Better Home & Finance Misses Q3 Revenue and EBITDA Guidance, Blames Proxy Fight
BETR is trading near its 52-week low of $7.73 (0.9% above the low).
Summary
Better Home & Finance reported preliminary Q3 2026 results that missed its own guidance on revenue and Adjusted EBITDA. Total net revenues came in at $45.1M, below the $49.0M-$52.0M range, while Adjusted EBITDA loss widened to $24.8M-$25.8M versus guidance of $15.0M-$18.0M. The company attributes the shortfall to interest rate headwinds and $8M in proxy-related legal and PR expenses from the board fight with founder Vishal Garg. Excluding those costs, Adjusted EBITDA loss would have been about $17.8M, within guidance. Loan volume of $1.395B was within the guided range but down 16.3% sequentially. The company also announced plans to sell Birmingham Bank and borrow against its position to boost cash to over $140M, and targets Adjusted EBITDA breakeven by year-end. This follows the October 6 8-K confirming Garg's successful consent solicitation that removed five directors, and the October 9 8-K disclosing Nasdaq non-compliance. The preliminary nature of the results and the ongoing board turmoil add uncertainty, but the specific miss versus guidance and the cash-raising plans are material for traders. The company sees a Q3 loss of $33.1M to $34.1M, and has $81M in cash and cash equivalents and $9M in restricted cash.
Updates
· SEC 8-K — The 8-K attaches the press release with preliminary Q3 results: total net revenues $45.1M, adjusted EBITDA loss $24.8M-$25.8M, and $8M proxy-related expenses.
At the time of this announcement, BETR was trading at $7.80 on NASDAQ in the Finance sector, with a market capitalization of approximately $148.3M. The 52-week trading range was $7.73 to $92.69. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: BusinessWire.