Summary of BETRW Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Performance::

Funded loan volume: $1.5 billion, up 56% year-over-year.

Revenue: $44 million, an increase of 77% year-over-year.

Tinman AI platform contributed $646 million in volume, representing over 40% of total volume.

Full Year 2025 Performance::

Funded loan volume: $4.7 billion, a 32% increase year-over-year.

Revenue: $165 million, up 52% year-over-year.

Adjusted EBITDA loss: $24 million, improved from $28 million in Q4 2024.

Cost Efficiency::

Cost to process, underwrite, and close a loan: approximately $800.

Contribution margin per loan improved to $2,300, up 28% quarter-over-quarter.

2Strategic Updates and Business Highlights

Transitioning from a direct-to-consumer (D2C) model to an AI-native platform for the mortgage industry.

Significant partnerships established, notably with Intuit Credit Karma, aiming to integrate their vast user base into Better's platform.

The launch of the Tinman AI platform, which automates up to 80% of loan production tasks, enhancing efficiency and scalability.

New product offerings include a conversational credit decision engine integrated with ChatGPT, allowing for rapid credit approvals.

Partnerships with local retail mortgage lenders and a focus on expanding the platform's capabilities to serve diverse consumer needs.

3Forward Guidance and Outlook

Q1 2026 loan volume expected between $1.4 billion and $1.55 billion, representing a 70% year-over-year growth.

Targeting $1 billion in monthly loan volume by May 2026.

Aiming for adjusted EBITDA breakeven by the end of Q3 2026.

Anticipating that 60% of loan volume will come from the Tinman AI platform by 2026.

4Bad News, Challenges, or Points of Concern

The conclusion of the Ally partnership posed a $1 billion headwind to growth, although the company demonstrated resilience in maintaining growth.

The transition to an AI-native platform involves longer ramp-up times for enterprise partnerships, which may affect short-term growth.

Competitive pressures remain, particularly from traditional mortgage originators and emerging fintechs, necessitating continuous innovation and efficiency improvements.

5Notable Q&A Insights

Guidance on Loan Volume:: The flat guidance for Q1 2026 is attributed to seasonality rather than a lack of growth in partnerships.

Profitability Outlook:: The focus remains on achieving adjusted EBITDA profitability by Q3 2026, with a cautious approach to balancing growth investments and expense discipline.

Partnership Metrics:: The conversion rate from preapprovals to funded loans is approximately 5%, with expectations that deeper integrations with partners will enhance this metric.

Stablecoin Funding:: The introduction of stablecoin funding is projected to lower capital costs by 100 basis points, potentially enhancing margins significantly.

Market Positioning:: The company believes it is uniquely positioned to capitalize on the evolving mortgage landscape, particularly with the integration of AI and partnerships with large financial institutions. Overall, BETRW is undergoing a significant transformation, leveraging its AI capabilities to reshape the mortgage industry while navigating challenges and competitive pressures. The outlook remains optimistic with clear growth targets and strategic partnerships in place.