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

Better Home & Finance (NASDAQ:BETR) posted its earnings results on Monday. The company reported ($1.93) earnings per share for the quarter, missing the consensus estimate of ($1.44) by ($0.49), FiscalAI reports. The firm had revenue of $45.12 million during 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 traded up $0.91 during mid-day trading on Monday, reaching $20.15. The stock had a trading volume of 390,082 shares, compared to its average volume of 580,472. The firm has a market capitalization of $382.83 million, a price-to-earnings ratio of -1.83 and a beta of 1.66. Better Home & Finance has a twelve month low of $7.51 and a twelve month high of $68.55. The business has a 50 day simple moving average of $13.76 and a 200 day simple moving average of $24.65.

Better Home & Finance News Roundup

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

• Neutral Sentiment: Management described a renewed push to execute its “Better 2.0” strategy and its AI-native mortgage and home equity platform, but the announcement provided no specific performance targets or evidence of improved results. Third-quarter 2026 results
• Negative Sentiment: BETR reported a third-quarter loss of $1.93 per share, missing the consensus estimate of a $1.44 loss by $0.49. Revenue was $45.12 million. The larger-than-expected loss may reinforce concerns about the company’s profitability. Quarterly earnings results
• Negative Sentiment: Multiple law firms publicized a pending securities class action and the November 20 lead-plaintiff deadline. The suit alleges Better reaffirmed a $1.0 billion monthly loan-volume target on March 13, 2026, then deferred it on May 7 after customers stopped converting; one notice says BETR shares fell 28.5% that day. The allegations have not been proven, but litigation creates uncertainty and reputational risk. Class action announcement Lawsuit allegations

Analysts Set New Price Targets

BETR has been the subject of a number of research reports. CLSA upgraded Better Home & Finance to a “buy” rating in a research note on Wednesday, September 9th. Wall Street Zen downgraded shares of Better Home & Finance from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 12th. Weiss Ratings lowered Better Home & Finance from a “sell (d-)” rating to a “sell (e+)” rating in a report on Tuesday, October 27th. BTIG Research cut their price target on Better Home & Finance from $23.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, October 12th. Finally, Canaccord Genuity Group reaffirmed a “buy” rating and set a $42.00 price target on shares of Better Home & Finance in a report on Tuesday, August 4th. Eight equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $24.14.

Insiders Place Their Bets

In other news, General Counsel Paula Tuffin sold 3,108 shares of the firm’s stock in a transaction that occurred on Thursday, September 17th. The stock was sold at an average price of $12.36, for a total value of $38,414.88. Following the completion of the sale, the general counsel directly owned 40,931 shares of the company’s stock, valued at $505,907.16. This trade represents a 7.06% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CTO Jonsson Sigurgeir Orn sold 2,210 shares of Better Home & Finance stock in a transaction that occurred on Thursday, November 5th. The shares were sold at an average price of $18.94, for a total value of $41,857.40. Following the completion of the sale, the chief technology officer owned 9,602 shares in the company, valued at approximately $181,861.88. This trade represents a 18.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 11,170 shares of company stock worth $149,505. Company insiders own 27.72% of the company’s stock.

Hedge Funds Weigh In On Better Home & Finance

A number of institutional investors and hedge funds have recently made changes to their positions in BETR. Bank of New York Mellon Corp increased its holdings in shares of Better Home & Finance by 4.1% in the 1st quarter. Bank of New York Mellon Corp now owns 13,890 shares of the company’s stock valued at $495,000 after purchasing an additional 548 shares in the last quarter. Russell Investments Group Ltd. boosted its holdings in Better Home & Finance by 14.9% during the third quarter. Russell Investments Group Ltd. now owns 4,778 shares of the company’s stock worth $53,000 after buying an additional 618 shares in the last quarter. Royal Bank of Canada grew its position in Better Home & Finance by 1,264.0% during the first quarter. Royal Bank of Canada now owns 2,728 shares of the company’s stock worth $97,000 after buying an additional 2,528 shares during the period. State of Wyoming grew its position in Better Home & Finance by 210.4% during the third quarter. State of Wyoming now owns 9,494 shares of the company’s stock worth $104,000 after buying an additional 6,435 shares during the period. Finally, Walleye Capital LLC purchased a new position in Better Home & Finance in the first quarter valued at about $262,000. 20.94% of the stock is owned by institutional investors and hedge funds.

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.