Education
About Us
Working with TipRanks
Follow Us
Aurora Acquisition (BETR)
NASDAQ:BETR
Top Page
Aurora Acquisition
(NASDAQ:BETR)
35Underperform
Aurora Acquisition (BETR) vs. S&P 500 (SPY)
Market Cap
$188.31M
Dividend YieldN/A
Average Volume (3M)51.37K
Price to Earnings (P/E)―
Beta (1Y)1.50
Revenue Growth460.92%
EPS Growth64.54%
CountryUS
Employees1,250
SectorFinancial
Sector Strength81
IndustryBanking
Share Statistics
EPS (TTM)-13.64
Shares Outstanding9,211,349
10 Day Avg. Volume53,466
30 Day Avg. Volume51,373
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.09
Price to Cash Flow (P/CF)-4.60
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Aurora Acquisition Business Overview & Revenue Model
Company DescriptionBetter Home & Finance Holding Company operates as a homeownership company in the United States. The company provides GSE-conforming, FHA-insured, VA-guaranteed, and jumbo loans to GSEs, banks, insurance companies, asset managers, and mortgage REITs. It also offers real estate agent services, title insurance and settlement services, and homeowners insurance services. The company formerly known as Better Mortgage Corporation and changed its name to Better Home & Finance Holding Company in August 2023. Better Home & Finance Holding Company is headquartered in New York, New York.
How the Company Makes MoneyAurora Acquisition Corp. makes money by successfully completing business combinations with target companies. The company raises capital through its initial public offering (IPO), which is then held in a trust account. Aurora earns interest on the funds held in trust, which can be used to cover operational expenses. Upon successfully identifying and merging with a target company, Aurora typically earns a percentage of equity in the new entity, aligning its financial success with the target company's performance. Additionally, SPAC investors often receive warrants, which can be exercised to purchase additional shares at a predetermined price, providing another potential revenue stream if the merged company's stock performs well. Aurora's earnings are significantly dependent on its ability to identify attractive acquisition targets and execute successful mergers.
Aurora Acquisition Financial Statement Overview
Summary
Aurora Acquisition faces severe financial challenges across income, balance sheet, and cash flow statements. The company is grappling with decreasing revenues, high leverage, negative profitability, and deteriorating cash flow, all of which present significant risks to its financial health and continuity.Income Statement
Aurora Acquisition has experienced significant declines in revenue, dropping from $1.2 billion in 2021 to $120 million in 2024. The consistent negative gross profit margin and net profit margin over the years indicate severe profitability challenges. Despite a slight increase in revenue in 2024, the company's net income remains deeply negative, emphasizing ongoing operational losses and lack of profitability.20
Very Negative
Balance Sheet
The company's balance sheet is concerning, with negative stockholders' equity in 2024, signaling insolvency. The debt-to-equity ratio is not computable due to negative equity, indicating high leverage. Additionally, the equity ratio reflects financial instability. A significant portion of liabilities exceeds total assets, highlighting potential bankruptcy risks.15
Very Negative
Cash Flow
Aurora Acquisition's cash flow position is precarious, with consistently negative operating and free cash flows. The free cash flow has deteriorated further, suggesting increasing cash outflows. The firm struggles to generate sufficient cash from operations, which could threaten its liquidity and operational sustainability.25
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2016 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 120.05M | 88.50M | 361.09M | 1.22B | 270.81M | Gross Profit |
| -42.52M | -61.31M | -295.97M | 342.30M | 130.11M | EBIT |
| 0.00 | -291.28M | -870.83M | -239.68M | 60.36M | EBITDA |
| -154.79M | -459.94M | -523.38M | -175.32M | 75.05M | Net Income Common Stockholders |
| -206.29M | -536.42M | -888.80M | -301.13M | 27.29M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 264.88M | 529.19M | 317.96M | 938.32M | 10.32M | Total Assets |
| 913.06M | 905.55M | 1.09B | 3.30B | 838.24M | Total Debt |
| 767.90M | 672.06M | 1.10B | 2.37B | 7.67M | Net Debt |
| 556.80M | 168.47M | 780.54M | 1.43B | -2.65M | Total Liabilities |
| 971.23M | 782.95M | 1.26B | 2.62B | 786.51M | Stockholders Equity |
| -58.17M | 122.60M | -173.82M | 676.44M | 51.73M |
| Cash Flow | Free Cash Flow | |||
| -390.05M | -169.50M | 902.94M | 292.57M | -6.74M | Operating Cash Flow |
| -379.97M | -159.72M | 938.22M | 361.21M | -803.00K | Investing Cash Flow |
| -143.81M | -38.59M | -34.66M | -68.70M | -388.08M | Financing Cash Flow |
| 239.13M | 381.40M | -1.54B | 304.54M | 380.97M |
Aurora Acquisition Technical Analysis
Positive
12.40
Price Trends
11.30
Positive
11.17
Positive
15.16
Negative
Market Momentum
0.04
Negative
61.13
Neutral
71.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BETR, the sentiment is Positive. The current price of 12.4 is above the 20-day moving average (MA) of 11.61, above the 50-day MA of 11.30, and below the 200-day MA of 15.16, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 61.13 is Neutral, neither overbought nor oversold. The STOCH value of 71.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BETR.
Aurora Acquisition Risk Analysis
Aurora Acquisition disclosed 79 risk factors in its most recent earnings report. Aurora Acquisition reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Aurora Acquisition Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $148.53M | 12.80 | 5.94% | ― | 4.73% | -30.17% | |
65 Neutral | $158.17M | 7.62 | 10.41% | 4.53% | 13.46% | -9.98% | |
63 Neutral | $12.75B | 9.36 | 8.64% | 84.32% | 13.82% | -3.89% | |
62 Neutral | $161.80M | 8.53 | 11.10% | 2.61% | 8.20% | 203.53% | |
62 Neutral | $155.85M | 7.79 | 8.65% | 2.65% | 11.56% | 21.85% | |
55 Neutral | $200.75M | ― | -30.86% | 0.98% | -18.33% | -422.59% | |
35 Underperform | $188.31M | ― | -492.93% | ― | 460.92% | 64.54% |
* Financial Sector Average
Performance Comparison
BETR
Aurora Acquisition
12.88
-8.61
-40.07%
FSFG
First Savings Financial Group
23.06
8.71
60.70%
HMST
HomeStreet
10.98
-1.35
-10.95%
ISTR
Investar Holding
15.87
0.54
3.52%
OPBK
OP Bancorp
11.21
2.60
30.20%
BVFL
BV Financial, Inc.
14.09
3.44
32.30%
Aurora Acquisition Earnings Call Summary
Earnings Call Date: Mar 19, 2025 | % Change Since: 7.83% | Next Earnings Date: May 12, 2025
Earnings Call Sentiment Positive
The earnings call reflects a largely positive sentiment, with the company achieving substantial growth in loan volume, revenue, and AI-driven efficiencies. Notable advancements in AI technology and the successful expansion of the NEO Home Loans platform are key highlights. However, ongoing adjusted EBITDA losses and challenges related to partnerships and market conditions temper the overall outlook.Highlights
Substantial Growth in Loan Volume and Revenue
Better Home & Finance Holding Company reported a 19% year-over-year increase in funded loan volume and a 50% year-over-year increase in revenue for the full year 2024.
AI-Driven Efficiency Improvements
The company reduced adjusted EBITDA losses by 26% year-over-year and decreased loan origination expenses by 28%, compensation-related expenses by 21%, and marketing and advertising by 27% due to AI and automation initiatives.
Significant Growth in HELOC and Refinance Loans
Year-over-year HELOC and home equity loan volume increased 416% in the fourth quarter of 2024, while refinance loan volume rose 611% from the end of 2023.
Advancements in AI Technology
The AI voice-based loan assistant, Betsy, handled over 115,000 consumer interactions in February 2025, a growth rate of over 20x from June 2024.
NEO Home Loans Expansion
Since beginning production in January 2025, NEO Powered by Better onboarded approximately 110 loan officers across 53 branches, serving approximately 220 families and generating $95 million in funded loan volume.
Improving Gain on Sale Margin
Year-over-year gain on sale margin improved from 1.95% in 2023 to 2.17% in 2024, with NEO Home Loans achieving an average gain of sale margin of approximately 365 basis points.
Lowlights
Seasonal and Partnership Challenges
Fourth-quarter funded loan volume decreased approximately 10% quarter-over-quarter due to normal seasonal slowness and the wind-down of the Ally Bank partnership.
Continued Adjusted EBITDA Losses
The company reported an adjusted EBITDA loss of $20 million in the fourth quarter of 2024 and a total GAAP net loss of approximately $59 million.
Market and Affordability Concerns
Persistently high mortgage rates in the high sixes to low 7% range continue to strain mortgage demand, affecting overall market performance.
Company Guidance
In the Better Home & Finance Holding Company fourth-quarter and full-year 2024 results call, the company reported a 19% year-over-year increase in funded loan volume to $3.6 billion and a 50% rise in revenue to $108 million. Despite a challenging market, Better reduced its adjusted EBITDA losses by 26% to $121 million for the year. The fourth quarter saw a 77% year-over-year increase in funded loan volume to $936 million, with revenue reaching $25 million. The company's efforts in AI, particularly with its Tinman AI and Betsy, a voice-based loan assistant, are central to its strategy, driving significant cost reductions and efficiency improvements. For instance, Better reduced its loan origination expenses by 28% and marketing and advertising costs by 27%. The company aims to lean into growth and efficiency, expecting mid-double-digit percentage growth in funded loan volumes for 2025, despite the loss of its partnership with Ally Bank.Aurora Acquisition Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Aurora Acquisition Restructures Notes to Improve Finances
Positive
Apr 14, 2025
On April 12, 2025, Better Home & Finance Holding Company entered into a Note Exchange Agreement with SB Northstar LP to restructure $534 million of its convertible notes due 2028. The agreement involves a $110 million cash payment and the issuance of $155 million in new senior secured notes, expected to close by April 28, 2025. This transaction aims to reduce the company’s debt and improve its financial positioning, creating approximately $265 million of pre-tax equity value. The company plans to focus on growth and profitability, leveraging its AI technology to enhance operations and drive down costs.
Spark’s Take on BETR Stock
According to Spark, TipRanks’ AI Analyst, BETR is a Neutral.
Aurora Acquisition’s overall stock score is low due to severe financial instability, including high leverage and negative cash flows. Technical indicators show some positive momentum, but valuation concerns, particularly due to unprofitability, and mixed earnings call results, with both growth and persistent losses, limit the attractiveness of the stock.
To see Spark’s full report on BETR stock, click here.
Executive/Board Changes
Aurora Acquisition Board Member Riaz Valani Resigns
Neutral
Mar 17, 2025
On March 11, 2025, Riaz Valani, a long-standing member of the Board of Directors at Better Home & Finance Holding Company, resigned due to anticipated time commitments conflicting with his responsibilities on the Board. His departure was not due to any disagreements with the company’s operations, policies, or practices, indicating a smooth transition and minimal impact on the company’s strategic direction.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.