Better Home & Finance Holding Co
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
View on SEC.govAbout this filing
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.
Sep 30, 2026 · Filed Nov 9, 2026
BETR$20.15+4.7%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001628280-26-072302
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 195 previous paragraphs and 197 current paragraphs.
131 unchanged; 51 reworded; 14 added; 12 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 16 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 (14)
Current report
Mortgage rates remained elevated and increased over the quarter. According to Freddie Mac, the average 30-year fixed mortgage rate rose from 6.43% for the week ended July 2, 2026 to 7.03% for the week ended September 24, 2026. Changes in inflation expectations, Treasury yields and geopolitical developments contributed to uncertainty around the interest rate outlook. Continued conflict in the Middle East, including disruptions affecting the Strait of Hormuz, also contributed to uncertainty in energy markets and broader financial conditions.
Current report
Elevated borrowing costs continued to constrain mortgage origination activity, with rising rates weighing on both purchase and refinance demand toward quarter-end. Prevailing mortgage rates limited the incentive for borrowers with existing lower-rate mortgages to refinance. Higher home prices and borrowing costs also continued to present affordability challenges, despite improvements in housing inventory. Purchase activity remained influenced by life events such as relocation, household formation and job changes, although these factors did not eliminate the effects of affordability pressures. In this environment, diversified product offerings, including home equity products, can help lenders address evolving consumer financing needs by enabling homeowners to access available equity without refinancing their existing first-lien mortgages.
Current report
Loan repurchase provision decreased $0.1 million or 7.1%, to a provision of $1.3 million for the three months ended September 30, 2026, compared to a provision of $1.4 million for the three months ended September 30, 2025.
Current report
Compensation and benefits expenses were $35.7 million for the three months ended September 30, 2026, a decrease of $2.2 million or 5.8% compared with $37.8 million for the three months ended September 30, 2025. The decrease in compensation and benefits was primarily driven by lower expense recognized for stock based compensation and base compensation due to reduced Company headcount.
Current report
General and administrative expenses were $40.3 million for the nine months ended September 30, 2026, an increase of $9.9 million or 32.6% as compared with $30.4 million in the nine months ended September 30, 2025. The increase in general and administrative expenses was driven primarily by expenses related to the consent solicitation during the third quarter.
Current report
Marketing and advertising expenses were $26.0 million for the nine months ended September 30, 2026, a decrease of $4.3 million or 14.1% as compared with $30.3 million in the nine months ended September 30, 2025. The decrease was primarily driven by lower customer acquisition spend.
Current report
Loan origination expenses were $17.3 million for the nine months ended September 30, 2026, an increase of $7.1 million or 70.0%, as compared with $10.2 million in the nine months ended September 30, 2025. The increase in loan origination expenses was driven by the increase in Loan Volume during the same period.
Current report
Other expenses were $5.5 million for the nine months ended September 30, 2026, a decrease of $5.1 million or 47.8%, as compared with $10.6 million in the nine months ended September 30, 2025. The decrease in other expenses was primarily driven by a decrease in the fair value of liability-classified warrants and equity-related liabilities.
Current report
Interest income from investments decreased $0.9 million, or 32.9% to $1.8 million for the three months ended September 30, 2026 compared to $2.6 million for the three months ended September 30, 2025. The decrease in interest income from investments was driven by a lower average investment balance on the balance sheet.
Current report
Interest income from investments increased $0.7 million, or 14.1% to $6.1 million for the nine months ended September 30, 2026 compared to $5.3 million for the nine months ended September 30, 2025. The increase in interest income from investments was driven by a higher average investment balance on the balance sheet.
Current report
(4)Impairment, and other expenses are primarily comprised of employee termination benefits, including severance costs, real estate restructuring losses, impairment charges and asset disposal losses, partially offset by London House Exchange Ltd. asset disposal gains.
Current report
(5)(Gain) loss on disposal of businesses represents gains and losses on the sale of non-core U.K. subsidiaries, including Better HomeOwnership Ltd. in the first quarter of 2026 and an 80% interest in London House Exchange Ltd. in the third quarter of 2026, included within other expenses (income) in our condensed consolidated statements of operations and comprehensive loss.
Current report
(6)Transaction expenses consist of legal fees incurred in connection with the sale of London House Exchange Ltd., the proposed sale of Birmingham Bank, and a bridge financing arrangement.
Current report
Nine Months Ended September 30, 2026 as Compared to Nine Months Ended September 30, 2025
Removed paragraphs (12)
Previous 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.
Previous 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.
Previous report
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.
Previous 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.
Previous report
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 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.
Previous report
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 report
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 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.
Previous 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.
Previous report
(4)Impairment, and other expenses are primarily comprised of employee one-time termination benefits, real estate restructuring losses, impairment of disposal groups classified as held for sale, and impairment of property and equipment.
Previous report
Six Months Ended June 30, 2026 as Compared to Six Months Ended June 30, 2025
Reworded paragraphs (51)
Previous wording
Founded in 2015, we built our business with an AI-first mindset that remains at the core of everything we do. Our proprietary platform, Tinman®, is trained on $110B in origination volume and grew its share of volume by 38% from 2024 to 2025. The platform automates the most time-consuming parts of the mortgage process and enables faster decisions to create a better experience for consumers navigating the biggest financial decision of their life.
Current wording
Founded in 2015, we built our business with an AI-first mindset that remains at the core of everything we do. Our proprietary platform, Tinman®, is trained on over $110B in origination volume and grew its share of volume by 35% from 2024 to 2025. The platform automates the most time-consuming parts of the mortgage process and enables faster decisions to create a better experience for consumers navigating the biggest financial decision of their life.
Previous 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.
Current wording
The mortgage industry continued to operate in a dynamic macroeconomic and geopolitical environment during the third quarter of 2026. In September 2026, the U.S. Federal Reserve increased the federal funds target range by 25 basis points to 3.75% to 4.00%, citing inflation that remained elevated relative to its long-term 2% target. Persistent inflation and uncertainty regarding the future path of monetary policy continued to influence mortgage financing conditions.
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 and six months ended June 30, 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 nine months ended September 30, 2026 and 2025 is as follows:
Previous wording
As we originate mortgages, there is a short period between the funding of a loan and its sale into our investor network. During this time, we borrow against our warehouse lines of credit as a source of capital and pay interest on those borrowings. It is not uncommon for a mortgage to be awaiting sale while the borrower's first interest payment is collected. In these instances, Better collects and recognizes that interest as revenue. Once the mortgage is sold to our investor network, the warehouse line of credit is repaid and we do not collect any future interest payments on that loan.
Current wording
As we originate mortgages, there is a short period between the funding of a loan and its sale into our investor network. During this time, we borrow against our warehouse lines of credit as a source of capital and pay interest on those borrowings. Net interest income also includes interest earned on investments, less non-funding interest expense. It is not uncommon for a mortgage to be awaiting sale while the borrower's first interest payment is collected. In these instances, Better collects and recognizes that interest as revenue. Once the mortgage is sold to our investor network, the warehouse line of credit is repaid and we do not collect any future interest payments on that loan.
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 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.
Current wording
International lending revenue - International lending revenue consists of revenue from our international lending activities, primarily in the U.K., which expanded through acquisitions in prior years. During 2024, management adopted a plan to sell several entities in the U.K. Our U.K. digital mortgage broker, Trussle, was sold in September 2025, with broker fee revenue from that business recognized only up to the disposal date. This was followed by the sale of Better HomeOwnership in March 2026 and the sale of an 80% ownership interest in London House Exchange Ltd. (“LHX”) in September 2026, following which LHX was deconsolidated. The sale of Birmingham Bank is expected to be completed in early 2027. As these disposals progress, revenue from our non-core international operations is winding down.
Previous 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.
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 loans.
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 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.
Current wording
Historically, we generated international lending revenue primarily from broker fees earned through our digital mortgage broker in the U.K. During 2024, management adopted a plan to sell several entities in the U.K. The digital mortgage broker was sold in the three months ended September 30, 2025, with revenue from that business recognized only up to the disposal date. Additional sales were completed in the three-month periods ended March 31 and September 30, 2026. The remaining disposal is expected to be completed in early 2027. As these disposals progress, revenue from our non-core international operations is winding down. Following completion of the remaining disposal, we do not expect to generate material revenue from these operations.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
Three and Six Months Ended June 30, 2026 as Compared to Three and Six Months Ended June 30, 2025
Current wording
Three and Nine Months Ended September 30, 2026 as Compared to Three and Nine Months Ended September 30, 2025
Previous 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.
Current wording
Gain on sale of loans, net increased $5.2 million or 14.5% to $41.5 million for the three months ended September 30, 2026 compared to $36.2 million for the three months ended September 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
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 wording
Gain on sale of loans, net increased $44.9 million or 49.0% to $136.4 million for the nine months ended September 30, 2026 compared to $91.5 million for the nine months ended September 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
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 wording
Broker revenue increased $0.1 million, or 4.4% to $1.7 million for the three months ended September 30, 2026, compared to $1.6 million for the three months ended September 30, 2025. The increase was primarily due to higher broker revenue generated from third-party loan originations through in-market origination operations.
Previous wording
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 wording
Broker revenue decreased $0.6 million, or 10.8% to $4.6 million for the nine months ended September 30, 2026, compared to $5.1 million for the nine months ended September 30, 2025. The decrease was primarily due to ongoing efforts to bringing broker-related origination volume in-house instead of passing the leads to brokers
Previous 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.
Current wording
Loan repurchase reserve recovery decreased $4.0 million or 356%, to a provision of $2.8 million for the nine months ended September 30, 2026, compared to a recovery of $1.1 million for the nine months ended September 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 $1.8 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.
Current wording
International lending revenue decreased $1.5 million, or 98.9% to an immaterial amount for the three months ended September 30, 2026 compared to $1.5 million for the three months ended September 30, 2025. The decrease in international lending revenue was primarily driven by the sale of the Trussle group in the third quarter of 2025.
Previous wording
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 wording
International lending revenue decreased $4.9 million, or 98.4% to $0.1 million for the nine months ended September 30, 2026 compared to $4.9 million for the nine months ended September 30, 2025. The decrease in international lending revenue was primarily driven by the sale of the Trussle group in the third quarter of 2025.
Previous 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.
Current wording
Insurance services decreased $0.1 million, or 17.7% to $0.5 million for the three months ended September 30, 2026 compared to $0.6 million for the three months ended September 30, 2025. The decrease in insurance services revenue was primarily driven by the sale of the Trussle group in the third quarter of 2025 offset slightly by an increasein insurance related revenue from our Better Cover business.
Previous wording
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 wording
Insurance services decreased $0.5 million, or 21.8% to $1.6 million for the nine months ended September 30, 2026 compared to $2.1 million for the nine months ended September 30, 2025. The decrease in insurance services revenue was primarily driven by the sale of the Trussle 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 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 wording
Real estate services decreased $0.3 million, or 58.3% to $0.2 million for the three months ended September 30, 2026 compared to $0.5 million for the three months ended September 30, 2025 due to a decrease in real estate transaction volume in the third quarter of 2026.
Previous 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.
Current wording
Real estate services decreased $0.9 million, or 55.8% to $0.7 million for the nine months ended September 30, 2026 compared to $1.6 million for the nine months ended September 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 $0.1 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.
Current wording
Other revenue decreased by $0.3 million, or 65.0% to $0.2 million for the three months ended September 30, 2026 compared to $0.5 million for the three months ended September 30, 2025. The decrease in other revenue was primarily driven by lower ancillary revenue activities.
Previous wording
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 wording
Other revenue decreased by $0.5 million, or 43.3% to $0.7 million for the nine months ended September 30, 2026 compared to $1.2 million for the nine months ended September 30, 2025. The decrease in other revenue was primarily driven by lower ancillary revenue activities.
Previous wording
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 wording
Mortgage interest income increased $0.9 million, or 12.4% to $8.0 million for the three months ended September 30, 2026 compared to $7.1 million for the three months ended September 30, 2025. The increase 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.
Previous 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.
Current wording
Mortgage interest income increased $1.3 million, or 6.0% to $22.6 million for the nine months ended September 30, 2026 compared to $21.3 million for the nine months ended September 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 $0.1 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.
Current wording
Interest income from investments increased $0.1 million, or 9.9% to $0.7 million for the three months ended September 30, 2026 compared to $0.6 million for the three months ended September 30, 2025. The increase in interest income from investments was primarily driven by increased holdings of investments with maturities less than 90 days.
Previous wording
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 wording
Interest income from investments decreased $0.9 million, or 34.9% to $1.6 million for the nine months ended September 30, 2026 compared to $2.5 million for the nine months ended September 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 $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.
Current wording
Warehouse interest expense increased $0.6 million, or 10.2% to $6.2 million for the three months ended September 30, 2026 compared to $5.6 million for the three months ended September 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
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 wording
Warehouse interest expense increased $4.0 million, or 28.2% to $18.1 million for the nine months ended September 30, 2026 compared to $14.1 million for the nine months ended September 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
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 wording
Other interest expense decreased $1.7 million, or 98.9% to an immaterial amount for the nine months ended September 30, 2026 compared to $1.7 million for the nine months ended September 30, 2025. The decrease was primarily due to the extinguishment of the Convertible Notes in April 2025. See Note 10 for additional information.
Previous 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.
Current wording
Compensation and benefits expenses were $143.0 million for the nine months ended September 30, 2026, an increase of $23.4 million or 19.6% compared with $119.6 million for the nine months ended September 30, 2025. The increase in compensation and benefits was primarily driven by higher expense recognized for performance-based equity awards.
Previous 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.
Current wording
General and administrative expenses were $21.0 million for the three months ended September 30, 2026, as compared with $9.1 million in the three months ended September 30, 2025. The increase in general and administrative expenses was driven primarily by expenses related to the consent solicitation during the third quarter.
Previous 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.
Current wording
Technology expenses were $7.2 million for the three months ended September 30, 2026, an increase of $1.1 million or 17.0% as compared with $6.2 million in the three months ended September 30, 2025. The increase in technology expenses was driven primarily by the increase in costs related to software and data warehouse vendors.
Previous wording
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 wording
Technology expenses were $24.4 million for the nine months ended September 30, 2026, an increase of $5.1 million or 26.7% as compared with $19.2 million in the nine months ended September 30, 2025. The increase in technology expenses was driven primarily by the increase in costs related to software and data warehouse vendors.
Previous wording
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 wording
Marketing and advertising expenses were $7.3 million for the three months ended September 30, 2026, a decrease of $3.1 million or 29.9% as compared with $10.5 million in the three months ended September 30, 2025. The decrease was primarily driven by lower customer acquisition spend.
Previous 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.
Current wording
Loan origination expenses were $6.1 million for the three months ended September 30, 2026, an increase of $2.3 million or 62.6%, as compared with $3.7 million in the three months ended September 30, 2025. The increase in loan origination expenses was driven by the increase in Loan Volume during the same period.
Previous wording
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 wording
Other expenses were $0.6 million for the three months ended September 30, 2026, a decrease of $7.3 million or 92.7%, as compared with $7.8 million in the three months ended September 30, 2025. The decrease in other expenses was primarily driven by a decrease in the fair value of liability-classified warrants and equity-related liabilities.
Previous wording
Three and Six Months Ended June 30, 2026 as Compared to Three and Six Months Ended June 30, 2025
Current wording
Three and Nine Months Ended September 30, 2026 as Compared to Three and Nine Months Ended September 30, 2025
Previous 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.
Current wording
Interest income on loans held for investment increased $2.7 million, or 41.0% to $9.2 million for the three months ended September 30, 2026 compared to $6.6 million for the three months ended September 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 $720.5 million and $623.4 million as of September 30, 2026 and 2025.
Previous wording
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.
Current wording
Interest income on loans held for investment increased $15.3 million, or 124.1% to $27.6 million for the nine months ended September 30, 2026 compared to $12.3 million for the nine months ended September 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 $720.5 million and $623.4 million as of September 30, 2026 and 2025.
Previous 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.
Current wording
Interest expense on customer deposits increased $1.3 million, or 20.0% to $7.9 million for the three months ended September 30, 2026 compared to $6.6 million for the three months ended September 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 $729.0 million and $694.8 million as of September 30, 2026 and 2025.
Previous wording
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 wording
Interest expense on customer deposits increased $11.6 million, or 89.9% to $24.5 million for the nine months ended September 30, 2026 compared to $12.9 million for the nine months ended September 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 $729.0 million and $694.8 million as of September 30, 2026 and 2025.
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Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
repurchases of loans under standard representations and warranties. We are also subject to contingencies which may have an impact on the use of our cash.
Rearranged previous paragraphs (1)
Previous report — wording carried 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.