Better Home & Finance Holding Company Reports $1.64B in Preliminary Funded Loan Volume for Q1 2026, Exceeding Prior Guidance; Strengthens Balance Sheet and Announces Strategic Actions to Drive Profitable Growth
Summary of Announcements:
- Q1 2026 preliminary Funded Loan Volume of $1.64B, exceeding prior guidance of $1.40B to $1.55B
- Oversubscribed Public Offering of $60M of Class A common stock with over-allotments of up to $9M for an anticipated total of $69M; terminating the At-The-Market (ATM) program
- $25M of annualized cost reductions beginning Q2 2026
- U.K.-based bank: classified as held for sale effective Q1 2026; active sale process underway
Better Home & Finance Holding Company (NASDAQ:BETR, BETRW)) ("Better," the "Company," "our" or "we"), the AI-native mortgage and home equity finance company, today reported $1.64B in preliminary funded loan volume for Q1 2026 exceeding prior guidance; strengthens balance sheet and announces strategic actions to drive profitable growth.
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"I am pleased to report that our Q1 2026 Funded Loan Volume of $1.64 billion exceeded our guidance and increased by 89% year-over-year. March Funded Loan Volume reached $671 million, reflecting accelerating momentum despite the quarter being seasonally softer for purchase volumes. Our decision to raise capital, simplify our international footprint, and reduce costs will position the Company to act decisively on high-conviction growth opportunities without reliance on the equity capital markets for the foreseeable future," said Vishal Garg, Chief Executive Officer.
Capital Raise; Termination of ATM:
The Company announced a Public Offering of Class A Common Stock of $60M (the "Offering") with over-allotments of up to $9M totaling an anticipated total of $69M before underwriting discounts and commissions. The Offering price reflects an approximate 3.9% discount to the Company's 30-day volume weighted average price of the Company's Class A common stock as of 4/7/26. After closing, the Company will terminate its At-The-Market (ATM) equity program.
Upon closing, the Company expects to have an estimated cash and cash equivalents balance of $130M, including $24M held at the Company's U.K.-based bank, and does not anticipate the need to raise additional capital for the foreseeable future.
Cost Actions; Driving Path to Profitability:
The Company also announced at least $25 million in annualized cost reductions, beginning in Q2 2026. These actions reflect a disciplined review of the Company's cost structure as its AI-driven operating model continues to scale.
The Company has clear line of sight to its target of Adjusted EBITDA breakeven by the end of Q3 2026 as Tinman AI Platform volume expands and grows as a percentage of Loan Volume.
"Strengthening our balance sheet, reducing costs, and focusing our business reflect our commitment to building a more efficient company positioned for long-term growth," said Chief Financial Officer Loveen Advani.
U.K.-Based Bank Active Sale Process:
The Company's U.K.-based bank is currently in an active sale process and will be classified as held for sale effective Q1 2026. The Company believes the bank is well capitalized, does not anticipate any additional funding requirements, and views the sale as an important step in simplifying operations and unlocking shareholder value.
About Better Home & Finance Holding Company
Better Home & Finance Holding Company (NASDAQ:BETR) is the first AI-native mortgage and home equity finance platform, and first fintech to fund more than $110 billion in loan volume. Since 2016, Better has leveraged its industry-leading AI platform, Tinman®, to achieve a singular mission of making homeownership cheaper, faster, and easier for all Americans. Tinman® allows customers to see their rate options in seconds, get pre-approved in minutes, lock in rates, and close their loan in as little as three weeks. In addition, Betsy™, leveraging Tinman MCP, the first AI loan agent built exclusively for the mortgage industry, is revolutionizing the homebuying journey by delivering timely application status updates to consumers, answering questions, and moving their loan application along 24/7/365. Better's mortgage offerings include GSE-conforming mortgage loans, FHA and VA loans, and jumbo and Non-QM mortgage and home equity loans. Better serves customers in all 50 US states and the United Kingdom.
For more information, follow @betterdotcom on Instagram and TikTok and @tinmanAI on X.
Forward-looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements in this press release that are not historical fact should be considered forward-looking statements, including, without limitation, statements and expectations regarding funded loan volume, amount and timing annualized cost savings reduction, the Offering, termination of the ATM, cash and cash equivalents balance, potential sale of the Company's UK-based bank, the Company's reliance on equity financing or capital needs . In some cases, you can identify forward-looking statements by terminology such as "believe," "may," "will," "estimate," "potential," "continue," "anticipate," "intend," "expect," "could," "would," "project," "plan," "target," or the negatives of these terms or variations of them or similar terminology. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual future events to differ materially from those expressed or implied by the forward-looking statements in this communication. These risks and uncertainties included in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as any such factors may be updated from time to time in the Company's other filings with the SEC, which is available, free of charge, at the SEC's website at www.sec.gov. New risks and uncertainties arise from time to time, and it is impossible for Better to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Better undertakes no obligation, except as required by law, to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.
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