Shares of Better Home & Finance Holding Company (NASDAQ: BETR) plummeted 15.13% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results. The significant drop comes as the AI-powered mortgage lender reported a substantial net loss despite revenue growth and strategic advancements.

Better Home & Finance reported Q3 revenue of approximately $44 million, matching the previous quarter and showing a 52% increase from $29 million in the same period last year. However, the company posted a net loss of about $39 million, compared to a loss of $54 million in Q3 2024. The Adjusted EBITDA loss stood at approximately $25 million, an improvement from the $39 million loss in the year-ago quarter but still a concern for investors.

Despite the losses, Better highlighted positive developments, including the execution of two strategic partnerships during the quarter and a third subsequent to the quarter's end. The company also anticipates higher funded loan volume in Q4 2025, expecting to achieve a $500 million monthly run rate in total funded loan volume. CEO Vishal Garg emphasized the company's evolution as a platform and software provider powering the home finance ecosystem. Better reaffirmed its guidance of achieving Adjusted EBITDA breakeven by the end of Q3 2026, but the market's reaction suggests skepticism about the company's near-term profitability prospects.