Better Home & Finance (NASDAQ: BETR) Faces Securities Class Action Amid 75% Sequential Increase in Net Loss, Dimmed Loan Volume Prospects -- HBSS
SAN FRANCISCO, Sept. 23, 2026 (GLOBE NEWSWIRE) -- Better Home & Finance (NASDAQ: BETR) faces a securities class action after it reported that its Q1 2026 net loss increased 75% sequentially (and 39% year over year) and drastically walked back on assurances of $1 billion monthly loan volume by the end of May.
The news drove the price of Better Home shares over 28% lower on May 7, 2026. After the Class Period, the company fired its CEO.
The developments have prompted national shareholders rights firm Hagens Berman to investigate claims that Better Home violated federal securities laws.
The firm urges Better Home investors who suffered substantial losses to submit your losses now.
Class Period: Mar. 13, 2026 – May 7, 2026
Lead Plaintiff Deadline: Nov. 20, 2026
Visit: www.hbsslaw.com/betr
Direct Contact Email: BETR@hbsslaw.com
Firm Telephone: 844-916-0895
Better Home & Finance (BETR) Securities Class Action:
On March 13, 2026, Better Home reported its Q4 2025 financial results, touted its funded loan volume growth and its conversion rates (the process of converting website visits or mortgage applicants to actual funded loan customers)
During the earnings call that day, then CEO Vishal Garg advised investors that “[w]e remain on track to reach $1 billion in monthly volume by May 2026 and to reach adjusted EBITDA breakeven by the end of the third quarter 2026.” In addition, CFO Loveen Advani assured investors that “Better continues to generate opportunities independent of the broader economic and mortgage market conditions[]” and “[w]ith a large addressable market and less than 1% share today, we have demonstrated the ability to grow regardless of macro conditions.”
The lawsuit is focused on the propriety of these and other assurances given to investors by the company and its management.
More specifically, according to the complaint, Better Home did not disclose crucial information to investors – namely, that the company’s conversion funnel was already slowing due to macro factors and, as a result, the $1 billion monthly funded loan target was likely to be deferred.
Investors learned the truth on May 7, 2026 when Better Home reported dismal Q1 2026 results. Instead of hitting monthly $1 billion in loan volume, the company slashed the number and said that for the three months comprising Q2 investors should expect slower quarterly loan volume of just $1.65 billion at the mid-point. In other words, in contrast to being “on track to reach” $1 billion monthly loan volume, Better Home’s new target of just $550 million loan volume per month represents a whopping 45% miss.
In addition, net loss sequentially increased 75% and year over year increased 39%.
During the earnings call that day, Garg admitted “conversion rates are down from where they were in Q1 due to macro factors.”
The market swiftly reacted, sending the price of Better Home shares down over 28% that day. Year to date, the stock is down nearly 60%.
“We’re focused on when Better Home knew it was not resilient to macroeconomic factors and that its $1 billion monthly loan volume target was unattainable,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation.
If you invested in Better Home and have substantial losses, or have knowledge that will assist the firm’s investigation, submit your losses now »
Whistleblowers: Persons with non-public information regarding Better Home should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email BETR@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.
Contact: Hagens Berman, Reed Kathrein, 715 Hearst Avenue, Suite 300, Berkeley, CA 94710, 844-916-0895, BETR@hbsslaw.com
© Copyright Globe Newswire, Inc. All rights reserved. The information contained in this news report may not be published, broadcast or otherwise distributed without the prior written authority of Globe Newswire, Inc.
