Beeline Holdings, Inc. Q2 FY2025 earnings call

Key Points

• Divested spirits asset, fully focused on digital mortgage lender with proprietary SaaS platform.
• Q2 saw 27% revenue increase and 40% expense decrease when stripping out spirits business.
• Introduced Beeline equity product not tied to interest rates, with first transaction closed, expecting 10-15 more in 30-45 days and larger launch in October.
• AI sales agent Bob saw increased lead conversion and applications; Hive workflow engine enables fast loan closings.
• Paid down $2,700,000 in debt, net loss improved from Q1, aiming for debt-free by Nov 2025 and cash flow positive by Jan 2026.
• Finished Q2 with strongest balance sheet since inception, with $6,300,000 in cash.

Total net revenues for Q2 were $1,700,000. Mortgage activities accounted for over 74% of revenue. Comparing Q1 2025 vs Q2 2025, originations increased by 44%, average revenue per loan decreased by 5%, and title revenue increased by 24%. Comparing Q2 2024 vs Q2 2025, originations rose 6%, average revenue per loan increased 11%, and title revenue jumped 64%.

• Aim to be debt-free by November 1, 2025, and cash flow positive by January 2026.
• Expect monthly operating profitability by early 2026.
• July numbers expected to be the strongest month in over three years, topping April by about 15%.

• Forward-looking statements subject to risks in 2024 Form 10-Ks and prospective supplements.
• New technologies being developed may not work as expected.
• Market challenges due to higher interest rates affecting refinance and purchase transactions.

Q: Glenn Mattson asked about the delay in the Beeline Equity product launch.

A: Nick Laousa said they pushed back the launch to ensure it's done right, doing select transactions to get feedback from customers and make sure it meets the mark when scaling.

Q: Glenn Mattson inquired about profitability assumptions.

A: Nick Laousa mentioned focusing on software maturity, cutting recurring expenses, higher loan locks, and one-time nonrecurring expenses to reach profitability.

Q: Derek Greenberg asked about the economics of the fractional product and growth in 2026.

A: Nick Laousa said margins are higher than mortgage, less underwriting of consumers; growth in 2026 from Beeline Equity, mortgage, and title business. Regarding rate cuts, a 25 basis point cut would have significant impact, with longer rate cuts having a buildup effect.