Financial Performance - For the three months ended June 30, 2025, the company reported total net revenues of $44.144 million, a 37% increase from $32.262 million in the same period of 2024[181]. - Gain on loans, net for the three months ended June 30, 2025, was $36.772 million, representing 83% of total net revenues, compared to $24.229 million or 75% in the prior year[181]. - The company generated $61.348 million in gain on loans, net for the six months ended June 30, 2025, an increase of 54% from $39.881 million in the same period of 2024[181]. - Other revenue for the three months ended June 30, 2025, was $3.300 million, accounting for 7% of total net revenues, compared to $2.881 million or 9% in the prior year[181]. - Total net revenues for the first half of 2025 were $76,697 million, an increase of 40.7% from $54,513 million in the first half of 2024[215]. - Gain on loans, net for Q2 2025 was $36,772 million, up 51.6% from $24,229 million in Q2 2024[215]. - Gain on sale of loans, net increased by $15.6 million or 85% to $34.0 million for the three months ended June 30, 2025 compared to $18.4 million for the same period in 2024, driven by an increase in Funded Loan Volume[216]. - Gain on sale of loans, net increased by $27.1 million or 96% to $55.3 million for the six months ended June 30, 2025 compared to $28.2 million for the same period in 2024, primarily due to increased Funded Loan Volume[217]. Loan Volume and Market Activity - Funded Loan Volume for Q2 2025 was $1,205 million, up from $962 million in Q2 2024, representing a 25.3% increase[190]. - Refinance Loan Volume increased to $162 million in Q2 2025 from $77 million in Q2 2024, a growth of 110.4%[190]. - Purchase Loan Volume rose to $803 million in Q2 2025 compared to $794 million in Q2 2024, a slight increase of 1.1%[190]. - International lending revenue primarily comes from the U.K., where the company plans to sell several entities as part of a strategic shift[188]. - International lending revenue increased by $0.2 million or 19% to $1.4 million for the three months ended June 30, 2025 compared to $1.2 million for the same period in 2024, driven by increased operations in U.K. brokerage businesses[223]. Expenses and Financial Management - Total expenses for the first half of 2025 were $163,285 million, compared to $147,024 million in the first half of 2024, an increase of 11.1%[214]. - Net interest income for Q2 2025 was $4,072 million, down from $5,152 million in Q2 2024, a decrease of 20.9%[215]. - Insurance Coverage Written decreased to $1,001 million in Q2 2025 from $1,164 million in Q2 2024, a decline of 14.0%[190]. - Average Loan Amount decreased to $298,952 in Q2 2025 from $321,178 in Q2 2024, a decline of 6.9%[190]. - Compensation and benefits expenses increased to $41.4 million for the three months ended June 30, 2025, up by $6.2 million or 17% from $35.3 million in the same period of 2024[243]. - General and administrative expenses decreased to $11.5 million for the three months ended June 30, 2025, down by $3.6 million or 24% from $15.2 million in the same period of 2024[244]. - Technology expenses rose to $6.9 million for the three months ended June 30, 2025, an increase of $0.4 million or 6% compared to $6.6 million in the same period of 2024[246]. - Marketing and advertising expenses reached $11.1 million for the three months ended June 30, 2025, an increase of $2.6 million or 31% from $8.5 million in the same period of 2024[248]. - Loan origination expenses surged to $3.9 million for the three months ended June 30, 2025, an increase of $3.1 million or 396% compared to $0.8 million in the same period of 2024[249]. - Total operating expenses for the three months ended June 30, 2025, were $80.3 million, compared to $73.4 million for the same period in 2024[243]. Cash Flow and Financing - Net cash used by operating activities decreased by $150 million, or 57%, to $113.5 million for the six months ended June 30, 2025, compared to $263.4 million for the same period in 2024[280]. - Net cash used in investing activities increased by $319 million, or 507%, to $382 million for the six months ended June 30, 2025, compared to $63 million for the same period in 2024[281]. - Net cash provided by financing activities increased by $221 million, or 152%, to $365.4 million for the six months ended June 30, 2025, compared to $144.8 million for the same period in 2024[282]. - The company raised approximately $568 million in gross proceeds from the Business Combination in August 2023, with $528.6 million in Convertible Notes issued[267]. - The company had total outstanding warehouse lines of credit of $371.2 million as of December 31, 2024, which increased to $575 million as of June 30, 2025[269]. Debt and Financial Obligations - The carrying value of the Senior Notes was $200.4 million as of June 30, 2025, including principal of $155 million and a redemption premium of $45.4 million[278]. - The Senior Notes will accrue interest at a rate of 6.00% per annum, payable semi-annually starting June 30, 2025, and maturing on December 31, 2028[276]. - The company does not have any off-balance sheet arrangements that are likely to materially affect its financial condition or operations[283]. Strategic Initiatives - The company is focused on expanding its customer base and market share, particularly through its direct-to-consumer (D2C), business-to-business (B2B), and retail channels[176]. - The company plans to leverage its proprietary technology, including the Tinman loan origination platform and Betsy, a voice-based AI loan assistant, to enhance customer experience and reduce loan production costs[173]. - The company is winding down its integrated relationship with Ally Bank, which has historically contributed to its B2B channel revenue, and is exploring new partnerships[178]. - The company aims to diversify its distribution strategy by integrating the executive team from NEO Home Loans to enhance its retail channel[179]. - The company is committed to investing in technology to improve operational efficiency and customer experience, aiming for a scalable platform[176].
AURORA ACQUISIT(AURC) - 2025 Q2 - Quarterly Report