Aurora Acquisition (BETR) AI Stock Analysis

• Market Cap: $1.25B
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: 75.03%
• EPS Growth: 70.19%
• Country: US
• Employees: 1,250
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): -2.19
• Shares Outstanding: 9,477,467
• 10 Day Avg. Volume: 928,192
• 30 Day Avg. Volume: 1,288,598
• PEG Ratio: >-0.01
• Price to Book (P/B): -2.32
• Price to Sales (P/S): 1.12
• P/FCF Ratio: -0.35
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 3.31
• Enterprise Value/Gross Profit: 29.94
• Enterprise Value/Ebitda: -3.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 54 Neutral
• Price Target: $83.00 ▲(31.02% Upside)

Aurora Acquisition's overall stock score is primarily impacted by its poor financial performance, characterized by significant losses and high leverage. While technical analysis shows strong bullish momentum, the stock's valuation remains unattractive due to negative earnings and lack of dividends. The earnings call provides some optimism with strategic initiatives and growth in AI, but ongoing challenges with profitability and business losses weigh heavily on the score.

Positive Factors

AI Technology Advancements

The development of AI technology like Betsy AI enhances operational efficiency and customer experience, providing a competitive edge and supporting long-term growth in the mortgage industry.

Revenue Growth

Strong revenue growth driven by strategic initiatives and AI adoption indicates robust market demand and effective business strategies, which are crucial for sustainable long-term expansion.

Home Equity Loan Growth

The significant rise in home equity loans reflects successful market positioning and product diversification, contributing to the company's resilience and future revenue streams.

Negative Factors

High Leverage

The high leverage poses a risk to financial stability, potentially impacting the company's ability to invest in growth opportunities and manage economic downturns effectively.

Negative Cash Flow

Deteriorating cash generation capabilities raise concerns about liquidity and operational sustainability, which could hinder long-term strategic investments and growth.

Adjusted EBITDA Losses

Ongoing EBITDA losses indicate persistent operational inefficiencies, challenging the company's path to profitability and necessitating strategic restructuring to improve financial health.

Aurora Acquisition Business Overview & Revenue Model

Company Description

Aurora Acquisition Corp (BETR) is a blank check company, also known as a special purpose acquisition company (SPAC), formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company does not have any operations or revenues until it completes a business combination.

How the Company Makes Money

Aurora Acquisition Corp makes money through the successful completion of a business combination. This involves identifying a private company to merge with or acquire, thereby taking the private company public through the SPAC's existing stock market listing. The SPAC raises funds through its initial public offering (IPO) and holds these funds in a trust account until a suitable target company is identified. Once a merger is completed, the SPAC may earn money through the appreciation of its stock and the acquisition target's future performance. Additionally, sponsors of the SPAC may receive a portion of equity in the merged entity as compensation for their efforts in facilitating the business combination.

Aurora Acquisition Financial Statement Overview

Summary

Aurora Acquisition faces significant financial challenges across all verticals. The income statement shows persistent losses and negative margins, while the balance sheet is burdened with high leverage and negative equity. Cash flow issues further exacerbate the situation, with negative cash flows and declining free cash flow growth. These factors collectively indicate a need for strategic financial restructuring to improve profitability and stability.

Income Statement

Aurora Acquisition's income statement reveals significant challenges. The company has been experiencing negative profit margins, with a TTM net profit margin of -124.31% and a gross profit margin of 11.06%. Although there is a positive revenue growth rate of 10.30% in the TTM, the persistent negative EBIT and EBITDA margins indicate ongoing operational inefficiencies and profitability issues.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of -7.49 in the TTM, indicating significant leverage and potential financial risk. While the return on equity is positive at 9.61%, the negative equity ratio and high debt levels pose concerns about financial stability and solvency.

Cash Flow

Aurora Acquisition's cash flow statement highlights negative operating and free cash flows in the TTM, with a free cash flow to net income ratio of 1.05. The negative free cash flow growth rate of -87.6% suggests deteriorating cash generation capabilities, raising concerns about liquidity and operational sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2016
Income Statement
Total Revenue	161.10M	120.05M	88.50M	395.08M	1.31B	270.81M
Gross Profit	17.82M	-42.52M	-61.31M	-298.49M	342.30M	130.11M
EBITDA	-136.53M	-154.79M	-459.94M	-523.38M	-175.32M	75.05M
Net Income	-200.26M	-206.29M	-536.42M	8.74M	-301.13M	27.29M
Balance Sheet
Total Assets	1.23B	913.06M	905.55M	1.09B	3.30B	838.24M
Cash, Cash Equivalents and Short-Term Investments	221.52M	264.88M	529.19M	317.96M	938.32M	10.32M
Total Debt	577.63M	767.90M	672.06M	1.10B	2.37B	7.67M
Total Liabilities	1.16B	971.23M	782.95M	1.26B	2.62B	786.51M
Stockholders Equity	76.56M	-58.17M	122.60M	-167.90M	676.44M	51.73M
Cash Flow
Free Cash Flow	-241.83M	-390.05M	-169.50M	902.94M	292.57M	-6.74M
Operating Cash Flow	-230.10M	-379.97M	-159.72M	938.22M	361.21M	-803.00K
Investing Cash Flow	-518.75M	-143.81M	-38.59M	-34.66M	-68.70M	-388.08M
Financing Cash Flow	469.57M	239.13M	381.40M	-1.54B	304.54M	380.97M

Aurora Acquisition Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 63.35 is above the 20-day moving average (MA) of 60.00, above the 50-day MA of 38.72, and above the 200-day MA of 18.87, indicating a bullish trend. The MACD of 8.38 indicates Negative momentum. The RSI at 66.85 is Neutral, neither overbought nor oversold. The STOCH value of 83.21 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BETR.

Aurora Acquisition Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNFCA	68 Neutral	$212.97M	9.37	6.65%	―	5.49%	4.30%
VEL	68 Neutral	$693.05M	8.25	15.02%	―	35.12%	25.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
IOR	64 Neutral	$74.31M	17.31	3.52%	―	―	-32.51%
BETR	54 Neutral	$1.25B	―	-286.59%	―	75.03%	70.19%
ONIT	50 Neutral	$302.55M	9.57	7.55%	―	-2.84%	2420.57%
LDI	50 Neutral	$1.12B	―	-23.67%	―	6.60%	44.77%

Aurora Acquisition Corporate Events

Aurora Acquisition Appoints New Independent Directors

On July 30, 2025, Better Home & Finance Holding Company announced the election of David Barse and Bhaskar Menon as directors, effective August 1, 2025. Both individuals meet the Nasdaq Stock Market’s independence requirements, and their committee assignments will be determined later. The new directors will receive compensation according to the company’s policy, including annual cash and equity retainers. There are no personal or financial conflicts of interest involving the new directors.

Aurora Acquisition’s Key Decisions at Annual Meeting

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.