Earnings release
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NEWS RELEASE O erpad Reports Second Quarter 2025 Results, Highlights Capital Raise and Momentum Across Asset-Light Services 2025-08-04 TEMPE, Ariz.--(BUSINESS WIRE)-- O erpad (NYSE: OPAD), a leading real estate tech company built to simplify the home selling and buying experience, today announced its nancial results for the second quarter ended June 30, 2025. O erpad reported revenue of $160.3M and sold 452 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’re seeing strong validation of our model and the progress we’ve made,” said Brian Bair, Chairman and CEO of O erpad. “We’ve built a platform that brings together sellers, agents, cash buyers, and institutional partners, creating a true real estate solutions center. This foundation positions us to scale our asset-light services, operate with greater e ciency, and be ready to accelerate as market activity returns.” Q2 2025 Highlights Capital Raise: With $21M raised in July, O erpad’s total liquidity exceeds $75M, strengthening the balance sheet and supporting key growth initiatives. HomePro Expansion: Now live in all markets, O erpad HomePro enables specialized agents to deliver in- person selling solutions—including O erpad’s cash o er, open market listings, third-party investor marketplace, and an upside program that provides cash now, plus the potential for more after listing. HomePro is already driving strong engagement and conversations directly in the seller’s living room. 1
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Record Renovate Quarter: O erpad Renovate delivered $6.4 million in revenue, the highest quarterly revenue since the product’s launch, re ecting increased demand from institutional and investor partners. Advancing Direct+: Upgrades to the asset-light Direct+ platform are improving SFR buyer engagement and aligning inventory with partner buy boxes. Financial Summary Revenue: $160.3M Homes Sold: 452 Gross Margin: 8.9% Adjusted EBITDA Loss: ($4.8M), improving 39% sequentially Unrestricted Cash: $22.6M Total Liquidity: Over $55M “Our July capital raise totaled $21M, is primarily non-dilutive, and gives us the ability to continue investing in scalable, margin-positive areas of the business,” said Peter Knag, CFO of O erpad. “While our cash o er remains the cornerstone of our model, we’re also advancing complementary services like HomePro, which enhances how we deliver solutions in-person, along with Renovate and Direct+, which help us reach new customer segments and serve institutional buyers. These strategic investments support our asset-light approach and long-term growth.” Looking Ahead O erpad expects Q3 2025 revenue to be in the range of $130 to $150 Million with 360 to 410 homes sold. The company anticipates continued sequential improvement in Adjusted EBITDA as it scales its asset-light services and maintains cost discipline. For additional information, please refer to O erpad’s shareholder letter and full nancial results available at investor.o erpad.com. Q2 2025 Financial Results (quarter over quarter) Q2 2025Q1 2025Percentage Change Homes acquired 443 454 (2%) Homes sold 452 460 (2%) Revenue $160.3M$160.7M (0%) Gross pro t $14.2M $10.5M 35% Net loss ($10.9M)($15.1M) 28% Adjusted EBITDA ($4.8M) ($7.8M) 39% Diluted Net Loss per Share($0.39) ($0.55) 29% 2
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Gross pro t per home sold$31,400 $22,800 37% Contribution pro t after interest per home sold$12,400 $500 2380% Cash and cash equivalents$22.7M $30.8M (26%) Q2 2025 Financial Results (year over year) Q2 2025Q2 2024Percentage Change Homes acquired 443 831 (47%) Homes sold 452 742 (39%) Revenue $160.3M$251.1M (36%) Gross pro t $14.2M $21.9M (35%) Net loss ($10.9M)($13.8M) (21%) Adjusted EBITDA ($4.8M) ($4.4M) (8%) Diluted Net Loss per Share($0.39) ($0.50) 22% Gross pro t per home sold$31,400 $29,500 7% Contribution pro t after interest per home sold$12,400 $14,500 (14%) Cash and cash equivalents$22.7M $56.9M (60%) Additional information regarding O erpad’s second quarter of 2025 nancial results and management commentary can be found by accessing the Company’s Quarterly Shareholder presentation on the O erpad investor relations website. Third Quarter 2025 Outlook O erpad is providing its third quarter outlook for 2025 as follows: Q3 2025 Outlook Homes Sold 400 to 440 Revenue $140M to $160M Adjusted EBITDA1 Sequential Improvement 1 See Non-GAAP nancial 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 August 5, 2025, at 4:30 p.m. ET. The webcast can be accessed on O erpad’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 O erpad 3
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O erpad, 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 o ers a range of services, from consumer cash o ers 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.o erpad.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 O erpad’s future nancial or operating performance. For example, statements regarding O erpad’s nancial outlook, including homes sold, revenue and Adjusted EBITDA, for the rst 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 di er 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, O erpad’s ability to respond to general economic conditions; the health of the U.S. residential real estate industry; O erpad’s ability to grow market share in its existing markets or any new markets it may enter; O erpad’s ability to grow e ectively; O erpad’s ability to accurately value and manage real estate inventory, maintain an adequate and desirable supply of real estate inventory, and manage renovations; O erpad’s ability to successfully launch new product and service o erings, and to manage, develop and re ne its technology platform; O erpad’s ability to maintain and enhance its products and brand, and to attract customers; O erpad’s ability to achieve and maintain pro tability in the future; and the success of strategic relationships with third parties; O erpad’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 O erpad’s Annual Report on Form 10-K for the year ended December 31, 2024 led with the Securities and Exchange Commission on February 25, 2025, and O erpad’s other reports led with the Securities and Exchange Commission could cause actual results to di er 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 O erpad and its management, are inherently uncertain. Nothing in this press release should be 4
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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. O erpad 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 OperationsThree Months EndedJune 30, (in thousands, except per share data) (Unaudited)2025 2024 Revenue $ 160,315$ 251,122Cost of revenue 146,126229,251 Gross pro t 14,189 21,871 Operating expenses:Sales, marketing and operating 13,188 20,230General and administrative 7,796 10,538Technology and development 986 964 Total operating expenses 21,970 31,732 Loss from operations (7,781) (9,861)Other income (expense):Change in fair value of warrant liabilities 329 (9)Interest expense (3,665) (4,581)Other income, net 244 615 Total other expense (3,092) (3,975) Loss before income taxes (10,873) (13,836)Income tax (expense) bene t (30) 54 Net loss $ (10,903) $ (13,782) Net loss per share, basic $ (0.39) $ (0.50) Net loss per share, diluted $ (0.39) $ (0.50) Weighted average common shares outstanding, basic27,770 27,385 Weighted average common shares outstanding, diluted27,770 27,385 OFFERPAD SOLUTIONS INC.Condensed Consolidated Balance SheetsJune 30,December 31, (in thousands, except par value per share) (Unaudited)2025 2024 ASSETS Current assets:Cash and cash equivalents $ 22,650$ 43,018Restricted cash 4,096 30,608Accounts receivable 7,543 3,848Real estate inventory 212,737214,174Prepaid expenses and other current assets 2,571 2,564 Total current assets 249,597294,212Property and equipment, net 9,672 9,127Other non-current assets 8,717 9,714 TOTAL ASSETS $ 267,986$ 313,053 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities:Accounts payable $ 1,297$ 1,922A d dh libilii 12422 11804 5
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Accrued and other current liabilities 12,422 11,804Secured credit facilities and other debt, net177,322195,378Secured credit facilities and other debt - related party38,577 41,861 Total current liabilities 229,618250,965Warrant liabilities 159 231Other long-term liabilities 13,674 14,204 Total liabilities 243,451265,400 Commitments and contingenciesStockholders’ equity:Class A common stock, $0.0001 par value; 2,000,000 shares authorized; 27,710 and 27,379 shares issuedand outstanding as of June 30, 2025 and December 31, 2024, respectively3 3Additional paid in capital 510,538507,696Accumulated de cit (486,006) (460,046) Total stockholders’ equity 24,535 47,653 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$ 267,986$ 313,053 OFFERPAD SOLUTIONS INC.Condensed Consolidated Statements of Cash FlowsSix Months EndedJune 30, ($ in thousands) (Unaudited) 2025 2024 Cash ows from operating activities: Net loss $ (25,960) $ (31,297)Adjustments to reconcile net loss to net cash (used in) provided by operating activities:Depreciation 459 314Amortization of debt nancing costs 618 1,153Real estate inventory valuation adjustment2,795 1,168Stock-based compensation 3,039 7,116Change in fair value of warrant liabilities (72) (335)Loss on disposal of property and equipment75 29Changes in operating assets and liabilities:Accounts receivable (3,695) 3,190Real estate inventory (1,358) (32,418)Prepaid expenses and other assets 990 2,091Accounts payable (625) (2,108)Accrued and other liabilities 88 (902) Net cash used in by operating activities(23,646) (51,999) Cash ows from investing activities: Purchases of property and equipment (1,079) (362)Proceeds from sale of property and equipment— 44 Net cash used in investing activities(1,079) (318) Cash ows from nancing activities: Borrowings from credit facilities and other debt310,946495,955Repayments of credit facilities and other debt(332,904) (450,546)Proceeds from exercise of stock options — 16Payments for taxes related to stock-based awards(197) (44) Net cash (used in) provided by nancing activities(22,155) 45,381 Net change in cash, cash equivalents and restricted cash(46,880) (6,936) Cash, cash equivalents and restricted cash, beginning of period73,626 79,934 Cash, cash equivalents and restricted cash, end of period$ 26,746$ 72,998 Reconciliation of cash, cash equivalents and restricted cash to the condensedconsolidated balance sheet: Cash and cash equivalents $ 22,650$ 55,906Restricted cash 4,096 16,092 Total cash, cash equivalents and restricted cash$ 26,746$ 72,998 Supplemental disclosure of cash ow information: Cash payments for interest $ 9,091$ 12,624 Non-GAAP Financial Measures In addition to O erpad’s results of operations above, O erpad reports certain nancial measures that are not required by, or presented in accordance with, U.S. generally accepted accounting principles (“GAAP”). These 6
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measures have limitations as analytical tools when assessing O erpad’s operating performance and should not be considered in isolation or as a substitute for GAAP measures, including gross pro t and net income. O erpad may calculate or present its non-GAAP nancial measures di erently than other companies who report measures with similar titles and, as a result, the non-GAAP nancial measures O erpad reports may not be comparable with those of companies in O erpad’s industry or in other industries. O erpad has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted net income (loss) within this press release because O erpad is unable to calculate certain reconciling items without making unreasonable e orts. These items, which include, but are not limited to, stock-based compensation with respect to future grants and forfeitures, could materially a ect the computation of forward-looking net income (loss), are inherently uncertain and depend on various factors, some of which are outside of O erpad’s control. Adjusted Gross Pro t, Contribution Pro t, and Contribution Pro t After Interest (and related margins) To provide investors with additional information regarding O erpad’s margins, O erpad has included Adjusted Gross Pro t, Contribution Pro t, and Contribution Pro t After Interest (and related margins), which are non-GAAP nancial measures. O erpad believes that Adjusted Gross Pro t, Contribution Pro t, and Contribution Pro t After Interest are useful nancial measures for investors as they are used by management in evaluating unit level economics and operating performance across O erpad’s markets. Each of these measures is intended to present the economics related to homes sold during a given period. O erpad 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 Pro t provides investors a measure to assess O erpad’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 Pro t After Interest further impacts gross pro t by including interest costs (including senior and mezzanine secured credit facilities) attributable to homes sold during a reporting period. O erpad believes these measures facilitate meaningful period over period comparisons and illustrate O erpad’s ability to generate returns on assets sold after considering the costs directly related to the assets sold in a presented period. Adjusted Gross Pro t, Contribution Pro t and Contribution Pro t After Interest (and related margins) are supplemental measures of O erpad’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 O erpad’s 7
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results as reported under GAAP. O erpad includes a reconciliation of these measures to the most directly comparable GAAP nancial measure, which is gross pro t. Adjusted Gross Pro t / Margin O erpad calculates Adjusted Gross Pro t as gross pro t 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. O erpad de nes Adjusted Gross Margin as Adjusted Gross Pro t as a percentage of revenue. O erpad 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 Pro t helps management assess performance across the key phases of processing a home (acquisitions, renovations, and resale) for a speci c resale cohort. Contribution Pro t / Margin O erpad calculates Contribution Pro t as Adjusted Gross Pro t, 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 nancial instruments. The composition of O erpad’s holding costs is described in the footnotes to the reconciliation table below. O erpad de nes Contribution Margin as Contribution Pro t as a percentage of revenue. O erpad 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 Pro t helps management assess in ows and out ow directly associated with a speci c resale cohort. Contribution Pro t / Margin After Interest O erpad de nes Contribution Pro t After Interest as Contribution Pro t, 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 8
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Pro t, and minus (3) interest expense under O erpad’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. O erpad’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. O erpad de nes Contribution Margin After Interest as Contribution Pro t After Interest as a percentage of revenue. O erpad views this metric as an important measure of business performance. Contribution Pro t After Interest helps management assess Contribution Margin performance, per above, when fully burdened with costs of nancing. The following table presents a reconciliation of O erpad’s Adjusted Gross (Loss) Pro t, Contribution (Loss) Pro t and Contribution (Loss) Pro t After Interest to O erpad’s Gross (Loss) Pro t, which is the most directly comparable GAAP measure, and Contribution (Loss) Pro t Per Home Sold and Contribution (Loss) Pro t After Interest Per Home Sold to O erpad’s Gross (Loss) Pro t 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, unaudited)June 30, 2025Mar 31, 2025June 30, 2024Gross pro t (GAAP) $14,189$10,507 21,871Gross margin 8.9% 6.5% 8.7%Homes sold 452 460 742 Gross pro t per home sold $31.4 $22.8 $29.5Adjustments:Real estate inventory valuation adjustment - current period(1) 1,052 1,743 544Real estate inventory valuation adjustment - prior period(2) (1,556) (2,211) (540) Interest expense capitalized(3) 1,240 1,422 1,420 Adjusted gross pro t $14,925$11,461$23,295Adjusted gross margin 9.3% 7.1% 9.3%Adjustments:Direct selling costs(4) (4,230) (4,388) (6,461)Holding costs on sales - current period (5)(6) (361) (535) (622)Holding costs on sales - prior period(5)(7) (507) (690) (443) Other income, net(8) 244 296 615 Contribution pro t $10,071 $6,144 $16,384Contribution margin 6.3% 3.8% 6.5%Homes sold 452 460 742 Contribution pro t per home sold$22.3 $13.4 $22.1Adjustments:Interest expense capitalized(3) (1,240) (1,422) (1,420)Interest expense on homes sold - current period(9) (1,342) (1,617) (2,103) Interest expense on homes sold - prior period(10) (1,866) (2,883) (2,133) Contribution pro t after interest$5,623 $222 $10,728Contribution margin after interest 3.5% 0.1% 4.3%Homes sold 452 460 742 Contribution pro t after interest per home sold$12.4 $0.5 $14.5 9
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(1)Real estate inventory valuation adjustment – current period is the real estate inventory valuation adjustments recorded during the periodpresented 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 associatedwith homes that sold in the period presented.(3)Interest expense capitalized represents all interest related costs, including senior and mezzanine secured credit facilities, incurred on homes soldin 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 commissionsand 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 CondensedConsolidated 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 onthe Condensed Consolidated Statements of Operations.(8)Other income, net principally represens interest income earned on our cash and cash equivalents and fair value adjustments of derivative nancial instruments.(9)Represents both senior and mezzanine interest expense incurred on homes sold in the period presented and expensed to interest expense onthe Condensed Consolidated Statements of Operations.(10)Represents both senior and mezzanine secured credit facilities interest expense incurred in prior periods on homes sold in the period presentedand expensed to interest expense on the Condensed Consolidated Statements of Operations. Adjusted Net Income (Loss) and Adjusted EBITDA O erpad also presents Adjusted Net Income (Loss) and Adjusted EBITDA, which are non-GAAP nancial measures, which the management team uses to assess O erpad’s underlying nancial performance. O erpad believes these measures provide insight into period over period performance, adjusted for non-recurring or non-cash items. O erpad calculates Adjusted Net Income (Loss) as GAAP Net Income (Loss) adjusted for the change in fair value of warrant liabilities. O erpad de nes Adjusted Net Income (Loss) Margin as Adjusted Net Income (Loss) as a percentage of revenue. O erpad 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. O erpad de nes Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of revenue. Adjusted Net Income (Loss) and Adjusted EBITDA are supplemental to O erpad’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 di er substantially from similarly titled measures presented by other companies in O erpad’s industry or companies in other industries. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of O erpad’s results as reported under GAAP. The following table presents a reconciliation of O erpad’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, unaudited)June 30, 2025March 31, 2025June 30, 2024Net loss (GAAP) $ (10,903)$ (15,057)$ (13,782)Nl i (68%) (94%) (55%) 10
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Net loss margin (6.8%) (9.4%) (5.5%)Change in fair value of warrant liabilities(329) 257 9 Adjusted net loss $ (11,232)$ (14,800)$ (13,773)Adjusted net loss margin (7.0%) (9.2%) (5.5%)Adjustments:Interest expense 3,665 3,522 4,581Amortization of capitalized interest (1) 1,240 1,422 1,420Income tax expense (bene t) 30 37 (54)Depreciation and amortization 253 206 148Amortization of stock-based compensation1,257 1,782 3,249 Adjusted EBITDA $ (4,787)$ (7,831)$ (4,429)Adjusted EBITDA margin (3.0%) (4.9%) (1.8%) (1)Amortization of capitalized interest represents all interest related costs, including senior and mezzanine secured interest related costs, incurred onhomes sold in the period presented that were capitalized and expensed in cost of sales at the time of sale. Investors: Investors@o erpad.com Media: Cortney Read Chief of Sta & VP, Operations Press@o erpad.com Source: O erpad 11