Beeline Holdings, Inc. Q3 FY2025 earnings call

Management Statement and Operational Highlights

• Beeline Loans Incorporated achieved its first positive cash flow month in October 2025, with monthly closed loan units up 91% since January 2025 while keeping production payroll virtually unchanged.
• Expanded warehouse line capacity from 1 bank with $5 million limit to 3 banks with $25 million total capacity, enabling a monthly origination capacity of ~$75 million.
• AI sales agent Bob has driven a six times increase in lead conversion and an eight times increase in full mortgage applications, operating 24/7/365 at net zero incremental cost.
• Hive workflow engine allows closing loans in 14-21 days, twice as fast as traditional lenders, providing a structural advantage.
• Beeline Title hired an experienced sales executive for third-party marketing to grow the title business.
• Launched fractional equity sale business (Beeline Equity) with high demand, expecting to close ~30 transactions by year-end.

Segment Performance

• Beeline Loans: In Q3 2025, lending originations expanded from $51.9 million in Q2 to $69.8 million, reflecting a >35% quarterly growth. Closed 242 units in Q3, up >29% from Q2's 187. Lending revenue per closed file grew from $6,400 in January to $8,828 in October. Revenue contribution from Beeline Loans was significant, driven by increased demand from targeted marketing and declining rates.
• Beeline Title: Q3 units were 280 vs Q2's 294. October was the strongest month since inception with 106 title closings, generating $175,000 in revenue (45% of Q3 title revenue). Recently hired a title sales executive for third-party marketing to drive growth.
• Beeline Equity: Launched fractional equity sale business. Expect to close approximately 30 transactions by year-end. Average size of equity sale transaction is ~$250,000, with a 3.5% fee plus title fees. High demand for this product, with plans to scale by mid-Q1 2026.

Guidance

• Expect Q4 2025 to comfortably exceed Q3 for both Beeline Loans and Beeline Title.
• Confident in achieving cash flow positive by Q1 2026, eliminating the need to raise capital in 2026 for operations.
• Anticipate continued growth from new products, growing existing loan and title revenues, and controlling expenses to achieve operating profitability.

Risks

• Risk that new technologies being developed may not work as expected.
• Regulatory uncertainties surrounding the Beeline Equity fractional equity sale business.
• Potential vigorous competition in the future, although the large market opportunity is seen as beneficial overall.

Question and Answer

Q: How has the market response to the rate-cutting environment matched, exceeded, or fallen below expectations in terms of demand profile, and is the added warehouse line capacity enough to meet demand?

A: Nick Liuzza noted that rate cuts were expected, and volume was in line with expectations. Chris Moe added that existing and potential warehouse lenders are willing to provide capacity, and the $75 million current capacity will be scaled into as growth continues.

Q: Can you provide more insight into the demand for the cash-out equity business and competition expectations?

A: Nick Liuzza stated there is significant demand, targeting baby boomers with $10 trillion of available equity, and the product is unique with little competition initially. Chris Moe mentioned that while competition is expected by third quarter next year, the large market is beneficial for all, and the product's unique structure (pure fractional sale of equity vs. deed of trust) sets it apart.