Core Viewpoint - The Russell 2000 index is positioned to potentially be the second-best-performing index in the U.S. stock exchanges as 2025 approaches, driven by a significant shift towards small-cap stocks due to the Federal Reserve's easing cycle [1]. Interest Rate Impact - The Federal Reserve has reduced the benchmark federal funds rate by 25 basis points, bringing it to a range of 3.5-3.75%, down from a high of 5.25-5.5% in 2023 during a tightening cycle aimed at controlling post-pandemic inflation [2]. Small Business Financing - Lower interest rates are favorable for small businesses, particularly as the period from mid-December to early March is historically strong for the Russell 2000 due to tax-loss harvesting and increased investor risk appetite at the start of the new year [3]. Top Performers in Russell 2000 - **Celcuity (CELC)**: - Stock Price: $100 - YTD Return: +695% - Market Cap: $4.71 billion - The company focuses on cellular analysis and precision oncology, experiencing significant stock price increases due to breakthrough clinical trials [5][6]. - **Better Home & Finance (BETR)**: - Stock Price: $48 - YTD Return: +442% - Market Cap: $794.72 million - Operates as an AI-powered mortgage lender and fintech company, with projected annual sales growth of over 50% this year and 67% next year [9][12]. - **Cogent Biosciences (COGT)**: - Stock Price: $40 - YTD Return: +413% - Market Cap: $5.58 billion - Focused on precision therapies for genetically defined diseases, with strong clinical progress on its lead drug, bezuclastinib [13][14]. Earnings Projections - Celcuity is expected to report a loss of -$3.86 per share in FY25 and -$4.05 in FY26, despite positive EPS revisions [8]. - Better Home's EPS revisions for FY25 and FY26 have slightly decreased, indicating potential short-term momentum loss [12]. - Cogent is projected to have a narrower adjusted loss of -$1.77 per share in FY26, with modestly higher EPS revisions in the last 60 days [14]. Investment Considerations - The strong performance of the Russell 2000 suggests that these top-performing stocks may be worth monitoring, although better buying opportunities may arise in the future [16].

Core Viewpoint - Hedge fund manager Eric Jackson is highly optimistic about Better Home & Finance Holding Co. (NASDAQ:BETR), positioning it as an AI-driven company rather than just a mortgage lender, similar to the trajectory of Palantir Technologies Inc. (NASDAQ:PLTR) [1][3] Group 1: Business Transformation - Better has restructured its operations around two main technologies, enabling it to originate loans at significantly lower costs compared to competitors while enhancing speed, pricing, and accuracy [2] - The market currently perceives Better as a struggling mortgage lender, but Jackson argues it has transitioned into an AI operating system for housing finance, akin to Palantir's approach in its sector [3] Group 2: Market Performance and Predictions - Jackson previously predicted a substantial upside for Opendoor Technologies Inc. (NASDAQ:OPEN), which has since seen a 1,492% increase in stock value, reinforcing his reputation in retail trading communities [4][5] - Better's revenue is reportedly showing early signs of an S-curve with a 51% year-over-year growth, flat operating expenses, and increasing AI-driven automation [6] - Jackson anticipates a "full re-rating" of Better's stock within the next 12 to 18 months, emphasizing its AI transformation and long-term potential as his top stock pick for 2026 [7]

Financial Performance - For the three months ended September 30, 2025, the company reported total net revenues of $43.867 million, a significant increase from $28.994 million in the same period of 2024[191]. - Net revenues for the three months ended September 30, 2025, increased to $43.9 million, a 51.3% increase from $29.0 million in the same period of 2024[223]. - The gain on loans, net for the three months ended September 30, 2025, was $36.421 million, representing 83% of total net revenues, compared to $21.503 million or 74% in the prior year[191]. - Gain on loans, net for the three months ended September 30, 2025, increased by $20.4 million or 129% to $36.4 million compared to $15.8 million for the same period in 2024, driven by increased funded loan volume[225]. - International lending revenue for the three months ended September 30, 2025, increased by $1.1 million or 91% to $2.3 million compared to $1.2 million in the same period of 2024, primarily due to increased operations in U.K. brokerage businesses[231]. - The net loss for the three months ended September 30, 2025, was $39.1 million, compared to a net loss of $54.2 million in the same period of 2024[223]. - Adjusted Net Loss for Q3 2025 was $(28,459) thousand, compared to $(48,886) thousand in Q3 2024, representing a 42% improvement year-over-year[271]. - Adjusted EBITDA for Q3 2025 was $(24,915) thousand, compared to $(38,870) thousand in Q3 2024, indicating a 36% improvement year-over-year[271]. Loan and Revenue Metrics - Funded loan volume for the three months ended September 30, 2025, was $1.210 billion, up from $1.035 billion in the same period of 2024[198]. - The average loan amount for the three months ended September 30, 2025, was $296,159, slightly down from $300,589 in the same period of 2024[198]. - The company reported a total of 4,086 loans funded during the three months ended September 30, 2025, compared to 3,443 loans in the same period of 2024[198]. - The company achieved a gain on sale margin of 3.01% for the three months ended September 30, 2025, compared to 2.08% in the same period of 2024[198]. Expenses and Costs - Total expenses for the three months ended September 30, 2025, were $82.8 million, slightly down from $83.1 million in the same period of 2024[223]. - Compensation and benefits expenses for the three months ended September 30, 2025, were $41.3 million, up from $37.8 million in the same period of 2024[223]. - Other revenue for the three months ended September 30, 2025, was $2.8 million, a decrease from $3.1 million in the same period of 2024[231]. - Broker revenue decreased by $0.8 million or 34% to $1.6 million for the three months ended September 30, 2025, primarily due to the conclusion of the integrated relationship partnership with Ally[227]. - General and administrative expenses decreased by $2.4 million, or 19%, to $10.2 million for the three months ended September 30, 2025, primarily due to reductions in rent and insurance premiums[253]. - Other expenses increased by $5.7 million, or 429%, to $7.1 million for the three months ended September 30, 2025, driven by increased liability classified warrants[261]. Strategic Initiatives - The company expanded its Retail channel by hiring the executive team from NEO Home Loans to enhance its distribution strategy[188]. - The company executed multiple new strategic partnerships, including one with a top five U.S. personal financial services platform serving over 50 million customers[190]. - The company plans to continue investing in technology to improve customer experience and reduce operational costs through automation[185]. - The company plans to sell several entities in the U.K. as part of a strategic shift, with the sale of its digital mortgage broker in the U.K. completed by the end of the third quarter of 2025[213]. Capital and Liquidity - The company raised approximately $568 million in gross proceeds from the Business Combination in August 2023, with $528.6 million in Convertible Notes issued[277]. - As of September 30, 2025, the company had an aggregate available amount of $575.0 million across three warehouse lines of credit[275]. - The company believes that funds from various sources will be adequate to meet liquidity and capital resource needs for at least the next 12 months[279]. - The Company implemented an At-the-Market (ATM) Offering Program on September 26, 2025, for sales of up to $75.0 million of its Class A common stock[289]. - The Company intends to use net proceeds from the ATM Program for general corporate purposes, including working capital and increasing warehouse line capacity[291]. Cash Flow - Net cash used by operating activities was $109.3 million for the nine months ended September 30, 2025, a decrease of $165 million, or 60%, compared to $274 million for the same period in 2024[293]. - Net cash used in investing activities was $589.5 million for the nine months ended September 30, 2025, an increase of $478 million, or 427%, compared to $111.8 million for the same period in 2024[295]. - Net cash provided by financing activities was $555.4 million for the nine months ended September 30, 2025, an increase of $462 million, or 496%, compared to $93.1 million for the same period in 2024[296]. - The increase in cash provided by financing activities was primarily driven by an increase in customer deposits through the Company's U.K. banking entity[296]. - The increase in cash used in investing activities was primarily due to purchases exceeding maturities of short-term investments and loan originations held for investment[295]. - The Company does not have any off-balance sheet arrangements that are likely to materially affect its financial condition[297].

Financial Data and Key Metrics Changes - In Q3 2025, funded loan volume increased by 17% year-over-year to approximately $1.2 billion, while revenue grew by 51% to approximately $44 million [18][19]. - The adjusted EBITDA loss for Q3 2025 was approximately $25 million, down from $27 million in the previous quarter and $39 million a year ago [37]. Business Line Data and Key Metrics Changes - Funded loan volume growth by product included home equity volume increasing by 52%, refinance loan volume increasing by 41%, and purchase loan volume increasing by 5% year-on-year [18]. - The direct-to-consumer (D2C) channel saw revenue per fund increase to $8,300, while the labor cost per fund decreased to $2,500, resulting in a net contribution margin of $1,772 per fund, a 64% increase quarter-on-quarter [22]. Market Data and Key Metrics Changes - The company is positioned to fund $500 million in monthly volume, with expectations to double this to at least $1 billion in the next six months due to new partnerships [6][18]. - The home equity market is highlighted as a significant opportunity, with Americans sitting on $35 trillion of home equity, representing the largest untapped asset class in the country [18]. Company Strategy and Development Direction - The company is evolving from a direct-to-consumer model to a platform that powers the entire home finance ecosystem, focusing on partnerships with local mortgage lenders and financial institutions [5][6]. - The strategy includes diversifying distribution channels and leveraging AI technology to enhance efficiency and reduce costs, aiming for adjusted EBITDA profitability by Q3 2026 [21][36]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in scaling rapidly and profitably, citing past growth during favorable rate cycles and the potential for significant market share in the upcoming cycle [17][40]. - The company anticipates that the partnerships will ramp up over the next six months, contributing to substantial loan volume growth [51][53]. Other Important Information - The company ended Q3 2025 with $226 million in cash and investments, maintaining strong relationships with financing counterparties [37][38]. - The partnerships announced are expected to transform the company's revenue model, with a focus on integrating AI-driven solutions into existing financial institutions [23][24]. Q&A Session Summary Question: Can you dive deeper into the three recent partnership announcements and how you expect each of these to ramp as we head into 2026? - Management expects the large financial services platform partnership to ramp over the next six months as user penetration increases, with potential for multiple billions in monthly volume [51][52]. Question: How would you characterize the future partnership pipeline right now? - The partnership pipeline has exploded due to the demand for Better's solutions, especially as incumbents face integration challenges [55][56]. Question: Can you provide details on the volume opportunity with the top five U.S. personal financial services platform? - The addressable market could be significant, with estimates suggesting potential originations of around $24 billion if penetration rates are achieved [60]. Question: What underpins the outlook for increasing loan volume to $1 billion? - The outlook is primarily driven by partnerships, with expectations for D2C growth and stable interest rates [61]. Question: Does the anticipated $1 billion loan volume assume full ramp-up of partnerships? - Management indicated that the $1 billion could be exceeded once partnerships are fully integrated [66]. Question: What is the expectation for customer acquisition costs (CAC) as partnerships grow? - CAC is expected to trend lower as partnerships become a larger part of loan volume, with no upfront CAC for partners [68].

Financial Data and Key Metrics Changes - In Q3 2025, funded loan volume increased by 17% year-over-year to approximately $1.2 billion, while revenue grew by 51% to approximately $44 million [18][19]. - The Adjusted EBITDA loss decreased to approximately $25 million, down from $27 million in the previous quarter and $39 million a year ago [37]. Business Line Data and Key Metrics Changes - Funded loan volume growth by product included home equity volume increasing by 52%, refinance loan volume increasing by 41%, and purchase loan volume increasing by 5% year-over-year [18]. - The direct-to-consumer (D2C) channel saw revenue per fund increase to $8,300, with a net contribution margin of $1,772 per fund, reflecting a 64% increase quarter-on-quarter [22]. Market Data and Key Metrics Changes - The company is positioned to fund $500 million in monthly volume, with expectations to double this to at least $1 billion in the next six months due to new partnerships [6][18]. - The marketplace for home equity lines of credit (HELOCs) is expected to be 100% of volume and revenue for the company, contrasting with incumbents who have a small portion of their volume from similar marketplaces [19][20]. Company Strategy and Development Direction - The company is evolving from a direct-to-consumer model to a platform that powers the home finance ecosystem through partnerships with local mortgage lenders and financial institutions [5][6]. - The strategy includes diversifying distribution channels and leveraging AI technology to enhance efficiency and reduce costs, aiming for break-even Adjusted EBITDA by Q3 2026 [21][36]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in scaling rapidly and profitably, citing past growth during favorable rate cycles and the potential for significant market share in the upcoming cycle [17][40]. - The company anticipates that the partnerships will ramp up over the next six months, contributing to substantial growth in loan volume and revenue [51][53]. Other Important Information - The company ended Q3 2025 with $226 million in cash and investments, maintaining strong relationships with financing counterparties [37][38]. - The company is focused on enhancing its go-to-market strategy while managing expenses and diversifying channels to achieve profitability [35][36]. Q&A Session Summary Question: Can you dive deeper into the three recent partnership announcements and how you expect each of these to ramp as we head into 2026? - Management expects the large financial services platform partnership to ramp over the next six months, with potential for multiple billions in monthly volume as user penetration increases [51][52]. Question: How would you characterize the future partnership pipeline right now? - The partnership pipeline has exploded due to the successful implementation of earlier partners and frustrations with incumbent solutions, leading to increased demand for the company's offerings [55][56]. Question: Can you provide detail on the volume opportunity with the top five U.S. personal financial services platform? - The addressable market could be significant, with estimates suggesting potential originations of around $24 billion if penetration rates are achieved [60][61]. Question: What is underpinning the outlook for increased loan volume? - The outlook assumes stable interest rates, with growth driven by partnerships and improvements in the D2C channel, which has seen organic growth of over 50% year-on-year [62][63]. Question: What is the anticipation for customer acquisition cost (CAC) as partnerships grow? - CAC is expected to trend lower as partnerships become a larger part of loan volume, with no upfront CAC associated with partner channels [70].

Financial Data and Key Metrics Changes - In Q3 2025, funded loan volume increased by 17% year-over-year to approximately $1.2 billion, while revenue grew by 51% to approximately $44 million, driven by increased loan funding through both direct-to-consumer (D2C) channels and the Tin Man AI platform [18][19] - The adjusted EBITDA loss for Q3 2025 was approximately $25 million, down from $27 million in the previous quarter and $39 million a year ago [37] Business Line Data and Key Metrics Changes - Funded loan volume growth by product showed home equity volume increasing by 52%, refinance loan volume increasing by 41%, and purchase loan volume increasing by 5% year-over-year [18] - The direct-to-consumer channel's revenue per fund increased to $8,300, while the labor cost per fund decreased to $2,500, resulting in a net contribution margin of $1,772 per fund, a 64% increase quarter-on-quarter [23] Market Data and Key Metrics Changes - The company is positioned to fund $500 million in monthly volume, with expectations to double this to at least $1 billion in the next six months due to new partnerships [6][18] - The marketplace for home equity lines of credit (HELOCs) is expected to grow significantly, with the company capturing 100% of volume and revenue in this space, unlike incumbents who have only a small portion [19][20] Company Strategy and Development Direction - The company is evolving from a direct-to-consumer model to a platform that powers the entire home finance ecosystem, focusing on partnerships with institutional lenders and financial institutions [5][6] - The strategy includes diversifying distribution channels and leveraging AI-driven platforms to reduce costs and improve customer experience, aiming for adjusted EBITDA profitability by Q3 2026 [21][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in scaling rapidly and profitably, citing strong unit economics and a robust pipeline of partnerships that will drive growth [17][36] - The company anticipates significant market share gains as the housing cycle turns and partnerships ramp up, with expectations of over $600 million in AI platform originations in Q4 2025 [39][40] Other Important Information - The company ended Q3 2025 with $226 million in cash and investments, maintaining strong relationships with financing counterparties [37][38] - The company is focused on enhancing its go-to-market strategy while managing expenses, with a goal of reaching break-even on an adjusted EBITDA basis by the end of Q3 2026 [35][36] Q&A Session Summary Question: Can you dive deeper into the three recent partnership announcements and how you expect each to ramp as we head into 2026? - Management expects the large financial services platform partnership to ramp over the next six months as user penetration increases, with potential for multiple billions in monthly volume [51][52] Question: What does the future partnership pipeline look like today? - The partnership pipeline has exploded due to the successful implementation of earlier partners and frustrations with incumbent solutions, leading to increased demand for the company's offerings [53] Question: Can you provide details on the volume opportunity with the top five U.S. personal financial services platform? - The addressable market could be around $24 billion based on a low average mortgage penetration rate, with potential for multiples of that through algorithmic mining of offers [55] Question: What underpins the outlook for increasing loan volume to $1 billion? - The outlook is primarily driven by partnerships, with expectations for significant growth in D2C as well, assuming interest rates remain stable [57][58] Question: How can AI efficiencies increase revenue per funded loan? - AI efficiencies are expected to enhance revenue per loan by allowing the AI platform to handle customer interactions and approvals more effectively than traditional loan officers [61]

分组1 - Better Home & Finance Holding Company (BETR) reported a quarterly loss of $1.86 per share, which was worse than the Zacks Consensus Estimate of a loss of $1.75, but an improvement from a loss of $3.23 per share a year ago, indicating a surprise of -6.29% [1] - The company posted revenues of $43.87 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 8.74%, and showing an increase from year-ago revenues of $28.99 million [2] - The stock has increased approximately 563.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 16.5% [3] 分组2 - The earnings outlook for Better Home & Finance Holding Company is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for the company was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is -$1.96 on revenues of $47.3 million, and for the current fiscal year, it is -$8.75 on revenues of $172.07 million [7] 分组3 - The Financial - Mortgage & Related Services industry, to which Better Home & Finance Holding Company belongs, is currently in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Company Overview and Strategy - Better Home & Finance Holding Company is positioning itself as a next-generation AI mortgage platform, aiming to simplify, speed up, and improve the mortgage experience[1, 12, 14] - The company's strategy involves expanding Tinman AI's reach beyond direct-to-consumer (D2C) into a platform and software model, addressing the mortgage industry's technology and human capital challenges[14] - The company aims to fully automate the manual aspects of the homeownership process and rapidly improve efficiency through advancements in Tinman AI[54, 55] Market Opportunity and Customer Experience - The homeownership market is enormous, with a cumulative market size of over $19 trillion[17] - The company's platform delivers a best-in-class experience, with a Net Promoter Score of 664 and a 4.1 out of 5 Trustpilot Score[19, 20] - Better Mortgage offers a broad suite of home financing solutions, including home purchase, refinance, and HELOC products[22, 29, 30, 31] Financial Performance and Partnerships - In Q3 2025, the company's total funded loan volume was $1.035 billion, with purchase volume at $774 million, HELOC volume at $183 million, and refinance volume at $44 million[48] - The company is targeting Adjusted EBITDA breakeven by the end of Q3 2026[58] - The company is actively developing new partnerships, including with a top five U S Personal Financial Services Platform and a top five U S Non-bank Mortgage Originator[50] AI and Technology - The company's proprietary AI mortgage platform, Tinman, powers its operations and drives better, faster, and cheaper customer experiences[36, 40] - Betsy, the company's AI voice-based loan assistant, has led to a ~3x increase in Loan Officer Productivity and a ~2x increase in lead-to-lock conversion to 6%, up from 3%[42] - The company expects $600 million of Tinman AI Platform volume in Q4[58]

Core Insights - Mortgage rates have significantly decreased, with the current 30-year fixed rate around 6.5%, providing potential savings for homeowners with higher rates [1][3] - Approximately 20 million Americans hold mortgages over 7%, indicating a large market for refinancing opportunities [2][3] - Better.com, an AI-powered mortgage lender, has seen its shares increase by over 700% this year, reflecting strong market performance [1] Company Overview - Better.com operates with an average mortgage rate of 6.2%, which is lower than the market average, allowing for substantial savings on interest for borrowers [3][4] - The company utilizes AI technology, specifically an AI loan officer named Betsy, which reduces the cost of mortgage origination to $3,000 compared to the industry average of $12,000 [4][5] - Betsy is trained on 12 million phone calls and is capable of automating various tasks, enhancing efficiency in the mortgage process [6] Market Position - Better.com has launched its home equity product in 2023 and is already two-thirds the size of its competitor, Figure, which has been in the market since 2018 [8] - The total tappable home equity in the U.S. is estimated at $32 trillion, with $18 trillion in debts, indicating a significant opportunity for refinancing through home equity lines of credit [7][8] - Better.com is growing faster than Figure, which has a market valuation of approximately $89 billion, while Better.com is valued around $1 billion [9] Competitive Landscape - The mortgage industry is characterized by outdated systems, with most companies using multiple disparate systems, while Better.com has developed a unique end-to-end system called Tinman [12][14] - The current market leaders struggle with inefficiencies due to their reliance on legacy systems, which hampers their ability to implement AI effectively [11][14] - Better.com's approach to integrating AI into its core operations allows for significant cost reductions, which can be passed on to consumers as savings [15]

Core Insights - Better Home & Finance Holding Company (BETR) shares increased by 28.5% to close at $81.39, with a notable trading volume and an overall gain of 85.8% over the past four weeks [1][2] Company Developments - The significant rise in BETR's shares is attributed to positive developments in home equity products, with a reported 166% year-over-year increase, facilitating the refinancing of over $193 million in customer debt [2] - BETR has partnered with Finance of America Reverse LLC to expand its product offerings, which may enhance revenue streams and boost investor confidence [2] Financial Expectations - The company is projected to report a quarterly loss of $1.75 per share, reflecting a year-over-year change of +45.8%, while revenues are expected to reach $48.07 million, up 65.8% from the previous year [3] - The consensus EPS estimate for BETR has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - BETR operates within the Zacks Financial - Mortgage & Related Services industry, where Rocket Companies (RKT) has experienced a 2.8% increase in its stock price, contrasting with RKT's -18.8% return over the past month [4]