It reports a year of significant growth and technological advancements
Better Home & Finance Holding Company reported significant growth in its 2024 fourth-quarter and full-year financial results, citing increased funded loan volumes and advancements in AI-driven technology initiatives.
The company’s total funded loan volume for 2024 reached $3.6 billion, a 19% increase year-over-year, with direct-to-consumer (D2C) loan volume surging 55% to $2.6 billion. Fourth-quarter funded loan volume rose 77% year-over-year to $936 million, though it declined 10% from the third quarter due to seasonal market trends. Revenue for the year grew 50% to $108 million.
“We are pleased with the growth we achieved in 2024 through a challenged environment and the early traction our AI and ‘NEO Powered by Better’ initiatives are seeing,” said Vishal Garg, CEO and founder of Better. “Our team delivered growth and continued improvements towards profitability despite another year of continued macro headwinds.”
AI and technology enhancements
Better expanded its AI capabilities with Betsy™, its voice-based AI loan assistant, now handling over 115,000 customer interactions per month. According to a news release, the company also leveraged its Tinman™ AI underwriting system, with approximately 40% of loan files undergoing automated review.
The company is also making progress on its ‘NEO Powered by Better’ initiative, which utilizes Tinman™ to assist local loan officers. Since launching in January 2025, the program has onboarded 110 loan officers and facilitated $95 million in funded loan volume.
Financial performance
While revenue increased, Better posted a net loss of $206 million for the year, improving from a $536 million loss in 2023. The company also reduced its adjusted EBITDA loss to $121 million, compared to $163 million in 2023.
Fourth-quarter revenue totaled $25 million, up from $18 million in Q4 2023 but down from $29 million in Q3 2024. The company reported a net loss of $59 million for the quarter.
Loan portfolio growth
Better’s growth has been attributed to product diversification. HELOC and home equity loans reportedly increased by 416% year-over-year in Q4. Purchase loans accounted for 74% of funded volume, with refinance and HELOC loans comprising the remainder.
Looking ahead, Better expects to increase funded loan volume in 2025 through continued technology advancements and expansion of its distribution channels.
“While we remain hopeful for an improved rate environment, there remains a great deal of uncertainty, and our operational plan includes limited rate relief in 2025,” said Kevin Ryan, CFO of Better. “As such, we remain focused on driving operating leverage through continued investments in efficiency, corporate cost management, and diversifying our distribution channels.”
Better’s leadership will discuss these results in a webcast on March 19, 2025, at 8:30 am ET. More details are available on the company’s investor relations website.
What do you think about Better’s AI-driven growth strategy? Share your insights in the comments below.
