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- **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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