Vishal Garg Secures Majority Shareholder Support to Reconstitute Better.com Board

Quick Summary

Vishal Garg has secured majority shareholder support to reconstitute the board of Better Home & Finance. The plan includes Garg working for a $1 salary until profitability, a $30 million stock buyback, and a $5 million personal investment to restore shareholder value through AI-driven cost reductions.

How does Vishal Garg plan to restore Better.com shareholder value?

Vishal Garg aims to restore shareholder value by implementing a comprehensive turnaround strategy focused on profitability and cost efficiency. Central to this plan is Garg's commitment to work for a $1 salary until the company achieves profitability, directly aligning his interests with those of the shareholders. The proposal also includes a $30 million stock buyback program and a personal investment of $5 million from Garg as part of a 10b5-1 plan.

Operationally, the strategy leverages the Tinman AI platform to maintain the company's improved cost structure. Key metrics from the source include:

• Reduction in loan production costs from $12,000 to less than $3,000.
• Growth in quarterly revenue from $20 million in Q1 2024 to $54.7 million in Q2 2026.
• Increase in funded loan volume from $600 million to $1.67 billion.
• Expected $74 million in gross proceeds from the sale of the UK banking business.

What board changes are being demanded by the majority shareholders?

Vishal Garg has secured signed declarations from shareholders representing a majority of the company's voting power to force a reconstitution of the Board of Directors. The demand requires the resignation of all current directors except for Garg himself, Michael Farello, and Hugh Frater. This new board would be tasked with launching a retained search for a long-term CEO, allowing Garg to eventually transition into a role as Chairman or Chief Product and Innovation Officer.

The shareholder action, supported by legal counsel Alex Spiro, emphasizes the need for leadership that reflects the operational improvements already achieved. Garg notes that revenue and funded loan volume have increased by more than 2.5x since early 2024. If the board does not voluntarily comply with these changes, the supporting shareholders are prepared to call a special meeting to exercise their voting rights.

How is Tinman AI impacting Better's financial performance?

Tinman AI serves as the technological foundation for Better's cost transformation, enabling the company to scale while spreading fixed technology costs across a larger base of funded loans. By reducing the cost to produce a loan by 75%, the platform has moved the company closer to adjusted EBITDA break-even. Garg believes that without specific macroeconomic disruptions, the company would currently be generating between $5 million and $10 million in positive adjusted EBITDA per month.

“Better is at an inflection point,” said Garg. “We spent years rebuilding this company around technology, dramatically lowering the cost to originate a mortgage and putting Better in a position to scale. I am prepared to work for $1 until we are profitable, invest another $30 million alongside shareholders and finish the turnaround we started. Once that work is complete, the Board should select the best long-term CEO for Better and I will move into a role where I can continue driving product and innovation.”

FF NEWS TAKE:

This move by Vishal Garg represents a high-stakes attempt to reclaim control of the company he founded, backed by significant operational improvements. The reduction in loan production costs to under $3,000 is a legitimate technological milestone that moves the needle in the mortgage industry. However, the success of this board coup will depend on whether the market views Garg's return as a stabilizing force or a return to past volatility.