BETR Stock Forecast & Price Target

Better Home & Finance is attractive because management is prioritizing higher-quality growth through enterprise partnerships and a faster HELOC expansion, which should reduce rate sensitivity and lower customer-acquisition costs over time. The expanded Credit Karma relationship, with access to 140 million customers, is a meaningful distribution win that could materially scale HELOC volumes while offsetting pressure in the first-lien business as mortgage rates rise. Even with 3Q guidance below Street expectations and EBITDA breakeven pushed out, the shares trading near an EV/FY27 revenue multiple of ~1x suggest an appealing risk-reward if cost savings, liquidity from a potential UK bank sale, and partnership-driven growth begin to flow through.

Better Home & Finance is facing a deteriorating macro backdrop as mortgage rates rose from about 5.75% in April to 6.5%+, reducing conversion rates and sharply undermining refinance demand, its most rate-sensitive business. Although Q2 revenue grew 23.9% y/y to $54.7 million and closed loan volume reached $1.667 billion, adjusted EBITDA was still negative $14 million, and Q3 guidance implies further deterioration with $49 million to $52 million of revenue and -$18 million to -$15 million of adjusted EBITDA. The company also faces execution risk from delayed enterprise partnerships, a longer path to profitability, and competitive pressure in a smaller market position, all while the Birmingham Bank sale may take longer than expected.