Better Home & Finance reported a 25% year-over-year surge in funded loan volume in Q2 2025, reaching $1.2 billion, up from $962 million in Q2 2024. The company attributed the boost to the increasing strength of its Tinman AI Platform, growing home equity products, and continued cost discipline. The digital-first lender, led by CEO Vishal Garg, said it remains focused on reaching Adjusted EBITDA breakeven by the end of Q3 2026.
“We are uniquely positioned to win in the current environment through substantial technology advantages in our Tinman AI Platform,” Garg said in a statement.
Despite the top-line gains, Better reported a GAAP net loss of $36 million for the quarter — an improvement from Q1’s $51 million loss and a narrower gap than the $41 million loss in Q2 2024.
AI Investments Show Tangible Gains
The company credited much of its recent momentum to its proprietary Tinman AI Platform and the continued rollout of Betsy, its AI-driven virtual mortgage assistant. Betsy now handles:
- Pre-approvals
- Rate quotes
- Rate locks
- Verbal communication with borrowers to answer questions and verify application data
The platform is also capable of autonomously moving customers toward closing, helping improve application-to-close timelines and unit economics.
“We continue to see increased productivity from our AI investments, particularly Betsy™, which is transforming the borrower journey,” Garg noted.
Loan Production & Channel Performance
Total funded loan volume rose to $1.2 billion, a quarterly high not seen since the onset of the mortgage slowdown. By product:
- Purchase originations were $803 million (67% of total volume)
- HELOC and closed-end second liens grew to $240 million (20% of volume), up 166% YoY
- Refinances reached $162 million (13% of volume), up 109% YoY
Loan counts also rose significantly to 4,032, compared to 2,995 in Q2 2024 and 2,975 in Q1 2025.
Better’s direct-to-consumer (D2C) channel accounted for $774 million (64%) of funded volume, up 16% YoY and 26% QoQ. The remaining 36% came from the Tinman AI and B2B platform channels — key areas of strategic focus for the company.
Financial Metrics
- Revenue: $44 million, up from $32 million in Q2 2024 and $33 million in Q1 2025
- Net Loss: $36 million, improving from $41 million in Q2 2024
- Adjusted EBITDA Loss: $27 million, a sequential improvement from $40 million in Q1, though slightly wider than Q2 2024’s $23 million
Better emphasized that its operational efficiencies and AI-powered platform enhancements are helping to improve conversion and reduce costs, pointing to expected improvements in Adjusted EBITDA performance throughout the remainder of 2025.
Outlook
Looking ahead, Better expects full-year 2025 funded loan volume to exceed 2024 levels, citing favorable AI-driven conversion improvements, efficiency gains, and corporate cost reductions.
“We remain focused on volume, revenue growth, and ongoing expense management despite macro volatility,” said CFO Kevin Ryan.
While challenges remain in the broader housing market, Better appears committed to charting its own course through technology — betting that AI will define the next phase of mortgage lending success.
