Key facts
- Daniel Lewis has been appointed interim CEO of Better Home & Finance Holding Co., replacing founder Vishal Garg.
- Vishal Garg will remain on the company's board to ensure an orderly leadership transition.
- Lewis brings over 30 years of experience in operations, investment, and governance.
- Better aims to exceed $45 million in annualized cost reductions by year-end.
- Preliminary second-quarter results show funded loan volume up 45% year over year to $1.67 billion, and revenue up 28% to $54.7 million.
Better Home & Finance Holding Co. announced Monday that board member Daniel Lewis has been appointed interim CEO, effective immediately, replacing founder Vishal Garg. Garg will remain on the company's board and collaborate with Lewis to ensure a smooth leadership transition.
Lewis, who brings over three decades of operating, investment, and governance expertise, previously served as CEO of Toronto-based software company Ascend Fundraising Solutions from 2018 to 2023. He also has experience from Citigroup and founded Orange Capital LLC.
Harit Talwar, chairman of the board, acknowledged Garg's leadership in building Better's technology platforms, Tinman and Betsy, which have automated long-standing processes in the home buying and refinancing industry. Garg stated that the company is at a critical juncture, making it an opportune moment for new leadership. He highlighted Better's achievement of assisting over 600,000 customers with more than $110 billion in loan volume over the past decade.
The company indicated that Lewis's compensation will be substantially tied to shareholder returns and long-term operational performance, aligning leadership with investor interests as Better strives for profitability. Lewis plans to focus Better's strategy on a platform model where partners manage customer acquisition, while Better concentrates on efficient mortgage manufacturing and technology. He emphasized leveraging experience to manufacture mortgages efficiently rather than outspending competitors.
Lewis also noted that current priorities include accelerating cost-cutting measures, with Better now projecting annualized cost reductions to surpass $45 million by the end of the year, an increase from the previous $25 million target. The company released preliminary second-quarter earnings, showing funded loan volume at $1.67 billion (up 45% year-over-year) and revenue at $54.7 million (up 28% year-over-year). The net loss was $30.6 million, and adjusted EBITDA was -$14.0 million, benefiting from a $6.5 million TRID reserve release. These figures are estimates pending final financial closing procedures. Better has rescheduled its second-quarter earnings release and investor call to after market close on August 6.
Additionally, Better is continuing efforts to sell its UK bank subsidiary, Birmingham Bank, with FT Partners leading the process.