Better Home & Finance (BETR) Q1 2026 earnings summary

Executive summary

• Q1 2026 funded loan volume surged 89% year-over-year to $1.645 billion, surpassing guidance, with Tinman AI platform driving significant gains and now representing up to 71% of originations.

• Total net revenues from continuing operations rose 52% year-over-year to $47.5 million, reflecting higher loan volumes and improved margins.

• Adjusted EBITDA loss improved 48% year-over-year to $18.8 million, the smallest quarterly loss since IPO.

• Strategic actions included a $69 million equity raise, $25 million in annualized cost reductions, expanded warehouse capacity, and divestiture of the U.K.-based bank.

• Macro headwinds, including elevated interest rates and geopolitical uncertainty, impacted conversion rates and operating environment.

Financial highlights

• Q1 2026 loan volume reached $1.645 billion, exceeding guidance by $95 million (6.1%).

• Tinman AI platform accounted for up to 71% of loan volume, up from 29% a year ago.

• Total net revenues were $47.5 million, up from $31.3 million in Q1 2025, driven by a 107% increase in gain on sale of loans.

• Adjusted EBITDA loss improved to $18.8 million from $36 million in Q1 2025, a 48% year-over-year improvement.

• Product mix: 52% refinance, 36% purchase, 12% HELOC.

Outlook and guidance

• Q2 2026 loan volume guidance: $1.575–$1.725 billion, representing ~37% year-over-year growth at midpoint.

• Q2 total net revenues expected at $53–$56 million, up ~28% year-over-year at midpoint.

• Q2 adjusted EBITDA loss guidance: ($12.5)–($14.0) million, a ~42% year-over-year improvement at midpoint.

• Targeting adjusted EBITDA breakeven by end of Q3 2026, dependent on macro environment.

• Sale of U.K. bank expected to conclude in 2026, subject to market and regulatory conditions.