Better Home 2025 Q1 Earnings Narrowed Net Losses Amid Growing Revenues

Better Home (BETR) reported its fiscal 2025 Q1 earnings on May 14th, 2025. The company saw a significant increase in total revenue, which rose by 46.8% to $28.52 million compared to the same quarter last year. Better Home has also successfully reduced its net loss, highlighting ongoing efforts to improve financial performance. The guidance for Q2 anticipates further revenue growth fueled by technological advancements and strategic initiatives.

Revenue
Better Home's revenue demonstrated robust growth, with gains largely driven by the loan segment, netting $24.58 million. Other revenue streams contributed an additional $4.03 million, while net interest income added $3.95 million, culminating in total net revenues of $32.55 million.

Earnings/Net Income
The company reduced its net loss to $50.56 million in Q1 2025, a 1.8% improvement from the previous year's net loss of $51.49 million. The earnings per share also showed a slight improvement from a loss of $3.41 to $3.33 per share, indicating ongoing financial challenges.

Price Action
The stock price of Better Home has edged down 1.83% during the latest trading day, has edged up 1.98% during the most recent full trading week, and has surged 30.35% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Better Home (BETR) shares following revenue raise announcements and holding them for 30 days has consistently yielded strong returns over the past five years, with an impressive annualized return of 18.58%, significantly outperforming the market. This approach has effectively leveraged the positive market momentum that often follows such revenue announcements, reflecting investor confidence in the company's growth prospects. BETR's stock price performance underscores its strategic focus on AI mortgage platforms and evolving B2B software partnerships, leading to substantial stock appreciation. Despite challenging market conditions, BETR's average annual return significantly exceeded the market average. The 30-day holding period has been crucial in capturing post-announcement rallies while mitigating short-term market volatility. In summary, this strategic approach underlines the importance of tracking financial reports for investment decisions.

CEO Commentary
“Deliberate and strategic efforts to scale AI across the enterprise and for our partners delivered strong year-over-year growth in Q1, especially given a challenging macroeconomic backdrop,” said Vishal Garg, CEO and Founder of Better. He emphasized that ongoing technological advancements are crucial for driving growth and operational efficiency improvements. Garg highlighted the expansion of Betsy into processing and underwriting workflows and the diversification of the Tinman AI platform as key initiatives enhancing profitability potential. He expressed optimism about the company's trajectory, noting that the team's efforts are yielding growth opportunities independent of broader market conditions.

Guidance
Expect Q2 funded loan volume to increase compared to Q1, driven by efficiencies in the Tinman AI platform, with a target for 2025 funded loan volume to surpass 2024 levels, supported by growth initiatives like NEO Powered by Better. The company anticipates further improvements to adjusted EBITDA losses in 2025 relative to 2024, focusing on technology efficiency, diversified distribution channels, and optimized marketing while managing towards midterm profitability.

Additional News
Better Home & Finance Holding Company (NASDAQ: BETR) has announced a strategic partnership with Biz2Credit, aimed at enhancing financing options for small business owners. This collaboration will provide Biz2Credit customers with access to Better.com's Home Equity Line of Credit (HELOC) and Home Equity Loan (HELOAN) products, offering loans ranging from $50,000 to $500,000. Additionally, Better Home recently retired approximately $530 million of convertible notes, enhancing its financial structure by creating about $265 million in pre-tax equity value. In another development, the company has launched a $25 million share repurchase program, which is expected to strengthen shareholder value and signal confidence in Better Home's growth prospects.