Want to see BETR full AI Analyst Report?
Top Page
Better Home & Finance
(NASDAQ:BETR)
Select Model
Select Model
Rating:44Neutral
Price Target:
$13.50
▲(0.67% Upside)
Action:Reiterated
Date:08/21/26
The score is held down primarily by weak financial fundamentals (persistent losses, cash burn, and stressed leverage) and bearish technicals (price far below key moving averages with negative momentum). Offsetting factors include improving operating trends and cost-reduction progress in guidance, plus partnership expansion that could support growth, but turnaround execution and governance risks remain significant.
Positive Factors
Strong loan and revenue growth
The rebound in funded volume and revenue indicates improving customer acquisition and platform utilization. Sustained growth across refinancing, purchase, and home-equity products could strengthen operating leverage if the company converts scale into durable profitability.
Negative Factors
Persistent losses and cash burn
Ongoing cash consumption limits financial flexibility and increases dependence on external funding. Because revenue growth has not yet produced positive cash profitability, the company remains exposed to weaker origination volumes, funding costs, and execution setbacks.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong loan and revenue growth
The rebound in funded volume and revenue indicates improving customer acquisition and platform utilization. Sustained growth across refinancing, purchase, and home-equity products could strengthen operating leverage if the company converts scale into durable profitability.
Read all positive factors
Better Home & Finance (BETR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$277.19M
Dividend YieldN/A
Average Volume (3M)287.54K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth41.17%
EPS Growth16.62%
CountryUS
Employees1,329
SectorFinancial
Sector Strength70
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)-11.02
Shares Outstanding13,243,928
10 Day Avg. Volume197,574
30 Day Avg. Volume287,544
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)13.44
Price to Sales (P/S)2.61
P/FCF Ratio-2.14
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$25.67Price Target Upside91.40% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)-2.85
Revenue Forecast (FY)$214.28M
Better Home & Finance Business Overview & Revenue Model
Company Description
Better Home & Finance Holding Company operates as a U.S.-based enterprise dedicated to various facets of homeownership. The company provides a comprehensive suite of mortgage products, including Government-Sponsored Enterprise (GSE) conforming loa...
How the Company Makes Money
BETR primarily makes money through its mortgage lending and related home-finance operations. Revenue is generated from (1) gain-on-sale and loan sale-related income when originated mortgages are sold to investors or into the secondary market, incl...
Better Home & Finance Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Neutral
The call presented a mix of encouraging operating progress and clear near-term challenges. Key positives include strong year-over-year loan volume and revenue growth, notable product traction (Tinman and HELOC), improved adjusted EBITDA performance, meaningful cost-savings targets exceeded, and increased warehouse capacity and cash resources. Offsetting these positives are persistent macro headwinds (higher rates and softer application activity), continued adjusted EBITDA losses with a missed breakeven timing, dependency on delayed partnership ramps for HELOC contribution, and a Q2 adjusted EBITDA benefit from a one-time reserve release. Management emphasized focus, disciplined capital allocation, and execution to drive sustainable profitability over time.Positive Updates
Strong Loan Volume Growth
Total loan volume grew 38% year-over-year to $1.67 billion in Q2 2026.
Negative Updates
Missed Breakeven Timeline
Company now expects to fall short of its previously guided adjusted EBITDA breakeven by September and will not re-anchor to a specific month for achieving breakeven.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Loan Volume Growth
Total loan volume grew 38% year-over-year to $1.67 billion in Q2 2026.
Read all positive updates
Company Guidance
The company guided Q3 loan volume of $1.375B–$1.525B (midpoint ≈ 20% YoY growth), total net revenues of $49M–$52M (midpoint ≈ 22% YoY) and an adjusted EBITDA loss of $18M–$15M (midpoint ≈ 28% improvement YoY), while reiterating that adjusted EBITDA breakeven by September is unlikely and timing depends on volumes, revenue mix and cost reductions; management now expects annual cost savings to exceed $45M (vs. prior $25M target) with cost cuts flowing through the P&L the rest of the year (Q2 adjusted OpEx ≈ $75M vs. Q3 midpoint OpEx ≈ $67M, ~ $8M quarterly savings), and noted Q2 results of $1.67B loan volume (+38% YoY), $54.7M total net revenues (+28% YoY, +15% QoQ), adjusted EBITDA loss of $14M (improved 39% YoY and 26% QoQ, including a one‑time $6.5M trade reserve release), HELOCs at 18% of Q2 volume (up from 12% last quarter), refinance $549M (+239% YoY), home equity $294M (+23% YoY), purchase $824M (+3% YoY), channel mix 55% Tinman/45% D2C, cash and equivalents ~$102M (+$10M restricted), and total warehouse capacity of ~$850M (a 48% increase vs. year‑end 2025), with HELOC partnership ramps expected to begin contributing more meaningfully in late Q3/Q4.Better Home & Finance Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
14
Very Negative
Cash Flow
20
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 211.65M | 191.37M | 120.05M | 88.50M | 395.08M | 1.31B |
| Gross Profit | 167.31M | 148.73M | -42.52M | -61.31M | -298.49M | 342.30M |
| EBITDA | -110.00M | -108.91M | -154.79M | -459.94M | -523.38M | -175.32M |
| Net Income | -179.95M | -165.87M | -206.29M | -536.42M | -877.08M | -301.13M |
Balance Sheet | ||||||
| Total Assets | 1.54B | 1.51B | 913.06M | 905.55M | 1.08B | 3.30B |
| Cash, Cash Equivalents and Short-Term Investments | 111.88M | 203.43M | 264.88M | 529.19M | 317.96M | 938.32M |
| Total Debt | 657.71M | 615.29M | 767.90M | 672.06M | 1.10B | 2.37B |
| Total Liabilities | 1.48B | 1.47B | 971.23M | 782.95M | 1.25B | 2.62B |
| Stockholders Equity | 57.90M | 37.18M | -58.17M | 122.60M | -167.90M | 676.44M |
Cash Flow | ||||||
| Free Cash Flow | -236.23M | -233.35M | -390.05M | -169.50M | 902.94M | 292.57M |
| Operating Cash Flow | -232.62M | -232.15M | -379.97M | -159.72M | 938.22M | 361.21M |
| Investing Cash Flow | -221.60M | -595.93M | -143.81M | -38.59M | -34.66M | -68.70M |
| Financing Cash Flow | 449.62M | 714.34M | 239.13M | 381.40M | -1.54B | 304.54M |
Better Home & Finance Technical Analysis
Negative
13.41
Price Trends
20.93
Negative
26.81
Negative
31.76
Negative
Market Momentum
-2.37
Negative
40.95
Neutral
68.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BETR, the sentiment is Negative. The current price of 13.41 is below the 20-day moving average (MA) of 15.02, below the 50-day MA of 20.93, and below the 200-day MA of 31.76, indicating a bearish trend. The MACD of -2.37 indicates Negative momentum. The RSI at 40.95 is Neutral, neither overbought nor oversold. The STOCH value of 68.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BETR.
Better Home & Finance Risk Analysis
Better Home & Finance disclosed 74 risk factors in its most recent earnings report. Better Home & Finance reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Better Home & Finance Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $713.82M | 6.48 | 15.83% | ― | 31.59% | 17.94% | |
56 Neutral | $40.32B | 88.04 | 2.40% | ― | 95.19% | ― | |
55 Neutral | $3.82B | 9.71 | 9.14% | 1.42% | 24.08% | 0.60% | |
46 Neutral | $2.37B | -18.60 | -20.07% | 21.86% | 11.65% | -440.08% | |
44 Neutral | $277.19M | -1.26 | -465.27% | ― | 41.17% | 16.62% | |
43 Neutral | $329.09M | -3.17 | -26.91% | ― | 17.11% | 9.17% |
* Financial Sector Average
BETR
Better Home & Finance
13.85
-8.78
-38.80%
PFSI
PennyMac Financial
73.38
-35.30
-32.48%
LDI
loanDepot
0.96
-1.18
-55.14%
VEL
Velocity Financial
18.01
-1.07
-5.61%
UWMC
UWM Holding
1.49
-3.63
-70.87%
RKT
Rocket Companies
13.77
-4.00
-22.51%
Better Home & Finance Corporate Events
Business Operations and StrategyDividendsShareholder Meetings
Better Home & Finance Adopts Defensive Shareholder Rights Plan
Negative
Aug 20, 2026
On August 20, 2026, Better Home Finance Holding Company’s special committee adopted a limited-duration shareholder rights plan, effective immediately and set to expire at the 2027 annual meeting, and declared a dividend of one right for eac...
Business Operations and StrategyExecutive/Board ChangesFinancial DisclosuresM&A Transactions
Better Home & Finance Names Daniel Lewis Interim CEO
Negative
Aug 4, 2026
On August 3, 2026, Better Home Finance announced that founder Vishal Garg stepped down as chief executive officer and that board member Daniel Lewis was appointed interim CEO, with Garg remaining on the board to support the transition. Lewis, a v...
Business Operations and StrategyProduct-Related Announcements
Better Home & Finance Expands Credit Karma HELOC Partnership
Positive
Jul 30, 2026
On July 28, 2026, Better Home Finance Holding Company amended its broker agreement with Intuit Credit Karma to expand their existing partnership. Better will provide Home Equity Line of Credit products to Credit Karma’s U.S. consumer base o...
Executive/Board ChangesRegulatory Filings and Compliance
Better Home & Finance announces board leadership changes
Neutral
Jul 29, 2026
On July 27, 2026, Better Home Finance Holding Company reported that director David Barse resigned from its board, effective immediately, with the company noting his departure was not related to any disagreement over operations, policies or practi...
Executive/Board ChangesShareholder Meetings
Aurora Acquisition Stockholders Approve Directors and Auditor
Positive
Jun 16, 2026
On June 10, 2026, Better Home Finance Holding Company held its Annual Meeting of Stockholders, at which a majority of the voting power of its Class A and Class B common stock was represented in person, remotely, or by proxy. Stockholders elected ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.