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Better.com's Ambitious Path to Profitability: Fueled by AI and Strategic Expansion

Better.com, the online mortgage lender, is charting a course towards profitability, with a target of achieving adjusted EBITDA breakeven by the third quarter of 2026. This ambitious goal is underpinned by the strategic expansion of its proprietary AI platform, Tinman, and a focus on operational efficiency. The company's leadership believes that leveraging artificial intelligence is key to navigating the evolving mortgage landscape and delivering sustainable financial results.

The driving force behind this optimism is the demonstrable success of the Tinman AI platform, integrated within the NEO Powered by Better system. Recent performance data highlights the platform's revenue-generating capabilities. According to Garg, in Q2 2025, for every loan funded through the Tinman AI platform, Better.com generated a significant contribution profit of $6,172, based on a revenue per loan of $15,538. This translates to a robust contribution margin of 40%, showcasing the platform’s potential to drive profitability.

The Power of AI in Mortgage Lending

The mortgage industry has traditionally been characterized by manual processes and high operational costs. Better.com's adoption of AI aims to disrupt this model by automating key tasks, streamlining workflows, and improving decision-making. The Tinman platform is designed to enhance various aspects of the lending process, including:

• Loan Origination: Automating application processing, credit assessment, and document verification.
• Risk Management: Utilizing AI algorithms to identify and mitigate potential risks.
• Customer Experience: Providing personalized recommendations and a seamless online experience.

By leveraging AI, Better.com aims to reduce costs, improve efficiency, and ultimately offer more competitive rates to borrowers.

Looking Ahead: A Path to Sustainable Growth

While the breakeven target by Q3 2026 represents a significant milestone, Better.com acknowledges that achieving this goal will require continued focus and execution. Key priorities include:

• Expanding the Tinman AI platform: Further developing and deploying AI capabilities across the entire lending lifecycle.
• Optimizing operational efficiency: Continuously seeking ways to reduce costs and improve productivity.
• Strategic partnerships: Collaborating with industry partners to expand reach and enhance service offerings.

Better.com’s commitment to AI-driven innovation positions the company for long-term success in the competitive mortgage market. The impressive contribution margins generated by the Tinman platform provide a strong foundation for achieving profitability and driving sustainable growth.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.