Better Home Finance is selling a British bank, raising $60 million, cutting costs, restructuring, increasing liquidity and targeting profitability by 2026.
Better Home and Finance Holding Company announced Wednesday that it is working to strengthen its balance sheet through a combination of better-than-expected loan originations, cost reductions, asset sales and new equity.
The company said it has classified Bank of Birmingham as held for sale and is actively working to sell the UK-based unit. Mr. Better also confirmed that he plans to determine the public offering price for Class A common stock and reduce the market share program following the increase. Taken together, these moves represent a broader effort to streamline operations, improve liquidity and refocus the business on core growth areas.
Stocks fall on news announcement, CEO shows defiant tone
Better’s stock price fell 14% Wednesday after the company set an underwritten public offering price for 1,875,000 shares of its Class A common stock.
The offering is expected to generate gross proceeds of approximately $60 million before discounts and commissions. The company also granted the underwriters a 30-day option to purchase up to an additional 281,250 shares to cover potential over-allotments.
Shares closed at $44.84 before the announcement. All shares in the offering will be sold by the company, which plans to use the net proceeds for growth initiatives and general corporate purposes, the company said. The transaction is expected to close on April 9, subject to customary closing conditions, with BTIG and Kantar acting as joint bookkeepers.
“We’re sorry, but today has been tough. For those of you who are still joining, and those who just joined, please know that $betr will be in BEAST mode tomorrow morning,” Better founder and CEO Vishal Garg wrote on Wednesday’s X.
“This is a promise to our board of directors, to our shareholders, to our amazing product and engineering teams who are true believers and major shareholders, to our team who works 24/7 to support our customers and in whom we own a stake, to our retail team at NEO who have taught me so much over the past year and in whom I own a stake, and to myself,” Garg said.
I’m sorry, today was difficult. Whether you’re still participating or have recently joined, please let us know tomorrow morning. $betr BEAST mode.
That’s the promise I made to our board of directors, to our shareholders, and to our great product and engineering teams with true belief and at scale.
— Vishal Garg (@vishal_better) April 8, 2026
Better align global goals to increase efficiency
Mr. Beter’s decision to sell the bank comes amid widespread setbacks across fintech and proptech, with companies that once prioritized rapid expansion narrowing their focus to their revenue-generating core businesses.
Bank of Birmingham, acquired in 2023 as part of Better’s expansion into international markets, sits outside of the company’s core U.S. mortgage origination business and digital underwriting platform. The exit from the division is expected to simplify operations and free up capital. Garg said the company is repositioning itself to pursue “convincing growth opportunities” while reducing dependence on external capital.
Raise funds, reduce costs, and pursue break-even points
This sale effort is being rolled out in parallel with a broader balance sheet review.
Better’s initial public offering is expected to generate gross proceeds of approximately $60 million, while cost reductions expected to result in approximately $25 million in savings. Together, these moves are aimed at strengthening liquidity, which the company says could reach approximately $130 million on a pro forma basis.
The company also indicated that it plans to scale back its market equity program after the offering, signaling a shift to a more defined capital plan.
Despite continuing financial pressures, Better is showing signs of improving operations. The company reported $1.64 billion in loans in the first quarter. This is well ahead of guidance and represents an 89% increase year-over-year.
Executives said the results gave the company a “clear outlook” to reach EBITDA breakeven by the third quarter of 2026, a key milestone after several years of losses.
It is better to enter a new stage after many years of expansion.
The decision to exit the UK banking business highlights how Better’s strategy has changed in recent years.
In the years leading up to its public debut, the company pursued growth through international expansion and vertical integration. More recently, the focus has shifted to a more streamlined operating model centered around capital efficiency and core platforms.
This includes continued investment in the Tinman underwriting engine and extensive efforts to automate large portions of the mortgage process.
Mr. Better’s shift comes as many companies focus on profitability and more concentrated lines of business, with mortgage lenders and proptech companies navigating a higher interest rate environment and tighter capital markets.
To be better, the success of that strategy depends on whether improvements in loan volumes and cost discipline lead to sustained profitability without the need for ongoing asset sales or capital raising.
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