Q1 2026 Better Home & Finance Holding Co Earnings Call

May 7, 2026

Speaker #1: Good morning. My name is Aaron, and I'll be your conference operator for today. At this time, I would like to welcome everyone to the Better Home & Finance Holding Co First Quarter 2026 results conference call.

Operator: Good morning. My name is Aaron, I'll be your conference operator for today. At this time, I would like to welcome everyone to the Better Home & Finance Holding Company Q1 2026 Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. At that moment, if you would like to ask a question, simply press star followed by 1 on your telephone keypad. At any point, if you'd like to withdraw your question, simply hit star followed by 1 again. With that, I'm pleased to turn the call over to Tarek Afifi, Senior Corporate Finance and Investor Relations Manager. Tarek, with that, you may begin.

Speaker #1: All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session, and at that moment, if you would like to ask a question, simply press star, followed by the number 1 on your telephone keypad.

Speaker #1: At any point, if you'd like to withdraw your question, simply hit star, followed by the number 1 again. And with that, I'm pleased to turn the call over to Tarek Afifi, Senior Corporate Finance and Investor Relations Manager.

Speaker #1: Tarek, with that, you may begin.

Speaker #2: Welcome to Better Home & Finance Holding Co First Quarter 2026 earnings conference call. My name is Tarek Afifi. I'm Better's corporate finance team. Joining me on today's call are Vishal Garg, founder and chief executive officer of Better; and Levine Advani, chief financial officer of Better.

Tarek Afifi: Welcome to Better Home & Finance Holding Company's Q1 2026 Earnings Conference Call. My name is Tarek Afifi. I'm Better's Corporate Finance team. Joining me on today's call are Vishal Garg, Founder and Chief Executive Officer of Better, and Loveen Advani, Chief Financial Officer of Better. In addition to this conference call, please direct your attention to our Q1 earnings release, which is available on our investor relations website. Also available on our website is an investor presentation. Certain statements we make today may constitute forward-looking statements within the meaning of Federal Securities laws that are based on current expectations and assumptions. These expectations and assumptions are subject to risks, uncertainties, and other factors, as discussed further in our SEC filings, that could cause our actual results to differ materially from our historical results.

Speaker #2: In addition to this conference call, please direct your attention to our First Quarter earnings release, which is available on our investor relations website. Also available on our website is an investor presentation.

Speaker #2: Certain statements we make today may constitute forward-looking statements within the meaning of federal securities laws that are based on current expectations and assumptions. These expectations and assumptions are subject to risks uncertainties and other factors as discussed further in our SEC filings that could cause our actual results to differ materially from our historical results.

Speaker #2: We assume no responsibility to update forward-looking statements other than as required by law. During today's discussion, management will discuss certain non-GAAP financial measures, which we believe are relevant in assessing the company's financial performance.

Tarek Afifi: We assume no responsibility to update forward-looking statements other than as required by law. During today's discussion, management will discuss certain non-GAAP financial measures which we believe are relevant in assessing the company's financial performance. These non-GAAP financial measures should not be considered replacements for and should be read together with our GAAP results. These non-GAAP financial measures are reconciled to GAAP financial measures in today's earnings release and investor presentation, both of which are available on the investor relations section of Better's website and when filed in our quarterly report on Form 10-Q with the SEC. More information as of and for the period ended 31 March 2026 will be provided upon filing our quarterly report on Form 10-Q with the SEC. I will now turn the call over to Vishal.

Speaker #2: These non-GAAP financial measures should not be considered replacements for and should be read together with our GAAP results. These non-GAAP financial measures are reconciled to GAAP financial measures, and today's earnings release and investor presentation.

Speaker #2: Both of which are available on the investor relations section of Better's website, and when filed in our quarterly report on Form 10-Q with the SEC.

Speaker #2: More information as of and for the period ended March 31st, 2026, will be provided upon filing our quarterly report on Form 10-Q with the SEC.

Speaker #2: I will now turn the call over to Vishal.

Speaker #1: Thank you, Tarek. Good morning, everyone. Q1 was a strong quarter for Better. We generated approximately $1.64 billion in funded loan volume, exceeding the high end of our prior guidance, and growing funded loan volume approximately 89% year over year.

Vishal Garg: Thank you, Tara. Good morning, everyone. Q1 was a strong quarter for Better. We generated approximately $1.64 billion in funded loan volume, exceeding the high end of our prior guidance and growing funded loan volume approximately 89% year-over-year. Revenue from continuing operations grew approximately 52% year-over-year to forty-seven and a half million. Our adjusted EBITDA loss was approximately $19 million, which was a 48% improvement year-over-year. Just as importantly, we continued scaling the Tinman AI platform and expanding our partnership ecosystem, which remain the core drivers of our long-term strategy. Before discussing product innovation and partnerships, I want to address the macro environment directly and explain how we are thinking about the business in the current rate debt backdrop.

Speaker #1: Revenue from continuing operations grew approximately 52% year over year, to $47.5 million. And our adjusted EBITDA loss was approximately $19 million, which was a 48% improvement year over year.

Speaker #1: Just as importantly, we continued scaling the Tin Man AI platform and expanding our partnership ecosystem, which remain the core drivers of our long-term strategy.

Speaker #1: Before discussing product innovation and partnerships, I want to address the macro environment directly and explain how we are thinking about the business in the current rate backdrop.

Speaker #1: The company entered 2026 with strong momentum, generating funded loan volume of $450 million, $521 million, and $673 million in January/February and March, respectively. A month over month growth of 16% and 29% in February and March.

Vishal Garg: The company entered 2026 with strong momentum, generating funded loan volume of $450 million, $521 million, and $673 million in January, February, and March, respectively. Month-over-month growth of 16% and 29% in February and March. What's more, in late April, pre-approval volume for our biggest Tinman AI platform partner went from approximately $100 million per day in pre-approved customer volume to over $200 million per day in pre-approved customer volume. That being said, the prolonged conflict in the Middle East has started to show a market impact on interest rates across the mortgage industry, with rates for consumers on our platform growing from 5.75% to well over 6.5% in the last few weeks.

Speaker #1: What's more, in late April, pre-approval volume for our biggest Tin Man AI platform partner went from approximately $100 million per day in pre-approved customer volume to over $200 million per day in pre-approved customer volume.

Speaker #1: That being said, the prolonged conflict in the Middle East has started to show a market impact on interest rates across the mortgage industry. With rates for consumers on our platform growing from 5.75% to well over 6.5% in the last few weeks.

Speaker #1: And this is causing consumers to get stuck in the middle of the funnel. Hesitating to lock at a higher rate, particularly if they feel the rate increase is temporary due to the situation in the Middle East.

Vishal Garg: This is causing consumers to get stuck in the middle of the funnel, hesitating to lock at a higher rate, particularly if they feel the rate increase is temporary due to the situation in the Middle East. With our partners' help, we are converting some of these customers who need cash now to HELOCs. For those looking just for savings per month, we are in a waiting pattern where we will go back to them with a lock as soon as rates come back down. The bad news is that conversion rates are down from where they were in Q1 due to macro factors. The good news is that partner volume continues to increase dramatically as the partner opens us up to a broader section of their customer base and products.

Speaker #1: With our partners' help, we are converting some of these customers who need cash now to HELOCs. But for those looking just for savings for months, we are in a waiting pattern where we will go back to them with a lock as soon as rates come back down.

Speaker #1: So the bad news is that conversion rates are down from where they were in Q1 due to macro factors. The good news is that partner volume continues to increase dramatically as the partner opens us up to a broader section of their customer base and products.

Speaker #1: Despite the macro noise, we are structurally better positioned than most mortgage platforms for three reasons. Our partnership model creates structurally lower customer acquisition costs and scalable distribution, and doesn't require us to spend money upfront, which then can get hung up when conversion cycles bloat during volatile market periods.

Vishal Garg: Despite the macro noise, we are structurally better positioned than most mortgage platforms for three reasons. Our partnership model creates structurally lower customer acquisition costs and scalable distribution and doesn't require us to spend money upfront, which then can get hung up when conversion cycles blow during volatile market periods. Tinman AI continues to improve conversion efficiency and operating leverage. Our diversified product mix spans across purchase, refi, and HELOC, and when refis become more difficult, we can convert a segment of those into HELOCs, which is a tool we didn't have in prior rate cycles. That positioning is reflected in our Q2 guidance. We expect funded loan volume of approximately $1.65 billion, representing approximately 37% year-over-year growth, slower than what we had originally anticipated going into Q2.

Speaker #1: Tin Man AI continues to improve conversion efficiency and operating leverage. Our diversified product mix spans across purchase, refi, and HELOC. And when refis become more difficult, we can convert a segment of those into HELOCs, which is a tool we didn't have in prior rate cycles.

Speaker #1: That positioning is reflected in our Q2 guidance. We expect funded loan volume of approximately $1.65 billion, representing approximately 37% year over year growth. Slower than what we had originally anticipated going into Q2.

Speaker #1: Importantly, while funded loan volumes are expected to remain approximately flat sequentially, revenue is still expected to grow meaningfully due to continued makeshift towards higher margin HELOC products.

Vishal Garg: Importantly, while funded loan volumes are expected to remain approximately flat sequentially, revenue is still expected to grow meaningfully due to continued mix shift towards higher margin HELOC products. We currently expect approximately 15% sequential revenue growth in Q2, which we believe is an important signal that the strategy works and the platform works despite the macro backdrop. We also continue to believe the business is positioned for substantial operating leverage as volumes recover. At the same time, we wanna be direct with investors. The timing on when we achieve our $1 billion monthly funded volume target will depend in part on the rate environment. It looked highly doable this time last month, right now, sitting for this month, it looks like it's gonna be deferred.

Speaker #1: We currently expect approximately 15% sequential revenue growth in Q2, which we believe is an important signal that the strategy works and the platform works despite the macro backdrop.

Speaker #1: We also continue to believe the business is positioned for substantial operating leverage as volumes recover. At the same time, we want to be direct with investors.

Speaker #1: The timing on when we achieve our $1 billion monthly funded volume target will depend in part on the rate environment. It looked highly doable this time last month.

Speaker #1: And right now, sitting for this month, it looks like it's going to be deferred. The long-term trend remains intact, but near-term visibility continues to be impacted by macro volatility and what that does to consumer benefit on a refi.

Vishal Garg: The long-term trend remains intact, but near-term visibility continues to be impacted by macro volatility and what that does to consumer benefit on a refi. That said, if rates improve meaningfully, we believe the lead funnel is already in place and positions us to accelerate towards that target relatively quickly. Regardless of the environment, we continue to execute aggressively. In April, we announced a series of deliberate steps to strengthen operations and continue our progress towards profitability. These actions are on track and are even more important against the backdrop I just described. First, we are removing at least $25 million of annualized costs from our operations beginning in Q2 2026. Second, we expanded our total warehouse capacity by 48% to $850 million since the start of Q1.

Speaker #1: That said, if rates improve meaningfully, we believe the lead funnel is already in place and positions us to accelerate towards that target relatively quickly.

Speaker #1: Regardless of the environment, we continue to execute aggressively. In April, we announced a series of deliberate steps to strengthen operations and continue our progress towards profitability.

Speaker #1: These actions are on track and are even more important against the backdrop I just described. First, we're removing at least $25 million of annualized costs from our operations beginning in Q2 2026.

Speaker #1: Second, we expanded our total warehouse capacity by 48% to 850 million dollars. Since the start of Q1. And third, in early April, we raised $69 million in equity that further strengthened liquidity and operational flexibility.

Vishal Garg: Third, in early April, we raised $69 million in equity that further strengthened liquidity and operational flexibility. All of these actions, along with greater focus on AI efficiencies, deep cuts in corporate overhead, and the adjusted revenue growth, and the change in the mix to HELOCs versus refis means we remain in sight of the target of adjusted EBITDA breakeven by the end of Q3 2026. Turning to partnerships. Our Credit Karma, Finance of America, and top five non-bank originator partnerships are all live and ramping. These partnerships are especially important because they leverage existing customer ecosystems rather than paid acquisition channels. For example, an increasing portion of Credit Karma's 140 million members are exposed to Credit Karma Home Loans powered by Better at zero upfront cap to us. We believe that structural cap advantage will become increasingly important as the industry consolidates.

Speaker #1: All of these actions along with greater focus on AI efficiencies deep cuts in corporate overhead, and the adjusted revenue growth, and the change in the mix to HELOCs versus refis means we remain in sight of the target of adjusted EBITDA breakeven by the end of Q3 2026.

Speaker #1: Turning to partnerships, our credit karma finance of America and top five non-bank originator partnerships are all live and ramping. These partnerships are especially important because they leverage existing customer ecosystems rather than paid acquisition channels.

Speaker #1: For example, an increasing portion of credit karma's $140 million members are exposed to credit karma home loans powered by better at zero upfront cap to us.

Speaker #1: We believe that structural CAC advantage will become increasingly important as the industry consolidates. In late January, we marked the one year anniversary of from a 1.5 billion dollar run rate at onboarding to 2.9 billion in March 2026.

Vishal Garg: In late January, we marked the one year anniversary of our partnership with NEO Home Loans. NEO Home Loans grew from a $1.5 billion run rate at onboarding to $2.9 billion in March 2026. Our Tinman AI platform generated approximately $821 million in funded loan volume during Q1, accounting for approximately 50% of total funded loan volume, up from 44% in Q4. That progression is important. Tinman represented 0% of funded loan volume in 2024, approximately 36% in full year 2025, and now approximately half. Total funded loan volume. We expect that percentage to continue increasing in the coming quarters ahead. Now to product innovation. We had two recent launches I wanna highlight, both of which serve buyers in this environment. Last week, we announced the launch of the Better Home Equity Card in partnership with Stripe.

Speaker #1: Our Tin Man AI platform generated approximately $821 million in funded loan volume during Q1, accounting for approximately 50% of total funded loan volume. Up from 44% in Q4.

Speaker #1: That progression is important. Tin Man represented 0% of funded loan volume in 2024, approximately 36% in full year 2025, and now approximately half of total funded loan volume.

Speaker #1: We expect that percentage to continue increasing in the coming quarters ahead. Now to product innovation. We had two recent launches I want to highlight, both of which serve buyers in this environment.

Speaker #1: Last week, we announced the launch of the Better Home Equity Card in partnership with Stripe. The card is a MasterCard linked to a better HELOC, letting customers spend funds drawn from their line with a single swipe.

Vishal Garg: The card is a Mastercard linked to a Better HELOC, letting customers spend funds drawn from their line with a single swipe. Even more customers get 1% cashback on all spend, which further lowers their total cost of financing and extends their stickiness in the Better ecosystem from a one-time transaction to a 30-year relationship. We believe HELOC demand remains durable across rate environments, this product materially simplifies homeowner access to instant long-term liquidity against the value of their home. In March, we also launched the first Fannie Mae-eligible token-backed mortgage in partnership with Coinbase. Qualified customers of Coinbase can pledge Bitcoin or USDC as collateral to fund their down payment without liquidating their holdings, triggering a taxable event. We have a large pipeline of Coinbase customers who are signed up on waitlists for the official commercial release of the product in Q2.

Speaker #1: Even more, customers get 1% cash back on all spend, which further lowers their total cost of financing and extends their stickiness in the better ecosystem from a one-time transaction to a 30-year relationship.

Speaker #1: We believe HELOC demand remains durable across rate environments and this product materially simplifies homeowner access to instant long-term liquidity against the value of their home.

Speaker #1: In March, we also launched the first Fannie Mae eligible token back mortgage in partnership with Coinbase. Qualified customers of Coinbase can pledge Bitcoin or USDC as collateral to fund their down payment without liquidating their holdings, triggering a taxable event.

Speaker #1: We have a large pipeline of Coinbase customers who are signed up on waitlists for the official commercial release of the product in Q2. We see digital assets increasingly becoming part of mainstream consumer finance infrastructure, and we intend for better to lead that transition inside mortgage origination to leverage DeFi technology to fundamentally lower the interest rates on home finance products for consumers.

Vishal Garg: We see digital assets increasingly becoming part of mainstream consumer finance infrastructure, and we intend for Better to lead that transition inside mortgage origination to leverage DeFi technology to fundamentally lower the interest rates on home finance products for our consumers. We believe the foundation is now in place for Better across our tech platform. Our distribution partnerships, our product expansion, and our cost structure and the proof points are becoming visible in revenue growth and path to profitability insight despite a choppy macro environment. With that, I'll turn it over to Udit.

Speaker #1: We believe the foundation is now in place for better across our tech platform. Our distribution partnerships, our product expansion, and our cost structure and the proof points are becoming visible in revenue growth and path to profitability insight despite a choppy macro environment.

Speaker #1: With that, I'll turn it over to Levine. Thank you, Vishal. The Q1 financials reflect continued progress and growing operating leverage from our platform and improving efficiency in our business model.

Loveen Advani: Thank you, Vishal. The Q1 financials reflect continued progress and growing operating leverage from our platform and improving efficiency in our business model. Funded loan volume grew approximately 89% year over year to $1.64 billion, while revenue from continuing operations increased approximately 52% year over year to $47.5 million. Importantly, total expenses grew approximately 27% year over year. That spread between revenue growth and expense growth reflects the operating leverage embedded within the Tinman AI platform. As Tinman AI volumes scale, revenue growth outpaces headcount and infrastructure growth. In Q1 2026, our adjusted EBITDA loss was approximately $19 million. That's a 48% improvement year over year and a 16% improvement quarter over quarter.

Speaker #1: Funded loan volume grew approximately 89% year over year to $1.64 billion, while revenue from continuing operations increased approximately 52% year over year to $47.5 million.

Speaker #1: Importantly, total expenses grew approximately 27% year over year. That spread between revenue growth and expense growth reflects the operating leverage embedded within the Tin Man AI platform.

Speaker #1: As Tin Man AI volumes scale, revenue growth outpaces headcount and infrastructure growth. In Q1 2026, our adjusted EBITDA loss was approximately $19 million. That's a 48% improvement year over year and a 16% improvement quarter over quarter.

Speaker #1: Looking at product trends in Q1, refinance grew 542% year over year, home equity grew 30% year over year, and purchase grew 2% year over year.

Loveen Advani: Looking at product trends in Q1, refinance grew 542% year-over-year, home equity grew 30% year-over-year, and purchase grew 2% year-over-year. By product mix, 52% of funded loan volume in Q1 was refinanced, 36% was purchase, and 12% was home equity. By channel, approximately half of funded loan volume in Q1 came through the Tinman AI platform and the other half through direct-to-consumer. As Vishal discussed, we're starting to see the impact of the prolonged conflict in the Middle East on rates. However, one of the most important dynamics in our model today is mix shift. HELOC products carry materially higher gain on sale economics, which allows revenue growth to outperform funded volume growth, which is reflected in our Q2 guidance.

Speaker #1: By product mix, 52% of funded loan volume in Q1 was refinanced, 36% was purchased, and 12% was home equity. By channel, approximately half of funded loan volume in Q1 came through the Tin Man AI platform, and the other half through direct to consumer.

Speaker #1: As Vishal discussed, we're starting to see the impact of the prolonged conflict in the Middle East on rates. However, one of the most important dynamics in our model today is mix shift.

Speaker #1: HELOC products carry materially higher gain-on-sale economics. Which allows revenue growth to outperform funded volume growth. Which is reflected in our Q2 guidance. In Q2, we expect funded loan volume of $1.575 billion to $1.725 billion, of which the midpoint represents 37% growth year over year.

Loveen Advani: In Q2, we expect funded loan volume of $1.575 to 1.725 billion, of which the midpoint represents 37% growth year over year. We expect total net revenues of $53 to 56 million, of which the midpoint represents 28% growth year over year. We also expect an adjusted EBITDA loss in the range of $12.5 to 14 million, of which the midpoint represents 42% improvement year over year. Importantly, we continue making progress on our path towards breakeven while simultaneously strengthening the balance sheet and improving liquidity. We previously announced at least $25 million of analyzed cost reductions beginning in Q2. These reductions are underway and include lower corporate overhead, vendor rationalization, and the planned divesture of our UK bank.

Speaker #1: We expect total net revenues of $53 million to $56 million, of which the midpoint represents 28% growth year over year. We also expect an adjusted EBITDA loss in the range of $12.5 million to $14 million, of which the midpoint represents 42% improvement year over year.

Speaker #1: Importantly, we continue making progress on our path towards breakeven while simultaneously strengthening the balance sheet and improving liquidity. We previously announced at least $25 million of analyzed cost reductions beginning in Q2.

Speaker #1: These reductions are underway, and include lower corporate overhead, vendor rationalization, and the planned investure of our UK bank. On the balance sheet, we ended Q1 2026 with approximately $136 million of liquidity, which includes cash and cash equivalents, restricted cash, and net assets held for sale.

Loveen Advani: On the balance sheet, we ended Q1 2026 with approximately $136 million of liquidity, which includes cash and cash equivalents, restricted cash, and net assets held for sale. This does not reflect our recent capital raise of $69 million, which closed after quarter end. We believe the balance sheet today is materially stronger and appropriately positioned to support our path towards profitability. In addition, we expanded warehouse capacity from approximately $575 million at year-end to approximately $850 million today, representing a 48% increase. That expansion reflects both lender confidence in our platform and the infrastructure required to support future partnership growth. As Vishal discussed earlier, based on our current operating structure and ongoing cost initiatives, we remain focused on adjusted EBITDA breakeven by the end of Q3.

Speaker #1: This does not reflect our recent capital raise of $69 million which closed after quarter end. We believe the balance sheet today is materially stronger and appropriately positioned to support our path towards profitability.

Speaker #1: In addition, we expanded warehouse capacity from approximately 575 million at year-end to approximately 850 million today, representing a 48% increase. That expansion reflects both lender confidence in our platform and the infrastructure required to support future partnership growth.

Speaker #1: As Vishal discussed earlier, based on our current operating structure and ongoing cost initiatives, we remain focused on adjusted EBITDA breakeven by the end of Q3.

Speaker #1: The timing for reaching that level will depend in part on the macro environment and the pace of rate normalization. But the operating model continues to move in the right direction.

Loveen Advani: The timing for reaching that level will depend in part on the macro environment and the pace of rate normalization, but the operating model continues to move in the right direction. We believe Better today is materially more efficient, more diversified, and more scalable than it was even 12 months ago. With that, I'll turn back to the operator for Q&A.

Speaker #1: We believe better today is materially more efficient, more diversified, and more scalable than it was even 12 months ago. With that, I'll turn back to the operator for Q&A.

Speaker #2: Thank you. Ladies and gentlemen, once again, if you would like to ask a question today, remember it's star followed by the number one in your telephone keypad.

Operator: Thank you. Ladies and gentlemen, once again, if you would like to ask a question today, remember it's star 1 in your telephone keypad. Our first question for today comes from the line of Kyle Peterson with Needham. Your line is live.

Speaker #2: Our first question for today comes from the line of Kyle Peterson with Needham. And your line is live?

Speaker #3: Great. Good morning, guys. Thank you for taking the questions. I guess just wanted to first start off and clarify a couple of the moving pieces.

Kyle Peterson: Great. Good morning, guys. Thank you for taking the questions. You know, I guess just wanted to first start off and clarify a couple of the moving pieces in the guide. I guess, one, have you guys assumed that the macro and kind of this frozen pipeline due to some of the Middle East tensions, have you assumed any improvement or resolution in, you know, the back half of the quarter or more of a status quo? I guess also, could you guys just give us a quick reminder on some of the relative gain on sale rates, specifically on the HELOC side? Obviously, it seems like that's really offsetting some of the volume difference, but I think a reminder there would be helpful for everyone on the call.

Speaker #3: In the guide, I guess one have you guys assumed that the macro and kind of this frozen pipeline due to some of the Middle East tensions have you assumed any improvement or resolution in the back half of the quarter or more of a status quo and then, I guess, also could you guys just give us a quick reminder on some of the relative gain-on-sale rates specifically on the HELOC side?

Speaker #3: Obviously, it seems like that's really offsetting some of the volume difference, but I think a reminder there would be helpful for everyone on the call.

Vishal Garg: Sure. I mean, we are assuming no resolution. I think we've been very conservative with respect to what we're guiding towards, because going into April, we knew that volume top of funnel was about to almost double. Going into April, we were very confident in the number that we were quoting, which was $1 billion of volume. Then, you know, the rate spike, the escalation in the Middle East, basically all that new volume came top of funnel. I think we shared that it went from about $100 million a day top of funnel for pre-approval volume to $200 million a day in the back half of April. Those customers are not converting at nearly the same rate.

Speaker #2: Sure. I mean, we are assuming no resolution. And so I think we've been very conservative with respect to what we're guiding towards because going into April, we knew that volume top of funnel was about to almost double.

Speaker #2: And going into April, we were very confident in the number that we were quoting, which was a billion dollars of volume. And then the rate spike, the escalation in the Middle East, basically all that new volume came top of funnel.

Speaker #2: I think we shared that it went from about 100 million dollars a day top of funnel for pre-approval volume to 200 million dollars a day in the back half of April.

Speaker #2: But those customers are not converting at nearly the same rate. We're converting a bunch of them to HELOCs. But a bunch of them that come in just to do a rate term refi, or do a debt consolidation to bring down all the rates, they're going to save more if they waited out than they would getting into it right now.

Vishal Garg: We're converting a bunch of them to HELOCs, but a bunch of them that come in just to do a rate term refi or do a debt consolidation to bring down all the rates, they're gonna save more if they wait it out than they would getting into it right now. We have to give them the right advice for them, and that's what we've always done, prioritize the long term over the short term. That's what we're doing. We think that that's a coiled spring for when things die down in the Middle East, you're gonna see some bumper months, as we convert all those customers who are effectively on a wait list to lock, when rates come back down.

Speaker #2: And so we have to give them the right advice for them. And that's what we've always done. Prioritize the long term over the short term.

Speaker #2: So that's what we're doing. And we think that that's a coiled spring for when things die down in the Middle East, you're going to see some bumper months as we convert all those customers who are effectively on a waitlist to lock when rates come back down.

Speaker #2: On the gain-on-sale, HELOCs are averaging between 6 to 7 points total gain-on-sale in combination of origination fees and gain-on-sale premium. Whereas traditionally, mortgage on D2C has averaged 2 and a half points.

Vishal Garg: On the gain on sale, HELOCs are averaging between 6 to 7 points, total gain on sale, you know, in combination of origination fees and gain on sale premium. Whereas, traditionally, mortgage on D2C has averaged 2.5 points, and on NEO has averaged 3.5 points.

Speaker #2: And on NEO has averaged 3 and a half points.

Speaker #3: Okay. That's really helpful. And then I guess a follow-up on the HELOC card, initiative that you guys have launched, that seems like a really interesting product.

Kyle Peterson: Okay. That's really helpful. I guess a follow-up on the HELOC card initiative that you guys have launched. That seems, you know, like a really interesting product. I guess, how are you guys thinking about when that goes live later this year, you know, ways whether that increases engagement, gives you a competitor edge or monetization opportunities? Just any more color there on how you think that fits in and could potentially help you guys kinda continue to accelerate growth in HELOCs would be great.

Speaker #3: I guess how are you guys thinking about when that goes live later this year, ways where that increases engagement, gives you a competitor edge, or monetization opportunities, just any more color there on how you think that fits in and could potentially help you guys kind of continue to accelerate growth in HELOCs would be great.

Speaker #2: Yeah. So I think there are many utility functions of the home card. The first utility function is it tracks all your home spend. So it helps you effectively monitor that.

Vishal Garg: Yeah. I think there are many utility functions of the home card. The first utility function is it tracks all your home spend. It helps you effectively monitor that and, you know, it provides discounts on things that you use for your home. Two, you get 1% cashback. For a customer, you know, they're effectively getting their rate or fees bought down as a result of that 1% cashback.

Speaker #2: And it provides discounts on things that you use for your home. Two, you get 1% cash back. So for a customer, they're effectively getting their rate or fees bought down as a result of that 1% cash back.

Vishal Garg: 3, it creates a 30-year relationship with the consumer for us, versus having a 1-time transaction, which means that recurring refis for that consumer, cash out refis, will be, you know, nearly system instant and super, you know, creates a super engaged customer base for which then we can market other products like what we've done with homeowners insurance, which typically comes up for renewal every year, life insurance, any of these other products that we've traditionally had, we can then have an always-on relationship with the consumer versus a once every 3, 5, 7-year relationship with the consumer. I think it moves into, basically Better being a home finance, home operating system for the consumer rather than just a 1-time home transaction system. We think that our partners have already started asking for it.

Speaker #2: Three, it creates a 30-year relationship with the consumer for us versus having a one-time transaction, which means that recurring refis for that consumer cash out refis will be nearly instant.

Speaker #2: And super creates a super engaged customer base, for which then we can market other products like what we've done with homeowners insurance, which typically comes up for renewal every year, life insurance, any of these other products that we've traditionally had, we can then have an always-on relationship with the consumer versus a once every three, five, seven-year relationship with the consumer.

Speaker #2: I think it moves into basically better being a home finance, home operating system for the consumer. Rather than just a one-time home transaction system.

Speaker #2: And we think that our partners have already started asking for it. It's just another really good way for our partner to service their customer and maintain that.

Vishal Garg: It's just another really good way for a partner to service their customer and maintain that. A number of our partners are already asking us to replicate what we're doing internally for our D2C business for that. It gives us another feather in our CAC when we go and pitch HELOCs or home equity as a service to other companies or mortgage as a service to other companies.

Speaker #2: So a number of our partners are already asking us to replicate what we're doing internally for our D2C business for that. So it gives us another feather in our cap when we go and pitch HELOCs or home equity as a service to other companies or mortgage as a service to other companies.

Speaker #3: It's very helpful. Thank you for all the color.

Kyle Peterson: It is very helpful. Thank you for all the color.

Speaker #2: Thank you for your questions. Our next question is from the line of Ramzi El-Assal with Cantor Fitzgerald. Your line is live.

Operator: Thank you for your questions. Our next question is from the line of Ramzi Elissa with Cantor Fitzgerald. Your line is live.

Speaker #4: Hi, good morning. And thanks for taking my questions. Has the more challenging macro backdrop caused any slowdown in your partnership discussions or partnership pipeline conversion?

Ramzi Elissa: Hi, good morning, and thanks for taking my question. Has the more challenging macro backdrop caused any slowdown in your partnership discussions or partnership pipeline conversion?

Ramsey El-Assal: Hi, good morning, and thanks for taking my question. Has the more challenging macro backdrop caused any slowdown in your partnership discussions or partnership pipeline conversion?

Speaker #2: I think it's accelerated it, especially within the traditional mortgage broker and retail mortgage lender channel. A lot of people were hoping 26 was the year that they were going to thrive in.

Vishal Garg: I think it's accelerated it, especially within the traditional mortgage broker and retail mortgage lender channel. A lot of people were hoping 2026 was the year, that they were gonna thrive in, and it's looking like with the Middle East conflict, things are tougher. More and more banks are still looking to get into the business. Of course, the Middle East conflict and higher elevated rates and oil prices has an impact on the number of customers eligible for a refi, but it has an even bigger impact on unsecured consumer credit. We're starting to see a lot of inbound from other fintechs, other large consumer credit companies to pivot from their traditional unsecured offerings into a secured offering like a HELOC.

Speaker #2: And it's looking like with the Middle East conflict, things are tougher. So more and more banks are still looking to get into the business.

Speaker #2: Of course, the Middle East conflict and higher elevated rates and oil prices has an impact on the number of customers eligible for a refi.

Speaker #2: But it has an even bigger impact on unsecured consumer credit. And so we're starting to see a lot of inbound from other fintechs, other large consumer credit companies to pivot from their traditional unsecured offerings into a secured offering like a HELOC.

Speaker #4: Okay. And I just was could you also comment on the loan mix between Tin Man and Direct and kind of how the changing environment might play out in terms of your target there?

Ramzi Elissa: Okay. Could you also comment on the loan mix between, you know, Tinman and direct and kind of how the changing environment might, you know, play out in terms of your target there? I think it was 60% Tinman by the end of the year. I was just curious if the changing backdrop here has any impact on that target.

Ramsey El-Assal: Okay. Could you also comment on the loan mix between, you know, Tinman and direct and kind of how the changing environment might, you know, play out in terms of your target there? I think it was 60% Tinman by the end of the year. I was just curious if the changing backdrop here has any impact on that target.

Speaker #4: I think it was 60% Tin Man by the end of the year. I was just curious if the changing backdrop here has any impact on that target.

Speaker #2: I think we're well on our way to achieving that target.

Vishal Garg: I think we're well on our way to achieving that target.

Speaker #4: Yeah. I think Ramzi, you're hitting on a great point. Had we been a traditional D2C player, we would have spent money on these leads upfront and not have them convert.

Loveen Advani: Yeah, I think, Ram, you're hitting on a great point. Had we been a traditional D2C play, we would have spent money on these leads up front and not have them convert. We're now relying on our partnership volumes, right? We're somehow de-risking ourselves from that eventuality.

Speaker #4: Because we're now relying on our partnership volumes, right, we're somehow de-risking ourselves from that eventuality. Interesting. Thank you very much.

Ramzi Elissa: Interesting. Thank you very much.

Ramsey El-Assal: Interesting. Thank you very much.

Speaker #2: Thanks for your questions. Our next question is from the line of Rohit Kulkarni with Roth Capital Partners. Your line is live.

Operator: Thanks for your questions. Our next question is from the line of Rohit Kulkarni with Roth Capital Partners. Your line is live.

Speaker #5: Hi. Thanks, guys. One kind of just comparison of unit economics to the extent you can is in can you just flag what's the difference between a Tinman platform-generated volume versus D2C specifically?

Rohit Kulkarni: Hi. Thanks, guys. One, just comparison of unit economics to the extent you can. Can you just flag what's the difference between a Tinman AI platform-generated volume versus D2C specifically, relative CAC profile gain on sale? Longer term, do you see a scenario where the contribution margin for the platform volume would actually be structurally higher than your traditional D2C business?

Speaker #5: Relative kind of CAC profile, gain on sale, and longer-term, do you see a scenario where the contribution margin for the platform volume would actually be structurally higher than your traditional D2C business?

Vishal Garg: That's a great question. Right now, we try to price our platform partnerships, so we make the same amount of contribution margin. Revenue can change, right? 'Cause different partners are asking us to do different services for them. We try to make the same, you know, contribution margin that we do on D2C in our platform business. You know, as we scale, we're hoping to make, sort of, you know, around $2,000 per loan of contribution margin on mortgage, and slightly less than that on HELOCs in our Tinman AI platform business. Over time, as the sale becomes more and more software, the, like, margin profile is much better on Tinman AI platform.

Speaker #2: That's a great question. Right now, we try to price our platform partnerships so we make the same amount of contribution margin. Revenue can change, right, because different partners are asking us to do different services for them.

Speaker #2: But we try to make the same contribution margin. That we do on D2C in our platform business. And so as we scale, we're hoping to make sort of around $2,000 per loan of contribution margin.

Speaker #2: On mortgage, and slightly less than that on HELOCs in our Tin Man AI platform business. Over time, the as it becomes the sale becomes more and more software, margin profile is much better on Tin Man AI platform.

Speaker #2: But in the right now, the gains from AI are captured first in D2C, which is why you saw our continued improvement or our unit economics on the D2C business.

Vishal Garg: Right now, the gains from AI are captured first in D2C, which is why you saw our continued improvement of our unit economics on the D2C business. Then we port those things that work in D2C into the Tinman AI platform business.

Speaker #2: And then we port those things that work in D2C into the Tin Man AI platform business.

Speaker #5: Okay. Thank you. And regarding the current macro environment and rate kind of changes in the last 45 days, historically, what is the typical lag in consumer behavior and how that impacts your business assuming there is a pathway towards more stable macro in the next 60, 90 days?

Rohit Kulkarni: Okay, got you. Regarding the current macro environment and rate kind of changes in the last 45 days. Historically, what is the typical lag in consumer behavior and how that impacts your business, assuming there is a pathway towards more stable macro in the next 60, 90 days? How do you anticipate that to impact your business and over what duration? Sorry for the multi-parter here. Are you assuming any improvement in macro in your Q2 guide?

Speaker #5: How does that how do you anticipate that to impact your business and/or what duration and sorry for multi-parter here? And does that are you assuming any improvement in macro in your 2Q guide?

Vishal Garg: We're assuming no improvement in the macro in our Q2 guide. We're, we're being conservative there. The typical cycle is you can start to see on refis particular. On rate term refi in particular, you can see, you know, immediately within a week if a consumer comes in as a pre-approval, if they're going to lock or not or if they're hesitant. Usually when they are hesitant, we register in our, in our data the price point at which they would transact, and then we hold them till they come back. You know, kind of like, think of it like a limit order in stock trading. We see that behavior manifest itself out in refis. Purchase, as you know, is like a 6-month cycle.

Speaker #2: We're assuming no improvement in the macro in our 2Q guide. And so we're being conservative there. And we are the typical cycle is you can start to see on refis particular, on rate-term refi in particular, you can see immediately within a week if a consumer comes in as a pre-approval, if they're going to lock or not, or if they're hesitant, and usually when they are hesitant, we register in our data the price point at which they would transact.

Speaker #2: And then we hold them till they come back. Kind of like think of it like a limit order in stock trading. And then so we see that behavior manifest itself out in refis.

Speaker #2: Purchase, as you know, is like a six-month cycle. And HELOC, depending on the use case, if it's for debt console, it can take the consumer a month to decide.

Vishal Garg: HELOC, depending on the use case, if it's for debt consolidation, it can take, you know, the consumer a month to decide on what debts to pay off or not, and what, you know, what things that they care about or not. If it's, you know, more for home improvement or tuition or other things like that, they typically have a need that needs to be satisfied within 1 week, 2 weeks, 3 weeks.

Speaker #2: On what debt to pay off or not, what things that they care about or not. If it's more for home improvement or tuition or other things like that, they typically have a need that needs to be satisfied within a week, two weeks, three

Speaker #4: Yeah. Rohit, I think we'll go with this is as we think about beyond the second quarter, if the environment stays where it is, we'll have increased indexation towards HELOCs.

Loveen Advani: Yeah. Rohit, I think where you're trying to go with this is, as we think about beyond Q2, if the environment stays where it is, we'll have increased indexation towards HELOCs and less so towards refi. If the macro changes, then that equation will flip.

Speaker #4: And less so towards refi. And if the macro changes, then that equation will flip.

Speaker #5: I see. I got you. And then I know you reaffirmed break-even EBITDA by end of Q3. Q2 is still close to negative 13 million dollars in EBITDA.

Rohit Kulkarni: I see. I got you. I know you reaffirmed breakeven EBITDA by end of Q3. Q2 is still close to -$13 million in EBITDA. Can you help us kind of what specifically bridges that Q2 to Q3? What are the factors under your control? Maybe just layer in the $25 million cost reduction program. How much of that is in Q2, and what other levers do you have in Q3?

Speaker #5: Can you help us kind of what specifically bridges that Q2 to Q3? What are the factors under your control? And maybe just layer in the 25 million dollar cost reduction program.

Speaker #5: How much of that is in Q2 and what other levers do you have in Q3?

Loveen Advani: Clearly. Yeah, that's a great question. Today, our current financials excludes the UK business, which is considering that as discontinued ops, right? As we think about getting to our breakeven targets, our current cash OPEX is about $68 million. That's the guidance that we're giving, right? For us to get to profitability by the end of Q3, we'll have to get to a revenue mix or a revenue component of around low to mid-70s for us to breakeven at the end of Q3.

Speaker #4: Clearly.

Speaker #2: Yeah. That's a great question. So today, our current financials exclude the UK business, which is where considering that it's just continued ops. Right? As we think about getting to our break-even targets, our current cash OPEX is about 68 million dollars.

Speaker #2: That's the guidance that we're giving. Right? So for us to get to profitability by the end of Q3, we'll have to get to a revenue mix or a revenue component of around low to mid-70s.

Speaker #2: For us to break even at the end of Q3.

Speaker #5: Okay. Got you. Okay. I'll go back in the queue. Thank you, guys.

Rohit Kulkarni: Okay. Got you. Okay. I'll go back in the queue. Thank you, guys.

Speaker #2: Thank you for your questions. Our next question is from the line of Owen Rickert with Northland Capital Markets, your line is live.

Operator: Thank you for your questions. Our next question is from the line of Owen Rickert with Northland Capital Markets. Your line is live.

Speaker #6: Hi, guys. Thanks for taking my questions here. Could you talk a bit more about how some of those newer partnerships are ramping today? Are you seeing encouraging trends and engagement or conversion rates so far?

Owen Rickert: Hi, guys. Thanks for taking my questions here. Could you talk a bit more about how some of those newer partnerships are ramping today? Are you seeing encouraging trends in engagement or conversion rates so far? How have those partnerships trended on a monthly basis throughout the quarter?

Speaker #6: And how have those partnerships trended on a monthly basis throughout the quarter?

Vishal Garg: The newest partnership are ramping up extremely well. I mean, we literally in the month of April went from $100 million a day top of funnel to $200 million a day top of funnel. $200 million a day top of funnel just multiplied by 250 business days is $50 billion of pre-approval volume. We're still just scratching the surface. Our biggest partner, Credit Karma, we are exposed in many of the products to less than 1% of their customer base. For the top 5 retail lender, we're just ramping up their salespeople on the HELOC product. They have hundreds of billions of dollars of MSR on their books that we're gonna be targeting, which has a very, very high conversion rate.

Speaker #2: The newest partnership is ramping extremely well. I mean, we literally in the month of April went from 100 million dollars a day top of funnel to 200 million dollars a day.

Speaker #2: Top of funnel. 200 million dollars a day top of funnel just multiplied by 250 business days is 50 billion dollars. Of pre-approval volume. And we're still just scratching the surface.

Speaker #2: Our biggest partner Credit Karma, we have exposed in many of the products to less than 1% of their customer base. For the top five retail lender, we're just ramping up their salespeople on the HELOC product.

Speaker #2: And they have hundreds of billions of dollars of MSR on their books that we're going to be targeting. Which has a very, very high conversion rate.

Vishal Garg: Our top three fintech, they're scaling. They're becoming, you know, a reasonably decent size of our HELOC volume. So you've seen like monthly HELOC volumes start to continue to trend up. A little bit of that has been them. Then we've got a couple of banks in the queue off of our ChatGPT announcement that we did, I think about 2 months ago. We're hoping to get them closed and operational and live shortly.

Speaker #2: Our top three fintechs, they're scaling. They're becoming a reasonably decent size. Of our HELOC volume. And so you've seen monthly HELOC volumes start to continue to trend up a little bit of that has been them.

Speaker #2: And then we've got a couple of banks in the queue. Off of our ChatGPT announcement that we did. I think about two months ago.

Speaker #2: And we're hoping to get them closed and operational and live. Shortly.

Speaker #6: Got it. Thank you. And then on the technology side, where are you seeing the biggest operational or customer-facing benefits from tools like Betsy, TinMan AI in the broader machine learning initiatives?

Owen Rickert: Got it. Thank you. Then on the technology side, where are you seeing the biggest operational or customer-facing benefits from tools like Betsy, Tinman AI in the broader machine learning initiatives?

Speaker #2: The biggest benefit is in customer contact capability. Where consumers are now able to transact with Betsy 24/7, 365. And we're increasing the exposure of Betsy branded for our partners in their funnels.

Vishal Garg: The biggest benefit is in customer contact capability, where consumers are now able to transact with Betsy 24/7, 365. We're increasing the exposure of Betsy, branded for our partners in their funnels. I think the biggest uplift is gonna actually be when we are able to fully deploy Betsy in our partner funnels, not just in our D2C funnel.

Speaker #2: So I think the biggest uplift is going to actually be when we are able to fully deploy Betsy in our partner funnels. Not just in our D2C funnel.

Speaker #6: Great. Thank you.

Owen Rickert: Great. Thank you.

Speaker #5: Thanks for your questions. Ladies and gentlemen, once again, if you would like to ask a question today, remember it is star, followed by the number one on your telephone keypad.

Operator: Thanks for your questions. Ladies and gentlemen, once again, if you would like to ask a question today, remember it is star followed by the number 1 on your telephone keypad. Our next question comes from the line of Kartik Mehta with Northcoast Research. Your line is live.

Speaker #5: Our next question comes from the line of Karthik Mehta with North Coast Research. Your line is live.

Speaker #7: Hey, good morning, Vishal. One thing you've talked about our partnerships and your partnerships are growing. If in the interim, the mortgage market stays soft, but all of a sudden we get a big bump up if the war is over and all of a sudden you get a lot of activity, how do you manage the infrastructure if a demand spikes?

Kartik Mehta: Hey, good morning, Vishal. You know, one thing you've talked about are partnerships, and your partnerships are growing. If in the interim the mortgage markets stay soft, but all of a sudden we get a big bump up, you know, if the war is over and all of a sudden you get a lot of activity, how do you manage the infrastructure if a demand spikes?

Vishal Garg: We are already getting geared up for something like that. The best thing that we can do is in the old days, we had to rely on humans to staff up and pick up the phone, work late shifts, work weekends. Now we are able to simply leverage Betsy. Betsy loan officer, Betsy loan processor, Betsy loan underwriter. In preparation for some of that, we're actually taking off some of the gloves where Betsy was recommending a particular task or a particular path to both the consumer or an internal person, and then the internal person was sending it out. We're now just having Betsy be, you know, on autopilot, after, you know, close to over a year and a half of learning data.

Speaker #2: We are already getting geared up for something like that. The best thing that we can do is in the old days, we had to rely on humans to staff up and pick up the phone.

Speaker #2: Work late shifts. Work weekends. And now we are able to simply leverage Betsy. Betsy loan officer, Betsy loan processor. Betsy loan underwriter. And in preparation for some of that, we're actually taking off some of the gloves where Betsy was recommending a particular task or a particular path to both the consumer or an internal person.

Speaker #2: And then the internal person was sending it out. We're now just having Betsy be on autopilot after close to over a year and a half of learning data.

Speaker #2: And so I think that that's just going to crush the operating cost framework and allow us to capture all the volume as it comes in.

Vishal Garg: I think that's just gonna crush the operating cost framework and allow us to capture all the volume as it comes in.

Speaker #4: Hey, Vishal. And on a couple of partnerships, you're not the only mortgage provider, but it seems as though you have a competitive advantage because of your technology.

Kartik Mehta: Hey, Vishal, you know, on a couple partnerships, you're not the only mortgage provider, it seems as though you have a competitive advantage because of your technology. Have you seen your partners or talked to your partners about comparing your ability to serve their customers versus others that might be on the platform? If so, you know, what type of advantage is that giving you?

Speaker #4: Have you seen your partners or talked to your partners about comparing your ability to serve their customers versus others that might be on the platform?

Speaker #4: And if so, what type of advantage is that giving you?

Vishal Garg: Our partners typically see an improvement of 2x relative to the incumbent in terms of both productivity and customers served. That's really the promise that we make to them is, we're gonna, you know, help you double revenue, and Cut your cost structure by 30% to 50%, and you'll make 4, 5, 6 times more money. That's how it's playing out for our existing partners. That's why, you know, there's a wait list of people to get on the Tinman AI platform, the ChatGPT Enterprise edition. We're continuing to work through that. the value prop to the partners is high. as you know, like, the mortgage industry is, you know, an industry that the Internet basically forgot.

Speaker #2: Our partners typically see an improvement of 2X relative to the incumbent. In terms of both productivity and customer served. So that's really the promise that we make to them, is we're going to help you double revenue and we're going to help you cut your cost structure by 30 to 50 percent.

Speaker #2: And you'll make four, five, six times more money and that's how it's playing out for our existing partners. That's why there's a waitlist of people to get on the TinMan AI platform, the ChatGPT enterprise edition.

Speaker #2: We just are continuing to work through that and the value prop to the partners is high. But as you know, the mortgage industry is an industry that the internet basically forgot.

Speaker #2: And so we have lots and lots and lots of mortgage people who are still operating on really old antiquated systems. And what we're also finding is that their staff are used to just those systems.

Vishal Garg: We have lots and lots and lots of mortgage people who are still operating on really old, antiquated systems. What we're also finding is that their staff are used to just those systems. Frequently, we go in and they tell us that, hey, you know, we'll keep this staff, and then the rest of them, you know, why don't you, like, adapt them to the new system. What they find eventually is that we have to do it all for them. I think that is also, you know, upside in the margin profile that we land with a particular product or a particular implementation, and then we expand from there.

Speaker #2: So frequently we go in and they tell us that, "Hey, we'll keep this staff and then the rest of them why don't you adapt them to the new system?" And what they find eventually is that we have to do it all for them.

Speaker #2: So I think that is also upside in the margin profile that we land with a particular product or a particular implementation and then we expand from there.

Speaker #4: Perfect. Thank you very much. Appreciate it.

Kartik Mehta: Perfect. Thank you very much. Appreciate it.

Speaker #5: Thanks for your questions. Our next question is from the line of Brendan McCarthy with Cerotti. Your line is live.

Operator: Thanks for your questions. Our next question is from the line of Brendan McCarthy with Sidoti. Your line is live.

Speaker #7: Great. Good morning, everyone. Appreciate you taking my questions here. Just wanted to ask a quick question on Birmingham Bank, the UK-based bank. I know you classified it as discontinued operations, sell for sale.

Brendan McCarthy: Great. Good morning, everyone. Appreciate you taking my questions here. Just wanted to ask a quick question on Birmingham Bank, the UK-based bank. I know you classified it as discontinued operations, held for sale. Can you give us any detail on when we might expect a sale regarding timing? Can you give us any color on potential capital release from that sale or perhaps sale proceeds?

Speaker #7: Can you give us any detail on when we might expect a sale regarding timing? Can you give us any color on potential capital release from that sale or perhaps sale proceeds?

Speaker #4: Yeah. So Brendan, this is Levine. We're an active sale process. You had an investment bank to lead that. We're an active discussions with potential buyers, right?

Loveen Advani: Brendan, this is Levine. We're in an active sale process. We've had an investment bank to lead that. We're in active discussions with potential buyers, right? That's all I wanna disclose at this time, given that we're in active discussions. Even if we do sign, there's a regulatory approval process in the UK, which is gonna take about 2 to 4 months. Think of the impact in Q4.

Speaker #4: That's all I want to disclose at this time. Given that we're an active discussions. Even if we do sign, there's a regulatory approval process in the UK, which is going to take about two to four months.

Speaker #4: So think of the impact in Q4.

Speaker #5: Understood. Thanks for that, Levine. Looking at then the Coinbase partnership with the crypto-backed mortgage product, can you kind of walk us through the economics of that?

Brendan McCarthy: Understood. Thanks for that, Levine. Looking at the Coinbase partnership with the crypto-backed mortgage product, can you kind of walk us through the economics of that, you know, the revenue profile there and perhaps the launch timeline when we might see an impact in the P&L?

Speaker #5: The revenue profile there and perhaps the launch timeline when we might see an impact in the P&L?

Vishal Garg: The currently publicly stated launch timeline is sometime in late Q2. The revenue profile from that product is starting to manifest itself. Obviously, we have more pricing power in that product than we do in your traditional, you know, direct-to-consumer product. You should start to see, like, NEO-like margins on that product.

Speaker #2: The currently publicly stated launch timeline is sometime in late Q2. The revenue profile from that product is starting to manifest itself. Obviously, we have more pricing power in that product than we do in your traditional direct-to-consumer product.

Speaker #2: And so you should start to see NEO-like margins on that product.

Speaker #5: Got it. That's helpful. Thanks, Vishal. Last question just back to the Q3 breakeven guide for adjusted EBITDA. Just to clarify, I know you mentioned you're assuming a pretty stable environment as it relates to the macro.

Brendan McCarthy: Got it. That's helpful. Thanks, Vishal. Last question, just back to the Q3 breakeven guide for adjusted EBITDA. Just to clarify, I know you mentioned you're assuming a pretty stable environment as it relates to the macro, but is there any risk to achieving that breakeven if, you know, rates move meaningfully higher or maybe the Middle East conflict is more prolonged than expected?

Speaker #5: But is there any risk to achieving that breakeven if rates move meaningfully higher or maybe the Middle East conflict is more prolonged than expected?

Vishal Garg: We're gonna have to cut costs deeper. I think we're pretty committed to that number.

Speaker #2: We're going to have to cut costs deeper. I think we're pretty committed to that number.

Vishal Garg: We're gonna have to cut costs deeper. I think we're pretty committed to that number.

Speaker #5: Understood. Thanks, everybody. That's all from me.

Brendan McCarthy: Understood. Thanks, everybody. That's all for me.

Speaker #1: Thank you for your questions. And ladies and gentlemen, that will conclude our Q&A session for today. Vishal, I'd like to turn it back over to you for any closing comments.

Operator: Thank you for your questions. Ladies and gentlemen, that will conclude our Q&A session for today. Vishal, I'd like to turn it back over to you for any closing comments. Thank you.

Speaker #1: Thank you.

Vishal Garg: Thanks, everyone. Q1 was a really good quarter for us. We signed a bunch of really big deals, we executed on our plan, we beat guidance. I know it's disappointing for the Q2 guidance for us to not get to the billion-dollar mark of loan originations that we had planned to in May, we're gonna make up for that in the context of cost-cutting, deeper cost, you know, change to a HELOC product, which doesn't have a $350,000 balance, has a $100,000 balance, but makes basically the same amount of revenue. You know, using that to continue to drive revenue growth and a path towards profitability, which is what we're expecting in our Q2 guidance. We're confirming again that we will achieve by the end of two-three 2026.

Speaker #2: Thanks, everyone. Q1 was a really good quarter for us. We signed a bunch of really big deals and we executed on our plan and we beat guidance.

Speaker #2: I know it's disappointing for the Q2 guidance for us to not get to the billion-dollar mark. Of loan originations that we had planned to in May.

Speaker #2: But we're going to make up for that in the context of cost-cutting deeper change to a HELOC product, which doesn't have a 350,000-dollar balance, has 100,000-dollar balance, but makes basically the same amount of revenue.

Speaker #2: And using that to continue to drive revenue growth and a path towards profitability, which is what we're re expecting in our Q2 guidance and we're confirming again that we will achieve by the end of Q3 2026.

Vishal Garg: Thank you all for continuing to have an interest in believing in Better, and we appreciate you all.

Speaker #2: So thank you all for continuing to have an interest in believing in better and we appreciate you all.

Vishal Garg: Thank you all for continuing to have an interest in believing in Better, and we appreciate you all.

Operator: Thank you, everybody. Have a great day.