Better plans $69M stock raise, UK bank sale

Better Home & Finance Holding Co., the parent of digital lender Better.com, has taken steps to improve its balance sheet, including a stock offering and the planned sale of its U.K.-based bank.

“Our decision to raise capital, simplify our international footprint, and reduce costs will position the company to act decisively on high-conviction growth opportunities without reliance on the equity capital markets for the foreseeable future,” CEO Vishal Garg said in a statement.

The company on Wednesday announced it plans to raise about $69 million in gross proceeds before underwriting discounts, commissions and offering expenses via a public offering of Class A common stock. Better intends to use the net proceeds for growth capital and general corporate purposes, and it will terminate its at-the-market equity program after the deal closes.

Initially, the company is offering 1.875 million shares of its Class A common stock, but underwriters have a 30-day option to purchase up to an additional 281,250 shares to cover over-allotments. The offering price reflects a roughly 3.9% discount to its 30-day volume-weighted average price as of April 7, 2026.

The offering is expected to close Thursday. BTIG and Cantor are acting as joint bookrunning managers for the offering.

Better also said it has classified its U.K.-based bank as held for sale effective in the first quarter and has launched an active sale process, part of what it described as an effort to simplify its international footprint.

On the expense side, the company announced at least $25 million in annualized cost reductions beginning in the second quarter of 2026. Management said the cuts stem from a review of the company’s cost structure as its AI-driven Tinman platform scales and handles a greater share of loan volume.

Better reported preliminary funded loan volume of $1.64 billion for the first quarter of 2026, above prior guidance of $1.40 billion to $1.55 billion. The company said funded loan volume increased 89% year over year, with March funded loan volume reaching $671 million.

As a result of these actions, Better expects to have an estimated cash and cash equivalents balance of $130 million, including $24 million held at its U.K.-based bank. In the fourth quarter of 2025, the total was $99.8 million. The firm said it does not anticipate the need to raise additional capital for the foreseeable future.

The company said it has a clear line of sight to its target of adjusted EBITDA breakeven by the end of the third quarter of 2026. Better reported an adjusted EBITDA loss of $24 million in the fourth quarter of 2025, compared to a loss of approximately $59 million in the fourth quarter of 2024.

Flávia Furlan Nunes reported and wrote this article with drafting assistance from HousingWire Automation, an editorial tool that helps transform announcements and industry data into HousingWire-style news coverage.