8-K
Offerpad Solutions Inc. (OPAD)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 03, 2025
Offerpad Solutions Inc.
(Exact name of Registrant as Specified in Its Charter)
| Delaware | 001-39641 | 85-2800538 |
|---|---|---|
| (State or Other Jurisdiction<br>of Incorporation) | (Commission<br>File Number) | (IRS Employer<br>Identification No.) |
| 433 S. Farmer Avenue<br> <br>Suite 500 | ||
| Tempe, Arizona | 85281 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (844) 388-4539
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbol(s) | Name of each exchange<br>on which registered |
|---|---|---|
| Class A common stock, $0.0001 par value per share | OPAD | The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 | Results of Operations and Financial Condition. |
|---|
On November 3, 2025, Offerpad Solutions Inc. issued a press release announcing its financial results for the three and nine months ended September 30, 2025. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02, including the information contained in Exhibit 99.1 of this Current Report on Form 8-K, is furnished herewith and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
|---|
(d) Exhibits
| Exhibit<br>Number | Exhibit Description |
|---|---|
| 99.1 | Press Release of Offerpad Solutions Inc. dated November 3, 2025 |
| 104 | Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Offerpad Solutions Inc. | ||
|---|---|---|
| Date: November 3, 2025 | By: | /s/ Peter Knag |
| Peter Knag<br> <br>Chief Financial Officer |
EX-99.1
Exhibit 99.1
Offerpad Strengthens Liquidity and Drives Margin Improvement in Third Quarter 2025
TEMPE, Ariz. – November 3, 2025 – Offerpad (NYSE: 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<br> |
|---|---|
| • | Operating expenses improved by 38% year over year, reflecting ongoing cost efficiencies and streamlined<br>operations |
| --- | --- |
| • | Continued expansion of asset-light services, including HomePro, Renovate, and Direct+, which we believe<br>positions Offerpad for scalable, higher-margin growth as market conditions stabilize |
| --- | --- |
| • | Offerpad Renovate delivered $8.5 million in revenue, the highest quarterly revenue<br>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)
| Q3 2025 | Q2 2025 | PercentageChange | |
|---|---|---|---|
| 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)
| Q3 2025 | Q3 2024 | PercentageChange | |
|---|---|---|---|
| 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 2025Outlook
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 removes the friction from real estate. Our advanced real estate platform offers a range of services, from consumer cash offers to B2B renovation solutions and industry partnership programs, all tailored to meet the unique needs of our clients. Since 2015, we 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
Contacts
Investors:
Investors@offerpad.com
Media:
Cortney Read
Chief of Staff & VP, Communications
Press@offerpad.com
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
| December 31, | |||||
|---|---|---|---|---|---|
| (in thousands, except par value per share) (Unaudited) | 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<br>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 |
All values are in US Dollars.
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 consolidatedbalance 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, unaudited) | September 30, 2025 | June 30, 2025 | September 30, 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<br>^(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<br>^(9)^ | (1,252 | ) | (1,342 | ) | (1,865 | ) | |||
| Interest expense on homes sold - prior period<br>^(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<br>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<br>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<br>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<br>primarily includes broker commissions and title and escrow closing fees. | ||||||||
| --- | --- | ||||||||
| (5) | Holding costs primarily include insurance, utilities, homeowners association dues, property taxes, cleaning,<br>and maintenance costs. | ||||||||
| --- | --- | ||||||||
| (6) | Represents holding costs incurred on homes sold in the period presented and expensed to Sales, marketing, and<br>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,<br>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.<br> | ||||||||
| --- | --- | ||||||||
| (9) | Represents interest expense under our senior and mezzanine secured credit facilities and other senior secured<br>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<br>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, unaudited) | September 30, 2025 | June 30, 2025 | September 30, 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<br>^(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) | Amortization of capitalized interest represents all interest related costs under our senior and mezzanine<br>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. | ||||||||
| --- | --- |