Offerpad Solutions (OPAD) - 2025 Q3 - Quarterly Results

Financial Performance - Offerpad reported Q3 2025 revenue of $132.7 million, a decrease of 36% year-over-year from $208.1 million in Q3 2024[10] - The company sold 367 homes in Q3 2025, down 40% from 615 homes sold in Q3 2024[10] - Offerpad's gross margin for Q3 2025 was 7.0%, with a gross profit of $9.3 million, a 46% decline from $17.1 million in Q3 2024[10] - The net loss for Q3 2025 was $11.6 million, an improvement of 14% compared to a net loss of $13.5 million in Q3 2024[10] - Offerpad expects Q4 2025 revenue to be between $100 million and $125 million, with homes sold projected at 300 to 350[11] - For the nine months ended September 30, 2025, the net loss decreased to $37,564,000 from $44,834,000 in the same period of 2024, representing a reduction of approximately 16.5%[21] - The company reported a GAAP net loss of $11,604,000 for the three months ended September 30, 2025, compared to a net loss of $10,903,000 for the previous quarter[38] - The adjusted net loss for the same period was $10,617,000, showing an improvement from $11,232,000 in the prior quarter[38] Cash and Liquidity - Total liquidity exceeded $75 million, bolstered by ongoing capital raise activities[6] - Cash and cash equivalents increased by 37% sequentially to $31.0 million from $22.7 million in Q2 2025[9] - Cash and cash equivalents at the end of the period were $30,959,000, down from $48,504,000 at the end of Q3 2024[21] - Total cash, cash equivalents, and restricted cash decreased to $33,644,000 from $58,426,000 year-over-year[21] - The company reported cash payments for interest of $12,958,000 in the nine months ended September 30, 2025, compared to $19,204,000 in the same period of 2024[21] Operating Efficiency - Operating expenses improved by 38% year-over-year, reflecting ongoing cost efficiencies[6] - Adjusted gross profit for Q3 2025 was $11,236,000, with an adjusted gross margin of 8.5%, compared to $14,925,000 and 9.3% in Q2 2025[33] - Contribution profit for Q3 2025 was $7,045,000, resulting in a contribution margin of 5.3%, down from $10,071,000 and 6.3% in Q2 2025[33] - The company sold 367 homes in Q3 2025, with a gross profit per home sold of $25,400, compared to 452 homes and $31,400 in Q2 2025[33] Adjusted EBITDA and Margins - The company anticipates Adjusted EBITDA for Q4 2025 to be similar to Q3 2025, as it continues to scale its asset-light services[7] - The adjusted EBITDA for Q3 2025 was $(4,572,000), slightly better than $(4,787,000) in Q2 2025[38] - The adjusted EBITDA margin for Q3 2025 was (3.4%), slightly worse than (3.0%) in Q2 2025[38] - Offerpad's Adjusted EBITDA is used to assess underlying financial performance, adjusted for non-recurring or non-cash items[34] - The company has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted net income due to the inability to calculate certain reconciling items without unreasonable efforts[23] Interest and Expenses - Interest expense for Q3 2025 was $3,646,000, consistent with $3,665,000 in Q2 2025[38] - Amortization of stock-based compensation increased to $815,000 in Q3 2025 from $1,257,000 in Q2 2025[38] - The change in fair value of warrant liabilities was $987,000 in Q3 2025, compared to $(329,000) in Q2 2025[38] - Depreciation and amortization expenses remained stable at $253,000 for both Q3 and Q2 2025[38]