Better Home & Finance (NASDAQ:BETR) Posts Earnings Results, Misses Expectations By $0.49 EPS

Better Home & Finance (NASDAQ:BETR) issued its quarterly earnings results on Monday. The company reported ($1.93) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.44) by ($0.49), FiscalAI reports. The company had revenue of $45.12 million during the quarter. Better Home & Finance had a negative return on equity of 440.39% and a negative net margin of 92.56%.

Here are the key takeaways from Better Home & Finance’s conference call:

• Q3 revenue was $45.1 million, below guidance, while loan volume was $1.4 billion. Adjusted EBITDA loss was $29.7 million, including $12.8 million in proxy-related costs; excluding those costs, the loss was $16.9 million, within the company’s guidance range.
• Monthly loan volume fell from $496 million in July to $345 million in October, with management attributing the decline to weaker conversion, operational disruption and market conditions. Executives expect October and November to be near the bottom before a gradual recovery, but said the ramp will take time.
• Management said completed cost actions are expected to generate $30.4 million in annualized savings toward a roughly $64.2 million target, and forecast Q4 adjusted operating expenses of $45 million to $47 million. The company is using AI to automate tasks and reduce staffing and other costs, with adjusted EBITDA break-even its stated priority.
• Tinman platform loan volume rose 64% year over year to $792 million, or 57% of total volume. Better is expanding HELOC distribution through a partner rollout and 39 signed brokerages representing an estimated $400 million in annual potential volume, though those opportunities have yet to fully ramp.
• Better ended Q3 with $77.5 million in cash and cash equivalents and said the Birmingham Bank sale could provide about $65 million in additional cash, subject to regulatory approval and an expected Q1 2027 close. The company also said it had repurchased 6.9% of its Class A shares.

Better Home & Finance Stock Down 8.8%

BETR stock traded down $1.64 during trading on Wednesday, hitting $16.87. 140,077 shares of the company’s stock traded hands, compared to its average volume of 578,389. The stock has a market capitalization of $320.59 million, a price-to-earnings ratio of -1.64 and a beta of 1.66. Better Home & Finance has a 52 week low of $7.51 and a 52 week high of $65.32. The stock has a fifty day moving average price of $13.85 and a two-hundred day moving average price of $24.58.

Wall Street Analyst Weigh In

Several brokerages have weighed in on BETR. BTIG Research decreased their price objective on shares of Better Home & Finance from $23.00 to $20.00 and set a “buy” rating for the company in a report on Monday, October 12th. CLSA upgraded shares of Better Home & Finance to a “buy” rating in a research note on Wednesday, September 9th. B. Riley Financial reduced their price target on shares of Better Home & Finance from $26.00 to $23.00 and set a “buy” rating on the stock in a research report on Tuesday. Wall Street Zen downgraded Better Home & Finance from a “sell” rating to a “strong sell” rating in a research note on Saturday, September 12th. Finally, Weiss Ratings downgraded Better Home & Finance from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Tuesday, October 27th. Eight equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $23.71.

Insider Transactions at Better Home & Finance

In other news, CTO Jonsson Sigurgeir Orn sold 2,210 shares of Better Home & Finance stock in a transaction dated Thursday, November 5th. The shares were sold at an average price of $18.94, for a total value of $41,857.40. Following the completion of the transaction, the chief technology officer directly owned 9,602 shares of the company’s stock, valued at approximately $181,861.88. The trade was a 18.71% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, General Counsel Paula Tuffin sold 3,108 shares of Better Home & Finance stock in a transaction dated Thursday, September 17th. The shares were sold at an average price of $12.36, for a total transaction of $38,414.88. Following the completion of the transaction, the general counsel directly owned 40,931 shares of the company’s stock, valued at $505,907.16. This trade represents a 7.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 12,647 shares of company stock worth $176,196. 27.72% of the stock is currently owned by insiders.

Institutional Trading of Better Home & Finance

Institutional investors and hedge funds have recently made changes to their positions in the stock. Whetstone Capital Advisors LLC bought a new stake in shares of Better Home & Finance in the 2nd quarter worth approximately $6,985,000. Fifth Third Bancorp bought a new stake in Better Home & Finance in the first quarter valued at $1,460,000. Jefferies Financial Group Inc. bought a new stake in Better Home & Finance in the third quarter valued at $306,000. Bank of New York Mellon Corp acquired a new position in shares of Better Home & Finance during the second quarter valued at $518,000. Finally, Quantinno Capital Management LP bought a new position in shares of Better Home & Finance during the first quarter worth about $505,000. 20.94% of the stock is currently owned by institutional investors and hedge funds.

More Better Home & Finance News

Investors following BETR have been watching these news items:

• Positive Sentiment: Better says its wholesale platform has expanded to 43 brokerages and reports $34.1 million in savings. Management is targeting fourth-quarter operating expenses of $45 million to $47 million, with additional quarterly cost savings planned—steps that could support its path toward break-even. Better 2.0 weekly scorecard
• Negative Sentiment: Q3 results fell short: BETR reported a loss of $1.93 per share versus analysts’ expected $1.44 loss, and revenue and adjusted EBITDA missed management’s guidance. Operating losses widened, while the break-even plan relies on sizable cost cuts and/or a substantial revenue increase. Q3 results
• Negative Sentiment: Multiple law firms highlighted a pending securities class action and the November 20 lead-plaintiff deadline. The complaint alleges that Better misled investors about loan-volume targets while conversion trends were slowing; the claims remain allegations. Separately, the general counsel and a director each sold a relatively small number of shares, a modest additional negative signal. Class-action deadline notice

About Better Home & Finance

Better Home & Finance Holding Company is a financial technology company that provides digital services for homeownership. Through its Better brand, the company offers an online platform designed to simplify the process of buying, financing and protecting a home. Its principal businesses include Better Mortgage, a digital mortgage lender and broker; Better Real Estate, which provides residential real estate brokerage services; Better Cover, an insurance platform; and Better Settlement Services, which supports title and closing activities.