Better Home & Finance (BETR)
Market Price (12/21/2025): $33.76 | Market Cap: $515.3 MilSector: Financials | Industry: Commercial & Residential Mortgage Finance
Better Home & Finance (BETR)
Market Price (12/21/2025): $33.76Market Cap: $515.3 MilSector: FinancialsIndustry: Commercial & Residential Mortgage Finance
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 88% | Weak multi-year price returns2Y Excs Rtn is -43%, 3Y Excs Rtn is -164% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -146 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -78% |
| Megatrend and thematic driversMegatrends include Fintech & Digital Payments, and Smart Buildings & Proptech. Themes include Online Banking & Lending, and Real Estate Data Analytics. | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 69% | |
| Stock price has recently run up significantly6M Rtn6 month market price return is 152%, 12M Rtn12 month market price return is 219% | ||
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -115%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -121% | ||
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 280% | ||
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -41% | ||
| High stock price volatilityVol 12M is 117% | ||
| Key risksBETR key risks include [1] persistent operating losses and a concerning pace of cash expenditure and [2] litigation involving its CEO coupled with material weaknesses in internal financial controls. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 88% |
| Megatrend and thematic driversMegatrends include Fintech & Digital Payments, and Smart Buildings & Proptech. Themes include Online Banking & Lending, and Real Estate Data Analytics. |
| Weak multi-year price returns2Y Excs Rtn is -43%, 3Y Excs Rtn is -164% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -146 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -78% |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 69% |
| Stock price has recently run up significantly6M Rtn6 month market price return is 152%, 12M Rtn12 month market price return is 219% |
| Not cash flow generativeCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is -115%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is -121% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 280% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -41% |
| High stock price volatilityVol 12M is 117% |
| Key risksBETR key risks include [1] persistent operating losses and a concerning pace of cash expenditure and [2] litigation involving its CEO coupled with material weaknesses in internal financial controls. |
Valuation, Metrics & Events
BETR Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
1. Strategic Partnerships and Expanded Reach. Better Home & Finance announced several significant strategic partnerships in Q3 2025 and subsequently, aimed at expanding its market reach and driving substantial growth in funded loan volume. The company anticipates achieving a $500 million monthly run-rate in total funded loan volume in Q4 2025 and $1 billion within six months, with these partnerships validating their platform and technology.
2. AI-Driven Technological Advancements and Efficiency. The company's proprietary AI platform, Tinman™, and the AI-driven assistant, Betsy™, have significantly improved operational efficiencies, including an increase in lead-to-lock conversion rates from 3.3% to 6.1%. Additionally, new AI underwriting capabilities for self-employed borrowers have been introduced, streamlining loan approval processes.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| BETR Return | � | � | 2% | -92% | -78% | 296% | � |
| Peers Return | � | � | -43% | 98% | -7% | 20% | � |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 16% | 112% |
Monthly Win Rates [3] | |||||||
| BETR Win Rate | � | 50% | 42% | 50% | 33% | 58% | |
| Peers Win Rate | � | 46% | 37% | 55% | 45% | 45% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 73% | |
Max Drawdowns [4] | |||||||
| BETR Max Drawdown | � | � | -1% | -96% | -78% | -11% | |
| Peers Max Drawdown | � | � | -54% | -6% | -27% | -24% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: RKT, UWMC, PFSI, LDI, Z.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/19/2025 (YTD)
How Low Can It Go
| Event | BETR | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -99.3% | -25.4% |
| % Gain to Breakeven | 13416.9% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
Compare to ESNT, WD, SNFCA, RKT, PFSI
In The Past
Better Home & Finance's stock fell -99.3% during the 2022 Inflation Shock from a high on 8/2/2023. A -99.3% loss requires a 13416.9% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth over time.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
Trade Ideas
Select past ideas related to BETR. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | WU | Western Union | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 13.5% | 13.5% | -0.4% |
| 11212025 | COIN | Coinbase Global | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 2.0% | 2.0% | -0.5% |
| 11142025 | PYPL | PayPal | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -4.8% | -4.8% | -7.5% |
| 11142025 | V | Visa | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 5.8% | 5.8% | -2.7% |
| 11072025 | WD | Walker & Dunlop | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -12.1% | -12.1% | -12.1% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 11212025 | WU | Western Union | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 13.5% | 13.5% | -0.4% |
| 11212025 | COIN | Coinbase Global | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 2.0% | 2.0% | -0.5% |
| 11142025 | PYPL | PayPal | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -4.8% | -4.8% | -7.5% |
| 11142025 | V | Visa | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 5.8% | 5.8% | -2.7% |
| 11072025 | WD | Walker & Dunlop | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -12.1% | -12.1% | -12.1% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Better Home & Finance
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 26.02 |
| Mkt Cap | 4.0 |
| Rev LTM | 1,925 |
| Op Inc LTM | -90 |
| FCF LTM | -745 |
| FCF 3Y Avg | -1,067 |
| CFO LTM | -535 |
| CFO 3Y Avg | -843 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 46.2% |
| Rev Chg 3Y Avg | -0.3% |
| Rev Chg Q | 28.3% |
| QoQ Delta Rev Chg LTM | 5.9% |
| Op Mgn LTM | -3.6% |
| Op Mgn 3Y Avg | -8.5% |
| QoQ Delta Op Mgn LTM | 3.1% |
| CFO/Rev LTM | -34.5% |
| CFO/Rev 3Y Avg | -58.1% |
| FCF/Rev LTM | -38.7% |
| FCF/Rev 3Y Avg | -60.2% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 4.0 |
| P/S | 2.3 |
| P/EBIT | -3.1 |
| P/E | -4.6 |
| P/CFO | -3.0 |
| Total Yield | -0.2% |
| Dividend Yield | 0.4% |
| FCF Yield 3Y Avg | -63.0% |
| D/E | 1.9 |
| Net D/E | 1.7 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 2.7% |
| 3M Rtn | -13.7% |
| 6M Rtn | 37.2% |
| 12M Rtn | 25.0% |
| 3Y Rtn | 82.3% |
| 1M Excs Rtn | -2.6% |
| 3M Excs Rtn | -20.2% |
| 6M Excs Rtn | 21.3% |
| 12M Excs Rtn | 5.5% |
| 3Y Excs Rtn | -13.2% |
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 11/13/2024 | -5.4% | -10.0% | -17.8% |
| 3/28/2024 | -8.7% | -16.7% | -27.1% |
| 11/14/2023 | -7.8% | -11.0% | 10.2% |
| 8/28/2023 | -14.3% | -32.4% | -60.5% |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 1 |
| # Negative | 4 | 4 | 3 |
| Median Positive | 10.2% | ||
| Median Negative | -8.3% | -13.8% | -27.1% |
| Max Positive | 10.2% | ||
| Max Negative | -14.3% | -32.4% | -60.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 9302025 | 11132025 | 10-Q 9/30/2025 |
| 6302025 | 8132025 | 10-Q 6/30/2025 |
| 3312025 | 5142025 | 10-Q 3/31/2025 |
| 12312024 | 3192025 | 10-K 12/31/2024 |
| 9302024 | 11142024 | 10-Q 9/30/2024 |
| 6302024 | 8142024 | 10-Q 6/30/2024 |
| 3312024 | 5152024 | 10-Q 3/31/2024 |
| 12312023 | 4082024 | 10-K 12/31/2023 |
| 9302023 | 11142023 | 10-Q 9/30/2023 |
| 12312022 | 7242023 | S-4/A 12/31/2022 |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |