Cash offer and renovation platform Offerpad Solutions Inc. trimmed its first quarter loss by 14 percent while upping its home purchases, but brought in less revenue as it sold fewer homes.
Offerpad reported a $15.1 million Q1 net loss Monday, down from $17.5 million in Q4 2024, with home acquisitions up 18 percent from the previous quarter to 454.
With Q1 home sales down 9 percent from Q4, revenue shrank by 8 percent to $160.7 million.
Brian Bair
Offerpad CEO Brian Bair said the company’s cash offer program “performed as expected,” while “asset light” services like the company’s B-to-B Renovate business, Direct+ buyer program and Agent Partnership Program “contributed significantly to the top and bottom line.”
Offerpad’s Renovate business closed 209 projects in the first three months of the year, up 12 percent from Q4, generating record revenue of $5.3 million.
Bair announced a new partnership with Auction.com in which Offerpad’s Renovate service will become a preferred provider of renovation services for buyers on the platform.
“It’s a meaningful step forward as we help buyers transform properties into move-in-ready homes, expand our renovation business and deliver greater value to buyers, sellers and communities across the country,” Bair said.
Shares in Offerpad, which in the last 12 months have traded for as little 92 cents and as much as $7.88, closed at $1.03 before Monday’s earnings release, and were up 2 percent in after hours trading.
Offerpad was put on notice by the New York Stock Exchange last month that it could be delisted from the exchange because its market capitalization has dropped below $50 million.
With 27.38 million shares outstanding, Offerpad’s price per share would need to rebound to at least $1.83 for the company’s market capitalization to meet the $50 million threshold.
The company said at the time it was confident it would be able to submit a business plan detailing how it will get back into compliance with the stock exchange’s listing standards within 18 months.
Offerpad Q1 2025 acquisitions up, sales down
Source: Offerpad earnings reports.
Offerpad acquired 454 homes during Q1, up 18 percent from Q4 but down 44 percent from a year ago.
Close to half of those acquisitions (42 percent) were driven by Offerpad’s Agent Partnership Program, up from 28 percent a year ago.
While Offerpad sold 43 fewer homes during Q1 2025 than it did in Q4 2024, gross profit per home sold was up 8 percent quarter over quarter to $22,800.
Offerpad finished the quarter with 671 homes in inventory, but said only 13 percent were owned for more than 180 days, down from 22 percent at the end of the year.
Company executives said they expect home sales to rebound to between 500 and 550 sales in Q2.
Offerpad trims losses and expenses as revenue drops
Source: Offerpad earnings reports.
Although slower Q1 sales dented revenue, operating expenses for the quarter were down 39 percent from a year ago to $22 million, helping Offerpad trim $2.4 million from its Q4 loss.
Offerpad executives said they expect Q2 revenue of $160 million to $190 million, and “sequential improvement” in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
At negative $7.8 million, Q1 EBITDA represented a 32 percent improvement from $11.5 million in Q4.
