Better Home & Finance Q1 Earnings Call Highlights

Better Home & Finance (NASDAQ:BETR) reported first-quarter 2026 results that absorption said exceeded guidance, driven by sharply higher funded indebtedness measurement and continued enlargement of its Tinman AI level and spouse ecosystem.

First-quarter results: higher volume, improved losses

Chief Executive Officer Vishal Garg said the institution generated astir $1.64 cardinal successful funded indebtedness volume, “exceeding the precocious extremity of our anterior guidance” and representing astir 89% year-over-year growth. Revenue from continuing operations roseate astir 52% year-over-year to $47.5 million, portion adjusted EBITDA nonaccomplishment improved to astir $19 million, a 48% betterment from a twelvemonth earlier, according to Garg.

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Chief Financial Officer Naveen Advani said full expenses accrued astir 27% year-over-year, which helium characterized arsenic grounds of operating leverage arsenic Tinman AI scales. Advani besides said adjusted EBITDA nonaccomplishment improved 16% sequentially from the 4th quarter.

On merchandise performance, Advani said refinance measurement grew 542% year-over-year, location equity grew 30%, and acquisition grew 2%. By mix, helium said 52% of funded indebtedness measurement came from refinance, 36% from purchase, and 12% from location equity successful the quarter. By channel, astir fractional of funded indebtedness measurement came from the Tinman AI level and fractional from direct-to-consumer originations.

Macro volatility pressures conversion arsenic rates determination higher

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Management highlighted a late-quarter displacement successful the interest-rate situation tied to geopolitical events. Garg said the institution entered 2026 with momentum, citing funded indebtedness measurement of $450 cardinal successful January, $521 cardinal successful February, and $673 cardinal successful March, with month-over-month maturation of 16% and 29% successful February and March.

However, Garg said “the prolonged struggle successful the Middle East has started to amusement a marketplace interaction connected involvement rates crossed the owe industry,” with user rates connected Better’s level moving from 5.75% to “well implicit 6.5% successful the past fewer weeks.” He said this has caused customers to stall mid-funnel, hesitating to fastener astatine higher rates, and that “conversion rates are down from wherever they were successful Q1 owed to macro factors.”

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On the call, Garg said the company’s second-quarter guidance assumes “no resolution” to the struggle and nary betterment successful the macro environment.

HELOC premix displacement and portion economics successful absorption

Executives repeatedly pointed to location equity products arsenic a cardinal offset to refinance slowdowns. Garg said Better has been converting immoderate customers who “need currency present to HELOCs,” portion others seeking monthly savings whitethorn hold until rates fall.