Better Home & Finance: Contradictions Surface on Partnership Strategies, Cost Efficiency, and AI Adoption in Q2 2025 Earnings Call

Partnership strategy and focus, unit economics and cost efficiency, AI effectiveness in cost efficiency, and Betsy's adoption and functional improvement are the key contradictions discussed in Better Home & Finance Holding's latest 2025Q2 earnings call.



Revenue and Loan Volume Growth:
- Better Home & Finance Holding Company reported revenue of $44.1 million for Q2 2025, up 37% year-on-year.
- Funded loan volume grew by 25% to $1.2 billion, with significant increases in home equity loans (166%), refinance loans (109%), and purchase loans (1%).
- The growth was driven by strategic investments in technology, product innovation, and distribution expansion, including the implementation of Betsy AI and the Tinman AI platform strategy.

AI and Efficiency Improvements:
- Betsy AI increased the lead-to-lock conversion rate by over 30%, from 3.3% to 4.4%.
- AI underwriting grew to over 43% of locked loans, with a clear path to 75% in the near future.
- The advancement in AI has led to improved unit economics, with Betsy's functionality enabling cost savings and better customer experiences.

Profitability Milestone:
- Better Home & Finance Holding Company now expects to achieve adjusted EBITDA breakeven by the third quarter of 2026, a year earlier than previously anticipated.
- This is based on advancements in AI technology, increased efficiency, and contributions from the Tinman AI platform and software business.

Tinman AI Platform Expansion:
- The Tinman AI platform funded $429 million in loans for 1,009 families in Q2 2025, a 164% increase in volume and 176% increase in families served.
- The platform has shown strong unit economics, with a contribution margin of 40% for every loan funded.
- Growth is attributed to the onboarding of high-volume mortgage loan officers from major retail mortgage companies, leading to increased loan capacity and higher margins.