$BETRW

Better Home & Finance Holding Co

CIK:0001835856|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Revenues:
Gain on loans, net	$ 51,488	$ 36,772	$ 96,289	$ 61,348
Other revenue	1,094	3,090	2,236	6,740
Net interest income
Interest income	8,333	8,556	15,617	16,151
Interest expense	(6,213)	(5,733)	(11,943)	(10,226)
Net interest income	2,120	2,823	3,674	5,925
Total net revenues	54,702	42,685	102,199	74,013
Expenses:
Compensation and benefits	51,579	37,833	107,315	81,725
General and administrative	10,327	10,501	19,275	21,278
Technology	8,771	6,407	17,132	13,056
Marketing and advertising	9,444	11,114	18,661	19,793
Loan origination expense	3,472	3,923	11,205	6,426
Depreciation and amortization	2,973	3,287	5,970	7,060
Other expenses (income)	(462)	1,890	4,959	2,772
Total expenses	86,104	74,955	184,517	152,110
Loss before income tax expense	(31,402)	(32,270)	(82,318)	(78,097)
Income tax (benefit) expense	63	94	(1,503)	239
Net loss continuing operations	(31,465)	(32,364)	(80,815)	(78,336)
Net income (loss) discontinued operations	872	(3,906)	(20,089)	(8,491)
Net loss	$ (30,593)	$ (36,270)	$ (100,904)	$ (86,827)
Loss per share attributable to common stockholders, basic and diluted:
Net loss from continuing operations, basic (in dollars per share)	$ (1.69)	$ (2.13)	$ (4.61)	$ (5.16)
Net loss from continuing operations, diluted (in dollars per share)	(1.69)	(2.13)	(4.61)	(5.16)
Net income (loss) from discontinued operations, basic (in dollars per share)	0.05	(0.26)	(1.15)	(0.56)
Net income (loss) from discontinued operations, diluted (in dollars per share)	0.05	(0.26)	(1.15)	(0.56)
Net loss, basic (in dollars per share)	(1.64)	(2.39)	(5.76)	(5.72)
Net loss, diluted (in dollars per share)	$ (1.64)	$ (2.39)	$ (5.76)	$ (5.72)
Weighted average common shares outstanding - basic (in shares)	18,653,890	15,187,558	17,538,353	15,185,724
Weighted average common shares outstanding - diluted (in shares)	18,653,890	15,187,558	17,538,353	15,185,724
Other comprehensive income/(loss):
Foreign currency translation adjustment, net of tax	$ 49	$ 5,318	$ (1,580)	$ 7,541
Comprehensive loss	$ (30,544)	$ (30,952)	$ (102,484)	$ (79,286)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash Flows from Operating Activities:
Net loss	$ (100,904)	$ (86,827)
Net income (loss) discontinued operations	(20,089)	(8,491)
Net loss from continuing operations	(80,815)	(78,336)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment	500	697
Impairment charges, net	399	1,356
Amortization of internal use software and other intangible assets	5,470	6,362
Gain on sale of loans, net	(94,918)	(55,293)
Non-cash interest and amortization of debt issuance costs and discounts	0	1,700
Change in fair value of warrants and equity related liabilities	5,135	344
Stock-based compensation	38,380	8,285
Provision (Recovery) of loan repurchase reserve	1,510	(2,549)
Change in fair value of derivatives	68	(813)
Change in fair value of mortgage loans held for sale	(7,433)	(7,206)
Gain on disposal of assets held for sale	(1,000)	0
Change in operating lease of right-of-use assets	14	(3,527)
Originations of mortgage loans held for sale	(3,255,127)	(2,055,658)
Proceeds from sale of mortgage loans held for sale	3,311,386	2,068,863
Change in operating assets and liabilities:
Other receivables, net	(7,519)	(1,428)
Prepaid expenses and other assets	(5,186)	2,694
Operating lease liabilities	(51)	2,047
Accounts payable and accrued expenses	(13,093)	8,060
Escrow payable and other customer accounts	1,353	721
Other liabilities	2,409	(205)
Net cash used in operating activities-continuing operations	(98,518)	(103,886)
Net cash used in operating activities-discontinued operations	(3,192)	(9,299)
Net cash used in operating activities	(101,710)	(113,185)
Cash Flows from Investing Activities:
Purchase of property and equipment	(470)	(609)
Proceeds of sale of assets held for sale	2,375	0
Capitalization of internal use software	(4,443)	(4,843)
Net cash used in investing activities-continuing operations	(2,538)	(5,452)
Net cash used in investing activities-discontinued operations	11,747	(376,515)
Net cash provided by (used in) investing activities	9,209	(381,967)
Cash Flows from Financing Activities:
Principal payments on convertible notes	0	(110,000)
Net borrowings on warehouse lines of credit	42,472	127,119
Proceeds from issuance of common stock	77,697	0
Proceeds from issuance of stock options	0	1
Proceeds from exercise of warrants	5,732	0
Net investment in discontinued operations	0	(47,930)
Net cash provided by/(used in) financing activities-continuing operations	125,901	(30,810)
Net cash (used in)/provided by financing activities-discontinued operations	(16,982)	396,161
Net cash provided by financing activities	108,919	365,351
Effects of currency translation on cash, cash equivalents, and restricted cash	(269)	2,511
Net change in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale	24,576	(137,637)
Less: net change in cash, cash equivalents and restricted cash classified within assets held for sale	(976)	1,316
Cash, cash equivalents, and restricted cash—Beginning of period	88,283	218,043
Cash, cash equivalents, and restricted cash—End of period	111,883	81,722
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Continuing Operation [Abstract]
Cash and cash equivalents, end of period	102,250	75,254
Restricted cash, end of period	9,633	6,468
Total cash, cash equivalents and restricted cash, end of period	111,883	81,722
Supplemental Disclosure of Cash Flow Information:
Interest paid on continuing operations	11,929	8,526
Interest paid on discontinued operations	15,824	2,630
Income taxes paid/(refunded)	149	(1,697)
Non-Cash Investing and Financing Activities:
Capitalization of stock-based compensation related to internal use software	1,142	776
Vesting of common stock issued via notes receivable from stockholders	0	2
Tax withholding upon vesting of restricted stock units	4,191	0
Convertible notes exchange	$ 0	$ 205,323

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
Assets
Cash and cash equivalents	$ 102,250	$ 79,357
Restricted cash	9,633	8,926
Mortgage loans held for sale, at fair value	511,080	466,681
Other receivables, net	18,233	10,716
Property and equipment, net	1,747	1,815
Right-of-use assets	4,664	4,678
Internal use software and other intangible assets, net	17,464	17,349
Goodwill	10,995	10,995
Derivative assets	3,558	4,210
Prepaid expenses and other assets	32,238	27,143
Total Assets	1,542,294	1,505,434
Liabilities
Warehouse lines of credit	454,334	411,862
Senior notes	198,802	198,802
Accounts payable and accrued expenses (includes payables to related parties of $453 and $200)	50,112	58,993
Escrow payable and other customer accounts	806	172
Derivative liabilities	220	804
Warrant and equity related liabilities, at fair value	2,172	1,476
Lease liabilities	4,579	4,629
Other liabilities	6,209	6,533
Total Liabilities	1,484,397	1,468,251
Commitments and contingencies (see Note 12)
Stockholders’ Equity
Common stock $0.0001 par value; 66,000,000 shares authorized and 18,981,789 and 15,996,907 shares issued and outstanding	2	2
Additional paid-in capital	2,232,960	2,109,762
Accumulated deficit	(2,177,142)	(2,076,238)
Accumulated other comprehensive gain	2,077	3,657
Total Stockholders’ Equity	57,897	37,183
Total Liabilities and Stockholders’ Equity	1,542,294	1,505,434
Held-for-Sale
Assets
Assets held for sale and discontinued operations	5,052	8,687
Liabilities
Liabilities held for sale and discontinued operations	5,052	4,802
Discontinued Operations
Assets
Assets held for sale and discontinued operations	825,380	864,877
Liabilities
Liabilities held for sale and discontinued operations	$ 762,111	$ 780,178