Better Home & Finance Holding Company Q4 FY2025 earnings call

Partnerships - Credit Karma: Launched a large platform partnership with Intuit Credit Karma, integrating Credit Karma's member data into the Tin Man AI platform. Credit Karma aims to save members $1 trillion in interest savings on mortgages. - NIO: Scaling with NIO's local loan officer teams across the United States, with rapid growth and new loan officer teams onboarded. - Top five U.S. non - bank mortgage loan originator: Went live in February with 2% of loan officers on the Tin Man AI platform, with plans to expand to all loan officers. - Finance of America: Early stages of ramping, launching first HELOC and HELON product offerings powered by Tin Man AI. - ChatGPT: Launched the first conversational credit decision engine for mortgages and home equity loans integrated into ChatGPT, with significant interest from financial institutions. ### Strategic Shift: Transitioning from a direct - to - consumer mortgage business to an AI - native mortgage platform serving the entire mortgage industry. Building on technology, infrastructure, and investor relationships to power partners and enable local retail brokers to scale. ### Financial Efficiency: Tin Man automates up to 80% of repetitive loan production tasks. Cost to process, underwrite, and close a loan (mortgage loans and HELOCs combined) is about $800, far less than the industry average. Working on a secure tokenized credit facility via stablecoin ecosystem to lower funding costs.

In the fourth quarter of 2025, the firm generated $1.5 billion in funded loan volume and $44 million in revenue, with year - over - year increases of 56% in loan volume and 77% in revenue respectively. The Tin Man AI platform generated 646 million in volume in the fourth quarter, representing over 40% of total volume. For the full year 2025, funded loan volume was $4.7 billion and revenue was $165 million, up 32% and 52% year - over - year respectively. The Tin Man AI platform contributed 35% of total funded loan volume in 2025, and the firm expects over 60% of loan volume to come from the Tin Man AI platform in 2026. By product, in the fourth quarter, refinance grew to 8%, purchase increased 22%, and home equity rose 18%. By channel, 44% came through Tin Man AI platform partners and 56% through direct - to - consumer. For full year 2025, 36% came through Tin Man AI platform partners, 62% through direct - to - consumer, and 2% from the former ally partnership. By product mix, fourth quarter was 49% purchase, 37% refinance, 14% home equity; full year 2025 was 61% purchase, 21% refinance, 18% home equity

Loan Volume: Expect $1.4 billion to $1.55 billion in Q1 2026, with the midpoint being a 70% year - over - year growth from Q1 2025. Aim to reach $1 billion in total monthly loan volume by May 2026. ### Profitability: Expect to achieve adjusted EBITDA breakeven by the end of Q3 2026. Driven by volume growth across both the Tin Man AI platform and direct - to - consumer channels, per - loan contribution margin improvement, pricing gains, and corporate cost reductions

Q: About guidance, the guide assumes Q1 loan volume is roughly flat versus Q4, wondering about drivers.

A: Because of seasonality, as shown in the investor deck, comparing Q4 24 to Q1 25 and this year's Q4 25 to Q1 26.

Q: About profitability, current target is to reach adjusted EBITDA profitability by end of Q3 2026, how to think about medium - term and longer - term profitability?

A: First task is to get to profitability by Q3 2026, then evaluate growth opportunities along with incremental positive contribution margin, thinking about contribution margin in range of 10% to 15% to as high as 25% to 30% when evaluating new partnerships.

Q: Partnership metrics suggest massive top of funnel demand, what kind of metrics seen from pre - approvals to funded loan and how it underpins getting to billion dollar target?

A: In D2C business, it's around 5%, on a cohort basis, funding can take place over several months as it's a major transaction for consumers.

Q: About Credit Karma partnership, does it span all mortgage products?

A: Started with refi, then will launch HELOC, then purchase.

Q: About breakeven adjusted EBITDA at end of Q3, can you break down volume contribution from D2C, NEO, and Credit Karma?

A: Tin Man AI platform contribution was 0% in 2024, about 35% in 2025, expecting about 60% of total volume from that platform including Credit Karma, NEO, and other partnerships.

Q: About gain on sale margin declining sequentially in fourth quarter, was it mostly due to higher refinance D2C growth?

A: Yes.

Q: About top three personal lending fintech in pipeline, what's the plan?

A: In beginning, similar to Credit Karma, doing originating, and may be onboarded to balance sheet, with banks having interest in utilizing the platform due to bank capital regulation changes.

Q: About costs to underwrite being lower than industry average, why aren't savings passed on to borrowers?

A: Are passing savings on to borrowers while trying to continue to improve contribution margin on path to profitability, with rates being cheaper on average than average mortgage rate.

Q: About ramp of Tin Man AI platform, where do you see share go as year progresses?

A: Trend shows Tin Man AI platform revenue was 0% in 2024, about 35% in 2025, expected to be around 60% in 2026.

Q: About Credit Karma, how does it help amplify benefits and improve distribution?

A: Integrated into Credit Karma's Lightbox system, with less than 1% penetration of their member base as of March 13th.

Q: About contribution margin of D2C versus partnerships, how does it compare and evolve?

A: Partnership volume is lumpy, and adjusted EBITDA breakeven is based on achieving penetration rates on signed - up partners.

Q: About what differentiates Better in third party infrastructure category from peers?

A: Tin Man allows loans to be sold to a wide network of investors with their own guidelines, and has flexibility in serving various types of loans and customer bases, unlike peers with more proprietary and less customizable components.

Q: About Sky Stablecoin partnership, talk about cost of capital advantage and evolution?

A: Initial funding cost advantage is 100 basis points, and sees mortgage as an under - penetrated asset class among stable coin issuers, expecting long - term 100 basis points of rate reduction for consumers.

Q: About going from $1.5 billion in volume to $3 billion in volume per quarter, what needs to happen?

A: Need to penetrate existing partners more and continue to grow D2C where it makes money.

Q: About ranking of four ramping partnerships in terms of opportunity?

A: Credit Karma is number one, then top five non - bank originator, then FOA and top three leading fintech.

Q: About expanding beyond four partners in 2026?

A: Should see launch of one marquee partner like every quarter and a bunch of smaller partners launch every quarter