Better 2.0: Better Home & Finance Reports $22.56 Million in Annualized Cost Savings
Better Home & Finance Holding Company a provider of AI-powered mortgage and home equity financing solutions, has released the second installment of its Better 2.0 Weekly Report Card, outlining progress on cost reductions, sales efficiency, artificial intelligence (AI) initiatives, business expansion, and share repurchases.
The company publishes the report card every Tuesday to provide a public account of its turnaround strategy, including completed actions, outstanding commitments, and changes to implementation timelines. Better plans to continue issuing weekly updates until it reaches adjusted EBITDA breakeven.
Since October 13, the company has initiated additional measures expected to generate $9.36 million in annualized savings. Combined with approximately $13.2 million in annualized expense reductions initiated during the first week, the latest measures bring the expected total to $22.56 million.
Better is targeting approximately $64.2 million in annualized savings when all planned initiatives are fully implemented. The company intends to achieve this objective through improvements in marketing and sales efficiency, AI-enabled sales workflows, corporate expenditure reductions, and lower professional services costs.
Better Advances Cost Reduction Strategy
The second weekly report card highlights progress across several operational priorities as Better continues working toward its broader financial objectives.
Vishal Garg, representing Better, said the company was continuing to simplify operations and improve efficiency through successive cost-reduction measures.
According to Garg, the initiatives launched during the first two weeks are expected to deliver $22.56 million in annualized expense reductions. The company expects to capture additional savings as the remaining initiatives progress toward implementation.
Garg also emphasized that Better intends to demonstrate the results of its turnaround through continued execution and regular reporting of its progress.
Marketing and Sales Efficiency
Marketing and sales efficiency remain central components of Better’s cost optimization strategy. Following the initial round of reductions, the company is monitoring the savings expected from approximately $13.2 million in annualized expense reductions initiated during the first week.
The next stage involves continuing to evaluate performance and optimize spending. Better aims to improve the efficiency of its customer acquisition and sales activities while maintaining its broader business objectives.
The company has identified marketing and sales operations as important areas for improving cost discipline as it works toward sustainable financial performance.
AI Sales Workflows Target $12 Million in Annualized Savings
Better is also advancing its AI-driven sales workflow initiatives to reduce operating expenses and improve productivity.
Within two weeks, the company completed actions associated with $250,000 in savings. Additional measures intended to generate $750,000 per month are in development.
The company expects the actions initiated to date to deliver approximately $3 million in annualized savings, while continuing to work toward a broader target of $12 million annually from AI sales workflow improvements.
Better’s strategy centers on using technology to streamline processes, improve operational efficiency, and reduce the resources required to manage customer interactions and loan applications.
The company’s AI-native platform, Tinman®, supports its mortgage and home equity lending operations. Better also offers Betsy®, an AI loan agent designed specifically for the mortgage industry, which helps provide application updates, answer customer questions, and move loan applications forward around the clock.
The company expects continued development of AI-enabled workflows to support its operational improvement program.
Corporate Cost Reductions
Corporate expenditure reductions represent another major component of Better’s turnaround strategy.
Within three weeks, the company reported $2.25 million in reductions, equivalent to $27 million on an annualized basis. The company has also initiated measures expected to generate $3 million in annualized savings and is progressing toward its broader annualized corporate cost-reduction goal of $27 million.
These efforts are intended to improve the company’s expense structure as it works toward adjusted EBITDA breakeven.
Better’s weekly reporting process is designed to provide visibility into the progress of individual initiatives, allowing investors and other stakeholders to follow the implementation of its cost-saving measures.
Professional Services Expenses
Better has initiated professional services cost reductions expected to generate $3.36 million in annualized savings. The company is working toward a broader target of $12 million in annualized savings in this category.
The report card identifies a four-week milestone for achieving $1 million in reductions.
The professional services initiative forms part of the company’s wider effort to control operating costs and improve financial efficiency. Better intends to track progress against its targets and report changes to its commitments and timelines in subsequent weekly updates.
Tinman and HELOC Expansion
Alongside its cost-reduction efforts, Better is progressing with initiatives involving its Tinman technology platform and home equity lines of credit (HELOCs).
The company is finalizing revised launch milestones and reported that four of five major fintech partners remain viable prospects.
Better has also signed 33 mortgage brokers onto its wholesale platform. The company previously pursued a broker portal strategy but has shifted toward an API-driven approach to pricing and eligibility. The updated approach is scheduled to launch in November and is intended to generate additional demand from the mortgage broker community.
The company is advancing partner discussions, with one partner’s launch being executed while a legal agreement remains under negotiation. Progress is also being made with three other partners.
More than 10 brokers are currently driving volume, while Better continues working with the remaining brokers to strengthen adoption and establish its wholesale platform as a preferred option.
The revised strategy reflects the company’s efforts to expand distribution, improve partner integration, and increase access to its mortgage products through technology-enabled channels.
Share Repurchase Program
Better also reported activity under its share repurchase program.
As of Monday, October 19, the company had repurchased 837,718 shares during the preceding week. The repurchased shares represented approximately 4.4% of total shares outstanding and 6.2% of Class A shares.
Better intends to continue share repurchases in conjunction with the realization of cost savings.
The program represents another component of the company’s current financial strategy as it pursues operational improvements and works toward its longer-term profitability objectives.
Weekly Reporting to Continue
Better will continue publishing its management scorecard every Tuesday until the company achieves adjusted EBITDA breakeven. Future reports are expected to detail completed initiatives, outstanding commitments, and any adjustments to implementation schedules.
The next weekly report card will focus on operational efficiency and cost cutting, extending the company’s reporting on its turnaround program.
Through the Better 2.0 initiative, the company is seeking to combine expense reductions, technology-driven productivity improvements, business expansion, and capital allocation measures to strengthen its financial position.
The company has identified approximately $64.2 million in annualized savings as its target once all initiatives are fully implemented. The timing and ultimate realization of these savings remain subject to execution and other factors affecting the business.
About Better Home & Finance Holding Company
Better Home & Finance Holding Company (NASDAQ: BETR) describes itself as an AI-native mortgage and home equity finance platform and the first fintech company to fund more than $110 billion in loan volume.
Since 2016, the company has used its Tinman® technology platform to pursue its mission of making homeownership cheaper, faster, and easier for Americans.
Tinman enables customers to review mortgage rate options within seconds, obtain pre-approval in minutes, lock in rates, and complete a loan in as little as three weeks.
Better also offers Betsy®, an AI loan agent powered by Tinman® MCP and developed exclusively for the mortgage industry. The technology provides timely application status updates, answers customer questions, and supports loan application progress 24 hours a day, seven days a week, throughout the year.
The company’s mortgage products include government-sponsored enterprise (GSE)-conforming loans, Federal Housing Administration (FHA) loans, Department of Veterans Affairs (VA) loans, jumbo mortgages, non-qualified mortgage (Non-QM) loans, and home equity loans.
Better serves customers across all 50 U.S. states. Additional information is available through the company’s social media accounts, including @tinmanAI on X and @betterdotcom on Instagram and TikTok.
Forward-Looking Statements
This article contains forward-looking statements based on the company’s announced plans and expectations. These include anticipated cost savings, financial performance, progress toward adjusted EBITDA breakeven, and the implementation of operational initiatives.
Better’s original announcement also identifies forward-looking statements concerning third-quarter 2026 financial results, including adjusted EBITDA, loan volume, total net revenues, the planned sale of its UK bank subsidiary, Birmingham Bank, and leadership transitions and related management changes.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from current expectations. These risks include factors described in the company’s Annual Report on Form 10-K for the year ended December 31, 2025, and subsequent filings with the U.S. Securities and Exchange Commission.
The company cautions investors against placing undue reliance on these statements, which speak only as of the date they are made. Except where required by law, Better undertakes no obligation to update or revise forward-looking statements in response to new information, changing expectations, or future events.
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