[Management View]
Beeline Holdings achieved its first positive cash flow month in October 2025, ahead of the targeted Q1 2026. The company eliminated all debt except office leases and warehouse lines as of September. Loan originations grew by over 35% QoQ, and closed loan units increased by 29%. Revenue per closed file rose from $6,400 in January to $8,828 in October, with expectations to normalize between $10,000-$11,000 per file. Warehouse line capacity expanded to $25 million, supporting monthly origination potential of approximately $75 million. The AI agent, Bob, significantly improved lead conversions and mortgage applications.

[Outlook]
Management expects to sustain positive cash flow and operating profitability by Q1 2026, eliminating the need for new capital raises. The newly launched Beeline Equity product is projected to close 30 transactions by year-end, with plans for a broader rollout after regulatory observation. The company anticipates continued robust growth from new products, existing loan and title revenues, and controlled expenses.

[Financial Performance]
Q3 net revenue was $2.3 million, with year-to-date net revenue at $5.4 million. Operating expenses for Q3 totaled $5.2 million, resulting in a net loss of $4 million, an improvement from a Q1 loss of $6.7 million. The balance sheet showed $1.3 million in cash plus restricted cash, up from $872,000 at the prior year-end. Total equity increased by 6% to $51.7 million.

[Q&A Highlights]
Question 1: Did the market response to the Fed's rate cuts match your expectations, and is the current warehouse line capacity sufficient to meet demand?
Answer: The volume was as expected, and the company had pre-negotiated warehouse lines to ensure capacity. The current $75 million capacity is slightly more than needed but can be increased quickly if required.

Question 2: Can you provide insights into the demand and market response for the cash-out equity business?
Answer: The demand is significant, particularly among baby boomers with substantial home equity. The product leverages blockchain technology and targets a market with $10 trillion in available equity. The company is proceeding cautiously to ensure regulatory compliance and quality before a full launch.

Question 3: Do you anticipate competition in the fractional equity market, and how does your product differ?
Answer: Competition is expected, which is positive given the market size. Beeline's product is unique as it involves a true fractional sale of equity recorded as a deed, not a deed of trust, differentiating it from other equity products that turn into P&I instruments.

[Sentiment Analysis]
Analysts and management maintained a positive tone, with confidence in achieving financial goals and excitement about new product launches. The discussion reflected optimism about market opportunities and the company's strategic positioning.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | Q1 2025 |
|----------------------------|---------------|---------------|---------------|
| Net Revenue | $2.3 million | $1.7 million | $1.4 million |
| Operating Expenses | $5.2 million | $5.7 million | $6.1 million |
| Net Loss | $4 million | $4.7 million | $6.7 million |
| Closed Loan Units | 242 | 187 | 160 |
| Revenue per Closed File | $8,828 | $7,500 | $6,400 |
| Cash and Restricted Cash | $1.3 million | $1.1 million | $872,000 |
| Total Equity | $51.7 million | $50.5 million | $49 million |

[Risks and Concerns]
Potential risks include regulatory challenges for the new fractional equity product, market volatility affecting mortgage demand, and the need to maintain technological advantages. The company must also manage operational costs while scaling new products.

[Final Takeaway]
Beeline Holdings demonstrated strong financial and operational performance in Q3 2025, achieving positive cash flow and significant growth in loan originations. The launch of the Beeline Equity product represents a strategic innovation with substantial market potential. Management's focus on technology and efficiency positions the company well for continued growth and profitability. Investors should monitor the company's ability to navigate regulatory challenges and maintain its competitive edge in a dynamic market environment.