Better Home & Finance’s third quarter revenue is $44 million
Garg said the company’s fourth quarter is off to a substantial start, with total funded loan volume expected to reach a monthly run rate of $500 million “driven by our new strategic partnerships,” he said. Garg attributed the third quarter gains to its growing network of institutional partners and innovations in AI-powered mortgage origination.
“By the end of the next six months, we expect to reach a monthly volume of $1 billion in total funded loans,” he said.
During the company’s Thursday morning earnings call, Garg told investors it is in talks with even more potential partners, including one of the top U.S. home improvement lenders, two of the top U.S. lenders, one of the top U.S. personal lenders and an additional mid-market bank.
Garg did not reveal the names of the partners, but said that “the partner pipeline has really, honestly, exploded, and that’s why we’re seeing a lot of demand.”
HELOC acceptance
As a result, Better has introduced two new partnerships and launched AI-powered HELOC underwriting for small businesses and self-employed borrowers, enabling approvals based solely on bank statements. The company also continued to expand its AI assistant, Betsy.
The digital mortgage lender posted a net loss of approximately $39 million, an improvement from a $54 million loss in the same quarter last year and slightly higher than the $36 million loss in the second quarter of 2025.
Better’s financed loan volume was approximately $1.2 billion, compared to $1.0 billion in the third quarter of 2024 and remained stable compared to the second quarter of 2025. Excluding loans from a terminated partnership in the prior year period, funded loan volume grew 56% year over year.
The company originated approximately 4,086 total loans in the quarter, compared to 3,443 on an annualized basis and 4,032 in the second quarter of 2025.
By product type, purchase loans represented 64% of the $774 million volume financed, while home equity products, including HELOCs and closed-end second lien loans, totaled $253 million, or 21%. Refinancing loans made up the remaining 15%, or $183 million.
During the Q&A portion of the call, Garg teased that more home equity launches will happen soon. In early October, Better introduced its AI-driven wholesale home lending business, using its Tinman AI platform to improve access to HELOC and CES loans.
Year-on-year growth was led by home equity products, which rose 52%, and refinancing loans, which grew 41%. The purchase volume increased by 5%.
Tinman AI Platform drives growth
By channel, direct-to-consumer lending made up 60% of the $727 million volume financed, with Better’s Tinman AI Platform accounting for the remaining 40%.
“It’s better to enable retail mortgage lenders to build their business on the Tinman platform… We have virtually no customer acquisition costs on this channel, and because partners fund loans on our platform, we earn a platform fee and a share of the profits. We’ve grown this channel from 0% just nine months ago to now about 40% of our total revenue,” Garg told investors on the call.
Better’s Tinman platform served approximately 1,148 families and generated $483 million in funded loans during the period, Garg said.
The company also confirmed in its press release that its Chief Financial Officer, Kevin Ryan, will retire effective November 14, 2025. HousingWire reported Ryan’s plans to retire and join PennyMac as senior managing director and chief strategy officer in October.
