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 [20][21] - For the full year 2025, funded loan volume reached $4.7 billion and revenue was $165 million, up 32% and 52% year-over-year respectively [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 [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 overall residential funded loan volume increased by 4% year-over-year, while the company's loan volume grew by 56% [22] - The company has less than 1% market share in a large savings and loan market, indicating significant growth potential [30] 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 [29] - Partnerships with major players like Credit Karma and OpenAI are central to the company's strategy, aiming to reach tens of millions of consumers [19] - The company expects to achieve $1 billion in monthly loan volume by May 2026 and aims for Adjusted EBITDA breakeven by the end of Q3 2026 [22][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite macroeconomic challenges, highlighting the resilience of its model [22][30] - The company anticipates that the integration of AI will continue to lower costs and improve efficiency, enhancing its competitive position [25][27] - Management noted that the mortgage industry is undergoing significant changes, with increasing interest from banks and fintechs in leveraging the company's technology [60] Other Important Information - The company has onboarded 28 new loan officer teams onto the Tinman platform in 2025, demonstrating rapid growth in its retail mortgage lender partnerships [11] - The launch of a conversational credit decision engine integrated with ChatGPT is expected to open new distribution channels [15][16] Q&A Session Summary Question: Guidance on Q1 loan volume - The guidance for Q1 loan volume is flat due to seasonality, reflecting growth in the platform [38][39] Question: Medium-term profitability outlook - The target is to reach Adjusted EBITDA profitability by Q3 2026, with a focus on contribution margins of 10%-30% for new partnerships [40] Question: Metrics from pre-approvals to funded loans - The company sees a funding rate of about 5% from pre-approvals, with variations based on partner integration [48][49] Question: Status of stablecoin ecosystem for funding - The company is approximately six months away from implementing stablecoin funding [50][51] Question: Credit Karma partnership scope - Currently, the partnership focuses on refinancing, with plans to expand to HELOC and purchase products [55] Question: Contribution margin comparison - The contribution margin varies by product and partnership, with a focus on achieving profitability through increased penetration rates [79]

Better Home & Finance (NasdaqGM:BETR) Q4 2025 Earnings call March 13, 2026 08:30 AM ET Speaker4Ladies and gentlemen, thank you for standing by. My name is Krista, and I'll be your conference operator today. At this time, I would like to welcome you to the Better Home & Finance Holding Company fourth quarter and full year 2025 results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you'd like to ...