Better.com Reports 89% Loan Growth, Narrows Losses on AI-Driven Pivot

NEW YORK, NY – May 07, 2026 – Better Home & Finance Holding Company (NASDAQ: BETR) today announced a robust first quarter for 2026, reporting an 89% year-over-year surge in loan volume and a 52% jump in revenue, signaling that its heavy investment in artificial intelligence is paying significant dividends. The AI-native mortgage lender exceeded its own guidance, fueled by the rapid adoption of its proprietary Tinman platform and a strategic pivot toward higher-margin home equity products.

Despite the positive operational momentum, the company's GAAP net loss widened to $70 million, a 39% increase from the prior year, highlighting the ongoing financial pressures as it aggressively pursues growth and a breakeven target for late 2026.

“Q1 2026 was a strong quarter for Better. We grew loan volume 89% year over year and exceeded the high end of our previously-issued guidance with revenue up 52% year over year,” said Vishal Garg, CEO and Founder of Better. He emphasized the role of the company's technology, stating, “Tinman AI platform volume made up 50% of our loan volume, a level we expect to build from.”

AI and Automation Fuel Record Volume

The cornerstone of Better's growth story is its AI-powered infrastructure. The Tinman platform, which automates much of the mortgage origination process, handled $821 million in loan volume during the first quarter, a staggering 404% increase from the same period last year. This technological backbone now accounts for half of all company loan volume, up from just 29% a year ago, demonstrating a clear shift in how the company sources and processes mortgages.

This automation is creating significant operating leverage. While total net revenues climbed 52% to $48 million, total expenses grew at a much slower pace of 27%. This efficiency gain is central to the company’s strategy. “Q1 reflected meaningful progress. Revenue grew 52% year over year while expenses grew only 27%, demonstrating real operating leverage and narrowing our adjusted EBITDA loss by 48% year over year,” said Loveen Advani, CFO of Better.

Complementing the Tinman platform is Betsy, a generative AI loan agent designed to handle customer interactions. In 2025, Betsy managed nearly 100,000 mortgage-related calls per month, saving loan officers thousands of hours and reportedly contributing to a significant reduction in the average cost to originate a loan. The success of this platform strategy is also evident in its partnerships. The company celebrated the one-year anniversary of its partnership with NEO Home Loans, which saw its loan volume run rate nearly double from $1.50 billion to $2.97 billion over the year.

Navigating a High-Rate Market with New Products

Faced with a challenging macroeconomic environment marked by elevated interest rates, Better is strategically shifting its focus. While its refinance loan volume saw explosive 542% year-over-year growth, the company is now leaning into Home Equity Lines of Credit (HELOCs), which comprised 12% of its loan volume in the quarter.

“Going into Q2, the higher-rate macro environment is shifting our mix toward HELOCs, and we are leaning into that shift,” Garg explained. “HELOCs come in at lower loan balance than refinance, but they carry higher gain on sale margins, which is driving meaningful revenue growth in Q2.”

This adaptability is paired with a push into groundbreaking financial products. In March, Better announced a partnership with Coinbase to launch the first crypto-backed mortgage, allowing qualified borrowers to pledge Bitcoin or USDC as collateral for a down payment without selling their assets. The product targets the estimated 52 million Americans who own digital assets, offering a novel path to homeownership. The structure, backed by Fannie Mae, notably protects borrowers from margin calls based on crypto market volatility alone.

Further expanding its product suite, the company also launched the Better Home Equity Card in partnership with Stripe, enabling borrowers to easily draw on their home equity. These initiatives showcase a clear strategy to differentiate itself in a crowded market by catering to underserved and emerging customer segments.

The Difficult Path to Profitability

While the company celebrated a 48% year-over-year improvement in its Adjusted EBITDA loss, which narrowed to $19 million, its complete financial picture remains complex. The GAAP net loss of $70 million, which includes non-cash expenses like stock-based compensation and losses from discontinued operations, widened from a $51 million loss in Q1 2025. This underscores the substantial costs associated with scaling the business and the distance still to travel to achieve true profitability.

Management is taking concrete steps to close this gap. The company recently announced $25 million in annualized cost reductions sourced from corporate overhead and vendor spending. It also strengthened its balance sheet by completing a $69 million public offering and expanding its warehouse capacity to $850 million to support future growth.

With these measures in place, Better has confidently reaffirmed its guidance to achieve Adjusted EBITDA breakeven by the end of the third quarter of 2026. For the upcoming second quarter, the company projects an adjusted EBITDA loss between $12.5 million and $14.0 million on revenues of $53 to $56 million, indicating a continued, steady march toward its goal.

Leadership and Lingering Questions

Driving this ambitious turnaround is CEO Vishal Garg, a founder known for his vision and aggressive execution. However, his leadership has been a source of public controversy. In late 2021, Garg drew widespread condemnation for laying off 900 employees over a Zoom call, a move for which he later apologized. The incident, along with reports of a volatile management style, has shadowed the company's public image.

More recently, in July 2024, a New York jury found Garg liable for breach of fiduciary duty and conversion in a lawsuit related to a previous business venture, ordering him to pay $5.5 million. While Garg denies the allegations and is appealing the verdict, these past events form a complex backdrop to the company's current operational success.

As Better continues on its aggressive growth trajectory, leveraging cutting-edge AI and innovative financial products to capture market share, investors and partners are weighing its impressive performance metrics against the challenges of its financial footing and the history of its leadership. The company's ability to meet its ambitious profitability target in the coming quarters will be the ultimate test of its strategy and resilience.