Better Home & Finance (NASDAQ:BETR) Releases Quarterly Earnings Results, Misses Estimates By $0.49 EPS

Better Home & Finance (NASDAQ:BETR) posted its quarterly earnings data on Monday. The company reported ($1.93) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.44) by ($0.49), FiscalAI reports. The company had revenue of $45.12 million for the quarter. Better Home & Finance had a negative net margin of 94.52% and a negative return on equity of 409.62%.

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 Performance

NASDAQ:BETR opened at $18.97 on Tuesday. Better Home & Finance has a one year low of $7.51 and a one year high of $65.32. The firm has a market cap of $360.39 million, a price-to-earnings ratio of -1.56 and a beta of 1.66. The firm’s fifty day moving average is $13.76 and its two-hundred day moving average is $24.65.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on BETR. Weiss Ratings lowered shares of Better Home & Finance from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Tuesday, October 27th. Needham & Company LLC restated a “buy” rating and issued a $22.00 target price on shares of Better Home & Finance in a research note on Tuesday. Roth Capital set a $25.00 price target on Better Home & Finance in a research report on Thursday, August 13th. B. Riley Financial initiated coverage on Better Home & Finance in a research note on Wednesday, September 9th. They set a “buy” rating on the stock. Finally, BTIG Research cut their price objective on Better Home & Finance from $23.00 to $20.00 and set a “buy” rating on the stock in a report on Monday, October 12th. Eight research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $24.14.

Insiders Place Their Bets

In related news, General Counsel Paula Tuffin sold 3,108 shares of Better Home & Finance stock in a transaction that occurred on Thursday, September 17th. The stock was 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 in the company, valued at approximately $505,907.16. This trade represents a 7.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Chad M. Smith sold 3,307 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $12.85, for a total value of $42,494.95. Following the completion of the transaction, the insider directly owned 1,693 shares of the company’s stock, valued at $21,755.05. The trade was a 66.14% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 11,170 shares of company stock valued at $149,505. Company insiders own 27.72% of the company’s stock.

Hedge Funds Weigh In On Better Home & Finance

Large investors have recently made changes to their positions in the company. Whetstone Capital Advisors LLC acquired a new stake in Better Home & Finance during the second quarter valued at $6,985,000. Fifth Third Bancorp purchased a new stake in shares of Better Home & Finance during the 1st quarter worth about $1,460,000. Jefferies Financial Group Inc. purchased a new stake in shares of Better Home & Finance during the 3rd quarter worth about $306,000. Bank of New York Mellon Corp acquired a new stake in shares of Better Home & Finance during the 2nd quarter valued at about $518,000. Finally, Quantinno Capital Management LP acquired a new stake in shares of Better Home & Finance during the 1st quarter valued at about $505,000. 20.94% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Better Home & Finance

Here are the key news stories impacting Better Home & Finance this week:

• Negative Sentiment: BETR reported a Q3 loss of $1.93 per share, wider than the $1.44 loss analysts expected. Revenue was $45.12 million, and the company continued to post substantial losses. The earnings miss may weigh on sentiment about its financial performance. Quarterly earnings report
• Negative Sentiment: Multiple law firms publicized a pending securities class action and the November 20 lead-plaintiff deadline. The suit alleges Better reaffirmed a $1 billion monthly loan-volume target in March, then deferred it in May after customer conversions weakened; these are allegations, not proven findings. Litigation and the claims may add uncertainty for investors. Class-action allegations and deadline

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.