What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2026-03-13 compared with 2025-03-19 · 548 added, 540 removed, 1099 unchanged (50% of the section changed)

30 unchanged sentences

466,681 399,241

Loans held for investment (net of allowance for credit losses

of $ 1,667 and none as of December 31, 2024 and December 31, 2023, respectively)

Loans held for investment (net of allowance for credit losses of $ 2,251 and $ 1,667 as of December 31, 2025 and 2024, respectively)

723,333 111,477

8 unchanged sentences

Total Assets $ 1,505,434 $ 913,057

Liabilities and Stockholders’ (Deficit)/Equity

Liabilities and Stockholders’ Equity/(Deficit)

Warehouse lines of credit $ 411,862 $ 244,070

Liabilities held for sale 6,116 —

Convertible note — 519,749

Senior notes 198,802 —

Customer deposits 762,984 134,130

Accounts payable and accrued expenses (includes $ 74 and none payable to related parties as of December 31, 2024 and December 31, 2023, respectively)

Liabilities held for sale 4,802 6,116

Accounts payable and accrued expenses (includes $ 200 and $ 74 payable to related parties as of December 31, 2025 and 2024, respectively)

74,560 48,134

3 unchanged sentences

Lease liabilities 4,629 4,081

Other liabilities (includes none and $ 390 payable to related parties as of December 31, 2024 and 2023, respectively)

13,466 25,837

Other liabilities

Total Liabilities

1 unchanged sentence

Commitments and contingencies (see Note 15)

Stockholders’ (Deficit) /Equity

Stockholders’ Equity/(Deficit)

Common stock $ 0.0001 par value;

66,000,000 and 66,000,000 shares authorized as of December 31, 2024 and December 31, 2023, respectively, and 15,168,795 and 15,035,467 shares issued and outstanding as of December 31, 2024 and December 31, 2023, respectively

66,000,000 and 66,000,000 shares authorized as of December 31, 2025 and 2024, respectively, and 15,996,907 and 15,168,795 shares issued and outstanding as of December 31, 2025 and 2024, respectively

Notes receivable from stockholders — ( 9,158 )

Additional paid-in capital 2,109,762 1,863,288

1,863,288 1,838,499

Accumulated deficit ( 2,076,238 ) ( 1,910,366 )

Accumulated other comprehensive loss ( 1,936 ) ( 1,714 )

Total Stockholders’ (Deficit)/Equity ( 58,170 ) 122,600

Total Liabilities and Stockholders’ (Deficit)/Equity $ 913,057 $ 905,554

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.

Accumulated other comprehensive gain/(loss) 3,657 ( 1,936 )

Total Stockholders’ Equity/(Deficit) 37,183 ( 58,170 )

Total Liabilities and Stockholders’ Equity/(Deficit) $ 1,505,434 $ 913,057

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

8 unchanged sentences

Interest expense ( 42,844 ) ( 21,488 )

Net interest income/(loss) 17,502 ( 2,565 )

Net interest income 17,425 17,502

Total net revenues 164,872 108,488

7 unchanged sentences

Total Expenses 330,691 313,928

Loss before income tax (benefit)/expense ( 205,440 ) ( 534,422 )

Income tax expense (benefit) 850 1,998

Loss before income tax expense ( 165,819 ) ( 205,440 )

Income tax expense 53 850

Net loss ( 165,872 ) ( 206,290 )

13 unchanged sentences

Common Stock Notes Receivables from Stockholders Additional Paid-In

Capital 1 Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholders' (Deficit) Equity

(Amounts in thousands, except share and per share amounts) Issued and Outstanding 1

Capital Accumulated Deficit Accumulated Other Comprehensive Gain/(Loss) Total Stockholders' Equity (Deficit)

(Amounts in thousands, except share and per share amounts) Issued and Outstanding Par

Balance - December 31, 2024 15,168,795 $ 2 $ ( 9,158 ) $ 1,863,288 $ ( 1,910,366 ) $ ( 1,936 ) $ ( 58,170 )

Adjustment of transaction costs related to Business Combination — — — ( 2,372 ) — — ( 2,372 )

Gain on troubled debt restructuring (see Note 13) — — — 210,044 — — 210,044

Tax effect on gain on troubled debt restructuring — — — ( 741 ) — — ( 741 )

Issuance of common stock for options exercised 1,516 — — 19 — — 19

Cancellation of common stock ( 30,673 ) — — — — — —

Issuance of common stock under ATM program 547,260 — — 29,221 — — 29,221

Termination of notes receivable from stockholders ( 20,855 ) — 9,158 ( 9,158 ) — — —

Stock-based compensation — — — 21,851 — — 21,851

1 unchanged sentence

Shares issued for vested restricted stock units 456,417 — — — — — —

Vesting of common stock issued via notes receivable from stockholders — — ( 893 ) 885 — — ( 8 )

Settlement of notes receivable from stockholders — — 1,846 ( 1,846 ) — — —

Issuance of common stock – other 5,196 — — 56 — — 56

Net loss — — — — ( 165,872 ) — ( 165,872 )

Other comprehensive loss— foreign currency translation adjustment, net of tax — — — — — ( 222 ) ( 222 )

Other comprehensive gain— foreign currency translation adjustment, net of tax — — — — — 5,593 5,593

Balance - December 31, 2025 15,996,907 $ 2 $ — $ 2,109,762 $ ( 2,076,238 ) $ 3,657 $ 37,183

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 consolidated financial statements.

2 unchanged sentences

For the Year Ended December 31, 2024

Convertible preferred stock Common Stock Notes Receivables from Stockholders Additional Paid-In

Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholders' (Deficit) Equity

(Amounts in thousands, except share and per share amounts) Shares Amount Issued and Outstanding 1

Common Stock Notes Receivables from Stockholders Additional Paid-In

Accumulated Deficit Accumulated Other Comprehensive Loss Total Stockholders' Equity (Deficit)

(Amounts in thousands, except share and per share amounts) Issued and Outstanding 1

Balance - December 31, 2023 15,035,467 $ 2 $ ( 10,111 ) $ 1,838,499 $ ( 1,704,076 ) $ ( 1,714 ) $ 122,600

Recapitalization of shares due to Business

Combination (Note 3) 4,471,866 — 4,034,101 1 — ( 1 ) — — —

Adjusted Balance as of December 31, 2022 6,646,295 436,280 5,995,668 1 ( 53,225 ) 618,120 ( 1,167,656 ) ( 1,423 ) ( 604,183 )

Conversion of convertible preferred stock to common stock ( 6,646,295 ) ( 436,280 ) 6,646,295 1 — 436,278 — — 436,279

Conversion of pre-closing bridge notes to common stock — — 2,100,000 — — 750,000 — 750,000

Issuance of common stock upon Business Combination close — — 200,090 — — 37,966 — — 37,966

Exercise of warrants — — 291,523 — — 4,289 — — 4,289

Transaction costs related to the Business Combination — — — — — ( 17,173 ) — — ( 17,173 )

Recognition of derivative liability related to earnout — — — — — ( 548 ) — — ( 548 )

Assumption of private & public placement warrants — — — — — ( 1,276 ) — — ( 1,276 )

Adjustment of transaction costs related to Business Combination — — — ( 2,372 ) — — ( 2,372 )

Issuance of common stock for options exercised 6,814 — — 1,560 — — 1,560

4 unchanged sentences

Vesting of common stock issued via notes receivable from stockholders — — ( 893 ) 885 — — ( 8 )

Forfeiture of shares — — ( 308,813 ) — 30,487 ( 30,485 ) — — 2

Forgiveness of officer loans — — — — 988 — — — 988

Shares transferred in settlement of loans — — ( 149,626 ) — 15,200 ( 15,199 ) — — 1

Settlement of notes receivable from stockholders — — 1,846 ( 1,846 ) — — —

Net loss — — — — ( 206,290 ) — ( 206,290 )

10 unchanged sentences

Net loss $ ( 165,872 ) $ ( 206,290 )

Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation of property and equipment 1,044 7,089

Impairments 16,405 9,435

Impairment charges, net 12,505 16,405

Amortization of internal use software and other intangible assets 13,025 26,138

1 unchanged sentence

Non-cash interest and amortization of debt issuance costs and discounts 1,700 6,208

Other non-cash adjustments — 988

Change in fair value of warrants ( 924 ) 507

Change in fair value of convertible preferred stock warrants — ( 266 )

Change in fair value of bifurcated derivative — 236,603

Change in fair value of warrants and equity related liabilities 69 ( 924 )

Stock-based compensation 20,432 26,753

(Recovery of)/Provision for loan repurchase reserve ( 9,923 ) ( 1,823 )

Recovery of loan repurchase reserve ( 821 ) ( 9,923 )

Provision for credit losses 584 1,667

Amortization/accretion of deferred fees and costs ( 1,709 ) —

Change in fair value of derivatives 673 ( 1,685 )

Change in fair value of loans held for investment attributable to hedged risk ( 1,946 ) —

Change in fair value of mortgage loans held for sale ( 7,357 ) ( 2,321 )

Loss on disposal of assets held for sale 692 —

Change in operating lease of right-of-use assets ( 3,291 ) ( 2,292 )

2 unchanged sentences

Change in operating assets and liabilities:

Operating lease liabilities ( 6,228 ) ( 10,810 )

Other receivables, net 2,295 ( 1,908 )

Prepaid expenses and other assets 9,492 16,859

Operating lease liabilities 548 ( 6,228 )

Accounts payable and accrued expenses 17,028 ( 21,084 )

4 unchanged sentences

Purchase of property and equipment ( 1,193 ) ( 3,388 )

Payment to dispose of assets held for sale ( 1,597 ) —

Proceeds from sale of property and equipment — 2,938

Capitalization of internal use software ( 10,036 ) ( 6,694 )

Acquisitions of businesses, net of cash acquired — ( 12,713 )

Maturities of short-term investments 446,726 183,309

4 unchanged sentences

Cash Flows from Financing Activities:

Issuance of convertible notes — 528,586

Principal payments on convertible notes ( 110,000 ) ( 1,103 )

Exercise of convertible preferred stock warrants — 1,460

Proceeds from Business Combination — 21,616

Proceeds from issuance of common stock — 16,351

Net borrowings/(repayments) on warehouse lines of credit 117,852 ( 17,831 )

Repayments on finance lease liabilities — ( 1,062 )

Net increase (decrease) in customer deposits 122,291 ( 534 )

Repayments on corporate line of credit — ( 146,449 )

Payment of debt issuance costs — ( 3,649 )

Transaction costs related to the Business Combination — ( 17,173 )

Proceeds from exercise of stock options 91 87

Principal payments on senior notes ( 1,606 ) —

Net borrowings on warehouse lines of credit 167,792 117,852

Net increase in customer deposits 628,854 122,291

Proceeds from issuance of common stock under at-the-market offering 29,221 —

Proceeds from issuance of common stock and exercise of stock options 75 91

Net cash provided by financing activities 714,336 239,131

Effects of currency translation on cash, cash equivalents, and restricted cash ( 7,502 ) ( 217 )

Net (Decrease) Increase in Cash, Cash Equivalents, and Restricted Cash, including cash classified within assets held for sale ( 284,867 ) 182,001

Net decrease in cash, cash equivalents, and restricted cash, including cash classified within assets held for sale ( 121,248 ) ( 284,867 )

net change in cash, cash equivalents and restricted cash classified within assets held for sale 2,346 ( 7,682 )

13 unchanged sentences

Interest paid $ 21,753 $ 13,822

Income taxes refunded, net $ ( 677 ) $ ( 8,451 )

Income taxes paid/(refunded) $ 1,707 $ ( 677 )

Non-Cash Investing and Financing Activities:

Assumption private placement and public warrants $ — $ 1,276

Convertible notes exchange $ 209,303 $ —

Reduction of lease liability via modification/termination $ — $ 20,894

Recognition of derivative liability related to earnout $ — $ 548

Capitalization of stock-based compensation related to internal use software $ 1,419 $ 1,781

1 unchanged sentence

Vesting of common stock issued via notes receivable from stockholders $ — $ 893

Acquisition earnout $ — $ 3,430

Forgiveness of notes receivable from stockholders $ — $ 46,700

Settlement of notes receivable from stockholders $ — $ 1,846

Reclasses to internal use software $ — $ 2,254

Termination of notes receivable from stockholders $ 9,158 $ —

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

2 unchanged sentences

Organization and Nature of the Business

Better Home & Finance Holding Company, formerly known as Aurora Acquisition Corp.

(“Aurora”), together with its subsidiaries (collectively, the “Company”), provides a comprehensive set of homeownership offerings in the United States while expanding in the United Kingdom.

Better Home & Finance Holding Company together with its subsidiaries (collectively, the “Company”), provides a comprehensive set of homeownership offerings in the United States and operates a banking platform in the United Kingdom.

The Company’s offerings include mortgage loans, real estate agent services, title and homeowner’s insurance, and other homeownership offerings.

3 unchanged sentences

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 expanded into the U.K.

and offers a multitude of financial products and services to consumers via regulated entities obtained through acquisitions.

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 as of October 27, 2021, November 9, 2021, November 30, 2021, August 26, 2022, February 24, 2023 and June 23, 2023 (as amended, the “Merger Agreement”), by and among 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,” and the “Company,” 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.

Class A common stock and warrants are listed on the Nasdaq Capital Market under the ticker symbols “BETR” and “BETRW.”

Within the fourth quarter of 2024, the Company decided to dispose of certain operating units in the U.K., see Note 12 for further details.

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 Capital Market (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.

The Company conducts banking operations in the United Kingdom through Birmingham Bank, a regulated U.K.

banking entity acquired in 2023.

In the fourth quarter of 2024, the Company decided to dispose of certain operating units in the U.K., see Note 10 for further details.

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.

The Company’s Class A common stock began trading on a split-adjusted basis on 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.

On September 3, 2024, the Company received a letter from Nasdaq notifying the Company that the Staff has determined that for the last 10 consecutive business days, from August 19, 2024, to August 30, 2024, the closing bid price of the Company’s common stock has been at $1.00 per share or greater, and accordingly, the Company has regained compliance with Listing Rule 5550(a)(2) and the matter is now closed.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Summary of Significant Accounting Policies

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

The Business Combination has been accounted for as a reverse recapitalization in accordance with U.S.

Under this method of accounting, Aurora was treated as the “acquired” company for financial reporting purposes.

Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Better issuing stock for the net assets of Aurora, accompanied by a recapitalization.

All share amounts in periods prior to the Business Combination have been retroactively adjusted using the Exchange Ratio for the equivalent number of shares outstanding immediately after the Business Combination to effect the reverse recapitalization.

Further, all periods prior to the Reverse Stock Split have been retroactively adjusted to reflect the Reverse Stock Split.

The financials of Better are presented here for all comparative periods.

Consolidation — The accompanying consolidated financial statements include the accounts of the Company and its consolidated subsidiaries.

3 unchanged sentences

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, determination of fair value of the stock options at grant date, the fair value of acquired intangible assets and goodwill, the provision for loan repurchase reserves, bifurcated derivatives, the incremental borrowing rate used in determining lease liabilities, and the fair value of warrant and equity related liabilities.

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.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Business Combinations — The Company includes the financial results of businesses that the Company acquires from the date of acquisition.

8 unchanged sentences

As of December 31, 2025 and 2024, the Company held $ 16.8 million, and $ 24.4 million, respectively, of restricted balances in accordance with the covenants of the agreements relating to its warehouse lines of credit (Note 4) and escrow funds (Note 15).

Included in assets held for sale on the consolidated balance sheets are $ 3.9 million of restricted cash, see Note 12 for further details.

Included in assets held for sale on the consolidated balance sheets as December 31, 2025 and 2024, are $ 4.3 million and $ 3.9 million, respectively, of restricted cash.

See Note 10 for further details.

Short-term investments — Short term investments consist of fixed income securities, typically U.S.

5 unchanged sentences

The Company has not recognized any impairments on these investments to date and any unrealized gains or losses on these investments are immaterial.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

16 unchanged sentences

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.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

12 unchanged sentences

See Note 16 for further analysis.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 hold for the foreseeable future or until maturity or payoff and are reported at amortized costs, 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.

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’s estimation of expected credit losses is based on relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amounts, including expected defaults and prepayments.

Management’s estimation of expected credit losses is to be incurred over the life of the loan, in accordance with Accounting Standards Codification (“ASC”) 326, Financial Instruments-Credit Losses , which requires an entity to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument.

Managements estimation utilizes a probability of default /loss given default (“PD/LGD”) methodology.

Under this approach, expected credit losses are calculated as the product of probability of default, loss given default, and exposure at default for each loan.

Management estimates expected credit losses on a collective basis for loans that share similar risk characteristics, which primarily consist of property buy-to-let loans originated through its U.K.

banking operations.

See Note 5 for additional details.

Other Receivables, Net — Other receivables, net consist primarily of amounts due from a third party loan sub-servicer, margin account balances with brokers, an integrated relationship partner, and servicing partners of loan purchasers.

Other receivables, net is net of the allowance for credit losses, in accordance with Accounting Standards Codification (“ASC”) 326, Financial Instruments-Credit Losses, which requires an entity to recognize an allowance that reflects the entity’s current estimate of credit losses expected to be incurred over the life of the financial instrument.

Other receivables, net is net of the allowance for credit losses, in accordance with ASC 326, Financial Instruments-Credit Losses .

Management’s estimate of credit losses and allowance is based on historical collection experience and a review of the current status of other receivables.

2 unchanged sentences

Derivatives and Hedging Activities — The Company enters into IRLCs to originate mortgage loans, at specified interest rates and within a specified period of time, with potential borrowers who have applied for a loan and meet certain credit and underwriting criteria.

These IRLCs are not designated as accounting hedging instruments and are reflected in the consolidated balance sheets as derivative assets or liabilities, at fair value, with changes in fair value are recorded in current period earnings.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

period earnings.

Unrealized gains and losses on the IRLCs are recorded as derivative assets or liabilities, at fair value, on the consolidated balance sheets and in gain on loans, net within the consolidated statements of operations and comprehensive loss.

4 unchanged sentences

Under the majority of the forward sales commitment contracts if the Company fails to deliver the agreed-upon mortgage loans by the specified date, the Company must pay a “pair-off” fee to compensate the loan purchaser.

The Company’s forward sale commitments are not designated as accounting hedging instruments and are reflected in the consolidated balance sheets as derivative assets or liabilities at fair value with changes in fair value are recorded in current period earnings.

Unrealized gains and losses from changes in fair value on forward sales commitments are recorded as derivative assets or liabilities, at fair value on the consolidated balance sheets and in gain on loans, net within the consolidated statements of operations and comprehensive loss.

1 unchanged sentence

The Company has evaluated agreements with counterparties and for those counterparties that meet the conditions, positions are presented net.

In order to manage interest rate risk on our Loans Held for Investment portfolio, we have entered into pay-fixed, receive-floating interest rate swap contracts to hedge against exposure to changes in the fair value of Loans Held for Investment resulting from changes in interest rates.

We designate these interest rate swap contracts as fair value hedges that qualify for hedge accounting under ASC 815, Derivatives and Hedging .

The changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings.

We assess hedge effectiveness under ASC 815, on a quarterly basis to ensure all hedges remain highly effective and hedge accounting under ASC 815 can be applied.

In conjunction with the assessment of effectiveness, we assess the hedged item to ensure it is expected to be outstanding at the hedged item’s assumed maturity date and the portfolio layer method of accounting under ASC 815 can be applied.

The portfolio layer method allows multiple hedged layers of a single closed portfolio.

Fair value basis adjustments in an existing portfolio layer method hedge are maintained at the closed portfolio level (Balance Sheet line item level) and are therefore not allocated to individual assets.

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

3 unchanged sentences

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 liability, it is assumed that the Company has access

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

to the market as of the measurement date.

In determining the principal market for an asset or liability, it is assumed that the Company has access to the market as of the measurement date.

If no market for the asset exists, or if the Company does not have access to the principal market, a hypothetical market is used.

4 unchanged sentences

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 include LHFS, derivative assets and liabilities, including IRLCs and forward sale commitments, and warrant and equity related liabilities.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Assets and liabilities measured at fair value on a recurring basis include LHFS, derivative assets and liabilities, including IRLCs, forward sale commitments, interest rate swaps and warrant and equity related liabilities.

When developing fair value measurements, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs.

9 unchanged sentences

Assets to be disposed of are reported at the lower of their carrying amount or the fair value of the asset, less costs to sell.

See Note 5 for details on the Company’s impairment losses included within other expenses/(income) on the consolidated statements of operations and comprehensive loss.

Goodwill — Goodwill represents the excess of the purchase price of an acquired business over the fair value of the assets acquired, less liabilities assumed in connection with the acquisition.

5 unchanged sentences

If the carrying amounts of a reporting unit including goodwill were to exceed the fair value of the reporting unit, an impairment loss is recognized within the consolidated statements of operations and comprehensive loss in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit.

Outside of the disposal groups held for sale, the Company currently has one reporting unit.

The Company currently has two reporting units.

For further details on goodwill impairment see Note 8 and Note 10.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Internal Use Software and Other Intangible Assets, Net — The Company reports and accounts for acquired intellectual properties included in other intangible asset with an indefinite life, such as domain name, under ASC 350 , Intangibles-Goodwill and Other (“ASC 350”).

8 unchanged sentences

Software maintenance costs are expensed as incurred.

For website development, costs incurred in the planning stage are expensed as incurred whereas costs associated with the application and infrastructure development, graphics development, and content development are capitalized depending on the type of cost in each of those respective stages.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

capitalized depending on the type of cost in each of those respective stages.

Internal use software and website development are amortized on a straight-line basis over its estimated useful life, generally three years.

2 unchanged sentences

If the sum of the expected future cash flows, on an undiscounted basis, is less than the carrying amount of the asset, an impairment loss equal to the excess of the carrying amount over the fair value of the asset is recognized.

See Note 5 for details on the Company’s impairment gains or losses included within other expenses/(income) expenses on the consolidated statements of operations and comprehensive loss.

Impairment of Indefinite-Lived Intangible Assets —In accordance with ASC 350-30-65 Goodwill and Other Intangible Assets , the Company assesses the impairment of indefinite-lived intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Impairment of Indefinite-Lived Intangible Assets —The Company assesses the impairment of indefinite-lived intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

Factors the Company considers important, which could trigger an impairment review include items such as significant underperformance compared to historical or projected future operating results and significant changes in the manner or use of the acquired assets or the strategy for the overall business.

When the Company determines that the carrying value of an intangible asset may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge.

See Note 5 for details on the Company’s impairment losses included within other expenses/(income) on the consolidated statements of operations and comprehensive loss.

Assets and Liabilities Held for Sale — Assets and liabilities to be disposed of by sale are reclassified into assets held for sale and liabilities held for sale on the consolidated balance sheets.

5 unchanged sentences

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

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

• 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.

9 unchanged sentences

Leases — The Company accounts for its leases in accordance with ASC 842, Leases (“ASC 842”).

The Company’s lease portfolio primarily consists of operating leases for a number of small offices across the country for licensing purposes as well as several larger offices for employee and Company headquarters.

The Company’s lease portfolio primarily consists of operating leases for a number of small offices across the country for licensing purposes

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

as well as several larger offices for employee and Company headquarters.

The Company also leases various types of equipment, such as laptops and printers.

15 unchanged sentences

The Company evaluates its right-of-use assets for impairment consistent with the impairments of long-lived assets policy disclosure described above.

Convertible Note— As part of the Closing of the Business Combination, the Company issued the Convertible Note to a related party.

Convertible Note — As part of the Closing of the Business Combination, the Company issued to SB Northstar LP, an affiliate of SoftBank Group Corp., a senior subordinated convertible note (the “Convertible Note”).

Upon initial issuance, the Convertible Note is 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.

Convertible Note proceeds are allocated between the carrying value of the note and the fair value of

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

embedded derivatives on the initial issuance date.

Convertible Note 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 Convertible Note 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 the consolidated statements of operations and comprehensive income (loss).

Embedded derivatives are adjusted to fair value at each reporting period, with the change in fair value included within interest expense on the consolidated statements of operations and comprehensive loss.

See Note 13 for further details on the Convertible Note.

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 loss.

See Note 13 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 ASC 470-60 - 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

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 are considered “substantial modifications”.

A substantial modification of terms is accounted for like an extinguishment.

Warrant Liabilities — The Company assumed publicly-traded warrants (“Public Warrants”) issued in Aurora’s initial public offering, private placement warrants issued by Aurora in connection with its formation and warrants attached to certain private placement units (collectively, the “Private Warrants” and, together with the Public Warrants, the “Warrants”).

6 unchanged sentences

Changes in the fair value of Warrants are included within other expenses/(income) in the consolidated statement of operations and comprehensive loss.

As of December 31, 2024 the balance of the Warrants was immaterial and is included in other liabilities on the consolidated balance sheets.

As of December 31, 2025 and 2024, the balance of the Warrants was $ 1.2 million and $ 1.3 million, respectively, and is included within Warrant and equity related liabilities on the consolidated balance sheets.

Sponsor Locked-Up Shares — The Sponsor Locked-Up Shares are accounted for as a derivative and are included within warrants and equity related liabilities on the consolidated balance sheets.

2 unchanged sentences

Changes in the fair value of Sponsor Locked-Up Shares are included within other expenses/(income) in the consolidated statement of operations and comprehensive loss.

As of December 31, 2024 the balance of the Sponsor Locked-Up Shares was immaterial and is included in other liabilities on the consolidated balance sheets.

As of December 31, 2025 and 2024, the balance of the Sponsor Locked-Up Shares was $ 0.3 million and $ 0.1 million, respectively, and is included in Warrant and equity related liabilities on the consolidated balance sheets.

Income Taxes — Income taxes are accounted for under the asset and liability method.

21 unchanged sentences

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 the Company as well as 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 the Company from the integrated partner.

Gain on sale of loans, net also includes the changes in fair value of IRLCs and forward sale commitments.

1 unchanged sentence

Fair value of forward sale commitments hedging IRLCs and LHFS are measured based on quoted prices for similar assets.

Integrated partnership fees —Includes fees that the Company receives for originating loans on behalf of an integrated partnership, which are recognized as revenue upon the integrated partner’s funding of the loan.

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

Loan repurchase reserve recovery/(provision) —In connection with the sale of loans 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 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.

1 unchanged sentence

The provision for loan repurchase reserve, represents the charge for these potential losses.

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 ASU 2014-09, Revenue from Contracts with Customers (“ASC 606”).

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 in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”).

ASC 606 outlines a single comprehensive model in accounting for revenue arising from contracts with customers.

9 unchanged sentences

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

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 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.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

transaction closes.

For international lending revenue, the Company generates revenue primarily from broker fees earned in the U.K.

The Company recognizes international lending revenue upon completion of the performance obligation, which is when the mortgage transaction closes.

The Company recognizes international lending revenue upon completion of the performance obligation, which is when the mortgage provider approves the mortgage.

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 Note.

Interest expense includes interest expense on warehouse lines of credit, interest expense on customer deposits, as well as interest expense on corporate debt.

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 taxes.

15 unchanged sentences

As such, the dividend yield has been estimated to be zero.

Forfeitures of stock options and RSUs are estimated at the time of grant and revised, as necessary, in subsequent periods if actual forfeitures differ from initial estimates.

The Company accounts for forfeitures of stock options and RSUs as they occur rather than estimating forfeitures at the time of grant.

The Company records compensation expense related to stock options issued to non-employees, including consultants based on the fair value of the stock options on the grant date over the service performance period as the stock options vest.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company previously allowed stock option holders to early exercise stock options prior to the vesting date.

The early exercise of stock options not yet vested are not reflected within stockholders’ equity or on the consolidated balance sheets as they relate to unvested share awards and therefore are considered non-substantive exercises.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

General and Administrative Expenses — General and administrative expenses include rent and occupancy expenses, insurance, and external legal, tax and accounting services.

3 unchanged sentences

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 through third-party financial service websites for which they incur “pay-per-click” expenses.

A majority of the Company’s marketing and advertising expenses are incurred from leads purchased from these third-party financial service websites.

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.

For mortgage loans held for sale that are accounted for at fair value, these costs 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.

8 unchanged sentences

For the years ended December 31, 2025 and 2024, the Company reported a net loss attributable to common stockholders.

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 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 consolidated statements of operations and comprehensive loss.

Segments — The Company’s chief operating decision maker (“CODM”), the Chief Executive Officer, manages the Company’s business activities across two operating and reportable segments.

Accordingly, the CODM uses segment net income (loss) from operations to allocate resources and assess performance.

The CODM reviews budget-to-actual variances for segment net income (loss) on a regular basis when making decisions about allocating resources to each segment.

Further, the CODM reviews and utilizes functional expenses at the segment level to manage the Company’s operations.

Other segment items included in net income are net interest income, depreciation and amortization, and income tax expense (benefit), which are reflected in the consolidated statements of operations and comprehensive loss.

Emerging Growth Company and Smaller Reporting Company Status — The Company is an emerging growth company (“EGC”), as defined in Section 2(a) of the Securities Act of 1933, as modified by the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”).

Section 102(b)(1) of the JOBS Act exempts EGCs from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

to comply with the new or revised financial accounting standards.

The JOBS Act provides that an EGC can elect to opt out of the extended transition period and comply with the requirements that apply to non-EGCs but any such election to opt out is irrevocable.

The Company has not elected to opt out of such extended transition period which means that when a financial accounting standard is issued or revised and it has different application dates for public or private companies, the Company, as an EGC, can adopt the new or revised standard at the time private companies adopt the new or revised standard.

The Company will be eligible to use this extended transition period under the JOBS Act until the earlier of the date it (i) is no longer an EGC or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act.

As a result, the Company’s financial statements may not be comparable to the financial statements of issuers who are required to comply with the effective dates for new or revised accounting standards that are applicable to public companies, which may make comparison of the Company’s financials to those of other public companies more difficult.

Management expects to cease to be an EGC on the last day of the Company’s fiscal year following March 8, 2026, which is the fifth anniversary of the date on which Aurora consummated its initial public offering.

Reclassification of Prior Period Presentation in the Consolidated Balance Sheet and Consolidated Statement of Operations and Comprehensive Loss —Reclassifications of the previously reported consolidated balance sheet and consolidated statement of operations and comprehensive loss have been made to conform to the current period’s presentation, which provides increased transparency to the nature of the costs.

To conform to the current presentation, the following changes were made to the prior year consolidated financial statements:

• Loans held for investment—Loans held for investment has been reclassified from prepaid expenses and other assets to loans held for investment on the consolidated balance sheets.

• Common Stock—Common Stock has been recast to reflect the 1-for-50 reverse stock split, see Note 1 Organization and Nature of the Business - Reverse Stock Split, for additional information.

• Additional paid-in-capital—Additional paid-in-capital has been recast to reflect the 1-for-50 reverse stock split, see Note 1 Organization and Nature of the Business - Reverse Stock Split, for additional information.

• Gain on loans, net (Previously mortgage platform revenue, net)—Loan repurchase reserve recovery (provision) has been reclassified from mortgage platform expenses to gain on loans, net.

The Company’s mortgage related activities that do not include originating and selling loans, namely in the U.K., have been reclassified from other platform revenue to other revenue.

• Net interest income:

• Interest income—Interest income from short-term investments has been reclassified from other income.

• Interest expense (Previously warehouse interest expense)—Interest expense and amortization on non-funding debt has been reclassified to interest expense from interest expense and amortization on non-funding debt.

• Loan origination expense (Previously mortgage platform expenses)—The Company’s expenses that were not incurred to originate and sell loans, namely in the U.K., have been reclassified to other expenses.

• Other expenses (Previously other platform expenses)—Restructuring and impairment expenses, change in fair value of convertible preferred stock warrants, and change in fair value of bifurcated derivative have been reclassified to other expenses.

Previously Allocated Expenses

• Compensation and benefits—Compensation and benefits, which includes stock-based compensation, was previously allocated to mortgage platform expenses, other platform expenses, general and administrative

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

expenses, marketing and advertising expenses, and technology and product development expenses based on allocated headcount is now presented as its own financial statement line item.

• Rent and occupancy—Rent and occupancy was previously allocated to mortgage platform expenses, other platform expenses, general and administrative expenses, marketing and advertising expenses, and technology and product development expenses based on allocated headcount, is now included within general and administrative expenses.

• Depreciation and amortization—Depreciation and amortization was previously allocated to mortgage platform expenses, other platform expenses, general and administrative expenses, marketing and advertising expenses, and technology and product development expenses based on allocated headcount is now presented as its own financial statement line item.

The impacts of the reclassifications on the consolidated statements of operations and comprehensive loss are as follows:

The Company will be eligible to use this extended transition period under the JOBS Act until the earlier of the

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in thousands) Year Ended December 31, 2023

Caption name change As previously reported Reclassifications As reclassified

Mortgage platform revenue, net Gain on loans, net $ 61,328 $ ( 2,532 ) $ 58,796

Cash offer program revenue 304 ( 304 ) —

Other platform revenue Other revenue 11,293 4,816 16,109

Net interest income

Interest income 15,575 13,456 29,031

Warehouse interest expense Interest expense ( 11,680 ) ( 19,916 ) ( 31,596 )

Net interest income 3,895 ( 6,460 ) ( 2,565 )

Total net revenues 76,820 ( 4,480 ) 72,340

Compensation and benefits — 181,735 181,735

Mortgage platform expenses Loan origination expense 84,083 ( 74,607 ) 9,476

Cash offer program expenses 397 ( 397 ) —

Other platform expenses Other expenses/(Income) 13,048 240,508 253,556

General and administrative expenses 147,214 ( 87,064 ) 60,150

Marketing and advertising expenses 22,080 ( 2,557 ) 19,523

Technology and product development expenses 83,815 ( 44,384 ) 39,431

Restructuring and impairment expenses 17,459 ( 17,459 ) —

Depreciation and amortization — 42,891 42,891

Total expenses 368,096 238,666 606,762

Interest and other income (expense), net

Other income (expense) 13,614 ( 13,614 ) —

Interest and amortization on non-funding debt ( 19,916 ) 19,916 —

Change in fair value of warrant liabilities ( 507 ) 507 —

Change in fair value of convertible preferred stock warrants 266 ( 266 ) —

Change in fair value of bifurcated derivative ( 236,603 ) 236,603 —

Total interest and other expense, net ( 243,146 ) 243,146 —

Loss before income tax (benefit) expense ( 534,422 ) — ( 534,422 )

Income tax (benefit) expense 1,998 — 1,998

Net loss $ ( 536,420 ) $ — $ ( 536,420 )

Reclassification of the Consolidated Statement of Cash Flows —To conform to the current presentation, borrowings on warehouse lines of credit and repayments of warehouse lines of credit on the consolidated statement of cash flows have been combined into net borrowings (repayments) on warehouse lines of credit within cash (used in)/provided by financing activities, as original maturities are short-term (90 days or less), as well as the breakout for gain on sale of loans, net from proceeds from sale of mortgage loans held for sale within cash used in operating activities.

date it (i) is no longer an EGC or (ii) affirmatively and irrevocably opts out of the extended transition period provided in the JOBS Act.

Recently Adopted Accounting Standards

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures .

This ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.

This ASU is effective for the annual fiscal year 2024, and interim periods starting in fiscal year 2025.

A public entity should apply the amendments in this ASU retrospectively to all prior periods

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

presented in the financial statements.

The Company adopted ASU 2023-07 effective January 1, 2024 using a retrospective method.

For further details, refer to the segments section in Note 2.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures , which provides qualitative and quantitative updates to the rate reconciliation and income taxes paid disclosures, among others, in order to enhance the transparency of income tax disclosures, including consistent categories and greater disaggregation of information in the rate reconciliation and disaggregation by jurisdiction of income taxes paid.

The Company adopted ASU 2023‑09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, as of January 1, 2025, prospectively.

The amendments enhance the transparency of income tax disclosures and did not have a material impact on the Company’s financial statements.

Recently Issued Accounting Standards Not Yet Adopted

In July 2023, the FASB issued ASU 2023-03, “ Presentation of Financial Statements (Topic 205), Income Statement—Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities from Equity (Topic 480), Equity (Topic 505), and Compensation—Stock Compensation (Topic 718):

Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No.

120, SEC Staff Announcement at the March 24, 2022 EITF Meeting, and Staff Accounting Bulletin Topic 6.B, Accounting Series Release 280—General Revision of Regulation S-X:

Income or Loss Applicable to Common Stock ” (“ASU 2023-03”).

This ASU amends or supersedes various SEC paragraphs within the applicable codification to conform to past SEC staff announcements.

This ASU does not provide any new guidance.

ASU 2023-03 will become effective for the Company once the addition to the FASB Codification is made available.

As of December 31, 2024, the Company does not expect ASU 2023-06 will have any impact on the consolidated financial statements.

In August 2023, the FASB issued ASU 2023-04, Liabilities (Topic 405):

Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No.

121 (“ASU 2023-04”).

This ASU amends and adds various SEC paragraphs to the FASB Codification to reflect guidance regarding the accounting for obligations to safeguard crypto assets an entity holds for platform users.

This ASU does not provide any new guidance.

ASU 2023-04 will become effective for the Company once the addition to the FASB Codification is made available.

As of December 31, 2024, the Company does not expect ASU 2023-04 will have any impact on the consolidated financial statements.

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements:

4 unchanged sentences

As of December 31, 2024, the Company does not expect ASU 2023-06 will have any impact on the consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740):

The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

The amendments should be applied prospectively;

however, retrospective application is also permitted.

As of December 31, 2024, the Company does not expect ASU 2023-09 will have a material impact on the consolidated financial statements.

In November 2024, the FASB issued 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.

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.

1 unchanged sentence

The Company is in the process of assessing the impact the adoption of this guidance will have on the Company’s financial statement disclosures.

Business Combination

The Business Combination has been accounted for as a reverse recapitalization in accordance with U.S.

Under this method of accounting, Aurora was treated as the “acquired” company for financial reporting purposes.

Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of Better issuing stock for the net assets of Aurora, accompanied by a recapitalization.

The net assets of Aurora were recorded at fair value (which approximated

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

historical cost considering the nature of the assets transferred), with no goodwill or other intangible assets recorded.

Financial statements and footnotes presented prior to the Business Combination represent the operations of Better.

At the Closing of and in connection with the Business Combination, the following occurred:

• Exchange of Pre-Business Combination Better Stock —Each outstanding share of Better common stock prior to the Business Combination (“Pre-Business Combination Better Stock”), each warrant to purchase preferred stock was exercised and all series of preferred stock were converted to common stock and exchanged for approximately 3.06 shares (the "Exchange Ratio") of the Company’s common stock.

Outstanding options to purchase Pre-Business Combination Better common stock and restricted stock units ("RSUs") were converted into the right to receive options or warrants to purchase shares of Class B common stock or RSUs representing the right to receive shares of Class B common stock, as applicable, on the same terms and conditions that are in effect with respect to such options or RSUs on the day of the closing of the Business Combination, subject to adjustments using the Exchange Ratio.

• Private and Public Warrants — 6,075,047 redeemable public warrants to acquire shares of Aurora (“Public Warrants”), together with 3,733,358 private warrants to acquire shares of Aurora (“Private Warrants” and, together with the Public Warrants, the “Warrants”), have converted into warrants to acquire shares of Class A common stock.

As contemplated by the Sponsor Agreement, dated as of May 10, 2021, by and among Aurora and Novator Capital Sponsor Ltd.

(“Sponsor”) (as amended, the “Sponsor Agreement”), Sponsor forfeited 1,715,014 Private Warrants, effective as of the Closing Date, which comprised 50 % of the Private Warrants held by Sponsor on May 10, 2021.

Each Warrant entitles the holder to purchase one share of the Company’s Class A common stock at an exercise price of $ 11.50 per share, subject to certain adjustments.

The Warrants became exercisable at any time commencing 30 days after the completion of the Business Combination (which for the avoidance of doubt was September 21, 2023), and will expire five years after the Business Combination or earlier upon redemption or liquidation.

Subsequent to the Reverse Stock Split, 50 Warrants would need to be exercised to purchase one share of Class A common stock.

• Sponsor Locked-Up Shares —Pursuant to the Sponsor Agreement, the Sponsor forfeited upon Closing 50 % of the Aurora private warrants and 20 % of the Sponsor’s shares of Class A common stock received in respect of Aurora class B ordinary shares as of the Closing became subject to transfer restrictions, contingent upon the price of Class A common stock exceeding certain thresholds (the “Sponsor Locked-Up Shares”).

The Sponsor Locked-Up Shares will be released in three tranches if the volume weighted average price (the “VWAP”) of Class A common stock exceeds certain price thresholds:

(i) one-third of such shares will be released if VWAP for any 20 trading days during any consecutive 30 -trading day period exceeds $ 625.00 per share, (ii) one-third of such shares will be released if the VWAP for any 20 trading days during any consecutive 30 -trading day period exceeds $ 750.00 per share, and (iii) one-third of such shares will be released if the VWAP for any 20 trading days during any consecutive 30 -trading day period exceeds $ 875.00 per share (adjusted by the Reverse Stock Split).

In addition to the transfer restriction, upon certain change in control events included in the Sponsor Agreement, if there is a change in control event within five years following the Closing, the shares which have not reached the thresholds stated above will be forfeited.

If after five years there is no such change in control event, the lock-up period will go on in perpetuity until the price thresholds are met.

• Aurora Trust Account —The Company received gross cash consideration of $ 21.4 million as a result of the Business Combination as well as $ 0.2 million from Aurora’s operating cash account.

• Convertible Note —The Company received $ 528.6 million from SoftBank Group Corp (“SB Northstar”) as a result of issuing notes, see Note 15 for further details.

• Sponsor Share Purchase —The purchase for $ 17.0 million by the Sponsor of 1.7 million shares of Class A common stock.

• Conversion of Convertible Preferred Stock and Exercise of Convertible Preferred Stock Warrants —See Note 22 for further details.

• Conversion or Exchange of Pre-Closing Bridge Notes —See Note 15 for further details.

In September 2025, the FASB issued ASU 2025-06, Intangibles — Goodwill and Other — Internal-Use Softwar e (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.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

• Transaction or Exchange costs —The Company incurred $ 17.2 million of equity issuance costs, consisting of financial advisory, legal, share registration, and other professional fees, which are recorded to additional paid-in capital as a reduction of transaction proceeds.

The number of shares of common stock issued immediately following the Business Combination was as follows:

Number of Shares (2)

Class A Class B Class C

Pre-Business Combination Better Stockholders 812,037 11,488,148 137,546

Legacy Aurora Public Shareholders 4,252 — —

Legacy Aurora Non-public Shareholders (Sponsor and affiliates of Aurora) (1)

Pre-Closing Bridge Note Investors

800,000 — 1,300,000

Sponsor Share Purchase Investors 34,000 — —

1,812,127 11,488,148 1,437,546

(1) Excludes 13,888 Sponsor Locked-Up Shares.

(2) Amounts have been adjusted for the Reverse Stock Split

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

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.

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 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.

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

Gain on loans, net consisted of the following :

2 unchanged sentences

Gain on sale of loans, net $ 128,209 $ 59,242

Integrated partnership fees 8,933 10,295

Loan repurchase reserve recovery/(provision) 9,923 1,823

Broker revenue 7,118 8,933

Loan repurchase reserve recovery 821 9,923

Total gain on loans, net $ 136,148 $ 78,098

7 unchanged sentences

Total other revenue $ 11,299 $ 12,888

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Net interest income consisted of the following:

1 unchanged sentence

(Amounts in thousands) 2025 2024

Interest income

Mortgage interest income $ 28,759 $ 19,839

Interest income on loans held for investment 20,791 2,258

Interest income from investments 10,719 16,893

Total interest income 60,269 38,990

Interest expense

Warehouse interest expense ( 20,134 ) ( 11,258 )

Interest expense on customer deposits ( 20,996 ) ( 2,508 )

Other interest expense (1)

Total net interest income/(loss) $ 17,502 $ ( 2,565 )

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Restructuring and Impairments

In December 2021, the Company initiated an operational restructuring program that included plans for cost reductions in response to a difficult interest rate environment as well as a slowing housing market.

The restructuring program, which continued during the year ended December 31, 2024, consists of reductions in headcount and any associated costs that primarily include reduction in real estate footprint expenses and one-time employee termination benefits.

Although restructuring initiatives have formally concluded as of December 31, 2024, the Company will continue to assess its cost structure and make adjustments as necessary.

Due to reduced headcount, the Company has also reduced its real estate footprint.

In September 2024, the Company entered into a lease amendment with a landlord to reassign the lease to a third party and release the Company of all rights and obligations under the original lease.

The amendment was accounted for as a lease modification (the “Lease Modification”) which reduced the term of the lease from June 30, 2030 to November 1, 2024.

Upon entering into the Lease Modification, the Company made the remaining lease payments of $ 7.3 million and incurred initial direct costs of $ 1.1 million.

As part of the Lease Modification, the Company reduced the right-of-use asset by $ 12.4 million and removed the lease liability of $ 20.8 million.

Total lease costs were expensed over the amended lease term and are included within general and administrative expenses within the consolidated statements of operations and comprehensive loss.

The corresponding leasehold improvements were depreciated over the amended lease term by $ 3.7 million and is included within depreciation and amortization expenses within the consolidated statements of operations and comprehensive loss.

During the fourth quarter of 2024, management classified several U.K.

entities as held for sale.

The Company recorded goodwill impairment of $ 7.3 million and a write down of the disposal group to fair value, less cost to sell, of $ 4.2 million, and is included within other expense/(income) within the consolidated statements of operations and comprehensive loss.

See Note 10 and Note 12, respectively, for further details.

For the years ended December 31, 2024 and 2023, the Company impaired property and equipment of $ 4.8 million and $ 7.9 million, respectively, which was related to termination of lease agreement and disposal of laptops resulting from a reduction in the workforce, and are included within other expense/(income) within the consolidated statements of operations and comprehensive loss.

For the years ended December 31, 2024 and 2023, the Company’s restructuring and impairment expenses consist of the following:

Year Ended December 31, 2024

(Amounts in thousands) 2024 2023

Employee one-time termination benefits (1)

Impairments of Right-of-Use assets (2)

Real estate restructuring loss (2)

Impairment of assets held for sale (2)

Impairment of goodwill and intangible assets (2)

Impairment of property and equipment (2)

Other restructuring gains (2)

( 1,714 ) ( 7,722 )

Total Restructuring and Impairments $ 17,659 $ 17,459

(1) Employee one-time termination benefits are included in compensation and benefits on the consolidated statements of operations and comprehensive loss.

(2) Impairments of Right-of-Use Assets, real estate restructuring loss, impairments of assets held for sale, impairments of goodwill and intangible assets, impairment of property and equipment, and other restructuring gains are included in other expense/(income) on the consolidated statements of operations and comprehensive loss.

The cumulative amount of one-time termination benefits, impairment of loan commitment asset (during fiscal year 2022), impairment of right-of-use assets, and impairment of property and equipment as of December 31, 2024 is $ 123.6 million, $ 105.6 million, $ 8.5 million, and $ 16.8 million, respectively.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Total interest expense ( 42,844 ) ( 21,488 )

Total net interest income $ 17,425 $ 17,502

__________________

(1) Primarily consists of interest on Convertible Notes, see Note 13 for more details.

Mortgage Loans Held for Sale and Warehouse Lines of Credit

2 unchanged sentences

Funding Facility 1 (1)

September 30, 2025 $ 100,000 $ 60,747 61,709

May 13, 2025 $ — $ — $ 60,747

Funding Facility 2 (2)

1 unchanged sentence

Funding Facility 3 (3)

August 1, 2025 175,000 108,851 24,421

June 30, 2026 175,000 117,499 108,851

Funding Facility 4 (4)

April 5, 2026 250,000 212,940 —

Total warehouse lines of credit $ 575,000 $ 411,862 $ 244,070

1 unchanged sentence

(1) Interest charged under the facility is at the 30-day term SOFR plus 2.125 %.

Cash collateral deposit of $ 15.0 million is maintained and included in restricted cash.

During the second quarter of 2025, Funding Facility 1 was terminated prior to maturity.

(2) Interest charged under the facility is at the 30-day term SOFR plus 2.10 %- 2.25 %.

2 unchanged sentences

(3) Interest charged under the facility is at the 30-day term SOFR plus 1.75 % - 3.75 %.

A compensating balance of $ 15.0 million is maintained and included in 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 December 31, 2025, the Company was in compliance with this requirement.

Subsequent to December 31, 2025, the Company extended the maturity to January 21, 2027.

(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 December 31, 2025.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The unpaid principal amounts of the Company’s LHFS are also pledged as collateral under the relevant warehouse funding facilities.

4 unchanged sentences

Funding Facility 3 129,515 123,081

Funding Facility 4 226,822 —

Total LHFS pledged as collateral 445,820 267,984

6 unchanged sentences

This is defined as the average days between funding and sale for loans funded during each period.

As of December 31, 2024 and 2023, the the unpaid principal balance of loans that were either 90 days past due or non-performing was $ 1.4 million and an immaterial amount, respectively.

As of December 31, 2025 and 2024, the unpaid principal balance of loans that were either 90 days past due or non-performing was $ 2.4 million and $ 1.4 million, respectively.

As of December 31, 2025 and 2024, the weighted average annualized interest rate for the warehouse lines of credit was 6.08 % and 6.44 %, respectively.

The warehouse lines of credit contain certain restrictive covenants that require the Company to maintain certain minimum net worth, liquid assets, current ratios, liquidity ratios, leverage ratios, and earnings.

In addition, these warehouse lines also require the Company to maintain compensating cash balances which aggregated to $ 18.8 million as of December 31, 2024 and 2023 and are included in restricted cash on the accompanying consolidated balance sheets.

The Company was in compliance with all financial covenants under the warehouse lines as of December 31, 2024 and 2023, respectively.

In addition, these warehouse lines also require the Company to maintain compensating cash balances.

As of December 31, 2025, the Company maintained $ 3.8 million of cash collateral deposits included in restricted cash and $ 15.0 million of compensating balances included in cash and cash equivalents on the accompanying consolidated balance sheets.

As of December 31, 2024, the Company maintained $ 18.8 million of cash collateral deposits included in restricted cash.

The Company was in compliance with all financial covenants under the warehouse lines as of December 31, 2025 and 2024.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

6 unchanged sentences

Other 544 1,514

Deferred fees, net ( 13,713 ) —

Fair value hedge basis adjustment 1,946 —

Allowance for credit losses ( 2,251 ) ( 1,667 )

Total Loans Held for Investment, net $ 723,333 $ 111,477

Accrued interest receivable on loans receivable totaled $ 0.4 million and an immaterial amount, respectively, as of December 31, 2024 and December 31, 2023 and is included in other receivables, net on the consolidated balance sheets.

Accrued interest receivable on loans receivable totaled $ 1.0 million and $ 0.4 million, respectively, as of December 31, 2025 and December 31, 2024 and is included in other receivables, net on the 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.

5 unchanged sentences

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 both December 31, 2024 and December 31, 2023, there were no loans held for investment past due.

As of December 31, 2025 there was an immaterial number of loans held for investment past due.

Substantially all past-due loans were less than 30 days past due.

As of December 31, 2024, there were no 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 December 31, 2024 and December 31, 2023, there were no loans secured by any asset type for which formal foreclosure proceedings are in process.

As of December 31, 2025, there was one loan with a total unpaid balance of $ 2.5 million in which formal foreclosure proceedings were in process.

As of December 31, 2024, there were no loans secured by any asset type for 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.

2 unchanged sentences

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 December 31, 2024 and December 31, 2023, there were no loans that were placed on non-accrual status.

As of December 31, 2025 and 2024, there were no loans that were placed on non-accrual status.

During the years ended December 31, 2025 and 2024, there were no modifications for loans to borrowers experiencing financial difficulty.

1 unchanged sentence

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

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

automobile loans).

This analysis is performed at least on a quarterly basis.

5 unchanged sentences

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:

December 31, 2025

30 unchanged sentences

Furniture and equipment 1,496 1,580

Land and buildings — 3,030

Leasehold improvements 2,594 2,509

3 unchanged sentences

Total depreciation expense on property and equipment for the years ended December 31, 2025 and 2024 was $ 1.0 million and $ 7.1 million, respectively.

Included in depreciation expense was $ 3.7 million of accelerated depreciation due to a lease modification for the year ended December 31, 2024, for further information see Note 5.

Included in depreciation expense was $ 3.7 million of accelerated depreciation due to a lease modification for the year ended December 31, 2024.

An impairment of $ 0.2 million and $ 4.8 million was recognized for the years ended December 31, 2025 and 2024, respectively, related to computers and hardware and is included within other expense/(income) within the consolidated statements of operations and comprehensive loss.

13 unchanged sentences

Total operating lease cost $ 5,173 $ 10,321

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The components of finance lease costs were as follows:

Year Ended December 31, 2023

(Amounts in thousands) Depreciation and Amortization Interest Expense Total

Total finance lease cost $ 135 $ 39 $ 174

Supplemental cash flow and non-cash information related to leases were as follows:

4 unchanged sentences

Operating lease right-of-use assets recognized $ 4,996 $ 1,261

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Supplemental balance sheet information related to leases was as follows:

6 unchanged sentences

(Amounts in thousands) Operating Leases

2030 and beyond 147

Total lease payments 5,526

1 unchanged sentence

Total lease liabilities $ 4,629

Subsequent to December 31, 2024 the Company entered into a lease agreement to lease real estate offices space until 2030 with total future lease payments of $ 5.1 million.

Goodwill and Internal Use Software and Other Intangible Assets, Net

2 unchanged sentences

(Amounts in thousands) 2025 2024

Balance at beginning of period $ 32,390 $ 17,388

Goodwill acquired—Goodholm & Birmingham — 14,041

Balance at beginning of year $ 23,615 $ 32,390

Goodwill impairment ( 14,000 ) ( 7,266 )

1 unchanged sentence

Effect of foreign currency exchange rate changes 1,380 ( 397 )

Balance at end of period $ 23,615 $ 32,390

During the fourth quarter of 2024, the Company recorded goodwill impairment charges of $ 7.3 million which is included within other expense/(income) in the consolidated statements of operations and comprehensive loss.

Balance at end of year $ 10,995 $ 23,615

For the years ended December 31, 2025 and 2024, the Company recorded goodwill impairment charges of $ 14.0 million and $ 7.3 million, respectively, which are included within other expense/(income) in the consolidated statements of operations and comprehensive loss.

During the fourth quarter of 2025, management identified a triggering event requiring an interim goodwill impairment assessment.

The Company determined that the estimated fair value of Birmingham Bank was less than its carrying value and, as a result, recorded a goodwill impairment charge of $ 13.5 million during the year ended December 31, 2025.

The remaining impairment of $ 0.5 million recorded in 2025 relates to entities in the U.K.

for which management has classified as held for sale, and the $ 7.3 million impairment recorded in 2024 similarly relates to those held-for-sale U.K.

entities, see Note 10.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

impairment is related to entities in the U.K.

for which management has classified as held for sale, see Note 12.

No impairment of goodwill was recognized for the year ended December 31, 2023.

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

22 unchanged sentences

Amortization expense totaled $ 13.0 million and $ 26.1 million during the years ended December 31, 2025 and 2024, respectively.

For the years ended December 31, 2024 and 2023, none and $ 2.3 million impairment were recognized relating to other intangible assets (see Note 5).

For the years ended December 31, 2025 and 2024, no impairments were recognized relating to other intangible assets.

Amortization expense related to intangible assets as of December 31, 2025 is expected to be as follows:

(Amounts in thousands) Total

2025 $ 10,685

2030 and thereafter 366

9 unchanged sentences

Security deposits 8,803 11,245

Prefunded loans in escrow 352 —

Total prepaid expenses and other assets $ 27,892 $ 33,894

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

Assets and Liabilities Held for Sale

1 unchanged sentence

which are being actively marketed, are available for sale in their current respective conditions, and management expects to complete the respective sales within one year and all criteria included in Note 2 have been met.

The Company recorded a write down of the disposal group to fair value, less cost to sell, in the amount of 4.2 million which is included in other expenses/(income) on the consolidated statements of operations and comprehensive loss.

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

(Amounts in thousands) As of December 31, 2024

(Amounts in thousands) December 31, 2025 December 31, 2024

Cash and cash equivalents $ 710 $ 3,814

12 unchanged sentences

Total liabilities held for sale $ 4,802 $ 6,116

For the years ended December 31, 2025 and 2024, the Company recorded a write up of $ 2.1 million and a write down of $ 4.2 million, respectively, to adjust the disposal group of its fair value less cost to sell.

These amounts are included in other expense (income) in the consolidated statements of operations and comprehensive loss.

For year ended December 31, 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 consolidated statements of operations and comprehensive loss.

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.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 consolidated statements of operations and comprehensive loss.

Customer Deposits

8 unchanged sentences

Total Deposits $ 494,324 3.56 % $ 58,660 3.00 %

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents maturities of customer deposits:

23 unchanged sentences

Total other liabilities

Corporate Line of Credit, Pre-Closing Bridge Notes and Convertible Notes

Corporate Line of Credit —The Company made the final principal payment on its corporate line of credit in August 2023 and as such incurred no interest expense under the corporate line of credit during the year ended December 31, 2024.

For the year ended December 31, 2023, the Company recorded a total of $ 17.5 million related to interest expense as follows:

$ 11.5 million in interest expense related to the line of credit and $ 6.0 million in interest expense related to the amortization of deferred debt issuance costs and discount and other debt servicing fees which is included in interest and amortization on non-funding debt expense within the consolidated statements of operations and comprehensive loss.

Pre-Closing Bridge Notes — In connection with the Closing of the Business Combination, the Pre-Closing Bridge Notes held by SB Northstar in an aggregate principal amount of $ 650.0 million automatically converted into Class C common stock at a conversion price of $ 500.00 per share, adjusted by the 1-for-50 reverse stock split, (and the Pre-Closing Bridge Notes held by the Sponsor in an aggregate principal amount of $ 100.0 million were exchanged for 0.8 million shares of Class A common stock.

For the year ended December 31, 2023, the Company recorded a loss of $ 236.6 million of changes in fair value of embedded derivatives included in other expenses/(income), within the consolidated statements of operations and comprehensive loss.

Convertible Note— In connection with the Closing of the Business Combination, the Company issued to SB Northstar LP, a related party, a Cayman Islands exempted limited partnership, and an affiliate of SoftBank Group Corp., a senior subordinated convertible note in the aggregate principal amount of $ 528.6 million (the “Convertible Note”), $ 550.0 million less approximately $ 21.4 million released to the Company at the Closing from Aurora’s trust account, pursuant to an Indenture, dated as of August 22, 2023 (the “Indenture”).

The Convertible Note bears 1 % interest per annum and matures on August 22, 2028, unless earlier converted or redeemed.

Per the Indenture, the Company may elect to pay all or any portion of interest in kind by issuing to the holder of such note an additional note or in cash.

The counter parties to the Convertible Note and Merger Agreement are related parties.

The Convertible Note is convertible, at the option of SB Northstar, into shares of the Company’s Class A common stock, with an initial conversion rate per $1,000 principal amount of Convertible Note equal to (a) $1,000 divided by (b) a dollar amount equal to 115 % of the First Anniversary VWAP (as defined in the Indenture), subject to adjustments as described therein.

The Indenture provides that the First Anniversary VWAP may be no less than $ 400.00 and no greater than $ 600.00 , adjusted by the 1-for-50 reverse stock split, subject to adjustments as described therein.

The Convertible Note may be redeemed at the option of the Company at a redemption price of 115 % of par plus accrued interest in cash, at any time on or before the 30 th trading day prior to the maturity date of the Convertible Note if the last reported sale price of the Class A common stock has been at least 130 % of the conversion price then in effect for at least 20 trading days during the 30 trading day period ending on, and including, the trading day immediately preceding the date of notice of optional redemption.

The Convertible Note is redeemable prior to maturity in the event of a fundamental change under the Indenture, such as the removal of the Company’s Class A common stock from the Nasdaq.

In this event, the Company would be required to redeem the Convertible Note for an amount in cash equal to the principal balance plus accrued and unpaid interest on the redemption date.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2024 and 2023, the carrying amount of the Convertible Note was $ 519.7 million and $ 514.6 million on the consolidated balance sheets, respectively.

Convertible Note (Prior to exchange) — As of December 31, 2025 and 2024, the carrying amount of the Convertible Note was none and $ 519.7 million on the consolidated balance sheets, respectively.

For the years ended December 31, 2025 and 2024, the Company recorded a total of $ 1.7 million and $ 7.6 million, respectively, of interest expense related to the Convertible Note.

1 unchanged sentence

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.

For the period February 16, 2024 to December 31, 2024, the Company has elected to pay interest in kind on the Convertible Note, which is calculated at 1 % per annum and accrued at the fair value of the additional note issued.

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 “Convertible 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 did 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 Convertible Notes and the Investor forfeited any accrued and unpaid interest in respect of the Convertible 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.

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 $ 11.1 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 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 —In connection with the Exchange, the Company entered into an indenture (the “Senior Notes Indenture”) with GLAS Trust Company LLC, as trustee and notes collateral agent.

As of December 31, 2025 and 2024, the carrying amount of the Senior Notes was $ 198.8 million and none , respectively.

In July 2025, the Company made a cash

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

payment of $ 1.6 million which consisted of interest from April 28, 2025 through June 30, 2025.

As a result of the accounting treatment discussed above, this payment was applied to reduce the principal on the Senior Notes.

For the period July 1, 2025 through December 31, 2025, t he 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 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 are 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.

Related Party Transactions

2 unchanged sentences

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, and 1/0 Real Estate.

In September 2021, the Company and TheNumber entered into a technology integration and license agreement.

4 unchanged sentences

In connection with these agreements, the Company paid expenses of $ 0.9 million and $ 1.0 million for the years ended December 31, 2025 and 2024 respectively, which are included within general and administrative expenses on the consolidated statements of operations and comprehensive loss.

The Company included a payable of $ 56 thousand, within accounts payable and accrued expenses on the consolidated balance sheets, and $ 230 thousand, within other liabilities on the consolidated balance sheets, as of December 31, 2024 and 2023, respectively.

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 interest.

The Company included a payable of $ 0.1 million and $ 0.1 million as of December 31, 2025 and 2024, respectively, within accounts payable and accrued expenses on the 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, the Company’s Chief Executive Officer, and 1/0 Real Estate (an entity affiliated with Vishal Garg), collectively hold a

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

2 unchanged sentences

As of December 31, 2025 and 2024, the Company had $ 2.5 million and $ 4.2 million of unsecured home improvement loans purchased from Notable, which are included within mortgage loans held for sale, at fair value on the consolidated balance sheets.

Notable will continue to provide servicing for the loans purchased from Notable that remain on the Company’s balance sheet.

During the years ended December 31, 2024 and 2023, the Company had purchases of loans from Notable of none and $ 0.2 million, respectively.

For the year ended December 31, 2024, the Company incurred $ 64.5 thousand of expenses for amortization of internal use software under the agreement, which are included within depreciation and amortization on the consolidated statements of operations and comprehensive loss.

For the year December 31, 2023, the Company incurred $ 43.2 thousand of expenses under the agreement, which are included within marketing and advertising expenses, and depreciation and amortization on the consolidated statements of operations and comprehensive loss.

As the Company has ceased offering products and services with Notable, the Company has impaired $ 0.2 million of capitalized internal use software which is included within other expense/(income) within the consolidated statements of operations and comprehensive loss.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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 the years ended December 31, 2024 and 2023, the Company incurred expenses of $ 120.4 thousand and $ 165.9 thousand, respectively, in relation to these services, which are included in general and administrative expenses on the consolidated statements of operations and comprehensive loss.

The Company included a payable of $ 18.2 thousand, within accounts payable and accrued expenses on the consolidated balance sheets, and $ 159.7 thousand, within other liabilities on the consolidated balance sheets as of December 31, 2024 and 2023, respectively.

Notable will continue to provide servicing for the loans purchased from Notable that remain on the Company’s 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 Company’s Chief Executive Officer, which provide services to the Company varying from data analytics to information technology support services.

For the years ended December 31, 2025 and 2024, the Company recorded an immaterial amount and $ 0.1 million, respectively, in relation to these services, which are included in general and administrative expenses on the consolidated statements of operations and comprehensive loss.

The Company included a payable of an immaterial amount for both the years ended December 31, 2025 and 2024, within accounts payable and accrued expenses on the consolidated balance sheets.

RSU Grants for Consulting Services— In November 2025, the Company granted restricted stock units (“RSUs”), which vest only upon the satisfaction of certain performance- and time-based vesting conditions, to Prabhu Narasimhan and Harit Talwar, members of the Company’s Board of Directors, in consideration for consulting services provided to the Company.

The consulting services were provided outside of, and in addition to, their duties as members of the Board of Directors.

The RSU grants were approved by the Audit Committee of the Board of Directors and were not issued as compensation for board membership.

The consulting services provided by Messrs.

Talwar and Narasimhan relate to strategic advisory and other operational initiatives of the Company.

Management believes the services provided by Messrs.

Talwar and Narasimhan are beneficial to the Company’s commercial and strategic objectives.

In connection with these RSU grants, the Company recognized share-based compensation expense of $ 0.7 million for the year ended December 31, 2025, which is included within compensation and benefits on the consolidated statements of operations and comprehensive loss.

Note Exchange Agreement —See Note 13, for further details on the Exchange with SB Northstar LP, a related party of the Company.

Commitments and Contingencies

3 unchanged sentences

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 initially brought forth during the third quarter of 2020.

The Company is currently a party to pending legal claims and proceedings regarding employee related labor disputes initiated in the third quarter of 2020.

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.

1 unchanged sentence

As part of the disputes and other similar types of legal matters, the Company included an estimated liability of $ 6.7 million and $ 8.3 million as of December 31, 2025 and 2024, respectively, which is included in accounts payable and accrued expenses on the consolidated balance sheets.

During the year ended December 31, 2024, the changes in the liability included settlements of $ 0.5 million as well as additional accruals of $ 0.4 million related to certain other employment matters, which were included within general and administrative expense on the consolidated statement of operations and comprehensive loss.

There were no changes in the estimated liability for the year ended December 31, 2023.

In June 2022, Sarah Pierce, Pre-Business Combination Better’s former Head of Sales and Operations, filed litigation against Pre-Business Combination Better, Mr.

Garg, and Nicholas Calamari, our Chief Administrative Officer and Senior Counsel.

In September 2023, Ms.

Pierce voluntarily dismissed her claims against the Company and Messrs.

Garg and Calamari with prejudice and withdrawn her appeal of a separate judgment obtained by the Company against her.

Impacts of the settlement were not material to the Company and are included within the consolidated statements of stockholder’s equity.

During the year ended December 31, 2025, the changes in the liability included settlements of $ 1.4 million as well as a reduction in accruals of $ 0.2 million related to certain other employment matters, which were included within general and administrative expense on the consolidated statement of operations and comprehensive loss.

During the year ended December 31, 2024, the changes in liability included settlements

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

of $ 0.5 million as well as additional accruals of $ 0.4 million related to certain other employment matters, which were 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.

1 unchanged sentence

As of December 31, 2025 and 2024, the Company included an estimated liability of $ 5.1 million and $ 6.6 million, respectively, within accounts payable and accrued expenses on the consolidated balance sheets.

For the year ended December 31, 2024, the Company recorded additional accruals for these potential TRID defects of $ 0.3 million which is included within loan origination expense in the consolidated statement of operations and comprehensive loss.

For the year ended December 31, 2025, the Company recorded a reduction in the accruals for these potential TRID defects of $ 0.7 million which is included within loan origination expense in the consolidated statement of operations and comprehensive loss.

During the year ended December 31, 2025, the Company had relief of the liability due to payments to customers in the amount of $ 0.8 million.

For the year ended December 31, 2023, the Company reduced the estimated liability for these potential TRID defects in the amount of $ 3.3 million and is included within loan origination expense in the consolidated statement of operations and comprehensive loss.

For the year ended December 31, 2024, the Company recorded additional accruals for these potential TRID defects in the amount of $ 0.3 million and is included within loan origination expense in the consolidated statement of operations and comprehensive loss.

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.

1 unchanged sentence

The Company is continuing to remediate TRID tolerance defects as necessary.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During the year ended December 31, 2024, the Company had relief of the liability due to payments to customers in the amount of $ 2.3 million.

Loan Commitments —The Company enters into IRLCs to fund mortgage loans, at specified interest rates and within a specified period of time, with potential borrowers who have applied for a loan and meet certain credit and underwriting criteria.

6 unchanged sentences

Significant loan purchasers are those which represent more than 10% of the Company’s loan volume.

During the year ended December 31, 2024, the Company had three loan purchasers that accounted for 37 %, 26 %, and 19 % of loans sold by the Company.

During the year ended December 31, 2023, the Company had one loan purchaser that accounted for 66 % of loans sold by the Company.

During the year ended December 31, 2025, the Company had two loan purchasers that accounted for 35 % and 13 % of loans sold by the Company.

During the year ended December 31, 2024, the Company had three loan purchasers that accounted for 37 %, 26 %, and 19 %, respectively, 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 December 31, 2024, the Company had originated 10% of its LHFS secured by properties in California.

As of December 31, 2023, the Company originated 12 % and 11 %, of its LHFS secured by properties in Florida and Texas, respectively.

As of December 31, 2025 and 2024, the Company had originated 12 % and 10 %, respectively, of its LHFS secured by properties in California.

The Company maintains cash and cash equivalent balances at various financial institutions.

5 unchanged sentences

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 December 31, 2024 and 2023 was $ 0.1 million and $ 3.4 million, respectively, and are included within escrow payable and other customer accounts on the consolidated balance sheets.

The balance in

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

these accounts as of December 31, 2025 and 2024 was $ 0.2 million and $ 0.1 million, respectively, and are included within escrow payable and other customer accounts on the consolidated balance sheets.

Risks and Uncertainties

9 unchanged sentences

Through this program, mortgage-backed securities are purchased and sold forward.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For all counterparties with open positions as of December 31, 2025, in the event that the Company does not deliver into the forward-delivery commitments, they can be settled on a net basis.

2 unchanged sentences

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.

Credit Risk —The Company’s mortgage pipeline hedging activities, which include forward sales of mortgage-backed securities and commitments to sell loans, are not designated as hedging instruments for accounting purposes under ASC 815 and are recorded at fair value through earnings.

These activities are designed to economically offset interest rate risk associated with mortgage loans held for sale and interest rate lock commitments.

Separately, the Company designates certain interest rate swaps as fair value hedges under ASC 815 to manage interest rate risk associated with loans held for investment.

The Company’s derivative transactions contain an element of counterparty credit risk because counterparties 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 of default.

The Company’s exposure in the event of counterparty default is generally limited to the difference between the contract value and the current market value of the instrument.

The Company mitigates this risk by transacting with well-established financial institutions that 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.

To the extent that the loans performance does not comply with such representations, the Company may be required to repurchase the loans or indemnify these loan purchasers for losses.

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 loans performance 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 $ 11.9 million ( 47 loans) and $ 9.9 million ( 30 loans) in unpaid principal balance of loans during the years ended December 31, 2025 and 2024, respectively related to its loan repurchase obligations.

The Company’s loan repurchase reserve is included within other liabilities on the consolidated balance sheets.

The (recovery of)/provision for the loan repurchase reserve is included within gain on loans, net on the consolidated statements of operations and comprehensive loss.

The recovery of

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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:

8 unchanged sentences

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.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Net Loss Per Share

6 unchanged sentences

Weighted average common shares outstanding 15,358,433 15,111,701

15,111,701 9,233,683

Weighted-average effect of dilutive securities:

Assumed exercise of stock options — —

Assumed exercise of Public & Private Warrants — —

Diluted weighted-average common shares outstanding 15,358,433 15,111,701

2 unchanged sentences

Diluted $ ( 10.80 ) $ ( 13.65 )

Year ended December 31, 2023 has 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.

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.

1 unchanged sentence

The Company's potentially dilutive securities, which include stock options, 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:

The Company excluded the following securities, presented based on amounts outstanding

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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:

Year Ended December 31,

7 unchanged sentences

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

(2) Year ended December 31, 2023 has 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.

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

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair Value Measurements

7 unchanged sentences

$ — $ 466,681 $ 4,210 $ 470,891

Derivative liabilities, at fair value (1) —included within other liabilities

Derivative liabilities, at fair value (1)

$ — $ 2,181 $ 250 $ 2,431

17 unchanged sentences

__________________

(1) As of December 31, 2025, derivative assets represent IRLCs, and liabilities represent forward sale commitments, IRLCs and interest rate swaps.

As of December 31, 2024, derivative assets represent forward sale commitments and IRLCs, and liabilities represent IRLCs.

As of December 31, 2023, derivative assets represent IRLCs, and liabilities represent both IRLCs and forward sale commitments.

(2) Fair value is based on the intrinsic value of the Company’s underlying stock price at each balance sheet date and includes certain assumptions with regard to volatility.

3 unchanged sentences

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.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Derivative Assets and Liabilities— The Company uses derivatives to manage various financial risks.

9 unchanged sentences

The Company attempts to match the maturity date of the IRLCs with the forward commitments.

Derivatives are presented in the consolidated balance

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

sheets under derivative assets, at fair value and other liabilities, at fair value.

Derivatives are presented in the consolidated balance sheets under derivative assets, at fair value and derivative liabilities, at fair value.

During the year ended December 31, 2025, the Company recognized $ 2.8 million of gains and $ 6.2 million of losses related to changes in the fair value of IRLCs and forward sale commitments, respectively.

During the year ended December 31, 2024, the Company recognized $ 0.5 million of losses and $ 5.2 million of gains related to changes in the fair value of IRLCs and forward sale commitments, respectively.

During the year ended December 31, 2023, the Company recognized $ 3.2 million of gains and $ 7.2 million of gains 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 consolidated statements of operations and comprehensive loss.

Unrealized activity related to changes in the fair value of forward sale commitments were $ 5.7 million of gains and $ 4.7 million of losses, included in the $ 5.2 million of gains and $ 7.2 million of gains, during the years ended December 31, 2024 and 2023, respectively.

The notional and fair value of derivative financial instruments not designated as hedging instruments were as follows:

Unrealized activity related to changes in the fair value of forward sale commitments were $ 2.5 million of losses and $ 5.7 million of gains, included in the $ 6.2 million of losses and $ 5.2 million of gains, during the years ended December 31, 2025 and 2024, respectively.

In order to manage interest rate risk on our Loans Held for Investment portfolio, we entered into pay-fixed, receive-floating interest rate swap contracts to hedge against exposure to changes in the fair value of Loans Held for Investment resulting from changes in interest rates.

The interest rate swaps are carried at fair value on a recurring basis and the fair value is estimated using market observable inputs such as interest rate yield curves and discount rates.

We also consider counter-party credit risk in valuing our derivatives.

During the year ended December 31, 2025, the Company recognized $ 0.2 million of losses related to changes in the fair value of interest rate swaps.

The notional and fair value of derivative financial instruments were as follows:

(Amounts in thousands) Notional Value Derivative Asset Derivative Liability

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

Balance as of December 31, 2024

Derivatives not designated as hedging instruments:

IRLCs $ 129,900 $ 1,308 $ 86

1 unchanged sentence

Total $ 2,539 $ 86

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Derivatives Designated as Hedging Instruments— The Company designates these interest rate swap contracts as fair value hedges that qualify for hedge accounting under ASC 815, Derivatives and Hedging .

We elected to account for the fair value hedges using the portfolio layer method in accordance with ASU 2022-01.

We record the interest rate swaps in the line item "Derivative liabilities, at fair value" on our 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 income.

During the year ended December 31, 2025, the Company recognized $ 0.1 million in interest income on the fair value hedge interest rate swaps.

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.

("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").

The Public Warrants trade on the Nasdaq Capital Market under the ticker symbol “BETRW” and as such is considered a Level 1 input from an active market to derive the value.

(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 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.

As of December 31, 2024 and 2023, Level 3 instruments include IRLCs, bifurcated derivative, and convertible preferred stock warrants.

As of December 31, 2025 and 2024, Level 3 instruments include IRLCs.

The following table presents the rollforward of Level 3 IRLCs:

4 unchanged sentences

Balance at end of period $ 3,960 $ 1,222

The following table presents the rollforward of Level 3 bifurcated derivative:

Year Ended December 31,

(Amounts in thousands) 2024 2023

Balance at beginning of year

$ — $ 236,603

Change in fair value of bifurcated derivative — ( 236,603 )

Balance at end of year

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table presents the rollforward of Level 3 convertible preferred stock warrants:

Year Ended December 31,

(Amounts in thousands) 2024 2023

Balance at beginning of year

Issuances — —

Exercises — ( 2,829 )

Change in fair value of convertible preferred stock warrants — ( 266 )

Balance at end of year

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.

4 unchanged sentences

December 31, 2025:

$ 1,249 $ ( 18 ) $ 1,231

December 31, 2024 $ 1,249 $ ( 18 ) $ 1,231

2 unchanged sentences

December 31, 2025:

$ 46 $ ( 600 ) $ ( 554 )

December 31, 2024 $ — $ — $ —

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

12 unchanged sentences

The use of market assumptions or estimation methodologies could have a material effect on the estimated fair value amounts.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

4 unchanged sentences

Loans held for investment Level 3 $ 725,584 $ 745,367 $ 113,144 $ 113,348

Convertible Note Level 3 $ 519,749 $ 371,160 $ 514,644 $ 309,135

In determining the fair value of the Convertible Note 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, Convertible Note, and loans held for investment are classified as Level 3 inputs within the fair value hierarchy.

Convertible Notes Level 3 $ — $ — $ 519,749 $ 371,160

Senior Notes Level 3 $ 198,802 $ 135,916 $ — $ —

In determining the fair value of the Convertible Notes, 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 Convertible Notes, Senior Notes and loans held for investment are classified as Level 3 inputs within the fair value hierarchy.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company adopted ASU 2023‑09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, as of January 1, 2025, prospectively.

The amendments enhance the transparency of income tax disclosures and did not have a material impact on the Company’s financial statements.

The Company is subject to US (federal, state and local) and foreign income taxes.

20 unchanged sentences

Income Tax Expense (Benefit) $ 53 $ 850

Total income tax provision does not reflect the tax effects of items that are included in APIC, which include a tax expense of $ 741 thousand in 2025.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

1 unchanged sentence

The following table displays the difference between the U.S.

federal statutory corporate tax rate and the effective tax rate.

Year Ended December 31,

federal statutory corporate tax rate and the effective tax rate, prepared under the updated guidance:

December 31, 2025

Amount Percentage

Federal Statutory Tax Rate $ ( 34,822 ) 21.00 %

State and local Income Taxes, net of Federal Income Tax Effect — — %

Foreign Tax Effects

United Kingdom

Changes in Valuation Allowances 6,391 - 3.85 %

Other 428 - 0.26 %

Other foreign jurisdictions 49 - 0.03 %

Research and Development tax credits ( 2,792 ) 1.68 %

Change in Valuation Allowances 27,134 - 16.36 %

Nontaxable or nondeductible items

162(m) - executive compensation 2,454 - 1.48 %

Other 1,094 - 0.66 %

Changes in Unrecognized tax benefits 117 - 0.07 %

Effective Tax Rate $ 53 - 0.03 %

The difference between the U.S.

Federal statutory tax rate and the effective tax rate relates primarily to the change in valuation allowance.

The following table displays the difference between the U.S.

federal statutory corporate tax rate and the effective tax rate, prepared under the prior guidance:

December 31, 2024

US federal statutory corporate tax rate 21.00 %

8 unchanged sentences

Effective Tax Rate - 0.41 %

The difference between the U.S.

Federal statutory tax rate and the effective tax rate relates to permanent differences between book and taxable income with respect to reporting for income tax purposes and the change in valuation allowance.

The permanent differences will not be reversed in the future.

These amounts were predominantly comprised of changes in valuation allowance, state and local taxes, and stock option expense.

Deferred Income Tax Assets and Liabilities

2 unchanged sentences

It is more likely than not that the deferred income tax assets will not be realized.

As of December 31, 2024 and 2023, the Company had a 100 % valuation allowance on its domestic deferred tax assets.

As of December 31, 2025 and 2024, the Company had a 100 % valuation allowance

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

on its domestic deferred tax assets.

The Company’s framework for assessing the recoverability of deferred income tax assets requires it to weigh all available evidence, to the extent it exists, including:

1 unchanged sentence

• the cumulative net income or losses in the consolidated statements of operations and comprehensive income in recent years

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table displays deferred income tax assets and deferred income tax liabilities:

7 unchanged sentences

Accruals 84 174

Deferred revenue — 22

Internal use software — 12,221

5 unchanged sentences

Depreciation ( 3,525 ) ( 939 )

Internal use software ( 3,705 ) —

Total Deferred Income Tax Liabilities ( 18,770 ) ( 11,588 )

3 unchanged sentences

As of December 31, 2025 and 2024 the Company had federal net operating loss (“NOL”) carryforwards of approximately $ 1,276 million and $ 1,285 million, respectively, and state NOL carryforwards of $ 1,014 million and $ 1,017 million, respectively, which are available to offset future taxable income.

As of December 31, 2024 and 2023 the Company had foreign (U.K.) NOL carryforwards of approximately $ 189 million and $ 155 million, respectively, which are available to offset future taxable income.

federal and state NOLs as of December 31, 2024 will begin to expire in 2035.

As of December 31, 2025 and 2024 the Company had foreign (U.K.) NOL carryforwards of approximately $ 106 million and $ 189 million, respectively, which are available to offset future taxable income and do not expire.

Certain state NOLs as of December 31, 2025 will begin to expire in 2035.

Utilization of the NOL carryforwards for purposes of federal income tax is subject to an annual limitation pursuant to Internal Revenue Code Section 382 (“Section 382”) due to ownership changes that have occurred.

2 unchanged sentences

As of December 31, 2025, the Company's deferred income tax asset relating to the Company's NOL carryforwards will be subject to an annual limitation pursuant to Section 382, thereby limiting the amount of NOL utilization each year.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The income tax paid, net of refunds received for the year ended December 31, 2025 is as follows:

Year Ended December 31,

(Amounts in thousands) 2025

federal $ 2,315

state and local

California 1,357

Colorado ( 797 )

Georgia ( 870 )

Indiana ( 110 )

Total Income Tax Paid (net of refunds received) $ 1,707

A reconciliation of the beginning and ending balances of gross unrecognized tax benefits is as follows:

9 unchanged sentences

Unrecognized tax benefits - December 31 $ 1,401 $ 1,353

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

During 2024, the gross unrecognized tax benefits did not change, however $ 121.5 thousand of interest and penalties were accrued on the $ 1.35 million unrecognized tax benefit balance as of December 31, 2023.

As of December 31, 2025 and 2024, there were $ 1.4 million and $ 1.35 million of unrecognized tax benefits that if recognized would affect the annual effective tax rate.

During 2025, the gross unrecognized tax benefits increased by $ 48 thousand and $ 117 thousand of interest and penalties were accrued on the $ 1.4 million unrecognized tax benefit balance.

Included in the balance of unrecognized tax benefits of $ 1.4 million as of December 31, 2025, are tax benefits that if recognized, will affect the effective tax rate.

The Company does not expect a material change in uncertain tax positions in the next 12 months.

The Company files a consolidated federal income tax return, foreign income tax returns and various state consolidated or combined income tax returns.

The Company’s major tax jurisdictions are U.S.

federal, New York State, New York City, California, and India.

The Company generally remains subject to examination for Federal income tax returns for the years 2021 and forward, state income tax returns for the years 2020 and forward, and foreign income tax return for the years 2020 and forward.

federal, New York State, New York City, California, and New Jersey.

The Company is generally no longer subject to U.S.

federal income tax examination for any year prior to 2021, to state or local income tax examinations for any year prior to 2021, or to foreign examinations for any year prior to 2021 for India and for any year prior to 2024 for U.K.

Nonetheless, NOLs generated in prior years are subject to examination and potential adjustment by the taxing authorities upon their utilization in subsequent years’ tax returns.

The Pillar Two rules are intended to ensure that large multinational enterprise ("MNE") groups pay a minimum level of tax on the income arising in each of the jurisdictions in which they operate.

2 unchanged sentences

• “[A]n Income Inclusion Rule (IIR), which imposes top-up tax on a parent entity in respect of the low taxed income of a constituent entity.”

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

• “[A]n Undertaxed Payment Rule (UTPR), which denies deductions or requires an equivalent adjustment to the extent the low tax income of a constituent entity is not subject to tax under an IIR.”

Management believes that the Company does not meet the requirements of a MNE and therefore the Pillar Two rules would not have a material future financial effect on the Company.

Convertible Preferred Stock

In connection with the Business Combination, as described in Note 3, all series of Better convertible preferred stock were converted into Better common stock and subsequently converted to the Company’s common stock at the Exchange Ratio of approximately 3.06 .

Convertible Preferred Stock Warrants— Immediately prior to the Closing of the Business Combination, certain convertible preferred stock warrant holders exercised their warrants on a cash basis and the remaining convertible preferred stock warrant holders exercised their warrants on a net basis at the Closing.

The change in fair value of convertible preferred stock warrants for the years ended December 31, 2024 and 2023 was none and a gain of $ 0.3 million, respectively,and was recorded in other expenses within the consolidated statements of operations and comprehensive loss.

On July 4, 2025, “An Act to provide for reconciliation pursuant to title II of H.

14,” commonly referred to as “One Big Beautiful Bill Act” (the “Act”) was signed into law.

The centerpiece of the Act is the extension of expiring, and in some cases expired, provisions of the 2017 Tax Cuts and Jobs Act (2017 TCJA).

The Act adjusted a number of provisions affecting businesses that were set to sunset, phase-out, or phase-in that would have taken effect in the absence of action by Congress, or that had already taken effect.

There were no material consequences to the Company as a result of this legislation.

Segment Reporting

The Company's reportable segments are strategic business units that offer different products and services.

They are managed separately because each business requires different management expertise, technology, and marketing strategies.

During the fourth quarter of 2025, the Company completed its periodic assessment of operating segments and identified the following operating segments:

• Home Finance – this segment provides home ownership services such as purchase mortgages, refinance mortgages, and home equity lines of credit and closed-end second lien loans for home purchase and refinance, including cash-out refinance and debt consolidation as well as mortgage related product offerings such as real estate services and insurance services, which includes title insurance.

The products, services and customers are similar;

and the platform and operations at the consolidated level provide the foundation for delivering home ownership products and services.

• Banking – this segment provides a range of financial products and services to consumers and small businesses through Birmingham Bank.

The Company acquired Birmingham Bank, a U.K.

based regulated bank, in April 2023.

Each of the above segments reports to the Company’s CODM for segment reporting purposes.

The prior year period presented was recast to reflect the impact of the preceding segment reclassification.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The tables below disclose the Company’s revenues and significant expenses by segment (in thousands):

Year Ended December 31, 2025

Home Finance Banking Consolidated

Gain on loans, net $ 136,148 $ — $ 136,148

Other revenue 11,101 198 11,299

Net interest income

Interest income 31,860 28,409 60,269

Interest expense ( 21,847 ) ( 20,997 ) ( 42,844 )

Net interest income/(loss) 10,013 7,412 17,425

Total net revenues 157,262 7,610 164,872

Compensation and benefits 161,503 12,723 174,226

General and administrative 41,602 3,721 45,323

Technology 25,772 2,102 27,874

Marketing and advertising 38,293 63 38,356

Loan origination expense 14,499 — 14,499

Depreciation and amortization 13,250 819 14,069

Other expenses/(income) 2,246 14,098 16,344

Income tax expense (benefit) 525 ( 472 ) 53

Net loss $ ( 140,428 ) $ ( 25,444 ) $ ( 165,872 )

Total Assets $ 640,556 $ 864,878 $ 1,505,434

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31, 2024

Home Finance Banking Consolidated

Gain on loans, net $ 78,098 $ — $ 78,098

Other revenue 12,318 570 12,888

Net interest income

Interest income 33,537 5,453 38,990

Interest expense ( 18,927 ) ( 2,561 ) ( 21,488 )

Net interest income/(loss) 14,610 2,892 17,502

Total net revenues 105,026 3,462 108,488

Compensation and benefits 131,103 9,986 141,089

General and administrative 48,359 3,871 52,230

Technology 23,459 2,651 26,110

Marketing and advertising 33,982 2 33,984

Loan origination expense 9,864 — 9,864

Depreciation and amortization 32,752 475 33,227

Other expenses/(income) 15,389 2,035 17,424

Income tax expense (benefit) 981 ( 131 ) 850

Net loss $ ( 190,863 ) $ ( 15,427 ) $ ( 206,290 )

Total Assets $ 712,159 $ 200,898 $ 913,057

The tables below represents the Company’s revenues by geographic location (in thousands):

Year Ended December 31,

United States $ 138,828 $ 86,652

International 26,044 21,836

Total net revenues $ 164,872 $ 108,488

Revenues are attributed to geographic locations based on the location in which the Company’s products and services are delivered to customers.

The United States was the only country to contribute revenues in excess of 10% of consolidated revenues.

All transactions between reportable segments are eliminated in consolidation.

Stockholders' Equity

On the Closing Date, the Company consummated the Business Combination pursuant to the terms of the Merger Agreement and on August 24, 2023, the Company’s Class A common stock began trading and Public Warrants continued trading 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, Class B, or Class C common stock, as applicable.

The Company’s Class A common stock and Public Warrants currently trade on Nasdaq, under the ticker symbols “BETR” and “BETRW”, respectively.

The Company’s authorized capital stock consists of 36.0 million shares of Class A common stock, 14.0 million shares of Class B common stock, and 16.0 million shares of Class C common stock, each with a par value per share of $ 0.0001 .

Each holder of Class A common stock has the right to one vote per share and each holder of Class B common stock has the right to three votes per share.

Except as described below or otherwise provided by the Company’s certificate of incorporation or required by applicable law, shares of Class C common stock are non-voting and will not entitle the holder thereof to any voting power.

Shares of Class A common stock, Class B common stock and Class C common stock are treated equally, identically and ratably, on a per share basis, with respect to any dividends or distributions as may be declared and paid from time to time.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

approved in advance by the affirmative vote of the holders of a majority of the then-outstanding shares of Class A common stock, Class B common stock and Class C common stock, each voting separately as a class.

thereof to any voting power.

Upon the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary, holders of Class A common stock, Class B common stock and Class C common stock will be entitled to receive ratably all assets of the Company available for distribution to its stockholders unless disparate or different treatment of the shares of each such class with respect to distributions upon any such liquidation, dissolution or winding up is approved in advance by the affirmative vote of the holders of a majority of the then-outstanding shares of Class A common stock, Class B common stock and Class C common stock, each voting separately as a class.

Further, each share of Class B common stock is convertible into one fully paid and nonassessable share of Class A common stock or Class C common stock at the option of the holder thereof at any time upon written notice to the Company.

11 unchanged sentences

(Amounts in thousands, except share amounts) Shares

Shares Issued and

outstanding 1

Authorized Shares Issued and

outstanding Par

Common A Stock 36,000,000 9,193,901 $ 2

2 unchanged sentences

Total common stock 66,000,000 15,168,795 $ 2

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.

Private and Public Warrants— As of December 31, 2025 and 2024, the Company had a total of $ 1.2 million and $ 1.3 million, respectively, of Private Warrants held by a related party, and Public Warrants, which are included as warrant and equity related liabilities, at fair value, within the consolidated balance sheets.

The change in fair value of Warrants for the year ended December 31, 2024 and 2023, was a loss of $ 0.6 million and a loss of $ 0.7 million, respectively, and is included in other expenses/(income) within the consolidated statements of operations and comprehensive loss.

The change in fair value of Warrants for the year ended December 31, 2025 and 2024, was a gain of $ 0.2 million and a loss of $ 0.6 million, respectively, and is included in other expenses/(income) within the consolidated statements of operations and comprehensive loss.

Sponsor Locked-Up Shares— As of December 31, 2025 and 2024, the Company had a total of $ 0.3 million and $ 0.1 million, respectively, in respect of Sponsor Locked-up Share liabilities which were issued to a related party, and are included within warrant and equity liabilities, at fair value, in the consolidated balance sheets.

The change in fair value of Sponsor Locked-Up Shares for the years ended December 31, 2024 and 2023, was a loss of $ 0.3 million and $ 0.2 million, respectively, and is included in other expenses/(income) within the consolidated statements of operations and comprehensive loss.

The change in fair value of Sponsor Locked-Up Shares for the years ended December 31, 2025 and 2024, was a loss of $ 0.2 million and a loss of $ 0.3 million, respectively, and is included in other expenses/(income) within the consolidated statements of operations and comprehensive loss.

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.

As of December 31, 2024 and 2023, the Company had a total of $ 16.0 million and $ 18.3 million, respectively, of outstanding promissory notes.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Of the notes outstanding as of December 31, 2024 and 2023, $ 9.2 million and $ 10.1 million, respectively, were issued for the exercise of stock options vested and are recorded as a component of stockholders’ equity within the consolidated balance sheets.

The balance as of December 31, 2024 and 2023 does not include any promissory notes due from directors and officers of the Company.

Of the notes outstanding as of December 31, 2024 and 2023, $ 6.8 million and $ 8.2 million, respectively, were issued for the early exercise of stock options not yet vested.

Notes issued for the early exercise of stock options not yet vested are not reflected within stockholders’ equity on the consolidated balance sheets as they relate to unvested share awards and therefore are considered non-substantive 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 notes receivable from stockholders.

The notes range in maturity from May 2025 to January 2026 and include interest rates ranging from 0.5 % to 2.5 % per annum.

The Company does not expect repayment of the promissory notes and as such has entered into agreements with certain employees to forgive the promissory notes in exchange for the shares held by the respective employee.

As the Company does not expect repayment and is seeking to forgive the promissory notes in exchange for the underlying shares, the promissory notes were derecognized against additional paid-in capital on the consolidated balance sheets.

The Company recorded a loss of $ 0.4 million for interest receivable on the promissory notes that is included within other expenses on the consolidated statements of operations and comprehensive loss.

As of December 31, 2025 and 2024, none and $ 9.2 million, respectively, of promissory notes were recorded as a component of stockholders’ equity within the consolidated balance sheets.

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 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.

During the year ended December 31, 2025, the Company sold 547,260 shares of Class A common stock under the ATM Program for total gross proceeds of $ 29.8 million.

The Company incurred commissions and other offering expenses of $ 0.6 million.

As of December 31, 2025, approximately $ 45.2 million remained available for issuance under the ATM Program.

Subsequent to December 31, 2025 and through January 9, 2026, the Company sold 328,030 shares of Class A common stock under the ATM Program for total gross proceeds of $ 11.9 million and net proceeds of approximately $ 11.7 million, after deducting aggregate commissions and offering expenses of approximately $ 0.2 million.

As of January 9, 2026, approximately $ 33.3 million remained available for issuance under the ATM Program.

Stock-Based Compensation

5 unchanged sentences

In connection with the Business Combination each holder of Better HoldCo options and RSUs received an equivalent award adjusted based on the Exchange Ratio that vests in accordance with the original terms of the award.

In connection with the Business Combination, the Better Home & Finance’s 2023 Equity Incentive Plan (the “2023 Plan”) was adopted and approved by the Company's board of directors on August 22, 2023.

In connection with the Business Combination, the Better Home & Finance’s 2023 Incentive Equity Plan (the “2023 Plan”) was adopted and approved by the Company's board of directors on August 22, 2023.

The 2023 Plan allows for the issuance of stock options, stock appreciation rights, restricted stock awards, RSUs and other equity and equity-based awards for issuance to Better Home & Finance’s service providers.

A total of 1,772,533 shares of Class A common stock were initially reserved for issuance pursuant to the 2023 Plan (the “Initial Share Reserve”).

The Initial Share Reserve will automatically increase on January 1 of each year beginning January 1, 2024 and ending in 2033, in an amount equal to the lesser of (i) five percent ( 5 %) of the shares of Class A common stock outstanding on the last day of the immediately preceding fiscal year and (ii) such smaller number of shares of Class A common stock as is determined by the Board or committee of the Board;

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

preceding fiscal year and (ii) such smaller number of shares of Class A common stock as is determined by the Board or committee of the Board;

provided, however, that no more than 12,286,879 shares of Class A common stock may be issued upon the exercise of incentive stock options.

On December 7, 2023, the Board determined there would be no such automatic increase to the Initial Share Reserve on January 1, 2024.

However, pursuant to the automatic increase provision under the 2023 Plan, the share reserve increased by 303,376 shares during the year ended December 31, 2025.

As of December 31, 2025, 1,956,375 awards have been granted under the 2023 Plan.

6 unchanged sentences

As of December 31, 2025, no shares have been issued under the ESPP.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company no longer allows for the early exercise of awards under the 2016 Plan, 2017 Plan, or the 2023 Plan.

17 unchanged sentences

The total intrinsic value of stock options exercised during the years ended December 31, 2025 and 2024 was $ 0.07 million, and $ 0.09 million, respectively.

The weighted average grant-date fair value per share of stock options granted during the years ended December 31, 2024 and 2023 was none , as no options were granted, and $ 34.00 , respectively.

The weighted average grant-date fair value per share of stock options granted during both the years ended December 31, 2025 and 2024 was none , as no options were granted.

The total grant date fair value of options vested for the years ended December 31, 2025 and 2024 was $ 9.4 million and $ 10.5 million, respectively.

The Company previously allowed stock option holders to early exercise in exchange for cash prior to the vesting date.

Shares of common stock issued upon early exercise are considered shares restricted until the completion of the original vesting period of the options and are therefore classified to stock options exercised, not vested on the consolidated balance sheets within other liabilities based upon the respective exercise price of the stock option and are not remeasured.

Upon the completion of the vesting period, the Company reclassifies the liability to additional paid in capital on the consolidated balance sheets.

Included within other liabilities on the consolidated balance sheets as of December 31, 2024 and 2023 was an immaterial amount and $ 1.5 million, respectively, of stock options exercised, not vested, which represents 365 and 1,739,740 , respectively, of restricted shares.

Fair Value of Awards Granted —Prior to the Close of the Business Combination, as Pre-Business Combination Better’s Common O Stock was not publicly traded, the fair value of the shares of Common O Stock was approved by the Better’s Board of Directors as there was no public market for the Better’s common stock as of the date of the awards were granted, which subsequently converted to Class A common stock upon completion of the Business Combination.

In estimating the fair value of the Better’s Common O Stock, management used the assistance of third-party valuation specialist and consider factors management believes are material to the valuation process, including, but not limited to, the price at which equity was issued by Better to independent third parties or transacted between third parties, actual and projected financial results, risks, prospects, and economic and market conditions, among other factors.

Management believes the combination of these factors provides an appropriate estimate of the expected fair value and reflects the best estimate of the fair value of the Pre-Business Combination Better’s Common O Stock at each grant date.

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The expected volatility was based on the historical and implied volatility of similar companies whose stock or option prices are publicly available, after considering the industry, stage of life cycle, size, market capitalization, and financial leverage of the other companies.

The risk-free interest rate assumption was based on observed U.S.

Treasury yield curve interest rates in effect at the time of grant appropriate for the expected term of the stock options granted.

As permitted under authoritative guidance, due to the limited amount of stock option exercises, Better used the simplified method to compute the expected term for stock options granted to employees in the years ended December 31, 2024 and 2023, respectively.

Awards issued under the 2023 Plan used the fair value of the Company’s Class A common stock as traded on the public market to derive the fair value of the respective award.

The Company estimated the fair value of stock options on the date of grant using the Black-Scholes option-pricing model.

The Black-Scholes option-pricing model requires estimates of highly subjective assumptions, which affect the fair value of each stock option.

The assumptions used to estimate the fair value of stock options granted are as follows:

Year Ended December 31,

(Amounts in dollars, except percentages) Range Weighted Average

Fair value of Better's Common O Stock1 $ 22.30 - $ 55.8

Expected volatility 76.50 % - 77.40 %

Expected term (years) 5.0 - 6.1

Risk-free interest rate 3.60 % - 4.20 %

Periods has 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.

Restricted Stock Units —RSUs generally vest over four years upon satisfaction of service-based conditions.

3 unchanged sentences

Unvested—December 31, 2024 329,096 $ 49.13

229,530 $ 124.49

RSUs granted 732,356 $ 18.57

568,973 $ 23.39

RSUs vested (1)

2 unchanged sentences

Unvested—December 31, 2025 541,848 $ 24.01

__________________

(1) Included in vested RSUs are 12,618 shares that have vested but for which issuance has been deferred at the election of the participant.

For the period ended December 31, 2025, the Company recorded a total stock‑based compensation expense of $ 15.2 million related to RSUs awarded to employees and non-employees directors.

As of December 31, 2025, total stock-based compensation cost not yet recognized related to unvested RSUs was $ 10.7 million, which is expected to be recognized over a weighted-average period of 2.24 years.

The following is a summary of the Performance and Market-Based RSU activity during the period ended December 31, 2025:

(Amounts in thousands, except shares and averages) Number of

Shares Weighted Average Grant Date Fair Value

Unvested—December 31, 2024 (1)

158,870 $ 22.41

RSUs Granted (2)

1,224,019 $ 69.10

Unvested—December 31, 2025 1,382,889 $ 63.73

__________________

(1) Included in the Unvested balance as of December 31, 2024 are 158,870 Performance Stock Units grant ("PSU").

During the year ended December 31, 2022 the Company’s Board of Directors (the “Board”) approved the Performance Stock Units grant ("PSU") of 49,516 PSUs to an executive employee.

The PSUs will be eligible to vest upon the satisfaction of specified market-based conditions tied to the price of the Company's publicly traded shares at three distinct price threshold levels.

The PSUs are also subject to the risk of forfeiture until vested by virtue of continued employment or service to the Company through November 1, 2022.

As of December 31, 2023, 49,516 PSUs remained outstanding.

Included in the Granted balance are 109,356 Performance Stock Units grant ("PSU").

During the year ended December 31, 2024 the Company’s Board of Directors (the “Board”) approved the Performance Stock Units grants ("PSU") of 109,356 PSUs to executive employees.

The PSUs will be eligible to vest upon the satisfaction of specified market-based conditions tied to the price of the Company's publicly traded shares at four distinct price threshold levels.

As of December 31, 2025, 158,870 PSUs remained outstanding.

(2) Included in the granted balance are 1,224,019 PSUs.

Of these, 44,519 PSUs are eligible to vest upon the satisfaction of specified market‑based conditions tied to the price of the Company’s publicly traded shares at four distinct price threshold levels, and 589,750 PSUs are eligible to vest upon the satisfaction of specified market‑based conditions tied to the price of the Company’s publicly traded shares at two distinct price threshold levels.

The remaining 589,750 PSUs are eligible to vest upon the achievement of specified revenue‑based performance milestones, which were not considered probable of achievement as of December 31, 2025.

Accordingly, no stock‑based compensation expense was recognized for these awards during the year ended December 31, 2025.

The weighted-average grant date fair value of the PSUs granted during 2025 was $ 69.10 .

The fair value of this award was estimated using a Monte Carlo simulation to address the path-dependent nature of the market-based vesting conditions.

The fair value of this award subject to market feature was estimated using a Monte Carlo simulation to address the path-dependent nature of the market-based vesting conditions.

Based on the award term, equity value, expected volatility, risk-free rate, and a series of random variables with a normal distribution, the future equity value was simulated.

Each trial within the simulation includes assumptions of achieving a per share valuation level of the Company’s common stock as stipulated in the agreement to determine whether the market-based conditions are met resulting in vesting or not, and the future value of the award.

The simulation was run for 50K trials and the mean results from all the trials was taken as an indication of the fair value of each Tranche.

The simulation was run for 100,000 trials and the mean results from all the trials was taken as an indication of the fair value of each Tranche.

The assumptions used to value the PSUs issued during the years ended December 31, 2025 and 2024 were as follows:

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the year ended December 31, 2024, the Company recorded a total stock‑based compensation expense of $ 16.3 million related to RSUs awarded to employees and non-employees directors.

As of December 31, 2024, total stock-based compensation cost not yet recognized related to unvested RSUs was $ 14.9 million, which is expected to be recognized over a weighted-average period of 3.91 years.

Year Ended December 31,

(Amounts in thousands, except shares and averages) 2025 2024

Weighted average expected term (years) 4.0 2.9

Weighted average expected volatility 72.0 % 63.2 %

Risk-free interest rate 3.8 % 4.5 %

Dividend yield — % — %

For the year ended December 31, 2025, the Company recorded a total stock‑based compensation expense of $ 4.1 million related to PSUs awarded to employees and non-employees directors that include a market‑based vesting conditions.

As of December 31, 2025, total stock-based compensation cost not yet recognized related to unvested PSUs, based on the satisfaction of market-based conditions, were $ 38.0 million, which is expected to be recognized over a weighted-average period of 3.81 years.

As of December 31, 2025, total stock-based compensation cost not yet recognized related to unvested PSUs, based on the satisfaction of revenue-based performance milestones not considered probable, were $ 43.0 million, which if met would be recognized over a weighted-average period of 3.84 years.

Stock-Based Compensation Expense —S tock-based compensation expense is included within compensation and benefits in the consolidated statements of operations and comprehensive loss.

5 unchanged sentences

__________________

(1) Technology expense excludes $ 1.8 million and $ 4.1 million of stock-based compensation expense, which was capitalized (see Note 10) for the years ended December 31, 2024 and 2023, respectively

(1) Stock-based compensation expense excludes $ 1.4 million and $ 1.8 million of stock-based compensation expense, which was capitalized (see Note 8) for the years ended December 31, 2025 and 2024, respectively .

Regulatory Requirements

6 unchanged sentences

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 December 31, 2024 and 2023.

The Company has implemented additional financial requirements and remains in compliance with all applicable obligations as of December 31, 2025.

Subsequent Events

The Company evaluated subsequent events from the date of the consolidated balance sheets of December 31, 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 consolidated financial statements, except as described in Note 4 and Note 21, and as follows:

Share Repurchase Authorization —On January 22, 2025, the Company announced that the Company’s Board of Directors has authorized a stock repurchase program for up to $ 25.0 million of the Company’s Class A common stock, par value $ 0.0001 per share, that will expire on December 31, 2025.

On February 17, 2026, the Company entered into a securities purchase agreement, pursuant to which it issued a warrant to purchase up to an aggregate of 211,312 shares of its Class A common stock.

The warrant is subject to certain exercisability conditions and expires on February 17, 2027.

The Company also entered into a related registration rights

BETTER HOME & FINANCE HOLDING COMPANY AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The transaction occurred subsequent to year-end and did not impact the consolidated financial statements as of December 31, 2025.

Changes in and Disagreements With Accountants on Accounting and Financial Disclosures

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data