Better Home & Finance Reports 51.5% Revenue Increase to $47.5 Million in Q1 2026

Better Home & Finance Holding Company reported a significant increase in revenue for the first quarter of 2026, with total net revenues reaching $47.5 million, up from $31.3 million in the same period last year. This 51.5% increase was primarily driven by a 107% rise in gain on loans, net, which amounted to $44.8 million compared to $24.6 million in the prior year. The company also experienced a decrease in net interest income, which fell to $1.6 million from $3.1 million, attributed to higher interest expenses on warehouse lines of credit, which increased significantly due to elevated borrowing levels.

In terms of profitability, Better Home & Finance reported a net loss of $70.3 million for the quarter, compared to a loss of $50.6 million in the first quarter of 2025. The increase in losses was largely due to higher compensation and benefits expenses, which rose by 27% to $55.7 million, as well as a substantial increase in other expenses, which included a $15.5 million impairment charge related to the Birmingham Bank disposal group. The company’s total expenses for the quarter were $98.4 million, up from $77.2 million a year earlier.

Strategically, Better Home & Finance is in the process of divesting its Birmingham Bank operations, which have been classified as discontinued operations. The sale is expected to conclude in 2026, and the results from this segment have been excluded from the current financial metrics. The company has also been focusing on enhancing its technology platform, Tinman, which has been instrumental in increasing its market share and improving operational efficiency.

Operationally, the company reported a total funded loan volume of $1.6 billion for the quarter, a significant increase from $868 million in the previous year. The number of loans funded also rose to 5,018, compared to 2,975 in the same period last year. The company’s market share in the mortgage origination market increased to 0.3%, up from 0.2% in the prior year, reflecting its growing presence in the industry.

Looking ahead, Better Home & Finance anticipates continued challenges due to the current macroeconomic environment, including elevated interest rates and geopolitical uncertainties. However, the company remains focused on leveraging its technology to enhance customer experience and expand its product offerings, particularly in the home equity segment, which tends to perform well in higher-rate environments. The management expressed optimism about restoring growth and improving profitability as market conditions stabilize.