Better's Adjusted Ebitda Loss Widens on Proxy Costs

The Tip Desk · November 12, 2026 · 3 min read

Loan volume was $1.40 billion in the third quarter as the company booked a $29.7 million Adjusted EBITDA loss.

Better Home & Finance Holding Company (BETR), the AI-native mortgage and home equity finance company, reported third-quarter loan volume of $1.40 billion, up 15% from $1.21 billion a year earlier and within its prior guidance range.

Total net revenues were $45.1 million, compared with $41.5 million in the third quarter of 2025. The company posted a net loss of $36.5 million, a 7% improvement from a $39.1 million net loss a year earlier.

Adjusted EBITDA loss widened to $29.7 million from $22.9 million a year earlier. The company said the quarter included about $12.8 million of proxy-related legal, public relations and other one-time expenses. Excluding those items, the Adjusted EBITDA loss would have been about $16.8 million, within the previously issued guidance range.

Platform loan volume reached $792 million, a record 57% of loan volume, up from 55% in the second quarter of 2026 and 50% in the first quarter. HELOC loan volume was $263 million, or 19% of loan volume, up from 18% in the second quarter and 12% in the first quarter. Purchase loans were $776 million, or 55.6% of volume; refinance loans were $356 million, or 25.5%; and direct-to-consumer volume was $603 million, or 43%. Total loans were 4,748, compared with 4,086 a year earlier.

Chief Financial Officer Loveen Advani said the company delivered loan volume within its guidance range despite a challenging rate environment, with platform channels contributing 57% of volume and HELOCs representing 19%. She said that with the proxy contest behind it, the company has renewed its focus on profitable growth and operating efficiency, is reducing fixed costs and using AI to improve productivity, and that reaching sustainable Adjusted EBITDA breakeven remains its top financial priority.

Founder and Head of Product Vishal Garg said that during his absence loan officer talk time fell 29% and production hours fell 25% from the January-to-July average in August and September. He said that since his return the company has executed $3.5 million in annualized savings from delayering management and corporate structure, with AI agents and dashboards, and that weekend loan locks doubled from October 24 to October 31 after the introduction of AI lead routing.

The company ended the quarter with $77.5 million of cash and cash equivalents and $12.9 million of restricted cash. It issued fourth-quarter 2026 Adjusted EBITDA-basis operating expenses guidance of $45.0 million to $47.0 million.

After quarter-end, a group led by Garg secured written consents from stockholders representing 52% of outstanding voting power, resulting in the removal of five directors and the interim CEO. The company launched an AI-powered HELOC with a large existing partner and expanded its wholesale platform to 39 signed brokerages, initially focused on HELOCs. Completed actions are expected to deliver $30.4 million in annualized savings toward a $64.2 million target, including reductions in management layers, greater use of AI, and removing vendor spend.