Free cash flow remains deeply negative, with margins reaching -144.9% in 2026Q1, highlighting a structural inability to generate self-sustaining cash flow.
| Cash from Operations | -241.47M | -232.15M | -379.97M | -159.72M | 938.22M | 361.21M | -803K | 47M |
| Operating CF Margin % | - | -121.31% | -316.5% | -180.47% | 237.48% | 27.54% | -0.3% | 25.55% |
| Operating CF Growth % | -445.41% | 38.9% | -137.9% | -117.02% | 159.74% | 45083.19% | -101.71% | - |
| Net Income | -185.62M | -165.87M | -206.29M | -536.42M | -262.94M | -301.13M | 27.29M | 9.88M |
| Depreciation & Amortization | 13.09M | 14.07M | 33.23M | 42.89M | 49.42M | 27.22M | 9.5M | 5.37M |
| Stock-Based Compensation | 0 | 0 | 26.75M | 54.16M | 30.54M | 55.22M | 0 | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 118.31M | -1.66M | -8.24M |
| Other Non-Cash Items | -102.28M | -106.68M | -223.38M | 332.58M | 11.67B | 51.84B | -81.27M | 56.79M |
| Working Capital Changes | 13.38M | 26.33M | -10.28M | -52.93M | -10.55B | -51.37B | 39.67M | -20.11M |
| Change in Receivables | 8.44M | 2.29M | -1.91M | -97K | 502.96K | -502.96K | -10.99M | -1.78M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | -1.86M | -461K |
| Change in Payables | 4.77M | 17.03M | -21.08M | -22.21M | -40.56M | -7.96M | 4.1M | 2.6M |
| Cash from Investing | -514.89M | -595.93M | -143.81M | -38.59M | -34.66M | -68.7M | -388.08M | -8.61M |
| Capital Expenditures | -11.52M | -11.23M | -10.08M | -9.78M | -35.28M | -68.65M | -5.94M | -777K |
| CapEx % of Revenue | 5.7% | 5.87% | 8.4% | 11.05% | 8.93% | 5.23% | 2.19% | 0.42% |
| Acquisitions | 0 | - | - | - | - | - | - | - |
| Investments | 10.06M | 831.5M | 53.77M | 25.6M | 0 | -279.09M | 0 | 0 |
| Other Investing | -516.27M | -472.76M | -105.17M | 0 | 4.47M | 5.02M | -16.52M | 0 |
| Cash from Financing | 707.26M | 714.34M | 239.13M | 381.4M | -1.54B | 304.54M | 380.97M | -25.26M |
| Debt Issued (Net) | 0 | - | - | - | - | - | - | - |
| Equity Issued (Net) | 46.98M | 29.3M | 91K | 16.35M | -7.95M | -5.65M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -7.95M | -5.65M | -10.32M | -18.75M |
| Other Financing | -7.9M | 0 | 122.29M | 1.81M | 838K | 21.19M | 380.97M | -25.26M |
| Net Change in Cash | -62.09M | -118.9M | -292.55M | 182M | -632.81M | 597.09M | -8.43M | 13.14M |
| Free Cash Flow | -242.85M | -233.35M | -390.05M | -169.5M | 902.94M | 292.57M | -6.74M | 46.22M |
| FCF Margin % | -120.19% | -121.93% | -324.9% | -191.52% | 228.54% | 22.31% | -2.49% | 25.13% |
| FCF Growth % | 30.99% | 40.18% | -130.12% | -118.77% | 208.63% | 4440.76% | -114.58% | - |
| FCF per Share | -14.80 | -15.22 | -25.81 | -0.37 | 1.22 | 0.40 | -0.09 | 0.62 |
| FCF Conversion (FCF/Net Income) | 1.31x | 1.40x | 1.84x | 0.30x | -1.07x | -1.20x | -0.03x | 4.75x |
| Interest Paid | 0 | 0 | 13.82M | 0 | 13.07M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 1.83M | 0 | 0 | 0 |
Persistent operating cash burn
According to the provided financial data, the company consistently reports negative net income alongside operating cash outflows, with the OCF/NI ratio reaching a volatile 5.33 in 2024Q2, suggesting that accruals and non-cash adjustments frequently mask the true extent of the firm's underlying cash-generating challenges.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are not being supported by actual cash inflows from operations. This divergence suggests that the business model is struggling to convert its reported revenue into tangible liquidity, which warrants further investigation into the quality of its earnings.
As reported in recent financial statements, the company's free cash flow trajectory remains deeply negative, with FCF margins fluctuating between -7.4% and -171.7% over the last ten quarters, highlighting a structural inability to generate self-sustaining cash flow amidst a challenging mortgage origination environment.
The consistent negative free cash flow suggests that the company is currently reliant on external financing or existing cash reserves to fund its ongoing operations. Investors should monitor whether the firm can achieve positive FCF margins, as the current trend indicates a significant reliance on capital consumption to maintain its platform.
Based on the company's reported figures, capital expenditures have remained relatively stable, yet the CapEx/Revenue ratio reached as high as 7.8% in 2023Q4, suggesting that the firm is forced to continue investing in its technology stack despite failing to achieve meaningful operating leverage.
The ongoing capital investment appears necessary to maintain the 'Tinman' platform, yet it adds to the total cash burn without providing a clear path to profitability. This capital intensity, when paired with negative operating margins, suggests that the company is effectively subsidizing its growth through continued asset investment.
As indicated by the quarterly cash flow data, working capital changes have been highly erratic, swinging from a $44.7 million outflow in 2023Q4 to a $27.9 million inflow in 2024Q3, which underscores the inherent instability in the company's cash conversion cycle and operational efficiency.
The significant swings in working capital suggest that the company's cash position is highly sensitive to the timing of loan originations and secondary market sales. This volatility complicates cash flow forecasting and may indicate potential inefficiencies in how the firm manages its short-term assets and liabilities.
Quick answers to the most common questions about buying BETR stock.
Better Home & Finance Holding Company (BETR) generated $-232.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Better Home & Finance Holding Company (BETR) reported negative free cash flow of $233.3M in 2025, indicating capital requirements exceeded cash from operations.
Better Home & Finance Holding Company (BETR) spent $11.2M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.