Better Home & Finance Holding Co.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 14 October 2026: press release. Guidance figures: 4 new. The quarter’s numbers.

Read the filing

Key takeaways

• Loan volume up year over year: Preliminary Loan Volume of $1.395 billion rose 15.3% year over year and fell 16.3% from the second quarter of 2026. Source
• Proxy costs inside EBITDA loss: The preliminary Adjusted EBITDA loss of $24.8 million to $25.8 million includes about $8.0 million of proxy-related legal, PR and other expenses. Source
• EBITDA loss excluding proxy costs: Without those expenses, the Adjusted EBITDA loss would have been about $17.8 million, within the previously issued range. Source
• July volume and revenue cited: Management said July 2026 produced $496 million of volume and $17 million of revenue, and that August and September have historically been stronger months. Source
• Borrowing against bank position planned: Management plans to borrow against its bank position from a party that approached the company, to raise cash and securities above $140 million before the sale closes. Source
• Shift to AI-first operations: Management said it plans to move from a human-powered-by-AI company to an AI-first company, with human engagement only as fallback. Source
• Cost base held before proxy costs: CFO Loveen Advani said that excluding about $8 million of proxy-related expenses, the Adjusted EBITDA loss would have been within guidance, showing the underlying cost base held. Source

“Instead, our Board and Interim CEO diverted the Company’s resources and attention to an unnecessary and self-serving proxy fight”

Vishal Garg, Founder & Head of Product, Platform and Innovation at Better

Guidance

What changed from last quarter

• New: Birmingham Bank sale and interim borrowing plan presented as a Board goal; the earlier release did not mention a bank sale. Source
• New guidance: The release gives a timeframe for Adjusted EBITDA breakeven, the end of the year; the earlier release described a path to breakeven without a date. Source
• New guidance: A cash and securities target above $140 million, to be reached before the bank sale closes, was not in the earlier release. Source
• New guidance: Cost-per-loan targets for mortgages and HELOCs were not in the earlier release. Source
• Ended: Former directors departed, and their unvested equity awards are expected to be forfeited. Source

Third-quarter results

• Loan volume up year over year: Preliminary Loan Volume of $1.395 billion rose 15.3% year over year and fell 16.3% from the second quarter of 2026. Source
• Revenue up year over year: Total Net Revenues of $45.1 million rose 8.6% year over year and fell 17.5% sequentially. Source
• Net loss narrowed versus last year: Preliminary net loss of $33.1 million to $34.1 million narrowed from $39.1 million a year earlier and widened from $30.6 million in the second quarter. Source

Adjusted EBITDA and proxy costs

• Proxy costs inside EBITDA loss: The preliminary Adjusted EBITDA loss of $24.8 million to $25.8 million includes about $8.0 million of proxy-related legal, PR and other expenses. Source
• EBITDA loss excluding proxy costs: Without those expenses, the Adjusted EBITDA loss would have been about $17.8 million, within the previously issued range. Source
• Add-backs in the reconciliation: The reconciliation adds back depreciation and amortization of $2.8 million, stock-based compensation of $2.8 million, and restructuring, impairment and other expenses of $1.1 million. Source

“Our third quarter Loan Volume was within guidance, but revenue came in below our guidance range as interest rate headwinds and the proxy contest weighed on conversion and partner launches”

Loveen Advani, Chief Financial Officer of Better

Demand, conversion and partners

• July volume and revenue cited: Management said July 2026 produced $496 million of volume and $17 million of revenue, and that August and September have historically been stronger months. Source
• Proxy fight cut volume and revenue: Garg said the proxy fight reduced volume and revenue by 13%. Source
• Morale and partner launches slowed: Management said the proxy focus lowered morale, reduced conversion and lengthened partner launch timelines. Source
• Interest rate headwinds cited: Management cited interest rate headwinds, alongside the proxy focus, for revenue below the guidance range. Source

Liquidity and bank holdings

• Cash and restricted cash: Cash and cash equivalents were $81 million and restricted cash $9 million, which management describes as its liquidity position. Source
• Unencumbered UK Bank equity: The company reported an unencumbered tangible equity position of $75 million in the UK Bank. Source
• Borrowing against bank position planned: Management plans to borrow against its bank position from a party that approached the company, to raise cash and securities above $140 million before the sale closes. Source

“We are optimistic that we can get our numbers back to July levels and continue on the path to both growth and Adjusted EBITDA breakeven in the months ahead”

Vishal Garg, Founder & Head of Product, Platform and Innovation at Better

Strategy and AI-first goals

• Shift to AI-first operations: Management said it plans to move from a human-powered-by-AI company to an AI-first company, with human engagement only as fallback. Source
• Board sets three goals: Management listed three Board goals: EBITDA breakeven, the bank sale and the AI-first shift, which it said together would demonstrate the company's technological edge. Source
• Cost-per-loan goal set: The AI-first shift is tied to cost-per-loan targets, which management described as ten times cheaper than the rest of the mortgage industry. Source

Costs and expense plan

• Cost base held before proxy costs: CFO Loveen Advani said that excluding about $8 million of proxy-related expenses, the Adjusted EBITDA loss would have been within guidance, showing the underlying cost base held. Source
• Earlier expense cuts in progress: The earlier release reported $13.2 million of annualized reductions implemented, with a further $51 million targeted, subject to execution.
• October headwinds expected: Management expects proxy contest actions to still weigh on October results. Source

Leadership and board

• Garg says he was removed: Garg said he was fired at the August 3 board meeting, when the company's own projections were still being estimated. Source
• Garg's return described earlier: The earlier release said Garg had returned and was directing energy toward Adjusted EBITDA breakeven; this release gives his title as Founder and Head of Product.
• Interim CEO and proxy fight: The release says the Board and an Interim CEO diverted company resources and attention to the proxy fight. Source

Capital and share repurchases

• Savings to fund buybacks: The earlier release said expense savings would further fund an aggressive stock buyback program.
• Proxy spending called non-accretive: Garg said over $8 million of company cash was spent on matters he described as non-accretive to shareholder value. Source

Coming up, as management said on 14 October 2026

• Adjusted EBITDA breakeven by year-end: Management aims to reach Adjusted EBITDA breakeven by the end of the year, assuming the current rate environment. Source
• Bank sale expected to close: The company expects the Birmingham Bank sale to close in the first quarter of 2027. Source
• November and December expense cuts: Management believes it can cut expenses and improve conversion efficiency in November and December. Source

Figures management reported

Risks management discussed

• Operational: The proxy contest lowered morale and lengthened partner launch timelines, according to management. Source
• Financial: The liquidity plan depends on completing the bank sale and on borrowing against the bank position. Source
• Demand: Management cited interest rate headwinds as a reason revenue was lower. Source
• External: The breakeven target is conditioned on the current rate environment. Source

Earlier plans management reported on

• Met: Loan Volume of $1.395 billion was within the previously issued range. Source
• Met: Excluding about $8 million of proxy-related expenses, the loss would have been within guidance. Source
• Missed: Management stated revenue came in below the previously issued range. Source
• On track: Garg said internal projections at the August 3 board meeting estimated the company was on track to over $1.5 billion of volume. Source
• Delayed: Management stated partner launch timelines were lengthened during the quarter. Source
• Not stated: The earlier release listed completing the interim CEO appointment as a weekly priority; this release does not state its status.
• Not stated: The earlier release said the company expected to be in the market buying stock that week; this release does not address it.
• Not stated: The earlier release set a target of $2.25 million monthly reductions within three weeks; this release does not state progress.

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 results
• Q4 FY2025 results
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.