Core Insights - Better Home & Finance has leveraged generative AI alongside its existing machine learning capabilities to enhance operational efficiency and pursue growth in a challenging mortgage market [3][6][18] Business Performance - The company has experienced a year-over-year increase in loan volume by approximately 20% and revenue growth of about 50% [6][9] - Home equity business has surged more than 10 times, positioning Better as the fastest-growing home equity platform in America [9] - Revenue per loan has risen from $7,400 to $8,500, while contribution margin improved from around $500 to $1,700 per loan [6][7] Technological Advancements - Better's end-to-end mortgage platform, Tinman, is trained on over $110 billion of loans and consolidates multiple systems into a single workflow, currently accounting for about 45% of total revenue with a target of 80-90% [5][13] - The platform enables operational efficiencies, with 70% of loans processed as "one-day mortgages" and expectations for over 90% of loans to be AI-driven in the coming years [12][18] Market Strategy - Better is focusing on large enterprise partnerships and aims to double loan volume over the next six months, with a goal of achieving adjusted EBITDA profitability by the end of Q3 2026 [4][18] - The company is monetizing its Tinman platform by providing software and back-office support to mortgage brokers and retail lenders, expanding its market reach [13] Competitive Landscape - Key competitors include Rocket Mortgage and loanDepot in the direct-to-consumer space, while Better's AI-driven solutions differentiate it in the market [15] - Better's unique offering combines various mortgage functions into a unified platform, setting it apart from competitors like ICE-owned Encompass and Black Knight [16]

Summary of Better Home & Finance FY Conference Company Overview - **Company**: Better Home & Finance (NasdaqGM: BETR) - **Industry**: Home finance and mortgage industry - **Founded**: Approximately 10 years ago by CEO Vishal Garg - **Business Model**: Utilizes a machine learning-driven AI matching engine to connect consumer credit, income, asset, and property data with investor preferences for mortgage and home equity loans Key Financial Metrics - **Growth in Loan Volume**: Increased by approximately 20% in the past year [4] - **Revenue Growth**: Grew by about 50% [4] - **Home Equity Business Growth**: Expanded over 10X, becoming the fastest-growing home equity platform in America [4] - **Revenue per Loan**: Increased from $7,400 to $8,500 [4] - **Contribution Margin**: Improved from $500 to $1,700 per loan [4] - **Labor Cost per Fund**: Reduced from $2,900 to $2,500, significantly lower than the industry average of over $9,000 [5] Product and Technology Developments - **AI Integration**: The company has integrated GenAI into its existing machine learning engine, enhancing efficiency and unit economics [3] - **Tinman Platform**: Represents a comprehensive end-to-end solution for the mortgage industry, consolidating multiple systems into one workflow [9][10] - **AI Loan Processing**: 70% of loans can be processed as one-day mortgages, with 44% going from lock to commitment letter in under a minute [10] - **Future Projections**: Anticipates that over 90% of loans will be processed entirely via AI in the coming years, potentially reducing labor costs to below $1,000 per loan [11] Market Position and Competitive Landscape - **Market Size**: U.S. homes represent a total asset value of approximately $34 trillion, with a mortgage market of about $15 trillion [6] - **Market Share**: At peak in 2021, Better held nearly 2% market share in the overall mortgage market [6] - **Competitors**: Direct competitors include Rocket Mortgage and loanDepot, with a shift towards a platform-based model rather than direct-to-consumer [26] - **Unique Selling Proposition**: Better's platform offers a unique per-funded loan pricing model, which is attractive to mortgage brokers and lenders [29] Strategic Partnerships and Growth Initiatives - **Partnerships**: Collaborations with major financial institutions and mortgage originators to implement the Tinman platform [15][17] - **Market Trends**: The company is positioned to benefit from a potential increase in refinancing as interest rates stabilize [27] - **Consumer Demand**: Over 2 million pre-approved consumers are waiting to purchase homes, indicating significant future demand [33] Challenges and Concerns - **Affordability Issues**: Concerns about housing affordability and the availability of homes to meet demand [33] - **Scaling Operations**: The need to scale operations effectively to handle increased demand when market conditions improve [34] - **Regulatory Changes**: Potential changes in capital gains tax thresholds could incentivize homeowners to sell, impacting market dynamics [34] Conclusion - Better Home & Finance is positioned for significant growth in the home finance sector, leveraging advanced AI technology and strategic partnerships to enhance its competitive edge. The company anticipates a favorable macroeconomic environment that could stimulate demand for its services in the coming years.

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]

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 Thesis - Better Home & Finance Holding Company (BETR) is positioned as a technology-driven homeownership platform aiming to transform the mortgage process, with a share price of $67.01 as of September 24th [1] Company Overview - BETR was formed through the merger of Aurora Acquisition and Better Holdco in August 2023, focusing on automating mortgage processes to enhance efficiency and reduce costs [2] - The company operates a proprietary loan origination platform called Tinman, which facilitates rapid pre-approvals and closings [2][3] Product and Service Innovations - BETR has introduced the "One Day Mortgage" program and Betsy, a voice-based AI assistant, to improve customer experience and operational efficiency [3] - The company has two main segments: Home Finance, which focuses on low credit exposure loans, and Better Plus, which integrates non-mortgage products into customer workflows [3] Revenue Generation Strategies - BETR is licensing Tinman as a white-label platform, expected to create high-margin recurring revenue under an "outcome as a service" model [3] - The company employs direct-to-consumer marketing, business-to-business partnerships, and a new retail channel called "NEO Powered by Better" to enhance distribution [4] Growth Priorities - Key growth strategies include scaling automation, expanding Better Plus products, entering international markets like the U.K., and improving conversion rates to maintain margins amid mortgage cycle fluctuations [4] Competitive Landscape - Despite challenges such as reliance on secondary loan sales and competition from fintechs and traditional lenders, BETR's technology-driven approach and diversified channels present a strong growth framework [5] - The company's low-risk balance sheet structure further supports its potential to become a differentiated player in the mortgage technology sector [5]

Core Viewpoint - Better Home & Finance (BETR) is being recognized as a potential game-changer in the mortgage industry, with significant bullish sentiment from activist investor Eric Jackson, who believes it could yield substantial returns in the coming years [1][3]. Company Overview - BETR shares surged nearly 40% following Jackson's endorsement, who referred to the company as the "Shopify of mortgages" [1]. - The company's innovative use of artificial intelligence (AI) provides a competitive edge in the real estate and mortgage markets, allowing it to operate efficiently with a reduced workforce of 900 employees compared to 3,000 previously [2]. Market Position - BETR is positioned to potentially revolutionize the $15 trillion mortgage industry through digital transformation, similar to Shopify's impact on online retail [3]. - The recent quarter-point rate cut by the U.S. central bank may act as a tailwind for BETR shares, as lower interest rates typically stimulate housing market activity [3]. Financial Projections - Jackson projects that Better Home & Finance could achieve up to $12 billion in revenue by 2028 through its direct-to-consumer business, institutional partnerships, and AI licensing [4]. Competitive Landscape - The global mortgage industry is highly competitive and cyclical, with established players holding significant market share, which poses challenges for BETR [5]. - The lack of broad Wall Street coverage is noted as a potential concern for BETR stock [5]. Investment Suitability - BETR may currently be more suitable for high-risk investors with a long-term investment horizon, given the speculative nature of its recent stock performance [6].

Company Overview - Better Home & Finance Holding Company is developing a next-generation AI mortgage platform aimed at simplifying and accelerating the mortgage process[11] - Mortgages originated with Better technology cost 43% less than the industry average[17] - The company's platform delivers a best-in-class experience with a 64 Net Promoter Score and a 4.1 out of 5 Trustpilot Score[21] Market Opportunity - The cumulative homeownership market size is estimated at $19+ trillion[19] - Home mortgages represent approximately 69% of total household debt[19] - Buyers pay fees to up to 10 intermediaries, accounting for ~10% of home price[21] Technology and Platform - The platform is powered by Tinman® AI, which enables faster rate quotes (3 seconds), pre-approvals (3 minutes), and loan closes (3 weeks)[21, 13] - The company's AI agent, Betsy, has led to a 3x increase in loan officer productivity[57] - The company retains loans on its balance sheet for approximately 26 days on average[30, 32] Financial Performance - In Q2 2025, the total mortgage revenue was $7886 thousand per fund[58] - In Q2 2025, the contribution margin per fund was $1064[58] - Adjusted EBITDA for Q2 2025 was $(26605) thousand, compared to $(23259) thousand in Q2 2024[79]

Financial Data and Key Metrics Changes - In 2024, the company achieved a 19% year-over-year increase in funded loan volume, totaling $3.6 billion, and a 50% increase in revenue, reaching $108 million [10][11] - The adjusted EBITDA loss was reduced by 26% year-over-year, amounting to $121 million [10] - For Q4 2024, funded loan volume was $936 million, a 77% year-over-year increase, while revenue was $25 million, up from $18 million in Q4 2023 [12][49] Business Line Data and Key Metrics Changes - Funded loan volume growth in Q4 was driven by home equity products and refinance loans, with purchase loan volume increasing by 25% and refinance loan volume surging by 611% year-over-year [14] - Home equity loan volume increased by 416% in Q4 2024 compared to the previous year [14] - The company reported that 81% of funded loan volume in Q4 was generated through the direct-to-consumer (D2C) channel, with 62% being purchase loans [50] Market Data and Key Metrics Changes - The overall mortgage market saw improvements in Q4 2024, but 30-year fixed mortgage rates remained high, impacting mortgage demand [16] - The company outperformed the market, with a reported 619% increase in HELOC originations compared to a 10% industry-wide increase [14] Company Strategy and Development Direction - The company aims to leverage AI and technology to enhance the home ownership experience, focusing on growth, efficiency improvements, and diversification of distribution channels [9][10] - The partnership with NEO Home Loans is expected to enhance local loan officer capabilities and improve conversion rates [33][45] - The company is committed to reducing expenses and improving operational efficiency to achieve profitability in the medium term [16][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in 2025, despite macroeconomic headwinds and the wind down of the Ally business [51][53] - The company anticipates a 10% to 15% decrease in funded loan volume in Q1 2025 due to seasonal slowness and the exit from non-core businesses [51] - Management highlighted the importance of AI in driving down operational costs and improving customer experience [18][30] Other Important Information - The company has implemented significant cost-saving measures, including reducing loan origination expenses by 28% and marketing expenses by 27% in Q4 [17] - The AI-driven assistant, Betsy, has significantly increased customer interactions, growing from 5,000 in June 2024 to over 115,000 by February 2025 [19][20] Q&A Session Summary Question: How does the underwriting and AI technology adjust for high property insurance costs? - Management explained that their technology integrates multiple data sources to provide instant homeowners insurance quotes, significantly reducing the need for manual processing [58] Question: How does profitability impact risk-taking? - Management clarified that their marketplace model does not involve holding loans on the balance sheet, thus minimizing risk while focusing on efficiency and cost reduction [62][68] Question: Can you walk through the savings opportunities from Tinman's AI application? - Management detailed that AI has reduced costs associated with loan officer tasks and improved customer service efficiency, leading to significant savings per funded loan [78] Question: How are gain on sale margins trending in Q1? - Management reported that gain on sale margins are trending higher, particularly with the NEO partnership, which is expected to enhance overall profitability [85][88] Question: Can you contextualize contribution profit per loan? - Management indicated that contribution margins have been improving, and they are focused on reducing costs in the mortgage business to drive profitability [98][100]

Financial Data and Key Metrics Changes - For the full year 2024, the company achieved $3.6 billion in funded loan volume, $108 million in revenue, and an adjusted EBITDA loss of $121 million, with a year-over-year revenue growth of 50% and a 19% increase in funded loan volume [8][9] - In Q4 2024, funded loan volume was $936 million, representing a 77% year-over-year increase, although it decreased approximately 10% sequentially due to seasonal factors [8][11] - The adjusted EBITDA loss in Q4 was $28 million, with total GAAP net loss around $59 million [46][47] Business Line Data and Key Metrics Changes - Funded loan volume growth in Q4 was driven by home equity products and refinance loans, with purchase loan volume increasing by 25% and refinance loan volume surging by 611% year-over-year [10][11] - The company reported a gain on sale margin improvement from 1.95% in 2023 to 2.17% in 2024, indicating enhanced revenue per loan through pricing and marketing optimization [9][10] Market Data and Key Metrics Changes - The overall HELOC and HELOAN originations increased by 10% in the third quarter, while the company’s origination volume grew by 619%, indicating significant market outperformance [10] - The mortgage market saw improvements in Q4 compared to the same period in 2023, but 30-year fixed mortgage rates remained high, impacting mortgage demand [11] Company Strategy and Development Direction - The company aims to leverage AI and technology to enhance operational efficiency, reduce costs, and improve customer experience, with a focus on achieving profitability in the medium term [6][8][45] - The strategic priorities include continuing to grow the business, diversifying distribution channels, and enhancing the technology platform to streamline the mortgage process [8][33] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by low housing affordability and high mortgage rates but expressed optimism about the company's growth trajectory and market share gains [8][11] - The outlook for 2025 anticipates funded loan volume growth in the low to mid double digits, driven by initiatives like Neo powered by Better, despite macroeconomic headwinds [49][50] Other Important Information - The company is winding down its UK businesses, which contributed to lower volume in Q4, and expects to fully exit this segment by Q2 2025 [34][48] - The introduction of Betsy, an AI voice-based loan assistant, has significantly improved customer interaction efficiency, with a 20x increase in customer interactions since its launch [14][27] Q&A Session Summary Question: How does the AI technology adjust for high property insurance costs? - Management explained that their AI system integrates multiple data sources to provide instant homeowners insurance quotes during the loan process, significantly reducing the need for manual intervention [54] Question: How does profitability affect risk-taking? - Management clarified that they operate a marketplace model, ensuring loans are pre-committed to investors before origination, thus minimizing risk while focusing on efficiency and cost reduction to achieve profitability [58][62] Question: Can you elaborate on savings opportunities from Tin Man's AI application? - Management highlighted that AI-driven processes have reduced operational costs significantly, with potential savings of $2,000 per funded loan and $1,400 for AI-underwritten loans, contributing to improved margins [72][73] Question: How are gain on sale margins trending in Q1? - Management reported that gain on sale margins are trending higher in Q1, particularly with Neo loans performing better than the direct-to-consumer business, indicating improved efficiency and customer conversion [80][82] Question: Can you contextualize contribution profit per loan? - Management indicated that contribution margins have been improving, and they are focused on reducing costs in the mortgage business to enhance profitability while maintaining a balance with corporate cost reductions [93][94]