Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $160.3 million, with 452 homes sold, reflecting disciplined execution in a slower transaction market [9][16] - Gross margin was 8.9%, resulting in a gross profit of $14.2 million, while operating expenses excluding property-related costs totaled $17 million, down 30% compared to the same quarter last year [17] - Adjusted EBITDA loss improved by 39% to $4.8 million, marking another quarter of sequential gains [17] Business Line Data and Key Metrics Changes - The renovate business achieved a record revenue of $6.4 million, marking the second consecutive record and the strongest performance since its launch [11] - The HomePro program was officially launched in Q2, enhancing customer experience through specialized agents [10] - The company acquired 443 homes during the quarter, focusing on strategic markets and properties aligned with margin targets [16] Market Data and Key Metrics Changes - Market conditions remain challenging, with affordability issues and economic uncertainty affecting both buyers and sellers, leading to longer home sale times and downward pressure on home prices [6][7] - The traditional spring selling season was underwhelming, with rising listing inventory providing buyers with more options [6] Company Strategy and Development Direction - The company aims to scale high-margin asset-light services, maintain cost discipline, and position itself to capture opportunities as market conditions evolve [14][19] - The focus is on enhancing customer experience through a diversified model that includes cash offers, HomePro, and Direct Plus services [12][13] Management's Comments on Operating Environment and Future Outlook - Management noted that despite operating with leaner resources, the team has delivered strong results, reflecting focus and resilience [14] - Looking ahead, the company expects Q3 revenue in the range of $130 million to $150 million, with a shift towards a higher percentage of revenue from asset-light services [19] Other Important Information - The company raised $21 million in July, increasing total liquidity to over $75 million, which strengthens the balance sheet and supports growth initiatives [5][18] - The company has established new lending facilities to increase operational agility and reduce committed capacity [18] Q&A Session Summary Question: Home acquisition pace for the remainder of the year - Management indicated a disciplined approach to home acquisitions, focusing on strategic markets while being cautious about areas with high supply [22][26] Question: Momentum in renovate - The company is seeing strong momentum in the renovate business due to increased customer sign-ups and efficiency, particularly among mid to small investors [24] Question: Economics of HomePro compared to traditional cash offers - HomePro services will recognize net revenue similar to gross profit, leading to a shift in revenue mix that increases gross profit but decreases overall revenue [38] Question: Current capital position and ability to self-fund - The company is comfortable with its capital position, having made significant strides in reducing fixed costs while improving gross profit [43][44] Question: Path to 1,000 homes per quarter - The company continues to view 1,000 real estate transactions as a North Star, with a shift towards more asset-light transactions while maintaining focus on overall transaction volume [50][52]

Financial Data and Key Metrics Changes - In Q1, the company met the midpoint of its revenue guidance with total revenue of $161 million, reflecting an 8% decline quarter over quarter [17] - The net loss for the quarter was $15.1 million, a 14% improvement compared to the same period in 2024 [17] - Adjusted EBITDA loss for the first quarter was $7.8 million, a sequential improvement of 32% [19] Business Line Data and Key Metrics Changes - The Renovate business generated a record revenue of $5.3 million in Q1, with an annualized run rate of approximately $20 million, marking the highest quarterly total since its launch [6] - The cash offer business remains a key revenue driver, while asset-light services, including Renovate, Direct Plus, and the agent partnership program, contributed over 40% of contribution profit after interest [16][17] Market Data and Key Metrics Changes - Offer requests rose by 33% quarter over quarter, indicating increased consumer interest [9] - The average time to cash for homes sold in Q1 was 165 days, consistent with expectations following acquisition adjustments [17] Company Strategy and Development Direction - The company is focusing on enhancing the customer experience through technology and operational improvements, aiming for positive adjusted EBITDA and sustainable long-term growth [6][13] - A new partnership with Auction.com was announced, positioning Renovate as a preferred provider of renovation services [6] - The company is prioritizing diversification through high-margin revenue streams and disciplined resource management [6][14] Management's Comments on Operating Environment and Future Outlook - Management noted that the housing market is facing sustained macroeconomic pressures, including elevated mortgage rates and affordability challenges, impacting transaction volumes [7][8] - The company anticipates sequential improvements in time to cash and revenue in Q2, with guidance of $160 million to $190 million [20] Other Important Information - The company has made significant progress in reducing annual operating expenses by approximately $115 million over the past 24 months [19] - As of the end of Q1, unrestricted cash totaled $31 million, with total liquidity exceeding $60 million [19] Q&A Session Summary Question: Acquisition pace of homes and seasonal patterns - Management expects increased acquisition volumes in Q2, with a target of 1,000 homes per quarter as a North Star for profitability [27][46] Question: Stability of the current market environment - Management acknowledged market volatility but noted increased opportunities for acquisitions in select areas [33][41] Question: Financial impact of changes made in April - Management indicated that further details on cost reductions would be provided in the next quarter, with ongoing efforts to improve operational efficiency [32][34] Question: Supply-demand dynamics in key markets - Management observed rising inventory levels and emphasized a selective approach to acquisitions based on market conditions [40][41] Question: Contribution margin targets with increased acquisition volume - Management expects contribution margins to improve as more recent purchases are integrated into the portfolio [37]

Financial Data and Key Metrics Changes - In Q1 2025, the company reported revenue of $161 million, which was in line with guidance, but represented an 8% decline quarter over quarter [16] - The net loss for the quarter was $15.1 million, showing a 14% improvement compared to the same period in 2024 [16] - Adjusted EBITDA loss for Q1 was $7.8 million, a sequential improvement of 32% [18] Business Line Data and Key Metrics Changes - The Renovate business generated a record revenue of $5.3 million in Q1, with an annualized run rate of approximately $20 million, marking the highest quarterly total since its launch [6] - The company sold 460 homes in Q1, a 9% decrease from the previous quarter, primarily due to a strategic reduction in acquisition pace [16] - Over 40% of contribution profit after interest came from asset-light services, indicating a growing importance of these services to overall profitability [16][50] Market Data and Key Metrics Changes - Offer requests rose by 33% quarter over quarter, indicating increased consumer interest despite market challenges [8] - The housing market is experiencing elevated mortgage rates and affordability challenges, leading to transaction volumes near historic lows [7] - Active inventory is increasing in most markets, with specific areas like Phoenix having over 25,000 active listings, highlighting a supply-demand imbalance [39] Company Strategy and Development Direction - The company is focusing on diversifying revenue streams through high-margin services and streamlining operations to achieve positive adjusted EBITDA [6][14] - A new partnership with Auction.com aims to enhance the Renovate business by providing renovation services to buyers on their platform [6] - The company is committed to maintaining a disciplined approach to acquisitions while selectively ramping up volumes in stronger market segments [15][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged sustained macroeconomic pressures affecting the housing market, including high borrowing costs and limited affordable inventory [7] - The company expects sequential improvements in time to cash and revenue as it moves through 2025, with a focus on increasing acquisition activity and maintaining disciplined cost management [19] - Management remains cautiously optimistic about capital market opportunities and is preparing restructuring plans in case new capital is not secured [19] Other Important Information - The company welcomed Donna Corley to its Board of Directors, bringing extensive housing finance experience [12] - The company has reduced annual operating expenses by approximately $115 million over the past 24 months, with ongoing efforts to identify further cost reductions [18] Q&A Session Summary Question: Acquisition pace of homes and seasonal patterns - Management expects increased acquisition volumes in Q2, with a target of 1,000 homes per quarter as a North Star for profitability [26][32] Question: Stability of the current market environment - Management indicated that while there is still volatility, they are seeing more opportunities to buy homes at acceptable risk metrics [32][34] Question: Contribution margin targets with increased acquisition volume - Management expects contribution margins to improve as they move into Q2, but did not provide specific guidance on percentages [36] Question: Supply-demand dynamics in key markets - Management noted an increase in active inventory and emphasized the need for selective purchasing in areas with strong transaction activity [39][40] Question: Impact of tariffs on renovation margins - Management reported no significant impact from tariffs on renovation margins at this time, maintaining a margin range of 20% to 30% [65]