[Management View]
Offerpad reported $133 million in revenue for Q3 2025, with 367 homes sold and a gross margin of 7%. The company achieved a 37% reduction in operating expenses year-over-year, excluding property costs. Management emphasized the strategic focus on asset-light services, including HomePro, Renovate, and Direct Plus, to enhance margins and revenue. AI deployment is set to improve inspection cycles and pricing accuracy.

[Outlook]
For Q4, Offerpad projects revenue between $100 million and $125 million, with 300 to 350 homes sold. The company aims to reach approximately 1,000 transactions per quarter as a strategic inflection point for profitability. AI and technology integration are expected to drive future growth and operational efficiency.

[Financial Performance]
Offerpad's Q3 revenue of $133 million and 367 homes sold were in line with expectations. The gross margin was 7%, translating to $9.3 million in gross profit. Operating expenses were reduced by 37% year-over-year. Adjusted EBITDA improved sequentially by 4% to a loss of $4.6 million.

[Q&A Highlights]
Question 1: What are the top priorities for ramping up HomePro, Renovate, and Direct Plus, and where is the biggest upside?
Answer: The focus is on maximizing conversion across all services. HomePro shows positive signs of meeting sellers' needs, while Direct Plus and Renovate are expected to expand as the market loosens. The cash offer remains a strong product, with ongoing improvements in efficiency and timing.

Question 2: How should we think about the mix between SLA services and traditional cash offer deals to reach 1,000 transactions?
Answer: The current mix is roughly one-third asset-light and two-thirds cash offer. The goal is to increase asset-light services to over 50% of transactions by next year. The company is working towards providing more detailed guidance on product volumes.

Question 3: What are the hiring needs for HomePro, and what are the early impacts on conversion rates?
Answer: HomePro leverages agents in the field, minimizing internal headcount needs. Early data shows a preference for cash offers, but the company is prepared for shifts in macro conditions. AI and technology are being used to streamline processes and improve efficiency.

Question 4: What is the environment needed to achieve breakeven, and is it possible next year?
Answer: The target is 1,000 transactions with a mix of 50% asset-light services. Significant fixed cost reductions have been achieved, and further cost control is expected. The company is optimistic about reaching breakeven in 2026.

Question 5: What is the rationale for appointing Chris Carpenter as COO, and what transformations are needed?
Answer: Chris Carpenter's role focuses on improving conversion, preparing for scalable growth, and enhancing operational efficiency. The company aims to integrate its product lines more effectively and leverage fresh perspectives for smarter growth.

[Sentiment Analysis]
Analysts showed interest in Offerpad's strategic priorities and AI integration. Management's tone was optimistic about future growth and operational improvements, emphasizing disciplined execution and cost control.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | YoY Change |
|-----------------------|---------|---------|------------|
| Revenue | $133M | N/A | N/A |
| Homes Sold | 367 | N/A | N/A |
| Gross Margin | 7% | N/A | N/A |
| Operating Expenses | $12M | N/A | -37% |
| Adjusted EBITDA Loss | $4.6M | N/A | +4% |

[Risks and Concerns]
The primary risks include market volatility, interest rate fluctuations, and the ability to scale asset-light services effectively. The company must also manage the integration of AI and technology to maintain operational efficiency.

[Final Takeaway]
Offerpad is strategically focused on expanding its asset-light services and integrating AI to enhance operational efficiency and pricing accuracy. The company aims to reach 1,000 transactions per quarter as a key milestone for profitability. While market conditions remain challenging, Offerpad's disciplined execution and cost control position it well for future growth. The appointment of Chris Carpenter as COO is expected to drive transformation and scalability, aligning with the company's long-term goals.