Core Viewpoint - Linkhome Holdings Inc. has announced the pricing of its upsized initial public offering, aiming to raise $6 million through the sale of 1,500,000 shares at $4 per share, with trading expected to commence on July 24, 2025 under the ticker symbol "LHAI" [1][4]. Group 1: Offering Details - The offering consists of 1,500,000 shares priced at $4 each, totaling gross proceeds of $6 million before expenses [1]. - Underwriters have an option to purchase an additional 225,000 shares within 45 days to cover over-allotments [1]. - USTiger Securities, Inc. is the sole book-runner for the offering, with legal counsel provided by Winston & Strawn LLP and VCL Law LLP [2]. Group 2: Use of Proceeds - The net proceeds from the offering will primarily be used to enhance marketing initiatives, advance the HomeGPT AI platform, support the rollout of the Cash Offer product, finance capital expenditures, expand research and development, and for general corporate purposes [3]. Group 3: Company Overview - Linkhome is an AI-driven real estate platform that aims to simplify homeownership through its HomeGPT model and integrated fintech solutions [6]. - The platform offers services including property management, home renovation, and mortgage referrals, creating a comprehensive real estate solution [7]. - Since its inception in 2021, Linkhome has facilitated over $185 million in gross transaction value, with $48 million in brokerage volume completed in 2024 [8].

Financial Data and Key Metrics Changes - The company reported revenue of $1.2 billion in Q1 2025, roughly in line with the same quarter in 2024, with 2,946 homes sold [18] - Acquisition volumes increased by 4% year-over-year, with 3,609 homes purchased in Q1 2025 [18] - Contribution profit was $54 million in Q1 2025, down from $57 million in Q1 2024, resulting in a contribution margin of 4.7% [19] - Adjusted EBITDA loss improved to $30 million in Q1 2025 from a loss of $50 million in Q1 2024, driven by reduced operating expenses [19] - Fixed operating expenses decreased by $19 million, or 33%, compared to the previous year [15] Business Line Data and Key Metrics Changes - The company is focusing on enhancing its product flow and pricing models to improve conversion rates despite higher spreads [19] - The strategy includes maintaining pricing discipline and improving conversion through better pricing models and marketing investments [12][13] Market Data and Key Metrics Changes - The housing market is experiencing challenges, with mortgage rates exceeding 7%, clearance rates down nearly 25% year-over-year, and delistings up over 30% [6][7] - The company anticipates continued headwinds in the housing market, impacting performance in the near term [21] Company Strategy and Development Direction - The company aims to drive towards profitability while enhancing product experience and leadership position in the residential real estate market [8] - A new strategy involves expanding partnerships with agents to provide customers with more selling options, including cash offers and traditional listings [9][10] - The company is piloting a new experience in select markets to improve conversion rates and customer satisfaction [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macroeconomic environment and the need for a cautious approach due to consumer hesitation [24] - The outlook for Q2 2025 includes expected revenue between $1.45 billion and $1.525 billion, with a contribution profit of $65 million to $75 million [21] - The company expects to see a decline in revenue year-over-year in the latter half of the year due to a slowdown in acquisitions [24] Other Important Information - The company ended the quarter with 7,080 homes in inventory, valued at $2.4 billion, a 24% increase from the prior year [20] - Total capital at quarter-end was $1 billion, primarily consisting of $559 million in unrestricted cash [20] Q&A Session Summary Question: Acquisition growth slowdown and market performance - Management expects a seasonal pattern in acquisitions, with a decline from Q1 to Q2 and a ramp-up in Q4, indicating a cautious approach due to market uncertainty [29] Question: Health of older inventory and valuation - Management noted that older inventory typically has lower margins, but recent acquisitions are performing well, providing confidence in future contribution margins [36] Question: Agent partnership expansion - The company is shifting to a model where agents are brought in earlier in the process, enhancing conversion and providing local expertise [42] Question: Cost savings opportunities - Management highlighted ongoing efforts to optimize the cost structure, with a significant reduction in fixed costs already achieved [53] Question: Marketing expense reduction - The majority of the expected reduction in operating expenses is attributed to lower marketing spend due to seasonal dynamics [58] Question: Economics of the agent partnership - The partnership will generate revenue through commission sharing on listings and margins on cash offers, with expectations that conversion benefits will outweigh referral costs [61]

Financial Data and Key Metrics Changes - The company reported revenue of $1.2 billion in Q1 2025, roughly in line with the same quarter in 2024, representing 2,946 homes sold [16] - Acquisition volumes increased by 4% year-over-year, with 3,609 homes purchased in Q1 2025 [16] - Contribution profit was $54 million in Q1 2025, down from $57 million in Q1 2024, resulting in a contribution margin of 4.7% [16] - Adjusted EBITDA loss improved to $30 million in Q1 2025 from a loss of $50 million in Q1 2024, driven by reduced operating expenses [17][18] - Fixed operating expenses in Q1 2025 were $19 million lower, down 33% compared to the previous year [14] Business Line Data and Key Metrics Changes - The company is focusing on enhancing its product flow and pricing models to improve conversion rates despite higher spreads [16] - The strategy includes expanding the market approach by leveraging partnerships with agents, which is expected to improve conversion rates and asset-light revenue [9][10] Market Data and Key Metrics Changes - The housing market is experiencing challenges, with mortgage rates exceeding 7%, clearance rates down nearly 25% year-over-year, and delistings up over 30% [6] - The company anticipates that the housing market will continue to deteriorate, impacting performance in the near term [20] Company Strategy and Development Direction - The company aims to drive towards profitability while enhancing product experience and leadership position in the residential real estate market [5] - A shift towards a platform that allows sellers to explore various selling options, including cash offers and listings with agents, is underway [7][8] - The company is piloting a new experience in select markets to improve customer engagement and conversion rates [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macroeconomic environment and the uncertainty affecting home sellers and buyers [5][6] - The outlook for Q2 2025 includes expected revenue between $1.45 billion and $1.525 billion, with a contribution profit between $65 million and $75 million [20] - The company expects a sequential decline in acquisitions from Q1 to Q2, with a focus on maintaining pricing discipline and improving conversion rates [12][21] Other Important Information - The company ended Q1 2025 with 7,080 homes in inventory, valued at $2.4 billion, a 24% increase from the prior year [19] - The company has a total capital of $1 billion, primarily consisting of $559 million in unrestricted cash [19] Q&A Session Summary Question: Acquisition growth slowdown and market performance - Management expects a sequential decline in acquisitions from Q1 to Q2, with a similar pattern anticipated for the second half of the year [28] Question: Contribution margins of newer homes - Contribution margins are expected to be between 4.5% and 4.9%, with a decline driven by older inventory making up a larger share of homes sold [29] Question: Health of inventory and valuation - Management noted a natural degradation in margins over time, but recent acquisitions are starting at higher contribution margins [34] Question: Agent partnership expansion - The company is leveraging existing relationships with agents to improve conversion and provide local expertise [42] Question: Cost savings opportunities - The company is focused on optimizing its cost structure, with a year-over-year fixed cost reduction of nearly $20 million [52] Question: Marketing expense reduction - The majority of the operating expense reduction is attributed to lower marketing expenses due to seasonal dynamics [57] Question: Economics of the agent partnership - The partnership will generate asset-light revenue through commission sharing on listings and margins on cash offers, minus referral fees [61] Question: Signals for broader rollout of partnerships - Management is looking for improved conversion rates as a signal for expanding the agent partnership program [70]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported revenue of $1.1 billion, a 25% increase compared to Q4 2023, with 2,822 homes sold [16] - Full-year revenue for 2024 was $5.2 billion, down from $6.9 billion in 2023, primarily due to a lower starting inventory balance [17] - Contribution profit for Q4 was $38 million, up from $30 million in Q4 2023, resulting in a contribution margin of 3.5% [18] - For the full year, contribution profit improved to $242 million from a loss of $258 million in 2023, with a contribution margin of 4.7% compared to negative 3.7% the previous year [19] - Adjusted EBITDA loss for Q4 was $49 million, a $20 million improvement year-over-year, while the full-year adjusted EBITDA loss was $142 million, down from $627 million in 2023 [19][20] Business Line Data and Key Metrics Changes - The company acquired 2,951 homes in Q4 2024, compared to 3,683 in the same quarter last year, but full-year acquisitions increased by 31% to 14,684 homes [17][18] - The company is focusing on optimizing contribution profit dollars and exploring new revenue opportunities, particularly in its cash offer business [9][10] Market Data and Key Metrics Changes - The spring selling season in 2025 is expected to start slower, with clearance rates down 25% compared to the previous year [8] - Active listings increased by nearly 20%, indicating a slowing market, while new listings are down 20% to 25% [9] - The company anticipates continued macro pressures affecting performance in the near term [21] Company Strategy and Development Direction - The company aims for profitable, sustainable growth by refining its approach to home acquisitions and enhancing customer experience [9][10] - Key strategies include optimizing spreads, improving pricing models, aligning marketing strategies with seasonal patterns, and expanding offerings to serve more sellers [10][12][13] - The company is also focused on expanding its marketplace and list with Opendoor offerings to provide more choices for sellers [13][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledges persistent macro headwinds, including high interest rates and low mortgage rates for sellers, which are expected to continue impacting performance [21] - The outlook for Q1 2025 includes expected revenue between $1 billion and $1.075 billion, with a contribution profit of $40 million to $50 million [21] - The company is committed to reducing adjusted net losses and improving operational efficiencies throughout 2025 [22] Other Important Information - The company ended 2024 with 6,417 homes in inventory, valued at $2.2 billion, a 22% increase from the prior year [20] - The company has successfully renewed credit facilities, increasing borrowing capacity and extending terms through 2027, demonstrating strong support from capital partners [20] Q&A Session Summary Question: Can you elaborate on cost savings and efficiency opportunities? - Management discussed significant actions taken to reduce fixed costs, including a workforce reduction and the disposition of Mainstay, expecting $85 million in cost savings [27] Question: What updates can you provide on the marketplace in Charlotte and Raleigh? - Management noted high customer acceptance and clearance rates in these markets, indicating confidence in expanding the offering [30] Question: What is the opportunity for "list with Opendoor" and how does it fit into the overall strategy? - Management highlighted that this offering allows sellers to test the market while having the assurance of a cash offer, which is appealing in the current market [36] Question: How does the company plan to manage operating expenses throughout the year? - Management indicated that while Q1 operating expenses are expected to rise slightly, they anticipate costs to decrease over the year as cost-saving initiatives take effect [64] Question: How is the company balancing expansion with current market challenges? - Management stated that they are not pulling back on market expansion but are focusing on improving pricing effectiveness and contribution margins [40]