Better Home & Finance (BETR) Oppenheimer 27th Virtual Annual Technology, Internet & Communications Conference summary

Market overview and business model

• Operates as a fully digital mortgage and homeownership platform, leveraging proprietary cloud-based technology for end-to-end origination and fulfillment.

• Targets a massive, highly regulated, and traditionally manual U.S. mortgage market, with $2–$4 trillion annual volume.

• 40% of loan volume comes from B2B partnerships, with no direct customer acquisition cost, and the rest from direct-to-consumer channels.

• Sells over 90% of originated loans to government entities, creating a standardized product and enabling technology-driven efficiencies.

• Revenue is generated by originating loans and selling them at a premium to government agencies, with a rapid originate-to-distribute cycle.

Technology and AI initiatives

• Built proprietary Tinman platform, a supervised learning network automating loan processing, underwriting, and fulfillment.

• 84% of loans receive pre-approval within 24 hours; 12% are fully underwritten by AI with no human intervention.

• AI initiatives focus on customer communication, data capture, and routing, with new features planned for Q3 to further improve efficiency.

• Over 50% of employees are based in India, enabled by automation and offshoring of core processing functions.

• Technology investments remain a top capital allocation priority, with ongoing innovation in AI and digital product offerings.

Financial performance and cost management

• Achieved 40%+ quarter-over-quarter growth in volume and revenue from Q1 to Q2, with expenses remaining flat, demonstrating strong operating leverage.

• Ended the quarter with $507 million in liquidity, including cash and short-term investments.

• Reduced run-rate expenses by $1.2 billion since 2022, now operating at about $75 million per quarter including non-cash items.

• Marketing expenses are expected to rise as growth accelerates, while overhead and non-revenue expenses continue to decrease.

• On track to surpass $1 billion in loan volume in Q3, with over $100 billion originated since inception.