Better Home & Finance Holding Company said Wednesday it’s moving to shore up its balance sheet through a mix of stronger-than-expected loan originations, cost reductions, asset sales and new equity.
The company disclosed that it has classified Birmingham Bank as held for sale and is actively working to divest the U.K.-based unit. Better also confirmed it has priced a Class A common stock offering and plans to wind down its at-the-market equity program following the raise. Together, the moves signal a broader effort to streamline operations, improve liquidity and refocus the business on core growth areas.
CEO strikes defiant tone as shares slide on offering news
Shares of Better dropped 14 percent on Wednesday after the company priced an underwritten public offering of 1.875 million shares of Class A common stock.
The offering is expected to generate roughly $60 million in gross proceeds before underwriting discounts and commissions. The company also granted underwriters a 30-day option to purchase up to an additional 281,250 shares to cover potential over-allotments.
The stock closed at $44.84 ahead of the announcement. All shares in the offering are being sold by the company, which said it plans to use the net proceeds for growth initiatives and general corporate purposes. The deal is expected to close on April 9, subject to customary closing conditions, with BTIG and Cantor serving as joint bookrunning managers.
“Sorry, today was tough. Those of you still in this and those of you who just joined, please know tomorrow morning $betr is in BEAST mode,” Vishal Garg, founder and CEO of Better, wrote on X on Wednesday.
“That is the promise I made to our board, to our shareholders, to our amazing product and engineering teams who are true believers and large shareholders, to our teams who crank helping customers 24/7 and own stock, to our retail teams at NEO who have taught me so much in the past year and who own stock, and to myself,” Garg said.
Sorry today was tough. Those of you still in this and those of you who just joined, please know tomorrow morning $betr is in BEAST mode.
That is the promise I made to our board, to our shareholders, to our amazing product and engineering teams who are true believers and large…
— Vishal Garg (@vishal_better) April 8, 2026
Better trims global ambitions to boost efficiency
Better’s decision to sell the bank comes amid a broader pullback across fintech and proptech, where companies that once prioritized rapid expansion are increasingly narrowing their focus to core, revenue-generating operations.
Birmingham Bank, acquired in 2023 as part of Better’s push into international markets, sits outside the company’s core U.S. mortgage origination business and digital underwriting platform. Exiting the unit is expected to simplify operations and free up capital. Garg said the company is repositioning itself to pursue “high-conviction growth opportunities” while reducing reliance on external capital.
Raising cash, cutting costs, chasing breakeven
The sale effort is unfolding alongside a broader balance sheet overhaul.
Better’s public offering is expected to generate roughly $60 million in gross proceeds, while also implementing cost reductions projected to save about $25 million. Together, the moves are aimed at strengthening liquidity, which the company said could reach approximately $130 million on a pro forma basis.
The company also indicated it will wind down its at-the-market equity program following the offering, signaling a shift toward more defined capital planning.
Despite ongoing financial pressure, Better is showing signs of operational improvement. The company reported funded loan volume of $1.64 billion in the first quarter, well above its guidance and representing an 89 percent year-over-year increase.
Executives said the performance gives the company a “clear line of sight” to reaching EBITDA breakeven by the third quarter of 2026, a key milestone after several years of losses.
Better enters new phase after years of expansion
The decision to exit its U.K. banking business highlights how much Better’s strategy has shifted 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 toward capital efficiency and a more streamlined operating model centered on its core platform.
That includes continued investment in its Tinman underwriting engine and its broader push to automate large portions of the mortgage process.
Better’s pivot comes as mortgage and proptech firms navigate a higher-rate environment and tighter capital markets, with many companies placing greater emphasis on profitability and more focused business lines.
For Better, the success of that strategy will depend on whether its improving loan volumes and cost discipline can translate into sustained profitability, without the need for continued asset sales or capital raises.
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