing expenses to advance toward Adjusted EBITDA breakeven. The first Better 2.0 weekly scorecard reported approximately $1.1 million in monthly expense reductions, or $13.2 million annualized, from marketing and sales efficiency. The Company is targeting another $51 million in annualized reductions over the next four weeks, including targets tied to AI-enabled sales workflows, corporate functions, and professional-services arrangements. The combined initiatives represent approximately $5.35 million in monthly expense reductions, or $64.2 million annualized, once fully implemented.

The savings program remains predominantly forward-looking. The Company states that the remaining $51 million represents targeted reductions subject to execution and that the figures are annualized expense reductions rather than savings already realized. Management also intends to publish the scorecard weekly until it achieves Adjusted EBITDA breakeven, making implementation milestones, realized savings, and operating performance the key near-term measures.

This is not a complete earnings release. The Company explicitly describes the operating results as preliminary estimates subject to financial closing procedures and says they do not represent a complete presentation of third-quarter financial results or financial condition. Revenue, margins, earnings, Adjusted EBITDA, cash flow, cash, debt, and liquidity were not reported. The filing also says the Company expects to be in the market buying stock this week, but it gives no repurchase amount or authorization detail.

Better reported Q2 2026 Total Net Revenues of $54.7 million, up 28% year over year, alongside Loan Volume of $1.67 billion, up 38% year over year. Total Loans increased 42% year over year to 5,724. Gain on loans, net was $51,488 (Amounts in thousands), while net interest income was $2,120 (Amounts in thousands), below $2,823 (Amounts in thousands) in Q2 2025. Prior-period results were recast on a comparable basis following the reclassification of the U.K.-based bank to discontinued operations.

Product and channel mix shifted toward home equity and platform distribution. Purchase Loan Volume was $824 million, or 49% of Loan Volume; HELOC Loan Volume was $294 million, or 18%; and Refinance Loan Volume was $549 million, or 33%. Home Equity Loan Volume grew 45% quarter over quarter. Platform Loan Volume reached $912 million, represented 55% of Loan Volume, and increased 11% quarter over quarter, while D2C Loan Volume was $755 million and represented 45% of Loan Volume.

GAAP net loss improved to $(30.6) million from a loss of $(36.3) million in Q2 2025. Adjusted EBITDA loss improved to $14.0 million from $22.9 million, but the reported Q2 figure included a $6.5 million benefit from a TRID reserve release related to loans originated prior to June 2022. Total expenses were $86,104 (Amounts in thousands), compared with $74,955 (Amounts in thousands) in Q2 2025, with compensation and benefits of $51,579 (Amounts in thousands) and technology expense of $8,771 (Amounts in thousands).

Liquidity included $102.3 million of cash and cash equivalents and $9.6 million of restricted cash at quarter end. The balance sheet listed warehouse lines of credit of $454,334 (Amounts in thousands) and senior notes of $198,802 (Amounts in thousands). The Company also increased its target annualized cost reductions to exceed $45 million by year-end 2026, above the previously announced $25 million target.

Q3 guidance calls for Loan Volume of $1.375 to $1.525 billion, Total Net Revenues of $49.0 to $52.0 million, and Adjusted EBITDA of $(18.0) to $(15.0) million. Management tied its outlook to enterprise and wholesale expansion, deeper automation, and HELOC scaling, while identifying elevated rates, lower mortgage application volume, and partnership launch lead times as near-term conditions. Daniel Lewis became Interim Chief Executive Officer effective August 3, 2026, while Vishal Garg transitioned from Chief Executive Officer and will remain on the Board.

Better reported preliminary second-quarter 2026 Funded Loan Volume of $1.67 billion (+38% YOY) and Revenue of $54.7 million (+28% YOY). The reported growth in volume and revenue is the central operating positive in the release. Management attributed its strategic opportunity to platform distribution, stating that partners will own customer acquisition while Better provides Tinman® technology, underwriting, operations, capital markets, and regulatory infrastructure.

Profitability remained negative. The Company reported a Net Loss of $30.6 million and Adjusted EBITDA of -$14.0 million. The Adjusted EBITDA result included a $6.5 million benefit from a TRID reserve release related to loans originated prior to June 2022, making that item important in assessing the reported non-GAAP result. In the partial reconciliation provided, net loss was $ (30,593) for the three months ended June 30, 2026, compared with $ (36,270) for the three months ended June 30, 2025, with stock-based compensation expense of 14,585 compared with 4,252, in amounts in thousands.

The strategic update centers on lowering unit economics through a partner-led platform model rather than direct customer-acquisition spending. Management said HELOC demand continues to strengthen and that enterprise customers and independent mortgage brokers show strong interest in the platform. The Company also expects cost reductions already underway to exceed $45 million on an annualized basis by year-end, above its previously announced $25 million target.

Leadership transition is a material event alongside the preliminary financial update. Daniel Lewis was appointed Interim Chief Executive Officer effective immediately, succeeding Founder Vishal Garg, who will remain on the Board. The Board stated that the overwhelming majority of Mr. Lewis's compensation, to be determined by the Board, will be tied to shareholder returns and long-term operating performance.

The immediate reporting focus is the full second-quarter release and investor conference call scheduled for post market close on August 6, 2026. The Company cautioned that the preliminary results are based on estimates, remain subject to completion of financial closing procedures, and do not represent all information needed for a complete understanding of its financial condition as of the end of the second quarter. Investors will also watch progress in the FT Partners-led sale process for Birmingham Bank, the Company's UK bank subsidiary.