Beeline Holdings, Inc. (BLNE) Earnings

Management highlights

### Strategic Priorities - Aligned on a measured approach amid macroeconomic headwinds including high interest rates, capital market volatility, inflation, and geopolitical uncertainty from the war in Iran - Prioritizes profitable transactions over total origination volume, reduces cost base to extend cash runway, and focuses resources on proven, high-margin business lines - Long-term strategy targets a mix shift toward capital-light, fee-based revenue streams to expand margins and reduce balance sheet risk, with the goal of building a fully integrated housing finance platform ### Core Mortgage Business Updates - Steady momentum through Q1 2026 with a strong March finish, and positive underlying origination trends - Deliberate product mix shift: prioritizes higher-margin DSCR and bank statement loans, intentionally deprioritizes conventional loans where economics are unfavorable; Non-QM volumes remain stable, and borrower credit metrics across the book stay strong - DSCR margins hold steady at ~4%, bank statement loans represent a strong growth opportunity; revenue per loan has increased meaningfully year-over-year, driving early operating leverage - Modest increase in rate term refinance activity late in the quarter following a temporary dip in interest rates ### BeelineEquity Updates - BeelineEquity is a capital-light home equity product launched in partnership with related party TYTL Holdings, offering homeowners access to equity without taking on new debt - Completed and funded first transactions, validated full production workflows, and completed all required infrastructure and integrations; the business has moved from the build phase to scaling mode - BeelineEquity economics: generates ~3.5% of transaction value in fees plus an average of $1,500 per close in Title revenue, with zero balance sheet exposure; unit economics are slightly higher than the core lending business - The product addresses a large untapped market: U.S. homeowners hold ~$35 trillion in inaccessible home equity, and 50-60% of applicants are denied for traditional cash-out refinances or HELOCs; it is not tied to interest rate movements ### Technology and AI Initiatives - Beeline holds a minority interest in MagicBlocks, an AI-driven sales platform that powers Beeline's proprietary AI sales agent Bob; MagicBlocks recently onboarded 4 major lenders including one top 10 U.S. lender, with a growing enterprise pipeline, and management is evaluating the optimal structure for the relationship going forward - Bob the AI chatbot delivers an 8% increase in lead-to-lock conversions when engaged with customers - The new self-service customer application journey has delivered a 131% increase in application-to-lock pull-through, and is being extended to higher-margin loan types to capture maximum operating leverage - Back-office AI workflows are being implemented to reduce closing time and cost to serve ### New Partnerships - Announced a new partnership with Structured Real Estate Group, a Dallas-based homebuilder; expects revenue from the partnership to start in Q3 2026, and the partnership supports a long-term strategy to drive new property transaction volume across Texas, Florida and the Southeast U.S.

Guidance

- The company maintains its long-term target of achieving a $100 million annual revenue run rate by the end of 2027, noting this is a target not a guarantee, with the necessary building blocks in place - Management expects net loss and adjusted EBITDA losses to continue narrowing on a positive trajectory, driven by faster revenue growth than core operating cost growth, improving unit economics, mix shift to higher-margin products, and recently implemented cost reductions - Management is targeting a meaningful reduction in monthly cash burn during 2026, driven by completed and ongoing cost cuts and improving underlying business unit economics; this is a working target not a completed milestone - BeelineEquity is expected to begin moving the needle on financial performance starting in Q3 2026 as scaling ramps up - The company expects to maintain ongoing liquidity flexibility via multiple existing capital levers to fund operations

Segment performance

Total Q1 2026 revenue came in at $2.7 million, more than doubling year-over-year from $1.4 million in Q1 2025. Breakdown by revenue segment: 1. Gain on sale of loans: $1.8 million, representing 66.7% of total Q1 revenue. 2. Mortgage origination fees: $395,000, representing 14.6% of total Q1 revenue. 3. Title services: $380,000, representing 14.1% of total Q1 revenue. 4. BeelineEquity: $50,000, representing 1.9% of total Q1 revenue. 5. Other revenue: $51,000, representing 1.9% of total Q1 revenue. Operating expenses totaled $7.9 million, including $1 million in noncash stock-based compensation. Loss from operations was $5.2 million, with a net loss of $5.3 million, which narrowed year-over-year. Adjusted EBITDA was a loss of $3 million, narrowing 21% from a $3.8 million loss in the prior year period.

Risks & headwinds

- Macroeconomic headwinds: high interest rates, capital market volatility, persistent inflation, and geopolitical uncertainty from the ongoing war in Iran create business and financial uncertainty - There is risk that BeelineEquity's partner TYTL Holdings may be unable to fund its equity transaction commitments - Actual results may differ materially from forward-looking targets and statements due to a range of unforeseen factors, as disclosed in the company's 2025 Form 10-K and March 2026 prospectus supplement - The company operates with negative operating cash flow, and relies on ongoing access to capital markets to fund operations and extend its cash runway - Competition from large incumbent digital mortgage lenders creates pressure on market share and marketing returns in conventional mortgage product lines

Analyst Q&A

• Q: With $1.9 million in ending Q1 cash and a $3 million quarterly adjusted EBITDA loss, can management elaborate on the available capital levers to fund ongoing operations? /

  A: The company has an existing ATM equity facility, an active HELOC arrangement, and access to other equity financing options. Management is debt-avoidant and does not plan to pursue new debt funding, and will use existing equity-focused facilities to fund operations as needed. (193 characters)

• Q: After recent cost reduction initiatives, is the company still on track to hit breakeven and cash flow positive this year, or has the timeline changed? /

  A: Management is both cutting operating costs and actively shifting the business mix to the most profitable loan types (non-QM, bank statement, and DSCR loans), which deliver much higher margins than conventional mortgages. Fewer originations are needed to hit the same revenue target, so the combination of cost cuts and mix acceleration keeps the company on track to reach cash flow positive faster. (328 characters)

• Q: How does Beeline position itself to gain durable market share against large, well-funded incumbent digital mortgage lenders? /

  A: Beeline is focusing on its niche of high-margin DSCR and bank statement loans, which large incumbents like Rocket Mortgage and Better do not broadly offer to consumers. The company is not competing for conventional mortgage volume with large lenders, and earns 40-50% more per transaction on its targeted niche products, while still retaining conventional lending for existing demand without actively marketing it. (325 characters)

• Q: When will BeelineEquity start meaningfully moving the needle financially, what is its customer value proposition, and how will the company reach customers? /

  A: Meaningful financial scale for BeelineEquity is expected to start in Q3 2026. The product serves equity-rich, cash-poor homeowners (mostly retirees) who need cash but do not want to take on new debt; it provides access to equity without requiring repayment, filling a gap for borrowers denied traditional HELOCs/cash-out refis or who do not want expensive reverse mortgages. Beeline will reach customers via digital marketing, wealth advisor partnerships, and targeted relationships with senior-focused organizations. (441 characters)