Offerpad Reports Third Quarter 2024 Results

Business Wire11-05

Net Loss & Adj EBITDA Improve 32% and 53% Versus Prior Year CHANDLER, Ariz., November 04, 2024--(BUSINESS WIRE)--Offerpad Solutions Inc. ("Offerpad") (NYSE: OPAD), a leading tech-enabled platform for ...

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(\"Offerpad\") (NYSE: OPAD), a leading tech-enabled platform for ...</p>\n\n<a href=\"https://finance.yahoo.com/news/offerpad-reports-third-quarter-2024-211500314.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Offerpad Reports Third Quarter 2024 Results</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOfferpad Reports Third Quarter 2024 Results\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-05 05:15 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/offerpad-reports-third-quarter-2024-211500314.html><strong>Business Wire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Net Loss & Adj EBITDA Improve 32% and 53% Versus Prior Year\nCHANDLER, Ariz., November 04, 2024--(BUSINESS WIRE)--Offerpad Solutions Inc. (\"Offerpad\") (NYSE: OPAD), a leading tech-enabled platform for ...</p>\n\n<a href=\"https://finance.yahoo.com/news/offerpad-reports-third-quarter-2024-211500314.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"OPAD","symbol_name":"Offerpad Solutions","start_time":0,"source_url":"https://finance.yahoo.com/news/offerpad-reports-third-quarter-2024-211500314.html","article_id":"2481572895","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/PV7sgzWEIoQkGJGC.cEg5Q--~B/aD01NTA7dz0xNzUxO2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/business-wire.com/a85e4d0e7c367de1acdd4766dede7877"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2481572895","pubTimestamp":1730754900,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Net Loss & Adj EBITDA Improve 32% and 53% Versus Prior Year. CHANDLER, Ariz., November 04, 2024----Offerpad Solutions Inc.  , a leading tech-enabled platform for residential real estate, today released financial results for the three months ended September 30, 2024.\"During the third quarter, we delivered revenue at the high end of our guidance. We’ve expanded our asset-light services, strengthened partnerships, and optimized our organization,\" said Brian Bair, Offerpad’s CEO. \"This positions Offerpad well as we return to normalized acquisition levels in our cash offer business with a streamlined cost structure.\". Contribution profit after interest per home sold of $12.4k, with 30% via asset light services. Acquisitions from Offerpad’s Agent Partnership Program grew to 33% of total. Additional information regarding Offerpad’s third quarter 2024 financial results and management commentary can be found by accessing the Company’s Quarterly Letter to Shareholders on the Offe","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"OPAD":"Offerpad Solutions","BK4079":"房地产服务"},"translate_title":"Offerpad报告2024年第三季度业绩","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"OPAD":1},"content_text":"Net Loss & Adj EBITDA Improve 32% and 53% Versus Prior Year\nCHANDLER, Ariz., November 04, 2024--(BUSINESS WIRE)--Offerpad Solutions Inc. (\"Offerpad\") (NYSE: OPAD), a leading tech-enabled platform for residential real estate, today released financial results for the three months ended September 30, 2024.\n\"During the third quarter, we delivered revenue at the high end of our guidance. We’ve expanded our asset-light services, strengthened partnerships, and optimized our organization,\" said Brian Bair, Offerpad’s CEO. \"This positions Offerpad well as we return to normalized acquisition levels in our cash offer business with a streamlined cost structure.\"\nHighlights include:\n\nImproved net loss and adjusted EBITDA 32% and 53%, respectively, from the prior year\nGross profit per home sold of $27.9k\nContribution profit after interest per home sold of $12.4k, with 30% via asset light services\nTotal operating expenses for the quarter decreased to $26.1M from $43.5M the prior year, a $17.4M or 40% improvement\nTime to Cash for homes sold in the quarter of 110 days, up from 106 the prior quarter\nRenovate closed projects of 227 up 43% versus the prior year, generating $4.0M in revenue\nAcquisitions from Offerpad’s Agent Partnership Program grew to 33% of total\nFine-tuned customer engagement process through new technology implementation improving initial estimated offer delivery goal from 24 hours to a matter of minutes\n\n\"We are proud of the cost control maintained during this period of market dislocation, focusing steadily on profitability and building a resilient, sustainable business for any real estate environment,\" said Peter Knag, Offerpad’s CFO. \"As we enter the final quarter of 2024, we’re observing shifts in the market that open up opportunities for disciplined growth.\"\nQ3 2024 Financial Results (quarter over quarter)\n\n\n\n\nQ3 2024\nQ2 2024\nPercentageChange\n\n\nHomes acquired\n422\n831\n(49%)\n\n\nHomes sold\n615\n742\n(17%)\n\n\nRevenue\n$208.1M\n$251.1M\n(17%)\n\n\nGross profit\n$17.1M\n$21.9M\n(22%)\n\n\nNet loss\n($13.5M)\n($13.8M)\n(2%)\n\n\nAdjusted EBITDA\n($6.2M)\n($4.4M)\n(40%)\n\n\nDiluted Net Loss per Share\n($0.49)\n($0.50)\n2%\n\n\nGross profit per home sold\n$27,900\n$29,500\n(5%)\n\n\nContribution profit after interest per home sold\n$12,400\n$14,500\n(14%)\n\n\nCash and cash equivalents\n$48.5M\n$56.9M\n(15%)\n\n\n\nQ3 2024 Financial Results (year over year)\n\n\n\n\nQ3 2024\nQ3 2023\nPercentageChange\n\n\nHomes acquired\n422\n930\n(55%)\n\n\nHomes sold\n615\n703\n(13%)\n\n\nRevenue\n$208.1M\n$234.2M\n(11%)\n\n\nGross profit\n$17.1M\n$24.0M\n(29%)\n\n\nNet loss\n($13.5M)\n($20.0M)\n32%\n\n\nAdjusted EBITDA\n($6.2M)\n($13.3M)\n53%\n\n\nDiluted Net Loss per Share\n($0.49)\n($0.73)\n33%\n\n\nGross profit per home sold\n$27,900\n$34,100\n(18%)\n\n\nContribution profit (loss) after interest per home sold\n$12,400\n$27,200\n(54%)\n\n\nCash and cash equivalents\n$48.5M\n$106.0M\n(54%)\n\n\n\nAdditional information regarding Offerpad’s third quarter 2024 financial results and management commentary can be found by accessing the Company’s Quarterly Letter to Shareholders on the Offerpad investor relations website.\nFourth Quarter 2024 Outlook\nOfferpad is providing its fourth quarter outlook for 2024 as follows:\n\n\n\n\nQ4 2024 Outlook\n\n\nHomes Sold\n480 to 540\n\n\nRevenue\n$160M to $185M\n\n\nAdjusted EBITDA1\nSlightly lower\n\n\n\n1 See Non-GAAP financial measures below for an explanation of why a reconciliation of this guidance cannot be provided.\nConference Call and Webcast Details\nBrian Bair, Chairman and CEO, and Peter Knag, CFO, will host a conference call and accompanying webcast on November 4, 2024, at 4:30 p.m. ET. The webcast can be accessed on Offerpad’s Investor Relations website. Those interested can register here. Access to a replay of the webcast will be available from the same website address shortly after the live webcast concludes.\nAbout Offerpad\nOfferpad, dedicated to simplifying the process of buying and selling homes, is a publicly traded company committed to providing comprehensive solutions that removes the friction from real estate. Our advanced real estate platform offers a range of services, from consumer cash offers to B2B renovation solutions and industry partnership programs, all tailored to meet the unique needs of our clients. Since 2015, we've leveraged local expertise in residential real estate alongside proprietary technology to guide homeowners at every step. Learn more at www.offerpad.com.\n#OPAD_IR\nForward-Looking Statements\nCertain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Offerpad’s future financial or operating performance. For example, statements regarding Offerpad’s financial outlook, including homes sold, revenue and Adjusted EBITDA, for the fourth quarter 2024, anticipated return to more normalized acquisition and inventory levels; and expectations regarding market conditions, strategic imperatives and profitability are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as \"pro forma,\" \"may,\" \"should,\" \"could,\" \"might,\" \"plan,\" \"possible,\" \"project,\" \"strive,\" \"budget,\" \"forecast,\" \"expect,\" \"intend,\" \"will,\" \"estimate,\" \"anticipate,\" \"believe,\" \"predict,\" \"potential\" or \"continue,\" or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may impact such forward-looking statements include, but are not limited to, Offerpad’s ability to respond to general economic conditions; the health of the U.S. residential real estate industry; Offerpad’s ability to grow market share in its existing markets or any new markets it may enter; Offerpad’s ability to manage its growth and its costs structure effectively; Offerpad’s ability to accurately value and manage real estate inventory, maintain an adequate and desirable supply of real estate inventory, and manage renovations; Offerpad’s ability to successfully launch new product and service offerings, and to manage, develop and refine its technology platform; Offerpad’s ability to maintain and enhance its products and brand, and to attract customers; Offerpad’s ability to achieve and maintain profitability in the future; and the success of strategic relationships with third parties. These and other important factors discussed under the caption \"Risk Factors\" in Offerpad’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission on February 27, 2024, and Offerpad’s other reports filed with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by Offerpad and its management, are inherently uncertain. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Offerpad undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.\n\n\n\nOFFERPAD SOLUTIONS INC.Condensed Consolidated Statements of Operations\n\n\n\n\n\n\n \n\n\n\n\nThree Months Ended\n\nNine Months Ended\n\n\n\n\nSeptember 30,\n\nSeptember 30,\n\n\n(in thousands, except per share data) (Unaudited)\n\n2024\n\n2023\n\n2024\n\n2023\n\n\nRevenue\n\n$\n208,067\n\n\n$\n234,228\n\n\n$\n744,547\n\n\n$\n1,073,954\n\n\n\nCost of revenue\n\n\n190,927\n\n\n\n210,255\n\n\n\n682,941\n\n\n\n1,020,465\n\n\n\nGross profit\n\n\n17,140\n\n\n\n23,973\n\n\n\n61,606\n\n\n\n53,489\n\n\n\nOperating expenses:\n\n\n\n\n\n\n\n\n\n\nSales, marketing and operating\n\n\n16,864\n\n\n\n27,235\n\n\n\n59,546\n\n\n\n98,626\n\n\n\nGeneral and administrative\n\n\n8,254\n\n\n\n14,124\n\n\n\n30,747\n\n\n\n41,316\n\n\n\nTechnology and development\n\n\n947\n\n\n\n2,156\n\n\n\n3,684\n\n\n\n6,709\n\n\n\nTotal operating expenses\n\n\n26,065\n\n\n\n43,515\n\n\n\n93,977\n\n\n\n146,651\n\n\n\nLoss from operations\n\n\n(8,925\n)\n\n\n(19,542\n)\n\n\n(32,371\n)\n\n\n(93,162\n)\n\n\nOther income (expense):\n\n\n\n\n\n\n\n\n\n\nChange in fair value of warrant liabilities\n\n\n14\n\n\n\n131\n\n\n\n349\n\n\n\n177\n\n\n\nInterest expense\n\n\n(5,114\n)\n\n\n(4,406\n)\n\n\n(14,600\n)\n\n\n(13,705\n)\n\n\nOther income, net\n\n\n512\n\n\n\n3,837\n\n\n\n1,881\n\n\n\n5,084\n\n\n\nTotal other expense\n\n\n(4,588\n)\n\n\n(438\n)\n\n\n(12,370\n)\n\n\n(8,444\n)\n\n\nLoss before income taxes\n\n\n(13,513\n)\n\n\n(19,980\n)\n\n\n(44,741\n)\n\n\n(101,606\n)\n\n\nIncome tax expense\n\n\n(24\n)\n\n\n(6\n)\n\n\n(93\n)\n\n\n(171\n)\n\n\nNet loss\n\n$\n(13,537\n)\n\n$\n(19,986\n)\n\n$\n(44,834\n)\n\n$\n(101,777\n)\n\n\nNet loss per share, basic\n\n$\n(0.49\n)\n\n$\n(0.73\n)\n\n$\n(1.64\n)\n\n$\n(3.90\n)\n\n\nNet loss per share, diluted\n\n$\n(0.49\n)\n\n$\n(0.73\n)\n\n$\n(1.64\n)\n\n$\n(3.90\n)\n\n\nWeighted average common shares outstanding, basic\n\n\n27,439\n\n\n\n27,276\n\n\n\n27,388\n\n\n\n26,079\n\n\n\nWeighted average common shares outstanding, diluted\n\n\n27,439\n\n\n\n27,276\n\n\n\n27,388\n\n\n\n26,079\n\n\n\n\n\n\n\nOFFERPAD SOLUTIONS INC.Condensed Consolidated Balance Sheets\n\n\n\n\n\n\n \n\n\n\n\nSeptember 30,\n\nDecember 31,\n\n\n(in thousands, except par value per share) (Unaudited)\n\n2024\n\n2023\n\n\nASSETS\n\n\n\n\n\n\nCurrent assets:\n\n\n\n\n\n\nCash and cash equivalents\n\n$\n48,504\n\n\n$\n75,967\n\n\n\nRestricted cash\n\n\n9,922\n\n\n\n3,967\n\n\n\nAccounts receivable\n\n\n5,589\n\n\n\n9,935\n\n\n\nReal estate inventory\n\n\n256,472\n\n\n\n276,500\n\n\n\nPrepaid expenses and other current assets\n\n\n2,553\n\n\n\n5,236\n\n\n\nTotal current assets\n\n\n323,040\n\n\n\n371,605\n\n\n\nProperty and equipment, net\n\n\n5,190\n\n\n\n4,517\n\n\n\nOther non-current assets\n\n\n10,258\n\n\n\n3,572\n\n\n\nTOTAL ASSETS\n\n$\n338,488\n\n\n$\n379,694\n\n\n\nLIABILITIES AND STOCKHOLDERS’ EQUITY\n\n\n\n\n\n\nCurrent liabilities:\n\n\n\n\n\n\nAccounts payable\n\n$\n2,564\n\n\n$\n4,946\n\n\n\nAccrued and other current liabilities\n\n\n10,090\n\n\n\n13,859\n\n\n\nSecured credit facilities and other debt, net\n\n\n216,439\n\n\n\n227,132\n\n\n\nSecured credit facilities and other debt - related party\n\n\n34,406\n\n\n\n30,092\n\n\n\nTotal current liabilities\n\n\n263,499\n\n\n\n276,029\n\n\n\nWarrant liabilities\n\n\n122\n\n\n\n471\n\n\n\nOther long-term liabilities\n\n\n10,154\n\n\n\n1,418\n\n\n\nTotal liabilities\n\n\n273,775\n\n\n\n277,918\n\n\n\nCommitments and contingencies\n\n\n\n\n\n\nStockholders’ equity:\n\n\n\n\n\n\nClass A common stock, $0.0001 par value; 2,000,000 shares authorized; 27,361 and 27,233 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively\n\n\n3\n\n\n\n3\n\n\n\nAdditional paid in capital\n\n\n507,431\n\n\n\n499,660\n\n\n\nAccumulated deficit\n\n\n(442,721\n)\n\n\n(397,887\n)\n\n\nTotal stockholders’ equity\n\n\n64,713\n\n\n\n101,776\n\n\n\nTOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY\n\n$\n338,488\n\n\n$\n379,694\n\n\n\n\n\n\n\nOFFERPAD SOLUTIONS INC.Condensed Consolidated Statements of Cash Flows\n\n\n\n\n \n\n\n\n\nNine Months Ended\n\n\n\n\nSeptember 30,\n\n\n($ in thousands) (Unaudited)\n\n2024\n\n2023\n\n\nCash flows from operating activities:\n\n\n\n\n\n\nNet loss\n\n$\n(44,834\n)\n\n$\n(101,777\n)\n\n\nAdjustments to reconcile net loss to net cash (used in) provided by operating activities:\n\n\n\n\n\n\nDepreciation\n\n\n464\n\n\n\n556\n\n\n\nAmortization of debt financing costs\n\n\n1,466\n\n\n\n3,080\n\n\n\nReal estate inventory valuation adjustment\n\n\n2,016\n\n\n\n8,372\n\n\n\nStock-based compensation\n\n\n7,831\n\n\n\n5,915\n\n\n\nChange in fair value of warrant liabilities\n\n\n(349\n)\n\n\n(177\n)\n\n\nChange in fair value of derivative instruments\n\n\n—\n\n\n\n(1,994\n)\n\n\nLoss on disposal of property and equipment\n\n\n62\n\n\n\n30\n\n\n\nChanges in operating assets and liabilities:\n\n\n\n\n\n\nAccounts receivable\n\n\n4,346\n\n\n\n(1,524\n)\n\n\nReal estate inventory\n\n\n18,012\n\n\n\n366,728\n\n\n\nPrepaid expenses and other assets\n\n\n3,920\n\n\n\n3,541\n\n\n\nAccounts payable\n\n\n(2,382\n)\n\n\n1,712\n\n\n\nAccrued and other liabilities\n\n\n(2,956\n)\n\n\n(7,507\n)\n\n\nNet cash (used in) provided by operating activities\n\n\n(12,404\n)\n\n\n276,955\n\n\n\nCash flows from investing activities:\n\n\n\n\n\n\nPurchases of property and equipment\n\n\n(1,245\n)\n\n\n(90\n)\n\n\nProceeds from sale of property and equipment\n\n\n46\n\n\n\n—\n\n\n\nPurchases of derivative instruments\n\n\n—\n\n\n\n(2,569\n)\n\n\nProceeds from sale of derivative instruments\n\n\n—\n\n\n\n2,981\n\n\n\nNet cash (used in) provided by investing activities\n\n\n(1,199\n)\n\n\n322\n\n\n\nCash flows from financing activities:\n\n\n\n\n\n\nBorrowings from credit facilities and other debt\n\n\n628,105\n\n\n\n687,715\n\n\n\nRepayments of credit facilities and other debt\n\n\n(635,877\n)\n\n\n(1,080,821\n)\n\n\nPayment of debt financing costs\n\n\n(73\n)\n\n\n(264\n)\n\n\nProceeds from exercise of stock options\n\n\n17\n\n\n\n53\n\n\n\nPayments for taxes related to stock-based awards\n\n\n(77\n)\n\n\n(78\n)\n\n\nBorrowings from warehouse lending facility\n\n\n—\n\n\n\n21,951\n\n\n\nRepayments of warehouse lending facility\n\n\n—\n\n\n\n(21,951\n)\n\n\nProceeds from issuance of pre-funded warrants\n\n\n—\n\n\n\n90,000\n\n\n\nProceeds from exercise of pre-funded warrants\n\n\n—\n\n\n\n11\n\n\n\nIssuance cost of pre-funded warrants\n\n\n—\n\n\n\n(784\n)\n\n\nNet cash used in financing activities\n\n\n(7,905\n)\n\n\n(304,168\n)\n\n\nNet change in cash, cash equivalents and restricted cash\n\n\n(21,508\n)\n\n\n(26,891\n)\n\n\nCash, cash equivalents and restricted cash, beginning of period\n\n\n79,934\n\n\n\n140,299\n\n\n\nCash, cash equivalents and restricted cash, end of period\n\n$\n58,426\n\n\n$\n113,408\n\n\n\nReconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet:\n\n\n\n\n\n\nCash and cash equivalents\n\n$\n48,504\n\n\n$\n105,999\n\n\n\nRestricted cash\n\n\n9,922\n\n\n\n7,409\n\n\n\nTotal cash, cash equivalents and restricted cash\n\n$\n58,426\n\n\n$\n113,408\n\n\n\nSupplemental disclosure of cash flow information:\n\n\n\n\n\n\nCash payments for interest\n\n$\n19,204\n\n\n$\n23,406\n\n\n\n\nNon-GAAP Financial Measures\nIn addition to Offerpad’s results of operations above, Offerpad reports certain financial measures that are not required by, or presented in accordance with, U.S. generally accepted accounting principles (\"GAAP\"). These measures have limitations as analytical tools when assessing Offerpad’s operating performance and should not be considered in isolation or as a substitute for GAAP measures, including gross profit and net income.\nOfferpad may calculate or present its non-GAAP financial measures differently than other companies who report measures with similar titles and, as a result, the non-GAAP financial measures Offerpad reports may not be comparable with those of companies in Offerpad’s industry or in other industries. Offerpad has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted net income (loss) within this press release because Offerpad is unable to calculate certain reconciling items without making unreasonable efforts. These items, which include, but are not limited to, stock-based compensation with respect to future grants and forfeitures, could materially affect the computation of forward-looking net income (loss), are inherently uncertain and depend on various factors, some of which are outside of Offerpad’s control.\nAdjusted Gross Profit, Contribution Profit, and Contribution Profit After Interest (and related margins)\nTo provide investors with additional information regarding Offerpad’s margins, Offerpad has included Adjusted Gross Profit, Contribution Profit, and Contribution Profit After Interest (and related margins), which are non-GAAP financial measures. Offerpad believes that Adjusted Gross Profit, Contribution Profit, and Contribution Profit After Interest are useful financial measures for investors as they are used by management in evaluating unit level economics and operating performance across Offerpad’s markets. Each of these measures is intended to present the economics related to homes sold during a given period. Offerpad does so by including revenue generated from homes sold (and ancillary services) in the period and only the expenses that are directly attributable to such home sales, even if such expenses were recognized in prior periods, and excluding expenses related to homes that remain in real estate inventory as of the end of the period presented. Contribution Profit provides investors a measure to assess Offerpad’s ability to generate returns on homes sold during a reporting period after considering home acquisition costs, renovation and repair costs, and adjusting for holding costs and selling costs. Contribution Profit After Interest further impacts gross profit by including interest costs (including senior and mezzanine secured credit facilities) attributable to homes sold during a reporting period. Offerpad believes these measures facilitate meaningful period over period comparisons and illustrate Offerpad’s ability to generate returns on assets sold after considering the costs directly related to the assets sold in a presented period.\nAdjusted Gross Profit, Contribution Profit and Contribution Profit After Interest (and related margins) are supplemental measures of Offerpad’s operating performance and have limitations as analytical tools. For example, these measures include costs that were recorded in prior periods under GAAP and exclude, in connection with homes held in real estate inventory at the end of the period, costs required to be recorded under GAAP in the same period.\nAccordingly, these measures should not be considered in isolation or as a substitute for analysis of Offerpad’s results as reported under GAAP. Offerpad includes a reconciliation of these measures to the most directly comparable GAAP financial measure, which is gross profit.\nAdjusted Gross Profit / Margin\nOfferpad calculates Adjusted Gross Profit as gross profit under GAAP adjusted for (1) net real estate inventory valuation adjustment plus (2) interest expense associated with homes sold in the presented period and recorded in cost of revenue. Net real estate inventory valuation adjustment is calculated by adding back the real estate inventory valuation adjustment charges recorded during the period on homes that remain in real estate inventory at period end and subtracting the real estate inventory valuation adjustment charges recorded in prior periods on homes sold in the current period. Offerpad defines Adjusted Gross Margin as Adjusted Gross Profit as a percentage of revenue.\nOfferpad views this metric as an important measure of business performance, as it captures gross margin performance isolated to homes sold in a given period and provides comparability across reporting periods. Adjusted Gross Profit helps management assess performance across the key phases of processing a home (acquisitions, renovations, and resale) for a specific resale cohort.\nContribution Profit / Margin\nOfferpad calculates Contribution Profit as Adjusted Gross Profit, minus (1) direct selling costs incurred on homes sold during the presented period, minus (2) holding costs incurred in the current period on homes sold during the period recorded in sales, marketing, and operating, minus (3) holding costs incurred in prior periods on homes sold in the current period recorded in sales, marketing, and operating, plus (4) other income, net which is primarily comprised of interest income earned on our cash and cash equivalents and fair value adjustments of derivative financial instruments. The composition of Offerpad’s holding costs is described in the footnotes to the reconciliation table below. Offerpad defines Contribution Margin as Contribution Profit as a percentage of revenue.\nOfferpad views this metric as an important measure of business performance as it captures the unit level performance isolated to homes sold in a given period and provides comparability across reporting periods. Contribution Profit helps management assess inflows and outflow directly associated with a specific resale cohort.\nContribution Profit / Margin After Interest\nOfferpad defines Contribution Profit After Interest as Contribution Profit, minus (1) interest expense associated with homes sold in the presented period and recorded in cost of revenue, minus (2) interest expense associated with homes sold in the presented period, recorded in costs of sales, and previously excluded from Adjusted Gross Profit, and minus (3) interest expense under Offerpad’s senior and mezzanine secured credit facilities incurred on homes sold during the period. This includes interest expense recorded in prior periods in which the sale occurred. Offerpad’s senior and mezzanine secured credit facilities are secured by their homes in real estate inventory and drawdowns are made on a per-home basis at the time of purchase and are required to be repaid at the time the homes are sold. Offerpad defines Contribution Margin After Interest as Contribution Profit After Interest as a percentage of revenue.\nOfferpad views this metric as an important measure of business performance. Contribution Profit After Interest helps management assess Contribution Margin performance, per above, when fully burdened with costs of financing.\nThe following tables present a reconciliation of Offerpad’s Adjusted Gross (Loss) Profit, Contribution (Loss) Profit and Contribution (Loss) Profit After Interest to Offerpad’s Gross (Loss) Profit, which is the most directly comparable GAAP measure, and Contribution (Loss) Profit Per Home Sold and Contribution (Loss) Profit After Interest Per Home Sold to Offerpad’s Gross (Loss) Profit Per Home Sold, which is the most directly comparable GAAP measure, for the periods indicated:\n\n\n\n\nThree Months Ended\n\nNine Months Ended\n\n\n(in thousands, except percentages and homes sold, unaudited)\nSeptember 30,2024\n\nJune 30,2024\n\nSeptember 30,2023\n\nSeptember 30,2024\n\nSeptember 30,2023\n\n\nGross profit (GAAP)\n$\n17,140\n\n$\n21,871\n\n$\n23,973\n\n$\n61,606\n\n$\n53,489\n\n\nGross margin\n\n8.2%\n\n\n8.7%\n\n\n10.2%\n\n\n8.3%\n\n\n5.0%\n\n\nHomes sold\n\n615\n\n\n742\n\n\n703\n\n\n2,204\n\n\n2,962\n\n\nGross profit per home sold\n$\n27.9\n\n$\n29.5\n\n$\n34.1\n\n$\n28.0\n\n$\n18.1\n\n\nAdjustments:\n\n\n\n\n\n\n\n\n\n\n\nReal estate inventory valuation adjustment - current period (1)\n\n848\n\n\n544\n\n\n918\n\n\n1,060\n\n\n985\n\n\nReal estate inventory valuation adjustment - prior period (2)\n\n(535)\n\n\n(540)\n\n\n(318)\n\n\n(765)\n\n\n(58,125)\n\n\nInterest expense capitalized (3)\n\n1,367\n\n\n1,420\n\n\n235\n\n\n4,456\n\n\n6,270\n\n\nAdjusted gross profit\n$\n18,820\n\n$\n23,295\n\n$\n24,808\n\n$\n66,357\n\n$\n2,619\n\n\nAdjusted gross margin\n\n9.0%\n\n\n9.3%\n\n\n10.6%\n\n\n8.9%\n\n\n0.2%\n\n\nAdjustments:\n\n\n\n\n\n\n\n\n\n\n\nDirect selling costs (4)\n\n(5,767)\n\n\n(6,461)\n\n\n(5,593)\n\n\n(19,197)\n\n\n(29,396)\n\n\nHolding costs on sales - current period (5)(6)\n\n(693)\n\n\n(622)\n\n\n(453)\n\n\n(2,892)\n\n\n(2,328)\n\n\nHolding costs on sales - prior period (5)(7)\n\n(341)\n\n\n(443)\n\n\n(72)\n\n\n(577)\n\n\n(2,166)\n\n\nOther income, net (8)\n\n512\n\n\n615\n\n\n3,837\n\n\n1,881\n\n\n5,084\n\n\nContribution profit (loss)\n$\n12,531\n\n$\n16,384\n\n$\n22,527\n\n$\n45,572\n\n$\n(26,187)\n\n\nContribution margin\n\n6.0%\n\n\n6.5%\n\n\n9.6%\n\n\n6.1%\n\n\n(2.4%)\n\n\nHomes sold\n\n615\n\n\n742\n\n\n703\n\n\n2,204\n\n\n2,962\n\n\nContribution profit (loss) per home sold\n$\n20.4\n\n$\n22.1\n\n$\n32.0\n\n$\n20.7\n\n$\n(8.8)\n\n\nAdjustments:\n\n\n\n\n\n\n\n\n\n\n\nInterest expense capitalized (3)\n\n(1,367)\n\n\n(1,420)\n\n\n(235)\n\n\n(4,456)\n\n\n(6,270)\n\n\nInterest expense on homes sold - current period (9)\n\n(1,865)\n\n\n(2,103)\n\n\n(2,622)\n\n\n(9,787)\n\n\n(11,782)\n\n\nInterest expense on homes sold - prior period (10)\n\n(1,687)\n\n\n(2,133)\n\n\n(554)\n\n\n(2,948)\n\n\n(13,924)\n\n\nContribution profit (loss) after interest\n$\n7,612\n\n$\n10,728\n\n$\n(19,116)\n\n$\n28,381\n\n$\n(58,163)\n\n\nContribution margin after interest\n\n3.7%\n\n\n4.3%\n\n\n8.2%\n\n\n3.8%\n\n\n(5.4%)\n\n\nHomes sold\n\n615\n\n\n742\n\n\n703\n\n\n2,204\n\n\n2,962\n\n\nContribution profit (loss) after interest per home sold\n$\n12.4\n\n$\n14.5\n\n$\n27.2\n\n$\n12.9\n\n$\n(19.6)\n\n\n\n\n\n\n(1)\n\nReal estate inventory valuation adjustment – current period is the real estate inventory valuation adjustments recorded during the period presented associated with homes that remain in real estate inventory at period end.\n\n\n(2)\n\nReal estate inventory valuation adjustment – prior period is the real estate inventory valuation adjustments recorded in prior periods associated with homes that sold in the period presented.\n\n\n(3)\n\nInterest expense capitalized represents all interest related costs, including senior and mezzanine secured credit facilities, incurred on homes sold in the period presented that were capitalized and expensed in cost of sales at the time of sale.\n\n\n(4)\n\nDirect selling costs represents selling costs incurred related to homes sold in the period presented. This primarily includes broker commissions and title and escrow closing fees.\n\n\n(5)\n\nHolding costs primarily include insurance, utilities, homeowners association dues, property taxes, cleaning, and maintenance costs.\n\n\n(6)\n\nRepresents holding costs incurred on homes sold in the period presented and expensed to Sales, marketing, and operating on the Condensed Consolidated Statements of Operations.\n\n\n(7)\n\nRepresents holding costs incurred in prior periods on homes sold in the period presented and expensed to Sales, marketing, and operating on the Condensed Consolidated Statements of Operations.\n\n\n(8)\n\nOther income, net principally represents interest income earned on our cash and cash equivalents and fair value adjustments of derivative financial instruments.\n\n\n(9)\n\nRepresents both senior and mezzanine interest expense incurred on homes sold in the period presented and expensed to interest expense on the Condensed Consolidated Statements of Operations.\n\n\n(10)\n\nRepresents both senior and mezzanine secured credit facilities interest expense incurred in prior periods on homes sold in the period presented and expensed to interest expense on the Condensed Consolidated Statements of Operations.\n\n\n\nAdjusted Net Income (Loss) and Adjusted EBITDA\nOfferpad also presents Adjusted Net Income (Loss) and Adjusted EBITDA, which are non-GAAP financial measures, which the management team uses to assess Offerpad’s underlying financial performance. Offerpad believes these measures provide insight into period over period performance, adjusted for non-recurring or non-cash items.\nOfferpad calculates Adjusted Net Income (Loss) as GAAP Net Income (Loss) adjusted for the change in fair value of warrant liabilities. Offerpad defines Adjusted Net Income (Loss) Margin as Adjusted Net Income (Loss) as a percentage of revenue.\nOfferpad calculates Adjusted EBITDA as Adjusted Net Income (Loss) adjusted for interest expense, amortization of capitalized interest, taxes, depreciation and amortization and stock-based compensation expense. Offerpad defines Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of revenue.\nAdjusted Net Income (Loss) and Adjusted EBITDA are supplemental to Offerpad’s operating performance measures calculated in accordance with GAAP and have important limitations. For example, Adjusted Net Income (Loss) and Adjusted EBITDA exclude the impact of certain costs required to be recorded under GAAP and could differ substantially from similarly titled measures presented by other companies in Offerpad’s industry or companies in other industries. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of Offerpad’s results as reported under GAAP.\nThe following table presents a reconciliation of Offerpad’s Adjusted Net Income (Loss) and Adjusted EBITDA to their GAAP Net Income (Loss), which is the most directly comparable GAAP measure, for the periods indicated:\n\n\n\n\nThree Months Ended\n\nNine Months Ended\n\n\n(in thousands, except percentages, unaudited)\nSeptember 30,2024\n\nJune 30,2024\n\nSeptember 30,2023\n\nSeptember 30,2024\n\nSeptember 30,2023\n\n\nNet loss (GAAP)\n$\n(13,537)\n\n$\n(13,782)\n\n$\n(19,986)\n\n$\n(44,834)\n\n$\n(101,777)\n\n\nNet loss margin\n\n(6.5%)\n\n\n(5.5%)\n\n\n(8.5%)\n\n\n(6.0%)\n\n\n(9.5%)\n\n\nChange in fair value of warrant liabilities\n\n(14)\n\n\n9\n\n\n(131)\n\n\n(349)\n\n\n(177)\n\n\nAdjusted net loss\n$\n(13,551)\n\n$\n(13,773)\n\n$\n(20,117)\n\n$\n(45,183)\n\n$\n(101,954)\n\n\nAdjusted net loss margin\n\n(6.5%)\n\n\n(5.5%)\n\n\n(8.6%)\n\n\n(6.1%)\n\n\n(9.5%)\n\n\nAdjustments:\n\n\n\n\n\n\n\n\n\n\n\nInterest expense\n\n5,114\n\n\n4,581\n\n\n4,406\n\n\n14,600\n\n\n13,705\n\n\nAmortization of capitalized interest (1)\n\n1,367\n\n\n1,420\n\n\n235\n\n\n4,456\n\n\n6,270\n\n\nIncome tax (benefit) expense\n\n24\n\n\n(54)\n\n\n6\n\n\n93\n\n\n171\n\n\nDepreciation and amortization\n\n150\n\n\n148\n\n\n175\n\n\n464\n\n\n556\n\n\nAmortization of stock-based compensation\n\n715\n\n\n3,249\n\n\n2,017\n\n\n7,831\n\n\n5,915\n\n\nAdjusted EBITDA\n$\n(6,181)\n\n$\n(4,429)\n\n$\n(13,278)\n\n$\n(17,739)\n\n$\n(75,337)\n\n\nAdjusted EBITDA margin\n\n(3.0%)\n\n\n(1.8%)\n\n\n(5.7%)\n\n\n(2.4%)\n\n\n(7.0%)\n\n\n\n\n\n\n(1)\n\nAmortization of capitalized interest represents all interest related costs, including senior and mezzanine secured interest related costs, incurred on homes sold in the period presented that were capitalized and expensed in cost of sales at the time of sale.\n\n\n\nView source version on businesswire.com: https://www.businesswire.com/news/home/20241104436789/en/\nContacts\nInvestorsInvestors@offerpad.com\nMediaPress@offerpad.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2481572895"}