According to HousingWire, Better Home and Finance Holding Company has given the green light for a stock buyback program worth up to $30 million. The plan starts with an initial $10 million phase focused on repurchasing the company's Class A common stock, with the authorization stretching through October 2027. The company says these buybacks will be dependent on factors like the stock's trading price, market volume, how much cash Better has available, and how quickly they can execute their cost-cutting plans.
This buyback announcement comes at an interesting moment for Better. Founder Vishal Garg recently regained control of the board this week and is now serving as the company's chief platform, product and innovation officer. Garg had previously been removed from his CEO position in early August in favor of Daniel Lewis, who was backed by activist investors. Now with Garg back in a leadership position, the company is pursuing what they're calling "Better 2.0," which ties shareholder returns directly to operational savings and asset sales.
Part of Better's strategy involves divesting its United Kingdom banking operations. A group of buyers has already placed 10 million pounds into escrow for the acquisition of Birmingham Bank, though the deal still needs regulatory approval and other conditions to close. According to HousingWire's reporting, Better has been accelerating cost-cutting efforts since Garg's return, trimming their marketing budget and reducing spending with large third-party vendors in areas like legal services and data services. The company says they're targeting additional monthly reductions of about $1 million on what they describe as a contribution-margin-neutral basis.
Garg has stated publicly that the buyback program will be funded through these cost savings and capital releases from asset sales. He's also commented that Better currently trades at less than 1x revenue compared to its peers, which he views as an undervaluation. His argument is that by reducing the number of outstanding shares, all shareholders benefit as the company works toward what he calls fair value. Garg also mentioned his belief that there's a significant opportunity within Better to build out an AI-native fintech platform that could unlock considerable value that management needs to capitalize on to restore investor confidence.
What I'm seeing locally here in the Bay Area and throughout the East Bay is that these kinds of corporate restructurings in the mortgage and fintech space remind us how competitive and pressured this industry has become. When companies like Better are making these kinds of strategic moves, it typically signals broader challenges in how they're positioned in the market. For folks buying or selling homes in Fremont and our region, what matters most is whether these larger players continue to innovate and compete effectively to keep borrowing costs reasonable and the mortgage process smooth, which ultimately affects all of us in this market.
