Better Home & Finance (BETR) Q4 2024 earnings summary

Executive summary

• Achieved 19% year-over-year growth in funded loan volume and 50% revenue growth for 2024, reaching $108 million, with Adjusted EBITDA losses reduced by 26% year-over-year and net loss narrowing to $206 million.

• Funded $3.6B in loans for 2024, with Q4 volume at $936M, up 77% year-over-year, despite a 10% sequential decline due to seasonality and Ally Bank wind-down.

• Launched and scaled AI-driven Tin Man and Betsy platforms, automating mortgage processes, improving customer experience, and handling over 120,000 interactions by Feb 2025.

• Neo Home Loans partnership expanded, onboarding 110 loan officers, funding $95M since January 2025, and achieving higher gain on sale margins than D2C.

• U.S. home finance market estimated at ~$3 trillion annually, with digital disruption accelerating and significant opportunity for technology-driven efficiency gains.

Financial highlights

• 2024 revenue reached $108M, with Q4 revenue at $25M, up from $18M in Q4 2023 but down from $29M in Q3 2024.

• Adjusted EBITDA loss for 2024 was $121M, improved from $163M in 2023; Q4 Adjusted EBITDA loss was $28M.

• Q4 gain on sale margin improved to 2.17% from 1.95% in 2023; Neo Home Loans achieved 365 bps vs. 217 bps company-wide.

• Q4 expenses included $17M in restructuring (mainly U.K. wind-down) and $4M in lease terminations; excluding these, expenses fell 24% sequentially.

• D2C loan volume for 2024 was $2.6B, a 55% year-over-year increase, representing 71% of total funded volume.

Outlook and guidance

• Q1 2025 funded loan volume expected to decline 10-15% sequentially due to seasonality and Ally exit.

• Full-year 2025 guidance: low to mid double-digit % growth in funded loan volume, with Neo ramping and offsetting Ally loss.

• Continued focus on reducing Adjusted EBITDA losses and achieving profitability through AI-driven efficiency and cost reductions.

• U.K. bank originations expected to more than double in 2025; non-core U.K. asset exits to benefit EBITDA in H2 2025.

• Operational plan for 2025 assumes limited rate relief due to ongoing market uncertainty.