Key facts
- Better Home & Finance Holding Co. authorized a stock buyback program of up to $30 million.
- The buyback program will begin with an initial $10 million phase.
- The authorization runs through Oct. 8, 2027.
- Founder Vishal Garg regained control of the board of directors this week.
- Better is pursuing the sale of its U.K. bank subsidiary, Birmingham Bank.
- The company has accelerated cost optimization efforts, including marketing and vendor spending reductions.
Better Home & Finance Holding Co. has authorized a share repurchase program of up to $30 million as it implements cost-cutting measures and seeks to sell its U.K. bank subsidiary. The digital mortgage firm announced Thursday that the buyback will commence with an initial $10 million phase.
The authorization is valid until October 8, 2027, and is contingent on factors such as trading price, volume, company liquidity, and the progress of its cost-saving initiatives.
This development occurs under the renewed leadership of founder Vishal Garg, who recently regained control of the board of directors. Garg had been removed as CEO in early August, with activist investor Daniel Lewis taking over the role.
Earlier this week, Garg unveiled "Better 2.0," a strategy that ties capital returns to shareholders with operational savings and asset sales, including the planned divestiture of its U.K. banking operations. A consortium has placed 10 million pounds in escrow for the proposed acquisition of Birmingham Bank, though the deal awaits regulatory approval and other closing conditions.
Better stated that cost optimization efforts have been accelerated since Garg's return, citing reductions in marketing budgets and spending on third-party legal and data services. The company projects additional monthly savings of approximately $1 million on a contribution-margin-neutral basis.
Garg indicated that the buyback plan will be funded by cost savings and capital releases. He also expressed belief in a "$100 billion AI-native fintech" opportunity within Better that needs to be "monetized and unlocked" to restore investor confidence.
The company views the repurchase plan as a response to a perceived disconnect between its current valuation and that of its peers, with Garg noting that Better trades at less than one times revenue. He argued that this valuation does not reflect the firm's potential and that reducing the number of outstanding shares will benefit all shareholders as the company works towards fair value.