Key facts
- Vishal Garg, founder of Better Home & Finance Holding Co., is seeking to regain control.
- Garg has secured shareholder declarations representing a majority of the company's voting power.
- He proposed working for $1 until Better is profitable and repurchasing $30 million in stock.
- Garg demanded the resignation of most current board members.
- The company has experienced significant stock decline and consecutive quarters of losses.
Vishal Garg, the founder and former CEO of Better Home & Finance Holding Co., is making a move to regain control of the company by securing support from shareholders holding a majority of its voting power. Garg has enlisted attorney Alex Spiro for this shareholder action. In a letter to Better's board, Garg stated he has obtained signed declarations from shareholders representing a majority of the company's voting power, which could be used to call a special meeting if the board does not implement his requested changes.
This development follows closely after Daniel Lewis was announced as Better's interim CEO, succeeding Garg. Garg, however, emphasized his continued role as founder, board director, and the company's single largest voting shareholder. The company recently released its Q2 2026 earnings, reporting an adjusted EBITDA loss of $14 million, with projections for this loss to increase to between $15 million and $18 million in Q3 2026. Better, which went public in 2023 via a SPAC merger, has experienced a stock decline of over 90% and has reported 11 consecutive quarters of losses, previously expecting profitability by the end of Q3 2026.
Garg's proposal aims to address these financial challenges. He has offered to work for $1 per year until the company becomes profitable and plans to repurchase $30 million of the company's stock, including $10 million within the first five trading days. His proposal also calls for the resignation of all directors except himself, Michael Farello, and Hugh Frater. Garg envisions working with a new board to prioritize profitability, shareholder value, and long-term leadership, including launching a search for a permanent CEO. Following the appointment of a successor, Garg would transition to either chairman or chief product and innovation officer.
The plan further includes continuing cost-reduction measures, scaling the Tinman AI platform, and completing the sale of Better's U.K. banking business, which is anticipated to generate approximately $74 million in gross proceeds, pending regulatory approval. Garg highlighted improvements in the company's underlying business, noting that revenue and funded loan volume have each increased more than 2.5 times since the first quarter of 2024. Quarterly revenue grew from about $20 million to $54.7 million, and funded loan volume rose from approximately $600 million to $1.67 billion in the same period. Garg attributed the reduction in loan origination costs to the expansion of the Tinman AI platform, suggesting Better could achieve $5 million to $10 million in positive adjusted EBITDA monthly if not for macroeconomic disruptions. He stated that Better is at an 'inflection point' and has been rebuilt around technology to lower mortgage origination costs and position the company for scaling.
The shareholder action occurs amidst significant stock volatility following recent leadership changes. Garg believes Better's current valuation does not reflect operational improvements and that changes are necessary to restore investor confidence and protect long-term value. Garg's legal counsel has indicated that the shareholder declarations can be shared with Better's outside counsel on an attorneys'-eyes-only basis for verification of Garg's voting support. However, Ryan Grant, president of NEO Home Loans, dismissed Garg's proposal as 'noise' and a 'battle to control the board,' suggesting it is a distraction from the company's focus on profitability.