Q2 2025 Earnings Overview Q2 2025 Highlights and CEO Commentary Offerpad reported $160.3 million revenue and 452 homes sold in Q2 2025, validating its asset-light services platform - Offerpad's platform integrates sellers, agents, cash buyers, and institutional partners, creating a real estate solutions center positioned for scaling asset-light services and operating with greater efficiency3 - The company raised $21 million in July, increasing total liquidity to over $75 million, strengthening the balance sheet and supporting growth initiatives3 - Offerpad HomePro is now live in all markets, enabling agents to deliver in-person selling solutions including cash offers, open market listings, and an upside program3 - Offerpad Renovate achieved $6.4 million in revenue, its highest quarterly revenue since launch, driven by increased demand from institutional and investor partners3 - Upgrades to the asset-light Direct+ platform are enhancing SFR buyer engagement and aligning inventory with partner buy boxes3 | Metric | Value | | :--- | :--- | | Revenue | $160.3 million | | Homes Sold | 452 | CFO Commentary and Strategic Focus The CFO noted a $21 million capital raise for scalable investments, supporting asset-light services and long-term growth - The $21 million July capital raise is primarily non-dilutive and supports investment in scalable, margin-positive business areas5 - Offerpad is advancing complementary services like HomePro, Renovate, and Direct+ to enhance solution delivery, reach new customer segments, and serve institutional buyers5 - These strategic investments reinforce the company's asset-light approach and commitment to long-term growth5 Financial Results Q2 2025 Key Financial Metrics Offerpad's Q2 2025 reported $160.3 million revenue from 452 homes sold, with ($4.8 million) Adjusted EBITDA loss - Adjusted EBITDA Loss improved 39% sequentially8 | Metric | Value | | :--- | :--- | | Revenue | $160.3 million | | Homes Sold | 452 | | Gross Margin | 8.9% | | Adjusted EBITDA Loss | ($4.8 million) | | Unrestricted Cash | $22.6 million | | Total Liquidity | Over $55 million | Quarter-over-Quarter Financial Performance Q2 2025 showed a 35% increase in gross profit and 39% improvement in Adjusted EBITDA sequentially | Metric | Q2 2025 | Q1 2025 | Percentage Change | | :--- | :--- | :--- | :--- | | Homes acquired | 443 | 454 | (2%) | | Homes sold | 452 | 460 | (2%) | | Revenue | $160.3 million | $160.7 million | (0%) | | Gross profit | $14.2 million | $10.5 million | 35% | | Net loss | ($10.9 million) | ($15.1 million) | 28% | | Adjusted EBITDA | ($4.8 million) | ($7.8 million) | 39% | | Diluted Net Loss per Share | ($0.39) | ($0.55) | 29% | | Gross profit per home sold | $31,400 | $22,800 | 37% | | Contribution profit after interest per home sold | $12,400 | $500 | 2,380% | | Cash and cash equivalents | $22.7 million | $30.8 million | (26%) | Year-over-Year Financial Performance Year-over-year, Q2 2025 revenue dropped 36%, with net loss improved by 21% and gross profit per home sold up 7% | Metric | Q2 2025 | Q2 2024 | Percentage Change | | :--- | :--- | :--- | :--- | | Homes acquired | 443 | 831 | (47%) | | Homes sold | 452 | 742 | (39%) | | Revenue | $160.3 million | $251.1 million | (36%) | | Gross profit | $14.2 million | $21.9 million | (35%) | | Net loss | ($10.9 million) | ($13.8 million) | (21%) | | Adjusted EBITDA | ($4.8 million) | ($4.4 million) | (8%) | | Diluted Net Loss per Share | ($0.39) | ($0.50) | 22% | | Gross profit per home sold | $31,400 | $29,500 | 7% | | Contribution profit after interest per home sold | $12,400 | $14,500 | (14%) | | Cash and cash equivalents | $22.7 million | $56.9 million | (60%) | Condensed Consolidated Statements of Operations (GAAP) For Q2 2025, Offerpad reported $160.3 million revenue, $14.2 million gross profit, and ($10.9 million) net loss | (in thousands, except per share data) (Unaudited) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $160,315 | $251,122 | | Cost of revenue | 146,126 | 229,251 | | Gross profit | 14,189 | 21,871 | | Total operating expenses | 21,970 | 31,732 | | Loss from operations | (7,781) | (9,861) | | Net loss | $ (10,903) | $ (13,782) | | Net loss per share, diluted | $ (0.39) | $ (0.50) | Condensed Consolidated Balance Sheets (GAAP) As of June 30, 2025, Offerpad's total assets were $267.9 million, with real estate inventory at $212.7 million | (in thousands, except par value per share) (Unaudited) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | ASSETS | | | | Cash and cash equivalents | $22,650 | $43,018 | | Real estate inventory | 212,737 | 214,174 | | Total current assets | 249,597 | 294,212 | | TOTAL ASSETS | $267,986 | $313,053 | | LIABILITIES AND STOCKHOLDERS' EQUITY | | | | Secured credit facilities and other debt, net | 177,322 | 195,378 | | Total current liabilities | 229,618 | 250,965 | | Total liabilities | 243,451 | 265,400 | | Total stockholders' equity | 24,535 | 47,653 | | TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $267,986 | $313,053 | Condensed Consolidated Statements of Cash Flows (GAAP) For H1 2025, Offerpad reported ($23.6 million) net cash used in operations and ($22.1 million) in financing | ($ in thousands) (Unaudited) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | $ (25,960) | $ (31,297) | | Net cash used in by operating activities | (23,646) | (51,999) | | Net cash used in investing activities | (1,079) | (318) | | Net cash (used in) provided by financing activities | (22,155) | 45,381 | | Net change in cash, cash equivalents and restricted cash | (46,880) | (6,936) | | Cash, cash equivalents and restricted cash, end of period | $ 26,746 | $ 72,998 | Non-GAAP Financial Measures Introduction to Non-GAAP Measures Offerpad uses non-GAAP measures for operational insights and unit economics, acknowledging their limitations and non-comparability - Non-GAAP measures are used to assess operating performance and unit-level economics but have limitations and should not be considered in isolation from GAAP measures222325 - Offerpad does not provide a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted net income (loss) due to the inherent uncertainty of certain reconciling items23 Adjusted Gross Profit, Contribution Profit, and Contribution Profit After Interest These non-GAAP metrics evaluate unit-level economics and operating performance for homes sold, enabling period-over-period comparisons - Adjusted Gross Profit, Contribution Profit, and Contribution Profit After Interest are key for evaluating unit-level economics and operating performance, focusing on homes sold in a given period24283032 - Adjusted Gross Profit adjusts GAAP gross profit for real estate inventory valuation and interest expense associated with homes sold27 - Contribution Profit further adjusts Adjusted Gross Profit by subtracting direct selling costs and holding costs on sales, and adding other income29 - Contribution Profit After Interest includes all interest expenses attributable to homes sold, providing a fully burdened view of financing costs31 | (in thousands, except percentages and homes sold, unaudited) | June 30, 2025 | Mar 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Gross profit (GAAP) | $14,189 | $10,507 | $21,871 | | Adjusted gross profit | $14,925 | $11,461 | $23,295 | | Adjusted gross margin | 9.3% | 7.1% | 9.3% | | Contribution profit | $10,071 | $6,144 | $16,384 | | Contribution margin | 6.3% | 3.8% | 6.5% | | Contribution profit after interest | $5,623 | $222 | $10,728 | | Contribution margin after interest | 3.5% | 0.1% | 4.3% | | Contribution profit after interest per home sold | $12,400 | $500 | $14,500 | Adjusted Net Income (Loss) and Adjusted EBITDA Adjusted Net Income (Loss) and Adjusted EBITDA assess Offerpad's financial performance by adjusting GAAP net income for non-recurring items - Adjusted Net Income (Loss) and Adjusted EBITDA provide insight into period-over-period performance by adjusting for non-recurring or non-cash items3740 - Adjusted Net Income (Loss) is GAAP Net Income (Loss) adjusted for the change in fair value of warrant liabilities38 - Adjusted EBITDA is Adjusted Net Income (Loss) further adjusted for interest expense, amortization of capitalized interest, taxes, depreciation and amortization, and stock-based compensation expense39 | (in thousands, except percentages, unaudited) | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Net loss (GAAP) | $ (10,903) | $ (15,057) | $ (13,782) | | Adjusted net loss | $ (11,232) | $ (14,800) | $ (13,773) | | Adjusted net loss margin | (7.0%) | (9.2%) | (5.5%) | | Adjusted EBITDA | $ (4,787) | $ (7,831) | $ (4,429) | | Adjusted EBITDA margin | (3.0%) | (4.9%) | (1.8%) | Outlook and Corporate Information Q3 2025 Outlook Offerpad anticipates Q3 2025 revenue of $130 million to $150 million and 360-410 homes sold, expecting sequential Adjusted EBITDA improvement - Offerpad expects continued sequential improvement in Adjusted EBITDA as it scales asset-light services and maintains cost discipline6 | Metric | Q3 2025 Outlook | | :--- | :--- | | Homes Sold | 400 to 440 | | Revenue | $140 million to $160 million | | Adjusted EBITDA | Sequential Improvement | Conference Call and Company Information Offerpad will host a conference call on August 5, 2025, to discuss Q2 2025 results, detailing its real estate tech platform and solutions - A conference call and webcast will be held on August 5, 2025, at 4:30 p.m. ET, accessible via Offerpad's Investor Relations website12 - Offerpad is a leading real estate tech company simplifying home selling and buying with an advanced platform offering consumer cash offers, B2B renovation solutions, and industry partnership programs13 Forward-Looking Statements This section contains forward-looking statements on Offerpad's future performance, subject to risks and uncertainties that may cause actual results to differ - Forward-looking statements relate to future events or Offerpad's future financial or operating performance, including financial outlook and growth expectations14 - Key risk factors include general economic conditions, health of the U.S. residential real estate industry, ability to grow market share, manage inventory and renovations, launch new products, maintain profitability, and comply with NYSE listing rules1415 - Readers are cautioned not to place undue reliance on these statements, which speak only as of their date, and Offerpad undertakes no obligation to update them15
Offerpad Solutions (OPAD) - 2025 Q2 - Quarterly Results