Better Home & Finance Holding Co. (NASDAQ:BETR) stock edged higher in premarket trading Tuesday after Needham raised its price forecast on the mortgage lender, ahead of its third-quarter earnings report next month.
Needham Raises Price Forecast
Needham analyst Kyle Peterson on Monday maintained a Buy rating on Better Home & Finance and increased his price forecast to $22 from $15, a nearly 47% increase. The move followed an earlier reduction in the firm’s forecast from $25 to $15 on Oct. 13.
Third-Quarter Earnings and Loan Volume Growth
Better also announced Monday that it will release its third-quarter financial results after the market closes Nov. 9.
The company previously reported preliminary third-quarter operating results, showing total loan volume of about $1.39 billion, up 15% from a year earlier.
Volume processed through its Tinman artificial intelligence platform rose 64% to $790 million, accounting for about 57% of total loan volume.
The company reported net revenue of $45.1 million, an 8.6% increase from a year earlier but below its previous guidance of $49 million to $52 million. Revenue declined 17.5% from the second quarter.
Better estimated a third-quarter net loss of $33.1 million to $34.1 million, compared with a loss of $39.1 million a year earlier.
Its preliminary adjusted earnings before interest, taxes, depreciation and amortization showed a loss of $24.8 million to $25.8 million, wider than its previous forecast of a $15 million to $18 million loss.
The company attributed the weaker-than-expected performance partly to interest rate headwinds and a proxy contest that affected operations.
It said the adjusted loss included approximately $8 million in proxy-related expenses. Excluding those costs, the adjusted loss would have been approximately $17.8 million, within its earlier guidance range.
Cash Position and Profitability Outlook
Better also reported $81 million in cash and cash equivalents and $9 million in restricted cash. The company expects the sale of its U.K. banking subsidiary, Birmingham Bank, to generate an additional $65 million in cash, with the transaction expected to close in the first quarter of 2027.
The mortgage technology company is targeting adjusted EBITDA breakeven by the end of 2026 as it pursues cost reductions and expands its AI-driven lending operations.
BETR Price Action: Better Home & Finance shares were up 0.23% at $17.76 during premarket trading on Tuesday, according to Benzinga Pro data.
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