$BETR earnings report

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.