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Aurora Acquisition (BETR)
NASDAQ:BETR
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Aurora Acquisition
(NASDAQ:BETR)
Rating:53Neutral
Price Target:
$13.50
▼(-2.67%Downside)
Aurora Acquisition (BETR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$220.47M
Dividend YieldN/A
Average Volume (3M)79.49K
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth175.05%
EPS Growth67.42%
CountryUS
Employees1,250
SectorFinancial
Sector Strength74
IndustryFinancial - Mortgages
Share Statistics
EPS (TTM)-3.31
Shares Outstanding9,716,145
10 Day Avg. Volume32,935
30 Day Avg. Volume79,488
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)-1.98
Price to Sales (P/S)0.00
P/FCF Ratio-0.83
Enterprise Value/Market Cap3.87
Enterprise Value/Revenue1.91
Enterprise Value/Gross Profit-23.83
Enterprise Value/Ebitda-0.94
Forecast
1Y Price Target
$13.50Price Target Upside-2.67% Downside
Rating ConsensusHold
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 government-sponsored enterprise (GSE) conforming loans, U.S. Federal Housing Administration insured loans, U.S. Department of Veterans Affairs guaranteed loans, and jumbo loans to GSEs, banks, insurance companies, asset managers, and mortgage real estate investment trusts. 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 primarily through the successful completion of mergers or acquisitions. Upon merging with a private company, the new public entity can issue shares, which may appreciate in value, benefiting the initial investors and stakeholders of the SPAC. Aurora may also earn fees or compensation related to the execution of these transactions. The company's revenue model depends heavily on identifying and closing successful deals that add value to its shareholders.
Aurora Acquisition Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -1.35%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with significant achievements in revenue growth, debt restructuring, and AI platform expansion. However, challenges remain with ongoing net losses, a sequential decline in loan volume, and the loss of a major business partner. The highlights, particularly in strategic initiatives and operational efficiency, outweigh the lowlights.Q1-2025 Updates
Positive Updates
Significant Revenue and Loan Volume Growth
Funded loan volume increased by 31% to $868 million and revenue grew by 46% to $33 million year-over-year, driven by strategic investments in technology and product innovation.
Retirement of Convertible Debt
Better successfully retired approximately $530 million of convertible notes, creating $200 million of positive pre-tax equity value, improving the balance sheet and setting a path for long-term value creation.
AI Platform Expansion
The Tinman AI platform and Betsy AI Loan Assistant showed significant progress, with 127,000 consumer interactions and an increase in AI underwriting from 40% to 75% of lock loans.
NEO Platform Success
NEO Powered by Better onboarded 115 loan officers, achieving $119 million in funded loans for March 2025, showcasing rapid growth and efficiency improvements.
B2B Software Partnership
Better signed its first bank partner to power their mortgage platform with Tinman AI software, expected to generate $4 million to $12 million in revenue annually from this partnership alone.
Negative Updates
Continued Net Loss
The company reported an adjusted EBITDA loss of $40.4 million and a total GAAP net loss of approximately $50.6 million, despite revenue growth.
Sequential Loan Volume Decline
On a sequential quarter-over-quarter basis, funded loan volume was down approximately 7% from Q4 2024, although this was better than the anticipated decline of 10% to 15%.
Loss of Ally Business
The company faces a $1 billion headwind due to the loss of the Ally business, impacting overall growth projections.
Company Guidance
During the Better Home & Finance Holding Company First Quarter 2025 Results Call, the company provided detailed guidance on its financial and operational performance. For the first quarter of 2025, Better Home reported a 31% increase in funded loan volume, reaching $868 million, and a 46% rise in revenue to $33 million compared to the previous year. The call highlighted the company's strategic initiatives, including leveraging AI technology to enhance loan processing efficiency, expanding distribution channels, and reducing corporate costs. The Tinman AI platform played a significant role in these advancements, with its launch contributing to a 207% increase in home equity loan volume, a 64% rise in refinance loans, and a 9% growth in purchase loan volume. The company also successfully retired outstanding convertible debt, creating approximately $200 million in positive pre-tax equity value. Looking ahead, Better Home expects continued growth, driven by strategic investments in AI and technology, with a focus on achieving profitability in the medium term.Aurora Acquisition Financial Statement Overview
Summary
Aurora Acquisition faces severe financial challenges with significant declines in revenue, negative profitability, insolvency risk, and deteriorating cash flow. These issues 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 |
| EBITDA | -154.79M | -459.94M | -523.38M | -175.32M | 75.05M |
| Net Income | -206.29M | -536.42M | -888.80M | -301.13M | 27.29M |
Balance Sheet | |||||
| Total Assets | 913.06M | 905.55M | 1.09B | 3.30B | 838.24M |
| Cash, Cash Equivalents and Short-Term Investments | 264.88M | 529.19M | 317.96M | 938.32M | 10.32M |
| Total Debt | 767.90M | 672.06M | 1.10B | 2.37B | 7.67M |
| 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
13.87
Price Trends
13.20
Positive
12.78
Positive
12.54
Positive
Market Momentum
0.30
Negative
53.58
Neutral
62.56
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 13.87 is above the 20-day moving average (MA) of 13.44, above the 50-day MA of 13.20, and above the 200-day MA of 12.54, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 62.56 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 (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $638.97M | 9.14 | 13.62% | ― | 32.62% | 16.91% | |
68 Neutral | $17.19B | 11.20 | 9.70% | 3.58% | 11.11% | -4.55% | |
64 Neutral | $75.24M | 16.94 | 3.69% | ― | ― | -32.53% | |
64 Neutral | $209.61M | 9.73 | 7.02% | ― | 4.96% | 12.43% | |
53 Neutral | $220.47M | ― | -492.93% | ― | 175.05% | 67.42% | |
50 Neutral | $308.33M | 13.47 | 5.50% | ― | -3.14% | 264.15% | |
48 Neutral | $597.14M | ― | -29.48% | ― | 3.76% | 16.19% |
* Financial Sector Average
Performance Comparison
BETR
Aurora Acquisition
13.87
-13.49
-49.31%
ONIT
Onity Group
38.40
10.96
39.94%
SNFCA
Security National Financial
8.87
0.89
11.15%
LDI
loanDepot
1.78
-0.24
-11.88%
IOR
Income Opportunity Realty Investors
18.53
2.53
15.81%
VEL
Velocity Financial
17.50
-1.49
-7.85%
Aurora Acquisition Corporate Events
Executive/Board ChangesShareholder Meetings
Aurora Acquisition’s Key Decisions at Annual Meeting
Neutral
Jun 16, 2025
On June 10, 2025, Better Home & Finance Holding Company held its 2025 Annual Meeting of Stockholders, where key decisions were made regarding the company’s leadership and financial oversight. The meeting resulted in the election of directors for the upcoming term and the ratification of Deloitte & Touche LLP as the independent registered public accounting firm for 2025, reflecting shareholder confidence in the company’s governance and financial management.
Private Placements and Financing
Aurora Acquisition Completes Significant Debt Exchange Transaction
Neutral
Apr 28, 2025
On April 28, 2025, Better Home & Finance Holding Company completed a debt exchange transaction with SB Northstar LP, issuing $155 million in new senior secured notes and making a $110 million cash payment in exchange for $533.9 million of existing convertible notes. This transaction, which did not generate cash proceeds for the company, involved the cancellation of the existing notes and the forfeiture of any accrued interest by the investor. The newly issued notes are secured by the company’s assets and include covenants restricting additional indebtedness and asset sales, potentially impacting the company’s financial flexibility and obligations.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.