Better Home & Finance pany(BETR) - 2024 Q2 - Quarterly Report

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$32.3 million, compared to $31.1 million for the same period in 2023, representing a growth of 3.8$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$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].