Financial Data and Key Metrics Changes - In Q3 2025, funded loan volume increased by 17% year-over-year to approximately $1.2 billion, while revenue grew by 51% to approximately $44 million [18][19]. - The Adjusted EBITDA loss decreased to approximately $25 million, down from $27 million in the previous quarter and $39 million a year ago [37]. Business Line Data and Key Metrics Changes - Funded loan volume growth by product included home equity volume increasing by 52%, refinance loan volume increasing by 41%, and purchase loan volume increasing by 5% year-over-year [18]. - The direct-to-consumer (D2C) channel saw revenue per fund increase to $8,300, with a net contribution margin of $1,772 per fund, reflecting a 64% increase quarter-on-quarter [22]. Market Data and Key Metrics Changes - The company is positioned to fund $500 million in monthly volume, with expectations to double this to at least $1 billion in the next six months due to new partnerships [6][18]. - The marketplace for home equity lines of credit (HELOCs) is expected to be 100% of volume and revenue for the company, contrasting with incumbents who have a small portion of their volume from similar marketplaces [19][20]. Company Strategy and Development Direction - The company is evolving from a direct-to-consumer model to a platform that powers the home finance ecosystem through partnerships with local mortgage lenders and financial institutions [5][6]. - The strategy includes diversifying distribution channels and leveraging AI technology to enhance efficiency and reduce costs, aiming for break-even Adjusted EBITDA by Q3 2026 [21][36]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in scaling rapidly and profitably, citing past growth during favorable rate cycles and the potential for significant market share in the upcoming cycle [17][40]. - The company anticipates that the partnerships will ramp up over the next six months, contributing to substantial growth in loan volume and revenue [51][53]. Other Important Information - The company ended Q3 2025 with $226 million in cash and investments, maintaining strong relationships with financing counterparties [37][38]. - The company is focused on enhancing its go-to-market strategy while managing expenses and diversifying channels to achieve profitability [35][36]. Q&A Session Summary Question: Can you dive deeper into the three recent partnership announcements and how you expect each of these to ramp as we head into 2026? - Management expects the large financial services platform partnership to ramp over the next six months, with potential for multiple billions in monthly volume as user penetration increases [51][52]. Question: How would you characterize the future partnership pipeline right now? - The partnership pipeline has exploded due to the successful implementation of earlier partners and frustrations with incumbent solutions, leading to increased demand for the company's offerings [55][56]. Question: Can you provide detail on the volume opportunity with the top five U.S. personal financial services platform? - The addressable market could be significant, with estimates suggesting potential originations of around $24 billion if penetration rates are achieved [60][61]. Question: What is underpinning the outlook for increased loan volume? - The outlook assumes stable interest rates, with growth driven by partnerships and improvements in the D2C channel, which has seen organic growth of over 50% year-on-year [62][63]. Question: What is the anticipation for customer acquisition cost (CAC) as partnerships grow? - CAC is expected to trend lower as partnerships become a larger part of loan volume, with no upfront CAC associated with partner channels [70].
Better Home & Finance pany(BETR) - 2025 Q3 - Earnings Call Transcript