Slides
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1 INVESTOR PRESENTATION Q3 2025 UPDATE
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2 Disclaimer Forward-Looking Statements Certain statements in this presentation 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, rev enue 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 an d 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 Exchan ge (“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 presentation. 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 presentation shou ld 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. Financial Information; Non-GAAP Financial Measures This Presentation also includes certain financial measures not presented in accordance with generally accepted accounting pri nciples (“GAAP”) including, but not limited to, Contribution Margin, Adjusted EBITDA, Adjusted Net (Loss) Income, Adjusted Gross (Loss) Profit and certain ratios and other metrics derived therefrom. Contribution Margin means net sale proce eds less holding and selling costs, plus other services. Adjusted EBITDA includes adjustments for amortization of share based compensation and other non-cash expense. The Company calculates Adjusted Net Income (Loss) as GAAP Net Income (Loss) adjusted for the change in fair value of warrant liabilities. The Company calculates Adjusted Gross Profit as gross profit under GAAP adjusted for (1) net inventory valuation adjustment plus (2) interest expense associated with homes sold in the presented period and recorded in cost of revenue. Net inventory valuation adjustment is calculated by adding back the inventory valuation adjustment charges recorded during the period on homes that remain in inventory at period end and subtracting the inventory valuation adjustment charges recorded in prior periods on homes sold in the current period. These non-GAAP financial measures are not measures of financial performance in accordance with GAAP and may exclude items that a re significant in understanding and assessing the Company’s financial results. Therefore, these measures should not be considered in isolation or as an alternative to net income, cash flows from operations or other measures of profitabil ity, liquidity or performance under GAAP. You should be aware that the Company’s presentation of these measures may not be comparable to similarly-titled measures used by other companies. The Company believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company believes that the use of these non -GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends in and in comparing the Company’s financial measures with other similar companies, many of which present similar non -GAAP financial measures to investors. These non-GAAP financial measures are subject to inherent limitations as they reflect the exercise of judgments by management about which expense and income are excluded or included in determining these non-GAAP financial measures. This Presentation also includes certain projections of non-GAAP financial measures. The Company has not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted net income (loss) within this presentation because the Company 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 outs ide of the Company's control. Industry and Market Data In this Presentation, the Company relies on and refers to certain information and statistics obtained from third -party sources which the Company believes to be reliable. The Company has not independently verified the accuracy or completeness of any such third-party information.
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3 Provide your best way to buy and sell a home. Period. OUR MISSION
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4 SOFTWARE-ENABLED REAL ESTATE PLATFORM $12b+ Lifetime Revenue 85k+ Lifetime real estate transactions 39k+ Lifetime homes renovated & sold $680m+ Invested into property improvement renovations Cash Offer For those who want to sell on their own schedule — with added convenience, certainty, and control — and the in-person guidance of a local HomePro Competitive Offer Certainty & Control No Showings Flexible Closing Free Local Move 3-Day Extended Stay Traditional Listing Services For those who want to buy or list with expert guidance from a local HomePro Price Exploration Trusted Agent Guidance Market Exposure Institutional Buyer Services Offering sourcing services for institutional buyers Underwriting Lead Funnel Access Renovations Offering renovation services to partners looking for quality and speed Institutional Portfolio Remodels Rental Turns Efficient Execution
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5 $4 $72 $385 $1,247 $2,331 $3,399 $5,461 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $9,406 $12,053 YEARS OF PLATFORM INVESTMENT POSITIONS US FOR FUTURE GROWTH AS THE RESIDENTIAL MARKET REBOUNDS CUMULATIVE VALUE OF HOMES SOLD SINCE 2015 ($M) JAN 2016 Launched Offerpad Investor Direct NOV 2017 Announced partnership with Loan Depot to streamline real estate process for consumers and real estate professionals APR 2020 Launched Instant Access and Agent-on- Demand to better serve homeowners JUN 2020 Listing Services launched SEP 2021 Offerpad debuts on the NYSE (OPAD) Q1 2022 Launched home loan mobile app, Direct+ — Serving customers in 25 markets 2023 Asset Light grew to 43% of total transactions — Renovate launched – B2B renovation services JAN 2017 Secured $260M in equity and debt financing led by LL Funds Platform buildout & operational expertise Founded 2015 Launched first market in Phoenix OCT 2019 Launched Greenhouse, the research & development arm of Offerpad MAY 2019 Partnered with First American Title to deliver closing services MAR 2019 Raised $75M in Series C financing Market expansion Real Estate as a Service $10,708 2024 Agent Partnership Program grew to 27% of total requests — Introduced Citrus Value AVM — Launched new instant offer range delivery – enabling deeper customer engagement $11,616 (1) Represents Cumulative Value of homes sold through Q2’2025 2025 Launched HomePro program, helping expand solutions available to our customers — (1)
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61. 2024: US Census & National Association of Realtors; 2. Company Estimates; 3. 2024: Houses in the US in the price range of $0 - $750K; 4. 2024 Estimate from Joint Center of Housing Studies of Harvard University REAL ESTATE OPPORTUNITY TODAY $1.9t 99% non-digital / ~1% digital penetration 2 1 MARKET OPPORTUNITY $1.1t “Buy Box” today $450m 2024E renovation market 3 4 MASSIVE AND EVOLVING MARKET PRESENTS SUBSTANTIAL OPPORTUNITY
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7 4. Meet your HomePro You'll meet your Offerpad HomePro, who will guide you through all available solutions A SIMPLE SIX-STEP , TECH-ENABLED SOLUTION FOR OUR CUSTOMERS 1. Request a cash offer It takes just 3-minutes to fill out our request form 5. See all your selling solutions A few days after the inspection, your HomePro will present all selling solution - including cash offers and listing options 6. You’re sold! Sell your way through Offerpad — multiple options, expert support, and a process built around your needs 2. Get a preliminary offer in minutes We'll give you an instant estimated offer range within minutes of your request 3. Self-schedule your home inspection You choose the best day and time, right from the preliminary offer page
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8 Offer request Data collection Automated verification, valuation & renovation modeling Real estate expert review & communications CRM Solutions presented (Cash Offers and Listing Options) 500+ data points per home 10 years of proprietary data insights and machine learning 100k+ offers sent per year 1 1. Approximate annual average 2019-2024 Robust data sources Public recordPrivate Proprietary Advantaged combination of machine evaluation & human review LOCAL REAL ESTATE EXPERTISE SUPERCHARGES OUR PROPRIETARY TECHNOLOGY , DRIVING ENHANCED UNIT ECONOMICS
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9 OUR PRODUCT ECOSYSTEM PROVIDES INTEGRATED OPPORTUNITIES ACROSS MULTIPLE SOLUTIONS → Driving Volume & Opportunity • Consumer brand awareness • Solution for Partner+ engagement • Creates Direct+ opportunity • Enterprise partnerships → Diversifies Revenue • Utilizes foundational resources (boots on the ground) • Builds partner pipeline for Direct+ • Optimizes operation leverage → High Margin Service Fee Business • Optimize conversion—allows for potential of higher offers and expanded buy-box • Additional buying solution supporting Cash Offer • Builds partner pipeline for Renovate → Lead Opportunities & Monetization • Conversion in Living Room, with multiple solutions • Solution for Direct+
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10 LEVERAGING RENOVATION EXCELLENCE CORE BUSINESS MODEL SINCE 2015 • Buy, renovate, and sell homes • Deliver efficient, high-quality renovations that contribute significantly to the performance of our portfolio • Use in-house talent & vetted external specialists to increase quality and control ~40k Renovations completed +$680m Invested into improving properties RENOVATION IMPACT SINCE INCEPTION Q3 2025 - OFFERPAD-OWNED PORTFOLIO $33k Avg. cost of renovations completed 40 days Avg. time for renovation completion STAND-ALONE RENOVATION SERVICES SINCE 2023 • Built a sophisticated renovation operation in response to client demand that leverages existing teams and technology to provide renovations at scale • Expanding marketing opportunities • Building on the momentum established in our flagship year 525 Total projects completed $8.5m Total revenue $16.2k Avg. revenue per project 21 Markets with projects completed 1.8 Avg. days in renovation per $1k spent OFFERPAD RENOVATE —THIRD PARTY RENOVATION SERVICES Q3 2025 HIGHLIGHTS
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11 GROWTH PLAN INCLUDES MULTIPLE PROFIT EXPANSION TOUCH POINTS Market penetration in existing markets • Long-term goal to drive total market share to 3-4%, from current less than 1% Expanding Solutions available to sellers • Partnering with local brokerages to guide sellers to find the best solution for their situation, through our HomePro program Growing B2B services • Direct+ → Connecting institutional buyers with sellers • Renovate → Renovation as a service for institutional clients Grow partner ecosystem • HomePro Partner Brokerages • Agent Partnership Program • Homebuilder Services • Agent Referral Network 27 markets 1,900+ cities & towns nationwide * Offerpad Renovate only in Minneapolis, Jackson, and Oklahoma City MINNEAPOLIS FT. WAYNE INDIANAPOLIS ST. LOUIS COLUMBUS KANSAS CITY NASHVILLE BIRMINGHAM OKLAHOMA CITY FT. COLLINS DENVER COLORADO SPRINGS LAS VEGAS PHOENIX DALLAS- FORT WORTH AUSTIN HOUSTON SAN ANTONIO ATLANTA RALEIGH CHARLOTTE COLUMBIA JACKSONVILLE ORLANDOTAMPA FT. MYERS JACKSON
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12 ($13.5) ($17.3) ($15.1) ($10.9) ($11.6) ($6.2) ($11.5) ($7.8) ($4.8) ($4.6) Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 $17 $11 $11 $14 $9 8.2% 6.1% 6.5% 8.9% 7.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 $208 $174 $161 $160 $133 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 IMPROVING PROFITABILITY AFTER ABRUPT MARKET SHIFT IN 2022 REVENUE ($M) See Appendix for a reconciliation to the most directly comparable GAAP measure and additional information. GROSS PROFIT ($M) & MARGIN % HOMES ACQUIRED & HOMES SOLD NET INCOME (LOSS) & ADJ. EBITDA ($M) Net Income (Loss) Adj. EBITDA Acquired Sold 422 384 454 443 203 615 503 460 452 367 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25
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13 Q3 2025 RESULTS REVENUE $132.7m (17%) QoQ HOMES ACQUIRED 203 (54%) QoQ HOMES SOLD 367 (19%) QoQ NET INCOME (LOSS) ($11.6m) (6%) QoQ ADJ. EBITDA ($4.6m) 4% QoQ GROSS PROFIT PER HOME SOLD $25.4k (19%) QoQ CONTRIBUTION PROFIT (LOSS) AFTER INTEREST PER HOME SOLD $8.2k (34%) QoQ Q3 2025 HIGHLIGHTS • Renovate delivers record $8.5 million in revenue; third consecutive record • Raised Capital bringing Offerpad total liquidity above $75M Note: QoQ represents a comparison against the comparable period in the prior quarter (3Q 25 vs. 2Q 25).
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14 Q4 2025 GUIDANCE 1. See Non-GAAP financial measures on slide 2 for an explanation of why a reconciliation of this guidance cannot be provided. HOMES SOLD 300 to 350 REVENUE $100m to $125m ADJ. EBITDA1 Similar to Q3 2025 14
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15 15 APPENDIX
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16 CONDENSED CONSOLIDATED STATEMENT 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
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17 CONDENSED CONSOLIDATED BALANCE SHEETS As of (in thousands, except par value per share) (Unaudited) September 30, 2025 December 31, 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 Commitments and contingencies 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
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18 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 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 (gain) 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 (used in) provided by 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 credit facilities and other debt 360,641 628,105 Repayments of 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 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 9,992 Total cash, cash equivalents and restricted cash $ 33,644 58,426 Supplemental disclosure of cash flow information: Cash payments for interest $ 12,928 19,204 Cash payments for taxes, net of refunds received $ 392 262 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
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19 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 inv estors 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 per iod. 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 rea l 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.
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20 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 inve ntory 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 perio ds 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 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. 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.
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21 NON-GAAP RECONCILIATIONS Note: Current period represents adjustments for costs incurred on homes sold in the period presented and prior periods represents adjustments for costs incurred in prior periods on homes sold in the period presented. Numbers may not total due to rounding. Three Months Ended (in thousands, except percentages and homes sold, unaudited) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Gross profit $9,336 $14,189 $10,507 $10,589 $17,140 Gross margin 7.0% 8.9% 6.5% 6.1% 8.2% Homes sold 367 452 460 503 615 Gross profit per home sold 25.4 31.4 22.8 21.1 27.9 Adjustments: Inventory valuation adjustment - current period 2,005 1,052 1,743 2,457 848 Inventory valuation adjustment - prior period (1,056) (1,556) (2,211) (592) (535) Interest expense capitalized 951 1,240 1,422 1,315 1,367 Adjusted gross profit 11,236 14,925 11,461 13,769 18,820 Adjusted gross margin 8.5% 9.3% 7.1% 7.9% 9.0% Adjustments: Direct selling costs (3,471) (4,230) (4,388) (5,011) (5,767) Holding costs on sales - current period (436) (361) (535) (511) (693) Holding costs on sales - prior period (435) (507) (690) (556) (341) Other income, net 151 244 296 476 512 Contribution profit 7,045 10,071 6,144 8,167 12,531 Contribution margin 5.3% 6.3% 3.8% 4.7% 6.0% Homes sold 367 452 460 503 615 Contribution profit per home sold 19.2 22.3 13.4 16.2 20.4 Adjustments: Interest expense capitalized (951) (1,240) (1,422) (1,315) (1,367) Interest expense on homes sold - current period (1,252) (1,342) (1,617) (1,481) (1,865) Interest expense on homes sold - prior period (1,823) (1,866) (2,883) (2,629) (1,687) Contribution profit after interest 3,019 5,623 222 2,742 7,612 Contribution margin after interest 2.3% 3.5% 0.1% 1.6% 3.7% Homes sold 367 452 460 503 615 Contribution profit after interest per home sold 8.2 12.4 0.5 5.5 12.4
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22 Adjusted Net (Loss) Income 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 I ncome (Loss) and Adjusted EBITDA exclude the impact of certain costs required to be recorded under GAAP and could differ substantia lly 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:
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23 NON-GAAP RECONCILIATIONS (CONT.) 1. 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. Note: Numbers may not total due to rounding. Three Months Ended (in thousands, except percentages, unaudited) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 Net loss (GAAP) $(11,604) $(10,903) $(15,057) $(17,325) $(13,537) Change in fair value of warrant liabilities 987 (329) 257 109 (14) Adjusted net loss $(10,617) $(11,232) $(14,800) $(17,216) $(13,551) Adjusted net loss margin (8.0%) (7.0%) (9.2%) (9.9%) (6.5%) Adjustments: Interest expense 3,646 3,665 3,522 4,084 5,114 Amortization of capitalized interest (1) 951 1,240 1,422 1,315 1,367 Income tax (benefit) expense 380 30 37 (62) 24 Depreciation and amortization 253 253 206 147 150 Amortization of stock-based compensation 815 1,257 1,782 249 715 Adjusted EBITDA (4,572) (4,787) (7,831) (11,483) (6,181) Adjusted EBITDA margin (3.4%) (3.0%) (4.9%) (6.6%) (3.0%)
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24 investor.offerpad.com