Beeline — Q3 2026 Earnings Summary

Financial Performance:

• Net revenues reached $3.0 million, representing a 30% year-over-year increase and a 15% sequential increase from Q2 2026.
• 268 loans were originated, an 11% increase from 242 loans in Q3 2025 and an 11% increase from Q2 2026.
• Overall mortgage margins improved to 3.56%, up from 3.07% in Q2 2026 and 2.78% in Q1 2026.
• Operating expenses were $6.8 million, a 5% decline from $7.1 million in Q2 2026.
• Net loss was $3.8 million, compared to $4.0 million in both Q3 2025 and Q2 2026.
• Adjusted EBITDA loss was $1.8 million, a 35% improvement from $2.7 million in Q3 2025 and a 33% improvement from $2.6 million in Q2 2026.
• A $3 million annualized cost reduction plan is underway, with $250,000 in monthly savings in progress and $160,000 expected to be realized in November.
• For the nine months ended September 30, 2026, net loss was $13.1 million compared to $15.0 million in the same period in 2025.
• Adjusted EBITDA loss for the nine months ended September 30, 2026, was $7.4 million compared to $9.0 million in the same period in 2025.

Guidance and Future Outlook:

• Management expects fourth-quarter seasonality and the impact of a challenging interest-rate environment.
• Priorities for the upcoming period include protecting margins, increasing funnel efficiency, realizing planned cost savings, expanding automation, and maintaining sufficient liquidity.
• The company is working toward a more scalable operating model with a focus on higher-margin mortgage products and AI-enabled efficiency.

Business Segments and Product Lines:

• The company is shifting its product mix toward debt-service coverage ratio and bank statement loans to drive margin expansion.
• The proposed acquisition of TYTL would combine Beeline's AI-powered mortgage and national title infrastructure with TYTL's patent-pending blockchain securitization platform.
• TYTL is currently placing residential home equity data on-chain and digitally securitizing these assets for sale to investors.
• The combined entity aims to offer institutional investors home equity investment opportunities with defined risk profiles and potential for faster liquidity through Regulation D digital securities offerings.

Market and Competitive Landscape:

• The TYTL merger is expected to position Beeline as a leader in AI-powered, blockchain-enabled real estate finance.
• The combination aims to distance Beeline from traditional mortgage lending by exploring future applications for tokenized mortgage assets.
• The combined companies plan to offer compelling potential IRRs and faster liquidity to investors.

Risks and Challenges:

• Forward-looking statements cite risks including central bank interest rates, future interest rate changes, affordability, inflation, tariffs, the war in the Middle East, and potential labor market deterioration.
• Risks include the possibility of a recession impacting the company's business, customers, and the national/global economy.
• Challenges include the ability to raise additional capital to meet working capital needs and attract homeowners to products.
• Regulatory risks involve compliance with applicable requirements and potential changes regarding digital assets and artificial intelligence.
• The merger is subject to shareholder approval and closing conditions, including TYTL's ability to arrange necessary financing.

Management Commentary and Tone:

• CEO Nick Liuzza stated that despite challenging market conditions, the third quarter reflected measurable progress in the core business.
• Management emphasized a disciplined approach to liquidity and cost reduction while focusing on higher-margin products and improved conversion.
• The tone reflects confidence in the strategic pivot toward AI and blockchain technologies to create a scalable operating model.

Other Key Points:

• Definitive agreements for the TYTL acquisition are expected to be finalized within days, subject to shareholder approval and closing conditions.
• Upon closing, CEO Nick Liuzza will forfeit and cancel approximately 3 million of the 9 million anticipated TYTL merger shares to reduce dilution for existing shareholders.
• 33% of the CEO's merger shares will be restricted until performance milestones are met.
• 16.5% of the shares will be earned if Beeline achieves a $100 million market capitalization for five consecutive trading days, and another 16.5% at $200 million.
• The remaining 34% of shares will be issued at closing subject to lockup restrictions.
• Non-recurring expenses for the three and nine months ended September 30, 2026, included costs related to a class action complaint.
• A conference call to review results and discuss outlook is scheduled for November 12, 2026, at 5:00 p.m. ET, led by Nick Liuzza, Jess Kennedy, and Chris Moe.