Offerpad Reports First Quarter 2025 Results
Renovate delivers record $5.3 million in Q1 revenue up 29% sequentially
TEMPE, Ariz.--(BUSINESS WIRE)--May 05, 2025--
Offerpad Solutions Inc. ("Offerpad") (NYSE: OPAD), a leading tech-enabled platform for residential real estate, today released financial results for the three months ended March 31, 2025.
"In Q1, we delivered balanced results in line with expectations, led by increasing Cash Offer volume and growing contribution margin from our asset-light services," said Brian Bair, Chairman and CEO of Offerpad. "We're focused on building a strong, flexible foundation--enhancing the customer experience, driving efficiency, and scaling programs like Renovate and our Agent Partnership Program--so we're not only operating for today's market, but positioned to accelerate as transaction volume normalizes."
Q1 2025 Highlights include:
-- Improved net loss and adjusted EBITDA 13% or $2.3M and 32% or $3.7M,
respectively, from the prior quarter
-- Gross profit per home sold of $22.8k an improvement of 8% from the prior
quarter
-- Total operating expenses for the quarter decreased to $22.0M from $36.2M
the prior year, a $14.1M or 39% improvement
-- Renovate closed 209 projects in Q1 2025 up 12% versus the prior quarter
generating record revenue of $5.3M
-- Acquisitions from Offerpad's Agent Partnership Program grew to 42% of
total compared to 28% the prior year
-- 671 homes in inventory at the end of Q1 with 13% owned for over 180 days
and not under contract for resale down from 22% at the end of the year
"We're seeing strong early performance in 2025, with revenue growth building on a significantly reduced cost base," said Peter Knag, Offerpad's CFO. "As we ramp up acquisition activity, we're staying disciplined in how we operate: efficient, focused, and growth-minded."
Q1 2025 Financial Results (quarter over quarter)
Q1 2025 Q4 2024 Percentage Change
--------------------------------------- -------- -------- -----------------
Homes acquired 454 384 18%
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Homes sold 460 503 (9%)
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Revenue $160.7M $174.3M (8%)
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Gross profit $10.5M $10.6M (1%)
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Net loss ($15.1M) ($17.3M) 13%
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Adjusted EBITDA ($7.8M) ($11.5M) 32%
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Diluted Net Loss per Share ($0.55) ($0.63) 13%
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Gross profit per home sold $22,800 $21,100 8%
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Contribution profit after interest per
home sold $500 $5,500 (91%)
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Cash and cash equivalents $30.8M $43.0M (28%)
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Q1 2025 Financial Results (year over year)
Q1 2025 Q1 2024 Percentage Change
--------------------------------------- -------- -------- -----------------
Homes acquired 454 806 (44%)
--------------------------------------- -------- -------- -----------------
Homes sold 460 847 (46%)
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Revenue $160.7M $285.4M (44%)
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Gross profit $10.5M $22.6M (53%)
--------------------------------------- -------- -------- -----------------
Net loss ($15.1M) ($17.5M) 14%
--------------------------------------- -------- -------- -----------------
Adjusted EBITDA ($7.8M) ($7.1M) (10%)
--------------------------------------- -------- -------- -----------------
Diluted Net Loss per Share ($0.55) ($0.64) 14%
--------------------------------------- -------- -------- -----------------
Gross profit per home sold $22,800 $26,700 (14%)
--------------------------------------- -------- -------- -----------------
Contribution profit after interest per
home sold $500 $11,900 (96%)
--------------------------------------- -------- -------- -----------------
Cash and cash equivalents $30.8M $68.6M (55%)
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Additional information regarding Offerpad's first quarter of 2025 financial results and management commentary can be found by accessing the Company's Quarterly Shareholder presentation on the Offerpad investor relations website.
Second Quarter 2025 Outlook
Offerpad is providing its second quarter outlook for 2025 as follows:
Q2 2025 Outlook
------------------- ----------------------
Homes Sold 500 to 550
------------------- ----------------------
Revenue $160M to $190M
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Adjusted EBITDA(1) Sequential Improvement
------------------- ----------------------
(1) See Non-GAAP financial measures below for an explanation of why a reconciliation of this guidance cannot be provided.
Conference Call and Webcast Details
Brian Bair, Chairman and CEO, and Peter Knag, CFO, will host a conference call and accompanying webcast on May 5, 2025, at 4:30 p.m. ET. The webcast can be accessed on Offerpad's Investor Relations website. Those interested can register here. Access to a replay of the webcast will be available from the same website address shortly after the live webcast concludes.
About Offerpad
Offerpad, dedicated to simplifying the process of buying and selling homes, is a publicly traded company committed to providing comprehensive solutions that removes the friction from real estate. Our advanced real estate platform offers a range of services, from consumer cash offers to B2B renovation solutions and industry partnership programs, all tailored to meet the unique needs of our clients. Since 2015, we have leveraged local expertise in residential real estate alongside proprietary technology to guide homeowners at every step. Learn more at www.offerpad.com.
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Forward-Looking Statements
Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Offerpad's future financial or operating performance. For example, statements regarding Offerpad's financial outlook, including homes sold, revenue and Adjusted EBITDA, for the first quarter of 2025, and expectations regarding market conditions, strategic imperatives and long-term sustainability and growth are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "pro forma," "may," "should," "could," "might," "plan," "possible," "project," "strive," "budget," "forecast," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "potential" or "continue," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may impact such forward-looking statements include, but are not limited to, Offerpad's ability to respond to general economic conditions; the health of the U.S. residential real estate industry; Offerpad's ability to grow market share in its existing markets or any new markets it may enter; Offerpad's ability to grow effectively; Offerpad's ability to accurately value and manage real estate inventory, maintain an adequate and desirable supply of real estate inventory, and manage renovations; Offerpad's ability to successfully launch new product and service offerings, and to manage, develop and refine its technology platform; Offerpad's ability to maintain and enhance its products and brand, and to attract customers; Offerpad's ability to achieve and maintain profitability in the future; and the success of strategic relationships with third parties; Offerpad's ability to regain compliance with New York Stock Exchange ("NYSE") Rule 802.01B, or failure to comply with other NYSE continued listing rules. These and other important factors discussed under the caption "Risk Factors" in Offerpad's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission on February 25, 2025, and Offerpad's other reports filed with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Offerpad and its management, are inherently
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