UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~March 3031, ~~2025~~2026

ORor


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 001-40143

Better Home & Finance Holding Company

(Exact name of registrant as specified in its charter)


Delaware						93-3029990
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

1 World Trade Center

285 Fulton Street, 80th Floor, Suite A

New York, NY 10007

(Address of ~~Principal~~principal ~~Executive~~executive ~~Offices~~offices, including ~~zip~~Zip ~~code~~Code)

(415) 522-8837

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A common stock, par value $0.0001 per share	BETR	The Nasdaq Stock Market LLC
Warrants exercisable for one share of Class A common stock at an exercise price of $575.00	BETRW	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o Accelerated filer ox Non-accelerated filer xo Smaller reporting company x Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of May 1, 2026, there were 13,086,244 shares of Class A common stock, 4,346,034 shares of Class B common stock and 1,437,545 shares of Class C common stock of the registrant issued and outstanding.

Table of Contents

TABLE OF CONTENTS

			Page
Part I - Financial Information			1
Item 1. Financial Statements			1
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			3533
Item 3. Quantitative and Qualitative Disclosures About Market Risk			5149
Item 4. Controls and Procedures			5149
Part II - Other Information			5350
Item 1. Legal Proceedings			5350
Item 1A. Risk Factors			5451
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			5551
Item 3. Defaults Upon Senior Securities			5552
Item 4. Mine Safety Disclosures			5552
Item 5. Other Information			5552
Item 6. Exhibits			5753
Signatures			5854

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q (the “Quarterly Report”) of Better Home & Finance Holding Company (the “Company,” “Better,” “we,” “our” or “us”) contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.We ~~These~~intend such forward-looking statements ~~constitute~~to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and ~~are~~Section ~~not~~21E ~~guarantees~~of the Securities Exchange Act of ~~performance~~1934, as amended (the “Exchange Act”). Such statements can be identified by the fact that they do not relate strictly to historical or current facts. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” or the negatives of these terms or variations of them or similar terminology., although not all forward-looking statements contain such identifying words. ~~Such~~They ~~forward-looking~~may ~~statements~~appear ~~are~~in ~~based~~a onnumber ~~management’s~~of ~~current~~places ~~expectations~~throughout ~~and~~this ~~assumptions~~Quarterly ~~about~~Report, ~~future~~including ~~events~~Part ~~and~~I, ~~are~~Item ~~based~~2, on“Management’s ~~currently~~Discussion ~~available~~and ~~information~~Analysis asof toFinancial ~~the~~Condition ~~outcome~~ and ~~timing~~Results of ~~future~~Operations” ~~events.~~and ~~Except~~include asstatements ~~otherwise~~regarding ~~required~~our ~~by applicable law~~intentions, webeliefs ~~disclaim~~or ~~any~~current ~~duty~~expectations toconcerning, ~~update~~among ~~any~~other ~~forward-looking statements~~things, ~~all~~our future results of ~~which~~operations, ~~are~~financial ~~expressly~~condition ~~qualified~~and byliquidity, the ~~statements~~divestiture inof ~~this~~international-based ~~section~~assets, toincluding ~~reflect~~Birmingham ~~events~~Bank, orfurther ~~circumstances~~equity ~~after~~issuances ~~the~~and ~~date~~our intended use of ~~this~~net ~~quarterly~~proceeds ~~report~~from onour ~~Form~~issuances ~~10-Q~~of equity securities. ~~These~~Such forward-looking statements ~~involve~~are abased ~~number~~on ofmanagement’s ~~risks,~~current ~~uncertainties~~expectations ~~(some~~and ofassumptions ~~which~~about future events and are ~~beyond~~based ~~our~~on ~~control)~~currently oravailable ~~other~~information ~~assumptions~~as ~~that~~to ~~may~~the ~~cause~~outcome ~~actual~~and ~~results~~timing orof ~~performance~~future toevents. beExcept ~~materially~~as ~~different~~otherwise ~~from~~required ~~those~~by ~~expressed~~applicable orlaw, ~~implied~~we bydisclaim ~~these~~any ~~forward-looking~~duty ~~statements.~~to ~~Forward~~update any forward-looking statements, inall ~~this~~of ~~quarterly~~which ~~report~~are onexpressly ~~Form~~qualified ~~10-Q~~by ~~and~~ the ~~associated~~statements ~~risks,~~in ~~uncertainties~~this section, ~~assumptions~~to ~~and~~reflect ~~other~~events ~~important~~or ~~factors~~circumstances ~~may~~after ~~include,~~the ~~but~~date ~~are~~of ~~not~~this ~~limited~~Quarterly ~~to:~~Report.

~~•Factors~~These ~~relating~~forward-looking tostatements involve a number of risks, uncertainties (some of which are beyond our ~~business~~control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. Forward-looking statements in this Quarterly Report and the associated risks, ~~operations~~uncertainties, assumptions and ~~financial~~other ~~performance~~important factors may include, ~~including~~but are not limited to:

•Our ability to operate under and maintain or improve our business model;

•The effect of interest rates on our business, results of operations, and financial condition;

•Our ability to expand our customer base, grow market share in our existing markets and enter into new markets;

•Our ability to respond to general economic conditions, particularly elevated interest rates and lower home sales and refinancing activity;

•Our ability to restore our growth and our expectations regarding the development and long-term expansion of our business;

•Our ability to comply with laws and regulations related to the operation of our business, including any changes to such laws and regulations;

•Our ability to achieve and maintain profitability in the future;

•Our ability and requirements to raise additional financing in the future;

•Our estimates regarding expenses, future revenue, capital and additional financing requirements;

•Our ability to maintain, expand and be successful in our strategic relationships with third parties;

•Our ability to remediate existing material weaknesses and implement and maintain an effective system of internal controls over financial reporting;

•Our ability to develop new products, features and functionality that meet market needs and achieve market acceptance;

•~~Our~~The ~~ability~~timing ~~to retain~~of, ~~identify~~ and ~~hire~~ability ~~individuals~~to ~~for~~consummate, the ~~roles~~sale weof ~~seek~~Birmingham ~~to fill and staff our operations appropriately~~Bank;

•~~The~~Our ~~involvement~~ability ~~of our CEO in litigation related~~ to ~~prior~~maintain, ~~business activities~~protect, ~~our~~assert ~~business activities~~ and ~~associated~~enhance ~~negative~~our ~~media~~intellectual ~~coverage~~property rights;

•~~Our~~The ~~ability~~effect toof ~~recruit~~the ~~and retain additional directors~~development, ~~members~~proliferation ~~of senior management~~ and ~~other~~use ~~team~~of ~~members,~~artificial ~~including~~intelligence ~~our~~(“AI”) ~~ability~~on ~~in general, and~~ our ~~CEO’s ability in particular, to maintain an experienced executive team~~business;

•Our ability to successfully manage our international and banking operations

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•~~Our~~volatility ~~ability~~in tothe ~~maintain~~market ~~and~~price ~~improve~~of ~~morale~~our ~~and~~Class ~~workplace~~A ~~culture~~common ~~and~~stock, ~~respond~~including ~~effectively~~volatility due to ~~the~~potential ~~effects~~short squeezes; high degrees of ~~negative~~public and social media coverage by third parties; future sales of substantial amounts of our Class A common stock, or the perception that such sales may occur; and

•~~Our~~The ~~ability~~impact toof ~~maintain,~~geopolitical ~~protect~~developments, ~~assert~~including ~~and~~the ~~enhance~~ongoing ~~our~~military ~~intellectual~~conflict ~~property~~in ~~rights~~the Middle East.

~~•Factors~~Additional ~~relating~~risks and uncertainties that could cause actual results or performance to ~~our~~be ~~capital~~materially ~~structure~~different from those expressed or implied by these forward-looking statements include those matters discussed in Part I, ~~governance~~Item ~~and~~1A. “Risk Factors” of the ~~market~~Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as updated by Part II, Item 1A. “Risk Factors” in this Quarterly Report. Should one or more of these risks or uncertainties materialize, or should any of our ~~securities~~assumptions prove incorrect, ~~including:~~actual results may vary in material respects from those described in these forward-looking statements.

•volatility in the market price of our Class A common stock, including volatility due to potential short squeezes; high degrees of public and social media coverage by third parties; future sales of substantial amounts of our Class A common stock, or the perception that such sales may occur;

•The existence of multiple classes of common stock, which is comprised of our Class A common stock, our Class B common stock and our Class C common stock, and its impact on the liquidity and value of the Class A common stock;

•The limited experience of our directors and management team in overseeing a public company;

•Our ability to maintain the listing of our Class A common stock and Public Warrants on the Nasdaq Stock Market LLC (“Nasdaq”);

•Our ability to maintain certain lines of credit and obtain future financing on commercially favorable terms to fund loans and otherwise operate our business; and

•The liquidity and trading of our Class A common stock and Warrants.

Additional risks and uncertainties that could cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements include those matters discussed in Part I, Item 1A. “Risk Factors” of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by Part II, Item 1A. "Risk Factors" in this quarterly report on Form 10-Q. The forward-looking statements contained in this quarterly report on Form 10-Q are based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those described in these forward-looking statements.

Available Information and Website Disclosure

Our website address is www.better.com. We ~~are~~make ~~required~~available tofree ~~file~~of charge through our website our annual reports on Form 10-K, quarterly ~~and~~reports on Form 10-Q, current reports on Form 8-K, proxy statements, registration statements and ~~other~~amendments ~~information~~to those reports filed or furnished pursuant to the Exchange Act, as soon as reasonably practicable after we electronically file such material with, or furnish them to the Securities and Exchange Commission (“SEC”). ~~Our~~The ~~filings~~SEC maintains a website that contains reports, proxy statements and other information regarding issuers that file electronically with the SEC. ~~are~~These ~~also~~materials ~~available~~may tobe ~~the~~obtained ~~public~~electronically ~~through~~by accessing the SEC’s website at www.sec.gov.

~~You~~Investors ~~can~~and ~~also~~others ~~find~~should ~~more~~note that we announce material financial and operational information ~~about~~to usour ~~online~~investors atusing press releases, SEC filings and public conference calls and webcasts, and by postings on our investor relations ~~website~~site ~~located~~ at investors.better.com. ~~Filings~~We wemay ~~make~~also ~~with~~use ~~the~~our ~~SEC~~website as a distribution channel for material Company information. In addition, you may automatically receive email alerts and ~~any~~other ~~amendments~~information toabout ~~those~~Better ~~reports~~when ~~are~~you ~~available~~enroll ~~free~~your ofemail ~~charge~~address by visiting the “Investor Email Alerts” option under the Resources tab on investors.better.com. References to our website asor ~~soon~~other aslinks ~~reasonably~~to ~~practicable~~our ~~after~~publications weor ~~electronically~~other ~~file~~information ~~such~~are ~~material~~provided ~~with~~for the ~~SEC~~convenience of our stockholders. ~~The~~None of the information ~~posted~~or data included on our websites or accessible ~~through~~at ~~our~~these ~~website~~links is ~~not~~ incorporated into, and will not be deemed to be a part of, this Quarterly Report or any of our other filings with the SEC.

Investors and others should note that we announce material financial and operational information to our investors using press releases, SEC filings and public conference calls and webcasts, and by postings on our investor relations site at investors.better.com. We may also use our website as a distribution channel for material Company information. In addition, you may automatically receive email alerts and other information about Better when you enroll your email address by visiting the “Investor Email Alerts” option under the Resources tab on investors.better.com.

iii

Table of Contents

Part I - Financial Information

Item 1. Financial Statements

BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

~~UNAUDITED~~ CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30,		December 31,
(Amounts in thousands, except share and per share amounts)	2025		2024
Assets
Cash and cash equivalents	$	73,893	$	211,101
Restricted cash	12,551		24,416
Short-term investments	131,902		53,774
Mortgage loans held for sale, at fair value	413,998		399,241
Loans held for investment (net of allowance for credit lossesof $2,323 and $1,667 as of September 30, 2025 and December 31, 2024, respectively)	623,396		111,477
Other receivables, net	32,878		17,549
Assets held for sale	7,696		10,411
Property and equipment, net	1,850		2,717
Right-of-use assets	4,671		1,387
Internal use software and other intangible assets, net	21,520		20,936
Goodwill	24,513		23,615
Derivative assets, at fair value	5,290		2,539
Prepaid expenses and other assets	29,976		33,894
Total Assets	$	1,384,134	$	913,057
Liabilities and Stockholders’ Equity/(Deficit)
Liabilities
Warehouse lines of credit	$	349,771	$	244,070
Convertible notes	—		519,749
Senior notes	198,802		—
Customer deposits	694,815		134,130
Liabilities held for sale	5,171		6,116
Accounts payable and accrued expenses (includes $131 and $74 payable to related parties as of September 30, 2025 and December 31, 2024, respectively)	74,267		48,134
Escrow payable and other customer accounts	410		74
Warrant and equity related liabilities, at fair value	7,329		1,407
Lease liabilities	5,125		4,081
Other liabilities	6,532		13,466
Total Liabilities	1,342,222		971,227
Commitments and contingencies (see Note 12)
Stockholders’ Equity/(Deficit)
Common stock $0.0001 par value; 66,000,000 shares authorized as of September 30, 2025 and December 31, 2024, and 15,375,949 and 15,168,795 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively	2		2
Notes receivable from stockholders	(9,160)		(9,158)
Additional paid-in capital	2,083,521		1,863,288
Accumulated deficit	(2,036,318)		(1,910,366)
Accumulated other comprehensive income/(loss)	3,867		(1,936)
Total stockholders’ equity/(deficit)	41,912		(58,170)
Total Liabilities and Stockholders’ Equity/(Deficit)	$	1,384,134	$	913,057

(Unaudited)


	March 31,		December 31,
(Amounts in thousands, except share and per share amounts)	2026		2025
Assets
Cash and cash equivalents	$	64,265	$	79,357
Restricted cash	9,412		8,926

Mortgage loans held for sale, at fair value	563,036		466,681

Other receivables, net	16,144		10,716
Property and equipment, net	1,944		1,815
Right-of-use assets	4,460		4,678
Internal use software and other intangible assets, net	17,968		17,349
Goodwill	10,995		10,995
Derivative assets	6,017		4,210
Prepaid expenses and other assets	33,300		27,143
Assets held for sale	6,258		8,687
Assets of discontinued operations	834,996		864,877
Total Assets	$	1,568,795	$	1,505,434
Liabilities and Stockholders’ Equity
Liabilities
Warehouse lines of credit	$	507,581	$	411,862

Senior notes	198,802		198,802

Accounts payable and accrued expenses (includes payables to related parties of $0 and $200)	60,447		58,993
Escrow payable and other customer accounts	664		172
Derivative liabilities	329		804
Warrant and equity related liabilities, at fair value	3,240		1,476
Lease liabilities	4,383		4,629
Other liabilities	6,075		6,533
Liabilities held for sale	6,079		4,802
Liabilities of discontinued operations	772,642		780,178
Total Liabilities	$	1,560,242	$	1,468,251
Commitments and contingencies (see Note 12)
Stockholders’ Equity
Common stock $0.0001 par value; 66,000,000 shares authorized and 16,691,934 and 15,996,907 shares issued and outstanding	2		2

Additional paid-in capital	2,153,072		2,109,762
Accumulated deficit	(2,146,549)		(2,076,238)
Accumulated other comprehensive gain	2,028		3,657
Total Stockholders’ Equity	8,553		37,183
Total Liabilities and Stockholders’ Equity	$	1,568,795	$	1,505,434

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

~~UNAUDITED~~ CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands, except share and per share amounts)	2025		2024		2025		2024
Revenues:
Gain on loans, net	$	36,421	$	21,503	$	97,769	$	61,384
Other revenue	2,777		3,070		10,107		8,768
Net interest income
Interest income	16,855		9,867		41,457		27,900
Interest expense	(12,186)		(5,446)		(28,769)		(14,545)
Net interest income	4,669		4,421		12,688		13,355
Total net revenues	43,867		28,994		120,564		83,507
Expenses:
Compensation and benefits	41,287		37,752		129,367		111,079
General and administrative	10,167		12,611		33,304		41,813
Technology	6,726		7,249		20,856		19,289
Marketing and advertising	10,490		12,101		30,317		25,186
Loan origination expense	3,728		3,774		10,154		7,142
Depreciation and amortization	3,398		8,259		10,908		25,323
Other expenses/(income)	7,051		1,332		11,226		270
Total expenses	82,847		83,078		246,132		230,102
Loss before income tax expense	(38,980)		(54,084)		(125,568)		(146,595)
Income tax expense	145		126		384		472
Net Loss	(39,125)		(54,210)		(125,952)		(147,067)
Other comprehensive income/(loss):
Foreign currency translation adjustment, net of tax	(1,738)		4,056		5,803		4,322
Comprehensive loss	$	(40,863)	$	(50,154)	$	(120,149)	$	(142,745)
Per share data:
Loss per share attributable to common stockholders:
Basic	$	(2.56)	$	(3.58)	$	(8.27)	$	(9.74)
Diluted	$	(2.56)	$	(3.58)	$	(8.27)	$	(9.74)
Weighted average common shares outstanding — basic	15,263,321		15,121,994		15,223,492		15,102,741
Weighted average common shares outstanding — diluted	15,263,321		15,121,994		15,223,492		15,102,741

(Unaudited)


	Three Months Ended March 31,
(Amounts in thousands, except share and per share amounts)	2026		2025
Revenues:
Gain on loans, net	$	44,801	$	24,576
Other revenue	1,142		3,650
Net interest income
Interest income	7,284		7,595
Interest expense	(5,730)		(4,493)
Net interest income	1,554		3,102
Total net revenues	47,497		31,328
Expenses:
Compensation and benefits	55,736		43,892
General and administrative	8,948		10,777
Technology	8,361		6,649
Marketing and advertising	9,217		8,679
Loan origination expense	7,733		2,503
Depreciation and amortization	2,997		3,773
Other expenses	5,421		882
Total expenses	98,413		77,155
Loss before income tax expense	(50,916)		(45,827)
Income tax (benefit) expense	(1,566)		145
Net loss continuing operations	(49,350)		(45,972)
Net loss discontinued operations	(20,961)		(4,585)
Net loss	$	(70,311)	$	(50,557)

Per share data:
Loss per share attributable to common stockholders, basic and diluted:
Net loss from continuing operations	$	(3.01)	$	(3.03)
Net loss from discontinued operations	$	(1.28)	$	(0.30)
Net loss	$	(4.29)	$	(3.33)
Weighted average common shares outstanding — basic and diluted	16,410,119		15,166,729

Other comprehensive income/(loss):
Foreign currency translation adjustment, net of tax	$	(1,629)	$	2,223
Comprehensive loss	$	(71,940)	$	(48,334)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

~~UNAUDITED~~ CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY ~~(DEFICIT)~~

~~For the Three Months Ended September 30, 2025~~(Unaudited)

	Common Stock
(Amounts in thousands, except share and per share amounts)	Issued and Outstanding	Par Value		Notes Receivables from Stockholders		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Total Stockholders' Equity (Deficit)
Balance - June 30, 2025	15,274,145	2		(9,160)		2,077,303		(1,997,193)		5,605		76,557
Tax effect on gain on troubled debt restructuring	—	—		—		2,276		—		—		2,276
Issuance of common stock for options exercised	203	—		—		3		—		—		3
Issuance of common stock under ATM program	9,917	—		—		589		—		—		589
Stock-based compensation	—	—		—		4,536		—		—		4,536
Tax withholding upon vesting of restricted stock units	(47,095)	—		—		(1,186)		—		—		(1,186)
Shares issued for vested restricted stock units	138,779	—		—		—		—		—		—
Net loss	—	—		—		—		(39,125)		—		(39,125)
Other comprehensive loss— foreign currency translation adjustment, net of tax	—	—		—		—		—		(1,738)		(1,738)
Balance - September 30, 2025	15,375,949	$	2	$	(9,160)	$	2,083,521	$	(2,036,318)	$	3,867	$	41,912

For the Three Months Ended March 31, 2026

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements


	Common Stock
(Amounts in thousands, except share amounts)	Issued and Outstanding	Par Value		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Total Stockholders' Equity
Balance - December 31, 2025	15,996,907	$	2	$	2,109,762	$	(2,076,238)	$	3,657	$	37,183




Issuance of common stock under ATM program	328,030	—		11,686		—		—		11,686
Exercise of Warrants	211,312	—		10,170		—		—		10,170
Stock-based compensation	—	—		24,819		—		—		24,819
Tax withholding upon vesting of restricted stock units	(116,928)	—		(3,365)		—		—		(3,365)
Shares issued for vested restricted stock units	294,009	—		—		—		—		—
Cancellation of common stock	(21,396)	—		—		—		—		—

Net loss	—	—		—		(70,311)		—		(70,311)
Other comprehensive loss— foreign currency translation adjustment, net of tax	—	—		—		—		(1,629)		(1,629)
Balance - March 31, 2026	16,691,934	$	2	$	2,153,072	$	(2,146,549)	$	2,028	$	8,553

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

~~UNAUDITED~~ CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY ~~(DEFICIT)~~

~~For the Three Months Ended September 30, 2024~~(Unaudited)

	Common Stock
(Amounts in thousands, except share and per share amounts)	Issued and Outstanding1	Par Value1		Notes Receivables from Stockholders		Additional Paid-In Capital1		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Total Stockholders' Equity (Deficit)
Balance - June 30, 2024	15,110,974	2		(9,130)		1,852,417		(1,796,933)		(1,448)		44,908
Issuance of common stock for options exercised	1,483	—		—		74		—		—		74
Stock-based compensation	—	—		—		5,924		—		—		5,924
Tax withholding upon vesting of restricted stock units	—	—		—		(364)		—		—		(364)
Shares issued for vested restricted stock units	23,845	—		—		—		—		—		—
Vesting of common stock issued via notes receivable from stockholders	—	—		(19)		19		—		—		—
Net loss	—	—		—		—		(54,210)		—		(54,210)
Other comprehensive income— foreign currency translation adjustment, net of tax	—	—		—		—		—		4,056		4,056
Balance - September 30, 2024	15,136,302	$	2	$	(9,149)	$	1,858,070	$	(1,851,143)	$	2,608	$	388

For the Three Months Ended March 31, 2025

1.Periods have been adjusted to reflect the 1-for-50 reverse stock split on August 16, 2024. See Note 1 Organization and Nature of the Business - Reverse Stock Split, for additional information.


	Common Stock
(Amounts in thousands, except share amounts)	Issued and Outstanding	Par Value		Notes Receivables from Stockholders		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Total Stockholders' Deficit
Balance - December 31, 2024	15,168,795	$	2	$	(9,158)	$	1,863,288	$	(1,910,366)	$	(1,936)	$	(58,170)



Stock-based compensation	—	—		—		4,443		—		—		4,443
Tax withholding upon vesting of restricted stock units	(9,679)	—		—		(87)		—		—		(87)
Shares issued for vested restricted stock units	28,919	—		—		—		—		—		—
Vesting of common stock issued via notes receivable from stockholders	—	—		(2)		5		—		—		3

Net loss	—	—		—		—		(50,557)		—		(50,557)
Other comprehensive income— foreign currency translation adjustment, net of tax	—	—		—		—		—		2,223		2,223
Balance - March 31, 2025	15,188,035	$	2	$	(9,160)	$	1,867,649	$	(1,960,923)	$	287	$	(102,145)

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

~~UNAUDITED~~ CONDENSED CONSOLIDATED STATEMENTS OF ~~STOCKHOLDERS’~~CASH ~~EQUITY~~FLOW ~~(DEFICIT)~~

~~For the Nine Months Ended September 30, 2025~~(Unaudited)

	Common Stock
	Three Months Ended March 31,
(Amounts in thousands, except share and per share amounts)	Issued and Outstanding		Par Value		Notes Receivables from Stockholders		Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Total Stockholders' Equity (Deficit)
(Amounts in thousands)	2026		2025
Balance - December 31, 2024	15,168,795		2		(9,158)		1,863,288		(1,910,366)		(1,936)		(58,170)
Cash Flows from Operating Activities:
Gain on troubled debt restructuring (see Note 10)	—		—		—		210,044		—		—		210,044
Net loss	$	(70,311)	$	(50,557)
Tax effect on gain on troubled debt restructuring	—		—		—		(2,445)		—		—		(2,445)
Net loss from discontinued operations	(20,961)		(4,585)
Issuance of common stock for options exercised	203		—		—		3		—		—		3
Net loss from continuing operations	(49,350)		(45,972)
Issuance of common stock under ATM program	9,917		—		—		589		—		—		589
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	—		—		—		13,596		—		—		13,596
Depreciation of property and equipment	244		409
Tax withholding upon vesting of restricted stock units	(110,658)		—		—		(1,559)		—		—		(1,559)
Impairment charges, net	(87)		139
Shares issued for vested restricted stock units	307,692		—		—		—		—		—		—
Amortization of internal use software and other intangible assets	2,753		3,364
Vesting of common stock issued via notes receivable from stockholders	—		—		(2)		5		—		—		3
Gain on sale of loans, net	(44,064)		(21,278)
Net loss	—		—		—		—		(125,952)		—		(125,952)
Non-cash interest and amortization of debt issuance costs and discounts	—		1,700
Other comprehensive income— foreign currency translation adjustment, net of tax	—		—		—		—		—		5,803		5,803
Change in fair value of warrants and equity related liabilities	6,202		(228)
Balance - September 30, 2025	15,375,949		$	2	$	(9,160)	$	2,083,521	$	(2,036,318)	$	3,867	$	41,912
Stock-based compensation	23,795		4,033
Provision (Recovery) of loan repurchase reserve	638		(2,127)
Provision for credit losses	584		(88)
Change in fair value of derivatives	(2,282)		(1,061)
Change in fair value of mortgage loans held for sale	(4,905)		(5,343)
Gain on disposal of assets held for sale	(1,000)		—
Change in operating lease of right-of-use assets	217		(4,171)
Originations of mortgage loans held for sale	(1,616,945)		(875,348)
Proceeds from sale of mortgage loans held for sale	1,568,508		887,694
Change in operating assets and liabilities:
Other receivables, net	(5,418)		313
Prepaid expenses and other assets	(6,161)		(735)
Operating lease liabilities	(246)		3,432
Accounts payable and accrued expenses	(1,973)		8,389
Escrow payable and other customer accounts	2,198		662
Other liabilities	2,497		(59)
Net cash used in operating activities-continuing operations	(124,795)		(46,275)
Net cash used in operating activities-discontinued operations	(381)		(10,912)
Net cash used in operating activities	(125,176)		(57,187)
Cash Flows from Investing Activities:
Purchase of property and equipment	(378)		(202)
Proceeds of sale of assets held for sale	2,371		—
Capitalization of internal use software	(2,348)		(2,339)
Net cash used in investing activities-continuing operations	(355)		(2,541)
Net cash used in investing activities-discontinued operations	(11,238)		(156,302)
Net cash used in investing activities	(11,593)		(158,843)
Cash Flows from Financing Activities:
Net borrowings (repayments) on warehouse lines of credit	95,719		(8,114)
Proceeds from issuance of common stock under at-the-market offering	11,686		—
Proceeds from issuance of stock options	—		2
Proceeds from exercise of warrants	5,732		—
Net investment in discontinued operations	—		(45,248)
Net cash provided by/(used in) financing activities-continuing operations	113,137		(53,360)
Net cash (used in)/provided by financing activities-discontinued operations	(7,900)		172,181
Net cash provided by financing activities	105,237		118,821
Effects of currency translation on cash, cash equivalents, and restricted cash	(803)		598
Net decrease in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale	(12,816)		(101,578)
Less: net change in cash, cash equivalents and restricted cash classified within assets held for sale	(1,790)		289

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

~~UNAUDITED~~ CONDENSED CONSOLIDATED STATEMENTS OF ~~STOCKHOLDERS’~~CASH ~~EQUITY~~FLOW ~~(DEFICIT)~~

~~For the Nine Months Ended September 30, 2024~~(Unaudited)

	Common Stock
Cash, cash equivalents, and restricted cash—Beginning of period	88,283		218,043
(Amounts in thousands, except share and per share amounts)	Issued and Outstanding1		Par Value1		Notes Receivables from Stockholders		Additional Paid-In Capital1		Accumulated Deficit		Accumulated Other Comprehensive Income/(Loss)		Total Stockholders' Equity (Deficit)
Cash, cash equivalents, and restricted cash—End of period	$	73,677	$	116,754
Adjusted Balance as of December 31, 2023	15,035,467		$	2	$	(10,111)	$	1,838,499	$	(1,704,076)	$	(1,714)	$	122,600
Adjustment of transaction costs related to Business Combination	—		—		—		(2,372)		—		—		(2,372)
Issuance of common stock for options exercised	4,254		—		—		1,529		—		—		1,529
Cancellation of common stock	(30,673)		—		—		—		—		—		—
Stock-based compensation	—		—		—		23,120		—		—		23,120
Tax withholding upon vesting of restricted stock units	—		—		—		(1,736)		—		—		(1,736)
Shares issued for vested restricted stock units	127,254		—		—		—		—		—		—
Vesting of common stock issued via notes receivable from stockholders	—		—		(884)		876		—		—		(8)
Settlement of notes receivable from stockholders	—		—		1,846		(1,846)		—		—		—
Net loss	—		—		—		—		(147,067)		—		(147,067)
Other comprehensive income— foreign currency translation adjustment, net of tax	—		—		—		—		—		4,322		4,322
Balance - September 30, 2024	15,136,302		2		(9,149)		1,858,070		(1,851,143)		2,608		388

1.Periods have been adjusted to reflect the 1-for-50 reverse stock split on August 16, 2024. See Note 1 Organization and Nature of the Business - Reverse Stock Split, for additional information.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

Table of Contents

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

	Nine Months Ended September 30,
(Amounts in thousands)	2025		2024
Cash Flows from Operating Activities:
Net loss	$	(125,952)	$	(147,067)
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:
Depreciation of property and equipment	796		4,187
Impairments	1,432		—
Amortization of internal use software and other intangible assets	10,112		21,136
Gain on sale of loans, net	(91,542)		(44,032)
Non-cash interest and amortization of debt issuance costs and discounts	1,700		4,472
Change in fair value of warrants	5,923		(927)
Stock-based compensation	12,556		21,812
Recovery of loan repurchase reserve	(1,113)		(10,168)
Provision for credit losses	656		1,138
Amortization/Accretion of Deferred Fees and Costs	(1,079)		—
Change in fair value of derivatives	(2,743)		(3,651)
Change in fair value of mortgage loans held for sale	(6,436)		(4,666)
Loss on disposal of assets held for sale	692		—
Change in operating lease of right-of-use assets	(3,284)		(4,321)
Originations of mortgage loans held for sale	(3,255,889)		(2,676,979)
Proceeds from sale of mortgage loans held for sale	3,336,753		2,554,975
Change in operating assets and liabilities:
Other receivables, net	(15,908)		(450)
Prepaid expenses and other assets	4,928		14,769
Operating lease liabilities	1,044		(5,540)
Accounts payable and accrued expenses	20,460		(2,111)
Escrow payable and other customer accounts	980		1,360
Other liabilities	(3,391)		2,118
Net cash used in operating activities	(109,305)		(273,945)
Cash Flows from Investing Activities:
Purchase of property and equipment	(849)		(2,917)
Payment to dispose of assets held for sale	(1,597)		—
Capitalization of internal use software	(7,403)		(4,132)
Maturities of short-term investments	352,142		139,901
Purchase of short-term investments	(427,431)		(167,426)
Origination of loans held for investment	(505,438)		(79,715)
Principal payments received on loans held for investment	1,047		2,464
Net cash used in investing activities	(589,529)		(111,825)
Cash Flows from Financing Activities:
Principal payments on notes	(111,606)		(1,103)
Net borrowings on warehouse lines of credit	105,701		8,263
Net increase/(decrease) in customer deposits	560,685		85,943
Proceeds from issuance of common stock under at-the-market offering	589		—
Proceeds from exercise of stock options	4		5
Net cash provided by financing activities	555,373		93,108
Effects of currency translation on cash, cash equivalents, and restricted cash	(6,940)		1,675
Net (decrease) increase in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale	(150,401)		(290,987)
Less: net change in cash, cash equivalents and restricted cash classified within assets held for sale	1,328		—
Cash, cash equivalents, and restricted cash—beginning of period	235,517		528,066
Cash, cash equivalents, and restricted cash—end of period	$	86,444	$	237,079

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets to the total of the same such amounts shown on the previous page.

	Nine Months Ended September 30,
	Three Months Ended March 31,
(Amounts in thousands)	~~2025~~2026		~~2024~~2025
Cash and cash equivalents, end of period	$	7364,~~893~~265	$	~~207~~95,~~673~~112
Restricted cash, end of period	129,~~551~~412		2921,~~406~~642
Total cash, cash equivalents and restricted cash, end of period	$	8673,~~444~~677	$	~~237~~116,~~079~~754
Supplemental Disclosure of Cash Flow Information:
Interest paid	$	15,760	$	2,594
Interest paid on continuing operations	$	5,730	$	2,793
Income taxes paid/(refunded)	$	1,671	$	548
Interest paid on discontinued operations	$	4,911	$	131
Income taxes paid/(refunded)	$	128	$	(680)
Non-Cash Investing and Financing Activities:
Capitalization of stock-based compensation related to internal use software	$	1,~~050~~024	$	~~1,309~~410
Vesting of stock options early exercised in prior periods	$	—	$	1,524
Vesting of common stock issued via notes receivable from stockholders	$	—	$	2
Vesting of common stock issued via notes receivable from stockholders	$	2	$	884
Tax withholding upon vesting of restricted stock units	$	3,365	$	87
Settlement of notes receivable from stockholders	$	—	$	1,846
Convertible notes exchange	$	207,599	$	—
Reduction of lease liability via modification	$	—	$	20,839

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

Table of Contents

BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Organization and Nature of the Business

Better Home & Finance Holding Company together with its subsidiaries (collectively, the “Company”), provides a comprehensive set of homeownership offerings in the United States ~~while~~and ~~expanding~~operates a banking platform in the United Kingdom ~~(the “U~~.~~K.”).~~ The Company’s offerings include mortgage loans, real estate agent services, title and homeowner’s insurance, and other homeownership offerings. The Company leverages Tinman, its proprietary technology platform, to optimize the mortgage process from the initial application, to the integration of a suite of additional homeownership offerings, to the sale of loans to a network of loan purchasers.

Mortgage loans originated within the United States are through the Company’s wholly-owned subsidiary Better Mortgage Corporation (“BMC”). BMC is an approved Title II Single Family Program Lender with the Department of Housing and Urban Development’s (“HUD”) Federal Housing Administration (“FHA”), and is an approved seller and servicer with the Federal National Mortgage Association (“FNMA”) and the Federal Home Loan Mortgage Corporation (“FMCC”). The Company ~~has~~conducts ~~expanded~~banking ~~into~~operations in the ~~U.K.~~United ~~and~~Kingdom ~~offers~~through aBirmingham ~~multitude~~Bank, ofa ~~financial~~regulated ~~products~~U.K. ~~and~~banking ~~services~~entity toacquired ~~consumers~~in ~~via regulated entities obtained through acquisitions~~2023. In the fourth quarter of 2024, the Company decided to dispose of certain operating units in the U.K. In addition, ~~see~~in the fourth quarter of 2025, the Company approved a plan to sell its Birmingham Bank business. As of the first quarter of 2026, the Birmingham Bank business has been classified as held for sale and its results are presented as discontinued operations. See Note 83 for further details.

On August 22, 2023 (the “Closing Date”), the Company consummated the previously announced Business Combination (the “Business Combination”), pursuant to the terms of the Agreement and Plan of Merger, dated as of May 10, 2021 (as amended from time to time, the “Merger Agreement”), by and among Aurora Acquisition Corp. (“Aurora”), Better Holdco, Inc. (“Pre-Business Combination Better”), and Aurora Merger Sub I, Inc., formerly a wholly owned subsidiary of Aurora (“Merger Sub”). On the Closing Date, Merger Sub merged with and into Pre-Business Combination Better, with Pre-Business Combination Better surviving the merger (the “First Merger”) and Pre-Business Combination Better merged with and into Aurora, with Aurora surviving the merger and changing its name to “Better Home & Finance Holding Company” (referred to as “Better Home & Finance”) (such merger, the “Second Merger,” and together with the First Merger, the “Business Combination” and the completion thereof, the “Closing”).

Unless otherwise indicated, references to “Better,” “Better Home & Finance,” the “Company,” “we,” “us,” “our” and other similar terms refer to (i) Pre-Business Combination Better and its consolidated subsidiaries prior to the Closing and (ii) Better Home & Finance and its consolidated subsidiaries following the Closing.

The Company’s Class A common stock and warrants are listed on the Nasdaq Capital Market (the “Nasdaq”) under the ticker symbols “BETR” and “BETRW,” respectively.

Reverse Stock Split—On Friday, August 16, 2024, the Company filed a Certificate of Amendment to its Amended and Restated Certificate of Incorporation, effecting a 1-for-50 reverse stock split of the Company’s common stock (the “Reverse Stock Split”) for the primary purpose of increasing the per share trading price of the Company’s Class A common stock to enable the Company to regain compliance with the minimum bid price requirement for continued listing on the Nasdaq. The Company’s Class A common stock began trading on a split-adjusted basis on the Nasdaq upon the market open on Monday, August 19, 2024.

Effective August 16, 2024, as a result of the Reverse Stock Split, every 50 shares of the Company’s issued and outstanding common stock were converted into one issued and outstanding share of Class A common stock, Class B common stock and Class C common stock, as applicable, without any change to the par value per share, the voting rights of the common stock, any stockholder’s percentage interest in the Company’s equity or any other aspect of the common stock. The accompanying financial statements have been retroactively recast to reflect this reverse split stock resulting in a reclassification to historic financials between common stock and additional paid-in-capital.

2. Summary of Significant Accounting Policies

Basis of Presentation—The accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

In the opinion of management of the Company, the accompanying unaudited condensed consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair ~~presentation~~statement of its financial position and its results of operations, changes in stockholders’ equity ~~(deficit)~~ and cash flows. The results of operations and other information for the three ~~and nine~~ months ended ~~September 30~~March 31, ~~2025~~2026 are not necessarily indicative of the results that may be expected for any other interim period or for the year ending December 31, ~~2025~~2026. The unaudited condensed consolidated financial statements presented herein should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2025.

Table of Contents

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

financial statements presented herein should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2024.

Consolidation—The accompanying condensed consolidated financial statements include the accounts of the Company and its consolidated subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates—The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Significant items subject to such estimates and assumptions include the fair value of mortgage loans held for sale, the fair value of derivative assets and liabilities, which includes interest rate lock commitments and forward sale commitments, the determination of a valuation allowance on the Company’s deferred tax assets, capitalization of internally developed software and its associated useful life, the fair value of acquired intangible assets and goodwill, the provision for loan repurchase reserves, the allowance for credit losses, ~~the incremental borrowing rate used in determining lease liabilities,~~ and the fair value of warrant and equity related liabilities.

Short-term investments—Short- term investments consist of fixed income securities, typically U.S. and U.K. government treasury securities and U.S. and U.K. government agency securities with maturities ranging from 91 days to one year. Management determines the appropriate classification of short-term investments at the time of purchase. Short-term investments reported as held-to-maturity are those investments that the Company has both the positive intent and ability to hold to maturity and are stated at amortized cost on the condensed consolidated balance sheets. All of the Company’s short- term investments are classified as held to maturity. The Company has not recognized any impairments on these investments to date and any unrealized gains or losses on these investments are immaterial. The U.S. and U.K. government treasury securities and U.S. and U.K. government agency securities are issued by U.S. and U.K. government

Allowance for Credit Losses–Held to Maturity (“HTM”) Short-term Investments—The Company’s HTM Short-term investments are required to utilize the Current Expected Credit Loss (“CECL”) approach to estimate expected credit losses. Management measures expected credit losses on short-term investments on a collective basis by major security types that share similar risk characteristics, such as financial asset type and collateral type adjusted for current conditions and reasonable and supportable forecasts. Management classifies the short-term investments portfolio by security types, such as U.S. and U.K. government agency securities.7

The U.S. and U.K. government treasury securities and U.S. and U.K. government agency securities are issued by U.S. and U.K. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the respective governments as to timely repayment of principal and interest, are highly rated by major rating agencies, and have a long history of no credit losses. Therefore, credit losses for these securities were immaterial as the Company does not currently expect any material credit losses on these short-term investments.

Mortgage Loans Held for Sale, at Fair Value—The Company sells its loans held for sale (“LHFS”) to loan purchasers. LHFS primarily consists of mortgage loans as well as home equity line of credit and closed-end second lien loans (together defined as “HELOC”), originated for sale by BMC. The Company elects the fair value option, in accordance with Accounting Standard Codification (“ASC”) 825 – Financial Instruments (“ASC 825”), for all LHFS with changes in fair value recorded in gain on loans, net in the condensed consolidated statements of operations and comprehensive loss. Management believes that the election of the fair value option for LHFS improves financial reporting by presenting the most relevant market indication of LHFS. The fair value of LHFS is based on market prices and yields at period end. The Company accounts for the gains or losses resulting from sales of loans based on the guidance of ASC 860-20 – Sales of Financial Assets (“ASC 860”).

The Company generally sells all of its loans servicing released. For interim servicing, the Company engaged a third-party sub-servicer to collect monthly payments and perform associated services.

The Company issues interest rate lock commitments (“IRLC”) to originate mortgage loans and the fair value of the IRLC, adjusted for the probability that a given IRLC will close and fund, is recognized within gain on loans, net. Subsequent changes in the fair value of the IRLC are measured at each reporting period within gain on loans, net until the loan is funded. When the loan is funded, the IRLC is derecognized and the LHFS is recognized based on the fair value of the loan. The LHFS is subsequently remeasured at fair value at each reporting period and the changes in fair value are

Table of Contents

BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~included~~entities ~~within~~and ~~gain~~agencies. onThese ~~loans,~~securities ~~net~~are ~~until~~either ~~the~~explicitly ~~loan~~or isimplicitly ~~sold~~guaranteed onby the ~~secondary~~respective ~~market~~governments as to timely repayment of principal and interest, are highly rated by major rating agencies, and have a long history of no credit losses. ~~When~~Therefore, credit losses for these securities were immaterial as the ~~loan~~Company isdoes ~~sold~~not currently expect any material credit losses on ~~the~~these ~~secondary~~short-term ~~market,~~investments. ~~the~~As ~~LHFS~~of isMarch ~~derecognized~~31, 2026 and ~~the~~December ~~gain/(loss)~~31, is2025, ~~included~~short-term investments have been classified within ~~gain~~assets of discontinued operations on ~~loans,~~the ~~net~~condensed ~~based~~consolidated onbalance sheets as they relate to the ~~cash~~Birmingham ~~settlement~~Bank disposal group. See Note 8 for additional information.

~~LHFS~~Mortgage ~~are~~Loans ~~considered~~Held ~~sold~~for ~~when~~Sale, ~~the~~at ~~Company~~Fair ~~surrenders~~Value—The ~~control~~Company ~~over~~originates ~~the~~mortgage loans., ~~Control~~including ishome ~~considered~~equity toline ~~have~~of ~~been~~credit ~~surrendered~~and ~~when~~closed-end ~~the~~second ~~transferred~~lien loans ~~have~~(“HELOCs”), ~~been~~for ~~isolated~~sale ~~from~~into the ~~Company,~~secondary ~~are~~market. ~~beyond~~The ~~the reach of the~~ Company ~~and~~has ~~its~~elected ~~creditors, and~~ the ~~loan~~fair ~~purchaser~~value ~~obtains~~option ~~the~~under ~~right~~ASC ~~(free~~825 offor ~~conditions~~all ~~that~~mortgage ~~constrain~~loans itheld ~~from~~for ~~taking~~sale ~~advantage~~(“LHFS”), ofwith ~~that~~changes ~~right)~~in tofair ~~pledge~~value orrecorded ~~exchange~~within ~~the~~gain ~~transferred~~on loans., ~~The~~net ~~Company~~in ~~typically considers~~ the ~~above~~condensed ~~criteria~~consolidated tostatements ~~have been met upon receipt~~ of ~~sales~~operations ~~proceeds~~and ~~from~~comprehensive ~~the loan purchaser~~loss.

The fair value of LHFS is generally based on observable market prices and investor commitments for loans with similar characteristics. Changes in fair value are primarily driven by changes in market interest rates, loan pricing, and sale execution assumptions.

The Company generally sells loans servicing released shortly after origination. Gains and losses on loan sales are recognized upon transfer of control of the loans to the purchaser in accordance with ASC 860. The Company may retain interim servicing responsibilities through third-party sub-servicers for certain loans prior to transfer.

Loan Repurchase Reserve—In connection with the sale of mortgage loans into the secondary market, the Company makes customary representations and warranties regarding the characteristics of the loans sold, including compliance with underwriting standards and applicable laws and regulations. In the event of a breach of these representations and warranties, the Company may be required to repurchase affected loans or indemnify investors for incurred losses.

The Company maintains a loan repurchase reserve for estimated losses associated with these obligations. The reserve is based on historical repurchase and loss experience, current defect trends, the expected severity of losses, and management’s estimate of future repurchase activity. Provisions for changes in the reserve are recorded within gain on loans, net in the condensed consolidated statements of operations and comprehensive loss, while the reserve liability is included within other liabilities on the condensed consolidated balance sheets.

The Company also may be required to refund a portion of premiums received from loan purchasers in the event of early loan payoffs, which is included in the estimate of the loan repurchase reserve, when applicable. See Note 13 for further analysis.

Loans Held for Investment—The Company originates, primarily through its U.K. operations, loans held for investment, for which management has the intent and ability to cause the Company to hold for the foreseeable future or until maturity or payoff and are reported at amortized cost, which is the principal amount outstanding, net of cumulative charge-offs, unamortized net deferred loan origination fees and costs and unamortized premiums or discounts on purchased loans.

The allowance for credit losses is a valuation account that is deducted from the loans held for investment amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged-off against the allowance when management believes the loan balance is deemed to be uncollectible. Management estimates the expected credit losses over the life of the loan. Management’s estimation utilizes a probability of default /loss given default (“PD/LGD”) methodology. Under this approach, expected credit losses isare ~~based~~calculated onas ~~relevant~~the ~~information~~product ~~about~~of ~~past~~probability ~~events~~of default, ~~current~~loss ~~conditions~~given default, and ~~reasonable~~exposure ~~and~~at ~~supportable~~default ~~forecasts~~for each loan. Management estimates expected credit losses on a collective basis for loans that ~~affect~~share ~~the~~similar ~~collectability~~risk characteristics, which primarily consist of ~~the~~property ~~reported~~buy-to-let ~~amounts,~~loans ~~including~~originated ~~expected~~through ~~defaults~~its ~~and~~U.K. ~~prepayments~~banking operations. See Note 56 for additional details.

~~Fair~~As ~~Value~~of ~~Measurements—Assets~~March 31, 2026 and ~~liabilities~~December 31, ~~recorded~~2025, atloans ~~fair~~held ~~value~~for oninvestment ahave ~~recurring~~been ~~basis~~classified onwithin ~~the~~assets ~~condensed consolidated balance sheets are categorized based upon the level~~ of ~~judgment~~discontinued ~~associated~~operations ~~with~~on the ~~inputs~~condensed ~~used~~consolidated tobalance ~~measure~~sheets ~~their fair values. Fair value is defined~~ as ~~the~~they ~~exchange~~relate ~~price that would be received for an asset or an exit price that would be paid~~ to ~~transfer a liability in~~ the ~~principal~~Birmingham orBank ~~most~~disposal ~~advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date~~group. The price used to measure fair value is not adjusted for transaction costs. The principal market is the market in which the Company would sell or transfer the asset with the greatest volume and level of activity for the asset. In determining the principal market for an asset or liabilityAccordingly, itthese isbalances ~~assumed~~are ~~that~~no ~~the~~longer ~~Company~~presented ~~has~~separately ~~access~~on to the ~~market~~face as of the ~~measurement~~balance ~~date~~sheet. IfSee noNote ~~market~~3 for ~~the~~additional ~~asset exists, or if the Company does not have access to the principal market, a hypothetical market is used~~information.

Derivatives and Hedging Activities—The ~~authoritative~~Company ~~guidance~~uses onderivative ~~fair~~instruments ~~value~~to ~~measurements~~manage ~~establishes~~interest arate ~~three-tier~~risk ~~fair~~associated ~~value~~with ~~hierarchy~~mortgage loan commitments, mortgage loans held for ~~disclosure~~sale, ofand ~~fair~~loans ~~value~~held ~~measurements~~for asinvestment. ~~follows:~~Derivative instruments primarily include interest rate lock commitments (“IRLCs”), forward sale commitments, and interest rate

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BETTER HOME & FINANCE HOLDING COMPANY

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

swaps, , and warrant liabilities. Warrant liabilities include Public Warrants, Private Warrants, Sponsor Locked-up Shares, and other liability-classified warrants, which are recorded at fair value with changes in fair value recognized in earnings..

The Company presents certain derivative assets and liabilities on a net basis on the condensed consolidated balance sheets when a legally enforceable master netting arrangement exists and the criteria for offsetting are met. Certain counterparty agreements related to forward sale commitments and interest rate swaps contain master netting agreements that provide the Company with the legal right to offset amounts due to and from the same counterparty under certain conditions. Certain derivative instruments are subject to margining arrangements pursuant to counterparty agreements, whereby collateral may be required to be posted or received based on changes in the fair value of the underlying derivative instruments. As of March 31, 2026 and December 31, 2025, the Company did not have material collateral posted or received related to derivative instruments.

IRLCs represent commitments to originate mortgage loans at specified interest rates to borrowers who have applied for a loan and meet certain credit and underwriting criteria. The Company enters into forward sale commitments to sell mortgage loans held for sale or loans in the pipeline. IRLCs and forward sale commitments are not designated as hedging instruments for accounting purposes and are recognized as derivative assets or liabilities at fair value on the condensed consolidated balance sheets, with changes in fair value recorded in gain on loans, net within the condensed consolidated statements of operations and comprehensive loss. The fair value of IRLCs is based on the value of the underlying mortgage loan, quoted MBS prices, estimated mortgage servicing rights values, and estimated loan funding probabilities (“pull-through rates”).

The Company also utilizes pay-fixed, receive-floating interest rate swaps designated as fair value hedges to manage exposure to changes in the fair value of loans held for investment attributable to changes in interest rates. Changes in the fair value of the derivative instruments and the hedged items attributable to the hedged risk are recognized in earnings. The Company assesses hedge effectiveness on a quarterly basis.

The Company does not utilize any other derivative instruments to manage risk.

Fair Value Measurements—Assets and liabilities measured at fair value on a recurring basis are categorized within a three-level hierarchy based on the observability of inputs used in the valuation techniques:

Level 1—Unadjusted quoted market prices in active markets for identical assets or liabilities;

Level 2—Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Assets and liabilities measured at fair value on a recurring basis primarily include ~~LHFS,~~mortgage ~~derivative~~loans ~~assets~~held ~~and~~for ~~liabilities, including IRLCs and forward~~ sale ~~commitments~~, ~~and~~derivative ~~warrant~~assets and ~~equity related~~ liabilities~~. When developing fair value measurements~~, ~~the~~including ~~Company~~interest ~~maximizes~~rate ~~the~~lock ~~use~~commitments ~~of observable inputs and minimizes the use of unobservable inputs. However~~(“IRLCs”), ~~for~~forward ~~certain~~sale ~~instruments~~commitments, ~~the~~interest ~~Company~~rate ~~must utilize unobservable inputs in determining fair value due to the lack of observable inputs in the market~~swaps, ~~which requires greater judgment in measuring fair value. In instances where there is limited or no observable market data, fair value measurements for assets~~ and ~~liabilities~~warrant ~~are based primarily upon the Company’s own estimates,~~ and ~~the~~equity ~~measurements~~related ~~reflect information and assumptions that management believes a market participant would use in pricing the asset or liability~~liabilities.

~~Assets~~The ~~and~~Company ~~Liabilities~~determines ~~Held~~fair ~~for~~value ~~Sale—Assets~~using ~~and~~quoted ~~liabilities~~market toprices bewhere ~~disposed~~available ofand byotherwise ~~sale~~utilizes ~~are~~valuation ~~reclassified~~models ~~into~~incorporating ~~assets~~observable ~~held~~market ~~for~~inputs, ~~sale~~including ~~and~~market ~~liabilities~~interest ~~held~~rates, ~~for~~loan ~~sale~~pricing onassumptions, ~~the~~and ~~condensed~~secondary ~~consolidated~~market ~~balance~~investor ~~sheets~~pricing. ~~The~~Certain ~~Company~~instruments, ~~presents~~including ~~the~~IRLCs, ~~assets~~require ~~and~~the ~~liabilities~~use of aunobservable ~~disposal~~inputs, ~~group~~primarily asestimated ~~held~~pull-through ~~for~~rates, ~~sale~~and ~~upon~~are ~~meeting~~therefore ~~all~~classified within Level 3 of the ~~following~~fair ~~criteria:~~value hierarchy.

See Note 15 for additional information regarding fair value measurements.

Assets and Liabilities Held for Sale and Discontinued Operations—Assets and liabilities to be disposed of by sale are reclassified into assets held for sale and liabilities held for sale on the condensed consolidated balance sheets. The Company presents the assets and liabilities of a disposal group as held for sale upon meeting all of the following criteria:

•Management, having the authority to approve the action, commits to a plan to sell the asset (disposal group).

11•The asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups).

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

•The asset (disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such assets (disposal groups).

•An active program to locate a buyer and other actions required to complete the plan to sell the asset (disposal group) have been initiated.

•The sale of the asset (disposal group) is probable, and transfer of the asset (disposal group) is expected to qualify for recognition as a completed sale, within one year.

•The asset (disposal group) is being actively marketed for sale at a price that is reasonable in relation to its current fair value.

•Actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

The determination as to whether the sale of the disposal group is probable may include significant judgments from management related to the estimated timing of the closing of a future sales transaction. Assets held for sale are measured at the lower of their carrying amount or fair value less cost to sell and are not depreciated or amortized. Disposal groups that represent a strategic shift and have a major effect on the Company’s operations and financial results are reported as discontinued operations. See Note 83 for further detail on assets and liabilities held for sale and discontinued operations.

Warehouse Lines of Credit—Warehouse lines of credit represent the outstanding balance of the Company’s warehouse borrowings collateralized by mortgage loans held for sale or related borrowings collateralized by restricted cash. Generally, warehouse lines of credit are used as interim, short-term financing which bears interest at a fixed margin over an index rate, such as the Secured Overnight Financing Rate (“SOFR”). The outstanding balance of the Company’s warehouse lines of credit will fluctuate based on its lending volume. The advances received under the warehouse lines of credit are based upon a percentage of the fair value or par value of the mortgage loans collateralizing the advance, depending upon the type of mortgage loan. Should the fair value of the pledged mortgage loans decline, the warehouse provider may require the Company to provide additional cash collateral or mortgage loans to maintain the required collateral level under the relevant warehouse line. The Company did not incur any significant issuance costs related to its warehouse lines of credit.

Senior Notes—Upon initial issuance, the Senior Notes are evaluated for redemption and conversion features that could result in embedded derivatives that require bifurcation from the notes. Upon initial issuance, any embedded derivatives are measured at fair value. The notes proceeds are allocated between the carrying value of the note and the fair value of embedded derivatives on the initial issuance date. Any portion of proceeds allocated to embedded derivatives are treated as reductions in, or discounts to, the carrying value of the Senior Notes on the issuance date. Embedded derivatives are adjusted to fair value at each reporting period, with the change in fair value included within interest expense on the condensed consolidated statements of operations and comprehensive ~~income (~~loss). See Note 10 for further details on the Senior Notes.

Debt Modifications and Extinguishments—When the Company modifies or extinguishes debt, it first evaluates whether the modification qualifies as a troubled debt restructuring (“TDR”) ~~under~~and ~~ASC~~evaluates ~~470-60~~whether ~~- Troubled Debt Restructurings by Debtors~~ (~~"ASC 470-60"), which requires debt modifications to be evaluated if (~~1) the borrower is experiencing financial difficulty, and (2) the lender grants the borrower a concession. Concessions may include modifications to the terms of the debt, such as reducing the interest rate, extending the repayment period, or forgiving a portion of the debt. If a TDR is determined not to have occurred, the Company evaluates ~~the modification in accordance with ASC Topic 470-50-40, which requires modification to debt instruments to be evaluated to assess~~ whether the ~~modifications~~modification ~~are~~is considered “a substantial ~~modifications”~~modification. A substantial modification of terms is accounted for like an extinguishment.

Income Taxes—Income taxes are calculated inby ~~accordance~~applying ~~with~~an ~~ASC 740, Accounting for Income Taxes. An~~ estimated annual effective tax rate ~~is applied~~ to year-to-date income (loss). At the end of each interim period, the estimated effective tax rate expected to be applicable for the full year is calculated. This method differs from that described in the Company’s income taxes policy footnote in the audited consolidated financial statements and related notes thereto for the year ended December 31, ~~2024~~2025, which describes the Company’s annual significant income tax accounting policy and related methodology.

Segments—The Company’s chief operating decision maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities as a single operating and reportable segment. Accordingly, the CODM evaluates performance and allocates resources based on consolidated net income (loss) from operations as presented in the consolidated statements of operations and comprehensive loss. The CODM uses consolidated net income (loss) to assess overall operating performance, evaluate budget-to-actual results, monitor profitability trends, and determine resource allocation priorities, including investments in personnel, technology, marketing, and strategic initiatives. The CODM also reviews functional expense information to manage the Company’s operations. Other items included in net income (loss) are

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BETTER HOME & FINANCE HOLDING COMPANY

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

net interest income, depreciation and amortization, and income tax expense (benefit), which are reflected in the consolidated statements of operations and comprehensive loss. The Company operates as a single operating and reportable segment; as such, all assets and operating expenses presented in the accompanying condensed consolidated financial statements are attributable solely to that segment and represent the entirety of the Company’s assets and operating expenses.

Recently Issued Accounting Standards Not Yet Adopted

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative (“ASU 2023-06”). This ASU incorporates certain SEC disclosure requirements into the FASB Accounting Standards Codification (“Codification”). The amendments in the ASU are expected to clarify or improve disclosure and presentation requirements of a variety of Codification Topics, allow users to more easily compare entities subject to the Securities and Exchange Commission’s (the “SEC”) existing disclosures with those entities that were not previously subject to the requirements, and align the requirements in the Codification with the SEC’s regulations. ASU 2023-06 will become effective for each amendment on the effective date of the SEC's corresponding disclosure rule changes. As of March 31, 2026, the Company does not expect ASU 2023-06 will have any impact on the consolidated financial statements.

In November 2024, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2024-03, and in January 2025, ASU 2025-01, Income Statement - Comprehensive Income - Expense Disaggregation Disclosures (subtopic 220-40), which requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The ASUs are effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted for annual financial statements that have not yet been issued. The Company is in the process of assessing the impact the adoption of this guidance will have on the Company’s financial statement disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (ASU 2025-06). The ASU replaces the existing stage-based model for capitalizing internal-use software development costs with a principles-based model that begins capitalization when management authorizes and commits to fund a project and it is probable the project will be completed and the software placed into service. The guidance also incorporates website development costs into the internal-use software framework and requires enhanced disclosures related to capitalized costs and amortization. ASU 2025-06 is effective for annual and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is in the process of assessing the impact the adoption of this guidance will have on the Company’s financial statement disclosures.

In November 2025, the FASB issued ASU 2025-08, Financial Instruments — Credit Losses (Topic 326): Purchased Loans. The ASU expands the use of the gross up method to certain acquired loans beyond purchased financial assets with credit deterioration. The ASU applies the gross-up method to acquired non-PCD assets that are purchased seasoned loans ultimately eliminating the Day 1 credit loss expense and reducing interest income recognized in subsequent periods. ASU 2025-08 is effective for annual and interim periods beginning after December 15, 2026, with early adoption permitted. The Company is in the process of assessing the impact the adoption of this guidance will have on the Company’s financial statement disclosures.

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements ("ASU 2025-11"). This ASU improves the navigability of interim disclosure requirements, provides additional guidance on the disclosures required in interim reporting periods, and introduces a principle requiring entities to disclose events occurring since the end of the most recent annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for annual and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is in the process of assessing the impact the adoption of this guidance will have on the Company’s financial statement disclosures.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements ("ASU 2025-12"). ASU 2025-12 addresses suggestions received from stakeholders regarding the ASC and makes other incremental improvements to U.S. GAAP. The update represents changes to the Codification that clarify, correct errors in or make other improvements to a variety of topics that are intended to make it easier to understand and apply. ASU 2025-12 is effective for annual and

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BETTER HOME & FINANCE HOLDING COMPANY

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

interim periods beginning after December 15, 2026, with early adoption permitted. The Company is in the process of assessing the impact the adoption of this guidance will have on the Company’s financial statement disclosures.

3. Assets and Liabilities Held for Sale and Discontinued Operations

During the fourth quarter of 2024, management enacted a plan to sell several entities in the U.K. and were classified within assets held for sale. During the first quarter of 2026, the Company completed the sale of its Better HomeOwnership Ltd subsidiary, which had previously been classified as held for sale. In connection with the transaction and pursuant to a share sale and settlement agreement executed in March 2026, the Company transferred 100% of the issued share capital of the BHO Group and settled certain related obligations. Total consideration associated with the transaction was approximately $2.3 million (£1.8 million), which reflects the net proceeds received by the Company after consideration of amounts settled on behalf of third parties and other transaction-related adjustments. As a result of this transaction, the Company recognized a gain on the disposal of approximately $1.0 million, which is included within other expense in the condensed consolidated statements of operations and comprehensive loss.

As of the first quarter of 2026, one of these disposal groups remains unsold and is classified as held for sale. The remaining disposal group is being actively marketed, is available for immediate sale in its present condition, and management continues to expect that the sale will be completed within 12 months. Management has evaluated the criteria under ASC 360 and concluded that the held-for-sale classification remains appropriate as of March 31, 2026. For the three months ended March 31, 2026, the Company recorded an immaterial write up of the remaining U.K. entity classified as held for sale to fair value, less cost to sell, which is included in other expenses on the condensed consolidated statements of operations and comprehensive loss.

The following table represents summarized balance sheet information by major class of assets and liabilities held for sale:


(Amounts in thousands)	March 31, 2026		December 31, 2025
Cash and cash equivalents	$	574	$	710
Restricted cash	5,961		4,256

Mortgage loans held for sale, at fair value	—		1,954

Other receivables, net	677		706
Property and equipment, net	—		2
Internal use software and other intangible assets, net	991		2,357

Goodwill	—		711
Prepaid expenses and other assets	9		69
Write down of assets to fair value less cost to sell	(1,954)		(2,078)
Total assets held for sale	$	6,258	$	8,687

Accounts payable and accrued expenses	$	118	$	424
Escrow payable and other customer accounts	5,961		4,256


Other liabilities	—		122
Total liabilities held for sale	$	6,079	$	4,802

During the fourth quarter of 2025, management approved a plan to sell its Birmingham Bank business, which represents the Company’s reportable banking segment. Although the decision to pursue a sale was made in the fourth quarter of 2025, the criteria for held-for-sale classification under ASC 360 were not met as of December 31, 2025 because a sale was not yet considered probable.

During the first quarter of 2026, the Company advanced the sale process by actively engaging with potential buyers, receiving a non-binding indicative offer, and progressing negotiations related to a potential sale transaction. Based on these developments, management concluded that the held-for-sale criteria under ASC 360 were met as of March 31, 2026, including that the sale was probable and expected to be completed within twelve months, subject to regulatory approvals

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~Revenue~~and ~~Recognition—The~~customary ~~Company~~closing ~~generates~~conditions. ~~revenue~~Accordingly, ~~from~~ the ~~following~~Birmingham ~~streams:~~Bank business was classified as held for sale and presented as discontinued operations for all periods presented.

~~1)Gain~~The onCompany ~~loans,~~evaluated ~~net~~the ~~includes~~held-for-sale ~~revenues~~criteria ~~generated~~under ~~from~~ASC 360 and determined that such criteria were met as of the ~~Company’s~~first ~~loan~~quarter ~~production~~of ~~process~~2026. ~~See~~As ~~Note~~a 3result, the assets and liabilities of the Birmingham Bank disposal group have been classified as held for sale in the condensed consolidated balance sheet as of March 31, 2026. ~~The~~In ~~components~~addition, the assets and liabilities of ~~gain~~the ondiscontinued ~~loans~~operation have been presented separately in the consolidated balance sheets for all periods presented. Prior-period amounts have been reclassified to conform to the current-period presentation. Such reclassification did not affect total assets, total liabilities, net ~~are~~loss, asor ~~follows:~~shareholders’ equity.

~~i.Gain~~Assets onand ~~sale~~liabilities ofclassified ~~loans,~~as ~~net—This~~held ~~represents~~for ~~the~~sale ~~premium~~are measured at the ~~Company~~lower ~~receives~~of intheir ~~excess~~carrying ofamount ~~the~~or ~~loan~~estimated ~~principal~~fair ~~amount~~value ~~and~~less ~~certain~~costs ~~fees~~to ~~charged~~sell. byFor ~~loan~~the ~~purchasers~~three ~~upon~~months ~~sale~~ended ofMarch ~~loans~~31, ~~into~~2026, the ~~secondary~~Company ~~market.~~recorded ~~Gain~~a onwrite ~~sale~~down of ~~loans~~the Birmingham disposal group to fair value, ~~net~~less ~~includes~~cost ~~unrealized~~to ~~changes~~sell, in the amount of $18.1 million. The estimated fair value of ~~LHFS,~~the ~~which~~Birmingham ~~are~~Bank ~~recognized~~disposal group is based on management’s assessment of expected proceeds from a ~~loan~~potential bysale, ~~loan~~considering ~~basis~~available asmarket ~~part~~information ofand ~~current~~discussions ~~period~~with ~~earnings~~potential ~~until~~buyers. ~~the~~Costs ~~loan~~to issell ~~sold~~primarily oninclude ~~the~~legal, ~~secondary~~advisory, ~~market~~and other transaction-related costs. The determination of fair value less cost to sell involves judgment and may change as additional information becomes available. In addition, the Company recorded an impairment to internal use software related to the Birmingham disposal group of ~~LHFS~~$0.3 million which is ~~measured~~included ~~based~~within discontinued operations on ~~observable~~the ~~market~~condensed ~~data~~consolidated statements of operations and comprehensive loss.

~~Gain~~The onfollowing ~~sale~~table ofrepresents ~~loans,~~summarized ~~net~~balance ~~also~~sheet ~~includes~~information ~~the~~by ~~changes~~major inclass ~~fair value~~ of ~~IRLCs~~assets and ~~forward~~liabilities sale commitments. IRLCs include the fair value upon issuance with subsequent changes in the fair value recorded in each reporting period until the loan is sold on the secondary market. Fair value of forward sale commitments hedging IRLCs and LHFS are measured based on quoted prices for ~~similar~~discontinued ~~assets.~~ operations:

ii.Broker Revenue—Includes fees that the Company receives for originating loans on behalf of third-parties.


(Amounts in thousands)	March 31, 2026		December 31, 2025
Cash and cash equivalents	$	6,392	$	20,470
Restricted cash	608		7,861
Short-Term investment	103,616		103,607

Loans held for investment (net of allowance for credit losses of $2,652 and $2,251)	728,284		723,333
Other receivables, net	4,098		4,092
Property and equipment, net	119		129
Internal use software and other intangible assets, net	4,407		4,636
Derivative assets	4,929		—

Prepaid expenses and other assets	671		749
Write down of assets to fair value less cost to sell	(18,128)		—
Total assets of discontinued operations	$	834,996	$	864,877

Accounts payable and accrued expenses	$	17,557	$	15,567

Customer deposits	755,085		762,984
Derivative liabilities	—		1,627

Total liabilities of discontinued operations	$	772,642	$	780,178

~~iii.Loan~~The ~~repurchase~~following ~~reserve~~table ~~recovery/(provision)—In~~represents ~~connection with~~ the ~~sale~~results of ~~loans~~operations ~~on the secondary market, the Company makes customary representations and warranties to the relevant loan purchasers about various characteristics~~ of ~~each loan, such as~~ the ~~origination~~Birmingham ~~and~~Bank ~~underwriting guidelines~~business, ~~including~~which ~~but~~have ~~not~~been ~~limited~~classified toas ~~the~~discontinued ~~validity~~operations ofin the ~~lien~~condensed ~~securing~~consolidated ~~the~~statements ~~loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local laws. In the event~~ of aoperations ~~breach of its representations~~ and ~~warranties,~~comprehensive ~~the~~loss ~~Company may be required to repurchase the loan with the identified defects. The provision~~ for ~~loan repurchase reserve, represents~~ the ~~charge~~periods ~~for~~presented: ~~these potential losses.~~

2)Other revenue consists of revenue from the Company’s additional offerings such as real estate services, insurance services, and international lending revenue which is recognized based on ASC 606, Revenue from Contracts with Customers. ASC 606 outlines a single comprehensive model in accounting for revenue arising from contracts with customers. The core principle, involving a five-step process, of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

For real estate services, the Company generates revenues from fees related to real estate agent services, mainly from cooperative brokerage fees from the Company’s network of third-party real estate agents, which assist customers in the purchase or sale of a home. The Company recognizes revenues from real estate services upon completion of the performance obligation which is when the mortgage transaction closes. Performance obligations for real estate agent services are typically completed 40 to 60 days after the commencement of the home search process. Payment for these services is typically settled in cash as part of closing costs to the borrower upon closing of the mortgage transaction.

Also included in real estate services are settlement services which are revenue from fees charged for services such as title search fees, wire fees, policy and document preparation, and other mortgage settlement services. The Company recognizes revenues from settlement services upon completion of the performance obligation which is when the mortgage transaction closes.

Insurance revenue primarily consists of fees earned on homeowners insurance policies and title insurance. The Company generates revenues from agent fees on homeowners insurance policies obtained by customers through the Company’s marketplace of third-party insurance carriers. The Company offers title insurance as an agent and works with third-party providers that underwrite the title insurance policies. For title insurance, the Company recognizes revenue from fees upon the completion of the performance obligation which is when the mortgage transaction closes. For homeowners insurance and title insurance, the Company is the agent in the transactions as

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

the Company does not control the ability to direct the fulfillment of the service, is not primarily responsible for fulfilling the performance of the service, and does not assume the risk in a claim against a policy.


	Three Months Ended March 31,
(Amounts in thousands, except per share amounts)	2026		2025
Revenues:
Other revenue	$	(22)	$	380
Net interest income
Interest income	11,284		2,850
Interest expense	(8,606)		(2,005)
Net interest income	2,678		845
Total net revenues from discontinued operations	2,656		1,225
Expenses:
Compensation and benefits	2,765		2,776
General and administrative	1,069		853
Technology	591		533
Marketing and advertising	2		8
Depreciation and amortization	286		202
Other expenses	18,904		1,438
Total expenses from discontinued operations	23,617		5,810
Net loss discontinued operations	$	(20,961)	$	(4,585)

Loss per share attributable to common stockholders, basic and diluted:
Net loss from discontinued operations	$	(1.28)	$	(0.30)
Weighted average common shares outstanding — basic and diluted	16,410,119		15,166,729

~~For~~The ~~international~~following ~~lending~~table ~~revenue,~~presents ~~the~~cash ~~Company~~flows ~~generates revenue primarily~~ from ~~broker~~discontinued ~~fees~~operations ~~earned~~included in ~~the~~our ~~U.K.~~condensed ~~The~~consolidated ~~Company~~statement ~~recognizes international lending revenue upon completion~~ of ~~the~~cash ~~performance~~flows ~~obligation~~for ~~which is when~~ the ~~mortgage~~periods ~~provider approves the mortgage.~~ presented:

3)Net interest income includes interest income from LHFS calculated based on the note rate of the respective loan, interest income from short-term investments, and interest income on loans held for investment. Interest expense includes interest expense on warehouse lines of credit, interest expense on customer deposits, as well as interest expense on the Convertible Notes.


	Three Months Ended March 31,
(Amounts in thousands)	2026		2025

















Net cash used in operating activities-discontinued operations	$	(657)	$	(10,912)





Net cash used in investing activities-discontinued operations	(11,238)		(156,302)



Net cash (used in)/provided by financing activities	(7,900)		172,181

Compensation and Benefits—Compensation and benefits include salaries, wages, and incentive pay as well as stock-based compensation, employee health benefits, 401(k) plan benefits, and social security and unemployment taxes4. Stock-based compensation includes expenses associated with restricted stock unit grants, performance stock unit grants, and stock option grants, under the Company’s stock plans. Compensation expense for the stock-based payments is based on the fair value of the awards on the grant date. Compensation and benefits expenses are expensed as incurred with the exception of stock-based compensation, which is recognized in a straight-line basis over the requisite service period. Revenue

~~General~~Revenue— Revenue presented in this note reflects continuing operations and ~~Administrative~~excludes ~~Expenses—General~~amounts related to discontinued operations (See Note 3). Revenue includes amounts recognized outside the scope of ASC 606, primarily gain on sale of loans, net, loan repurchase reserve, and ~~administrative~~interest ~~expenses~~income ~~include~~associated ~~rent~~with lending and ~~occupancy~~investment ~~expenses~~activities, ~~insurance,~~which are accounted for under ASC 860 and ~~external~~other ~~legal~~applicable financial instrument guidance. Revenue recognized within the scope of ASC 606 primarily relates to fee-based service revenues, ~~tax~~such as broker and ~~accounting~~real estate services revenues. ~~General~~The ~~and~~Company ~~administrative~~disaggregates ~~expenses~~revenue ~~are~~based ~~expensed~~on asthe ~~incurred~~following revenue streams.

Technology Expenses—Technology expenses consist of direct costs related to vendors engaged in product management, design, development, and testing of the Company’s websites and products. Technology expenses are expensed as incurred.

Marketing and Advertising Expenses—Marketing and advertising expenses consist of direct costs related to customer acquisition expenses, brand costs, and paid marketing. For customer acquisition expenses, the Company primarily generates loan origination leads for which the Company incurs “pay-per-click” expenses. Marketing and advertising expenses are expensed as incurred.

Loan Origination Expenses—Loan origination expenses consist of costs directly attributable to the production of loans such as appraisal fees, processing expenses, underwriting, closing fees, and servicing costs. These expenses are expensed as incurred.

Other Expenses/(Income)—Other expenses consist of direct costs related to other non-mortgage homeownership activities, including settlement service expenses, lead generation expenses, expenses incurred in relation to our international lending activities, restructuring and impairment expenses, and gains and losses from equity related liabilities. Settlement service expenses consist of fees for transactional services performed by third-party providers for borrowers while lead generation expenses consist of fees for services related to real estate agents. Other expenses are expensed as incurred.

Segments—The Company’s chief operating decision maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities as a single operating and reportable segment at the consolidated level. Accordingly, the CODM uses consolidated net income to measure segment profit or loss, allocate resources and assess performance. Further, the CODM reviews and utilizes functional expenses (general and administrative, marketing and advertising, loan origination expense, and others as presented in the condensed consolidated statements of operations and comprehensive loss) at the consolidated level to manage the Company’s operations. Other segment items included in consolidated net income are net interest income and income tax expense (benefit), which are reflected in the condensed consolidated statements of operations and comprehensive loss.

Recently Issued Accounting Standards Not Yet Adopted

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

not yet been issued. The Company is in the process of assessing the impact the adoption of this guidance will have on the Company’s financial statement disclosures.

3. Revenue

Revenue— The Company disaggregates revenue based on the following revenue streams:

Gain on loans, net consisted of the following:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Amounts in thousands)

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

Gain on sale of loans, net

3644,~~249~~064

1521,~~836~~278

~~91,542~~

~~44,032~~

Broker revenue

1,~~608~~375

21,~~441~~171

~~5,114~~

~~7,184~~

Loan repurchase reserve recovery/(provision)

(1,436)

3,226

1,113

10,168

Loan repurchase reserve (provision)/recovery

(638)

2,127

Total gain on loans, net

3644,~~421~~801

2124,~~503~~576

~~97,769~~

~~61,384~~

Other revenue consisted of the following:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Amounts in thousands)

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

International lending revenue

~~2,267~~47

1,~~190~~538

~~5,241~~

~~3,517~~

Insurance services

~~587~~578

~~438~~673

~~2,085~~

~~1,614~~

Real estate services

~~466~~170

~~753~~947

~~1,564~~

~~1,753~~

Other revenue/(loss)

(543)

689

1,217

1,884

Other revenue

347

492

Total other revenue

21,~~777~~142

3,~~070~~650

~~10,107~~

~~8,768~~

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BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Net interest income consisted of the following:

	Three Months Ended September 30,				Nine Months Ended September 30,
	Three Months Ended March 31,
(Amounts in thousands)	~~2025~~2026		~~2024~~2025		~~2025~~		~~2024~~
Interest income
Mortgage interest income	$	76,~~075~~941	$	56,~~400~~437	$	~~21,298~~	$	~~12,832~~
Interest income on loans held for investment	6,560		705		12,333		1,008
Interest income from investments	343		1,158
Interest income from investments	3,220		3,762		7,826		14,060
Total interest income	7,284		7,595
Total interest income	16,855		9,867		41,457		27,900
Interest expense
Interest expense
Warehouse interest expense	(5,730)		(2,788)
Warehouse interest expense	(5,627)		(3,178)		(14,142)		(7,575)
Other interest expense (1)	—		(1,705)
Interest expense on customer deposits	(6,559)		(637)		(12,916)		(1,007)
Total interest expense	(5,730)		(4,493)
Other interest expense (1)	—		(1,631)		(1,711)		(5,963)
Total net interest income	$	1,554	$	3,102
Total interest expense	(12,186)		(5,446)		(28,769)		(14,545)
Total net interest income/(loss)	$	4,669	$	4,421	$	12,688	$	13,355

__________________

(1) Primarily consists of interest on Convertible Notes, see Note 10 for more details.

45. Mortgage Loans Held for Sale and Warehouse Lines of Credit

The Company has the following outstanding warehouse lines of credit:

(Amounts in thousands)	Maturity	Facility Size		~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
Funding Facility 1 (1)	~~May~~March 132, ~~2025~~2027	$	—150,000	$	—117,767	$	6081,~~747~~423
Funding Facility 2 (2)	~~March~~January 621, ~~2026~~2027	~~150~~350,000		92200,~~016~~722		74117,~~472~~499
Funding Facility 3 (3)	~~June~~April 305, 2026	~~175~~250,000		~~138~~189,~~997~~092		~~108~~212,~~851~~940
Funding Facility 4 (4)	April 5, 2026	250,000		118,758		—
Total warehouse lines of credit		$	750,000	$	507,581	$	411,862
Total warehouse lines of credit		$	575,000	$	349,771	$	244,070

__________________

(1)Interest charged under the facility is at the 30-day term SOFR plus 1.75% - 2.~~125~~25%. ~~During~~Cash ~~the~~collateral ~~second~~deposit ~~quarter~~ of ~~2025,~~$3.8 ~~Funding~~million ~~Facility~~is 1maintained ~~was~~and ~~terminated~~included ~~prior~~in torestricted ~~maturity~~cash.

(2)Interest charged under the facility is at the 30-day term SOFR plus 21.1075% - 2.5075%. ~~Cash~~A ~~collateral~~compensating ~~deposit~~balance of $37.80 million is maintained and included in ~~restricted~~cash and cash equivalents. This amount represents a compensating balance arrangement and is not legally restricted. Failure to maintain the required balance may limit the Company’s ability to obtain future advances under the facility. As of March 31, 2026, the Company was in compliance with this requirement.

~~(3)Interest charged under the facility is at the 30-day term SOFR plus 1.75% - 3.75%. There is no cash collateral deposit maintained as of September 30, 2025.~~15

(4)Interest charged under the facility is at the daily simple SOFR plus 1.75% - 2.50%. There is no cash collateral deposit maintained as of September 30, 2025.

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(3)Interest charged under the facility is at the daily simple SOFR plus 1.75% - 2.50%. There is no cash collateral deposit maintained as of March 31, 2026. Subsequent to March 31, 2026 , the Company extended the maturity to April 6, 2027 and increased the total capacity to $350.0 million of which $100.0 million is committed.

The unpaid principal amounts of the Company’s LHFS are also pledged as collateral under the relevant warehouse funding facilities. The Company’s LHFS are summarized below by those pledged as collateral and those fully funded by the Company:

(Amounts in thousands)	~~September~~March 3031, ~~2025~~2026		December 31, ~~2024~~2025
Funding Facility 1	$	—124,112	$	6189,~~341~~483
Funding Facility 2	94214,~~594~~877		83129,~~562~~515
Funding Facility 3	~~151~~205,~~996~~047		~~123~~226,~~081~~822
Funding Facility 4	118,770		—
Total LHFS pledged as collateral	544,036		445,820
Total LHFS pledged as collateral	365,360		267,984
Company-funded LHFS	6,474		6,197
Company-funded LHFS	22,934		10,056
Company-funded HELOC	7,621		7,308
Company-funded HELOC	19,266		118,879
Total LHFS	558,131		459,325
Total LHFS	407,560		396,919
Fair value adjustment	4,905		7,356
Fair value adjustment	6,438		2,322
Total LHFS at fair value	$	563,036	$	466,681
Total LHFS at fair value	$	413,998	$	399,241

~~Average~~For ~~days~~the ~~loans~~three ~~held~~months ~~for~~ended ~~sale~~March 31, ~~other~~2026 ~~than~~and 2025, the Company~~-funded~~ ~~LHFS~~recognized net gains of $4.9 million and ~~Company-funded~~$5.3 ~~HELOC~~million, ~~for~~respectively, related to changes in the ~~three~~fair ~~and~~value ~~nine~~of ~~months~~mortgage ~~ended~~loans ~~September 30,~~held ~~2025~~for ~~were~~sale, ~~approximately~~which 26are ~~days~~included ~~and~~within 29gain ~~days~~on loans, ~~respectively~~net in the condensed consolidated statements of operations and comprehensive loss. Average days loans held for sale, other than Company-funded LHFS and Company-funded HELOC, for the three ~~and nine~~ months ended ~~September 30~~March 31, ~~2024~~2026 and 2025, were approximately 2437 days and 2821 days, respectively. This is defined as the average days between funding and sale for loans funded during each period. As of ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, the unpaid principal balance of loans that were either 90 days past due or non-performing was $63.25 million and $12.4 million, respectively. As of March 31, 2026 and December 31, 2025, loans on non-accrual status were immaterial.

For the ~~nine~~three months ended ~~September 30~~March 31, ~~2025~~2026 and ~~2024~~2025, the weighted average interest rate for the warehouse lines of credit was 65.0843% and 6.9046%, respectively. The warehouse lines of credit contain certain restrictive covenants that require the Company to maintain certain minimum net worth, liquid assets, liquidity ratios, and leverage ratios, and earnings. In addition, these warehouse lines also require the Company to maintain compensating cash balances. ~~which~~As ~~aggregated~~of toMarch 31, 2026 and December 31, 2025, the Company maintained $3.8 million ~~and~~of ~~$18.8~~cash ~~million~~collateral asdeposits ofincluded ~~September 30,~~in ~~2025~~restricted cash and ~~December 31,~~$7.0 ~~2024,~~million ~~respectively,~~of ~~and~~compensating ~~are~~balances included in ~~restricted~~cash and cash equivalents on the accompanying ~~condensed~~ consolidated balance sheets. The Company was in compliance with all financial covenants under the warehouse lines as of ~~September~~March 3031, ~~2025~~2026.

56. Loans Held for Investment

(Amounts in thousands)	September 30, 2025		December 31, 2024
Property - Buy to Let	$	637,425	$	111,630
Other	742		1,514
Deferred fees, net	(12,448)		—
Allowance for credit losses	(2,323)		(1,667)
Total Loans Held for Investment, net	$	623,396	$	111,477

The majority of the Company’s Loans Held for Investment portfolio consists of property - buy to let loans, which is the purchase of property for the purpose of renting to a tenant, which makes up 99.9% and 99.9% of the total loan portfolio as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, the Company’s loans held for investment are included within assets of discontinued operations on the condensed consolidated balance sheets as they relate to the Birmingham Bank disposal group (see Note 3). Prior to classification as held for sale, the Company’s Loans

Accrued interest receivable on loans receivable totaled $0.9 million and $0.4 million, respectively, as of September 30, 2025 and December 31, 2024 and is included in other receivables, net on the condensed consolidated balance sheets. The Company elected the practical expedient to exclude the applicable accrued interest receivable on loans receivable from the disclosed amortized cost basis. 16

~~The~~Table ~~Company concluded that it has a non-accrual policy which allows for the timely reversal~~ of ~~accrued interest should an asset be placed on non-accrual; accordingly, there was no allowance for credit losses for accrued interest~~ Contents

BETTER HOME & FINANCE HOLDING COMPANY

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Held for Investment portfolio was summarized as follows:


(Amounts in thousands)	March 31, 2026		December 31, 2025
Property - Buy to Let	$	748,146	$	736,807
Other	453		544
Deferred fees, net	(12,899)		(13,713)
Fair value hedge basis adjustment	(4,764)		1,946
Allowance for credit losses	(2,652)		(2,251)
Total Loans Held for Investment, net	$	728,284	$	723,333

The following table presents the activity in the allowance for credit losses related to loans held for investment:


	Three Months Ended March 31,
(Amounts in thousands)	2026		2025
Balance at beginning of period	$	(2,251)	$	(1,667)
Provision for credit losses	(439)		(1,282)


Effect of foreign currency exchange rate changes	38		(51)
Balance at end of period	$	(2,652)	$	(3,000)

Accrued interest receivable on loans receivable totaled $1.2 million and $1.0 million, respectively, as of March 31, 2026 and December 31, 2025, which are included within assets of discontinued operations on the condensed consolidated balance sheets. The Company elected the practical expedient to exclude the applicable accrued interest receivable on loans receivable from the disclosed amortized cost basis.

The Company concluded that it has a non-accrual policy which allows for the timely reversal of accrued interest should an asset be placed on non-accrual; accordingly, there was no allowance for credit losses for accrued interest receivable on loans receivable as of March 31, 2026. When writing off uncollectible accrued interest receivables on its loans held for investment portfolio, the Company considers 90 days to be a timely manner.

Uncollectible amounts of accrued interest receivable are charged off by reversing interest income. The Company had no charge offs of uncollectible accrued interest on its outstanding loans held for investment during the three months ended March 31, 2026 and 2025.

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. As of March 31, 2026, there were ten loans with a total unpaid principal balance $2.0 million of loans held for investment past due. As of December 31, 2025, there was an immaterial amount of loans held for investment past due.

The Company considers loans for which the repayment is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, or where foreclosure is probable, to be collateral dependent. As of both March 31, 2026, and December 31, 2025, there was one loan with a total unpaid balance of $2.5 million in which formal foreclosure proceedings were in process.

Loans are placed on non-accrual status and the accrual of interest is discontinued if principal or interest payments become 90 days past due and/or management deems the collectability of the principal and/or interest to be in question. Loans to a customer whose financial condition has deteriorated are considered for non-accrual status whether or not the loan is 90 days or more past due. Generally, payments received on non-accrual loans are recorded as principal reductions. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. As of March 31, 2026 and December 31, 2025, there were no loans that were placed on non-accrual status.

During the three months ended March 31, 2026 and 2025, there were no modifications for loans to borrowers experiencing financial difficulty.

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~receivable~~public oninformation, ~~loans~~and ~~receivable~~current aseconomic ~~of September 30, 2025~~trends. ~~When~~The ~~writing~~Company ~~off~~analyzes ~~uncollectible accrued interest receivables on its~~ loans ~~held~~individually ~~for~~by ~~investment~~classifying ~~portfolio,~~ the ~~Company~~loans ~~considers~~as ~~90 days~~ to becredit ~~a timely manner~~risk.

~~Uncollectible~~This ~~amounts~~analysis includes all loans with the exception of ~~accrued~~homogeneous ~~interest~~loans, ~~receivable~~or loans that are ~~charged~~evaluated ~~off~~together byin ~~reversing~~pools ~~interest~~of ~~income~~similar loans (i.e., ~~The~~home ~~Company~~mortgage ~~had~~loans, nohome ~~charge~~equity ~~offs~~lines of ~~uncollectible~~credit, ~~accrued~~overdraft ~~interest~~loans, onexpress ~~its~~business ~~outstanding~~loans, and automobile loans). ~~held~~This ~~for~~analysis ~~investment~~is ~~during~~performed ~~the~~at ~~three~~least ~~and~~on ~~nine~~a ~~months~~quarterly ~~ended~~basis. ~~September 30,~~Homogeneous ~~2025~~loans are not risk rated and ~~2024~~credit risk is analyzed largely on the expected maturity of the loans.

~~Loans~~The ~~are~~Company ~~considered~~utilizes ~~past~~maturity ~~due~~bands ifto assess the ~~required~~probability ~~principal~~of ~~and~~credit ~~interest~~losses ~~payments~~within ~~have~~the ~~not~~portfolio. ~~been~~The ~~received~~three main bands are as offollows: ~~the~~0-20 ~~date~~months, ~~such~~21-40 ~~payments~~months, ~~were~~and ~~due~~over 40 months. AsThe offollowing ~~both~~table ~~September 30,~~presents ~~2025~~amortized ~~and~~cost ~~December 31~~for outstanding loans, ~~2024~~by ~~there~~class ~~were~~and noyear ~~loans~~of ~~held~~origination/renewal, ~~for~~as ~~investment~~of ~~past~~March 31, ~~due~~2026 and December 31, 2025.

The tables below present loans by credit quality indicator and vintage year. The amounts presented by year of origination exclude fair value hedge accounting basis adjustments and net deferred fees, which are presented separately above:

The Company considers loans for which the repayment is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, or where foreclosure is probable, to be collateral dependent. As of September 30, 2025 and December 31, 2024, there were no loans secured by any asset type for which formal foreclosure proceedings are in process.


March 31, 2026
(Amounts in thousands)	2026		2025		2024		2023		2022		Prior		Total
Property - Buy to Let
0-20 Months	$	—	$	—	$	—	$	—	$	—	$	—	$	—
21-40 Months	—		—		222		—		—		—		222
Over 40 Months	24,721		594,914		114,632		758		—		—		735,025
Total	$	24,721	$	594,914	$	114,854	$	758	$	—	$	—	$	735,247

Other
0-20 Months	$	—	$	—	$	—	$	—	$	359	$	79	$	438
21-40 Months	—		—		—		15		—		—		15
Over 40 Months	—		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	15	$	359	$	79	$	453

Total	$	24,721	$	594,914	$	114,854	$	773	$	359	$	79	$	735,700

Loans are placed on non-accrual status and the accrual of interest is discontinued if principal or interest payments become 90 days past due and/or management deems the collectability of the principal and/or interest to be in question. Loans to a customer whose financial condition has deteriorated are considered for non-accrual status whether or not the loan is 90 days or more past due. Generally, payments received on non-accrual loans are recorded as principal reductions. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. As of September 30, 2025 and December 31, 2024, there were no loans that were placed on non-accrual status.


December 31, 2025
(Amounts in thousands)	2025		2024		2023		2022		2021		Prior		Total
Property - Buy to Let
0-20 Months	$	—	$	—	$	—	$	—	$	—	$	—	$	—
21-40 Months	—		226		—		—		—		—		226
Over 40 Months	605,424		116,675		769		—		—		—		722,868
Total	$	605,424	$	116,901	$	769	$	—	$	—	$	—	$	723,094

Other
0-20 Months	$	—	$	—	$	—	$	406	$	125	$	—	$	531
21-40 Months	—		—		13		—		—		—		13
Over 40 Months	—		—		—		—		—		—		—
Total	$	—	$	—	$	13	$	406	$	125	$	—	$	544

Total	$	605,424	$	116,901	$	782	$	406	$	125	$	—	$	723,638

During the three and nine months ended September 30, 2025 and 2024, there were no modifications for loans to borrowers experiencing financial difficulty.

Loans are categorized into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, current financial information, historical payment experience, credit documentation, public information, and current economic trends. The Company analyzes loans individually by classifying the loans as to credit risk.

This analysis includes all loans with the exception of homogeneous loans, or loans that are evaluated together in pools of similar loans (i.e., home mortgage loans, home equity lines of credit, overdraft loans, express business loans, and automobile loans). This analysis is performed at least on a quarterly basis. Homogeneous loans are not risk rated and credit risk is analyzed largely by the contractual maturity and payment status of the loan.

The Company utilizes maturity bands to assess the probability of credit losses within the portfolio. The three main bands are as follows: 0-20 months, 21-40 months, and over 40 months. The following table presents amortized cost for outstanding loans, by class and year of origination/renewal, as of September 30, 2025 and December 31, 2024.

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025
(Amounts in thousands)	2025		2024		2023		2022		2021		Prior		Total
Property - Buy to Let
0-20 Months	$	—	$	—	$	—	$	—	$	—	$	—	$	—
21-40 Months	—		—		—		—		—		—		—
Over 40 Months	507,388		116,822		767		—		—		—		624,977
Total	$	507,388	$	116,822	$	767	$	—	$	—	$	—	$	624,977
Other
0-20 Months	$	—	$	—	$	—	$	452	$	208	$	1	$	661
21-40 Months	—		—		13		68		—		—		81
Over 40 Months	—		—		—		—		—		—		—
Total	$	—	$	—	$	13	$	520	$	208	$	1	$	742
Total	$	507,388	$	116,822	$	780	$	520	$	208	$	1	$	625,719

7. Goodwill and Internal Use Software and Other Intangible Assets, Net

December 31, 2024
(Amounts in thousands)	2024		2023		2022		2021		2020		Prior		Total
Property - Buy to Let
0-20 Months	$	—	$	—	$	—	$	—	$	—	$	—	$	—
21-40 Months	—		—		—		—		—		—		—
Over 40 Months	110,891		739		—		—		—		—		111,630
Total	$	110,891	$	739	$	—	$	—	$	—	$	—	$	111,630
Other
0-20 Months	$	—	$	34	$	255	$	435	$	77	$	2	$	803
21-40 Months	—		13		630		68		—		—		711
Over 40 Months	—		—		—		—		—		—		—
Total	$	—	$	47	$	885	$	503	$	77	$	2	$	1,514
Total	$	110,891	$	786	$	885	$	503	$	77	$	2	$	113,144

6. Goodwill and Internal Use Software and Other Intangible Assets, Net

Changes in the carrying amount of goodwill, net consisted of the following:

	Nine Months Ended September 30,
	Three Months Ended March 31,
(Amounts in thousands)	~~2025~~2026		~~2024~~2025
Balance at beginning of period	$	2310,~~615~~995	$	3223,~~390~~615
Goodwill impairment	(488)		—
Reclassification of discontinued operations goodwill to assets held for sale	—		(12,999)
Effect of foreign currency exchange rate changes	~~1,386~~—		~~1,013~~379
Balance at end of period	$	2410,~~513~~995	$	3310,~~403~~995

~~For~~No impairment of goodwill was recognized for the three months ended ~~September 30~~March 31, ~~2025~~2026 and ~~2024,~~2025. noThere ~~impairment of goodwill~~ was ~~recognized.~~no ~~For~~cumulative ~~the~~impairment ~~nine~~related ~~months~~to ~~ended~~goodwill ~~September~~as 30of March 31, ~~2025~~2026 and ~~2024~~2025, as goodwill associated with the ~~Company~~Birmingham ~~recorded~~Bank ~~goodwill~~disposal ~~impairment~~group ~~charges~~is ofincluded ~~$0.5~~within ~~million~~assets ~~and~~of discontinued operations.

Internal use software and other intangible assets, net consisted of the following:


	As of March 31, 2026
(Amounts in thousands, except useful lives)	Weighted Average Useful Lives (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets with finite lives
Internal use software and website development	3.0	$	159,855	$	(143,797)	$	16,058
Intellectual property and other	5.0	1,697		(1,607)		90



Total Intangible assets with finite lives, net		161,552		(145,404)		16,148
Intangible assets with indefinite lives
Domain name		1,820		—		1,820



Total Internal use software and other intangible assets, net		$	163,372	$	(145,404)	$	17,968


	As of December 31, 2025
(Amounts in thousands, except useful lives)	Weighted Average Useful Lives (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets with finite lives
Internal use software and website development	3.0	$	156,482	$	(141,092)	$	15,390
Intellectual property and other	5.0	1,697		(1,558)		139
Total Intangible assets with finite lives, net		158,179		(142,650)		15,529
Intangible assets with indefinite lives
Domain name		1,820		—		1,820

Total Internal use software and other intangible assets, net		$	159,999	$	(142,650)	$	17,349

The December 31, 2025 amounts presented above have been reclassified to conform to the current-period presentation. Goodwill and intangible assets associated with the Birmingham Bank disposal group are not included in the tables above and are instead presented within assets of discontinued operations. See Note 3 for further details.

The Company capitalized $3.4 million and $2.7 million in internal use software and website development costs during the three months ended March 31, 2026 and 2025, respectively. Internal use software and website development costs during the three months ended March 31, 2026 and 2025, had a weighted-average amortization period of 3.0 years. Included in capitalized internal use software and website development costs are $1.0 million and $0.4 million of stock-based compensation costs for the three months ended March 31, 2026 and 2025, respectively. Amortization expense totaled $2.8 million and $3.4 million during the three months ended March 31, 2026 and 2025, respectively. For the three months

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~none,~~ended ~~respectively~~March 31, ~~which~~2026 isand ~~included~~2025, ~~within~~impairments ~~other expenses/(income) in the condensed consolidated statements~~ of ~~operations~~$0.3 million and ~~comprehensive~~none, ~~loss.~~respectively, ~~The~~were ~~goodwill~~recognized ~~impairment~~relating ~~is related~~ to ~~entities~~intangible ~~in the U~~assets.K. ~~for which management has classified as held for sale, see Note 8.~~

~~Internal~~Amortization ~~use~~expense ~~software~~related ~~and~~to ~~other~~ intangible assets as of March 31, ~~net~~2026 ~~consisted~~is ofexpected ~~the~~to ~~following~~be as follows:

	As of September 30, 2025
(Amounts in thousands)	Total
(Amounts in thousands, except useful lives)	Weighted Average Useful Lives (in years)		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
2026 (remaining)	$	6,801
Intangible assets with finite lives
2027	6,290
Internal use software and website development	3.4		$	158,241	$	(139,263)	$	18,978
2028	2,944
Intellectual property and other	5.5		2,627		(1,939)		688
2029	113
Total Intangible assets with finite lives, net			160,868		(141,202)		19,666
Total	$	16,148
Intangible assets with indefinite lives
Domain name			1,820		—		1,820
Licenses and other			34		—		34
Total Internal use software and other intangible assets, net			$	162,722	$	(141,202)	$	21,520

	As of December 31, 2024
(Amounts in thousands, except useful lives)	Weighted Average Useful Lives (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Intangible assets with finite lives
Internal use software and website development	3.0	$	147,994	$	(129,487)	$	18,507
Intellectual property and other	6.0	869		(291)		578
Total Intangible assets with finite lives, net		148,863		(129,778)		19,085
Intangible assets with indefinite lives
Domain name		1,820		—		1,820
Licenses and other		31		—		31
Total Internal use software and other intangible assets, net		$	150,714	$	(129,778)	$	20,936

8. Prepaid Expenses and Other Assets

The Company capitalized $2.8 million and $2.5 million in internal use software and website development costs during the three months ended September 30, 2025 and 2024, respectively. Included in capitalized internal use software and website development costs are $0.3 million and $0.4 million of stock-based compensation costs for the three months ended September 30, 2025 and 2024, respectively. Amortization expense totaled $3.3 million and $6.0 million during the three months ended September 30, 2025 and 2024, respectively. For the three months ended September 30, 2025 and 2024, no impairment was recognized relating to intangible assets.

The Company capitalized $8.5 million and $5.4 million in internal use software and website development costs during the nine months ended September 30, 2025 and 2024, respectively. Included in capitalized internal use software and website development costs are $1.1 million and $1.3 million of stock-based compensation costs for the nine months ended September 30, 2025 and 2024, respectively. Amortization expense totaled $10.1 million and $21.1 million during the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025 and 2024, no impairment was recognized relating to intangible assets.

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BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

7. Prepaid Expenses and Other Assets

Prepaid expenses and other assets consisted of the following:

	As of September 30,		As of December 31,
	As of March 31,		As of December 31,
(Amounts in thousands)	~~2025~~2026		~~2024~~2025
Prepaid expenses	$	13,~~999~~759	$	1711,~~165~~786
Tax receivables	46,~~483~~638		56,~~484~~242
Security deposits	8,~~664~~859		118,~~245~~763
Prefunded loans in escrow	24,~~830~~044		—352
Total prepaid expenses and other assets	$	2933,~~976~~300	$	3327,~~894~~143

The December 31, 2025 amounts presented above have been reclassified to conform to the current-period presentation. Prepaid expenses and other assets associated with the Birmingham Bank disposal group are not included in the table above and are instead presented within assets of discontinued operations. See Note 3 for further details.

The prefunded loans in escrow consist of loans that were funded in the current period but closed in the subsequent period. Due to the timing of the closing of these loans, they are not mortgage loans held for sale in the current period.

89. ~~Assets~~Customer ~~and Liabilities Held for Sale~~Deposits

~~During~~Customer ~~the~~Deposits—The ~~fourth~~Company ~~quarter~~offers ofindividual ~~2024,~~savings ~~management~~accounts ~~enacted~~and aother ~~plan~~depository toproducts ~~sell~~with ~~several~~differing ~~entities~~maturities inand ~~the~~interest rates through its U.K. ~~which~~banking ~~are~~operations. ~~being~~As ~~actively~~of ~~marketed~~March 31, ~~are~~2026 ~~available~~and ~~for~~December 31, ~~sale~~2025, incustomer ~~their~~deposits ~~current~~are ~~respective~~included ~~conditions,~~within ~~and~~liabilities ~~management~~of ~~expects~~discontinued tooperations ~~complete~~on the ~~respective~~condensed ~~sales~~consolidated ~~within~~balance ~~the~~sheets ~~year~~as ~~and~~they ~~all~~relate ~~criteria~~to ~~included~~the inBirmingham ~~Note~~Bank 2disposal ~~have~~group ~~been~~(see ~~met~~Note 3). The ~~following~~balance ~~table~~of ~~represents~~customer ~~summarized~~deposits ~~balance~~as ~~sheet information~~ of ~~assets~~March 31, 2026 and ~~liabilities~~December 31, ~~held~~2025 ~~for~~was ~~sale:~~$755.1 million and $763.0 million, respectively.

(Amounts in thousands)	September 30, 2025		December 31, 2024
Cash and cash equivalents	$	1,471	$	3,814
Restricted cash	4,513		3,868
Mortgage loans held for sale, at fair value	1,965		1,721
Other receivables, net	838		1,244
Property and equipment, net	—		35
Internal use software and other intangible assets, net	2,358		2,203
Goodwill	712		1,112
Prepaid expenses and other assets	359		634
Write down of assets to fair value less cost to sell	(4,520)		(4,220)
Total assets held for sale	$	7,696	$	10,411
Accounts payable and accrued expenses	404		1,684
Escrow payable and other customer accounts	4,513		3,868
Other liabilities	254		564
Total liabilities held for sale	$	5,171	$	6,116

For the nine months ended September 30, 2025, the Company recorded a write down of the disposal group to fair value, less cost to sell, in the amount of $0.4 million which is included in other expenses/(income) on the condensed consolidated statements of operations and comprehensive loss. For the nine months ended September 30, 2025, the Company recorded goodwill impairment relating to the entities in the U.K. classified as held for sale of $0.5 million which is included within other expense/(income) in the condensed consolidated statements of operations and comprehensive loss. No additional write downs were recorded for the three months ended September 30, 2025 and 2024.

During the third quarter of 2025, the Company completed the sale of its Trussle Lab Ltd subsidiary, which had previously been classified as held for sale. In connection with the transaction, and pursuant to a settlement agreement executed in September 2025 between Better Finance Ltd (a subsidiary of the Company) and Onedome Finance Ltd, the Company paid $1.6 million (£1.2 million) to transfer ownership and settle all related obligations associated with the entity. As a result of this transaction, the Company recognized a loss on disposal of $0.7 million (£0.5 million), which is included within other expense/(income) in the condensed consolidated statements of operations and comprehensive loss.

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

9. Customer Deposits

Customer Deposits—In relation to the Company’s banking activities tied to the Company’s acquisition of Birmingham Bank in the U.K., the Company offers individual savings accounts and other depository products with differing maturities and interest rates to its customers. The balance of customer deposits as of September 30, 2025 and December 31, 2024 was $694.8 million and $134.1 million, respectively, on the condensed consolidated balance sheets.

The following tables present average balances and weighted average rates paid on deposits for the periods indicated:

	Three Months Ended September 30,
	Three Months Ended March 31,
	2025				2024
	2026				2025
(Amounts in thousands)	Average Balance		Average Rate Paid		Average Balance		Average Rate Paid
Notice	$	~~142~~144,~~461~~577	3.7154	%	$	945,~~059~~456	23.5871	%
Term	~~470~~597,~~405~~515		4.4435	%	54160,~~789~~481		34.8672	%
Savings	~~147~~25,242		2.70	%	~~3,973~~516		21.0753	%
Total deposits	$	~~613~~767,~~013~~334	3.6253	%	$	67206,~~821~~453	23.8432	%

	Nine Months Ended September 30,
	2025				2024
(Amounts in thousands)	Average Balance		Average Rate Paid		Average Balance		Average Rate Paid
Notice	$	90,298	3.74	%	$	4,724	2.76	%
Term	319,129		4.58	%	28,012		3.86	%
Savings	371		2.31	%	4,298		2.16	%
Total deposits	$	409,798	3.54	%	$	37,034	2.93	%

The following table presents maturities of customer deposits:

(Amounts in thousands)	As of ~~September~~March 3031, ~~2025~~2026
Demand deposits	$	~~179~~163,~~832~~610
Maturing In:
2025	1,449
2026	106,570
2026	136,817
2027	192,105
2027	163,699
2028	152,587
2028	100,601
2029	39,421
2029	30,347
2030	99,176
Thereafter	821,~~070~~616
Total	$	~~694~~755,~~815~~085

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BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Interest expense on deposits is recorded in interest expense in the condensed consolidated statements of operations and comprehensive loss for the periods indicated as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Amounts in thousands)

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

Notice

1,~~485~~708

52482

~~2,798~~

Term

56,~~068~~883

~~587~~1,619

~~10,112~~

~~856~~

Savings

615

31—

Total Interest Expense

68,~~559~~606

~~670~~2,101

~~12,916~~

~~1,042~~

Deposits are for U.K. banking clients and are protected up to £85120 thousand ($~~114~~158.36 thousand) per eligible person by the Financial Services Compensation Scheme in the U.K. Ofof the total customer deposits as of ~~September~~March 3031, ~~2025~~2026, $~~195~~193.92 million were over the applicable ~~insured~~protected amount.

10. Senior Notes

Convertible Notes—As ofa ~~September 30,~~result ~~2025~~of ~~and~~the ~~December 31,~~April ~~2024,~~2025 ~~the~~Note ~~carrying~~Exchange ~~amount~~(see ofbelow), ~~the~~all Convertible Notes ~~was~~were ~~none and $519~~extinguished.7 ~~million~~Accordingly, onthere ~~the~~was ~~condensed~~no ~~consolidated~~outstanding balance ~~sheets,~~as ~~respectively.~~of ~~For~~March 31, ~~the~~2026 ~~three~~or ~~and nine months ended September~~December 3031, 2025, ~~the~~and ~~Company~~no ~~recorded~~interest aexpense ~~total~~was ofrecognized ~~none~~for ~~and~~three ~~$1.7~~months ~~million~~ended ofMarch ~~interest~~31, ~~expense related to the Convertible Notes~~2026. For the three ~~and nine~~ months ended ~~September~~March 3031, ~~2024~~2025, the Company recorded a total of $1.67 million ~~and $5.9 million~~ of interest expense related to the Convertible ~~Notes~~Note and relates to the period prior to the exchange. Interest expense from the Convertible Notes is included in interest expense within the condensed consolidated statements of operations and comprehensive loss. In February 2024, the Company made a cash payment in the amount of $2.5 million, which consisted of $1.1 million towards the principal and $1.4 million of interest from January 1, 2024 through February 15, 2024.

Note Exchange Agreement and Troubled Debt Restructuring—On April 12, 2025, the Company entered into a privately negotiated Exchange Agreement (the “Note Exchange Agreement”) with SB Northstar LP (the “Investor”), a related party, pursuant to which the Company and the Investor agreed to exchange (the “Exchange”) all of the $532.5 million total aggregate principal amount outstanding of the Company’s existing 1.00% Convertible Notes due 2028 (the “Existing Notes”) held by the Investor for (i) $155.0 million in aggregate principal amount of new 6.00% Senior Secured Notes due 2028 (the “Senior Notes”), and (ii) a cash payment of $110.0 million (the “Cash Payment”). The Company will not receive any cash proceeds in connection with the Exchange. The Exchange was subsequently consummated on April 28, 2025 (the “Closing Date”), upon which the Company received and cancelled all Existing Notes and the Investor forfeited any accrued and unpaid interest in respect of the Existing Notes to, but not including, the Closing Date.

Pursuant to the Note Exchange Agreement, the Company granted the Investor, conditioned on closing of the Exchange, a non-transferrable right to designate one non-voting board observer from June 1, 2025, for so long as the Investor and affiliates of the Investor continue to hold, in the aggregate, either (i) at least 25% of the initial aggregate principal amount of the Senior Notes or (ii) at least 12% of the sum of the outstanding shares of the Company’s Class A Common Stock, Class B Common Stock and Class C Common Stock, calculated on a fully diluted basis. 21

The Exchange was accounted for as a TDR under ASC 470-60. On the Closing Date, the principal amount was $532.5 million with a discount of $11.0 million for a net carrying value of $521.4 million. The Company made a cash payment on the Closing Date of $110.0 million and recognized the Senior Notes at a carrying value $200.4 million. The gain on troubled debt restructuring of $210.0 million was recognized through equity as the Investor is considered a related party. The Company also accrued for $1.0 million of expenses related to the TDR which reduced the gain recognized through equity.

Under the TDR accounting treatment, the carrying value of the Senior Notes of $200.4 million is made up of the total future undiscounted cash flows which includes principal of $155.0 million and interest make-whole as well as a redemption premium of $45.4 million. The interest make-whole and the redemption premium are related to the optional redemption feature where the Company can redeem all or part of the Senior Notes prior to December 31, 2028 at 108% of the principal plus a make-whole premium as discussed further below. The Company assumes contingent future payments will have to be paid and those amounts shall be included in the total future cash payments.

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~December 31,~~million ~~2024,~~total ~~the~~aggregate ~~carrying~~principal amount outstanding of the ~~Senior~~Company’s existing 1.00% Convertible Notes ~~was~~due 2028 (the “Existing Notes”) held by the Investor for (i) $~~198~~155.80 million ~~and~~in ~~none~~aggregate onprincipal ~~the~~amount ~~condensed~~of ~~consolidated~~new ~~balance~~6.00% ~~sheets,~~Senior ~~respectively.~~Secured InNotes ~~July~~due ~~2025,~~2028 (the ~~Company~~“Senior ~~made~~Notes”), and (ii) a cash payment of $1110.60 million ~~which~~(the ~~consisted~~“Cash ofPayment”). ~~interest~~The ~~from~~Company ~~April~~will ~~28,~~not ~~2025~~receive ~~through~~any ~~July~~cash ~~17,~~proceeds ~~2025.~~in Asconnection awith ~~result~~the ofExchange. ~~the~~The ~~accounting~~Exchange ~~treatment~~was ~~discussed~~subsequently ~~above~~consummated on April 28, ~~this~~2025 ~~payment~~(the ~~was~~“Closing ~~applied~~Date”), toupon ~~reduce~~which the ~~principal~~Company onreceived ~~the~~and ~~Senior~~cancelled all Existing Notes. ~~For~~and the ~~period~~Investor ~~July~~forfeited ~~18,~~any ~~2025~~accrued ~~through~~and ~~September 30,~~unpaid ~~2025,~~interest ~~the~~in ~~Company~~respect ~~has~~of ~~elected~~the toExisting ~~pay~~Notes ~~interest~~to, inbut ~~kind~~not onincluding, the ~~Senior~~Closing ~~Notes~~Date.

The Exchange was accounted for as a TDR under ASC 470-60. On the Closing Date, the principal amount was $532.5 million with a discount of $11.0 million for a net carrying value of $521.4 million. The Company made a cash payment on the Closing Date of $110.0 million and recognized the Senior Notes at a carrying value of $200.4 million. The gain on troubled debt restructuring of $210.0 million was recognized through equity as the Investor is considered a related party. The Company also accrued for $1.0 million of expenses related to the TDR which reduced the gain recognized through equity.

Under the TDR accounting treatment, the initial carrying value of the Senior Notes of $200.4 million is made up of the total future undiscounted cash flows which includes principal of $155.0 million and interest make-whole as well as a redemption premium of $45.4 million. The interest make-whole and the redemption premium are related to the optional redemption feature where the Company can redeem all or part of the Senior Notes prior to December 31, 2028 at 108% of the principal plus a make-whole premium as discussed further below. The Company assumes contingent future payments will have to be paid and those amounts shall be included in the total future cash payments.

Senior Notes—On the Closing Date, the Company entered into an indenture (the “Senior Notes Indenture”) with GLAS Trust Company LLC, as trustee and notes collateral agent (the “Trustee”). As of both March 31, 2026 and December 31, 2025, the carrying amount of the Senior Notes was $198.8 million on the condensed consolidated balance sheets. Cash interest payments are applied as reductions to the carrying amount of the Senior Notes in accordance with TDR accounting. For the period July 18, 2025 through March 31, 2026, the Company has elected to pay interest in kind on the Senior Notes.

The Senior Notes represent the Company’s senior secured obligations, and are secured by substantially all of the Company’s and its material domestic subsidiaries’ assets. The Senior Notes are (i) senior in right of payment to the Company’s existing and future senior, unsecured indebtedness to the extent of the value of the collateral; and (ii) senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated to the Senior Notes.

Interest on the Senior Notes is payable, at the Company’s election, in cash or by payment-in-kind payment by issuing additional notes in an aggregate principal amount equal to the relevant amount of interest paid in kind. The Senior Notes will accrue interest at a rate of 6.00% per annum, payable semi-annually in arrears on June 30 and December 31 of each year, beginning on June 30, 2025. The Senior Notes will mature on December 31, 2028.

The Senior Notes will be redeemable, in whole and not in part, at the Company’s option at any time prior to December 31, 2028, at a cash redemption price equal to 106.00% of the principal amount of the Senior Notes to be redeemed, plus accrued and unpaid interest, if any, to, but excluding, the redemption date, with an amount not exceeding the net cash proceeds of one or more “Equity Offerings” (as defined in the Senior Notes Indenture); provided that at least 60% of the aggregate principal amount of the Senior Notes remains outstanding immediately after the redemption and the redemption occurs within 150 days of the date of the closing of each such Equity Offering. Additionally, prior to December 31, 2028, the Company may redeem all or part of the Senior Notes at a redemption price equal to the sum of 108% of the principal amount of the Senior Notes to be redeemed, plus the “Make Whole Premium” (as defined in the Senior Notes Indenture) at the redemption date, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. If certain corporate events that constitute a “Change of Control Triggering Event” (as defined in the Senior Notes Indenture) occur, then noteholders may require the Company to repurchase all or any part of their Senior Notes at a cash repurchase price equal to 101% of the aggregate principal amount of the Senior Notes to be repurchased, plus accrued and unpaid interest, if any, to the date of settlement. The definition of Change of Control Triggering Event includes certain business combination transactions involving the Company.

~~11. Related Party Transactions~~22

The Company has entered into a number of commercial agreements with related parties, which management believes provide the Company with products or services that are beneficial to its commercial objectives. Often these products and services have been tailored to the Company’s specific needs or are part of new pilot programs, both for the Company and the counterparty, for which there are not clear alternative vendors offering comparable services to compare pricing with. It is reasonable to assume that none of these related party commercial agreements were structured at arm’s length and therefore may be beneficial to the counterparty.

TheNumber—The Company originally entered into a data analytics services agreement in August 2016 with TheNumber, LLC (“TheNumber”), an entity affiliated with both Vishal Garg, the Chief Executive Officer of the Company, and 1/0 Real Estate.

In September 2021, the Company and TheNumber entered into a technology integration and license agreement. The listed services provided by TheNumber are lead generation, market rate analysis, lead growth analysis, property listing analysis, automated valuation models, and financial risk analysis. Both parties agreed to jointly develop all aspects of this program, and the agreement provides for the utilization of TheNumber employees by the Company. In January 2024, the agreement was extended for an additional year. The services provided by TheNumber are not integral to the Company’s technology platform and amounts incurred are not material to the Company. In connection with these agreements, the Company paid expenses of $0.1 million and $0.2 million for the three months ended September 30, 2025 and 2024, respectively, which are included within general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss. The Company paid expenses of $0.7 million for both the nine months ended September 30, 2025 and 2024, respectively, which are included within general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss, and had a payable of $0.1 million and an immaterial amount as of September 30, 2025 and December 31, 2024, respectively, within accounts payable and accrued expenses on the condensed consolidated balance sheets.

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Notable—In previous years, the Company or subsidiaries of the Company, entered into several agreements (herein referred to as the “Notable Agreements”) with Notable Finance LLC (“Notable”), an entity in which Vishal Garg and 1/0 Real Estate (an entity affiliated with Vishal Garg), collectively hold a majority ownership interest11. Related ~~The~~Party Notable Agreements included products such as a consumer lending program, a non-revolving personal line of credit, and other financial products which were offered to borrowers of the Company. The Notable Agreements also included the ability for the Company to purchase up to $20.0 million of unsecured home improvement loans underwritten and originated by Notable for the Company’s customers. Transactions

~~During~~The ~~2024,~~Company ~~the~~has ~~Company~~entered ~~decided~~into toa ~~cease~~number ~~offering~~of commercial agreements with related parties, which management believes provide the Company with products ~~and~~or services ~~provided~~that ~~via~~are ~~the~~beneficial ~~Notable~~to ~~Agreements.~~its Ascommercial ofobjectives. ~~September 30,~~Often ~~2025~~these products and ~~December 31,~~services ~~2024,~~have been tailored to the Company’s ~~had~~specific ~~$2.8~~needs ~~million~~or ~~and~~are ~~$4.2~~part ~~million~~ of ~~unsecured~~new ~~home~~pilot ~~improvement~~programs, ~~loans~~both ~~purchased~~for ~~from~~the ~~Notable,~~Company ~~which~~and ~~are~~the ~~included~~counterparty, ~~within~~for ~~mortgage~~which ~~loans~~there ~~held~~are ~~for~~not ~~sale,~~clear atalternative ~~fair~~vendors ~~value~~offering oncomparable ~~the~~services ~~condensed~~to ~~consolidated~~compare ~~balance~~pricing ~~sheets~~with. ~~Notable~~It ~~will~~is ~~continue~~reasonable to ~~provide~~assume ~~servicing~~that ~~for~~none ~~the~~of ~~loans~~these ~~purchased~~related ~~from~~party ~~Notable~~commercial ~~that~~agreements ~~remain~~were onstructured ~~the~~at ~~Company~~arm’s ~~balance~~length ~~sheet.~~and therefore may be beneficial to the counterparty.

~~Other Related Party Services~~TheNumber—The Company ~~has~~originally ~~relationships~~entered ~~with~~into ~~1/0~~a ~~Capital~~data ~~LLC~~analytics ~~and~~services ~~Zethos~~agreement ~~Inc~~in ~~(doing~~August ~~business~~2016 aswith ~~“True~~TheNumber, ~~Work~~LLC (“TheNumber”), ~~companies~~an entity affiliated with both Vishal Garg, the Chief Executive Officer, ~~which~~of ~~provide services to~~ the Company ~~varying from data analytics to information technology support services. For the three and nine months ended September 30~~, ~~2025~~ and ~~2024,~~1/0 ~~the~~Real ~~Company recorded an immaterial amount~~Estate, ~~in relation to these services,~~ which ~~are~~is ~~included~~also inaffiliated ~~general~~with ~~and~~Vishal ~~administrative expenses on the consolidated statements of operations and comprehensive loss~~Garg.

In September 2021, the Company and TheNumber entered into a technology integration and license agreement. The listed services provided by TheNumber are lead generation, market rate analysis, lead growth analysis, property listing analysis, automated valuation models, and financial risk analysis. Both parties agreed to jointly develop all aspects of this program, and the agreement provides for the utilization of TheNumber employees by the Company. In March 2026, the agreement was extended through April 2026. The services provided by TheNumber are not integral to the Company’s technology platform and amounts incurred are not material to the Company. In connection with these agreements, the Company paid expenses of $0.2 million and $0.3 million for the three months ended March 31, 2026 and 2025, respectively, which are included within general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss and had a payable of none and $0.1 million amount as of March 31, 2026 and December 31, 2025, respectively, within accounts payable and accrued expenses on the condensed consolidated balance sheets.

Notable—In previous years, the Company or subsidiaries of the Company, entered into several agreements (herein referred to as the “Notable Agreements”) with Notable Finance LLC (“Notable”), an entity in which Vishal Garg and 1/0 Real Estate, collectively hold a majority ownership interest. The Notable Agreements included products such as a consumer lending program, a non-revolving personal line of credit, and other financial products which were offered to borrowers of the Company. The Notable Agreements also included the ability for the Company to purchase up to $20.0 million of unsecured home improvement loans underwritten and originated by Notable for the Company’s customers.

During 2024, the Company decided to cease offering the products and services provided via the Notable Agreements. As of March 31, 2026 and December 31, 2025, the Company had $2.2 million and $2.5 million of unsecured home improvement loans purchased from Notable, which are included within mortgage loans held for sale, at fair value on the condensed consolidated balance sheets. Notable will continue to provide servicing for the loans purchased from Notable that remain on the Company’s condensed consolidated balance sheet.

Other Related Party Services—The Company has relationships with 1/0 Capital LLC and Zethos Inc (doing business as “True Work”), companies affiliated with Vishal Garg, the Chief Executive Officer, which provide services to the Company varying from data analytics to information technology support services. For both the three months ended March 31, 2026 and 2025, the Company recorded an immaterial amount, in relation to these services, which are included in general and administrative expenses on the condensed consolidated statements of operations and comprehensive loss. As of March 31, 2026 and December 31, 2025, the Company included a payable of none and an immaterial amount, respectively, within accounts payable and accrued expenses on the condensed consolidated balance sheets.

Note Exchange Agreement—See Note 10, for further details on the Exchange with SB Northstar LP, a related party of the Company.

12. Commitments and Contingencies

Litigation—The Company, among other things, engages in mortgage lending, title and settlement services, and other financial technology services. The Company operates in a highly regulated industry and may be subject to various legal and administrative proceedings concerning matters that arise in the normal and ordinary course of business, including inquiries, complaints, audits, examinations, investigations, employee labor disputes, and potential enforcement actions from regulatory agencies. While the ultimate outcome of these matters cannot be predicted with certainty due to inherent uncertainties in litigation, management accrues for losses when they are probable to occur and such losses are reasonably estimable, and discloses pending litigation if the Company believes a possibility exists that the litigation will have a material effect on its financial results. Legal costs expected to be incurred are accounted for as they are incurred.

The Company is currently a party to pending legal claims and proceedings regarding employee related labor disputes. The disputes allege that the Company has failed to pay certain employees for overtime and is in violation of the Fair Labor Standards Act and labor laws in the State of California. The majority of such legal claims and proceedings are in the early stages and, to the extent applicable, have not yet reached the class certification stage and as such the ultimate outcomes cannot be predicted with certainty due to inherent uncertainties in the legal claims and proceedings. 23

As part of the disputes and other similar types of legal matters, the Company included an estimated liability of $6.9 million and $8.3 million, as of September 30, 2025 and December 31, 2024, respectively, which is included in accounts payable and accrued expenses on the condensed consolidated balance sheets. No additional expense was accrued for the three months ended September 30, 2025. During the nine months ended September 30, 2025, the changes in the liability included a settlement of $1.4 million and no additional expense was accrued. During the three months ended September 30, 2024, the changes in the liability included settlements of $0.2 million as well as a reduction of accrued expense of $0.2 million, which is included within general and administrative expense on the consolidated statement of operations and comprehensive loss. During the nine months ended September 30, 2024, the changes in the liability included settlements of $0.7 million as well as a reduction of accrued expense of $0.1 million, which is included within general and administrative expense on the consolidated statement of operations and comprehensive loss.

Regulatory Matters—In the third quarter of 2021, following third-party audits of samples of loans produced during the fiscal years 2018, 2019, and 2021, the Company became aware of certain TILA-RESPA Integrated Disclosure (“TRID”) defects in the loan production process that resulted in the final closing costs disclosed in the closing disclosure, in some instances, being greater than those disclosed in the loan estimate. Some of these defects were outside applicable tolerances under the TRID rule, which resulted in potential overcharges to consumers. As of September 30, 2025 and December 31, 2024, the Company included an estimated liability of $5.1 million and $6.6 million, respectively, within accounts payable and accrued expenses on the condensed consolidated balance sheets. During the three months ended

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~September 30~~estimable, 2025, the Company recorded an additional accrual for these potential TRID defects of $0.1 million, which is included within loan origination expense in the condensed consolidated statements of operations and ~~comprehensive~~discloses ~~loss.~~pending ~~During~~litigation ~~the~~if ~~nine months ended September 30, 2025,~~ the Company ~~recorded~~believes a ~~reduction~~possibility inexists that the ~~liability~~litigation ~~for~~will ~~these~~have ~~potential~~a ~~TRID~~material ~~defects~~effect ofon ~~$0.7~~its ~~million,~~financial ~~which is included within loan origination expense in the condensed consolidated statements of operations and comprehensive loss~~results. ~~During~~Legal ~~the~~costs ~~three~~expected ~~and nine months ended September 30, 2025, the Company had relief of the liability due~~ to ~~payments~~be toincurred ~~customers~~are inaccounted ~~the~~for ~~amount~~as ofthey ~~none~~are ~~and $0~~incurred.~~8 million, respectively.~~

~~For~~The ~~the three and nine months ended September 30, 2024, the~~ Company ~~recorded~~is ancurrently ~~additional~~a ~~accrual~~party ~~for~~to ~~these~~pending ~~potential~~legal ~~TRID~~claims ~~defects of $0.1 million~~ and ~~$0.3~~proceedings ~~million,~~regarding ~~respectively,~~employee ~~which~~related ~~are~~labor ~~included~~disputes ~~within~~initiated ~~loan origination expense~~ in the ~~condensed~~third ~~consolidated~~quarter ~~statements~~ of ~~operations~~2020. ~~and~~The ~~comprehensive~~disputes ~~loss.~~allege ~~During~~that the ~~three~~Company ~~and~~has ~~nine~~failed ~~months~~to ~~ended~~pay ~~September 30,~~certain ~~2024,~~employees ~~the~~for ~~Company~~overtime ~~had~~and ~~relief~~is in violation of the ~~liability~~Fair ~~due~~Labor toStandards ~~payments~~Act toand ~~customers~~labor laws in the ~~amount~~State of $0California.1 ~~million~~The ~~and~~majority ~~$2.2~~of ~~million,~~such ~~respectively.~~legal ~~This~~claims ~~accrual~~and isproceedings ~~the~~are ~~Company’s~~in ~~best~~the ~~estimate~~early ofstages ~~potential~~and, ~~exposure~~to on the ~~larger~~extent ~~population~~applicable, ofhave ~~loans~~not ~~based~~yet onreached the ~~results~~class ~~obtained~~certification bystage ~~the~~and ~~audited~~as ~~sample.~~such ~~The~~the ~~accrued~~ultimate ~~amounts~~outcomes ~~are~~cannot ~~for~~be ~~estimated~~predicted ~~refunds~~with ~~potentially~~certainty due to ~~consumers~~inherent ~~for~~uncertainties ~~TRID~~in ~~tolerance errors for loans produced with~~ the ~~identified~~legal ~~defects.~~claims ~~The~~and ~~Company is continuing to remediate TRID tolerance defects as necessary~~proceedings.

~~Loan~~As ~~Commitments—The~~part ~~Company~~of ~~enters~~the ~~into~~disputes ~~IRLCs~~and toother ~~fund~~similar ~~mortgage~~types ~~loans~~of legal matters, atthe ~~specified~~Company ~~interest~~included ~~rates~~an ~~and~~estimated ~~within~~liability aof ~~specified~~$6.6 ~~period~~million ofand ~~time~~$6.7 million, ~~with~~as ~~potential~~of ~~borrowers~~March 31, ~~who~~2026 ~~have~~and ~~applied~~December 31, ~~for~~2025, arespectively, ~~loan~~which ~~and~~is ~~meet~~included ~~certain~~in ~~credit~~accounts payable and ~~underwriting~~accrued ~~criteria.~~expenses Ason ofthe ~~September 30,~~condensed ~~2025~~consolidated ~~and~~balance ~~December 31,~~sheets. ~~2024,~~During the ~~Company~~three ~~had~~months ~~outstanding~~ended ~~commitments~~March to31, ~~fund~~2026, ~~mortgage~~the ~~loans~~changes in ~~notional~~liability ~~amounts~~included settlements of ~~approximately~~ $~~261~~0.62 million ~~and~~as well as additional accruals of $~~129~~0.91 million, ~~respectively.~~related ~~The~~to ~~IRLCs~~certain ~~derived~~other ~~from~~employment ~~those~~matters, ~~notional~~which ~~amounts~~were ~~are~~included ~~recorded~~ within ~~derivative~~general ~~assets~~ and ~~liabilities,~~administrative atexpense ~~fair~~on ~~value~~the asconsolidated statement of ~~September 30,~~operations ~~2025~~ and ~~December 31,~~comprehensive ~~2024,~~loss. ~~respectively,~~No onadditional ~~the~~expense ~~condensed~~was ~~consolidated~~accrued ~~balance~~for ~~sheets.~~the ~~See~~three ~~Note~~months 15ended March 31, 2025.

~~Forward~~Regulatory ~~Sale Commitments~~Matters—In the ~~ordinary~~third ~~course~~quarter of ~~business~~2021, following third-party audits of samples of loans produced during the fiscal years 2018, 2019, and 2021, the Company ~~enters~~became ~~into~~aware ~~contracts~~of tocertain ~~sell~~TILA-RESPA ~~existing~~Integrated ~~LHFS~~Disclosure or(“TRID”) ~~loans~~defects ~~committed~~in ~~but~~the ~~yet~~loan toproduction beprocess ~~funded~~that ~~into~~resulted in the ~~secondary~~final ~~market~~closing atcosts ~~specified~~disclosed ~~future~~in ~~dates~~the closing disclosure, in some instances, being greater than those disclosed in the loan estimate. Some of these defects were outside applicable tolerances under the TRID rule, which resulted in potential overcharges to consumers. As of ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, the Company ~~had~~included ~~outstanding~~an ~~forward~~estimated ~~sales~~liability ~~commitment contracts~~ of ~~notional amounts of approximately~~ $~~264~~5.02 million and $~~158~~5.01 million, respectively., ~~The~~within ~~forward~~accounts ~~sales~~payable ~~commitments~~and ~~derived~~accrued ~~from~~expenses ~~those~~on ~~notional~~the ~~amounts~~condensed ~~are~~consolidated ~~recorded~~balance ~~within~~sheets. ~~derivative~~During ~~assets~~the ~~and~~three ~~liabilities~~months ended March 31, at2026, ~~fair~~the ~~value~~Company asrecorded an additional accrual for these potential TRID defects of ~~September 30~~$0.1 million, ~~2025~~which is included within loan origination expense in the condensed consolidated statements of operations and ~~December~~comprehensive loss. During the three months ended March 31, ~~2024~~2026, ~~respectively,~~the onCompany ~~the~~recorded ~~condensed~~no ~~consolidated~~relief ~~balance~~of ~~sheets.~~the ~~See~~liability ~~Note~~due 15to payments to customers.

For the three months ended March 31, 2025, the Company recorded a reduction in the liability for these potential TRID defects of $0.9 million and is included within loan origination expense in the condensed consolidated statements of operations and comprehensive loss. During the three months ended March 31, 2025, the Company had relief of the liability due to payments to customers in the amount of $0.1 million. This accrual is the Company’s best estimate of potential exposure on the larger population of loans based on the results obtained by the audited sample. The accrued amounts are for estimated refunds potentially due to consumers for TRID tolerance errors for loans produced with the identified defects. The Company is continuing to remediate TRID tolerance defects as necessary.

Concentrations—See below for areas considered to be concentrations of credit risk for the Company:

Significant loan purchasers are those which represent more than 10% of the Company’s loan volume. During the three months ended ~~September~~March 3031, ~~2025~~2026, the Company had ~~three~~five loan purchasers that accounted for 3919%, 1215% ~~and 11% of loans sold by the Company. During the three months ended September 30~~, ~~2024, the Company had three loan purchasers that accounted for 36~~13%, 2710%, and 1910% of loans sold by the Company. During the ~~nine~~three months ended ~~September~~March 3031, 2025, the Company had three loan purchasers that accounted for 3633%, 1215% ~~and 10% of loans sold by the Company. During the nine months ended September 30~~, ~~2024, the Company had three loan purchasers that accounted for 44%, 20%~~ and 2014% of loans sold by the Company.

Concentrations of credit risk associated with the LHFS carried at fair value are limited due to the large number of borrowers and their dispersion across many geographic areas throughout the United States. As of ~~September~~March 3031, ~~2025~~2026, the company originated 1213% of its LHFS secured by properties in California. As of December 31, ~~2024~~2025, the Company originated 1012% of its LHFS secured by properties in California.

The Company maintains cash and cash equivalent balances at various financial institutions. Cash accounts at each bank are insured by the Federal Deposit Insurance Corporation for amounts up to $0.25 million. As of ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, the majority of the Company’s cash and cash equivalent balances are in excess of the insured limits at various financial institutions.

Escrow Payable and Other Customer Accounts—In accordance with its lender obligations, the Company maintains a separate escrow bank account to hold borrower funds pending future disbursement. The Company administers escrow deposits representing undisbursed amounts received for payment of property taxes, insurance and principal, and interest on mortgage loans held for sale. The Company also administers customer deposits in relation to other non-mortgage products and services that the Company offers. These funds are shown as restricted cash and there is a corresponding escrow payable on the consolidated balance sheet, as they are being held on behalf of the borrower or customer. The balance in these accounts as of September 30, 2025 and December 31, 2024 was $0.4 million and $0.1 million, respectively, and are included within escrow payable and other customer accounts on the condensed consolidated balance sheets.

2624

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

mortgage loans held for sale. The Company also administers customer deposits in relation to other non-mortgage products and services that the Company offers. These funds are shown as restricted cash and there is a corresponding escrow payable on the consolidated balance sheet, as they are being held on behalf of the borrower or customer. The balance in these accounts as of March 31, 2026 and December 31, 2025, was $0.7 million and $0.2 million, respectively, and are included within escrow payable and other customer accounts on the condensed consolidated balance sheets.

13. Risks and Uncertainties

In the normal course of business, companies in the mortgage lending industry encounter certain economic and regulatory risks. Economic risks include credit risk and interest rate risk, in either a rising or declining interest rate environment. Credit risk is the risk of default that may result from the borrowers’ inability or unwillingness to make contractually required payments during the period in which loans are being held for sale by the Company.

Interest Rate Risk—The Company is subject to interest rate risk in a rising interest rate environment, as the Company may experience a decrease in loan production, as well as decreases in the fair value of LHFS, loan applications in process with locked-in rates, and commitments to originate loans, which may negatively impact the Company’s operations. To preserve the value of such fixed-rate loans or loan applications in process with locked-in rates, agreements are executed for best effort or mandatory loan sales to be settled at future dates with fixed prices. These loan sales take the form of short-term forward sales of mortgage-backed securities and commitments to sell loans to loan purchasers.

Alternatively, in a declining interest rate environment, customers may withdraw their loan applications that include locked-in rates with the Company. Additionally, when interest rates decline, interest income received from LHFS will decrease. The Company uses an interest rate hedging program to manage these risks. Through this program, mortgage-backed securities are purchased and sold forward.

For all counterparties with open positions as of ~~September~~March 3031, ~~2025~~2026, in the event that the Company does not deliver into the forward-delivery commitments, they can be settled on a net basis. Net settlements entail paying or receiving cash based upon the change in market value of the existing instrument.

The Company currently uses forward sales of mortgage-backed securities, interest rate commitments from borrowers, and mandatory and/or best-efforts forward commitments to sell loans to loan purchasers to protect the Company from interest rate fluctuations. These short-term instruments, which do not require any payments to be paid to the counterparty in connection with the execution of the commitments, are generally executed simultaneously.

Credit Risk—The Company’s hedging program is not designated as formal hedging from an accounting standpoint, contains an element of risk because the counterparties to its mortgage securities transactions may be unable to meet their obligations. While the Company does not anticipate nonperformance by any counterparty, it is exposed to potential credit losses in the event the counterparty fails to perform. The Company’s exposure to credit risk in the event of default by the counterparty is the difference between the contract and the current market price. The Company minimizes its credit risk exposure by limiting the counterparties to well-established banks and securities dealers who meet established credit and capital guidelines.

Loan Repurchase Reserve—The Company sells loans to loan purchasers without recourse. As such, the loan purchasers have assumed the risk of loss or default by the borrower. However, the Company is usually required by these loan purchasers to make certain standard representations and warranties relating to the loan for up to three years post sale. To the extent that the Company does not comply with such representations, or there are early payment defaults, the Company may be required to repurchase the loans or indemnify these loan purchasers for losses. In addition, if loans pay-off within a specified time frame the Company may be required to refund a portion of the sales proceeds to the loan purchasers. The Company repurchased $64.61 million (2616 loans) and $3.2 ~~million (8 loans) in unpaid principal balance of loans during the three months ended September 30, 2025 and 2024, respectively, related to its loan repurchase obligations~~.0 ~~The Company repurchased $10.7~~ million (~~41 loans) and $~~6.2 ~~million (19~~ loans) in unpaid principal balance of loans during the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025, respectively, related to its loan repurchase obligations. The Company’s loan repurchase reserve is included within other liabilities on the condensed consolidated balance sheets. The recovery of the loan repurchase reserve is included within gain on loans, net on the consolidated statements of operations and comprehensive loss. The following presents the activity of the Company’s loan repurchase reserve:

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2025		2024		2025		2024
Loan repurchase reserve at beginning of period	$	4,311	$	11,721	$	7,523	$	19,472
(Recovery)/Provision	1,436		(3,226)		(1,113)		(10,168)
Charge-offs	(1,572)		(558)		(2,235)		(1,367)
Loan repurchase reserve at end of period	$	4,175	$	7,937	$	4,175	$	7,937

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~Borrowing~~provision ~~Capacity—The~~for/(recovery ~~Company~~of) ~~funds~~ the ~~majority~~loan ofrepurchase ~~mortgage~~reserve ~~loans~~is onincluded awithin ~~short-term~~gain ~~basis~~on ~~through committed and uncommitted warehouse lines as well as from operations for any amounts not advanced by warehouse lenders~~loans, ~~see~~net ~~Note~~on ~~4. As a result,~~ the ~~Company’s~~consolidated ~~ability~~statements toof ~~fund current~~ operations ~~depends~~and oncomprehensive ~~its ability to secure these types of short-term financings~~loss. IfThe ~~the~~following ~~Company’s~~presents ~~principal lenders decided to terminate or not to renew any of~~ the ~~warehouse~~activity ~~lines with the Company, the loss~~ of ~~borrowing capacity could be detrimental to~~ the Company’s ~~consolidated~~loan ~~financial~~repurchase ~~statements unless the Company found a suitable alternative source.~~reserve:


	Three Months Ended March 31,
(Amounts in thousands)	2026		2025
Loan repurchase reserve at beginning of period	$	4,268	$	7,523
Provision/(recovery)	638		(2,127)
Charge-offs	(1,057)		(351)
Loan repurchase reserve at end of period	$	3,849	$	5,045

Borrowing Capacity—The Company funds the majority of mortgage loans on a short-term basis through committed and uncommitted warehouse lines as well as from operations for any amounts not advanced by warehouse lenders, see Note 5. As a result, the Company’s ability to fund current operations depends on its ability to secure these types of short-term financings. If the Company’s principal lenders decided to terminate or not to renew any of the warehouse lines with the Company, the loss of borrowing capacity could be detrimental to the Company’s consolidated financial statements unless the Company found a suitable alternative source.

14. Net Loss Per Share

The computation of net loss per share and weighted average shares of the Company's common stock outstanding during the periods presented is as follows:

(Amounts in thousands, except for share and per share amounts)	Three Months Ended ~~September~~March 3031,				~~Nine Months Ended September 30,~~
	2025		2024		2025		2024
	2026		2025
Basic net loss per share:
Net loss	$	(39,125)	$	(54,210)	$	(125,952)	$	(147,067)
Net loss from continuing operations	$	(49,350)	$	(45,972)
Shares used in computation:
Net loss from discontinued operations	(20,961)		(4,585)
Weighted average common shares outstanding	15,263,321		15,121,994		15,223,492		15,102,741
Net loss	$	(70,311)	$	(50,557)
Weighted-average effect of dilutive securities:
Shares used in computation:
Diluted weighted-average common shares outstanding	15,263,321		15,121,994		15,223,492		15,102,741
Weighted average common shares outstanding	16,410,119		15,166,729
Earnings (loss) per share attributable to common stockholders:
Diluted weighted-average common shares outstanding	16,410,119		15,166,729
Basic	$	(2.56)	$	(3.58)	$	(8.27)	$	(9.74)
Loss per share attributable to common stockholders, basic and diluted:
Diluted	$	(2.56)	$	(3.58)	$	(8.27)	$	(9.74)
Net loss from continuing operations	$	(3.01)	$	(3.03)
Net loss from discontinued operations	$	(1.28)	$	(0.30)
Net loss	$	(4.29)	$	(3.33)

Basic and diluted loss per share are the same for each class of common stock (i.e., Class A, Class B and Class C) because they are entitled to the same dividend rights. Basic and diluted loss per share are presented together as the amounts for basic and diluted loss per share are the same (i.e., the Company’s other equity-linked instruments outstanding are anti-dilutive for the periods presented).

The Company's potentially dilutive securities, which include stock options, restricted stock units (“RSUs”), warrants to purchase shares of common stock, and Sponsor locked-up shares, have been excluded from the computation of diluted net loss per share, as the effect would be anti-dilutive. The Company excluded the following securities, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated as including them would have had an anti-dilutive effect:

	Nine Months Ended September 30,
(Amounts in thousands)	2025	2024
RSUs and Options to purchase common stock (1)	1,481	1,156
Public Warrants (1)(2)	6,075	6,075
Private Warrants (1)(2)	3,733	3,733
Sponsor locked-up shares (1)	14	14
Total	11,303	10,978

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BETTER HOME & FINANCE HOLDING COMPANY

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated as including them would have had an anti-dilutive effect:


	Three Months Ended March 31,
(Amounts in thousands)	2026	2025
RSUs and Options to purchase common stock (1)	2,982	1,442
Public Warrants (1)(2)	6,075	6,075
Private Warrants (1)(2)	3,733	3,733
Sponsor locked-up shares (1)	14	14
Total	12,804	11,264

__________________

(1)Securities have an antidilutive effect under the treasury stock method.

(2)Public and Private Warrants (as defined below) are unadjusted by the Reverse Stock Split as a holder must exercise 50 warrants to receive one share of common stock.

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BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

15. Fair Value Measurements

The Company’s financial instruments measured at fair value on a recurring basis are summarized below:. As of March 31, 2026, certain derivative instruments, including interest rate swaps associated with the Birmingham Bank disposal group, have been reclassified to assets and liabilities of discontinued operations, see Note 3. The December 31, 2025 amounts presented below have been reclassified to conform to the current-period presentation.

	September 30, 2025
	March 31, 2026
(Amounts in thousands)	Level 1		Level 2		Level 3		Total
Mortgage loans held for sale, at fair value	$	—	$	~~413~~563,~~998~~036	$	—	$	~~413~~563,~~998~~036
Derivative assets, at fair value (1)	—		~~536~~2,008		4,~~754~~009		56,~~290~~017
Total Assets	$	—	$	~~414~~565,~~534~~044	$	4,~~754~~009	$	~~419~~569,~~288~~053
Derivative liabilities, at fair value (1)—included within other liabilities	$	—	$	—	$	93	$	93
Derivative liabilities, at fair value (1)	$	—	$	—	$	329	$	329
Warrants and equity related liabilities, at fair value (2)	31,~~615~~761		31,~~714~~479		—		73,~~329~~240
Total Liabilities	$	31,~~615~~761	$	31,~~714~~479	$	93329	$	73,~~422~~569

	December 31, 2024
	December 31, 2025
(Amounts in thousands)	Level 1		Level 2		Level 3		Total
Mortgage loans held for sale, at fair value	$	—	$	~~399~~466,~~241~~681	$	—	$	~~399~~466,~~241~~681
Derivative assets, at fair value (1)	—		~~1,231~~—		14,~~308~~210		24,~~539~~210
Total Assets	$	—	$	~~400~~466,~~472~~681	$	14,~~308~~210	$	~~401~~470,~~780~~891
Derivative liabilities, at fair value (1)—included within other liabilities	$	—	$	—	$	86	$	86
Derivative liabilities, at fair value (1)	$	—	$	554	$	250	$	804
Warrants and equity related liabilities, at fair value (2)	~~729~~668		~~678~~808		—		1,~~407~~476
Total Liabilities	$	~~729~~668	$	~~678~~1,362	$	86250	$	12,~~493~~280

__________________

(1)As of ~~September~~March 3031, ~~2025~~2026, derivative assets represent both IRLCs and forward sale commitments, and liabilities represent IRLCs. As of December 31, ~~2024~~2025, derivative assets represent IRLCs, and liabilities represent forward sale commitments, ~~and~~ IRLCs, and ~~liabilities~~interest ~~represent~~rate ~~IRLCs~~swaps.

(2)Fair value is ~~based~~derived onfrom methodologies such as the ~~intrinsic~~Black-Sholes-Merton ~~value~~model ofand the Finnerty model where the Company’s underlying stock price atis ~~each~~a ~~balance~~significant ~~sheet~~input ~~date~~among ~~and~~other ~~includes certain~~ assumptions ~~with~~and ~~regard to volatility~~inputs.

Specific valuation techniques and inputs used in determining the fair value of each significant class of assets and liabilities are as follows:

Mortgage Loans Held for Sale—The Company originates certain LHFS to be sold to loan purchasers and elected to carry these loans at fair value ~~in accordance with ASC 825~~. The fair value is primarily based on the price obtained for other mortgage loans with similar characteristics. The changes in fair value of these assets are largely driven by changes in interest rates subsequent to loan funding and receipt of principal payments associated with the relevant LHFS.

Derivative Assets and Liabilities—The Company uses derivatives to manage various financial risks. The fair values of derivative instruments are determined based on quoted prices for similar assets and liabilities, dealer quotes, and internal pricing models that are primarily sensitive to market observable data. The Company utilizes IRLCs and forward sale commitments. The fair value of IRLCs, which are related to mortgage loan commitments, is based on quoted market prices, adjusted by the pull-through factor, and includes the value attributable to the net servicing fee. The Company evaluated the significance and unobservable nature of the pull-through factor and determined that the classification of IRLCs should be Level 3 as of September 30, 2025 and December 31, 2024. Significant changes in the pull-through factor of the IRLCs, in isolation, could result in significant changes in the IRLCs’ fair value measurement. The value of IRLCs also rises and falls with changes in interest rates; for example, entering into interest rate lock commitments at low interest rates followed by an increase in interest rates in the market, will decrease the value of IRLC. The Company had purchases/issuances of approximately $10.4 million and $10.0 million of IRLCs during the three months ended September 30, 2025 and 2024, respectively. The Company had purchases/issuances of approximately $29.2 million and $15.9 million of IRLCs during the nine months ended September 30, 2025 and 2024, respectively. 27

The number of days from the date of the IRLC to expiration of the rate lock commitment outstanding as of September 30, 2025 was approximately 45 days on average. The Company attempts to match the maturity date of the IRLCs with the forward commitments. Derivatives are presented in the condensed consolidated balance sheets under derivative assets, at fair value and derivative liabilities, at fair value. During the three months ended September 30, 2025,

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~the Company recognized $0~~characteristics.2 ~~million~~The ~~and $1.4 million of losses related to~~ changes in fair value of ~~IRLCs~~these ~~and~~assets forward sale commitments, respectively. During the nine months ended September 30, 2025, the Company recognized $3.3 million of gains and $4.6 million of losses related to changes in fair value of IRLCs and forward sale commitments, respectively. During the three months ended September 30, 2024, the Company recognized $1.0 million of gains and $9.1 million of losses related to changes in the fair value of IRLCs and forward sale commitments, respectively. During the nine months ended September 30, 2024, the Company recognized $2.6 million of gains and $2.7 million of losses related to changes in fair value of IRLCs and forward sale commitments, respectively. Gains and losses related to changes in the fair value of IRLCs and forward sale commitments are ~~included~~largely indriven ~~gain~~by ~~on loans, net within the condensed consolidated statements of operations and comprehensive loss. Unrealized activity related to~~ changes in ~~the~~interest ~~fair~~rates ~~value~~subsequent of forward sale commitments were $2.3 million of gains and $1.0 million of losses, included in the $1.4 million and $9.1 million of losses, during the three months ended September 30, 2025 and 2024, respectively. Unrealized activity related to ~~changes~~loan infunding ~~the fair value of forward sale commitments were $1.6 million of losses~~ and ~~$3.5~~receipt ~~million~~ of ~~gains,~~principal ~~included~~payments inassociated ~~the~~with ~~$4.6 million and $2.7 million of losses, during~~ the ~~nine~~relevant ~~months ended September 30, 2025 and 2024, respectively~~LHFS. ~~The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows:~~

(Amounts in thousands)	Notional Value		Derivative Asset		Derivative Liability
Balance as of September 30, 2025
IRLCs	$	261,648	$	4,754	$	93
Forward commitments	$	264,000	536		—
Total			$	5,290	$	93
Balance as of December 31, 2024
IRLCs	$	129,900	$	1,308	$	86
Forward commitments	$	158,000	1,231		—
Total			$	2,539	$	86

Derivative Assets and Liabilities—The Company uses derivatives to manage various financial risks. The fair values of derivative instruments are determined based on quoted prices for similar assets and liabilities, dealer quotes, and internal pricing models that are primarily sensitive to market observable data. The Company uses other derivative financial instruments, primarily TBA purchase and sale commitments, to manage exposure to interest rate risk and changes in the fair value of the Pipeline. These derivatives are recorded at fair value based on pricing of similar instruments in the secondary market. The changes in value of all derivative financial instruments related to the Pipeline are recorded as Gain on sale of loans, net on the condensed consolidated statements of operations and comprehensive loss. The Company utilizes IRLCs and forward sale commitments. The fair value of IRLCs, which are related to mortgage loan commitments, is based on quoted market prices, adjusted by the pull-through factor, and includes the value attributable to the net servicing fee. The Company evaluated the significance and unobservable nature of the pull-through factor and determined that the classification of IRLCs should be Level 3 as of March 31, 2026 and December 31, 2025. Significant changes in the pull-through factor of the IRLCs, in isolation, could result in significant changes in the IRLCs’ fair value measurement. The value of IRLCs also rises and falls with changes in interest rates; for example, entering into interest rate lock commitments at low interest rates followed by an increase in interest rates in the market, will decrease the value of IRLC. The Company had purchases/issuances of approximately $13.6 million and $8.0 million of IRLCs during the three months ended March 31, 2026 and 2025, respectively.

The number of days from the date of the IRLC to expiration of the rate lock commitment outstanding as of March 31, 2026 was approximately 43 days on average. The Company attempts to match the maturity date of the IRLCs with the forward commitments. Derivatives are presented in the condensed consolidated balance sheets under derivative assets, at fair value and derivative liabilities, at fair value. During the three months ended March 31, 2026, the Company recognized $0.3 million of losses and $3.3 million of gains related to changes in fair value of IRLCs and forward sale commitments, respectively. During the three months ended March 31, 2025, the Company recognized $2.6 million of gains and $2.5 million of losses related to changes in the fair value of IRLCs and forward sale commitments, respectively. Gains and losses related to changes in the fair value of IRLCs and forward sale commitments are included in gain on loans, net within the condensed consolidated statements of operations and comprehensive loss. Unrealized activity related to changes in the fair value of forward sale commitments were $5.1 million of gains and $2.6 million of losses, included in the $3.3 million and $2.5 million of losses, during the three months ended March 31, 2026 and 2025, respectively. The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows:


(Amounts in thousands)	Notional Value		Derivative Asset		Derivative Liability
Balance as of March 31, 2026
Derivatives not designated as hedging instruments:
IRLCs	$	244,504	$	4,009	$	329
Forward commitments	$	242,000	2,008		—
Total			$	6,017	$	329






Balance as of December 31, 2025
Derivatives not designated as hedging instruments:
IRLCs	$	271,373	$	4,210	$	250
Forward commitments	$	286,000	—		554
			$	4,210	$	804

Derivatives designated as hedging instruments:
Interest rate swaps	$	268,768	$	—	$	1,627
Total			$	4,210	$	2,431

Derivatives Designated as Hedging Instruments—Prior to classification as held for sale, the Company designated interest rate swap contracts as fair value hedges that qualified for hedge accounting. The fair value of interest rate swaps are based on broker quotes. As of March 31, 2026, these interest rate swaps are included within liabilities held for sale as part of the Birmingham Bank disposal group (see Note 3). We elected to account for the fair value hedges using the

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BETTER HOME & FINANCE HOLDING COMPANY

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

portfolio layer method. We previously recorded the interest rate swaps in the line item "Derivative liabilities, at fair value" on our condensed consolidated balance sheet. For qualifying fair value hedges, both the changes in the fair value of the derivative and the portion of the fair value adjustments associated with the portfolio layer attributable to the hedged risk are recognized into earnings as they occur. Derivative amounts impacting earnings are recognized consistent with the classification of the hedged item in the line item "Loans Held for Investment " as part of interest income, a component of consolidated net loss.

In the fiscal year ended December 31, 2025, fair value hedging transactions were executed in which approximately $269 million notional pay-fixed interest rate swaps were consummated with maturities of approximately five years, wherein the Company pays a weighted average fixed rate of approximately 3.7% and receives daily interest based on the Sterling Overnight Index Average (“SONIA”).

Warrant and equity related liabilities—The warrant liability consists of Warrants and certain shares issued to Novator Capital Sponsor Ltd. (the “Sponsor”), a related party, that are subject to transfer restrictions contingent on the price of Class A common stock exceeding certain thresholds (the "Sponsor-Locked-Up Shares"). The warrants consist of the Company's publicly traded warrants ("Public Warrants") and private warrants to acquire shares of Aurora that have been converted into warrants to acquire shares of Class A common stock ("Private Warrants," and together with the Public Warrants, the “Warrants”). The Public Warrants trade on the Nasdaq under the ticker symbol “BETRW” and as such is considered a Level 1 input from an active market to derive the value. The Private Warrants and Sponsor-Locked up Shares, although not publicly traded on an active market, use inputs from the publicly traded Public Warrants and the Company’s publicly traded common stock, respectively, and are further calibrated using unobservable inputs representing Level 2 measurements within the fair value hierarchy.

Private and Public Warrants—As of ~~September~~March 3031, ~~2025~~2026 and December 31, ~~2024~~2025, ~~Level~~the 3Company ~~instruments~~had ~~include~~a ~~IRLCs~~total of $2.9 million and $1.2 million of Private Warrants and Public Warrants, ~~bifurcated~~respectively, ~~derivative~~included as warrant and ~~convertible~~equity ~~preferred~~related ~~stock~~liabilities ~~warrants~~within the condensed consolidated balance sheets. The ~~following~~change ~~table~~in ~~presents~~fair value of Warrants for the ~~rollforward~~three months ended March 31, 2026 and 2025, was a loss of ~~Level~~$1.7 3million ~~IRLCs:~~and a gain of $0.2 million, respectively, and is included in other expenses within the condensed consolidated statements of operations and comprehensive loss.

	Three Months Ended September 30,				Nine Months Ended September 30,
(Amounts in thousands)	2025		2024			2025		2024
Balance at beginning of period	$	5,138	$	3,206		$	1,222	$	1,640
Change in fair value of IRLCs	(477)		1,024			3,439		2,590
Balance at end of period	$	4,661	$	4,230		$	4,661	$	4,230

Framework Warrant (2026)— During the three months ended March 31, 2026, the Company issued a warrant (the “2026 Warrant”) in connection with a private placement transaction, which provided the holder the right to purchase up to 211,312 shares of the Company’s Class A common stock. The warrant was fully exercised during the period, resulting in the issuance of 211,312 shares of Class A common stock to the holder and receipt by the Company of aggregate cash proceeds of approximately $5.7 million. The shares issued upon exercise were recorded within common stock and additional paid-in capital. The Company recognized a loss of $4.4 million related to the 2026 Warrant, including changes in fair value prior to exercise, and is included within other expenses in the condensed consolidated statements of operations and comprehensive loss. No amounts related to the 2026 Warrant remained outstanding as of March 31, 2026.

30Sponsor Locked-up Shares—As of both March 31, 2026 and December 31, 2025, the Company had a total of $0.3 million of Sponsor Locked-up Share liabilities, which are included within warrant and equity liabilities in the condensed consolidated balance sheets. The change in fair value of Sponsor Locked-up Shares for both the three months ended March 31, 2026 and 2025 was an immaterial loss and was included in other expenses within the condensed consolidated statements of operations and comprehensive loss.

As of March 31, 2026 and December 31, 2025, Level 3 instruments include IRLCs. The following table presents the rollforward of Level 3 IRLCs:


	Three Months Ended March 31,
(Amounts in thousands)	2026		2025
Balance at beginning of period	$	3,961	$	1,222
Change in fair value of IRLCs	(281)		2,626
Balance at end of period	$	3,680	$	3,848

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Counterparty agreements for forward sale commitments contain master netting agreements, which contain a legal right to offset amounts due to and from the same counterparty and can be settled on a net basis. The table below presents gross amounts of recognized assets and liabilities subject to master netting agreements.

(Amounts in thousands)	Gross Amount of Recognized Assets		Gross Amount of Recognized Liabilities		Net Amounts Presented in the Consolidated Balance Sheet		Exposure under margining arrangements		Net Exposure Under Margining Arrangements
Offsetting of Forward Commitments - Assets
Balance as of:
September 30, 2025:	$	703	$	(166)	$	537
March 31, 2026:	$	2,146	$	(138)	$	2,008	$	(5,125)	$	(3,117)
December 31, 2024:	$	1,249	$	(18)	$	1,231
December 31, 2025:	$	—	$	—	$	—	$	—	$	—
Offsetting of Forward Commitments - Liabilities
Balance as of:
March 31, 2026:	$	—	$	—	$	—	$	—	$	—
December 31, 2025:	$	46	$	(600)	$	(554)	$	517	$	(37)

Significant Unobservable Inputs—The following table presents quantitative information about the significant unobservable inputs used in the recurring fair value measurements of assets categorized within Level 3 of the fair value hierarchy:

September 30, 2025

December 31, 2024

March 31, 2026

December 31, 2025

(Amounts in dollars, except percentages)

Range

Weighted Average

Range

Weighted Average

Level 3 Financial Instruments:

IRLCs

Pull-through factor

0.0700% - ~~100~~99.0076%

7169.61

0.4503% - ~~100~~99.0060%

7469.82

U.S. GAAP requires disclosure of fair value information about financial instruments, whether recognized or not recognized in the condensed consolidated financial statements, for which it is practical to estimate the fair value. In cases where quoted market prices are not available, fair values are based upon the estimation of discount rates to estimated future cash flows using market yields or other valuation methodologies. Considerable judgment is necessary to interpret market data and develop estimates of fair value in both inactive and orderly markets. Accordingly, fair values are not necessarily indicative of the amount the Company could realize on disposition of the financial instruments in a current market exchange. The use of market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts.

The estimated fair value of the Company’s cash and cash equivalents, restricted cash, warehouse lines of credit, and escrow funds approximates their carrying values as these financial instruments are highly liquid or short-term in nature. The following table presents the carrying amounts and estimated fair value of financial instruments that are not recorded at fair value on a recurring or non-recurring basis:

		September 30, 2025				December 31, 2024
		March 31, 2026				December 31, 2025
(Amounts in thousands)	Fair Value Level	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Short-term investments	Level 1	$	~~131~~103,~~902~~616	$	~~132~~103,~~172~~640	$	53103,~~774~~607	$	53103,~~791~~849
Loans held for investment	Level 3	$	~~638~~730,~~167~~936	$	~~644~~747,~~593~~475	$	~~113~~725,~~144~~584	$	~~113~~745,~~348~~367
Convertible Notes	Level 3	$	—	$	—	$	519,749	$	371,160
Senior Notes	Level 3	$	198,802	$	136,375	$	198,802	$	135,916
Senior Notes	Level 3	$	198,802	$	132,013	$	—	$	—

In determining the fair value of the Senior Notes and loans held for investment, management uses factors that are material to the valuation process, including but not limited to, risks, prospects, and economic and market conditions, among other factors. As a number of assumptions and estimates were involved that are largely unobservable, ~~the~~ Senior Notes and loans held for investment are classified as Level 3 inputs within the fair value hierarchy.

~~16. Income Taxes~~ 30

On a consolidated basis, the Company recorded total income tax expense of $0.4 million and $0.5 million for the nine months ended September 30, 2025 and 2024, respectively. The Company’s quarterly tax provision, and estimate of its annual effective tax rate, is subject to variation due to several factors, including the ability to accurately project the Company’s pre-tax income or loss for the year and the mix of earnings among various tax jurisdictions. The year-to-date

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~effective tax rate, after discrete items, of (0~~16.~~30)%~~ Income ~~for~~Taxes the nine months ended September 30, 2025, changed from (0.32)% for the nine months ended September 30, 2024, as the Company is forecasting reduction in losses for 2025. The income tax expense for the nine months ended September 30, 2025 primarily relates to the pre-tax income projections in certain foreign jurisdictions where the Company files standalone returns. The income tax expense for the nine months ended September 30, 2024 relates to the pre-tax income projections and dividend income withholding tax paid in certain foreign jurisdictions where the Company files standalone returns.

AsOn ofa ~~each~~consolidated ~~reporting date~~basis, the Company ~~considers~~recorded ~~existing~~total ~~evidence,~~income ~~both~~tax ~~positive~~benefit of $1.6 million and ~~negative,~~income ~~that~~tax ~~could~~expense ~~impact~~of ~~management’s~~$0.1 ~~view~~million ~~with~~for ~~regard~~the tothree ~~future~~months ~~realization~~ended ofMarch ~~deferred~~31, ~~income~~2026 ~~tax~~and ~~assets~~2025, respectively. The Company’s quarterly tax provision, and estimate of its annual effective tax rate, is insubject ato ~~three~~variation due to several factors, including the ability to accurately project the Company’s pre-~~year~~tax ~~cumulative~~income or loss ~~position~~for asthe year and the mix of ~~September 30,~~earnings ~~2025~~among various tax jurisdictions. ~~Further~~The year-to-date effective tax rate, ~~due~~after todiscrete ~~losses~~items, ~~being~~of ~~estimated~~2.18% infor the ~~future~~three months ended March 31, ~~management~~2026, ~~continues~~changed tofrom ~~believe~~(0.28)% itfor isthe ~~more~~three ~~likely~~months ~~than~~ended ~~not~~March ~~that~~31, ~~the~~2025. The income tax benefit offor the ~~deferred~~three ~~income~~months ~~tax~~ended ~~assets~~March ~~will~~31, ~~not~~2026 bewas ~~realized.~~primarily Inattributable ~~recognition~~to discrete items related to release of ~~this~~uncertain ~~risk,~~tax ~~the~~positions ~~Company~~upon ~~continues~~expiration toof ~~provide~~the aapplicable ~~full~~statutes ~~valuation~~of ~~allowance~~limitations onand ~~deferred~~from pre‑tax income ~~tax~~projections ~~assets~~in certain foreign jurisdictions where the Company files standalone returns.

17As of each reporting date, the Company considers existing evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred income tax assets. ~~Stockholders'~~ ~~Equity~~The Company is in a three-year cumulative loss position as of March 31, 2026. Further, due to losses being estimated in the future, management continues to believe it is more likely than not that the benefit of the deferred income tax assets will not be realized. In recognition of this risk, the Company continues to provide a full valuation allowance on deferred income tax assets.

17. Segment Reporting

The Company’s reportable segments are strategic business units that offer different products and services. During the first quarter of 2026, the Company determined that its Banking segment met the criteria for classification as discontinued operations (see Note 3). As a result, the Company has one reportable segment, Home Finance, for the periods presented.

The Home Finance segment provides home ownership services, including purchase mortgages, refinance mortgages, home equity lines of credit, and mortgage-related services such as real estate and insurance services.

The Company’s CODM evaluates performance and allocates resources based on consolidated results. Prior period segment information has been recast to conform to the current presentation.

18. Stockholders' Equity

On the Closing Date, the Company consummated the Business Combination pursuant to the terms of the Merger Agreement. The Company’s Class A common stock and Public Warrants currently trade on the Nasdaq, under the ticker symbols “BETR” and “BETRW”, respectively. Each outstanding share of Pre-Business Combination Better common stock was exchanged for approximately 3.06 shares of the Company’s Class A or Class B common stock.

~~Private~~At-the-Market ~~and~~Offering ~~Public Warrants~~Program—AsThe ofCompany ~~September 30,~~has ~~2025~~an ~~and December 31, 2024,~~ at-the-market ~~Company had a total of $6.8 million and $1.3 million of Private Warrants and Public Warrants, respectively, included as warrant and~~ equity ~~related~~offering ~~liabilities~~program ~~within~~ (the ~~condensed~~“ATM ~~consolidated~~Program”) ~~balance~~under ~~sheets.~~which ~~The~~it ~~change~~may insell ~~fair~~shares ~~value~~ of ~~Warrants~~its ~~for~~Class ~~the~~A ~~three~~common ~~and~~stock ~~nine~~from ~~months~~time ~~ended~~to ~~September 30, 2025, was a loss of $5~~time.2 ~~million~~The ~~and~~ATM aProgram ~~loss~~was ofestablished ~~$5.5 million, respectively, and is included~~ in ~~other expenses within the condensed consolidated statements of operations and comprehensive loss. The change in fair value of Warrants for the three and nine months ended~~ September ~~30,~~ ~~2024, was a gain of $0~~2025.2 ~~million~~Additional ~~and~~details aare ~~gain of $0.7 million, respectively, and is~~ included in ~~other expenses within~~ the ~~condensed~~Company’s ~~consolidated~~prior ~~statements of operations and comprehensive loss~~filings.

~~Sponsor~~During ~~Locked-up~~the ~~Shares—As~~three ofmonths ~~September 30,~~ended ~~2025 and December~~March 31, ~~2024~~2026, the Company ~~had~~sold ~~a total of $0.5 million and $0.1 million~~328,030 ~~respectively,~~shares of ~~Sponsor~~Class ~~Locked-up~~A ~~Share~~common ~~liabilities,~~stock ~~which~~under ~~are~~the ~~included~~ATM ~~within~~Program ~~warrant~~for ~~and~~total ~~equity~~gross ~~liabilities~~proceeds inof ~~the~~$11.9 ~~condensed consolidated balance sheets~~million. The ~~change~~Company inincurred ~~fair~~commissions ~~value~~and ofother ~~Sponsor~~offering ~~Locked-up~~expenses ~~Shares~~of ~~for~~$0.2 ~~both~~million. ~~the~~As ~~three~~of ~~and nine months ended September~~March 3031, ~~2025~~2026, ~~was~~approximately ~~loss of~~ $033.43 million ~~and~~remained ~~was~~available ~~included~~for inissuance ~~other~~under ~~expenses within~~ the ~~condensed~~ATM ~~consolidated~~Program. ~~statements~~Subsequent ofto ~~operations~~March 31, 2026 and ~~comprehensive~~through ~~loss.~~May 11, ~~The~~2026, ~~change~~the inCompany ~~fair~~did ~~value~~not sell any shares of ~~Sponsor~~Class ~~Locked-up~~A ~~Shares~~common ~~for~~stock under the ~~three~~ATM ~~and~~Program. ~~nine~~As ~~months~~of ~~ended~~May ~~September 30~~11, ~~2024~~2026, ~~was~~approximately ~~none and a gain of~~ $033.23 million, ~~respectively,~~remained ~~and~~available ~~was~~for ~~included~~issuance inunder ~~other expenses within~~ the ~~condensed~~ATM ~~consolidated statements of operations and comprehensive loss~~Program.

Notes Receivable from Stockholders—The Company, previously at times, entered into promissory note agreements with certain employees for the purpose of financing the exercise of the Company’s stock options. These employees had the ability to use the promissory notes to exercise stock options that have not yet been vested by the respective employees. Interest is compounded and accrued based on any unpaid principal balance and is due upon the earliest of maturity, 120 days after an employee leaves the Company, the date the employee sells shares acquired through the promissory note agreement without prior written consent of the Company, or the day prior to the date that any change in the employee’s status would cause the loan to be a prohibited extension or maintenance of credit under Section 402 of the Sarbanes-Oxley Act of 2002 (“Sarbanes-Oxley Act”). The Company no longer enters into promissory note agreements for the purpose of financing the exercise of the Company’s stock options and no longer allows for the early exercise of stock options.31

As of both September 30, 2025 and December 31, 2024 the Company had a total of $16.0 million of outstanding promissory notes.

Of the promissory notes outstanding as of both September 30, 2025 and December 31, 2024 $9.2 million were issued for the exercise of stock options vested, and are recorded as a component of stockholders’ equity within the condensed consolidated balance sheets. The balance as of September 30, 2025 does not include any promissory notes due from directors and officers of the Company.

Of the promissory notes outstanding as of both September 30, 2025 and December 31, 2024 $6.8 million were issued for the early exercise of stock options not yet vested. Promissory notes issued for the early exercise of stock options not yet

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BETTER HOME & FINANCE HOLDING COMPANY ~~AND SUBSIDIARIES~~

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

~~vested are not reflected within stockholders’ equity on the condensed consolidated balance sheets as they relate to unvested share awards and therefore are considered non~~19. Stock-~~substantive~~Based exercises. As the unvested share awards vest and are exercised in conjunction with the notes, they are recognized in the statement of equity within vesting of common stock issued via promissory notes receivable from stockholders. The maturity of the promissory notes are in January 2026 and include interest rates ranging from 0.5% to 2.5% per annum. Compensation

At-the-Market Offering Program—On September 26, 2025, the Company implemented an “at-the-market” equity offering program (the “ATM Program”) pursuant to separate sales agreements (each, a “Sales Agreement” and collectively, the “Sales Agreements”) with Cantor Fitzgerald & Co. and BTIG, LLC (each an “Agent” and collectively, the “Agents”). Under the Sales Agreements, the Company may offer and sell shares of its Class A common stock, par value $0.0001 per share (the “Shares”), having an aggregate offering price of up to $75.0 million, from time to time, in “at-the-market” offerings as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended, through the Agents acting as sales agents or principals.

Sales of Shares, if any, will be made at prevailing market prices at the time of sale, or as otherwise agreed with the Agents. Each Agent is entitled to a commission of 2.0% of the gross sales price of Shares sold through it as sales agent under its Sales Agreement. The Shares will be issued pursuant to the Company’s registration statement on Form S-3 (File No. 333-287335), which was declared effective by the SEC on June 6, 2025, and the related prospectus supplement dated September 26, 2025 (“Prospectus Supplement”).

During the three and nine months ended September 30, 2025, the Company sold 9,917 shares of Class A common stock under the ATM Program for total gross proceeds of $0.6 million. The Company incurred commissions and other offering expenses of an immaterial amount. As of September 30, 2025, approximately $74.4 million remained available for issuance under the ATM Program. Subsequent to September 30, 2025 and through November 13, 2025, the Company sold 278,978 shares of Class A common stock under the ATM Program for total gross proceeds of $17.1 million and net proceeds of approximately $16.8 million, after deducting aggregate commissions and offering expenses of approximately $0.3 million. As of November 13, 2025, approximately $57.3 million remained available for issuance under the ATM Program.

18. Stock-Based Compensation

Stock-Based Compensation Expense—Stock-based compensation expense is included within compensation and benefits in the condensed consolidated statements of operations and comprehensive loss. The Company recognized stock-based compensation expense as follows:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Amounts in thousands)

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

Stock-based compensation expense

~~4,271~~$

23,795

~~5,487~~$

4,033

~~12,556~~

~~21,812~~

Stock-based compensation expense excludes $01.30 million and $0.4 million of stock-based compensation expense for the three months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024, which was capitalized (see Note 6). Stock-based compensation expense excludes $1.1 million and $1.3 million of stock-based compensation expense for the nine months ended September 30,~~ 2025 ~~and 2024~~, which was capitalized (see Note 67).

1920. Regulatory Requirements

The Company is subject to various local, state, and federal regulations related to its loan production by the various states it operates in, as well as federal agencies such as the Consumer Financial Protection Bureau, HUD, and the FHA and may be subject to the requirements of the agencies to which it sells loans, such as FNMA and FMCC. As a result, the Company may become involved in requests for information, periodic reviews, investigations, and proceedings by such various federal, state, and local regulatory bodies and agencies.

33The Company is required to meet certain minimum net worth, minimum capital ratio and minimum liquidity requirements, including those established by HUD, FMCC and FNMA. As of March 31, 2026, the Company was in compliance with all necessary requirements.

~~Table~~Additionally, the Company may be subject to other financial requirements established by government-sponsored enterprises (“GSEs”), which include a limit for a decline in net worth and quarterly profitability requirements. The Company remains in compliance with all applicable obligations as of ~~Contents~~March 31, 2026.

~~BETTER~~21. Subsequent ~~HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES~~Events

~~NOTES~~The TOCompany ~~UNAUDITED~~evaluated ~~CONDENSED~~subsequent ~~CONSOLIDATED~~events ~~FINANCIAL~~from ~~STATEMENTS~~the date of the condensed consolidated balance sheets of March 31, 2026, and has determined that, there have been no subsequent events that require recognition or disclosure in the condensed consolidated financial statements, except as described in Note 5 and as follows:

~~The~~On ~~Company~~April 9, is2026, ~~required~~the toCompany ~~meet~~consummated ~~certain~~an ~~minimum~~underwritten ~~net~~public ~~worth~~offering of 2,156,250 ~~minimum~~shares ~~capital~~of ~~ratio~~its ~~and~~Class ~~minimum~~A ~~liquidity~~common ~~requirements,~~stock ~~including~~at ~~those~~a ~~established~~public byoffering ~~HUD,~~price ~~FMCC~~of ~~and~~$32.00 ~~FNMA~~per share. AsThe ofCompany ~~September 30,~~received ~~2025,~~aggregate ~~the~~net ~~Company~~proceeds ~~was~~of inapproximately ~~compliance~~$66.1 ~~with~~million ~~all~~from ~~necessary~~the ~~requirements~~offering before expenses.

Additionally, the Company may be subject to other financial requirements established by government-sponsored enterprises (“GSEs”), which include a limit for a decline in net worth and quarterly profitability requirements. In 2023, the Company failed to meet the additional financial requirements due to the Company’s decline in profitability and decline in net worth. The decline in net worth and decline in profitability permit GSEs to declare a breach of the Company’s contract. The Company has implemented additional financial requirements and remains in compliance with all applicable obligations as of September 30, 2025.

20. Subsequent Events

The Company evaluated subsequent events from the date of the condensed consolidated balance sheets of September 30, 2025 through the date of the release of financial statements, and has determined that, there have been no subsequent events that require recognition or disclosure in the condensed consolidated financial statements, except as described in Note 17.

******

3432

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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis of Better Home & Finance Holding Company’s (together with its consolidated subsidiaries, the “Company,” “we” “our” or “us”) financial condition and results of operations should be read together with our audited consolidated financial statements as of December 31, ~~2024~~2025 and for the years ended December 31, ~~2024~~2025 and ~~2023~~2024, in each case, together with related notes thereto, included in our ~~2024~~ Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”), and our condensed consolidated financial statements and related notes as of and for the quarterly period ended ~~September~~March 3031, ~~2025~~2026, included elsewhere in this ~~quarterly~~Quarterly ~~report~~Report on Form 10-Q (the “Quarterly Report”).

Company Overview

We are ~~building~~an ~~a next~~AI-~~generation~~native ~~platform~~home ~~that~~finance wecompany ~~believe~~on ~~can~~a ~~revolutionize~~mission ~~the~~to ~~world’s~~make ~~largest~~homeownership cheaper, ~~oldest~~faster, and ~~most~~more ~~tangible~~accessible ~~asset~~for ~~class,~~all ~~the home~~Americans. Our ~~holistic~~services ~~solution~~offer ~~and~~consumers ~~marketplace~~a ~~model,~~seamless ~~enabled~~experience bythat ~~our~~eliminates ~~proprietary~~friction ~~technology,~~and ~~allows~~complexity usacross toevery ~~take~~stage ~~one~~ of ~~our~~homeownership ~~customers’~~including ~~largest~~purchase, ~~and~~refinance, ~~most complex financial journeys-the process of owning a~~ home~~-and~~ ~~transform it into a more simple~~equity, ~~transparent~~ and ~~ultimately affordable process~~sale. ~~Our goal is to do our part in lowering the hurdles to homeownership by offering the lowest prices and the best experience to our customers.~~

WeFounded ~~are~~in a2015, ~~technology-driven~~we ~~organization.~~built Weour ~~are seeking to disrupt a~~ business ~~model~~with byan ~~leveraging~~AI-first ~~Tinman,~~mindset ~~our proprietary loan origination platform~~ that ~~uses~~remains AIat ~~and~~the ~~automation~~core toof ~~deliver~~everything awe ~~frictionless,~~do. ~~user-friendly~~Our ~~experience~~proprietary ~~to our customers~~platform, ~~as well as Betsy~~Tinman®, ~~the~~is ~~first~~trained ~~voice-based~~on AI$110B ~~loan~~in ~~assistant~~origination ~~built~~volume ~~for~~and ~~the~~grew ~~mortgage~~its ~~industry,~~share toof ~~enhance~~volume ~~the~~by ~~automation~~38% offrom ~~the~~2024 ~~home~~to ~~finance process~~2025. ~~Through~~The ~~this~~platform ~~process,~~automates wethe ~~aim~~most totime-consuming ~~reduce~~parts of the ~~cost~~mortgage toprocess ~~produce a loan~~ and inenables ~~the~~faster ~~future~~decisions to create a ~~platform~~better ~~with~~experience ~~all~~for ~~homeownership~~consumers ~~products~~navigating ~~embedded~~the ~~into~~biggest afinancial ~~highly~~decision ~~automated,~~of ~~single~~their ~~flow, allowing us to pass along savings to our customers~~life.

~~Our~~The ~~offerings~~home ~~include~~is ~~mortgage~~among ~~financing,~~the ~~real~~world’s ~~estate~~largest ~~services,~~and ~~title~~most ~~and~~tangible ~~homeowners’~~asset ~~insurance~~classes. WeWhile ~~offer~~other aindustries ~~selection~~have ofundergone ~~loan~~end-to-end ~~products~~digital ~~for home purchase and refinance~~transformations, ~~including~~the ~~cash-out~~homeownership ~~refinance,~~journey ~~debt~~remains ~~consolidation~~mired ~~and~~in ~~home~~legacy ~~equity~~inefficiencies. ~~lines~~High oftransaction ~~credit~~costs, ~~across~~regulatory acomplexity, ~~range of maturities~~ and ~~interest rates as well as~~ a ~~suite~~sprawling ofintermediary ~~non-mortgage~~stack ~~products,~~come ~~including~~at ~~real~~the ~~estate~~expense ~~agent services offered by our network~~ of ~~third-party~~consumers ~~partner real estate agents~~ and, ~~through~~limit ~~our~~digital ~~insurance~~adoption ~~partners,~~across ~~title~~the ~~insurance and settlement services, and homeowners insurance~~industry. We ~~serve~~believe ~~customers~~the inhomeownership ~~all~~experience 50is USbroken, ~~states~~ and ~~the~~we're ~~United~~fixing ~~Kingdom~~it.

WeDesigned ~~are focused on improving our platform and plan~~ to ~~continue~~scale ~~making~~across ~~investments~~products, tochannels, ~~build our business~~ and ~~prepare~~market ~~for future growth. We believe that our success will depend on many factors~~conditions, ~~including~~Tinman ~~our~~is ~~ability~~not tojust ~~drive~~the ~~customers~~engine tobehind ~~our~~Better; ~~platform,~~it ~~and~~is ~~convert~~how ~~them~~we ~~once~~are ~~they~~modernizing ~~come~~the tobroader ~~us,~~mortgage ~~through~~industry. ~~our~~Through ~~customer acquisitions channels which include our direct-to-consumer (“D2C”) channel~~Tinman, ~~our~~we partner ~~relationship~~with ~~(“B2B”)~~lenders, ~~channel~~banks, and ~~our~~financial ~~distributed~~institutions ~~retail channel (“Retail”),~~ to ~~achieve~~bring ~~leverage~~AI-driven onefficiency ~~our operational expenses, execute on our strategy to fund more purchase loans~~ and ~~diversify~~savings ~~our revenue by expanding and enhancing our offerings. We plan~~ to ~~continue~~their toown ~~invest in technology to improve customer experience and further drive down labor costs through automation~~customers, ~~making~~helping ~~our~~transform ~~platform~~an ~~more~~industry ~~efficient~~long ~~and~~overdue ~~scalable.~~for change.

InBusiness our D2C channel, we serve customers from their first website visit to close entirely under the Better Home & Finance brand. We have historically relied on positive word of mouth, customer reviews, and trusted third-party recommendations to grow our business, together with performance marketing (pay-per-click) and other paid digital media. Environment

InThe ~~our~~mortgage ~~B2B~~industry ~~channel,~~continues weto ~~historically~~be ~~had~~influenced anby ~~integrated~~a ~~relationship~~dynamic ~~with~~macroeconomic ~~Ally~~and ~~Bank,~~geopolitical aenvironment. ~~Utah~~In ~~state-chartered~~the ~~bank~~first ~~(“Ally”)~~quarter of 2026, ~~pursuant~~the toU.S. ~~which~~Federal weReserve ~~offered~~maintained ~~our~~the ~~end-~~federal funds rate within a target range of approximately 3.50% to~~-end~~ ~~platform~~3.75%. ~~and~~This ~~services~~sustained ~~alongside~~restrictive ~~Ally’s~~monetary ~~brand~~policy stance, ~~and~~implemented ~~manufactured~~to ~~loans~~address oninflation ~~Ally’s~~above ~~behalf.~~the ~~Initially~~Federal ~~launched~~Reserve’s inlong-term ~~2019~~2% target, ~~our~~has ~~integrated~~contributed ~~relationship~~to ~~with~~mortgage ~~Ally~~rates ~~has~~remaining ~~ended~~elevated ~~due~~relative to arecent ~~shift~~historical inlevels, ~~strategic~~limiting ~~direction~~refinance activity and ~~corporate~~moderating ~~resourcing~~overall atborrower ~~Ally.~~demand, particularly in rate-sensitive segments.

In ~~order~~addition, togeopolitical ~~grow our Retail channel~~uncertainty, inincluding the ~~third~~ongoing ~~quarter~~conflict ofin ~~2024, we hired~~ the ~~executive~~Middle ~~team from NEO Home Loans~~East, ahas ~~group~~contributed ofto ~~loan~~volatility ~~officer~~in ~~teams~~financial ~~with~~markets, ~~strong~~impacting ~~brand recognition within the~~ U.S. ~~mortgage~~Treasury ~~market~~yields, toinflation ~~build~~expectations, ~~out~~and amortgage ~~distributed~~rate ~~retail channel within Better~~movements. ByThese ~~bringing~~factors, ~~NEO~~combined ~~Home~~with ~~Loans~~affordability ~~into~~constraints ~~the~~driven ~~Better~~by ~~platform,~~rising wehome ~~seek~~prices ~~to diversify Better’s distribution strategy,~~ and ~~leverage~~borrowing ~~Tinman~~costs, ~~our~~have ~~internally~~created ~~developed~~a ~~all-in~~more ~~loan~~challenging operating ~~system,~~environment tofor ~~power~~mortgage ~~local loan officers under the “NEO Powered by Better” brand~~originators. WeAt ~~believe there is significant opportunity to prove out Tinman’s efficiency in~~ the ~~Retail~~same ~~channel~~time, bylenders ~~providing~~with ~~our~~diversified ~~technology~~product toofferings ~~local~~across ~~loan~~purchase ~~officers to remove friction from their fulfillment process~~ and ~~expand~~non-mortgage ~~their~~products, ~~capacity~~such toas ~~serve~~home ~~more customers~~equity, ~~while~~are ~~improving~~better ~~economics~~positioned ~~through~~to acapture ~~business~~baseline ~~model~~purchase ~~with~~activity ~~traditionally~~and ~~lower~~benefit ~~customer~~from ~~acquisition~~the ~~costs~~counter-cyclical ~~compared~~demand tofor ~~the~~home ~~D2C~~equity ~~channel.~~products Wethat ~~expect~~typically toincreases ~~leverage~~in ~~Better’s~~higher-rate ~~AI technology~~ environments.

35Recent Developments

As previously announced, the Company determined to dispose of Birmingham Bank, which represents the Company’s reportable banking segment. The sale process is underway and is expected to conclude during 2026; and, therefore, the assets related to this business have been classified as held for sale. The timing and ultimate outcome of the sale of Birmingham Bank remains subject to market conditions and required regulatory approvals. The results of operations, financial condition, and cash flows for Birmingham Bank are presented herein as discontinued operations. Except where noted, any tables, percentages or metrics included within this filing exclude the results of Birmingham Bank.

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and digital lead funnel to empower NEO’s loan officer teams, who have demonstrated track records in customer service excellence and strong reputations within the communities they serve.

During the three months ended September 30, 2025, we also executed multiple new strategic partnerships. The first is a partnership with one of the top five U.S. personal financial services platforms, which serves over 50 million customers. Under this arrangement, the partner will offer mortgage financing products to its customer base through Better’s Tinman AI platform. The second is with one of the top five non-bank mortgage originators in the U.S., which will utilize Better’s Tinman AI platform to originate HELOCs and HELOANs for its customer base and mortgage servicing rights (MSR) portfolio. Lastly, subsequent to the three months ended September 30, 2025, Better partnered with Finance of America, a leading provider of home equity-based retirement solutions ("FOA"), pursuant to which Better will offer HELOCs and HELOANs to FOA's customers, through Better's Tinman AI platform.

Our Business Model

We generate revenue through the production and sale of loans and other product offerings through our platform. The revenue and mix of revenue as a percentage of total revenue attributable to our sale of loan production (~~gain~~Gain on loans, net) and Better Plus (~~other~~Other revenue) and net interest income for the three ~~and nine~~ months ended ~~September~~March 3031, ~~2025~~2026 and ~~2024~~2025 is as follows:

	Three Months Ended September 30,
	Three Months Ended March 31,
	2025				2024
	2026				2025
(Amounts in thousands, except percentage amounts)	Amounts		Percentages		Amounts		Percentages
Gain on loans, net	$	3644,~~421~~801	8395	%	$	2124,~~503~~576	7478	%
Other revenue	21,~~777~~142		62	%	3,~~070~~650		1112	%
Net interest income	41,~~669~~554		113	%	43,~~421~~102		1510	%
Total net revenues	$	4347,~~867~~497			$	2831,~~994~~328

	Nine Months Ended September 30,
	2025				2024
(Amounts in thousands, except percentage amounts)	Amounts		Percentages		Amounts		Percentages
Gain on loans, net	$	97,769	81	%	$	61,384	74	%
Other revenue	10,107		8	%	8,768		10	%
Net interest income	12,688		11	%	13,355		16	%
Total net revenues	$	120,564			$	83,507

Home Finance—Gain on loans, net

~~Home~~We ~~Finance~~produce ~~Mortgage~~a ~~Model—Gain~~wide selection of mortgage loans and leverage our platform to quickly sell these loans and related mortgage servicing rights (“MSRs”) to our loan purchaser network. Historically, the Company utilized three primary channels for customer acquisition; however, our current operations have been streamlined to focus on two key sourcing channels: our D2C channel and our Platform channel. Through these channels, we generate gain on loans, net by selling loans and MSRs to our loan purchaser network, recognizing revenue per loan. Through our Platform channel, we generate revenue from various partnerships with mortgage originators and technology companies, as well as our in-market loan officer teams, which ramped over the course of 2025. These partnerships come in different structures. For some, we access our partners’ customer base and originate loans on our platform and in other arrangements, the partner originates the loan and we provide the technology, underwriting, and fulfillment.

WeBetter ~~produce~~Plus—Other a wide selection of mortgage loans and leverage our platform to quickly sell these loans and related mortgage servicing rights (“MSRs”) to our loan purchaser network. We source our customers through three channels: our D2C channel, our B2B channel, and our Retail channel. Through our D2C and Retail channels, we generate gain on loans, net by selling loans and MSRs to our loan purchaser network, recognizing revenue per loan. We may also earn a fixed fee per loan originated by third-parties through our D2C and Retail channels. Through our B2B channel, we generate revenue from integrated relationships and advertising relationships. Through our advertising relationships, we generate gain on loans, net the same way we do in our D2C channel, by selling loans to our loan purchaser network. Through our integrated relationships, we generate a fixed fee per loan originated, which we recognize as revenue upon the funding of the loan by the partner. We may also purchase certain of the loans from our integrated relationship partner which we may subsequently sell to our loan purchaser network at our discretion. For loans subsequently sold to our loan purchaser network, the partner receives a portion of the sale proceeds. As of September 30, 2025, this channel was primarily comprised of our integrated relationship with Ally, which we are currently winding down.

36We complement our residential mortgage loan products through Better Plus, which includes a set of non-mortgage homeownership products and services offered primarily through third-party strategic partners. These offerings include referrals to real estate agents, title insurance and settlement services provided through third-party providers, and access to homeowners insurance policies through a digital marketplace of insurance partners. In these arrangements, we generally act as an agent or referral source and receive fees from third-party providers. Better Plus products are integrated into our platform to support customers throughout the homeownership process.

~~Table~~Mortgage ofInterest ~~Contents~~Income —Net interest income

As we originate mortgages, there is a short period between the funding of a loan and its sale into our investor network. During this time, we borrow against our warehouse lines of credit as a source of capital and pay interest on those borrowings. It is not uncommon for a mortgage to be awaiting sale while the borrower's first interest payment is collected. In these instances, Better ~~Plus~~collects ~~Model—Other~~and recognizes that interest as revenue. Once the mortgage is sold to our investor network, the warehouse line of credit is repaid and we do not collect any future interest payments on that loan.

Better Plus revenue consists of revenue from non-mortgage product offerings including real estate services (Better Real Estate) and insurance services, which includes title insurance (Better Cover).

Through Better Real Estate services, we offer settlement services during the mortgage transaction, which include wire services, document preparation, and other mortgage settlement services. As part of Better Real Estate we offer real estate services through our national network of real estate agents, primarily third-party partner real estate agents. Our technology matches prospective buyers with local agents, who help them identify houses, see houses, and navigate the purchase process. In the partner agent model, we refer customers to a network of external agents that assist them with searching for a home for which we receive a cooperative brokerage fee.

Through Better Cover we offer customers access to a range of homeowners insurance policy options through our digital marketplace of third-party insurance partners. We act as an agent to insurance carriers and receive an agency fee from the insurance carriers for policies sold and renewed. We also offer title insurance primarily as an agent and work with third-party providers that fulfill and underwrite the title insurance policies.

International Lending Revenue—Other revenue

International lending revenue consists of revenue from our international lending activities, primarily in the U.K., which has expanded via acquisitions in prior years. International lending activities primarily include broker fees earned via our digital mortgage broker in the U.K. During ~~the fourth quarter of~~ 2024, management enacted a plan to sell several entities in the U.K., ~~which~~One ~~management~~of ~~expects~~those tosales ~~complete~~was ~~the~~completed ~~sales~~in ~~within~~Q3 ~~one~~2025, ~~year.~~with At the ~~end~~remaining ofexpected ~~the~~to ~~third~~be ~~quarter~~completed ~~2025,~~in ~~management~~2026. ~~has~~As ~~closed~~such, on the ~~sale~~revenue offrom ~~its~~our ~~digital~~non-core ~~mortgage~~international ~~broker~~operations inis ~~the~~winding Udown.K.

Key Business Metrics

In addition to the measures presented in our condensed consolidated financial statements, we use the following key business metrics to help us evaluate our business, identify trends affecting our business, formulate plans and make strategic decisions. Our key business metrics enable us to monitor our ability to manage our business compared to the broader mortgage origination market, as well as monitor relative performance across key purchase and refinance verticals.

~~Key measures that we use in assessing our business include the following ($ in millions, except percentage data or as otherwise noted):~~34

	Three Months Ended September 30,						Nine Months Ended September 30,
Key Business Metric	2025			2024			2025			2024
Home Finance
Funded Loan Volume	$	1,210		$	1,035		$	3,284		$	2,658
Refinance Loan Volume	$	183		$	130		$	478		$	289
Purchase Loan Volume	$	774		$	739		$	2,155		$	2,062
HELOC Volume	$	253		$	166		$	651		$	307
D2C Loan Volume	$	727		$	776		$	2,115		$	1,805
B2B Loan Volume	$	—		$	259		$	95		$	853
Retail Loan Volume	$	483		$	—		$	1,074		$	—
Total Loans (number of loans, not millions)	4,086			3,443			11,093			8,429
Average Loan Amount ($ value, not millions)	$	296,159		$	300,589		$	296,034		$	315,350
Gain on Sale Margin	3.01		%	2.08		%	2.98		%	2.31		%
Total Market Share	0.2		%	0.2		%	0.2		%	0.2		%
Better Plus
Better Real Estate Transaction Volume	$	64		$	105		$	228		$	266
Insurance Coverage Written	$	1,018		$	1,068		$	3,015		$	3,300

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Key measures that we use in assessing our business include the following ($ in millions, except percentage data or as otherwise noted):


	Three Months Ended March 31,
Key Business Metric	2026			2025
Home Finance
Refinance Loan Volume	$	854		$	133
Purchase Loan Volume	588			578
HELOC Volume	203			157
Funded Loan Volume	$	1,645		$	868

D2C Loan Volume	$	824		$	614
B2B Loan Volume	—			91
Platform Loan Volume	821			163
Funded Loan Volume	$	1,645		$	868

Total Loans (number of loans, not millions)	5,018			2,975
Average Loan Amount ($ value, not millions)	$	327,723		$	291,909
Gain on Sale Margin	2.72		%	2.83		%
Total Market Share	0.3		%	0.2		%

Better Plus
Better Real Estate Transaction Volume	$	33		$	70
Insurance Coverage Written	$	1,305		$	996

Home Finance

Funded Loan Volume represents the aggregate dollar amount of all loans funded in a given period based on the principal amount of the loan at funding, including HELOC loans.

Refinance Loan Volume represents the aggregate dollar amount of refinance loans funded in a given period based on the principal amount of the loan at refinancing date.

Purchase Loan Volume represents the aggregate dollar amount of purchase loans funded in a given period based on the principal amount of the loan at purchase date.

HELOC Loan Volume represents the aggregate dollar amount of HELOC and closed-end lien loans funded in a given period based on the principal amount of the loan at funding.

~~D2C~~Funded Loan Volume represents the aggregate dollar amount of all loans funded in a given period based on the principal amount of the loan at funding ~~that have been generated from direct interactions with customers using all marketing channels other than our Retial and B2B partner relationships~~.

~~B2B~~D2C Loan Volume represents the aggregate dollar amount of loans funded in a given period based on the principal amount of the loan at funding that have been generated ~~through~~from ~~one~~direct ofinteractions ~~our~~with ~~B2B~~customers using all marketing channels other than our partner relationships and our Tinman® AI Platform channel.

~~Retail~~B2B Loan Volume represents the aggregate dollar amount of loans funded in a given period based on the principal amount of the loan at funding that ~~has~~have been generated through ~~one~~our ofB2B ~~our~~partner ~~distributed~~relationship ~~retail~~with Ally. This channel was discontinued upon the wind-down of the relationship with Ally Financial Inc. (“Ally”); the Company has not reported B2B Loan Volume since Q4 2025.

~~Total~~Platform ~~Loans~~Loan Volume represents the ~~total~~aggregate ~~number~~dollar amount of loans funded in a given period, ~~including~~based ~~purchase~~on ~~loans,~~the ~~refinance~~principal ~~loans~~amount ~~and~~of ~~HELOC~~the ~~loans~~loan at funding that have been generated through one of our distributed retail channels.

~~Average~~Total ~~Loan~~Loans ~~Amount~~ represents ~~Funded~~the ~~Loan~~total ~~Volume divided by~~ number of loans funded in a given period, including purchase loans, refinance loans and HELOC loans and closed-end second lien loans.

~~Gain on Sale Margin represents gain on loans, net, as presented on our condensed consolidated statements of operations and comprehensive income (loss), divided by Funded Loan Volume.~~ 35

~~Total~~Table ~~Market Share represents Funded Loan Volume in a period divided by total value~~ of ~~loans funded in the industry for the same period, as presented by the Federal National Mortgage Association.~~ Contents

Average Loan Amount represents Funded Loan Volume divided by Total Loans in a period.

Gain on Sale Margin represents gain on loans, net, as presented on our condensed consolidated statements of operations and comprehensive loss, divided by Funded Loan Volume.

Total Market Share represents Funded Loan Volume in a period divided by total value of loans funded in the industry for the same period, as presented by FNMA.

Better Plus

Better Real Estate Transaction Volume represents the aggregate dollar amount of real estate volume transacted in a given period across both in-house agents and third-party network agents.

Insurance Coverage Written represents the aggregate dollar amount of insurance liability coverage provided to customers on behalf of insurance carrier partners across all insurance products on the Company’s marketplace, specifically title and homeowners insurance offered through Better Settlement Services and Better Cover. This includes the value of the loan for lender’s title insurance and dwelling coverage for homeowners insurance. Insurance Coverage Written amounts for Better Cover have been updated for all periods presented to include both new policies and policy renewals, which in prior periods included only new policies.

Description of Certain Components of Our Financial Data

Components of Revenue

Our sources of revenue include gain on loans, net, other revenue, and net interest income.

Home Finance (Gain on Loans, Net)

Gain on loans, net, includes revenue generated from our mortgage production process. The components of Gain on loans, net, are as follows:

i.Gain on sale of loans, net–This represents the premium we receive in excess of the loan principal amount and certain fees charged by loan purchasers upon sale of loans into the secondary market. Gain on sale of loans, net includes unrealized changes in the fair value of ~~mortgage~~LHFS, ~~loans~~which ~~held~~are ~~for~~recognized ~~sale~~on (“a loan-by-loan basis as part of current period earnings until the loan is sold on the secondary market. The fair value of LHFS~~”),~~ ~~which~~is ~~are~~measured ~~recognized~~based on observable market data. This also includes activity for loans originated on behalf of the integrated partnership that are subsequently purchased by us as well the portion of the sale proceeds to be received by the integrated partner. The portion of the sale proceeds that is to be allocated to the integrated partner is accrued as a reduction of gain on sale of loans, net when the loan is initially purchased by us from the integrated relationship partner.

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loan-by-loan basis as part of current period earnings until the loan is sold on the secondary market. The fair value of LHFS is measured based on observable market data. This also includes activity for loans originated on behalf of the integrated partnership that are subsequently purchased by us as well the portion of the sale proceeds to be received by the integrated partner. The portion of the sale proceeds that is to be allocated to the integrated partner is accrued as a reduction of gain on sale of loans, net when the loan is initially purchased by us from the integrated relationship partner.

Gain on sale of loans, net also includes the changes in fair value of IRLCs and forward sale commitments. IRLCs include the fair value upon purchase/issuance with subsequent changes in the fair value recorded in each reporting period until the loan is sold on the secondary market. Fair value of forward commitments hedging IRLCs and LHFS are measured based on quoted prices for similar assets.

ii.Broker revenue–Includes fees that the Company receives for originating loans on behalf of third-parties~~, including the integrated relationship partner~~. ~~Starting late in 2024, our business with the integrated relationship partner, Ally, is winding down due a shift in strategic direction by Ally.~~

iii.Provision for Loan Repurchase Reserve–In connection with our sale of loans on the secondary market, we make customary representations and warranties to the relevant loan purchasers about various characteristics of each loan, such as the origination and underwriting guidelines, including but not limited to the validity of the lien securing the loan, property eligibility, borrower credit, income and asset requirements, and compliance with applicable federal, state and local laws. In the event of a breach of its representations and warranties, we may be required to repurchase the loan with the identified defects. The provision for loan repurchase reserve, represents the charge for these potential losses.

Better Plus, International Lending Revenue, and Other (Other Revenue)

We generate other revenue through our Better Plus offerings, which includes ~~Better Real Estate (~~real estate services), ~~Better~~insurance, ~~Cover~~settlement ~~(insurance)~~services, and international lending revenue.

For Better Real Estate, we generate revenues from fees related to real estate agent services, mainly cooperative brokerage fees from our network of third-party real estate agents, to assist our customers in the purchase or sale of a home. For settlement services, we generate revenues from fees on services, such as policy preparation, title search, wire, and other services, required to close a loan, which were provided by third parties through our platform. We recognize revenues from fees on settlement services upon the completion of the performance obligation, which was when the loan transaction closes.36

~~For~~Table ~~Better Cover, we generate revenues from agent fees on homeowners insurance policies obtained by our customers through our marketplace~~ of third-party insurance carriers. For title insurance, we generate revenues from agent fees on title policies written by third parties and sold to our customers in loan transactions. We recognize revenues from agent fees on title policies upon the completion of the performance obligation, which is when the loan transaction closes. As an agent, we do not control the ability to direct the fulfillment of the service, are not primarily responsible for fulfilling the performance of the service, and do not assume the risk in a claim against the policy. Contents

For real estate services, we generate revenues from fees related to real estate agent services, mainly cooperative brokerage fees from our network of third-party real estate agents, to assist our customers in the purchase or sale of a home. For settlement services, we generate revenues from fees on services, such as policy preparation, title search, wire, and other services, required to close a loan, which were provided by third parties through our platform. We recognize revenues from fees on settlement services upon the completion of the performance obligation, which was when the loan transaction closes.

For insurance services, we generate revenues from agent fees on homeowners insurance policies obtained by our customers through our marketplace of third-party insurance carriers. For title insurance, we generate revenues from agent fees on title policies written by third parties and sold to our customers in loan transactions. We recognize revenues from agent fees on title policies upon the completion of the performance obligation, which is when the loan transaction closes. As an agent, we do not control the ability to direct the fulfillment of the service, are not primarily responsible for fulfilling the performance of the service, and do not assume the risk in a claim against the policy.

Our performance obligations for settlement services and title insurance are typically completed 40 to 60 days after the commencement of the loan origination process and are recognized in revenue upon the closing of the loan transaction.

For international lending revenue, we generate revenue primarily from broker fees earned via our digital mortgage broker in the U.K. During ~~the fourth quarter of~~ 2024, management enacted a plan to sell several entities in the U.K. One of those sales was completed in Q3 2025, ~~which~~with an additional sale completed in Q1 2026, and any remaining dispositions are ~~being~~expected ~~actively~~to ~~marketed~~be completed during 2026. AtAs such, the ~~end~~revenue offrom ~~the~~our ~~third~~non-core ~~quarter~~international ~~2025,~~operations ~~management~~is ~~has~~winding ~~closed~~down. onWe ~~the~~do ~~sale~~not ofexpect ~~its~~to ~~digital~~generate ~~mortgage~~material ~~broker~~revenue from these non-core international operations in ~~the~~future Uperiods.K.

Net Interest Income

Net interest income from continuing operations includes interest income from LHFS, including HELOCs, calculated based on the note rate of the respective loan,. ~~interest~~Interest ~~income~~expense from ~~short-term~~continuing ~~investments,~~operations ~~and~~primarily includes interest ~~income~~expense on ~~loans~~warehouse ~~held~~lines ~~for~~of ~~investment,~~credit ~~through~~and ~~our~~corporate debt.

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U.K. banking operations. Interest expense includes interest expense on warehouse lines of credit, interest expense on customer deposits, through our U.K. banking operations, as well as interest expense on the Convertible Notes.

Components of Our Expenses

Our expenses consist of compensation and benefits, general and administrative, technology expenses, marketing and advertising expenses, loan origination expenses, depreciation and amortization, and other expenses.

Compensation and Benefits Expenses

Compensation and benefits expenses includes salaries, wages, and incentive pay as well as stock-based compensation, employee health benefits, 401(k) plan benefits, and social security and unemployment taxes. Stock-based compensation includes expenses associated with restricted stock unit grants, performance stock unit grants, and stock option grants under our stock plans. We recognize compensation expense for the stock-based payments based on the fair value of the awards on the grant date. The expense is recorded on a straight-line basis over the requisite service period. Compensation and benefits excludes amounts capitalized for internally -developed software.

General and Administrative Expenses

General and administrative expenses include rent and occupancy expenses, travel and entertainment expenses, insurance expenses, and external legal, tax and accounting services. General and administrative expenses are expensed as incurred.

Technology Expenses

Technology expenses consist of expenses related to vendors engaged in product management, design, development and testing of our websites and products. Technology and product development expenses are generally expensed as incurred.

Marketing and Advertising Expenses

Marketing and advertising expenses consist of customer acquisition expenses, brand costs, and paid marketing. For customer acquisition expenses, we primarily generate loan origination leads through third-party financial service websites for which we incur “pay-per-click” expenses. A majority of our marketing expenses are incurred from leads that we purchase from these third-party financial service websites. Marketing expenses are generally expensed as incurred.

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Loan Origination Expenses

Loan origination expenses consist primarily of origination expenses, appraisal fees, processing expenses, underwriting, closing fees, and servicing costs. These expenses are expensed as incurred.

Other Expenses~~/(Income)~~

Other expenses relate to other non-mortgage homeownership activities, including settlement service expenses, lead generation expenses, expenses incurred in relation to our international lending activities, restructuring and impairment expenses, gains and losses from ~~the~~equity ~~warrant~~related liabilities, and ~~equity~~gains and losses related ~~liabilities~~to disposals of held-for-sale assets. Settlement service expenses consist of fees for transactional services performed by third-party providers for borrowers while lead generation expenses consist of fees for services related to real estate agents. Other expenses are expensed as incurred.

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Results of Operations-Continuing Operations

The following table sets forth ~~certain~~selected ~~consolidated~~ financial data of the Company’s continuing operations for each of the periods indicated:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Amounts in thousands, except per share amounts)

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

Revenues:

Gain on loans, net

3644,~~421~~801

2124,~~503~~576

~~97,769~~

~~61,384~~

Other revenue

21,~~777~~142

3,~~070~~650

~~10,107~~

~~8,768~~

Net interest income

Interest income

167,~~855~~284

97,~~867~~595

~~41,457~~

~~27,900~~

Interest expense

(125,~~186~~730)

(54,~~446~~493)

~~(28,769)~~

~~(14,545)~~

Net interest income

41,~~669~~554

43,~~421~~102

~~12,688~~

~~13,355~~

Total net revenues

4347,~~867~~497

2831,~~994~~328

~~120,564~~

~~83,507~~

Expenses:

Compensation and benefits

4155,~~287~~736

3743,~~752~~892

~~129,367~~

~~111,079~~

General and administrative

108,~~167~~948

1210,~~611~~777

~~33,304~~

~~41,813~~

Technology

68,~~726~~361

76,~~249~~649

~~20,856~~

~~19,289~~

Marketing and advertising

109,~~490~~217

128,~~101~~679

~~30,317~~

~~25,186~~

Loan origination expense

37,~~728~~733

32,~~774~~503

~~10,154~~

~~7,142~~

Depreciation and amortization

32,~~398~~997

83,~~259~~773

~~10,908~~

~~25,323~~

Other expenses/(income)

7,051

1,332

11,226

270

Other expenses

5,421

882

Total expenses

8298,~~847~~413

8377,~~078~~155

~~246,132~~

~~230,102~~

Loss before income tax expense

(3850,~~980~~916)

(5445,~~084~~827)

~~(125,568)~~

~~(146,595)~~

Income tax expense/(benefit)

145

126

384

472

Income tax (benefit)/expense

(1,566)

145

Net loss

(3949,~~125~~350)

(5445,~~210~~972)

~~(125,952)~~

~~(147,067)~~

Earnings (loss) per share attributable to common stockholders (Basic)

(23.5601)

(3.5803)

~~(8.27)~~

~~(9.74)~~

Earnings (loss) per share attributable to common stockholders (Diluted)

(23.5601)

(3.5803)

~~(8.27)~~

~~(9.74)~~

4139

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Three ~~and Nine~~ Months Ended ~~September~~March 3031, ~~2025~~2026 as Compared to Three ~~and Nine~~ Months Ended ~~September~~March 3031, ~~2024~~2025

Revenues

The components of our revenues for the period were:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Amounts in thousands)

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

Revenues:

Gain on loans, net

~~36,421~~$

44,801

~~21,503~~$

24,576

~~97,769~~

~~61,384~~

Other revenue

21,~~777~~142

3,~~070~~650

~~10,107~~

~~8,768~~

Net interest income

Interest income

167,~~855~~284

97,~~867~~595

~~41,457~~

~~27,900~~

Mortgage interest expense

(12,186)

(5,446)

(28,769)

(14,545)

Interest expense

(5,730)

(4,493)

Net interest income

41,~~669~~554

43,~~421~~102

~~12,688~~

~~13,355~~

Total net revenues

4347,~~867~~497

2831,~~994~~328

~~120,564~~

~~83,507~~

Gain on loans, net

The components of our gain on loans, net for the period were:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Amounts in thousands)

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

Gain on sale of loans, net

3644,~~249~~064

1521,~~836~~278

~~91,542~~

~~44,032~~

Broker revenue

1,~~608~~375

21,~~441~~171

~~5,114~~

~~7,184~~

Loan repurchase reserve recovery

(1,436)

3,226

1,113

10,168

Loan repurchase reserve (provision) recovery

(638)

2,127

Total gain on loans, net

3644,~~421~~801

2124,~~503~~576

~~97,769~~

~~61,384~~

Gain on sale of loans, net increased $2022.48 million or ~~129~~107% to $3644.21 million for the three months ended ~~September~~March 3031, ~~2025~~2026 compared to $1521.83 million for the three months ended ~~September~~March 3031, ~~2024~~2025. The increase in gain on sale of loans, net was largely driven by the increase of Funded Loan Volume, which was driven by increases in refinance and home equity products.

~~Gain~~Broker onrevenue ~~sale of loans, net~~ increased $470.52 million, or ~~108~~17% to $911.54 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, compared to $441.02 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025. The increase in ~~gain~~broker onrevenue ~~sale of loans, net~~ was ~~largely~~primarily driven by ~~the~~broker ~~increase~~revenue ofearned ~~Funded~~for ~~Loan~~originating ~~Volume,~~loans ~~which~~for ~~was~~third-parties ~~driven~~through ~~by increases~~ in-market ~~home~~originations ~~equity products~~operations.

~~Broker~~Loan ~~revenue~~repurchase reserve recovery decreased $02.8 million, or 34130%, to a provision of $10.6 million for the three months ended ~~September~~March 3031, ~~2025~~2026, compared to a recovery of $2.41 million for the three months ended ~~September~~March 3031, ~~2024~~2025. The ~~decrease~~prior-year inrecovery ~~broker revenue~~ was ~~primarily~~ driven by ~~the~~declining ~~reduction~~estimated inloss ~~B2B~~exposure ~~Loan~~associated ~~Volume~~with ~~due~~historical toorigination ~~the~~vintages, ~~conclusion~~while ofthe ~~our~~current-year ~~integrated~~provision ~~relationship~~reflects ~~partnership~~updated ~~with~~estimates ~~Ally.~~of ~~This~~expected ~~was~~losses ~~offset~~and ~~by broker revenue earned for originating loans for third~~loan-~~parties~~specific inactivity ~~our~~during ~~Retail~~the ~~channel~~period.

Broker revenue decreased $2.1 million, or 28.8% to $5.1 million for the nine months ended September 30, 2025, compared to $7.2 million for the nine months ended September 30, 2024. The decrease in broker revenue was primarily driven by the reduction in B2B Loan Volume due to the conclusion of our integrated relationship partnership with Ally. This was offset by broker revenue earned for originating loans for third-parties in our Retail channel. 40

Loan repurchase reserve recovery decreased $4.7 million or 145%, to a provision of $1.4 million for the three months ended September 30, 2025, compared to a recovery of $3.2 million for the three months ended September 30, 2024. The loan repurchase reserve has decreased as our estimate for potential loss exposure has declined as we no longer have exposure to the historical periods when we had a significantly higher funded loan volume. The reduction in potential loss exposure results in a reduction in the loan repurchase reserve liability which is recognized as a recovery within gain on loans, net.

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Loan repurchase reserve recovery decreased $9.1 million or 89.1%, to a recovery of $1.1 million for the nine months ended September 30, 2025, compared to a recovery of $10.2 million for the nine months ended September 30, 2024. The loan repurchase reserve has decreased as our estimate for potential loss exposure has declined as we no longer have exposure to the historical periods when we had a significantly higher funded loan volume. The reduction in potential loss exposure results in a reduction in the loan repurchase reserve liability which is recognized as a recovery within gain on loans, net.

Other Revenue

The components of other revenue for the period were:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Amounts in thousands)

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

International lending revenue

~~2,267~~47

1,~~190~~538

~~5,241~~

~~3,517~~

Insurance services

~~587~~578

~~438~~673

~~2,085~~

~~1,614~~

Real estate services

~~466~~170

~~753~~947

~~1,564~~

~~1,753~~

Other revenue/(loss)

(543)

689

1,217

1,884

Other revenue

347

492

Total other revenue

21,~~777~~142

3,~~070~~650

~~10,107~~

~~8,768~~

International lending revenue ~~increased~~decreased $1.15 million, or 9196.9% to ~~$2.3~~an ~~million~~immaterial amount for the three months ended ~~September~~March 3031, ~~2025~~2026 compared to $1.25 million for the three months ended ~~September~~March 3031, ~~2024~~2025. The ~~increase~~decrease in international lending revenue was primarily driven by ~~increased~~the ~~operations~~sale of the Trussle disposal group in ~~U.K.~~the ~~brokerage~~third ~~businesses~~quarter of 2025.

~~International~~Insurance ~~lending~~services ~~revenue~~decreased ~~increased~~ $10.71 million, or 4914.01% to $50.26 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 compared to $30.57 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025. The ~~increase~~decrease in ~~international~~insurance ~~lending~~services revenue was primarily driven by ~~increased~~the ~~operations~~sale of the Trussle disposal group in ~~U.K.~~the ~~brokerage~~third ~~businesses~~quarter of 2025 offset slightly by an increase in insurance related revenue from our Better Cover business.

~~Insurance~~Real estate services ~~increased~~decreased $0.17 million, or ~~34.0~~77% to $0.62 million for the three months ended ~~September~~March 3031, ~~2025~~2026 compared to $0.49 million ~~for~~ the three months ended ~~September~~March 3031, ~~2024.~~2025 ~~The~~due ~~increase~~to a decrease in ~~insurance~~real ~~services~~estate ~~was~~transaction ~~primarily~~volume driven by anthe ~~increase~~conclusion inof ~~insurance~~the ~~related~~integrated ~~revenue~~relationship ~~from~~partnership ~~the~~with UAlly and its use as a source of referrals for real estate services.K.

~~Insurance~~Other ~~services~~revenue ~~increased~~decreased by $0.52 million, or 2931.25% to $20.13 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 compared to $10.65 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025. The ~~increase~~decrease in ~~insurance~~other ~~services~~revenue was primarily driven by anlower ~~increase~~ancillary ~~in insurance related~~ revenue ~~from the U~~activities.K.

Real estate services decreased $0.3 million, or 38% to $0.5 million for the three months ended September 30, 2025 compared to $0.8 million the three months ended September 30, 2024 due to a decrease in real estate transaction volume driven by the conclusion of the integrated relationship partnership with Ally and its use as a source of referrals for real estate services.

Real estate services decreased $0.2 million, or 10.8% to $1.6 million for the nine months ended September 30, 2025 compared to $1.8 million for the nine months ended September 30, 2024 due to a decrease in real estate transaction volume driven by the conclusion of the integrated relationship partnership with Ally and its use as a source of referrals for real estate services.

Other revenue decreased by $1.2 million, or 178.8% to $(0.5) million for the three months ended September 30, 2025 compared to $0.7 million for the three months ended September 30, 2024. The decrease in other revenue was primarily driven by mortgage and non-mortgage loan servicing activities in the U.S. and U.K.

Other revenue decreased by $0.7 million, or 35.4% to $1.2 million for the nine months ended September 30, 2025 compared to $1.9 million for the nine months ended September 30, 2024. The decrease in other revenue was primarily driven by mortgage and non-mortgage loan servicing activities in the U.S. and U.K.

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Net Interest Income

The components of our net interest income for the period were:

	Three Months Ended September 30,				Nine Months Ended September 30,
	Three Months Ended March 31,
(Amounts in thousands)	~~2025~~2026		~~2024~~2025		~~2025~~		~~2024~~
Mortgage interest income	$	76,~~075~~941	$	56,~~400~~437	$	~~21,298~~	$	~~12,832~~
Interest income on loans held for investment	6,560		705		12,333		1,008
Interest income from investments	343		1,158
Interest income from investments	3,220		3,762		7,826		14,060
Warehouse interest expense	(5,730)		(2,788)
Warehouse interest expense	(5,627)		(3,178)		(14,142)		(7,575)
Other interest expense	—		(1,705)
Interest expense on customer deposits	(6,559)		(637)		(12,916)		(1,007)
Total net interest income	$	1,554	$	3,102
Other interest expense	—		(1,631)		(1,711)		(5,963)
Total net interest income/(loss)	$	4,669	$	4,421	$	12,688	$	13,355

Mortgage interest income increased $10.75 million, or 318% to $76.19 million for the three months ended ~~September~~March 3031, ~~2025~~2026 compared from $56.4 million of the three months ended ~~September~~March 3031, ~~2024~~2025. The increase in mortgage interest income was primarily driven by the increase in origination volume and the mortgage interest income earned on the unpaid principal balance for loans held and serviced during the interim between the origination of the loan and its sale on the secondary market.

~~Mortgage~~Interest ~~interest~~ income ~~increased~~from investments decreased $80.58 million, or ~~66.0~~70% to $210.3 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 compared ~~from~~to $121.82 million offor the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025. The ~~increase~~decrease in ~~mortgage~~ interest income from investments was primarily driven by ~~the~~decreased ~~increase~~holdings ~~in origination volume and the mortgage interest income earned on the unpaid principal balance for loans held and serviced during the interim between the origination~~ of ~~the~~investments ~~loan~~with ~~and~~maturities ~~its~~less ~~sale~~than on90 ~~the secondary market~~days.

~~Interest~~Warehouse ~~income~~interest onexpense ~~loans held for investment~~ increased $52.9 million, or ~~830.5~~106% to $65.67 million for the three months ended ~~September~~March 3031, ~~2025~~2026 compared to $02.78 million for the three months ended ~~September~~March 3031, ~~2024~~2025. The increase in warehouse interest income on loans held for investment was driven by increased originations of loans held for investment in our U.K. banking operations. Loans held for investment was $623.4 million and $81.4 million as of September 30, 2025 and 2024.

Interest income on loans held for investment increased $11.3 million, or 1,124% to $12.3 million for the nine months ended September 30, 2025 compared to $1.0 million for the nine months ended September 30, 2024. The increase in interest income on loans held for investment was driven by increased originations of loans held for investment in our U.K. banking operations. Loans held for investment was $623.4 million and $81.4 million as of September 30, 2025 and 2024.41

Interest income from investments decreased $0.5 million, or 14% to $3.2 million for the three months ended September 30, 2025 compared to $3.8 million for the three months ended September 30, 2024. The decrease in interest income from investments was primarily driven by decreased holdings of investments with maturities less than 90 days which was partially offset by increases in holdings of short-term investments with maturities of 91 days to a year.

Interest income from investments decreased $6.2 million, or 44.3% to $7.8 million for the nine months ended September 30, 2025 compared to $14.1 million for the nine months ended September 30, 2024. The decrease in interest income from investments was primarily driven by decreased holdings of investments with maturities less than 90 days which was partially offset by increases in holdings of short-term investments with maturities of 91 days to a year.

Warehouse interest expense increased $2.4 million, or 77% to $5.6 million for the three months ended September 30, 2025 compared to $3.2 million for the three months ended September 30, 2024. The increase in warehouse interest expense was primarily driven by increased borrowings on funding facilities used in the mortgage production process to meet the increased origination volume.

Warehouse interest expense increased $6.6 million, or 86.7% to $14.1 million for the nine months ended September 30, 2025 compared to $7.6 million for the nine months ended September 30, 2024. The increase in warehouse interest expense was primarily driven by increased borrowings on funding facilities used in the mortgage production process to meet the increased origination volume.

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~~Interest~~ expense onwas ~~customer~~primarily ~~deposits~~driven by increased ~~$5.9~~borrowings ~~million,~~on orfunding ~~930%~~facilities toused ~~$6.6~~in ~~million for~~ the ~~three~~mortgage ~~months~~production ~~ended~~process ~~September 30, 2025 compared~~ to ~~$0.6~~meet ~~million for~~ the ~~three months ended September 30, 2024. The increase in interest expense on customer deposits was driven by~~ increased ~~customer~~origination ~~deposits which in turn fund our loans held for investment in our U~~volume.~~K. banking operations. The balance of customer deposits was $694.8 million and $97.8 million as of September 30, 2025 and 2024.~~

~~Interest~~Other interest expense ondecreased ~~customer deposits increased~~ $111.97 million, or ~~1183~~100% to ~~$12.9~~none ~~million~~ for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026 compared to $1.07 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025. ~~The~~Other ~~increase in~~ interest expense onis ~~customer~~related ~~deposits~~to ~~was~~interest ~~driven~~expense byon ~~increased~~our ~~customer~~Convertible ~~deposits~~Notes which inwere ~~turn~~extinguished ~~fund~~as ~~our~~part ~~loans~~of ~~held~~the ~~for~~Exchange ~~investment~~per inNote ~~our~~10 ~~U.K.~~in ~~banking~~April ~~operations~~2025. ~~The~~As ~~balance~~part of ~~customer~~the ~~deposits~~TDR ~~was~~accounting, ~~$694.8~~the ~~million~~interest ~~and~~on ~~$97.8 million~~the Senior Notes has been recognized up front as part of ~~September 30,~~the ~~2025~~new ~~and~~carrying ~~2024~~value.

Other interest expense decreased $1.6 million, or 100% to none for the three months ended September 30, 2025 compared to $1.6 million for the three months ended September 30, 2024. Other interest expense is related to interest expense on our Convertible Notes which were extinguished as part of the Exchange per Note 10 in April 2025. As part of the TDR accounting, the interest on the Senior Notes has been recognized up front as part of the new carrying value.

Other interest expense decreased $4.3 million, or 71.3% to $1.7 million for the nine months ended September 30, 2025 compared to $6.0 million for the nine months ended September 30, 2024. Other interest expense is related to interest expense on our Convertible Notes which were extinguished as part of the Exchange per Note 10 in April 2025. As part of the TDR accounting, the interest on the Senior Notes has been recognized up front as part of the new carrying value.

Expenses

The components of our expenses for the period were:

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended March 31,

(Amounts in thousands)

~~2025~~2026

~~2024~~2025

~~2025~~

~~2024~~

Compensation and benefits

~~41,287~~$

55,736

~~37,752~~$

43,892

~~129,367~~

~~111,079~~

General and administrative

108,~~167~~948

1210,~~611~~777

~~33,304~~

~~41,813~~

Technology

68,~~726~~361

76,~~249~~649

~~20,856~~

~~19,289~~

Marketing and advertising

109,~~490~~217

128,~~101~~679

~~30,317~~

~~25,186~~

Loan origination expense

37,~~728~~733

32,~~774~~503

~~10,154~~

~~7,142~~

Depreciation and amortization

32,~~398~~997

83,~~259~~773

~~10,908~~

~~25,323~~

Other expenses/(income)

7,051

1,332

11,226

270

Other expenses

5,421

882

Total operating expenses

8298,~~847~~413

8377,~~078~~155

~~246,132~~

~~230,102~~

Compensation and benefits expenses were $4155.37 million for the three months ended ~~September~~March 3031, ~~2025~~2026, an increase of $311.58 million or 927% compared with $3743.89 million for the three months ended ~~September~~March 3031, ~~2024~~2025. WeThe ~~increased our headcount between the two periods, and increased incentive compensation as a result of increased production volume, which lead to an~~ increase in compensation and benefits. ~~The~~was ~~increase~~primarily indriven ~~headcount~~by ~~was~~higher ~~primarily~~expense inrecognized ~~the~~for ~~second~~performance-based ~~quarter~~equity ofawards, ~~2025~~reflecting aschanges wein ~~began~~the toprobability ~~ramp~~of upachieving ~~our~~specified ~~Retail~~performance ~~channel~~metrics.

~~Compensation~~General and ~~benefits~~administrative expenses were $~~129~~8.49 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, ana ~~increase~~decrease of $181.38 million or 1617% as compared with $~~111~~10.18 million ~~for~~in the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025. WeThe ~~increased~~decrease ~~our headcount between the two periods, and increased incentive compensation as a result of increased production volume, which lead to an increase~~ in ~~compensation~~general and ~~benefits.~~administrative ~~The~~expenses ~~increase~~was indriven ~~headcount~~primarily ~~was~~by ~~primarily~~reductions in ~~the~~insurance ~~second~~premiums ~~quarter~~and ofprofessional ~~2025 as we began to ramp up our Retail channel~~services.

~~General~~Technology ~~and administrative~~ expenses were $108.24 million for the three months ended ~~September~~March 3031, ~~2025~~2026, aan ~~decrease~~increase of $21.47 million or 1926% as compared with $126.6 million in the three months ended ~~September~~March 3031, ~~2024~~2025. The ~~decrease~~increase in ~~general~~technology ~~and administrative~~ expenses was driven primarily by ~~decreases~~the increase in ~~rent~~costs ~~and~~related ~~occupancy~~to ~~expenses~~software ~~and reductions in insurance premiums~~vendors.

~~General~~Marketing and ~~administrative~~advertising expenses were $339.32 million for the ~~nine~~three months ended ~~September~~March 3031, ~~2025~~2026, aan ~~decrease~~increase of $80.5 million or ~~20.4~~6% as compared with $~~41.~~8.7 million in the ~~nine~~three months ended ~~September~~March 3031, ~~2024~~2025. The ~~decrease~~increase inwas primarily driven by higher advertising spend to generate home equity line of credit and refinancing leads.

45Loan origination expenses were $7.7 million for the three months ended March 31, 2026, an increase of $5.2 million or 209%, as compared with $2.5 million in the three months ended March 31, 2025. The increase in loan origination expenses was driven by an increase in origination volume.

Other expenses were $5.4 million for the three months ended March 31, 2026, an increase of $4.5 million or 515%, as compared with $0.9 million in the three months ended March 31, 2025. The increase in other expenses was primarily driven the changes in the fair value of the warrant issued by the Company in connection with a private placement transaction, which provided the holder the right to purchase up to 211,312 shares of the Company’s Class A common stock prior to its exercise, as well as increases in liability-classified warrants and other equity related liabilities due to the higher trading price of the Company’s common stock, partially offset by a gain on the disposal of the BHO disposal group.

Table of Contents

~~general~~Results ~~and~~of ~~administrative~~Operations-Discontinued ~~expenses was driven primarily by decreases in rent and occupancy expenses and reductions in insurance premiums.~~Operations

~~Technology~~During ~~expenses~~the ~~were~~first ~~$6.7~~quarter ~~million~~of ~~for~~2026, the ~~three~~Birmingham ~~months~~Bank ~~ended~~business, ~~September~~which ~~30,~~represents ~~2025~~the Company’s reportable banking segment was classified as held-for-sale. In addition, the Company determined that the planned disposal represents a ~~decrease~~strategic ofshift $0that is expected to have a significant effect on the Company’s operations and financial results.5 ~~million~~Accordingly, orthe 7%results of the Birmingham Bank business are presented as ~~compared~~discontinued ~~with~~operations $7in the Company’s condensed consolidated financial statements for all periods presented.2 ~~million~~The inCompany continues to actively market the ~~three~~Birmingham ~~months~~Bank ~~ended~~business ~~September~~and ~~30,~~is ~~2024~~pursuing a sale transaction. The ~~decrease~~timing inand ~~technology~~ultimate ~~expenses~~outcome ~~was~~of ~~driven~~the ~~primarily~~disposal byremain subject to market conditions and regulatory approvals. The Company expects that the ~~reduction~~results of ~~costs~~discontinued ~~related~~operations will continue to ~~software~~be ~~vendors~~impacted by operating performance, changes in interest rates, and any additional adjustments to the carrying value of the disposal group prior to sale.

~~Technology expenses were $20.9 million for the nine months ended September 30, 2025, an increase of $1.6 million or 8.1% as compared with $19.3 million in the nine months ended September 30, 2024.~~ The ~~increase~~following intable ~~technology~~presents ~~expenses was driven primarily by an increase in costs associated with software vendors. This was driven by increased headcount as we ramped up our Retail channel in~~ the ~~first~~results ~~half~~ of ~~2025,~~discontinued ~~which~~operations ~~required~~for the ~~purchase~~periods ~~of additional software licenses~~indicated.

Marketing and advertising expenses were $10.5 million for the three months ended September 30, 2025, a decrease of $1.6 million or 13% as compared with $12.1 million in the three months ended September 30, 2024. The decrease is due to the recent lower marketing expense required by the Retail channel and the increased conversion across all channels driven by further advancements in our internal AI technology.


	Three Months Ended March 31,
(Amounts in thousands, except per share amounts)	2026		2025
Revenues:
Other revenue	$	(22)	$	380
Net interest income
Interest income	11,284		2,850
Interest expense	(8,606)		(2,005)
Net interest income	2,678		845
Total net revenues	2,656		1,225
Expenses:
Compensation and benefits	2,765		2,776
General and administrative	1,069		853
Technology	591		533
Marketing and advertising	2		8
Depreciation and amortization	286		202
Other expenses	18,904		1,438
Total expenses from discontinued operations	23,617		5,810
Net loss discontinued operations	$	(20,961)	$	(4,585)

~~Marketing~~Three ~~and~~Months ~~advertising~~Ended ~~expenses were $30.3 million for the nine months ended September 30~~March 31, ~~2025,~~2026 ~~an increase of $5.1 million or 20.4%~~ as ~~compared~~Compared ~~with~~to ~~$25.2~~Three ~~million~~Months inEnded ~~the nine months ended September 30~~March 31, ~~2024. The increase is due to higher investment to drive volume for our new Retail channel as well as spend attributed to a pilot program with our newly signed fintech partnership.~~ 2025

Loan origination expenses were $3.7 million for the three months ended September 30, 2025, a decrease of $0.1 million or 1%, as compared with $3.8 million in the three months ended September 30, 2024. The decrease in loan origination expenses driven by further optimization of our loan origination vendors.Revenues

~~Loan~~The ~~origination~~components ~~expenses were $10.2 million for the nine months ended September 30, 2025, and increase~~ of ~~$3.0~~revenues ~~million~~from ordiscontinued ~~42.2%,~~operations asfor ~~compared with $7.1 million in~~ the ~~nine~~period ~~months ended September 30, 2024. The increase in loan origination expenses was driven by an increase in origination volume.~~ were:

Other expenses/(income) were $7.1 million for the three months ended September 30, 2025, an increase of $5.7 million or 429%, as compared with $1.3 million in the three months ended September 30, 2024. The increase in other expenses was primarily driven by an increase on liability classified warrants and equity related liabilities as a result of the increased trading price of our common stock.


	Three Months Ended March 31,
(Amounts in thousands)	2026		2025
Revenues:

Other revenue	$	(22)

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