Better Home & Finance Holding Company (BETR) Q3 2024 Earnings Call Transcript
Funded Loan Volume $1.035 billion, a 42% increase year-over-year and an 8% increase quarter-over-quarter. The growth was driven by increases across all product categories, particularly home equity products and refinance loans.
Revenue $29 million, compared to $32 million last quarter and $5 million in Q3 last year. The decrease from last quarter was due to non-recurring benefits in Q2 related to a positive mark-to-market impact on the lock pipeline.
Gain on Sale Margin 2.08%, up from 1.58% in Q3 last year, reflecting improved pricing and marketing channel optimization.
Adjusted EBITDA Loss Approximately $39 million, indicating continued investment in growth despite the challenging market.
GAAP Net Loss Approximately $54 million for the third quarter, reflecting ongoing growth expenses.
Total Cash and Investments $480 million as of September 30, 2024, indicating strong capital positioning for growth.
Warehouse Facilities Capacity $425 million as of September 30, 2024, maintaining strong relationships with financing counterparties.
Shares Outstanding Post Reverse Stock Split Approximately 15.1 million shares across Classes A, B, and C, following a reverse stock split of 1 for 50.
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Argan Inc (AGX) Options Volume Hits 1,601 Contracts, 60.1% of Average Daily Volume
- Active Options Trading: Argan Inc's options volume today reached 1,601 contracts, equivalent to approximately 160,100 shares, indicating a trading activity level of 60.1% of its average daily volume over the past month, which may reflect market interest in its future performance.
- High Strike Call Options: The $370 strike call option has shown particularly high volume today, with 109 contracts traded, representing about 10,900 shares, suggesting that investors are optimistic about the stock's potential for future gains.
- Better Home & Finance Options Activity: In parallel, Better Home & Finance Holding Co saw options trading volume of 2,762 contracts, equivalent to approximately 276,200 shares, indicating a trading activity level of 59.1% of its average daily volume over the past month, reflecting market interest in the company.
- Bullish Options Trend: In BETR's trading, the $90 strike call option stands out with a volume of 1,202 contracts traded today, representing about 120,200 shares, demonstrating investor confidence in its future performance.
Robinhood Markets Surges Nearly 300% in 2025, Future Growth in Doubt
- Stock Surge: Robinhood Markets saw its share price soar from $40 to $153.86 in 2025, nearly tripling, driven by its expansion into cryptocurrency and financial services, although recent declines in trading volumes may impact future performance.
- Market Performance: Better Home & Finance emerged as the best-performing U.S.-listed financial stock in 2025, with a 265% increase to $39.87, fueled by its shift towards AI and bullish endorsements from notable fund managers, yet its future growth prospects remain uncertain.
- M&A Activity: Forge Global's shares rose nearly 219% in 2025, primarily due to Charles Schwab's acquisition plan at $45 per share, totaling $660 million, although future growth opportunities appear limited, this could inspire similar M&A transactions in the sector.
- Market Expectations: With a market cap of $104 billion, Robinhood's current trading price is $115.27, and while high growth expectations are still baked into its valuation, a continued decline in trading volumes could lead to further price corrections.
Better Home & Finance Stock Surges 265% Driven by AI and Market Speculation
- Stock Surge: Better Home & Finance's stock soared 265% last year, making it the best-performing U.S.-listed financial stock, primarily driven by significant advancements in AI and heightened market speculation.
- Uncertain Market Outlook: Despite the substantial stock increase, the lack of a rapid housing market recovery raises doubts about the potential for further catalysts, which could impact investor confidence moving forward.
- Acquisition Dynamics: Forge Global's stock rose nearly 219% last year, largely due to Charles Schwab's announcement to acquire the company for $45 per share in a $660 million all-cash deal, indicating large brokerages' interest in the private markets.
- Volume Concerns: Robinhood Markets finished the year up nearly 185%, but declining trading volumes in stocks and cryptocurrencies raise uncertainties about future growth, potentially leading to further stock corrections.
Better Appoints Barry Feierstein as COO to Drive 2026 Growth
- Executive Appointment: Better has appointed Barry Feierstein as Chief Operating Officer to oversee core corporate operations, aiming to enhance organizational efficiency and drive the execution of strategic plans for 2026.
- Extensive Experience: Feierstein brings over 30 years of industry experience, having held executive roles in various finance and education companies, which is expected to provide crucial support for Better's rapid expansion.
- Strategic Alignment: The new COO will work closely with the executive team to ensure the company achieves long-term growth on its AI-powered home finance platform, enhancing its competitive position in the market.
- Industry Recognition: Since 2016, Better has funded over $100 billion in loans and has received multiple industry awards for its innovative digital mortgage solutions, further solidifying its market leadership.
Analyzing the Best-Performing Russell 2000 Stocks in Relation to the Zacks Rank
Russell 2000 Performance: The Russell 2000 index is poised to be a top performer as the Federal Reserve's interest rate cuts benefit small-cap stocks, with a year-to-date increase of 16% and a historically strong period approaching.
Top Performing Stocks: Notable stocks in the Russell 2000 include Celcuity, Better Home & Finance, and Cogent Biosciences, each showing significant year-to-date gains, although they face challenges regarding profitability and analyst coverage.
Investment Risks: While some stocks have shown impressive returns, caution is advised as many are not yet profitable, and investors should monitor earnings estimates and Zacks Rank for better buying opportunities.
AI Investment Outlook: The next phase of AI development is expected to create substantial wealth, with a shift towards new companies poised for growth, suggesting that early investors in this sector may see significant returns.
Eric Jackson Declares Nextdoor Stock as His Latest '100-Bagger' Investment
Eric Jackson's New Investment Pick: Eric Jackson, known for his successful investment in Opendoor Technologies, has identified Nextdoor Holdings as his next high-potential stock, labeling it the "most mispriced Agentic-AI platform of the 2020s," which has led to a significant increase in its stock price.
Thesis on Nextdoor's Value: Jackson argues that Nextdoor possesses a unique "identity graph" that connects verified users to physical addresses, making it a valuable asset in the emerging AI landscape, with potential stock value estimates reaching upwards of $370.
Speculative Nature and Risks: Despite the excitement surrounding Nextdoor, the stock remains speculative, with only one analyst covering it and concerns about the company's ability to monetize its user base effectively, as it has never reported a profitable quarter.
Current Stock Performance: As of the latest report, Nextdoor's stock was trading at approximately $3.15, reflecting a 24.51% increase, although it faces challenges in transitioning from a neighborhood app to a key player in the AI economy.
Argan Inc (AGX) Options Volume Hits 1,601 Contracts, 60.1% of Average Daily Volume
- Active Options Trading: Argan Inc's options volume today reached 1,601 contracts, equivalent to approximately 160,100 shares, indicating a trading activity level of 60.1% of its average daily volume over the past month, which may reflect market interest in its future performance.
- High Strike Call Options: The $370 strike call option has shown particularly high volume today, with 109 contracts traded, representing about 10,900 shares, suggesting that investors are optimistic about the stock's potential for future gains.
- Better Home & Finance Options Activity: In parallel, Better Home & Finance Holding Co saw options trading volume of 2,762 contracts, equivalent to approximately 276,200 shares, indicating a trading activity level of 59.1% of its average daily volume over the past month, reflecting market interest in the company.
- Bullish Options Trend: In BETR's trading, the $90 strike call option stands out with a volume of 1,202 contracts traded today, representing about 120,200 shares, demonstrating investor confidence in its future performance.
Robinhood Markets Surges Nearly 300% in 2025, Future Growth in Doubt
- Stock Surge: Robinhood Markets saw its share price soar from $40 to $153.86 in 2025, nearly tripling, driven by its expansion into cryptocurrency and financial services, although recent declines in trading volumes may impact future performance.
- Market Performance: Better Home & Finance emerged as the best-performing U.S.-listed financial stock in 2025, with a 265% increase to $39.87, fueled by its shift towards AI and bullish endorsements from notable fund managers, yet its future growth prospects remain uncertain.
- M&A Activity: Forge Global's shares rose nearly 219% in 2025, primarily due to Charles Schwab's acquisition plan at $45 per share, totaling $660 million, although future growth opportunities appear limited, this could inspire similar M&A transactions in the sector.
- Market Expectations: With a market cap of $104 billion, Robinhood's current trading price is $115.27, and while high growth expectations are still baked into its valuation, a continued decline in trading volumes could lead to further price corrections.
Better Home & Finance Stock Surges 265% Driven by AI and Market Speculation
- Stock Surge: Better Home & Finance's stock soared 265% last year, making it the best-performing U.S.-listed financial stock, primarily driven by significant advancements in AI and heightened market speculation.
- Uncertain Market Outlook: Despite the substantial stock increase, the lack of a rapid housing market recovery raises doubts about the potential for further catalysts, which could impact investor confidence moving forward.
- Acquisition Dynamics: Forge Global's stock rose nearly 219% last year, largely due to Charles Schwab's announcement to acquire the company for $45 per share in a $660 million all-cash deal, indicating large brokerages' interest in the private markets.
- Volume Concerns: Robinhood Markets finished the year up nearly 185%, but declining trading volumes in stocks and cryptocurrencies raise uncertainties about future growth, potentially leading to further stock corrections.
Better Appoints Barry Feierstein as COO to Drive 2026 Growth
- Executive Appointment: Better has appointed Barry Feierstein as Chief Operating Officer to oversee core corporate operations, aiming to enhance organizational efficiency and drive the execution of strategic plans for 2026.
- Extensive Experience: Feierstein brings over 30 years of industry experience, having held executive roles in various finance and education companies, which is expected to provide crucial support for Better's rapid expansion.
- Strategic Alignment: The new COO will work closely with the executive team to ensure the company achieves long-term growth on its AI-powered home finance platform, enhancing its competitive position in the market.
- Industry Recognition: Since 2016, Better has funded over $100 billion in loans and has received multiple industry awards for its innovative digital mortgage solutions, further solidifying its market leadership.
Analyzing the Best-Performing Russell 2000 Stocks in Relation to the Zacks Rank
Russell 2000 Performance: The Russell 2000 index is poised to be a top performer as the Federal Reserve's interest rate cuts benefit small-cap stocks, with a year-to-date increase of 16% and a historically strong period approaching.
Top Performing Stocks: Notable stocks in the Russell 2000 include Celcuity, Better Home & Finance, and Cogent Biosciences, each showing significant year-to-date gains, although they face challenges regarding profitability and analyst coverage.
Investment Risks: While some stocks have shown impressive returns, caution is advised as many are not yet profitable, and investors should monitor earnings estimates and Zacks Rank for better buying opportunities.
AI Investment Outlook: The next phase of AI development is expected to create substantial wealth, with a shift towards new companies poised for growth, suggesting that early investors in this sector may see significant returns.
Eric Jackson Declares Nextdoor Stock as His Latest '100-Bagger' Investment
Eric Jackson's New Investment Pick: Eric Jackson, known for his successful investment in Opendoor Technologies, has identified Nextdoor Holdings as his next high-potential stock, labeling it the "most mispriced Agentic-AI platform of the 2020s," which has led to a significant increase in its stock price.
Thesis on Nextdoor's Value: Jackson argues that Nextdoor possesses a unique "identity graph" that connects verified users to physical addresses, making it a valuable asset in the emerging AI landscape, with potential stock value estimates reaching upwards of $370.
Speculative Nature and Risks: Despite the excitement surrounding Nextdoor, the stock remains speculative, with only one analyst covering it and concerns about the company's ability to monetize its user base effectively, as it has never reported a profitable quarter.
Current Stock Performance: As of the latest report, Nextdoor's stock was trading at approximately $3.15, reflecting a 24.51% increase, although it faces challenges in transitioning from a neighborhood app to a key player in the AI economy.
