Financial Performance - Q3 2024 funded loan volume reached $1.035 billion, representing a 42% increase year-over-year and an 8% increase quarter-over-quarter[1] - Revenue for Q3 2024 was $29.0 million, down from $32.3 million in Q2 2024 but up from $4.9 million in Q3 2023[2] - Net loss for Q3 2024 was $54.1 million, compared to $41.4 million in Q2 2024 and $353.9 million in Q3 2023[2] - Adjusted EBITDA loss for Q3 2024 was $38.7 million, compared to $23.3 million in Q2 2024 and $53.9 million in Q3 2023[2] - Adjusted EBITDA for the period was $(38,740) thousand, compared to $(53,897) thousand in the previous period, indicating an improvement of approximately 28%[15] Loan Volume and Metrics - Direct-to-consumer (D2C) loan volume was $776 million, a 102% increase year-over-year and a 16% increase quarter-over-quarter, making up 75% of funded loan volume[3] - Funded loan volume metrics include various categories such as purchase loans, refinance loans, and HELOC loans, which are critical for assessing the company's lending performance[17] - The total number of loans funded in the period, including purchase, refinance, and HELOC loans, is a key performance indicator for the company's growth strategy[17] Expenses and Cost Management - Total expenses increased by approximately $9.5 million quarter-over-quarter due to higher marketing spend and loan production team compensation[4] - Better aims to manage towards profitability in the midterm by balancing growth expenses with corporate cost reductions[1] Assets and Liabilities - Total assets as of September 30, 2024, amounted to $845,163 thousand, with cash and cash equivalents at $207,673 thousand[15] - Total liabilities were reported at $844,645 thousand, with a significant portion attributed to convertible notes totaling $518,012 thousand[15] - The company has an accumulated deficit of $(1,851,013) thousand, reflecting ongoing financial challenges[16] - Total stockholders' equity stands at $518 thousand, highlighting a minimal equity base relative to total liabilities[16] - The company has $54,414 thousand in short-term investments, providing liquidity for operational needs[15] - The company has $134,481 thousand in warehouse lines of credit, which is essential for managing liquidity and funding operations[15] Strategic Initiatives - The company launched Betsy™, the first voice-based AI loan assistant for the US mortgage industry, to enhance customer experience and improve loan-team efficiency[1] - The company plans to leverage Tinman™ to power local loan officers through 'NEO Powered by Better' to diversify distribution channels[4] - The company expects Q4 funded loan volume to be approximately in-line with Q3, driven by growth initiatives despite softer seasonality[1]

Financial Performance - Total net revenues for the three months ended June 30, 2024, were $32.262 million, a slight increase from $31.095 million in the same period of 2023[185]. - Gain on loans, net for the three months ended June 30, 2024, was $24.229 million, representing 75% of total revenue, down from 85% in the same period of 2023[185]. - Total net revenues for the three months ended June 30, 2024, increased to $32.3 million, compared to $31.1 million for the same period in 2023, representing a growth of 3.8%[220]. - Gain on sale of loans, net decreased by $2.3 million or 11% to $18.4 million for the three months ended June 30, 2024, compared to $20.7 million for the same period in 2023[221]. - Total net revenues for the six months ended June 30, 2024, increased to $54.5 million, compared to $49.7 million for the same period in 2023, representing a growth of 9.0%[220]. Loan Volume and Activity - Funded Loan Volume for the three months ended June 30, 2024, was $962 million, an increase of approximately 5% from $912 million in the same period of 2023[192]. - D2C Loan Volume increased by approximately 28% to $670 million in the three months ended June 30, 2024, compared to $522 million in the same period of 2023[196]. - B2B Loan Volume decreased by approximately 25% to $292 million in the three months ended June 30, 2024, from $390 million in the same period of 2023[197]. - Refinance Loan Volume increased by approximately 26% to $77 million in the three months ended June 30, 2024, compared to $61 million in the same period of 2023[193]. - HELOC Loan Volume increased significantly to $90 million in the three months ended June 30, 2024, from $9 million in the same period of 2023[195]. - Total Loans funded in the three months ended June 30, 2024, were 2,995, an increase of approximately 19% from 2,516 in the same period of 2023[197]. - Purchase and refinance loans comprised 2,134 of the Total Loans in the three months ended June 30, 2024, while HELOC and closed-end second lien loans comprised 861[198]. Expenses and Losses - Total expenses for the three months ended June 30, 2024, were $73,424, compared to $74,649 for the same period in 2023[218]. - Net loss for the three months ended June 30, 2024, was $(41,365), compared to $(44,010) for the same period in 2023[218]. - Compensation and benefits expenses increased to $35,254 for the three months ended June 30, 2024, from $33,996 in the same period of 2023[218]. - Marketing and advertising expenses increased to $8,531 for the three months ended June 30, 2024, compared to $3,101 for the same period in 2023[218]. - Gain on Sale Margin decreased by approximately 38 basis points to 2.52% during the three months ended June 30, 2024, from 2.90% for the same period in 2023[200]. Cash Flow and Financing - Net cash used in operating activities increased by 85% to $263.4 million for the six months ended June 30, 2024, compared to $142.0 million for the same period in 2023[262]. - Net cash used in investing activities rose by 47% to $63.0 million for the six months ended June 30, 2024, up from $43.0 million in the prior year[263]. - Net cash provided by financing activities surged by 668% to $144.8 million for the six months ended June 30, 2024, compared to a cash outflow of $25.0 million in the same period last year[264]. - As of June 30, 2024, the company had $378.8 million in cash and cash equivalents, compared to $528.6 million in principal amount outstanding under the Convertible Note[258]. - The company reported a total of $247.4 million in outstanding warehouse lines of credit as of June 30, 2024, compared to $126.2 million at the end of 2023[256]. Strategic Focus and Challenges - The company plans to continue investing in technology to enhance customer experience and reduce operational costs through automation[183]. - The company emphasizes the importance of maintaining and improving its business model to ensure operational effectiveness[268]. - The company is focused on expanding its customer base and growing market share in existing markets while entering new markets[268]. - The company acknowledges the impact of elevated interest rates and lower home sales on its business performance[268]. - The company aims to restore growth and expects long-term expansion of its business[268]. - The company is committed to developing new products and features that meet market needs and achieve market acceptance[268]. - The company faces risks related to compliance with laws and regulations affecting its operations[268]. - The company highlights the need for effective internal controls over financial reporting to remediate existing material weaknesses[268]. - The company recognizes the challenges in recruiting and retaining experienced management and team members[270]. - The company is aware of the potential impact of negative media coverage on morale and workplace culture[270]. Stock and Market Compliance - The company received an extension until October 7, 2024, to comply with the $1.00 per share requirement for continued inclusion on The Nasdaq Capital Market[257]. - A reverse stock split at a ratio of 1-for-50 was approved, effective August 16, 2024[260].

Financial Data and Key Metrics Changes - Funded loan volume increased by 45% quarter-over-quarter, reaching approximately $962 million in Q2 2024, compared to a prior guidance of above $800 million [6][20] - Revenue rose by approximately 41% quarter-over-quarter, totaling around $31 million [6][20] - Adjusted EBITDA loss improved by approximately $6 million compared to Q1 2024, amounting to a loss of approximately $25 million [20] - Total GAAP net loss for Q2 was approximately $42 million, an improvement of about $9 million from Q1 [20] - Total expenses remained flat at approximately $73 million in Q2 compared to $74 million in Q1 [20][13] Business Line Data and Key Metrics Changes - Purchase loan volume increased by 50%, HELOC volume increased by 76%, while refinance loan volume decreased by 5% [9] - The second quarter funded loan volume was 83% purchase, 8% refinance, and the remainder home equity products [20] - Gain on sale margin improved to 2.43% in Q2 2024 from 2.37% in Q1 2024, driven by increased pricing and improved customer retention [10] Market Data and Key Metrics Changes - The company reported that home equity products remain attractive to customers due to high home values and persistent high rates, allowing borrowers to tap into over $30 trillion in home equity [7] - The company expects funded loan volume to increase in 2024 compared to 2023, with a target of at least $1 billion in Q3 2024 [23] Company Strategy and Development Direction - The company aims to enhance growth while maintaining expense discipline, targeting profitability in the medium term [5][19] - Strategic priorities include increasing loan officer footprint, adding marketing channels, and expanding product offerings [8][14] - Investments in AI and automation are expected to drive operational efficiency and customer conversion [12][13][30] Management's Comments on Operating Environment and Future Outlook - Management noted that the mortgage market remains challenged but expressed optimism about growth opportunities as consumer demand returns [5][19] - The company anticipates a potential tailwind from expected rate cuts, which could stimulate refinancing activity [47] - Management emphasized the importance of maintaining strong relationships with real estate agents and brokers to drive purchase loans [39] Other Important Information - The company is executing a reverse stock split at a ratio of one post-split share for every 50 pre-split shares to regain compliance with NASDAQ listing requirements [22] - The company ended Q2 2024 with approximately $507 million in cash and investments, indicating strong liquidity for growth [21] Q&A Session Summary Question: Could you provide specifics on the AI initiatives and their impact on operational efficiency? - Management highlighted three main areas of impact: sales and customer support, processing times, and underwriting efficiency, with expectations to lower total loan manufacturing costs by over 50% [25][29][30] Question: What is the addressable opportunity for the B2B pilot program? - Management noted a significant opportunity with over $2 trillion in personal loans that could be addressed through partnerships for HELOC products [31][32] Question: What origination volume is needed to reach breakeven? - Management indicated that breakeven could be achieved with a volume of just over $10 billion, with ongoing efforts to improve gain on sale margins [34][35] Question: How will upcoming broker commission practice changes impact the industry? - Management believes that reducing friction in the mortgage process will lead to more transactions, benefiting the company [40][41] Question: How much rate cut is needed for refi volumes to increase? - Management suggested that a 50 basis point cut could significantly increase refinancing activity, with a potential $1.5 trillion in refinance volume available [45][46] Question: What is the revenue margin differential between refi and purchase business? - Management noted that refi typically has higher margins due to lower costs associated with processing [49][52] Question: Can you discuss loan officer capacity for originations? - Management stated that loan officer productivity is high, but bottlenecks exist in recruiting and training experienced loan officers [55][56]

Company Overview - BetterLife Pharma Inc. is an emerging biotechnology company focused on developing and commercializing compounds BETR-001 and BETR-002 for neuro-psychiatric and neurological disorders [6] - BETR-001 is a non-hallucinogenic derivative of LSD, currently in preclinical and IND-enabling studies, and is unique as it is unregulated and can be self-administered [2][4] - BETR-002, also in preclinical and IND-enabling studies, is based on honokiol, aimed at treating anxiety-related disorders including benzodiazepine dependency [7] Recent Developments - The company has issued 350,000 common shares and 350,000 share purchase warrants due to the conversion of convertible debentures totaling $35,000, with warrants exercisable at $0.10 per share until August 31, 2026 [5] - A review by the British Columbia Securities Commission prompted BetterLife to clarify disclosures regarding beneficial ownership by its CEO, Dr. Ahmad Doroudian [4] Intellectual Property - BetterLife holds a synthesis patent for BETR-001 that eliminates regulatory hurdles, and a pending patent covering treatment methods for major depressive disorder, anxiety disorder, and neuropathic pain [2]

Core Insights - BetterLife Pharma Inc. is focused on developing and commercializing innovative treatments for mental disorders, specifically through its compounds BETR-001 and BETR-002 [1][9] - BETR-001, a non-hallucinogenic derivative of LSD, is currently in preclinical and IND-enabling studies, with a pending patent for its composition and method of use targeting major depressive disorder, anxiety disorder, and neuropathic pain [5][9] - The company is collaborating with researchers from Carleton University to present findings on BETR-001 at the FENS conference, highlighting its potential therapeutic effects on neuroplasticity and neurotransmission [1][8] Company Overview - BetterLife Pharma is an emerging biotechnology company primarily focused on neuro-psychiatric and neurological disorders [9] - The company also has a drug candidate aimed at treating viral infections and is exploring strategic alternatives for its further development [10] Research and Development - BETR-002 is based on honokiol, an active ingredient from magnolia bark, and is in preclinical studies targeting anxiety-related disorders, including benzodiazepine dependency [3] - Recent preclinical findings indicate that BETR-001 activates key signaling pathways related to depressive disorders and may also be effective in treating neurodegeneration and addiction disorders [5][8]

Financial Performance - The company reported a net loss attributable to common stockholders of $51.5 million for the three months ended March 31, 2024, compared to a net loss of $87.6 million for the same period in 2023[264]. - The diluted earnings per share for the company was $(0.07) for the three months ended March 31, 2024, compared to $(0.29) for the same period in 2023[264]. - Total net revenues for the three months ended March 31, 2024, were $22.251 million, an increase from $18.626 million in the same period of 2023[290]. - Gain on loans, net, was $15.652 million, representing 70% of total net revenues, compared to $12.761 million (69%) in the prior year[291]. - Adjusted Net Loss for the three months ended March 31, 2024, was $(42,834) thousand, an improvement from $(72,743) thousand for the same period in 2023, reflecting a decrease of approximately 41%[405]. - Adjusted EBITDA for the three months ended March 31, 2024, was $(30,953) thousand, compared to $(57,152) thousand for the same period in 2023, indicating a reduction of about 46%[405]. - The net loss for the three months ended March 31, 2024, was $(51,492) thousand, compared to $(87,622) thousand for the same period in 2023, representing a 41% improvement[405]. Assets and Liabilities - Total assets as of March 31, 2024, were $166.2 million, a decrease from $171.9 million as of December 31, 2023[266]. - The company had total liabilities of $638,000 as of March 31, 2024, compared to $3.3 million as of December 31, 2023[266]. - The company had outstanding promissory notes totaling $17.9 million as of March 31, 2024, compared to $18.3 million as of December 31, 2023[281]. - As of March 31, 2024, the company had outstanding commitments to fund mortgage loans totaling approximately $262.7 million, up from $227.4 million as of December 31, 2023[410]. - The company has warehouse lines of credit totaling $425,000 thousand, with an amount outstanding of $126,161 thousand as of March 31, 2024, slightly down from $126,218 thousand as of December 31, 2023[407]. Revenue Streams - Refinance Loan Volume increased by approximately 16% to $81 million from $70 million year-over-year[296]. - HELOC Loan Volume surged to $51 million in Q1 2024, up from $2 million in Q1 2023[297]. - B2B Loan Volume decreased by approximately 16% to $301 million from $359 million year-over-year[298]. - Average Loan Amount decreased by approximately 7% to $332,111 from $357,792 in the same period last year[301]. - Funded Loan Volume decreased by approximately 22% to $661 million from $847 million year-over-year[326]. - Purchase Loan Volume decreased by approximately 32% to $529 million from $775 million in the same period last year[327]. - D2C Loan Volume decreased by approximately 26% to $360 million for the three months ended March 31, 2024, compared to $488 million for the same period in 2023[328]. - Total Loans funded decreased by approximately 16% to 1,991 for the three months ended March 31, 2024, down from 2,366 in the same period in 2023[330]. - Gain on Sale Margin increased by approximately 57% to 2.37% for the three months ended March 31, 2024, compared to 1.51% for the same period in 2023[332]. Expenses - Stock-based compensation expense increased to $8.760 million in Q1 2024 from $4.408 million in Q1 2023[311]. - Marketing and advertising expenses decreased by $3.2 million, or 41%, to $4.6 million for the three months ended March 31, 2024, compared to $7.8 million in the same period in 2023[358]. - General and administrative expenses decreased by $2.7 million, or 16%, to $14.0 million for the three months ended March 31, 2024, compared to $16.8 million for the same period in 2023[374]. - Technology expenses decreased by $9.0 million, or 62%, to $5.5 million for the three months ended March 31, 2024, compared to $14.4 million for the same period in 2023[397]. - Other expenses decreased by $11.2 million, or 102%, to $0.2 million for the three months ended March 31, 2024, compared to $11.1 million for the same period in 2023[375]. Tax and Compliance - The company recorded a total income tax expense of $0.1 million for the three months ended March 31, 2024, down from $1.4 million for the same period in 2023[274]. - The company is subject to financial requirements established by government-sponsored enterprises (GSEs) and has remained in compliance as of March 31, 2024[284]. - The company received an extension from Nasdaq until October 7, 2024, to comply with the $1.00 per share requirement for continued inclusion on The Nasdaq Capital Market[407]. Other Financial Metrics - The change in fair value of warrants for the three months ended March 31, 2024, was a gain of none, while for the same period in 2023, it was a gain of $0.6 million[278]. - The change in the fair value of warrants and equity-related liabilities was $(823) thousand for the three months ended March 31, 2024, with no comparable figure for the same period in 2023[405]. - The company had a restructuring, impairment, and other expenses of $721 thousand for the three months ended March 31, 2024, down from $9,137 thousand for the same period in 2023[405]. - Interest income from investments increased by $3.2 million, or 130%, to $5.67 million for the three months ended March 31, 2024, compared to $2.47 million for the same period in 2023[394]. - Mortgage interest income decreased by $0.96 million, or 24%, to $2.96 million for the three months ended March 31, 2024, compared to $3.93 million for the same period in 2023[371]. - International lending revenue increased by $0.1 million, or 12%, to $1.1 million for the three months ended March 31, 2024, compared to $1.0 million for the same period in 2023[351]. - Real estate services revenue decreased by $2.5 million, or 88%, to $0.3 million for the three months ended March 31, 2024, compared to $2.9 million for the same period in 2023[369]. - Integrated partnership fees decreased by $0.1 million, or 4%, to $2.3 million for the three months ended March 31, 2024, compared to $2.4 million for the same period in 2023[367]. - Other revenue increased by $0.3 million, or 58%, to $0.7 million for the three months ended March 31, 2024, compared to $0.5 million for the same period in 2023[370].

Better Home & Finance Holding Company (NASDAQ:BETR) Q1 2024 Earnings Conference Call May 14, 2024 8:30 AM ET Company Participants Hana Khosla - VP, Corporate Finance & IR Vishal Garg - Founder & CEO Kevin Ryan - CFO Conference Call Participants Ryan Tomasello - KBW Reginald Smith - J.P. Morgan Jamie Friedman - Susquehanna Operator Thank you for standing by. My name is Pam, and I will be your conference operator today. At this time, I would like to welcome everyone to the Better Home & Finance Holding Compan ...

• Strong quarter with Funded Loan Volume up 25% and Revenue up 26% in Q1'24 as compared to Q4'23 • Maintaining conviction in large addressable market and favorable consumer trends towards digitization and price transparency • Continued leaning into growth opportunities and expect Q2'24 Funded Loan Volume above $800 million • Continued strategic investments in Better's leading proprietary technology platform, Tinman™, to improve mortgage fulfillment efficiency • Focused on managing towards profitability whil ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________ FORM 10-K ________________________________________ x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-40143 ________________________________________ Better Home & Finance Holding Company ___________ ...

Better Home & Finance Holding Company (NASDAQ:BETR) Q4 2023 Results Conference Call March 28, 2024 8:30 AM ET Company Participants Hana Khosla - VP, Corporate Finance & IR Vishal Garg - Founder, CEO Kevin Ryan - President, CFO Conference Call Participants Ryan Tomasello - KBW Michael Kaye - Wells Fargo Jeff Cantwell - Seaport Research Pete Heckmann - D.A. Davidson Reggie Smith - JPMorgan Operator Good morning. My name is Christa, and I will be your conference operator today. At this time, I would like to we ...