Key facts
- Daniel Lewis, an activist investor, has been appointed interim CEO of Better.
- Lewis holds a 5.8% stake in Better and previously advised the company.
- Better reported preliminary Q2 earnings showing year-over-year increases in funded loan volume and revenue.
- The company posted a net loss of $30.6 million and adjusted EBITDA of -$14.0 million for Q2.
- Better is expanding its cost-reduction plan to achieve $45 million in annualized savings by the end of 2026.
- SoftBank restructured a significant portion of Better's debt in April 2025.
Daniel Lewis, an activist investor who has built a 5.8% stake in Better, has been appointed interim CEO of the mortgage lender, signaling a significant leadership shift as the company grapples with persistent losses and a distant path to profitability. Lewis, whose hedge fund Orange Capital shut down in 2016, previously served as an independent adviser to Better and joined its board.
Lewis takes the helm from founder Vishal Garg, who stepped down as CEO but remains a board director and the company's largest voting shareholder. The leadership change follows Better's announcement of preliminary second-quarter earnings, which showed a year-over-year increase in funded loan volume and revenue, but also a net loss of $30.6 million and adjusted EBITDA of -$14.0 million. Analysts at BTIG described these results as disappointing, anticipating a delay in the company achieving EBITDA breakeven.
Better is implementing an expanded cost-reduction plan aimed at achieving $45 million in annualized savings by the end of 2026, an increase from the previous $25 million target. This initiative includes greater automation through its technology platforms, streamlined operations, and disciplined expense management. The company is also exploring a platform model where partners handle customer acquisition, allowing Better to focus on efficient mortgage manufacturing and technology.
Financially, Better has been working to restructure its obligations. In April 2025, SoftBank's asset management arm, SB Northstar, agreed to a debt restructuring that retired $530 million of debt and issued $155 million in new notes. The company's liquidity has declined, standing at $136 million in Q1 2026. Better also plans to raise approximately $69 million through a public stock offering to fund growth and general corporate purposes. The company is also selling its U.K.-based Birmingham Bank, which posted a $21 million loss in the first five months of 2026.