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]