• Key Insight: Learn where Better Home and Finance is cutting $64.2 million in annualized expenses.
• Expert Quote: "With my return, we are channeling the same energy and resilience to drive towards adjusted EBITDA breakeven." — Vishal Garg, founder 
• Forward Look: The company said it would soon embark on its $30 million stock buyback.

Better Home & Finance detailed how it is shaving over $64 million in annualized costs as the lender rebounds from a two-month long proxy battle.

The lender on Tuesday disclosed $1.39 billion in total loan volume for the third quarter, in preliminary results released as part of founder Vishal Garg's comeback initiatives. The company said that loan volume, which would be a 17% decline from the second quarter, compared to a 37% industrywide decrease in origination volume. 

The recent period's production is a 15% increase year-over-year. Of the third quarter volume, $790 million, or 57%, came from the lender's Tinman artificial intelligence platform. 

Better didn't reveal other preliminary figures around revenue or net income, which it's looking to steer into the black for the first time since going public in August 2023. But the company described cuts in Garg's first seven days back amounting to $13 million in annualized cost reductions. 

"With my return, we are channeling the same energy and resilience to drive towards adjusted EBITDA breakeven," said Garg in a press release. 

The founder, whose title was listed as head of product, platform and innovation in the press release, is coming off an unlikely victory in a shareholder battle after being ousted in early August. Garg has laid out a new plan for the company, including an imminent announcement of a new interim CEO. 

Where Better is cutting expenses

The company is planning to trim $5.35 million in monthly expenses for a total of $64.2 million in annualized cuts. Those include:

• $13.2 million in marketing and sales expenses, already implemented;
• $1 million per month, or $12 million in anticipated AI-enabled sales workflow improvements;
• $2.25 million per month, or $27 million in annualized corporate cost reductions; 
• $1 million per month, or $12 million in professional services change.

Better also said four of five potential home equity line of credit partnerships remain viable, after their status was put into question during the proxy battle this summer. That struggle resulted in the so-called Garg Group replacing five company directors and removing interim CEO Daniel Lewis, who held Better's second quarter earnings call in August. 

The new leadership has also pledged a $30 million stock buyback plan, which Better said it would begin this week. Better's stock lifted slightly on news of Garg's return, but was trading around $9.19 per share midday Tuesday, still far from the $27.30 per share the stock was trading around on the eve of Garg's termination in August.