UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number 001-39641 Offerpad Solutions Inc. (Exact name of registrant as specified in its charter) Delaware 85-2800538 (State ...

Financial Data and Key Metrics Changes - In Q4 2024, total revenue was $174 million, a 28% decline year-over-year, with homes sold decreasing by 29% [23][24] - For the full year, revenue totaled $919 million, reflecting a 30% decrease from 2023, while the net loss was $62 million, a 47% improvement compared to the previous year [24][28] - Gross margin for Q4 was 6.1%, with a full-year gross margin of 7.9%, representing a 47% improvement from the prior year [26][28] - Adjusted EBITDA loss for Q4 was $11.5 million, a sequential improvement of $5.3 million, while the full-year adjusted EBITDA loss was $29.2 million, a 65% improvement over 2023 [28][29] Business Line Data and Key Metrics Changes - The asset-light services, including the B2B renovate business and agent partnership program, contributed over 33% of total contribution profit after interest in 2024 [22] - The renovate business generated $18 million in revenue for the full year, up 49% year-over-year, with average revenue per renovation increasing from $11,000 to over $22,000 [17][22] Market Data and Key Metrics Changes - The residential resale volumes are down almost 40% from pandemic highs, impacting overall market conditions [7] - The company is expanding its buy box criteria to capture increased market activity, focusing on acquiring homes in the $250,000 to $700,000 price range [11][37] Company Strategy and Development Direction - The company is focused on diversifying revenue beyond its core cash offer business to create stability across market cycles [10] - Strategic efforts include optimizing operations, managing resources effectively, and enhancing product delivery through technology [9][13] - The company aims to ramp up acquisitions to 1,000 homes per quarter while maintaining a high-quality inventory portfolio [12][45] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about a slight increase in transaction volumes as the spring selling season begins, despite current market challenges [65] - The company anticipates first-quarter revenue to be in the range of $150 million to $170 million, with 450 to 500 homes sold [29][30] Other Important Information - The company ended Q4 with 677 homes in inventory, with 22% owned for over 180 days and not under contract for resale [21] - Unrestricted cash totaled $43 million at the end of the quarter, with total liquidity exceeding $85 million [28] Q&A Session Summary Question: Can you provide more detail on how you're adjusting the buy box and the systems in place? - The company is moving up in price range to capture buyers transitioning between homes, expanding the buy box from $200,000-$500,000 to $250,000-$700,000 [36][37] Question: How should we think about the ramp to 1,000 acquisitions per month? - The target remains 1,000 acquisitions, but the company will not reach that in Q1 or Q2, with expectations to ramp up sequentially throughout the year [43][45] Question: How much is the 1,000 acquisition target dependent on the pending capital raise? - The company has a path forward regardless of capital raise outcomes, maintaining strong relationships with asset-backed partners [50][52] Question: What is the biggest factor driving home acquisition strategy? - The company is focusing on acquiring homes that can be renovated and sold quickly, avoiding high HOA properties and townhomes due to affordability issues [66][68] Question: Can you clarify the adjusted EBITDA guidance for Q1? - Adjusted EBITDA is expected to improve sequentially across the year, with specific guidance for Q1 provided [70][72]

Offerpad Solutions Inc. (OPAD) came out with a quarterly loss of $0.63 per share versus the Zacks Consensus Estimate of a loss of $0.53. This compares to loss of $0.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -18.87%. A quarter ago, it was expected that this company would post a loss of $0.44 per share when it actually produced a loss of $0.49, delivering a surprise of -11.36%.Over the last four quarters, the company ha ...

Q4 2024 UPDATE INVESTOR PRESENTATION NYSE : OPAD 1 Disclaimer Forward-Looking Statements Certain statements in this Presentation 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 Solutions Inc.'s (the "Company") plans, strategies, business prospects, market opportunity and future financial or operating performance. Statements using words such as "may," "should," "co ...

Financial Performance - In FY 2024, Offerpad reported a net loss improvement of 47%, or $55 million, compared to the prior year[1]. - Revenue for FY 2024 was $918.8 million, a decrease of 30% from $1.314 billion in FY 2023[7]. - Total operating expenses decreased by 32% to $118.2 million in FY 2024, down from $174.6 million in FY 2023[4]. - Net loss for the year ended December 31, 2024, was $62,159, a significant improvement from a net loss of $117,218 in 2023, representing a 47% reduction[19]. - Net cash provided by operating activities decreased to $20,833 in 2024 from $261,632 in 2023, indicating a decline of approximately 92%[19]. - The company reported a significant reduction in debt repayments, totaling $829,461 in 2024, down from $1,286,795 in 2023, reflecting a decrease of approximately 36%[19]. - Offerpad reported a GAAP net loss of $17,325,000 for the three months ended December 31, 2024, compared to a net loss of $15,441,000 for the same period in 2023[40]. - The adjusted net loss for the same period was $17,216,000, with an adjusted net loss margin of 9.9%[40]. - Offerpad's adjusted net loss for the year ended December 31, 2024, was $62,399,000, an improvement from $117,286,000 in 2023[40]. Profitability Metrics - Gross profit per home sold increased by 40% to $26,700 in FY 2024, up from $19,100 in FY 2023[7]. - The contribution profit after interest per home sold was $11,500 in FY 2024, compared to a loss of $13,900 in FY 2023[7]. - Gross profit for the year ended December 31, 2024, was $72,195, slightly up from $70,181 in 2023, resulting in a gross margin increase to 7.9% from 5.3%[33]. - Adjusted gross profit for the year was $80,126, compared to $20,127 in 2023, showing a substantial increase[33]. - Contribution profit for the year was $53,739, a significant recovery from a loss of $14,472 in 2023[33]. - Contribution profit after interest for 2024 was $31,123, compared to a loss of $50,919 in 2023, indicating a strong turnaround[33]. - Adjusted EBITDA for the three months ended December 31, 2024, was $(11,483,000), reflecting an adjusted EBITDA margin of (6.6%) compared to (2.9%) in the same period of 2023[40]. - The company’s adjusted EBITDA for the year ended December 31, 2024, was $(29,222,000), showing a significant reduction from $(82,387,000) in 2023[40]. Operational Metrics - Homes acquired in FY 2024 totaled 2,443, a decrease of 13% from 2,812 homes acquired in FY 2023[7]. - Homes sold in 2024 totaled 2,707, down from 3,674 in 2023, reflecting a decrease of about 26%[33]. - For Q4 2024, revenue was $174.3 million, down 28% from $240.5 million in Q4 2023[6]. - The time to cash (TTC) improved by 18% year over year, coming in at 116 days[4]. - Offerpad's first quarter 2025 outlook projects homes sold between 450 to 500 and revenue between $150 million to $170 million[9]. Cash and Liquidity - Cash and cash equivalents as of December 31, 2024, were $43.0 million, a decrease of 43% from $76.0 million in the prior year[7]. - Cash, cash equivalents, and restricted cash at the end of the period were $73,626, down from $79,934 at the beginning of the period[19]. - Cash payments for interest remained relatively stable at $24,464 in 2024, compared to $24,730 in 2023[19]. Other Financial Information - Interest expense for the three months ended December 31, 2024, was $4,084,000, down from $5,154,000 in the same period of 2023[40]. - The company experienced a decrease in net loss margin from 8.9% in 2023 to 6.8% in 2024[40]. - Amortization of stock-based compensation for the year ended December 31, 2024, was $8,080,000, compared to $7,915,000 in 2023[40]. - The change in fair value of warrant liabilities was $109,000 for the three months ended December 31, 2024[40]. - Holding costs incurred on homes sold included insurance, utilities, and property taxes, impacting overall financial performance[39].

Financial Data and Key Metrics - Revenue for Q3 2024 was at the top of guidance, driven by a mix of products including cash offers, B2B Renovate, Direct Plus, and the Agent Partnership Program [6] - Gross margin was 8.2%, with gross profit at $17.1 million, down 29% YoY and 22% QoQ [36] - Adjusted EBITDA loss improved by 53% YoY to $6.2 million, with a slight decrease of $1.8 million QoQ, including a one-time restructuring cost of $700,000 [39] - The company ended Q3 with $49 million in unrestricted cash and over $90 million in total liquidity [40] Business Line Performance - Asset-light services now make up 30% of total contribution margin after interest, with continued expansion of the Agent Partnership Program and technology enhancements [9] - Offerpad Renovate completed 227 projects in Q3, generating over $4 million in revenue, bringing the 2024 total to $14 million, surpassing the 2023 total of $12 million [24] - The Agent Partnership Program's Pro tier grew quarterly requests and acquisitions to 26% and 33% of total, respectively [22] - Direct Plus partners showed increased buying activity, signaling early signs of market recovery [16] Market Performance - The company expects a 15% to 20% increase in resale market transaction volume in 2025, reaching 4.3 million to 4.5 million transactions [16] - Markets in Texas, Atlanta, and the Carolinas have shown resilience, despite the impact of hurricanes in Florida and the Carolinas [65] - The company anticipates a busier spring selling season in 2025, driven by rate relief, easing inflation, and pent-up demand [15] Strategic Direction and Industry Competition - The company is focused on diversifying revenue, adjusting the buy box, and managing acquisition pace to address market uncertainty [11] - Offerpad is strategically expanding its buy box and raising acquisition volume, targeting a return to a run rate of approximately 1,000 acquisitions per quarter by Q1 2025 [19] - The company has introduced significant improvements to the customer journey, including providing an estimated offer range within minutes and scheduling inspections instantly [20] Management Commentary on Operating Environment and Future Outlook - Management remains optimistic about the market transition expected in the coming quarters, with a shift anticipated as the Fed enters a rate-cutting cycle [14] - The company expects mortgage rate volatility to continue through Q4 2024, stabilizing in 2025 [15] - Offerpad is focused on achieving positive EBITDA and cash flow in any real estate environment, with a strong emphasis on cost efficiency and operational improvements [31][38] Other Important Information - The impact of Hurricane Helene and Milton on East Coast markets was minimal, with no material damage to the portfolio [17] - Customer satisfaction remained strong, with a 91% satisfaction score and steady monthly request volume [18] - The company has achieved significant cost reductions, with annual operating expenses lowered by nearly $70 million in 2023 and an additional $45 million in savings expected in 2024 [38] Q&A Session Summary Question: Assumptions for 2025 Outlook - The company expects pent-up demand from buyers and sellers, with mortgage rates stabilizing in 2025 after volatility in 2024 [46][47] - Offerpad anticipates a modest increase in transaction volumes to 4.2 million to 4.4 million in 2025, driven by a loosening of the spring selling season [49] Question: Path to Profitability - The company is focused on cost reductions and increasing acquisition volumes to achieve adjusted EBITDA profitability and positive free cash flow [51][52] - Offerpad targets a return to 1,000 acquisitions per quarter, which, combined with cost efficiencies, is expected to drive profitability [52] Question: Impact of NAR Settlement on Commissions - The NAR settlement has led to some reduction in commissions, with early signs of a 50 basis point decrease on the buy side [61] - Offerpad has maintained original underwritten commissions but will continue to monitor the impact of the settlement [62] Question: Market Resiliency - Markets in Texas, Atlanta, and the Carolinas have shown resilience, while areas with the highest home price appreciation have taken longer to stabilize [65][66] Question: Adjusting to Moderating Home Price Appreciation - The company remains focused on margins rather than volume, targeting specific types of properties that are expected to perform well [69] Question: Capital Raising Strategy - Offerpad is focused on cost reductions and increasing acquisition volumes before considering capital markets opportunities for further growth [72]

分组1 - Offerpad Solutions Inc. reported a quarterly loss of $0.49 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.44, but an improvement from a loss of $0.73 per share a year ago, indicating an earnings surprise of -11.36% [1] - The company generated revenues of $208.07 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 1.41%, although this represents a decline from year-ago revenues of $234.23 million [2] - Offerpad Solutions shares have declined approximately 69.6% year-to-date, contrasting with the S&P 500's gain of 20.1% [3] 分组2 - The earnings outlook for Offerpad Solutions is mixed, with the current consensus EPS estimate for the upcoming quarter at -$0.43 on revenues of $207.78 million, and -$2.01 on revenues of $949.44 million for the current fiscal year [7] - The Real Estate - Operations industry, to which Offerpad belongs, is currently ranked in the top 38% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Another company in the same industry, Redfin, is expected to report a quarterly loss of $0.20 per share, with revenues projected to be $280.21 million, reflecting a year-over-year increase of 4.2% [9]

Offerpad. SOLD INVESTOR PRESENTATION 1 Q3 2024 UPDATE NYSE : OPAD Disclaimer 2 Forward-Looking Statements Certain statements in this Presentation 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 Solutions Inc.'s (the "Company") plans, strategies, business prospects, market opportunity and future financial or operating performance. Statements using words such as "ma ...

Financial Performance - Revenue for Q3 2024 was $208.1 million, a decrease of 11.2% from $234.2 million in Q3 2023[7] - Gross profit for Q3 2024 was $17.1 million, down 28.5% from $24.0 million in Q3 2023[7] - Net loss for Q3 2024 was $13.5 million, compared to a net loss of $20.0 million in Q3 2023, representing a 32.8% improvement[7] - Operating expenses for Q3 2024 were $26.1 million, down 40.1% from $43.5 million in Q3 2023[7] - Net loss for the third quarter of 2024 was $44.834 million, a decrease from a net loss of $101.777 million in the same period of 2023[11] - Revenue decreased by $26.2 million, or 11.2%, to $208.1 million for the three months ended September 30, 2024, compared to $234.2 million for the same period in 2023[94] - Net loss for the three months ended September 30, 2024, was $13.5 million, a decrease of 32.3% from a net loss of $20.0 million in the same period in 2023[94] - Revenue for the nine months ended September 30, 2024, was $744.5 million, a decrease of 30.7% from $1,073.9 million in the same period in 2023[102] - The company recorded a net loss of $44.8 million for the nine months ended September 30, 2024, a decrease of 55.9% from a net loss of $101.8 million in the same period in 2023[102] Assets and Liabilities - Total current assets decreased to $323.0 million as of September 30, 2024, from $371.6 million at the end of 2023, a decline of 13.1%[5] - Total liabilities decreased to $273.8 million as of September 30, 2024, from $277.9 million at the end of 2023, a reduction of 1.5%[6] - The accumulated deficit increased to $442.7 million as of September 30, 2024, compared to $397.9 million at the end of 2023[6] - Cash and cash equivalents decreased to $48.5 million as of September 30, 2024, from $76.0 million at the end of 2023, a decline of 36.0%[5] - Total stockholders' equity as of September 30, 2024, was $64.713 million, a decrease from $115.217 million at the end of September 2023[11] - As of September 30, 2024, total assets related to variable interest entities (VIEs) were $268.7 million, down from $288.7 million as of December 31, 2023[56] - The company reported total liabilities of $253.6 million related to VIEs as of September 30, 2024, compared to $261.0 million at the end of 2023[56] Inventory and Sales - Real estate inventory was valued at $256.5 million as of September 30, 2024, down from $276.5 million at the end of 2023, a decrease of 7.2%[5] - Homes sold in Q3 2024 totaled 615, down from 703 in Q3 2023, with a Gross Profit per home sold of $27,900 compared to $34,100 in the prior year[91] - The total number of homes sold in the nine months ended September 30, 2024, was 2,204, compared to 2,962 in the same period of 2023[91] - The average resale home price decreased from $360,000 in the nine months ended September 30, 2023, to $334,000 in the same period in 2024[103] - The average real estate inventory holding period of homes sold has remained consistent at around 110 days during 2024[85] - Homes listed for sale increased to 169,433 as of September 30, 2024, compared to 148,648 on December 31, 2023[20] Expenses and Costs - Cash payments for interest for the nine months ended September 30, 2024, were $19.204 million, down from $23.406 million in the same period of 2023[11] - Sales, marketing, and operating expenses decreased by $39.1 million, or 39.6%, to $59.5 million for the nine months ended September 30, 2024, primarily due to a decrease in advertising expenses[106] - General and administrative expenses decreased by $10.6 million, or 25.6%, to $30.7 million for the nine months ended September 30, 2024, due to reduced fees and lower employee headcount[107] - Interest expense increased by $0.7 million, or 16.1%, to $5.1 million for the three months ended September 30, 2024, compared to $4.4 million in 2023[99] - Interest expense increased by $0.9 million, or 6.5%, to $14.6 million for the nine months ended September 30, 2024, primarily due to a rise in weighted average variable interest rates[109] Financing and Credit Facilities - The company had a total borrowing capacity of $1,007.0 million under its senior secured and mezzanine secured credit facilities, with $482.2 million committed as of September 30, 2024[28] - The Company had four mezzanine secured credit facilities with a total outstanding amount of $41.328 million as of September 30, 2024, with a weighted average interest rate of 13.82%[30] - The Company’s borrowings under senior secured credit facilities are collateralized by real estate inventory, with lenders having legal recourse only to the assets securing the debt[29] - The company expects to enter into new financing arrangements or amend existing arrangements to meet its obligations as they come due, which is considered probable based on its history of prior credit facility renewals[32] - The company was in compliance with all covenants as of September 30, 2024, with no events of default reported[119] Stock and Equity - The Company is authorized to issue 2.1 billion shares of capital stock, consisting of 2 billion shares of Class A common stock and 100 million shares of preferred stock[42] - As of September 30, 2024, Offerpad Solutions Inc. had 27,361,414 shares of Class A common stock issued and outstanding[43] - The company raised approximately $90.0 million from the sale of pre-funded warrants in January 2023, resulting in the issuance of 10.7 million shares upon exercise[43] - No cash dividends have been paid on common stock to date, and there are no current plans to pay cash dividends for the foreseeable future[45] - The company granted 916,000 Restricted Stock Units (RSUs) during the nine months ended September 30, 2024, with 901,000 RSUs outstanding as of that date[49] Legal and Compliance - A class action lawsuit was filed against the company on August 26, 2024, alleging breach of fiduciary duties related to a merger, with proceedings temporarily stayed as of September 19, 2024[69] - The company has a senior secured credit facility with a related party, with an outstanding amount of $13,330 thousand as of September 30, 2024, compared to $6,289 thousand as of December 31, 2023[61] Market and Operational Insights - The company operates in over 1,800 cities and towns across 26 metropolitan markets in 17 states as of September 30, 2024[12] - The company captured roughly 0.5% market share of real estate transactions across its 25 active markets as of December 31, 2023[75] - The average thirty-year fixed mortgage rate peaked in the mid-7% range in April 2024 before decreasing to close to 6% at the end of September 2024[72] - The company has recently reduced its home acquisition pace to optimize real estate inventory levels[72]

Financial Performance - Net loss improved by 32% year-over-year to $13.5 million, while adjusted EBITDA improved by 53% to a loss of $6.2 million[2] - Revenue for Q3 2024 was $208.1 million, a decrease of 11% compared to $234.2 million in Q3 2023[4] - Net loss for the nine months ended September 30, 2024, was $44,834 thousand, compared to a net loss of $101,777 thousand for the same period in 2023[12] - Adjusted EBITDA for Q3 2024 was $(6,181,000), worsening from $(4,429,000) in Q2 2024 and $(13,278,000) in Q3 2023[31] - Net loss for Q3 2024 was $(13,537,000), an improvement from $(13,782,000) in Q2 2024 but worse than $(19,986,000) in Q3 2023[31] - Adjusted net loss for Q3 2024 was $(13,551,000), slightly better than $(13,773,000) in Q2 2024 and $(20,117,000) in Q3 2023[31] Sales and Operations - Homes acquired decreased by 55% year-over-year to 422, while homes sold decreased by 13% to 615[4] - The company expects to sell between 480 to 540 homes in Q4 2024, with projected revenue of $160 million to $185 million[5] - Homes sold decreased to 615 in Q3 2024 from 742 in Q2 2024 and 703 in Q3 2023, representing a decline of 17.1% quarter-over-quarter and 12.5% year-over-year[25] Profitability Metrics - Gross profit per home sold was $27,900, down 18% from $34,100 in Q3 2023[4] - Contribution profit after interest per home sold was $12,400, a decrease of 54% from $27,200 in Q3 2023[4] - Contribution profit for Q3 2024 was $12,531,000, down from $16,384,000 in Q2 2024 and $22,527,000 in Q3 2023, reflecting a decline of 23.5% quarter-over-quarter and 44.3% year-over-year[25] - Contribution margin for Q3 2024 was 6.0%, compared to 6.5% in Q2 2024 and 9.6% in Q3 2023, indicating a decrease in profitability[25] - Contribution profit per home sold for Q3 2024 was $20.4, down from $22.1 in Q2 2024 and $32.0 in Q3 2023, indicating reduced profitability per unit sold[25] Cash Flow and Expenses - Total operating expenses decreased by 40% to $26.1 million from $43.5 million in the prior year[2] - Cash and cash equivalents decreased by 54% year-over-year to $48.5 million[4] - Net cash used in operating activities was $12,404 thousand, a significant decrease from $276,955 thousand provided in the same period last year[12] - Cash and cash equivalents at the end of the period totaled $48,504 thousand, down from $105,999 thousand at the beginning of the period[12] - Total cash, cash equivalents, and restricted cash at the end of the period was $58,426 thousand, compared to $113,408 thousand at the end of the previous period[12] Inventory and Acquisitions - Renovate closed projects increased by 43% year-over-year to 227, generating $4.0 million in revenue[2] - Acquisitions from Offerpad's Agent Partnership Program grew to 33% of total acquisitions[2] - The company reported a real estate inventory valuation adjustment of $2,016 thousand for the nine months ended September 30, 2024[12] Financial Metrics and Comparisons - Adjusted gross profit for Q3 2024 was $18,820,000, compared to $23,295,000 in Q2 2024 and $24,808,000 in Q3 2023, indicating a decrease of 19.2% quarter-over-quarter and 24.2% year-over-year[25] - Gross profit for the three months ended September 30, 2024, was $17,140,000, down from $21,871,000 in the previous quarter, and $23,973,000 in the same quarter last year[25] - Gross margin for Q3 2024 was 8.2%, down from 8.7% in Q2 2024 and 10.2% in Q3 2023, showing a decline in operational efficiency[25] Non-GAAP Measures - Adjusted Gross Profit and Contribution Profit metrics are used to evaluate unit-level economics and operating performance across markets[15] - Contribution Profit After Interest is calculated by deducting interest expenses associated with homes sold during the period from Contribution Profit[22] - Offerpad's non-GAAP financial measures may not be comparable with those of other companies in the industry[14] - Offerpad emphasizes the importance of Adjusted Gross Profit as a measure of business performance, capturing gross margin performance isolated to homes sold in a given period[19]