Key facts
- Better Home & Finance Holding Co. anticipates a tough third quarter with an increased adjusted EBITDA loss.
- The company expects Q3 loan volume to decrease to between $1.375 billion and $1.525 billion.
- Better will not achieve its goal of adjusted EBITDA break-even by September.
- Interim CEO Daniel Lewis is guiding the company's pivot to an enterprise model.
- The company ended Q2 2026 with approximately $102 million in cash and cash equivalents.
Better Home & Finance Holding Co. is bracing for a difficult third quarter as it navigates a strategic shift under interim CEO Daniel Lewis. The digital lender anticipates an increased adjusted EBITDA loss, projected to be between $15 million and $18 million, compared to $14 million in the second quarter. Loan volume is also expected to decline, falling to an estimated $1.375 billion to $1.525 billion from $1.67 billion in Q2.
Lewis, an activist investor who recently took the helm, indicated that the company is moving from a 'founder-mode' focused on diverse projects to an 'enterprise stage' concentrating on a select few ideas with proven product-market fit. He addressed investor questions regarding potential capital raises, going private, or mergers and acquisitions, stating that no formal strategic alternatives process is currently active.
The company will not meet its previously stated goal of achieving adjusted EBITDA break-even by September. Lewis attributed the revised outlook to a muted refinancing environment and the uncertain timing of partnership launches. Chief Financial Officer Loveen Advani noted that the challenging mortgage rate backdrop and softened industrywide application activity are expected to persist.
Better's strategy now emphasizes an expansion into an enterprise model, focusing on partnerships with businesses that align with its API-driven platforms like Tinman. The company also plans to invest in HELOC products and leverage its direct-to-consumer channels as a feedback loop for loan officer experience. Lewis, who replaced founder Vishal Garg, will receive minimum legal salary and performance-based equity, with the board also opting for equity compensation.