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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 13, 2024
Better Home & Finance Holding Company
(Exact name of registrant as specified in its charter)
Delaware001-4014393-3029990
(State or other jurisdiction of
incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification
Number)
3 World Trade Center
175 Greenwich Street, 57th Floor
New York,
NY
10007
(Address of principal executive offices) (Zip Code)
(415) 523-8837
Registrant’s telephone number, including area code
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A common stock, par value $0.0001 per shareBETRThe Nasdaq Stock Market LLC
Warrants exercisable for one share of Class A common stock at an exercise price of $11.50BETRWThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02 Results of Operations and Financial Condition.
On May 13, 2024, Better Home & Finance Holding Company (the “Company”) issued a press release announcing the Company’s financial results for the quarter ended March 31, 2024. A copy of the Company’s press release is attached hereto as Exhibit 99.1 to this current report on Form 8-K (this “Report”).
The information in this Item 2.02 and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of the 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Forward-Looking Statements
This Report and the information and documents incorporated by reference herein include “forward-looking statements.” These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements include, without limitation, statements regarding predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this Report, the words “could,” “should,” “will,” “may,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” the negative of such terms and other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Such forward-looking statements are based on management’s current expectations and assumptions about future events and are based on currently available information as to the outcome and timing of future events. Except as otherwise required by applicable law, the Company disclaims any duty to update any forward-looking statements, all of which are expressly qualified by the statements in this section, to reflect events or circumstances after the date of this Report. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Item 9.01     Financial Statements and Exhibits.
(d)    Exhibits:
The following exhibits relating to Item 9.01 shall be deemed to be furnished, and not filed:
ExhibitDescription
99.1
104Cover Page Interactive Data File (formatted as Inline XBRL)


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BETTER HOME & FINANCE HOLDING COMPANY
Date: May 13, 2024By:
/s/ Kevin Ryan
Name:
Kevin Ryan
Title:
Chief Financial Officer



Better Home & Finance Holding Company Announces First Quarter 2024 Results
•Strong quarter with Funded Loan Volume up 25% and Revenue up 26% in Q1’24 as compared to Q4’23
•Maintaining conviction in large addressable market and favorable consumer trends towards digitization and price transparency
•Continued leaning into growth opportunities and expect Q2’24 Funded Loan Volume above $800 million
•Continued strategic investments in Better’s leading proprietary technology platform, Tinman™, to improve mortgage fulfillment efficiency
•Focused on managing towards profitability while growing through improved technology efficiency and corporate cost reductions to offset increased growth expenses
New York, NY – May 13, 2024 – Better Home & Finance Holding Company (NASDAQ: BETR; BETRW) (“Better” or the “Company”), a New York-based digitally native homeownership company, today reported financial results for its first quarter ended March 31, 2024.
“We are pleased to announce strong first quarter sequential funded loan volume and revenue growth, which we believe sets the stage for the continued growth we expect through the rest of 2024. While we believe it is likely the purchase and refinance markets may continue to remain challenging in the near term, we are seeing increased demand from homeowners looking to tap into their home equity, as well as from new homebuyers looking to make a move this purchase season. We expect these green shoot opportunities to help us achieve our growth goals for the year,” said Vishal Garg, CEO and Founder of Better.
First Quarter 2024 Financial Highlights:
GAAP Results:
•Revenue of $22 million, an increase of 26% from $18 million in Q4’23, as presented in our revised financial statement presentation
•Net loss of $51 million, flat from $51 million in Q4’23
•Ended Q1’24 with $509 million of cash, restricted cash, and short-term investments
Key Operating Metrics and Non-GAAP Financial Measures:
•Funded loan volume of $661 million, an increase of 25% from Q4’23, across 1,991 Total Loans
•Purchase loan volume grew 12% quarter-over-quarter and comprised 80% of Funded loan volume; Refinance loan volume grew 232% quarter-over-quarter and comprised 12% of Funded loan volume; and HELOC loan volume grew 54% quarter-over-quarter and comprised the remainder of Funded loan volume
•D2C business comprised 54% of Funded loan volume, with B2B comprising the remainder
•Adjusted EBITDA loss of $31 million, compared to $27 million in Q4’23
“We are excited to report that Better is growing funded loan volume and revenue sequentially while continuing to be laser focused on maximizing operating efficiency. Total Expenses were down by approximately 30% year-over-year in the first quarter, while growing revenue year-


over-year. Going forward, we continue to thoughtfully lean into certain growth expenses to drive increased market share and efficiency, which will be balanced by continued cost discipline to target reaching profitability in the medium term,” said Kevin Ryan, CFO of Better.
First Quarter 2024 Highlights:
•Funded loan volume and revenue growth driven by HELOC and Cash Out Refinance products, with borrowers seeking to tap into their home equity, as well as improved conversion of purchase customers
•Launched Better Home Equity Loan, the latest addition to a suite of digital home equity products including a cash-out refinance and HELOC. The addition of this fully digital offering enables qualified homebuyers to access up to 90% of their home equity as cash at a fixed annual percentage rate
•Total Expenses increased less than Revenue grew quarter-over-quarter, demonstrating that while leaning into certain growth expenses to produce higher volumes, the Company managed other expenses to maintain losses approximately in line quarter-over-quarter
•Shift from fixed compensation plans to commission-based compensation plans for loan officers has yielded positive early results with respect to loan officer productivity and customer conversion
•Hired mortgage industry veteran Chad Smith as President and Chief Operating Officer of Better Mortgage Corporation to drive further growth and efficiency
Amounts presented as of and for the quarter ended March 31, 2024 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the SEC. More information as of and for the quarter ended March 31, 2024 will be provided upon filing our Quarterly Report on Form 10-Q with the SEC.
Webcast
Better will host a live webcast of its earnings conference call beginning at 8:30am ET on May 14, 2024. To access the webcast, or to register to listen to the call by phone, go to the investor relations section of the Company’s website at investors.better.com or click the “Attendee Registration Link” below. Please join the webcast at least 10 minutes prior to start time. A replay will be available on the investor relations website shortly after the call ends.
* Webcast Details *
Event Title: Better Home & Finance Holding Company First Quarter 2024 Results
Event Date: May 14, 2024 08:30 AM (GMT-04:00) Eastern Time (US and Canada)
Attendee Registration Link:
https://events.q4inc.com/attendee/784767542
About Better
Since 2017, Better Home & Finance Holding Company (NASDAQ: BETR; BETRW) has leveraged its industry-leading technology platform, Tinman™, to fund more than $100 billion in mortgage volume. Tinman™ allows customers to see their rate options in seconds, get pre-approved in minutes, lock in rates and close their loan in as little as three weeks. Better’s mortgage offerings include GSE-conforming mortgage loans, FHA and VA loans, and jumbo mortgage loans. Better launched its “One Day Mortgage” program in January 2023, which allows eligible customers to go from click to Commitment Letter within 24 hours. Better was


named Best Online Mortgage Lender by Forbes and Best Mortgage Lender for Affordability by WSJ in 2023, ranked #1 on LinkedIn’s Top Startups List for 2021 and 2020, #1 on Fortune’s Best Small and Medium Workplaces in New York, #15 on CNBC’s Disruptor 50 2020 list, and was listed on Forbes FinTech 50 for 2020. Better serves customers in all 50 US states and the United Kingdom.
Forward-looking Statements
This press release contains certain forward-looking statements within the meaning of federal securities laws. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this communication. Such factors can be found in the Company’s annual report on Form 10-K and the Company’s quarterly reports on Form 10-Q, which are available, free of charge, at the SEC’s website at www.sec.gov. New risks and uncertainties arise from time to time, and it is impossible for Better to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made, and Better undertakes no obligation, except as required by law, to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.

SELECTED FINANCIAL DATA, NON-GAAP MEASURES AND DEFINITIONS
Following are tables that present selected financial data of the Company. Also included are reconciliations of non-GAAP measures to their most comparable GAAP measures and definitions of certain key metrics used herein.


Results of Operations
Three Months Ended March 31,Three Months Ended December 31,
(Amounts in thousands)2024 2023 2023
Revenues:
     
Gain on loans, net
$15,652  $12,761  $8,018
Other revenue
2,817  4,944  2,445
Net interest income
     
Interest income
8,636  6,390  11,025
Interest expense
(4,854) (5,469) (3,815)
Net interest income
3,782  921  7,210
Total net revenues
22,251  18,626  17,673
Expenses:
     
Compensation and benefits
38,073  38,112  25,298
General and administrative
14,047  16,762  17,632
Technology
5,458  14,446  7,473
Marketing and advertising
4,554  7,760  3,599
Loan origination expense
2,577  5,202  (970)
Depreciation and amortization
9,074  11,477  10,100
Other expenses
(183) 11,065  5,946
Total expenses
73,600  104,824  69,077
Loss before income tax expense
(51,349) (86,198) (51,404)
Income tax expense/(benefit)
143  1,424  (533)
Net loss
($51,492) ($87,622) ($50,872)

Summary Condensed Balance Sheet

March 31,December 31,
(Amounts in thousands)20242023
Assets
   
Cash and cash equivalents
$424,528  $503,591
Mortgage loans held for sale, at fair value
166,214 170,150
Other combined assets
250,844 231,813
Total Assets
$841,586  $905,554
Liabilities, Convertible Preferred Stock, and Stockholders’ Equity (Deficit)
   
Liabilities
   
Warehouse lines of credit
$126,161  $126,218
Accounts payable and accrued expenses
55,721 66,558


Convertible Note
514,758 514,644
Other combined liabilities
68,657 75,534
Total Liabilities
765,297 782,954
Stockholders’ Equity (Deficit)
   
Total Stockholders’ Equity (Deficit)
76,289 122,600
Total Liabilities, Convertible Preferred Stock, and Stockholders’ Equity (Deficit)
$841,586  $905,554


Use of Non-GAAP Measures and Other Financial Metrics
We include certain financial measures not presented in accordance with generally accepted accounting principles (“GAAP”) including Adjusted EBITDA, Adjusted Net Income (Loss) and other key metrics.
We calculate Adjusted Net Income (Loss) as net income (loss) adjusted for the impact of stock-based compensation expense, change in the fair value of warrants, change in the fair value of bifurcated derivative, and other non-core operational expenses. We calculate Adjusted EBITDA as net income (loss) adjusted for the impact of stock-based compensation expense, change in the fair value of warrants, change in the fair value of bifurcated derivative, and other non-recurring or non-core operational expenses, as well as interest and amortization on non-funding debt (which includes interest on the Convertible Note (as defined in our Form 10-Q)), depreciation and amortization expense, and income tax expense. These non-GAAP financial measures should not be considered in isolation and are not intended to be a substitute for any GAAP financial measures. These non-GAAP measures provide supplemental information that we believe helps investors better understand our business, our business model and how we analyze our performance. We also believe these non-GAAP financial measures improve investors’ and analysts’ ability to compare our results with those of our competitors and other similarly situated companies, which commonly disclose similar performance measures.
However, our calculation of Adjusted EBITDA and Adjusted Net Income (Loss) may not be comparable to similarly titled performance measures presented by other companies. Further, although we use these non-GAAP measures to assess the financial performance of our business, these measures exclude certain substantial costs related to our business, and investors are cautioned not to use such measures as a substitute for financial results prepared according to GAAP. Non-GAAP financial measures have limitations in their usefulness to investors because they have no standardized meaning prescribed by GAAP and are not prepared under any comprehensive set of accounting rules or principles. As a result, non- GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, our financial results prepared and presented in accordance with GAAP.


Reconciliation of Non-GAAP Metrics



Three Months Ended March 31,Three Months Ended December 31,
(Amounts in thousands)2024 2023 2023
Adjusted Net Loss     
Net (loss) income ($51,492) ($87,622) ($50,872)
Stock-based compensation expense
8,760  4,408  5,694
Change in fair value of warrants and equity related liabilities
(823) —  1,368
Change in fair value of convertible preferred stock warrants
—  (553) —
Change in fair value of bifurcated derivative
—  1,887  —
Restructuring, impairment, and other expenses
721  9,137  5,956
Adjusted Net Loss ($42,834) ($72,743) ($37,853)
Adjusted EBITDA     
Net (loss) income ($51,492) ($87,622) ($50,872)
Income tax expense / (benefit)
143  1,424  (533)
Depreciation and amortization expense
9,074  11,477  10,100
Stock-based compensation expense
8,760  4,408  5,694
Interest and amortization on non-funding debt
2,664  2,690  1,679
Restructuring, impairment, and other expenses
721  9,137  5,956
Change in fair value of warrants and equity related liabilities
(823) —  1,368
Change in fair value of convertible preferred stock warrants
—  (553) —
Change in fair value of bifurcated derivative
—  1,887  —
Adjusted EBITDA ($30,953) ($57,152) ($26,607)


Key Metrics
This press release refers to the following key metrics:
Funded Loan Volume represents the aggregate dollar amount of all loans funded in a given period based on the principal amount of the loan at funding. Purchase Loan Volume represents the aggregate dollar amount of purchase loans funded in a given period based on the principal amount of the loan. Refinance Loan Volume represents the aggregate dollar amount of refinance loans funded in a given period based on the principal amount of the loan. D2C represents the aggregate dollar amount of loans funded in a given period based on the principal amount of the loan at funding that have been generated from direct interactions with customers using all marketing channels other than our B2B partner relationships. HELOC loan volume represents the aggregate dollar amount of HELOC loans funded in a given period based on the principal amount of the loan at funding. B2B represents the aggregate dollar amount of loans funded in a given period based on the principal amount of the loan at funding that have been generated through one of our B2B partner relationships. Total Loans represents the total


number of loans funded in a given period, including purchase loans, refinance loans and HELOC loans.


For Investor Relations Inquiries please email ir@better.com

v3.24.1.1.u2
Cover
May 13, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date May 13, 2024
Entity Registrant Name Better Home & Finance Holding Company
Entity Incorporation, State or Country Code DE
Entity File Number 001-40143
Entity Tax Identification Number 93-3029990
Entity Address, Address Line One 3 World Trade Center
Entity Address, Address Line Two 175 Greenwich Street, 57th Floor
Entity Address, City or Town New York,
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10007
City Area Code 415
Local Phone Number 523-8837
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity Central Index Key 0001835856
Amendment Flag false
Class A common stock, par value $0.0001 per share  
Document Information [Line Items]  
Title of 12(b) Security Class A common stock, par value $0.0001 per share
Trading Symbol BETR
Security Exchange Name NASDAQ
Warrants exercisable for one share of Class A common stock at an exercise price of $11.50  
Document Information [Line Items]  
Title of 12(b) Security Warrants exercisable for one share of Class A common stock at an exercise price of $11.50
Trading Symbol BETRW
Security Exchange Name NASDAQ
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