Better Home & Finance Holding Company (BETR): A Bull Case Theory 

We came across a bullish thesis on Better Home & Finance Holding Company on Shareholdersunite Essentials’s Substack by Shareholdersunite. In this article, we will summarize the bulls’ thesis on BETR. Better Home & Finance Holding Company’s share was trading at $67.01 as of September 24th.

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Better Home & Finance Holding Company (BETR), formed through the merger of Aurora Acquisition and Better Holdco in August 2023, is positioning itself as a technology-driven homeownership platform designed to transform how consumers find, finance, insure, and sell homes. At the center of its operations is Tinman, a proprietary loan origination platform that automates complex mortgage processes, reduces labor costs, and accelerates loan execution, enabling rapid pre-approvals and closings.

Complementing this, the “One Day Mortgage” program and the launch of Betsy, a voice-based AI assistant, underscore BETR’s push toward efficiency and customer experience improvements. The company operates through two key segments: Home Finance, which manufactures and sells loans with minimal credit exposure, and Better Plus, which embeds non-mortgage products like real estate referrals, settlement services, and insurance offerings into customer workflows. In addition, BETR has opened a new revenue stream by licensing Tinman as a white-label platform, expected to generate high-margin recurring revenue under an “outcome as a service” model.

On the distribution side, BETR leverages direct-to-consumer marketing, evolving business-to-business partnerships, and its new distributed retail channel, “NEO Powered by Better,” which integrates local loan officers with Tinman technology. Growth priorities include scaling automation, expanding Better Plus products, pursuing international markets such as the U.K., and improving conversion rates to sustain margins despite mortgage cycle volatility.

While challenges remain, including reliance on secondary loan sales, regulatory complexity, and competition from fintechs and traditional lenders, BETR’s technology-led approach, diversified channels, and low-risk balance sheet structure provide a compelling growth framework. If successfully executed, these initiatives could position the company as a differentiated player in the evolving mortgage technology landscape.

Previously we covered a bullish thesis on Rocket Companies, Inc. (RKT) by Unemployed Value Degen in December 2024, which highlighted its potential to benefit from a home equity loan boom, resilient servicing portfolio, and tech-driven strategy despite revenue declines. The company’s stock price has appreciated approximately by 38.15% as of December 2024. The thesis still stands. Shareholdersunite shares a similar but emphasizes Better Home & Finance’s Tinman platform, AI-driven efficiency, and diversified revenue streams.

Better Home & Finance Holding Company is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 9 hedge fund portfolios held BETR at the end of the second quarter which was 9 in the previous quarter. While we acknowledge the risk and potential of BETR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than BETR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.