Better Home & Finance Holding Co
For the period ended Jun 30, 2026. Filed Aug 11, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 11, 2026
BETR$19.24+1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001628280-26-033684
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-11.
0001628280-26-055745
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 173 previous paragraphs and 195 current paragraphs.
107 unchanged; 55 reworded; 25 added; 11 removed; 0 previous and 8 current paragraphs rearranged.
Tables are not compared: 15 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (25)
Current report
Mortgage rates remained elevated throughout the quarter, although they exhibited periodic volatility driven by changing inflation expectations, treasury yield movements, and geopolitical developments. The continuation of conflict in the Middle East, including disruptions affecting the Strait of Hormuz, contributed to volatility in oil prices and financial markets, creating additional uncertainty around the interest rate outlook and mortgage financing conditions.
Current report
Elevated borrowing costs continued to constrain overall mortgage origination activity, with refinance activity and demand among rate-sensitive consumers particularly affected, as prevailing rate levels limited the incentive to refinance. Ongoing home affordability challenges, resulting from higher home prices and limited housing inventory, represented a further headwind to origination volumes broadly. Despite these pressures, purchase mortgage demand remained comparatively durable, reflecting the extent to which purchase activity is driven by non-discretionary, life-event factors such as relocation, household formation and job changes that occur independent of the rate environment, making it less cyclical than refinance activity. At the same time, lenders with diversified product offerings, including home equity products, continued to be better positioned to address evolving consumer financing needs and benefit from demand that tends to increase in higher-rate environments.
Current report
Three and Six Months Ended June 30, 2026 as Compared to Three and Six Months Ended June 30, 2025
Current report
Gain on sale of loans, net increased $39.6 million or 72% to $94.9 million for the six months ended June 30, 2026 compared to $55.3 million for the six months ended June 30, 2025. The increase in gain on sale of loans, net was largely driven by the increase of Loan Volume, which was driven by increases in purchase, refinance, and home equity products.
Current report
Broker revenue decreased $0.8 million, or 35% to $1.5 million for the three months ended June 30, 2026, compared to $2.3 million for the three months ended June 30, 2025. The decrease was primarily due to lower broker revenue generated from third-party loan originations through in-market origination operations.
Current report
Broker revenue decreased $0.6 million, or 18% to $2.9 million for the six months ended June 30, 2026, compared to $3.5 million for the six months ended June 30, 2025. The decrease was primarily due to lower broker revenue generated from third-party loan originations through in-market origination operations.
Current report
International lending revenue decreased $3.3 million, or 98.2% to $0.1 million for the six months ended June 30, 2026 compared to $3.4 million for the six months ended June 30, 2025. The decrease in international lending revenue was primarily driven by the sale of the Trussle disposal group in the third quarter of 2025.
Current report
Real estate services increased $0.2 million, or 116% to $0.3 million for the three months ended June 30, 2026 compared to $0.2 million for the three months ended June 30, 2025 due to an increase in real estate transaction volume in the second quarter of 2026.
Current report
Other interest expense remained immaterial for both the three months ended June 30, 2026 and 2025.
Current report
Other interest expense decreased $1.7 million, or 99% to an immaterial amount for the six months ended June 30, 2026 compared to $1.7 million for the six months ended June 30, 2025. The decrease was primarily due to the extinguishment of the Convertible Notes in April 2025. See Note 10 for additional information.
Current report
General and administrative expenses remained relatively consistent at $10.3 million for the three months ended June 30, 2026, as compared with $10.5 million in the three months ended June 30, 2025. The decrease in general and administrative expenses was driven primarily by reductions in professional services.
Current report
Technology expenses were $17.1 million for the six months ended June 30, 2026, an increase of $4.1 million or 31% as compared with $13.1 million in the six months ended June 30, 2025. The increase in technology expenses was driven primarily by the increase in costs related to software and data warehouse vendors.
Current report
Marketing and advertising expenses were $9.4 million for the three months ended June 30, 2026, a decrease of $1.7 million or 15% as compared with $11.1 million in the three months ended June 30, 2025. The decrease was primarily driven by lower advertising spend to generate mortgage and home equity leads.
Current report
Loan origination expenses were $3.5 million for the three months ended June 30, 2026, a decrease of $0.5 million or 12%, as compared with $3.9 million in the three months ended June 30, 2025. The decrease in loan origination expenses was driven by a reduction in the estimated liability for the potential TRID defects.
Current report
Other expenses were a credit of $0.5 million for the three months ended June 30, 2026, a decrease of $2.4 million or 124%, as compared with $1.9 million in the three months ended June 30, 2025. The decrease in other expenses was primarily driven by a decrease on liability classified warrants and equity related liabilities as a result of the decreased trading price of our common stock. The decrease was partially offset by an increase in impairment charges in the second quarter of 2026.
Current report
Three and Six Months Ended June 30, 2026 as Compared to Three and Six Months Ended June 30, 2025
Current report
Interest income from investments increased $1.6 million, or 60% to $4.3 million for the six months ended June 30, 2026 compared to $2.7 million for the six months ended June 30, 2025. The increase in interest income from investments was driven by increased customer deposits which in turn fund our loans held for investment in our U.K. banking operations. The balance of customer deposits was $746.0 million and $482.4 million as of June 30, 2026 and 2025.
Current report
Interest expense on customer deposits increased $3.7 million, or 85% to $8.1 million for the three months ended June 30, 2026 compared to $4.4 million for the three months ended June 30, 2025. The increase in interest expense on customer deposits was driven by increased customer deposits which in turn fund our loans held for investment in our
Current report
U.K. banking operations. The balance of customer deposits was $746.0 million and $482.4 million as of June 30, 2026 and 2025.
Current report
Compensation and benefits, general and administrative, and technology expenses remained relatively consistent at $4.9 million for the three months ended June 30, 2026 compared to $5.1 million for the three months ended June 30, 2025. Compensation and benefits expenses decreased $0.2 million, while general and administrative and technology expenses remained relatively consistent with the prior-year period.
Current report
Other expenses were a credit of $2.6 million for the three months ended June 30, 2026, a decrease of $2.6 million, as compared with an immaterial amount for the three months ended June 30, 2025. The decrease was primarily driven by a $2.4 million impairment reversal related to the Birmingham Bank disposal group, reflecting an increase in its estimated fair value less costs to sell.
Current report
During the second quarter of 2026, the Company completed an underwritten public offering generating approximately $66.1 million of net proceeds before offering expenses. The proceeds have been used, and are expected to continue to be used, for general corporate purposes, including working capital and supporting loan production and loan volume.
Current report
Senior Notes
Current report
Six Months Ended June 30, 2026 as Compared to Six Months Ended June 30, 2025
Current report
Net cash used in operating activities was $99 million for the six months ended June 30, 2026, a decrease of $5 million, or 5%, compared to net cash used by operating activities of $104 million for the six months ended June 30, 2025. The decrease primarily reflects normal period-over-period fluctuations in working capital and other operating activities.
Removed paragraphs (11)
Previous report
In addition, geopolitical uncertainty, including the ongoing conflict in the Middle East, has contributed to volatility in financial markets, impacting U.S. Treasury yields, inflation expectations, and mortgage rate movements. These factors, combined with affordability constraints driven by rising home prices and borrowing costs, have created a more challenging operating environment for mortgage originators. At the same time, lenders with diversified product offerings across purchase and non-mortgage products, such as home equity, are better positioned to capture baseline purchase activity and benefit from the counter-cyclical demand for home equity products that typically increases in higher-rate environments.
Previous report
Recent Developments
Previous report
As previously announced, the Company determined to dispose of Birmingham Bank, which represents the Company’s reportable banking segment. The sale process is underway and is expected to conclude during 2026; and, therefore, the assets related to this business have been classified as held for sale. The timing and ultimate outcome of the sale of Birmingham Bank remains subject to market conditions and required regulatory approvals. The results of operations, financial condition, and cash flows for Birmingham Bank are presented herein as discontinued operations. Except where noted, any tables, percentages or metrics included within this filing exclude the results of Birmingham Bank.
Previous report
Broker revenue increased $0.2 million, or 17% to $1.4 million for the three months ended March 31, 2026, compared to $1.2 million for the three months ended March 31, 2025. The increase in broker revenue was primarily drivenby broker revenue earned for originating loans for third-parties through in-market originations operations.
Previous report
Other interest expense decreased $1.7 million, or 100% to none for the three months ended March 31, 2026 compared to $1.7 million for the three months ended March 31, 2025. Other interest expense is related to interest expense on our Convertible Notes which were extinguished as part of the Exchange per Note 10 in April 2025. As part of the TDR accounting, the interest on the Senior Notes has been recognized up front as part of the new carrying value.
Previous report
On April 9, 2026, the Company also completed an underwritten public offering of 2,156,250 shares of its Class A common stock for total gross proceeds of approximately $69.0 million and net proceeds of $66.1 million. The offering was made pursuant to the Company’s effective shelf registration statement on Form S-3 and the related prospectus supplement dated April 8, 2026. The Company intends to use the net proceeds for general corporate purposes, including working capital and to support growth in loan production and funded loan volume.
Previous report
Note Exchange Agreement
Previous report
We have also raised capital via the closing of the Business Combination in August 2023, which resulted in gross proceeds of approximately $568.0 million. Of the total gross proceeds, $528.6 million was in the form of Convertible Notes (the “Convertible Notes”) issued by Better to SB Northstar LP (the “Investor”).
Previous report
Pursuant to the Note Exchange Agreement, we granted the Investor, conditioned on closing of the Exchange, a non-transferrable right to designate one non-voting board observer from June 1, 2025, for so long as the Investor and affiliates of the Investor continue to hold, in the aggregate, either (i) at least 25% of the initial aggregate principal amount of the New Notes or (ii) at least 12% of the sum of the outstanding shares of the Company’s Class A common stock, Class B common stock and Class C common stock, calculated on a fully diluted basis.
Previous report
Senior Notes Indenture
Previous report
Net cash used in operating activities was $125 million for the three months ended March 31, 2026, an increase of $79 million, or 170%, compared to net cash used by operating activities of $46 million for the three months ended March 31, 2025. The increase in net cash used by operating activities was primarily driven by loan originations in excess of proceeds from sales of loans during the three months ended March 31, 2026, whereas loan originations were more closely aligned with proceeds from loan sales in the prior-year period.
Reworded paragraphs (55)
Previous wording
The mortgage industry continues to be influenced by a dynamic macroeconomic and geopolitical environment. In the first quarter of 2026, the U.S. Federal Reserve maintained the federal funds rate within a target range of approximately 3.50% to 3.75%. This sustained restrictive monetary policy stance, implemented to address inflation above the Federal Reserve’s long-term 2% target, has contributed to mortgage rates remaining elevated relative to recent historical levels, limiting refinance activity and moderating overall borrower demand, particularly in rate-sensitive segments.
Current wording
The mortgage industry continued to operate in a dynamic macroeconomic and geopolitical environment during the second quarter of 2026. In June 2026, the U.S. Federal Reserve maintained the federal funds target range at approximately 3.50% to 3.75%, continuing its restrictive monetary policy stance as inflation remained above the Federal Reserve's long-term 2% target, despite showing signs of moderation.
Previous wording
We generate revenue through the production and sale of loans and other product offerings through our platform. The revenue and mix of revenue as a percentage of total revenue attributable to our sale of loan production (Gain on loans, net) and Better Plus (Other revenue) and net interest income for the three months ended March 31, 2026 and 2025 is as follows:
Current wording
We generate revenue through the production and sale of loans and other product offerings through our platform. The revenue and mix of revenue as a percentage of total revenue attributable to our sale of loan production (Gain on loans, net) and Better Plus (Other revenue) and net interest income for the three and six months ended June 30, 2026 and 2025 is as follows:
Previous wording
We produce a wide selection of mortgage loans and leverage our platform to quickly sell these loans and related mortgage servicing rights (“MSRs”) to our loan purchaser network. Historically, the Company utilized three primary channels for customer acquisition; however, our current operations have been streamlined to focus on two key sourcing channels: our D2C channel and our Platform channel. Through these channels, we generate gain on loans, net by selling loans and MSRs to our loan purchaser network, recognizing revenue per loan. Through our Platform channel, we generate revenue from various partnerships with mortgage originators and technology companies, as well as our in-market loan officer teams, which ramped over the course of 2025. These partnerships come in different structures. For some, we access our partners’ customer base and originate loans on our platform and in other arrangements, the partner originates the loan and we provide the technology, underwriting, and fulfillment.
Current wording
We produce a wide selection of mortgage loans and leverage our platform to quickly sell these loans and related mortgage servicing rights (“MSRs”) to our loan purchaser network. Historically, the Company utilized three primary channels for customer acquisition; however, our current operations have been streamlined to focus on two key sourcing channels: our D2C channel and our Platform channel. Through these channels, we generate gain on loans, net by selling loans and MSRs to our loan purchaser network, recognizing revenue per loan. Through our Platform channel, we generate revenue from various partnerships with mortgage originators and technology companies, as well as our in-market loan officer teams, which ramped over the course of 2025. These partnerships come in different structures. For some, we access our partners’ customer base and originate loans on our platform. In other arrangements, the partner originates the loan and we provide the technology, underwriting, and fulfillment.
Previous wording
International lending revenue consists of revenue from our international lending activities, primarily in the U.K., which has expanded via acquisitions in prior years. International lending activities primarily include broker fees earned via our digital mortgage broker in the U.K. During 2024, management enacted a plan to sell several entities in the U.K. One of those sales was completed in Q3 2025, with the remaining expected to be completed in 2026. As such, the revenue from our non-core international operations is winding down.
Current wording
International lending revenue consists of revenue from our international lending activities, primarily in the U.K., which has expanded via acquisitions in prior years. International lending activities primarily include broker fees earned via our digital mortgage broker in the U.K. During 2024, management enacted a plan to sell several entities in the U.K. One of those sales was completed in the three months ended September 30, 2025, with the remaining expected to be completed in 2026. As such, the revenue from our non-core international operations is winding down.
Previous wording
Refinance Loan Volume represents the aggregate dollar amount of refinance loans funded in a given period based on the principal amount of the loan at refinancing date.
Current wording
Refinance Loan Volume represents the aggregate dollar amount of refinance loans funded or processed in a given period based on the principal amount of the loan at refinancing date.
Previous wording
Purchase Loan Volume represents the aggregate dollar amount of purchase loans funded in a given period based on the principal amount of the loan at purchase date.
Current wording
Purchase Loan Volume represents the aggregate dollar amount of purchase loans funded or processed in a given period based on the principal amount of the loan at purchase date.
Previous wording
HELOC Loan Volume represents the aggregate dollar amount of HELOC and closed-end lien loans funded in a given period based on the principal amount of the loan at funding.
Current wording
HELOC Loan Volume represents the aggregate dollar amount of HELOC and closed-end lien loans funded or processed in a given period based on the principal amount of the loan at funding.
Previous wording
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.
Current wording
Loan Volume represents the aggregate dollar amount of all loans funded or processed in a given period based on the principal amount of the loan at funding.
Previous wording
D2C Loan Volume 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 partner relationships and our Tinman® AI Platform channel.
Current wording
D2C Loan Volume represents the aggregate dollar amount of loans funded or processed 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 partner relationships and our Tinman® AI Platform channel.
Previous wording
B2B Loan Volume 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 our B2B partner relationship with Ally. This channel was discontinued upon the wind-down of the relationship with Ally Financial Inc. (“Ally”); the Company has not reported B2B Loan Volume since Q4 2025.
Current wording
B2B Loan Volume represents the aggregate dollar amount of loans funded or processed in a given period based on the principal amount of the loan at funding that have been generated through our B2B partner relationship with Ally. This channel was discontinued upon the wind-down of the relationship with Ally Financial Inc. (“Ally”); the Company has not reported B2B Loan Volume since Q4 2025.
Previous wording
Platform Loan Volume 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 distributed retail channels.
Current wording
Platform Loan Volume represents the aggregate dollar amount of loans funded or processed in a given period based on the principal amount of the loan at funding that have been generated through one of our platform partnership channels.
Previous wording
Total Loans represents the total number of loans funded in a given period, including purchase loans, refinance loans and HELOC loans and closed-end second lien loans.
Current wording
Total Loans represents the total number of loans funded or processed in a given period, including purchase loans, refinance loans and HELOC loans and closed-end second lien loans.
Previous wording
Average Loan Amount represents Funded Loan Volume divided by Total Loans in a period.
Current wording
Average Loan Amount represents Loan Volume divided by Total Loans in a period.
Previous wording
Gain on Sale Margin represents gain on loans, net, as presented on our condensed consolidated statements of operations and comprehensive loss, divided by Funded Loan Volume.
Current wording
Gain on Sale Margin represents gain on loans, net, as presented on our condensed consolidated statements of operations and comprehensive loss, divided by Loan Volume.
Previous wording
Total Market Share represents Funded Loan Volume in a period divided by total value of loans funded in the industry for the same period, as presented by FNMA.
Current wording
Total Market Share represents Loan Volume in a period divided by total value of loans funded or processed in the industry for the same period, as presented by FNMA.
Previous wording
i. Gain on sale of loans, net–This represents the premium we receive in excess of the loan principal amount and certain fees charged by loan purchasers upon sale of loans into the secondary market. Gain on sale of loans, net includes unrealized changes in the fair value of LHFS, which are recognized on a loan-by-loan basis as part of current period earnings until the loan is sold on the secondary market. The fair value of LHFS is measured based on observable market data. This also includes activity for loans originated on behalf of the integrated partnership that are subsequently purchased by us as well the portion of the sale proceeds to be received by the integrated partner. The portion of the sale proceeds that is to be allocated to the integrated partner is accrued as a reduction of gain on sale of loans, net when the loan is initially purchased by us from the integrated relationship partner.
Current wording
i. Gain on sale of loans, net–This represents the premium we receive in excess of the loan principal amount and certain fees charged by loan purchasers upon sale of loans into the secondary market. Gain on sale of loans, net includes unrealized changes in the fair value of LHFS, which are recognized on a loan-by-loan basis as part of current period earnings until the loan is sold on the secondary market. The fair value of LHFS is measured based on observable market data. This also includes activity for loans originated on behalf of the integrated partnership that are subsequently purchased by us as well as the portion of the sale proceeds to be received by the integrated partner. The portion of the sale proceeds that is to be allocated to the integrated partner is accrued as a reduction of gain on sale of loans, net when the loan is initially purchased by us from the integrated relationship partner.
Previous wording
For international lending revenue, we generate revenue primarily from broker fees earned via our digital mortgage broker in the U.K. During 2024, management enacted a plan to sell several entities in the U.K. One of those sales was completed in Q3 2025, with an additional sale completed in Q1 2026, and any remaining dispositions are expected to be completed during 2026. As such, the revenue from our non-core international operations is winding down. We do not expect to generate material revenue from these non-core international operations in future periods.
Current wording
For international lending revenue, we generate revenue primarily from broker fees earned via our digital mortgage broker in the U.K. During 2024, management enacted a plan to sell several entities in the U.K. One of those sales was completed in the three months ended September 30, 2025, with an additional sale completed in the three months ended March 31, 2026, and any remaining dispositions are expected to be completed during 2026. As such, the revenue from our non-core international operations is winding down. We do not expect to generate material revenue from these non-core international operations in future periods.
Previous wording
Gain on sale of loans, net increased $22.8 million or 107% to $44.1 million for the three months ended March 31, 2026 compared to $21.3 million for the three months ended March 31, 2025. The increase in gain on sale of loans, net was largely driven by the increase of Funded Loan Volume, which was driven by increases in refinance and home equity products.
Current wording
Gain on sale of loans, net increased $16.8 million or 50% to $50.9 million for the three months ended June 30, 2026 compared to $34.0 million for the three months ended June 30, 2025. The increase in gain on sale of loans, net was largely driven by the increase of Loan Volume, which was driven by increases in purchase, refinance, and home equity products.
Previous wording
Loan repurchase reserve recovery decreased $2.8 million or 130%, to a provision of $0.6 million for the three months ended March 31, 2026, compared to a recovery of $2.1 million for the three months ended March 31, 2025. The prior-year recovery was driven by declining estimated loss exposure associated with historical origination vintages, while the current-year provision reflects updated estimates of expected losses and loan-specific activity during the period.
Current wording
Loan repurchase reserve recovery decreased $1.3 million or 307%, to a provision of $0.9 million for the three months ended June 30, 2026, compared to a recovery of $0.4 million for the three months ended June 30, 2025. The prior-year recovery was driven by declining estimated loss exposure associated with historical origination vintages, while the current-year provision reflects updated estimates of expected losses and loan-specific activity during the period.
Previous wording
International lending revenue decreased $1.5 million, or 96.9% to an immaterial amount for the three months ended March 31, 2026 compared to $1.5 million for the three months ended March 31, 2025. The decrease in international lending revenue was primarily driven by the sale of the Trussle disposal group in the third quarter of 2025.
Current wording
International lending revenue decreased $1.8 million, or 99.2% to an immaterial amount for the three months ended June 30, 2026 compared to $1.9 million for the three months ended June 30, 2025. The decrease in international lending revenue was primarily driven by the sale of the Trussle disposal group in the third quarter of 2025.
Previous wording
Insurance services decreased $0.1 million, or 14.1% to $0.6 million for the three months ended March 31, 2026 compared to $0.7 million for the three months ended March 31, 2025. The decrease in insurance services revenue was primarily driven by the sale of the Trussle disposal group in the third quarter of 2025 offset slightly by an increasein insurance related revenue from our Better Cover business.
Current wording
Insurance services decreased $0.3 million, or 30.8% to $0.6 million for the three months ended June 30, 2026 compared to $0.8 million for the three months ended June 30, 2025. The decrease in insurance services revenue was primarily driven by the sale of the Trussle disposal group in the third quarter of 2025 offset slightly by an increasein insurance related revenue from our Better Cover business.
Previous wording
Real estate services decreased $0.7 million, or 77% to $0.2 million for the three months ended March 31, 2026 compared to $0.9 million the three months ended March 31, 2025 due to a decrease in real estate transaction volume driven by the conclusion of the integrated relationship partnership with Ally and its use as a source of referrals for real estate services.
Current wording
Real estate services decreased $0.6 million, or 54.7% to $0.5 million for the six months ended June 30, 2026 compared to $1.1 million for the six months ended June 30, 2025 due to a decrease in real estate transaction volume driven by the conclusion of the integrated relationship partnership with Ally and its use as a source of referrals for real estate services.
Previous wording
Other revenue decreased by $0.2 million, or 31.5% to $0.3 million for the three months ended March 31, 2026 compared to $0.5 million for the three months ended March 31, 2025. The decrease in other revenue was primarily driven by lower ancillary revenue activities.
Current wording
Other revenue decreased by $0.1 million, or 27.7% to $0.2 million for the three months ended June 30, 2026 compared to $0.2 million for the three months ended June 30, 2025. The decrease in other revenue was primarily driven by lower ancillary revenue activities.
Previous wording
Mortgage interest income increased $0.5 million, or 8% to $6.9 million for the three months ended March 31, 2026 compared from $6.4 million of the three months ended March 31, 2025. The increase in mortgage interest income was primarily driven by the increase in origination volume and the mortgage interest income earned on the unpaid principal balance for loans held and serviced during the interim between the origination of the loan and its sale on the secondary market.
Current wording
Mortgage interest income increased $0.4 million, or 3% to $14.6 million for the six months ended June 30, 2026 compared to $14.2 million for the six months ended June 30, 2025. The increase in mortgage interest income was primarily driven by the increase in origination volume and the mortgage interest income earned on the unpaid principal balance for loans held and serviced during the interim between the origination of the loan and its sale on the secondary market.
Previous wording
Interest income from investments decreased $0.8 million, or 70% to $0.3 million for the three months ended March 31, 2026 compared to $1.2 million for the three months ended March 31, 2025. The decrease in interest income from investments was primarily driven by decreased holdings of investments with maturities less than 90 days.
Current wording
Interest income from investments decreased $0.1 million, or 16% to $0.6 million for the three months ended June 30, 2026 compared to $0.8 million for the three months ended June 30, 2025. The decrease in interest income from investments was primarily driven by decreased holdings of investments with maturities less than 90 days.
Previous wording
Warehouse interest expense increased $2.9 million, or 106% to $5.7 million for the three months ended March 31, 2026 compared to $2.8 million for the three months ended March 31, 2025. The increase in warehouse interest expense was primarily driven by increased borrowings on funding facilities used in the mortgage production process to meet the increased origination volume.
Current wording
Warehouse interest expense increased $0.5 million, or 8% to $6.2 million for the three months ended June 30, 2026 compared to $5.7 million for the three months ended June 30, 2025. The increase in warehouse interest expense was primarily driven by increased borrowings on funding facilities used in the mortgage production process to meet the increased origination volume.
Previous wording
Compensation and benefits expenses were $55.7 million for the three months ended March 31, 2026, an increase of $11.8 million or 27% compared with $43.9 million for the three months ended March 31, 2025. The increase in compensation and benefits was primarily driven by higher expense recognized for performance-based equity awards, reflecting changes in the probability of achieving specified performance metrics.
Current wording
Compensation and benefits expenses were $51.6 million for the three months ended June 30, 2026, an increase of $13.7 million or 36% compared with $37.8 million for the three months ended June 30, 2025. The increase in compensation and benefits was primarily driven by higher expense recognized for performance-based equity awards, reflecting changes in the probability of achieving specified performance metrics.
Previous wording
General and administrative expenses were $8.9 million for the three months ended March 31, 2026, a decrease of $1.8 million or 17% as compared with $10.8 million in the three months ended March 31, 2025. The decrease in general and administrative expenses was driven primarily by reductions in insurance premiums and professional services.
Current wording
General and administrative expenses were $19.3 million for the six months ended June 30, 2026, a decrease of $2.0 million or 9% as compared with $21.3 million in the six months ended June 30, 2025. The decrease in general and administrative expenses was driven primarily by reductions in professional services.
Previous wording
Technology expenses were $8.4 million for the three months ended March 31, 2026, an increase of $1.7 million or 26% as compared with $6.6 million in the three months ended March 31, 2025. The increase in technology expenses was driven primarily by the increase in costs related to software vendors.
Current wording
Technology expenses were $8.8 million for the three months ended June 30, 2026, an increase of $2.4 million or 37% as compared with $6.4 million in the three months ended June 30, 2025. The increase in technology expenses was driven primarily by the increase in costs related to software and data warehouse vendors.
Previous wording
Marketing and advertising expenses were $9.2 million for the three months ended March 31, 2026, an increase of $0.5 million or 6% as compared with $8.7 million in the three months ended March 31, 2025. The increase was primarily driven by higher advertising spend to generate home equity line of credit and refinancing leads.
Current wording
Marketing and advertising expenses were $18.7 million for the six months ended June 30, 2026, a decrease of $1.1 million or 6% as compared with $19.8 million in the six months ended June 30, 2025. The decrease was primarily driven by lower advertising spend to generate mortgage and home equity leads.
Previous wording
Loan origination expenses were $7.7 million for the three months ended March 31, 2026, an increase of $5.2 million or 209%, as compared with $2.5 million in the three months ended March 31, 2025. The increase in loan origination expenses was driven by an increase in origination volume.
Current wording
Loan origination expenses were $11.2 million for the six months ended June 30, 2026, an increase of $4.8 million or 74%, as compared with $6.4 million in the six months ended June 30, 2025. The increase in loan origination expenses was driven by an increase in origination volume. The increase was offset by a reduction in the estimated liability for potential TRID defects.
Previous wording
Other expenses were $5.4 million for the three months ended March 31, 2026, an increase of $4.5 million or 515%, as compared with $0.9 million in the three months ended March 31, 2025. The increase in other expenses was primarily driven the changes in the fair value of the warrant issued by the Company in connection with a private placement transaction, which provided the holder the right to purchase up to 211,312 shares of the Company’s Class A common stock prior to its exercise, as well as increases in liability-classified warrants and other equity related liabilities due to the higher trading price of the Company’s common stock, partially offset by a gain on the disposal of the BHO disposal group.
Current wording
Other expenses were $5.0 million for the six months ended June 30, 2026, an increase of $2.2 million or 79%, as compared with $2.8 million in the six months ended June 30, 2025. The increase in other expenses was primarily driven by changes in the fair value of the warrant issued by the Company in connection with a private placement transaction, as well as increases in liability-classified warrants and other equity related liabilities due to the higher trading price of the Company’s common stock, partially offset by a gain on the disposal of the BHO disposal group.
Previous wording
During the first quarter of 2026, the Birmingham Bank business, which represents the Company’s reportable banking segment was classified as held-for-sale. In addition, the Company determined that the planned disposal represents a strategic shift that is expected to have a significant effect on the Company’s operations and financial results. Accordingly, the results of the Birmingham Bank business are presented as discontinued operations in the Company’s condensed consolidated financial statements for all periods presented. The Company continues to actively market the Birmingham Bank business and is pursuing a sale transaction. The timing and ultimate outcome of the disposal remain subject to market conditions and regulatory approvals. The Company expects that the results of discontinued operations will continue to be impacted by operating performance, changes in interest rates, and any additional adjustments to the carrying value of the disposal group prior to sale.
Current wording
During the first quarter of 2026, Birmingham Bank, a regulated U.K. banking entity acquired in 2023 (“Birmingham Bank”), which represents the Company’s reportable banking segment was classified as held-for-sale. In addition, the Company determined that the planned disposal represents a strategic shift that is expected to have a significant effect on the Company’s operations and financial results. Accordingly, the results of Birmingham Bank are presented as discontinued operations in the Company’s condensed consolidated financial statements for all periods presented. The Company continues to actively market Birmingham Bank and is pursuing a sale transaction. The timing and ultimate outcome of the disposal remain subject to market conditions and regulatory approvals. The Company expects that the results of discontinued operations will continue to be impacted by operating performance, changes in interest rates, and any additional adjustments to the carrying value of the disposal group prior to sale.
Previous wording
Interest income on loans held for investment increased $7.3 million, or 389% to $9.2 million for the three months ended March 31, 2026 compared to $1.9 million for the three months ended March 31, 2025. The increase in interest income on loans held for investment was driven by increased originations of loans held for investment in our U.K. banking operations. Loans held for investment was $728.3 million and $207.2 million as of March 31, 2026 and 2025.
Current wording
Interest income on loans held for investment increased $5.3 million, or 136% to $9.2 million for the three months ended June 30, 2026 compared to $3.9 million for the three months ended June 30, 2025. The increase in interest income on loans held for investment was driven by increased originations of loans held for investment in our U.K. banking operations. Loans held for investment was $729.2 million and $420.6 million as of June 30, 2026 and 2025.
Previous wording
Interest income from investments increased $1.1 million, or 116% to $2.1 million for the three months ended March 31, 2026 compared to $1.0 million for the three months ended March 31, 2025. The increase in interest income from investments was driven by increased customer deposits which in turn fund our loans held for investment in our U.K. banking operations. The balance of customer deposits was $755.1 million and $261.1 million as of March 31, 2026 and 2025.
Current wording
Interest income from investments increased $0.5 million, or 29% to $2.2 million for the three months ended June 30, 2026 compared to $1.7 million for the three months ended June 30, 2025. The increase in interest income from investments was driven by increased customer deposits which in turn fund our loans held for investment in our U.K. banking operations. The balance of customer deposits was $746.0 million and $482.4 million as of June 30, 2026 and 2025.
Previous wording
Interest expense on customer deposits increased $6.6 million, or 329% to $8.6 million for the three months ended March 31, 2026 compared to $2.0 million for the three months ended March 31, 2025. The increase in interest expense on customer deposits was driven by increased customer deposits which in turn fund our loans held for investment in our U.K. banking operations. The balance of customer deposits was $755.1 million and $261.1 million as of March 31, 2026 and 2025.
Current wording
Interest expense on customer deposits increased $10.3 million, or 162% to $16.7 million for the six months ended June 30, 2026 compared to $6.4 million for the six months ended June 30, 2025. The increase in interest expense on customer deposits was driven by increased customer deposits which in turn fund our loans held for investment in our U.K. banking operations. The balance of customer deposits was $746.0 million and $482.4 million as of June 30, 2026 and 2025.
Previous wording
Compensation and benefits, general and administrative, and technology expenses were $4.4 million for the three months ended March 31, 2026, an increase of $0.2 million or 6% compared to $4.2 million for the three months ended March 31, 2025. Compensation and benefits expenses were $2.8 million, unchanged period over period, while general and administrative and technology expenses increased modestly, primarily reflecting the impact of foreign currency fluctuations.
Current wording
Compensation and benefits, general and administrative, and technology expenses were $9.4 million for the six months ended June 30, 2026 compared to $9.3 million for the six months ended June 30, 2025. Compensation and benefits expenses decreased $0.2 million, while general and administrative and technology expenses remained relatively consistent with the prior-year period.
Previous wording
Other expenses were $18.9 million for the three months ended March 31, 2026, an increase of $17.5 million or 1215%, as compared with $1.4 million in the three months ended March 31, 2025. The increase was primarily driven by a $15.5 million impairment charge recorded to write down the Birmingham Bank disposal group to its estimated fair value less costs to sell in connection with its classification as held-for-sale.
Current wording
Other expenses were $16.3 million for the six months ended June 30, 2026, an increase of $14.9 million or 1062%, as compared with $1.4 million for the six months ended June 30, 2025. The increase was primarily driven by a net $16.0 million impairment charge recorded to write down the Birmingham Bank disposal group to its estimated fair value less costs to sell in connection with its classification as held for sale.
Previous wording
Non-GAAP financial measure has limitations in their usefulness to investors because it has no standardized meaning and are not prepared under any comprehensive set of accounting rules or principles. Accordingly, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measure as a tool for comparison.
Current wording
Non-GAAP financial measures are limited in their usefulness to investors because they have no standardized meaning and are not prepared under any comprehensive set of accounting rules or principles. Accordingly, other companies, including companies in our industry, may calculate similarly titled non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measure as a tool for comparison.
Previous wording
We include the reconciliation of Adjusted EBITDA to GAAP Net Income (Loss), its most closely comparable GAAP measure. We encourage investors and others to review our condensed consolidated financial statements and notes thereto in their entirety included elsewhere in this Quarterly Report, not to rely on any single financial measure, and to consider Adjusted EBITDA only in conjunction with their respective most closely comparable GAAP financial measure.
Current wording
We include the reconciliation of Adjusted EBITDA to GAAP Net Income (Loss), its most directly comparable GAAP measure. We encourage investors and others to review our condensed consolidated financial statements and notes thereto in their entirety included elsewhere in this Quarterly Report, not to rely on any single financial measure, and to consider Adjusted EBITDA only in conjunction with their respective most closely comparable GAAP financial measure.
Showing the first 40 of 55 pairs. Open the source sections for the rest.
Rearranged current paragraphs (8)
Current report — wording carried from elsewhere
Loan repurchase reserve recovery decreased $4.1 million or 159%, to a provision of $1.5 million for the six months ended June 30, 2026, compared to a recovery of $2.5 million for the six months ended June 30, 2025. The prior-year recovery was driven by declining estimated loss exposure associated with historical origination vintages, while the current-year provision reflects updated estimates of expected losses and loan-specific activity during the period.
Current report — wording carried from elsewhere
Insurance services decreased $0.4 million, or 23.4% to $1.1 million for the six months ended June 30, 2026 compared to $1.5 million for the six months ended June 30, 2025. The decrease in insurance services revenue was primarily driven by the sale of the Trussle disposal group in the third quarter of 2025 offset slightly by an increasein insurance related revenue from our Better Cover business.
Current report — wording carried from elsewhere
Other revenue decreased by $0.2 million, or 28.7% to $0.5 million for the six months ended June 30, 2026 compared to $0.7 million for the six months ended June 30, 2025. The decrease in other revenue was primarily driven by lower ancillary revenue activities.
Current report — wording carried from elsewhere
Mortgage interest income decreased $0.1 million, or 1% to $7.7 million for the three months ended June 30, 2026 compared to $7.8 million for the three months ended June 30, 2025. The decrease in mortgage interest income was primarily driven by the mortgage interest income earned on the unpaid principal balance for loans held and serviced during the interim between the origination of the loan and its sale on the secondary market.
Current report — wording carried from elsewhere
Interest income from investments decreased $0.9 million, or 49% to $1.0 million for the six months ended June 30, 2026 compared to $1.9 million for the six months ended June 30, 2025. The decrease in interest income from investments was primarily driven by decreased holdings of investments with maturities less than 90 days.
Current report — wording carried from elsewhere
Warehouse interest expense increased $3.4 million, or 40% to $11.9 million for the six months ended June 30, 2026 compared to $8.5 million for the six months ended June 30, 2025. The increase in warehouse interest expense was primarily driven by increased borrowings on funding facilities used in the mortgage production process to meet the increased origination volume.
Current report — wording carried from elsewhere
Compensation and benefits expenses were $107.3 million for the six months ended June 30, 2026, an increase of $25.6 million or 31% compared with $81.7 million for the six months ended June 30, 2025. The increase in compensation and benefits was primarily driven by higher expense recognized for performance-based equity awards, reflecting changes in the probability of achieving specified performance metrics.
Current report — wording carried from elsewhere
Interest income on loans held for investment increased $12.6 million, or 219% to $18.4 million for the six months ended June 30, 2026 compared to $5.8 million for the six months ended June 30, 2025. The increase in interest income on loans held for investment was driven by increased originations of loans held for investment in our U.K. banking operations. Loans held for investment was $729.2 million and $420.6 million as of June 30, 2026 and 2025.