Press Release: Offerpad Strengthens Liquidity and Drives Margin Improvement in Third Quarter 2025

Dow Jones11-04
TEMPE, Ariz.--(BUSINESS WIRE)--November 03, 2025-- 

Offerpad $(OPAD)$, a leading real estate tech company built to simplify the home selling and buying experience, today announced its financial results for the third quarter ended September 30, 2025.

Offerpad reported revenue of $132.7M and sold 367 homes during the quarter. The company continued to demonstrate operational discipline and saw strong momentum across its asset-light services, supporting platform scalability and long-term growth.

"We've spent the past several quarters strengthening the foundation of our business and expanding our reach through asset-light services," said Brian Bair, Chairman and CEO of Offerpad. "That discipline is paying off. We're executing with focus, scaling efficiently with partners, and believe we are building real momentum across HomePro, Renovate, and Direct+. We expect that as the market stabilizes, we're positioned to grow from a stronger, more diversified platform."

Q3 2025 Highlights

   --  Offerpad's total liquidity exceeds $75M, strengthened by Q3 and ongoing 
      capital raise activities 
 
   --  Operating expenses improved by 38% year over year, reflecting ongoing 
      cost efficiencies and streamlined operations 
 
   --  Continued expansion of asset-light services, including HomePro, 
      Renovate, and Direct+, which we believe positions Offerpad for scalable, 
      higher-margin growth as market conditions stabilize 
 
   --  Offerpad Renovate delivered $8.5 million in revenue, the highest 
      quarterly revenue since the product's launch, reflecting increased demand 
      from institutional and investor partners 

Financial Summary

   --  Revenue: $132.7M 
 
   --  Homes Sold: 367 
 
   --  Gross Margin: 7.0% 
 
   --  Net Loss: ($11.6M) 
 
   --  Adjusted EBITDA Loss: ($4.6M), improving 4% sequentially 
 
   --  Unrestricted Cash: $31.0M 
 
   --  Total Liquidity: Over $75M 

"Our ongoing capital raise efforts have further strengthened our balance sheet and are expected to support continued investment in high-margin, asset-light growth areas," said Peter Knag, Chief Financial Officer of Offerpad. "With a lean cost structure, disciplined operations, and strong liquidity, we believe we're well positioned to drive ongoing improvement in margins and cash flow."

Looking Ahead

Offerpad expects Q4 2025 revenue to be in the range of $100M to $125M with 300 to 350 homes sold. The company anticipates Adjusted EBITDA similar to Q3 2025 as it works toward scaling its asset-light services and maintains cost discipline.

For additional information, please refer to Offerpad's full financial results available at investor.offerpad.com.

 
Q3 2025 Financial Results (quarter over quarter) 
 
 
                                                                    Percentage 
                                                Q3 2025   Q2 2025     Change 
----------------------------------------------  --------  --------  ---------- 
 Homes acquired                                   203       443       (54%) 
----------------------------------------------  --------  --------  ---------- 
 Homes sold                                       367       452       (19%) 
----------------------------------------------  --------  --------  ---------- 
 Revenue                                        $132.7M   $160.3M     (17%) 
----------------------------------------------  --------  --------  ---------- 
 Gross profit                                    $9.3M     $14.2M     (34%) 
----------------------------------------------  --------  --------  ---------- 
 Net loss                                       ($11.6M)  ($10.9M)     (6%) 
----------------------------------------------  --------  --------  ---------- 
 Adjusted EBITDA                                ($4.6M)   ($4.8M)       4% 
----------------------------------------------  --------  --------  ---------- 
 Diluted Net Loss per Share                     ($0.37)   ($0.39)       5% 
----------------------------------------------  --------  --------  ---------- 
 Gross profit per home sold                     $25,400   $31,400     (19%) 
----------------------------------------------  --------  --------  ---------- 
 Contribution profit after interest per home 
  sold                                           $8,200   $12,400     (34%) 
----------------------------------------------  --------  --------  ---------- 
 Cash and cash equivalents                       $31.0M    $22.7M      37% 
----------------------------------------------  --------  --------  ---------- 
 
 
Q3 2025 Financial Results (year over year) 
 
 
                                                                    Percentage 
                                                Q3 2025   Q3 2024     Change 
----------------------------------------------  --------  --------  ---------- 
 Homes acquired                                   203       422       (52%) 
----------------------------------------------  --------  --------  ---------- 
 Homes sold                                       367       615       (40%) 
----------------------------------------------  --------  --------  ---------- 
 Revenue                                        $132.7M   $208.1M     (36%) 
----------------------------------------------  --------  --------  ---------- 
 Gross profit                                    $9.3M     $17.1M     (46%) 
----------------------------------------------  --------  --------  ---------- 
 Net loss                                       ($11.6M)  ($13.5M)     14% 
----------------------------------------------  --------  --------  ---------- 
 Adjusted EBITDA                                ($4.6M)   ($6.2M)      26% 
----------------------------------------------  --------  --------  ---------- 
 Diluted Net Loss per Share                     ($0.37)   ($0.49)     (24%) 
----------------------------------------------  --------  --------  ---------- 
 Gross profit per home sold                     $25,400   $27,900      (9%) 
----------------------------------------------  --------  --------  ---------- 
 Contribution profit after interest per home 
  sold                                           $8,200   $12,400     (34%) 
----------------------------------------------  --------  --------  ---------- 
 Cash and cash equivalents                       $31.0M    $48.5M     (36%) 
----------------------------------------------  --------  --------  ---------- 
 

Additional information regarding Offerpad's third quarter of 2025 financial results and management commentary can be found by accessing the Company's Quarterly Shareholder presentation on the Offerpad investor relations website.

Fourth Quarter 2025 Outlook

Offerpad is providing its fourth quarter outlook for 2025 as follows:

 
                       Q4 2025 Outlook 
--------------------  ------------------ 
 Homes Sold               300 to 350 
--------------------  ------------------ 
 Revenue                $100M to $125M 
--------------------  ------------------ 
 Adjusted EBITDA(1)   Similar to Q3 2025 
--------------------  ------------------ 
 

(1) See Non-GAAP financial measures below for an explanation of why a reconciliation of this guidance cannot be provided.

Conference Call and Webcast Details

Brian Bair, Chairman and CEO, and Peter Knag, CFO, will host a conference call and accompanying webcast on November 3, 2025, 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.

About Offerpad

Offerpad, dedicated to simplifying the process of buying and selling homes, is a publicly traded company committed to providing comprehensive solutions that remove 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 have leveraged local expertise in residential real estate alongside proprietary technology to guide homeowners at every step. Learn more at www.offerpad.com.

#OPAD_IR

Forward-Looking Statements

Certain 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 of 2025, and expectations regarding market conditions, strategic imperatives and long-term sustainability and growth 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 grow 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; Offerpad's ability to regain compliance with New York Stock Exchange ("NYSE") Rule 802.01B, or failure to comply with other NYSE continued listing rules. 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, 2024 filed with the Securities and Exchange Commission on February 25, 2025, 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.

 
                      OFFERPAD SOLUTIONS INC. 
           Condensed Consolidated Statements of Operations 
 
 
                                                Three Months Ended 
                                                  September 30, 
                                              ---------------------- 
(in thousands, except per share data) 
(Unaudited)                                     2025        2024 
                                              ---------  ----------- 
Revenue                                       $132,681   $208,067 
Cost of revenue                                123,345    190,927 
                                               -------    ------- 
Gross profit                                     9,336     17,140 
                                               -------    ------- 
Operating expenses: 
     Sales, marketing and operating             10,141     16,864 
     General and administrative                  5,149      8,254 
     Technology and development                    788        947 
                                               -------    ------- 
          Total operating expenses              16,078     26,065 
                                               -------    ------- 
Loss from operations                            (6,742)    (8,925) 
Other income (expense): 
     Change in fair value of warrant 
      liabilities                                (987)         14 
     Interest expense                          (3,646)     (5,114) 
     Other income, net                             151        512 
                                               -------    ------- 
          Total other expense                   (4,482)    (4,588) 
                                               -------    ------- 
Loss before income taxes                       (11,224)   (13,513) 
Income tax expense                                (380)      (24) 
                                               -------    ------- 
Net loss                                      $(11,604)  $(13,537) 
                                               =======    ======= 
Net loss per share, basic                     $  (0.37)  $  (0.49) 
                                               =======    ======= 
Net loss per share, diluted                   $  (0.37)  $  (0.49) 
                                               =======    ======= 
Weighted average common shares outstanding, 
 basic                                          31,281     27,439 
                                               =======    ======= 
Weighted average common shares outstanding, 
 diluted                                        31,281     27,439 
                                               =======    ======= 
 
 
                        OFFERPAD SOLUTIONS INC. 
                  Condensed Consolidated Balance Sheets 
 
 
                                        September 30,     December 31, 
                                       ---------------  ---------------- 
(in thousands, except par value per 
share) (Unaudited)                          2025              2024 
                                       ---------------  ---------------- 
ASSETS 
Current assets: 
     Cash and cash equivalents         $       30,959   $      43,018 
     Restricted cash                            2,685          30,608 
     Accounts receivable                        7,388           3,848 
     Real estate inventory                    162,367         214,174 
     Prepaid expenses and other 
      current assets                            2,207           2,564 
                                           ----------       --------- 
          Total current assets                205,606         294,212 
     Property and equipment, net                9,313           9,127 
     Other non-current assets                   8,542           9,714 
                                           ----------       --------- 
TOTAL ASSETS                           $      223,461   $     313,053 
                                           ==========       ========= 
LIABILITIES AND STOCKHOLDERS' EQUITY 
Current liabilities: 
     Accounts payable                  $        1,912   $       1,922 
     Accrued and other current 
      liabilities                              10,361          11,804 
     Secured credit facilities and 
      other debt, net                         126,335         195,378 
     Secured credit facilities and 
      other debt - related party               15,828          41,861 
     Warrant liabilities                        1,146               - 
                                           ----------       --------- 
          Total current liabilities           155,582         250,965 
     Revolving credit facility, net            14,638               - 
     Warrant liabilities                            -             231 
     Other long-term liabilities               13,389          14,204 
                                           ----------       --------- 
          Total liabilities                   183,609         265,400 
                                           ----------       --------- 
Stockholders' equity: 
     Class A common stock, $0.0001 
      par value; 2,000,000 shares 
      authorized; 34,928 and 27,379 
      shares issued and outstanding 
      as of September 30, 2025 and 
      December 31, 2024, 
      respectively                                  3               3 
     Additional paid in capital               537,459         507,696 
     Accumulated deficit                     (497,610)       (460,046) 
                                           ----------       --------- 
          Total stockholders' equity           39,852          47,653 
                                           ----------       --------- 
TOTAL LIABILITIES AND STOCKHOLDERS' 
 EQUITY                                 $     223,461    $    313,053 
                                           ==========       ========= 
 
 
                      OFFERPAD SOLUTIONS INC. 
           Condensed Consolidated Statements of Cash Flows 
 
 
                                               Nine Months Ended 
                                                 September 30, 
                                            ------------------------ 
($ in thousands) (Unaudited)                   2025         2024 
                                            ----------  ------------ 
Cash flows from operating activities: 
   Net loss                                 $ (37,564)  $ (44,834) 
   Adjustments to reconcile net loss to 
   net cash provided by (used in) 
   operating activities: 
      Depreciation                                712         464 
      Amortization of debt financing costs        700       1,466 
      Real estate inventory valuation 
       adjustment                               4,801       2,016 
      Stock-based compensation                  3,854       7,831 
      Change in fair value of warrant 
       liabilities                                915        (349) 
      Loss on disposal of property and 
       equipment                                  162          62 
      Changes in operating assets and 
      liabilities: 
         Accounts receivable                   (3,540)      4,346 
         Real estate inventory                 47,006      18,012 
         Prepaid expenses and other assets      1,529       3,920 
         Accounts payable                         (10)     (2,382) 
         Accrued and other liabilities         (2,258)     (2,956) 
                                             --------    -------- 
Net cash provided by (used in) operating 
 activities                                    16,307     (12,404) 
                                             --------    -------- 
Cash flows from investing activities: 
   Purchases of property and equipment         (1,079)     (1,245) 
   Proceeds from sale of property and 
    equipment                                      19          46 
                                             --------    -------- 
Net cash used in investing activities          (1,060)     (1,199) 
                                             --------    -------- 
Cash flows from financing activities: 
   Borrowings from secured credit 
    facilities and other debt                 360,641     628,105 
   Repayments of secured credit facilities 
    and other debt                           (456,293)   (635,877) 
   Payment of debt financing costs               (486)        (73) 
   Borrowings on revolving credit 
   facility                                    15,000          -- 
   Proceeds from July 2025 Offering             6,000          -- 
   Issuance costs of July 2025 Offering          (839)         -- 
   Proceeds from Sale Agreement offering       21,718          -- 
   Issuance costs of Sale Agreement 
    offering                                     (938)         -- 
   Proceeds from exercise of stock options        168          17 
   Payments for taxes related to 
    stock-based awards                           (200)        (77) 
                                             --------    -------- 
Net cash used in financing activities         (55,229)     (7,905) 
                                             --------    -------- 
Net change in cash, cash equivalents and 
 restricted cash                              (39,982)    (21,508) 
Cash, cash equivalents and restricted 
 cash, beginning of period                     73,626      79,934 
                                             --------    -------- 
Cash, cash equivalents and restricted 
 cash, end of period                        $  33,644   $  58,426 
                                             --------    -------- 
Reconciliation of cash, cash equivalents 
and restricted cash to the condensed 
consolidated balance sheet: 
   Cash and cash equivalents                $  30,959   $  48,504 
   Restricted cash                              2,685       9,922 
                                             --------    -------- 
Total cash, cash equivalents and 
 restricted cash                            $  33,644   $  58,426 
                                             ========    ======== 
Supplemental disclosure of cash flow 
information: 
   Cash payments for interest               $  12,958   $  19,204 
   Cash payments for taxes, net of refunds 
    received                                $     392   $     262 
 

Non-GAAP Financial Measures

In 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.

Offerpad 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.

Adjusted Gross Profit, Contribution Profit, and Contribution Profit After Interest (and related margins)

To 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.

Adjusted 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.

Accordingly, 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.

Adjusted Gross Profit / Margin

Offerpad 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.

Offerpad 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.

Contribution Profit / Margin

Offerpad 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. 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.

Offerpad 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.

Contribution Profit / Margin After Interest

Offerpad 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 and other senior secured debt 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 and other senior secured debt 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.

Offerpad 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.

The following table presents 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:

 
                                    Three Months Ended 
                     ------------------------------------------------- 
  (in thousands, 
except percentages 
 and homes sold,       September 30,     June 30,      September 30, 
    unaudited)              2025            2025            2024 
                     -----------------  -----------  ----------------- 
Gross profit (GAAP)   $      9,336      $14,189       $     17,140 
Gross margin                   7.0%         8.9%               8.2% 
Homes sold                     367          452                615 
Gross profit per 
 home sold            $       25.4      $  31.4       $       27.9 
Adjustments: 
     Real estate 
      inventory 
      valuation 
      adjustment - 
      current 
      period (1)             2,005        1,052                848 
     Real estate 
      inventory 
      valuation 
      adjustment - 
      prior period 
      (2)                   (1,056)      (1,556)              (535) 
     Interest 
      expense 
      capitalized 
      (3)                      951        1,240              1,367 
                         ---------       ------          --------- 
Adjusted gross 
 profit               $     11,236      $14,925       $     18,820 
Adjusted gross 
 margin                        8.5%         9.3%               9.0% 
Adjustments: 
     Direct selling 
      costs (4)             (3,471)      (4,230)            (5,767) 
     Holding costs 
      on sales - 
      current 
      period 
      (5)(6)                  (436)        (361)              (693) 
     Holding costs 
      on sales - 
      prior period 
      (5)(7)                  (435)        (507)              (341) 
     Other income, 
      net (8)                  151          244                512 
                         ---------       ------          --------- 
Contribution profit   $      7,045      $10,071       $     12,531 
Contribution margin            5.3%         6.3%               6.0% 
Homes sold                     367          452                615 
Contribution profit 
 per home sold        $       19.2      $  22.3       $       20.4 
Adjustments: 
     Interest 
      expense 
      capitalized 
      (3)                     (951)      (1,240)            (1,367) 
     Interest 
      expense on 
      homes sold - 
      current 
      period (9)            (1,252)      (1,342)            (1,865) 
     Interest 
      expense on 
      homes sold - 
      prior period 
      (10)                  (1,823)      (1,866)            (1,687) 
                         ---------       ------          --------- 
Contribution profit 
 after interest       $      3,019      $ 5,623       $      7,612 
Contribution margin 
 after interest                2.3%         3.5%               3.7% 
Homes sold                     367          452                615 
                         ---------       ------          --------- 
Contribution profit 
 after interest per 
 home sold            $        8.2      $  12.4       $       12.4 
 
 
(1)     Real 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. 
(2)     Real 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. 
(3)     Interest expense capitalized represents all interest related costs 
        under our senior and mezzanine secured credit facilities and other 
        senior secured debt, incurred on homes sold in the period presented 
        that were capitalized and expensed in cost of sales at the time of 
        sale. 
(4)     Direct 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. 
(5)     Holding costs primarily include insurance, utilities, homeowners 
        association dues, property taxes, cleaning, and maintenance costs. 
(6)     Represents holding costs incurred on homes sold in the period 
        presented and expensed to Sales, marketing, and operating on the 
        Condensed Consolidated Statements of Operations. 
(7)     Represents 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. 
(8)     Other income, net principally represents interest income earned on our 
        cash and cash equivalents. 
(9)     Represents interest expense under our senior and mezzanine secured 
        credit facilities and other senior secured debt incurred on homes sold 
        in the period presented and expensed to interest expense on the 
        Condensed Consolidated Statements of Operations. 
(10)    Represents interest expense under our senior and mezzanine secured 
        credit facilities secured credit facilities and other senior secured 
        debt incurred in prior periods on homes sold in the period presented 
        and expensed to interest expense on the Condensed Consolidated 
        Statements of Operations. 
 

Adjusted Net Income (Loss) and Adjusted EBITDA

Offerpad 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.

Offerpad 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.

Offerpad 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.

Adjusted 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.

The 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:

 
                                    Three Months Ended 
                     ------------------------------------------------- 
(in thousands, 
except percentages,   September 30,      June 30,      September 30, 
unaudited)                 2025            2025             2024 
                     ----------------  ------------  ----------------- 
Net loss (GAAP)       $   (11,604)     $(10,903)      $    (13,537) 
Net loss margin              (8.7%)        (6.8%)             (6.5%) 
     Change in fair 
      value of 
      warrant 
      liabilities             987          (329)               (14) 
                         --------       -------          --------- 
Adjusted net loss     $   (10,617)     $(11,232)      $    (13,551) 
Adjusted net loss 
 margin                      (8.0%)        (7.0%)             (6.5%) 
Adjustments: 
     Interest 
      expense               3,646         3,665              5,114 
     Amortization 
      of 
      capitalized 
      interest (1)            951         1,240              1,367 
     Income tax 
      expense                 380            30                 24 
     Depreciation 
      and 
      amortization            253           253                150 
     Amortization 
      of 
      stock-based 
      compensation            815         1,257                715 
                         --------       -------          --------- 
Adjusted EBITDA       $    (4,572)     $ (4,787)      $     (6,181) 
Adjusted EBITDA 
 margin                      (3.4%)        (3.0%)             (3.0%) 
 
 
(1)    The original source-language text of this announcement is the official, 
       authoritative version. Translations are provided as an accommodation 
       only, and should be cross-referenced with the source-language text, 
       which is the only version of the text intended to have legal effect. 
       Amortization of capitalized interest represents all interest related 
       costs under our senior and mezzanine secured credit facilities and 
       other senior secured debt, incurred on homes sold in the period 
       presented that were capitalized and expensed in cost of sales at the 
       time of sale. 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20251103299481/en/

 
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(END) Dow Jones Newswires

November 03, 2025 16:10 ET (21:10 GMT)

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