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Aug 6, 2026, 4:09 PM ETFinancial Services

Better Home & Finance Holding Company — Second Quarter 2026 Earnings Summary

BETRBETTER HOME & FINANCE HOLDING CO
Source

Financial Performance

  • Total Net Revenues grew 28% year over year to $54.7 million in Q2 2026, compared to $42.7 million in Q2 2025.
  • Net Loss improved 16% year over year to $(30.6) million in Q2 2026, compared to $(36.3) million in Q2 2025.
  • Adjusted EBITDA loss narrowed 39% year over year to $(14.0) million in Q2 2026, compared to $(22.9) million in Q2 2025; this includes a $6.5 million benefit from a TRID reserve release related to loans originated prior to June 2022.
  • Loan Volume grew 38% year over year to $1.67 billion in Q2 2026, compared to $1.21 billion in Q2 2025.
  • Total Loans increased 42% year over year to 5,724 in Q2 2026, compared to 4,032 in Q2 2025.
  • Cash and cash equivalents ended Q2 2026 at $102.3 million, with $9.6 million in restricted cash.
  • Warehouse lines of credit increased to $454.3 million as of June 30, 2026, from $411.9 million as of December 31, 2025.
  • Senior notes remained constant at $198.8 million between December 31, 2025, and June 30, 2026.
  • Total Stockholders' Equity increased to $57.9 million as of June 30, 2026, from $37.2 million as of December 31, 2025.

Guidance and Future Outlook

  • Q3 2026 Loan Volume guidance is set at $1.375 to $1.525 billion.
  • Q3 2026 Total Net Revenues guidance is set at $49.0 to $52.0 million.
  • Q3 2026 Adjusted EBITDA guidance is set at $(18.0) to $(15.0) million.
  • Management targets annualized cost reductions to exceed $45 million by year-end 2026, an increase from the previously announced $25 million target.
  • The company plans to expand its HELOC product set beyond direct-to-consumer later in 2026.

Business Segments and Product Lines

  • Platform Loan Volume reached $912 million in Q2 2026, representing 55% of total Loan Volume and a 11% quarter-over-quarter increase.
  • Direct-to-Consumer (D2C) Loan Volume was $755 million, comprising 45% of total Loan Volume.
  • By product mix, Purchase Loan Volume was $824 million (49%), Refinance Loan Volume was $549 million (33%), and HELOC Loan Volume was $294 million (18%).
  • Home Equity Loan Volume grew 45% quarter over quarter.
  • The company reclassified its U.K.-based bank to discontinued operations, with prior-period results recast on a comparable basis.

Market and Competitive Landscape

  • Mortgage application volume fell by over 15% during the quarter due to a highly challenging macro environment with elevated rates.
  • Management states the company's growth will become less dependent on the macro environment and increasingly driven by execution as the HELOC product expands.
  • Better is described as the first AI-native mortgage and home equity finance company and the first fintech to fund more than $110 billion in loan volume since 2016.

Risks and Challenges

  • The business faces a muted near-term macro environment with elevated interest rates.
  • Natural lead times are associated with launching new partnerships.
  • Forward-looking statements regarding financial results, cost reductions, and leadership transitions are subject to risks and uncertainties detailed in the company's 10-K and other SEC filings.

Management Commentary and Tone

  • Daniel Lewis, Interim Chief Executive Officer, stated the company's "road to excellence has never been clearer" and expressed conviction in Better's products, technology, and distribution capabilities.
  • Lewis highlighted three priorities: expanding reach through enterprise and wholesale partners, deepening automation for operating efficiency, and aggressively scaling the HELOC product.
  • CFO Loveen Advani noted that disciplined execution against targets was achieved despite the challenging macro environment and that the diversified product mix will allow adaptation to the sustained elevated-rate environment.

Other Key Points

  • Board member Daniel Lewis was appointed Interim Chief Executive Officer effective August 3, 2026; Founder Vishal Garg transitioned from CEO but will continue to serve on the Board.
  • Proceeds from the issuance of common stock were $77.7 million for the six months ended June 30, 2026.
  • Proceeds from the exercise of warrants were $5.7 million for the six months ended June 30, 2026.
  • Stock-based compensation expense for the three months ended June 30, 2026, was $14.6 million, compared to $4.3 million in the same period in 2025.
  • The company intends to file a Quarterly Report on Form 10-Q for the three and six months ended June 30, 2026, with the SEC.