Financial Data and Key Metrics Changes - In Q4 2025, the company generated $1.5 billion in funded loan volume and $44 million in revenue, representing year-over-year increases of 56% in loan volume and 77% in revenue [20][21] - For the full year 2025, funded loan volume reached $4.7 billion, up 32% year-over-year, while revenue increased by 52% to $165 million [22][31] - The company achieved a loan processing cost of approximately $800 per loan, significantly lower than industry averages [24][66] Business Line Data and Key Metrics Changes - The Tinman AI platform generated $646 million in volume in Q4 2025, accounting for over 40% of total volume, surpassing prior guidance of $600 million [21] - By product, refinance grew by 119%, home equity increased by 78%, and purchase rose by 14% in 2025 [32] - The contribution margin improved from approximately $1,800 to $2,300 per loan quarter-over-quarter [33] Market Data and Key Metrics Changes - The total residential funded loan volume in the industry increased by 4% year-over-year, while the company's funded loan volume grew by 56% over the same period [21] - The company expects to reach $1 billion in monthly loan volume by May 2026, indicating strong market positioning [22][35] Company Strategy and Development Direction - The company is transitioning from a direct-to-consumer model to an AI-native platform that powers the broader mortgage ecosystem, which is expected to enhance volume potential and marginal economics [29][30] - Partnerships with major players like Credit Karma and OpenAI are central to the company's strategy, aiming to leverage their large customer bases for growth [19][30] - The company is focused on reducing operational costs and improving customer acquisition costs through its partnerships, which provide embedded distribution advantages [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving Adjusted EBITDA breakeven by the end of Q3 2026, driven by volume growth and improved contribution margins [35] - The company highlighted the importance of adapting to changing market conditions and leveraging AI to enhance operational efficiency [26][27] - Management noted that the mortgage industry is undergoing significant transformation, with a shift towards AI-driven solutions that can lower costs and improve service delivery [18][19] Other Important Information - The company ended Q4 2025 with $227 million in cash and investments, maintaining strong relationships with financing counterparties [34] - The launch of a conversational credit decision engine integrated with ChatGPT is expected to open new distribution channels and enhance customer engagement [15][16] Q&A Session Summary Question: Guidance on Q1 loan volume - Management indicated that the flat guidance for Q1 loan volume is due to seasonality, reflecting growth in the platform [39] Question: Medium-term profitability outlook - Management confirmed the target to reach Adjusted EBITDA profitability by Q3 2026, with a focus on evaluating growth opportunities post-breakeven [40] Question: Partnership metrics and funding expectations - Management noted that approximately 5% of pre-approvals typically convert to funded loans, with variations based on partner integration [48] Question: Credit Karma partnership scope - Currently, the partnership with Credit Karma focuses on refinancing, with plans to expand to HELOC and purchase products [55] Question: Cost to underwrite loans - Management stated that savings from lower underwriting costs are being passed on to borrowers, with competitive rates compared to industry averages [66]

Financial Data and Key Metrics Changes - In Q4 2025, the company generated $1.5 billion in funded loan volume and $44 million in revenue, representing year-over-year increases of 56% in loan volume and 77% in revenue [19][29] - For the full year 2025, funded loan volume grew 32% to approximately $4.7 billion, and revenue increased 52% to approximately $165 million [20][29] - The company achieved a loan processing cost of about $800 per loan, significantly lower than industry averages [22][59] Business Line Data and Key Metrics Changes - The Tinman AI platform generated $646 million in volume in Q4 2025, accounting for over 40% of total volume, surpassing prior guidance of $600 million [19][29] - By product, refinance grew 119%, home equity increased 78%, and purchase rose 14% in 2025 [30] - The contribution margin improved from approximately $1,800 to approximately $2,300 per loan, reflecting enhanced efficiency [31] Market Data and Key Metrics Changes - The company outperformed the industry average, which saw a total residential funded loan volume increase of only 4% year-over-year in Q4 2025 [20] - The partnership with Intuit Credit Karma, which serves over 40 million monthly active users, is expected to significantly enhance market penetration [8][9] Company Strategy and Development Direction - The company is transitioning from a direct-to-consumer model to an AI-native platform that powers the broader mortgage ecosystem, aiming for over 60% of loan volume to come from the Tinman AI platform by 2026 [27][33] - The strategy includes leveraging partnerships to reduce customer acquisition costs and operational expenses, creating a competitive advantage [21][23] - The launch of a conversational credit decision engine integrated with ChatGPT is expected to open new distribution channels and enhance customer experience [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching $1 billion in monthly volume by May 2026 and achieving Adjusted EBITDA breakeven by the end of Q3 2026 [20][33] - The company is optimistic about the future, citing a significant opportunity for growth through partnerships and technological advancements [25][32] Other Important Information - The company ended Q4 2025 with $227 million in cash and investments, maintaining strong relationships with financing counterparties [32] - The company is exploring a secure tokenized credit facility via a stablecoin ecosystem, which could lower funding costs by up to 100 basis points [23] Q&A Session Summary Question: Guidance on Q1 loan volume - Management indicated that the flat guidance for Q1 loan volume is due to seasonality, with expectations for growth in platform volume [36] Question: Medium-term profitability outlook - Management reiterated the goal of reaching Adjusted EBITDA profitability by Q3 2026, with a focus on contribution margins from new partnerships [37] Question: Metrics on pre-approvals to funded loans - Management noted that historically, about 5% of pre-approvals convert to funded loans, with variations based on partner integration [44] Question: Status of stablecoin ecosystem for funding - Management expects to see impacts from the stablecoin ecosystem on the bottom line within six months [46] Question: Credit Karma partnership scope - Currently, the partnership with Credit Karma focuses on refinancing, with plans to expand to HELOC and purchase products [50] Question: Contribution margin comparison - Management explained that contribution margins vary by product and partnership, with ongoing evaluations to optimize profitability [73]

Core Insights - Better Home & Finance Holding Company has successfully amended and renewed a $175 million warehouse credit facility, enhancing liquidity and operational flexibility [1][2] - The company expects monthly origination volumes to exceed $1 billion by May 2026, a more than 100% increase from the average monthly origination volume of approximately $400 million for the quarter ended September 30, 2025 [3] - Better.com aims to achieve adjusted EBITDA profitability by the end of the third quarter of 2026 [3] Financial Developments - The amended credit facility features reduced cash deposit requirements, expanded leverage capacity, and higher advance rates on certain non-GSE loans, significantly lowering ongoing equity capital requirements [2] - The enhancements improve equity capital efficiency by reducing the required amount of equity capital for the facility [4] Business Strategy - The company is deploying its Tinman AI platform across the mortgage ecosystem, which is expected to drive business evolution and improve customer experience [4] - New partnership channels are generating lead flow comparable to the company's established direct-to-consumer channel [4] Company Background - Better Home & Finance Holding Company is recognized as the first AI-native mortgage and home equity finance platform, having funded over $100 billion in loan volume since its inception in 2016 [5] - The company has received multiple awards for digital mortgage innovation and is noted for its customer service across all 50 US states and the UK [5]

Market Opportunity - The total addressable homeownership market is valued at $29 trillion[19] - The mortgage origination market is estimated at $5 trillion[22] - The top 10 players hold only 23% of mortgage originations, indicating a highly fragmented market[20] - 94% of Americans believe homeownership is an essential part of the American dream[24] Rocket Platform & Performance - Rocket's client recapture rate is 3 times higher than the industry average, with Rocket at 83% compared to the industry's 25%[37] - Rocket has invested $500 million in AI over the last five years[48] - Rocket services 28 million loans with a serviced unpaid principal balance (UPB) of $600 billion[39, 78] - Rocket's servicing portfolio has a fair value of $73 billion[78] - Rocket has a 97% net client retention rate[45, 78] Financial Highlights (Q1 2025) - Adjusted revenue was $1296 million, an increase of 11% year-over-year[72, 86] - Adjusted EBITDA was $169 million, with an EBITDA margin of 13%[72, 86]