What were the key takeaways from Better Home's earnings call?

What is the revenue and EPS growth rate for Better Home year over year?

What is Better Home's latest dividend and current dividend yield?

What guidance did Better Home's management provide for the next earnings period?

What does Better Home do and what are its main business segments?

What were the key takeaways from Better Home’s earnings call?

What is the market's earnings forecast for Better Home next quarter?

What factors drove the changes in Better Home's revenue and profit?

- **Revenue Surge**: Q3 2025 revenue up 51% YoY to $44M, funded loan volume $1.2B (17% YoY growth). Home equity origination up 52% YoY.
- **AI Efficiency Breakthrough**: Contribution margin per loan $1,772 (64% QoQ), Betsy AI conversion rate +84% to 6.1%.
- **Partnership Explosion**: 3 new partnerships targeting $1B+ monthly loan volume by mid-2026, 40% revenue from Tinman AI platform.
- **Profit Path**: Adjusted EBITDA loss $25M (35% YoY improvement), targeting breakeven by Q3 2026.
- **Market Opportunity**: $22T tappable home equity vs. $1T annual origination, Tinman platform costs 50% of industry average.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 2025 revenue reached $44 million, up 51% YoY, driven by 17% YoY increase in funded loan volume to $1.2 billion. Home equity volume grew 52%, refinance 41%, and purchase 5% YoY.
- **AI-Driven Efficiency**: Contribution margin per funded loan rose to $1,772 (64% QoQ increase), with Betsy AI improving lead-to-lock conversion rate by 84% (3.3% to 6.1%).
- **Partnerships Expansion**: Announced 3 new partnerships, including a top 5 U.S. personal financial services platform (50M+ customers), a top 5 non-bank mortgage originator, and Finance of America (reverse mortgage lender). These partnerships aim to scale to $1 billion+ monthly loan volume by mid-2026.
- **Tinman AI Platform**: Powers 40% of total revenue through local loan officer teams, with cost-to-fund at ~$3,000 vs. industry average of $6,000. Platform fees and profit-sharing drive SaaS-like margins.
- **Path to Profitability**: Target adjusted EBITDA breakeven by Q3 2026, with Q3 2025 loss of $25 million (down from $27 million Q2 2025 and $39 million Q3 2024). Cost reductions and partnership scaling will drive margin improvement.

**【CFO Financial Commentary】**
- **Financial Highlights**: GAAP net income of $420 million, Non-GAAP EPS of $1.08 (exceeded expectations). Adjusted EBITDA loss of $25 million, down 35% YoY.
- **Balance Sheet**: $226 million in cash and short-term investments, $575 million warehouse credit capacity. Rightsized capital structure by retiring $530 million convertible notes.

**【Q&A Key Highlights】**
- **Partnership Ramp**: Top 5 financial services partner expects to scale from 12 bps to multiples of industry average through algorithmic customer targeting. Mortgage originator partner to roll out Tinman across 300+ loan officers. Reverse mortgage lender to launch senior-focused HELOCs.
- **CAC Trends**: D2C CAC remains high due to long consumer decision cycles (1M+ preapprovals pending), but AI-driven conversion improvements reduce incremental CAC. Partnership channels have 0 upfront CAC.
- **Industry Outlook**: Home equity market underpenetrated ($22T tappable equity vs. $1T annual origination). Recession risk may stabilize purchase volume while driving home equity demand. Tinman platform positions Better to capture share regardless of rate cycle.

Better Home & Finance Holding Company (BETR) Q3 2025 Earnings Call Transcript

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