Key Points
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Interested in Better Home & Finance Holding Company? Here are five stocks we like better.
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Q3 revenue missed guidance: Revenue rose 9% year over year to $45.1 million and loan volume increased 15% to $1.4 billion, but the adjusted EBITDA loss widened to $29.7 million. Management said $12.8 million in proxy-contest expenses drove much of the shortfall; excluding them, the loss was about $16.9 million, within guidance.
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Better is targeting adjusted EBITDA break-even through cost cuts and AI: completed actions are expected to save $30.4 million annually toward a roughly $64.2 million target, with additional quarterly savings expected in Q4. The company plans to use AI tools for tasks including application support and follow-up.
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Loan volume declined month by month from $496 million in July to $345 million in October, while Better expands its partner channel and home-equity lending. Its AI-powered HELOC recently launched with a partner, and it has signed 39 brokerages representing an estimated $400 million in annual home-equity volume.
Better Home & Finance (NASDAQ:BETR) reported third-quarter revenue below its guidance and outlined plans to cut costs, expand home-equity lending and use artificial intelligence to improve productivity as it pursues adjusted EBITDA break-even.
The mortgage lender reported $45.1 million in total net revenue, up 9% from a year earlier, while loan volume rose 15% to $1.4 billion. Its net loss narrowed to $36.5 million from $39.1 million in the third quarter of 2025, but its adjusted EBITDA loss widened to $29.7 million from $22.9 million.
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Founder and Head of Product, Platform, and Innovation Vishal Garg attributed part of the shortfall to disruption from a proxy contest following his removal as CEO on Aug. 3. He said the contest delayed partnership launches and hurt employee productivity and customer conversion. Garg also cited interest rates and broader uncertainty as headwinds.
Chief Financial Officer Loveen Advani said $12.8 million in proxy-related expenses was the largest driver of the variance from the company’s adjusted EBITDA guidance. Excluding those expenses, the loss would have been approximately $16.9 million, within the company’s $15 million to $18 million guidance range.
Cost cuts and AI are central to turnaround
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Garg, who said shareholders backed his return in the proxy contest, described the company’s strategy as “Better 2.0.” Its top financial priority is to reach adjusted EBITDA break-even as soon as possible, he said, without giving a specific date.
