OPAD

Offerpad’s second quarter saw mixed results, with revenue and adjusted EPS both coming in below Wall Street expectations. Despite these misses, the market responded positively, reflecting management’s emphasis on improved operating efficiency and a cleaner inventory profile. CEO Brian Bair noted that recent operational changes, including selling through aged inventory and streamlining cost structures, were aimed at establishing a more resilient business foundation. Management highlighted notable progress in unit economics, with contribution profit per transaction reaching multi-year highs, largely driven by faster sales cycles and a more disciplined approach to market selection. Is now the time to buy OPAD? Find out in our full research report (it’s free). Revenue: $77.65 million vs analyst estimates of $85.2 million (51.6% year-on-year decline, 8.9% miss) Adjusted EPS: -$1.96 vs analyst expectations of -$1.76 (11.4% miss) Adjusted EBITDA: -$6.2 million (-8% margin, 29.2% year-on-year decline) Revenue Guidance for Q3 CY2026 is $95 million at the midpoint, below analyst estimates of $120.3 million Operating Margin: -10.6%, down from -4.9% in the same quarter last year Homes Sold: down 246 year on year Market Capitalization: $23.15 million While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan Tomasello (KBW) asked how Offerpad expects to move from 300 to 1,000 quarterly transactions and if the target depends on institutional partners. CFO Peter Knag clarified the growth is driven by Cash Offer and Brokerage Services, not reliant on large institutional buyers. Dae Lee (JPMorgan) questioned the drivers behind the strong increase in June contract signings. CEO Brian Bair attributed this to targeted marketing, analytics-driven home selection, and clearing aged inventory, which improved sales velocity. Dae Lee (JPMorgan) also asked about trends in contribution profit per transaction. Knag explained that healthier inventory and a greater share of fee-based revenue are expected to keep margins rising through the year’s second half. Ryan Tomasello (KBW) sought clarification on future transaction mix and conversion improvements. Bair and Knag said the mix will gradually favor fee-based services, and conversion is improving due to operational changes and enhanced customer engagement. Gaurav Mehta (Alliance Global Partners) inquired about Renovate’s performance and operating leverage. Knag described Renovate as a profitable, growing segment, and both executives stressed that most operating expenses are fixed, supporting future volume growth without major cost increases. The StockStory team will be monitoring (1) the pace at which signed contracts convert into closed transactions, as this will signal whether Offerpad can achieve its targeted transaction volumes; (2) sustained improvement in contribution profit margins as the product mix evolves; and (3) continued expansion of fee-based services and the Renovate business. Execution on cost control and adoption of AI-driven operational tools will also be critical signposts. Offerpad currently trades at $4.80, up from $3.65 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management declares the rebuilding phase largely complete, shifting focus from capital protection and aged inventory clearance to scaling the buying engine. Performance attribution for the quarter centers on improved unit economics and mix rather than volume, with gross margin reaching its best level since Q3 2023. Strategic positioning has evolved from a single-product company to a multi-solution platform, utilizing Cash Offer, Marketplace, and Brokerage Services to serve more sellers with less capital risk. Operational momentum is driven by converting existing demand more efficiently through better home selection and precise pricing rather than increased marketing spend. The company successfully cleared its aged inventory book, reducing it from over 100 homes in 2025 to under 10 currently, which significantly improved overall portfolio health. Velocity has become a key driver of margin expansion, with non-aged homes selling in approximately 82 days, well ahead of the 100 to 120-day target. Management maintains its target to exit 2026 at a run rate of approximately 1,000 transactions per quarter and reach positive adjusted EBITDA before year-end. The Q3 guidance of 350 to 400 transactions is supported by a significant acceleration in contract signings during June and July that are currently moving through the pipeline. The operating framework assumes significant leverage as volume scales, as the current cost structure is built to support break-even at the 1,000-transaction level without adding meaningful overhead. Future growth is expected to lean more heavily on fee-based, capital-light services, with management anticipating these products will eventually represent 50% or more of the transaction mix. Guidance for the second half of 2026 assumes continued high demand and improved conversion as today's signings become tomorrow's acquisitions and subsequent home sales. The company has removed more than $140 million of annualized operating expense through structural changes, creating a leaner fixed-cost base. Liquidity remains stable at over $55 million, with management stating the 2026 plan does not require incremental capital unless Cash Offer demand significantly exceeds expectations. The Renovate business has been successfully transitioned from a cost center to a profit center, generating $4.8 million in third-party revenue this quarter at 20% to 25% margins. Management noted that Cash Offer Marketplace has moved more slowly than other segments due to some institutional buyers pulling back from the market. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth is driven by internal execution in Cash Offer and Brokerage Services rather than a dependency on institutional partners. Management highlighted that June signings were nearly double April levels, and July signs were even higher than June, creating a predictable pipeline for Q4 closings. Conversion is improving due to hyper-focus on 'velocity areas' and better marketing attribution rather than paying more for homes. The company is utilizing a 'Power Squad' customer communication team to provide 7-day-a-week support, which has enhanced the customer journey and conversion of existing demand. Approximately 90% to 95% of operating expenses are fixed, meaning nearly every transaction beyond the break-even point flows directly to earnings. Management believes the current team can handle significantly more volume by leveraging AI and centralized logistics without needing to increase the headcount to previous peak levels.

This article first appeared on GuruFocus. Release Date: August 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Offerpad Solutions Inc (NYSE:OPAD) delivered another quarter of improved adjusted EBITDA, with the Q2 loss narrowing to $6.2 million from $6.7 million in Q1, continuing its sequential progress toward profitability. Contribution profit after interest reached $13,500 per real estate transaction in Q2, up 36% year-over-year and 145% quarter-over-quarter, marking the strongest quarter since 2023. The company's portfolio is much healthier, with aged inventory reduced from over 100 homes in 2025 to under 10 today, and non-aged homes selling in approximately 82 days, well ahead of the 100-120 day target. Contract signings accelerated significantly through Q2, growing from 129 in April to 256 in June, with July signings even higher, providing strong visibility into Q3 acquisitions and Q4 closings. The company has diversified its revenue base with fee-based offerings (brokerage services, cash offer marketplace, and Renovate) that generate higher margins without adding balance sheet risk, with Renovate contributing $4.8 million in revenue during the quarter. Offerpad Solutions Inc (NYSE:OPAD) missed its own guidance for Q2, coming in at 295 transactions and approximately $78 million in revenue versus the guided 300-350 transactions and $80-$90 million. The company remains unprofitable, posting an adjusted EBITDA loss of $6.2 million in Q2, and the path to positive adjusted EBITDA is only expected on a run-rate basis by year-end, not necessarily in Q4 itself. Cash offer marketplace growth has been slower than expected as some institutional buyers have pulled back from the market, limiting the acceleration of this fee-based segment. The company's cost structure is still not fully absorbing fixed costs at current volumes, with the breakeven target requiring a significant step up to approximately 1,000 transactions per quarter from the current 295. The company's revenue base is still heavily reliant on the capital-intensive cash offer product, which carries balance sheet risk, and the shift to a majority fee-based mix is only an illustrative long-term goal without a defined timeline. Warning! GuruFocus has detected 4 Warning Signs with OPAD. Is OPAD fairly valued? Test your thesis with our free DCF calculator. Q: Can you help us understand the main drivers of the meaningful step up in transactions from 3Q to 4Q, and is the 1,000-transaction target dependent on any concentrated volume from specific institutional partners?A: Peter (CFO) clarified that the growth is not driven by institutional partners. The two fastest-growing products are cash offer and brokerage services. The company signed approximately 550 contracts in Q2 for the cash offer product alone, which convert into dispositions roughly 100-110 days later. Combined with rapidly growing brokerage services, these will get the company to the 1,000-transaction exit rate without any partner dependency. Brian (CEO) added that demand remains strong with thousands of engaged sellers monthly, and the company is getting smarter with marketing spend to target high-velocity areas. Q: What drove the strong inflection in June contract signings relative to prior months, and how is July trending?A: Brian (CEO) explained that the company has been hyper-focused on active inventory in high-velocity areas with strong school scores, using AI tools like Scout and Henry to get smarter about where and how they buy homes. They are doing less renovation in some high-velocity areas to get homes to market quicker. Peter (CFO) added that July signings were higher than June, and the trend is expected to continue into August and September. Q: How does the contribution profit after interest per transaction performance compare to expectations, and where do you expect it to trend in the back half?A: Peter (CFO) stated that contribution margin will continue to rise based on two drivers: a very new and healthy inventory portfolio with high expected ROIs (as the aged inventory that temporarily depressed margins has been cleared), and an improving mix shift toward fee-based services (brokerage and marketplace), which carry significantly higher margins. The company is currently at about one-third fee-based services and two-thirds cash offer. Q: Is the illustrative transaction mix moving towards two-thirds capital-light transactions the way you're thinking about the evolution, and what has been the primary driver of conversion improvement?A: Peter (CFO) confirmed the mix shift is the right way to think about it, expecting fee-based services to move from one-third to around 50%, and ultimately flip to be higher than cash offer long-term. Brian (CEO) attributed conversion improvement to disciplined margins, better home selection in high-confidence areas, process changes, and investments in the "Power Squad" customer communication team. The single biggest lever is marketing spend and where it's directed, combined with operational improvements. Q: What's embedded in the 2026 guidance for renovation revenues?A: Peter (CFO) noted the company doesn't guide separately for Renovate, but highlighted that it has been converted from a cost center to a profit center over the past two years, with third-party business generating approximately 20-25% margins. Brian (CEO) added that while some large institutional renovation clients have slowed due to regulatory changes, the company has successfully pivoted to small and mid-size renovation players, from individual flippers to family offices, and continues to see growth opportunities. Q: With the current platform and cost structure, how much can you grow volumes before needing to increase costs?A: Brian (CEO) stated that the company can put significantly more volume on the current team by leveraging technology and AI, having centralized operations. Peter (CFO) confirmed that 90-95% of operating expenses are truly fixed costs, so the company expects substantial operating leverage as it scales from current levels toward 1,000 transactions and beyond. Q: Is the positive adjusted EBITDA expectation for 4Q a quarterly number or a run-rate basis?A: Peter (CFO) clarified that both the 1,000-transaction target and positive adjusted EBITDA are run-rate objectives on exiting the year, not necessarily a positive quarterly number in Q4 itself. Q: What were the key financial results for Q2 2026, and what is the Q3 guidance?A: Peter (CFO) reported revenue of approximately $78 million on 295 real estate transactions, with gross profit of $7.1 million (9.2% gross margin, the best since Q3 2023). Contribution profit after interest reached $13,500 per transaction, up 36% year-over-year and 145% quarter-over-quarter. Adjusted EBITDA loss improved to $6.2 million from $6.7 million in Q1. The company ended with $33.1 million in unrestricted cash and over $55 million in total liquidity. For Q3, the company expects 350-400 transactions, $90-100 million in revenue, and a narrower adjusted EBITDA loss. Q: How is the company's inventory aging and velocity performing?A: Brian (CEO) highlighted that aged inventory peaked at over 100 homes in 2025, was reduced to under 30 by Q1, and is now under 10. Aged homes took around 339 days to sell, while Q2 non-aged homes sold in approximately 82 days, well ahead of the 100-120 day target. This improved velocity is driving stronger margins and positioning the company toward adjusted EBITDA profitability. Q: How has the company's cost structure changed, and what does that mean for operating leverage?A: Peter (CFO) noted that quarterly operating expenses (excluding property costs) were $13.3 million, down from $17 million a year ago and from a peak of over $50 million per quarter in 2022. The company has removed more than $140 million in annualized operating expenses through structural changes. At the current volume of ~295 transactions per quarter, fixed costs aren't fully absorbed, but at 1,000 transactions, cost per transaction drops sharply, allowing incremental volume to flow directly to earnings. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

TEMPE, Ariz., August 03, 2026--(BUSINESS WIRE)--Offerpad Solutions Inc. (NYSE: OPAD), a leading tech-enabled real estate solutions company, today reported financial results for the second quarter ended June 30, 2026. During the quarter, Offerpad generated $78 million in revenue on 295 closed real estate transactions. Net loss was $9.3 million, and Adjusted EBITDA was a loss of $6.2 million, a sequential improvement, and the Company’s second consecutive quarter of progress toward positive Adjusted EBITDA. Gross margin improved to 9.2% from 6.9% in the first quarter, its highest level since the third quarter of 2023, driven by improved Cash Offer margins and continued growth in higher-margin services, which reached 30% of real estate transactions, up from 20% in the first quarter. Volume built steadily through the second quarter, with contract signings growing from 129 in April, to 163 in May, and 256 in June — nearly double where signings started. In June, roughly one in three post-inspection final offers converted to a signed contract; and based on recent cohorts, approximately 90% of signed contracts convert to an acquisition. This growing pipeline is expected to drive higher transaction volume in the second half of fiscal 2026, as homes typically sell within 120 to 150 days after signing. "For the past year, we’ve been executing against one clear operating framework, built around three objectives: disciplined transaction growth, expanding contribution margin, and operating leverage. That work is showing up now — the buying engine is back on, and every home we acquire reflects the discipline we built this business on," said Brian Bair, Chairman and Chief Executive Officer of Offerpad. "The progress is reflected in our second quarter results, with contract signings nearly doubling within the quarter, while demand remained consistent. We expect that momentum to move through the transaction cycle and into future closings, and believe the operating leverage built into the business becomes increasingly evident." Offerpad’s Operating Plan is anchored by three objectives that guide how the Company sets priorities, deploys capital and evaluates performance. Each has been reflected in how the Company has operated and reported over the past year: Scale transactions through disciplined growth. Restore volume through improved home selection, sharper pricing in faster-selling segments and higher funnel conversion, with a target of approximately 1,000 transactions per quarter, the level at which the Company believes its current cost structure can support Adjusted EBITDA breakeven. Expand contribution margin across homes and services. Improve pricing precision, reduce holding periods and grow higher-margin, fee-based revenue. In the second quarter, contribution profit after interest per real estate transaction improved to $13,500, up from $5,500 in the first quarter and its highest level since the third quarter of 2023. Drive operating leverage as volume scales. Maintain a structurally lower cost base, with over $140 million in annualized expenses removed since 2022, while scaling expected transaction volume with the goal of creating greater operating leverage and improving the path to profitability. "Second quarter results demonstrate continued improvement in the underlying economics of the business. Contribution profit after interest reached $13,500 per real estate transaction, our highest level in nearly three years, while Adjusted EBITDA improved sequentially for the second consecutive quarter. We’re also seeing real improvement in the metrics that drive future performance — average time to cash improved to 119 days in June, within our target range," said Peter Knag, Chief Financial Officer of Offerpad. Looking Ahead Offerpad’s objective is unchanged: to exit 2026 at a run-rate of approximately 1,000 home transactions per quarter across Cash Offer, Cash Offer Marketplace, and Brokerage Services, excluding Renovate, and at a run-rate of positive Adjusted EBITDA. For the third quarter of 2026, Offerpad expects revenue in the range of $90 million to $100 million, with 350-400 real estate transactions (19-36% sequential increase), and anticipates Adjusted EBITDA to improve sequentially. The Company also published an Operating Plan, offering investors a closer look at how Offerpad thinks about the business — the priorities guiding its decisions and the way it measures progress over time. The plan is available at investor.offerpad.com. For additional information, please refer to Offerpad’s full financial results available at investor.offerpad.com. Q2 2026 Financial Results (year over year) Additional information regarding Offerpad’s second quarter of 2026 financial results and management commentary can be found by accessing the Company’s Quarterly Shareholder presentation on the Offerpad investor relations website. Third Quarter 2026 Outlook Offerpad is providing its third quarter outlook for 2026 as follows: Conference Call and Webcast Details Brian Bair, Chairman and CEO, and Peter Knag, CFO, will host a conference call and accompanying webcast on August 3, 2026, 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 Solutions Inc. (NYSE: OPAD) is a real estate solutions company focused on giving homeowners more control, flexibility, and choice when buying and selling a home. Offerpad provides Cash Offers, Agent listing services, access to additional cash buyers through marketplace-enabled capabilities, and renovation services that support both internal transactions and third-party partners. Founded in 2015, the Company combines proprietary technology with local real estate expertise to simplify the home sale process and reduce friction across the transaction lifecycle, helping customers move forward with speed, transparency, and confidence. Learn more at www.offerpad.com. #OPAD_IR Forward-Looking Statements Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or Offerpad’s future financial or operating performance. For example, statements regarding Offerpad’s financial outlook, including transactions across Cash Offer, Cash Offer Marketplace and Brokerage Services, revenue, and Adjusted EBITDA, and expectations regarding cost structure, run-rate, profitability, operating leverage, transaction demand and volume, signed contracts, closing periods, conversion, growth and AI capabilities 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; real estate inventory; Offerpad’s ability to successfully launch, market to customers, manage or expand its products and services; 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 achieve and maintain profitability in the future; Offerpad’s underwriting process, 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 manage, develop and refine its technology platform; the success of strategic relationships with third parties; Offerpad’s ability to regain compliance with New York Stock Exchange ("NYSE") Rule 802.01B, sufficiently execute its business plan, or failure to comply with other NYSE continued listing rules; macroeconomic trends, including due to conflict in the Middle East; and Offerpad’s ability to use net operating loss carryforwards and other tax attributes due to ownership changes. 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, 2025 filed with the Securities and Exchange Commission on February 24, 2026, 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. 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 the number of homes sold or other real estate transactions during a given period. Offerpad does so by including revenue generated from its Cash Offer, Cash Offer Marketplace, and Brokerage Services solutions in the period and only the expenses that are directly attributable to these transactions, 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 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 and other senior secured debt) 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 its homes sold and other real estate transactions after considering the costs directly related to such transactions 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 real estate transactions 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 real estate transactions 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 its 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 Profit, Contribution Profit and Contribution Profit After Interest to Offerpad’s Gross Profit, which is the most directly comparable GAAP measure, for the periods indicated: 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 its GAAP Net Income (Loss), which is the most directly comparable GAAP measure, for the periods indicated: View source version on businesswire.com: https://www.businesswire.com/news/home/20260803887138/en/ Contacts Investors & MediaCortney Read VP, Investor Relations & [email protected]

Technology real estate company Offerpad (NYSE:OPAD) will be reporting earnings this Monday after market close. Here’s what you need to know. Offerpad missed analysts’ revenue expectations last quarter, reporting revenues of $80.08 million, down 50.2% year on year. It was a softer quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ EBITDA estimates. It reported 211 homes sold, down 54.1% year on year. Is Offerpad a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Offerpad’s revenue to decline 46.9% year on year, a further deceleration from the 36.2% decrease it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Offerpad has missed Wall Street’s revenue estimates multiple times over the last two years. Looking at Offerpad’s peers in the consumer discretionary - real estate services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. JLL delivered year-on-year revenue growth of 10.8%, beating analysts’ expectations by 1.5%, and CBRE reported revenues up 15.2%, in line with consensus estimates. JLL traded up 4.4% following the results while CBRE was also up 1.6%. Read our full analysis of JLL’s results here and CBRE’s results here. Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the consumer discretionary - real estate services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.4% on average over the last month. Offerpad is down 32.5% during the same time and is heading into earnings with an average analyst price target of $12.75 (compared to the current share price of $3.83). ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention. AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.

Shareholders of Offerpad would probably like to forget the past six months even happened. The stock has dropped 97.3% and now trades at a new 52-week low of $0.55. This was partly due to its softer quarterly results and might have investors contemplating their next move. Is there a buying opportunity in Offerpad, or does it present a risk to your portfolio? Dive into our full research report to see our analyst team’s opinion, it’s free. Even with the cheaper entry price, we’re swiping left on Offerpad for now. Here are three reasons why there are better opportunities than OPAD, plus one stock we’d rather own. Revenue growth can be broken down into changes in price and volume (for companies like Offerpad, our preferred volume metric is homes sold). While both are important, the latter is the most critical to analyze because prices have a ceiling. Offerpad’s homes sold came in at 211 in the latest quarter, and over the last two years, averaged 37% year-on-year declines. This performance was underwhelming and implies there may be increasing competition or market saturation. It also suggests Offerpad might have to lower prices or invest in product improvements to grow, factors that can hinder near-term profitability. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. Offerpad has shown poor cash profitability relative to peers over the last two years, giving the company fewer opportunities to return capital to shareholders. Its free cash flow margin averaged 6.9%, below what we’d expect for a consumer discretionary business. As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. Offerpad posted negative $22.99 million of EBITDA over the last 12 months, and its $81.57 million of debt exceeds the $41.63 million of cash on its balance sheet. This is a deal breaker for us because indebted loss-making companies spell trouble. We implore our readers to tread carefully because credit agencies could downgrade Offerpad if its unprofitable ways continue, making incremental borrowing more expensive and restricting growth prospects. The company could also be backed into a corner if the market turns unexpectedly. We hope Offerpad can improve its profitability and remain cautious until then. Offerpad falls short of our quality standards. Following the recent decline, the stock trades at $0.55 per share (or a forward price-to-sales ratio of 0×). The market typically values companies like Offerpad based on their anticipated profits for the next 12 months, but it expects the business to lose money. We also think the upside isn’t great compared to the potential downside here - there are more exciting stocks to buy. We’d recommend looking at the Amazon and PayPal of Latin America. WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer discretionary - real estate services industry, including Offerpad (NYSE:OPAD) and its peers. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Real estate services companies provide brokerage, property management, appraisal, and advisory services, earning transaction-based commissions and recurring management fees. Tailwinds include long-term housing demand driven by demographic growth, technology platforms that expand market access, and commercial real estate complexity that sustains advisory needs. Headwinds are pronounced: rising interest rates directly suppress transaction volumes by reducing housing affordability and commercial deal activity. Commission-rate compression, driven by discount brokerages and regulatory changes, erodes per-transaction revenue. The industry is highly cyclical, with revenue swings amplified by leverage. PropTech (property technology) disruptors threaten traditional intermediary models. The 14 consumer discretionary - real estate services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 2.7% above. While some consumer discretionary - real estate services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.4% since the latest earnings results. Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions. Offerpad reported revenues of $80.08 million, down 50.2% year on year. This print fell short of analysts’ expectations by 7.2%. Overall, it was a softer quarter for the company with revenue guidance for next quarter missing analysts’ expectations. Offerpad delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. The stock is down 19.6% since reporting and currently trades at $0.64. Read our full report on Offerpad here, it’s free. Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services. Marcus & Millichap reported revenues of $171.5 million, up 18.2% year on year, outperforming analysts’ expectations by 5.7%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates. The market seems content with the results as the stock is up 3.7% since reporting. It currently trades at $30.08. Is now the time to buy Marcus & Millichap? Access our full analysis of the earnings results here, it’s free. Short for Real Estate Maximums, RE/MAX (NYSE:RMAX) operates a real estate franchise network spanning over 100 countries and territories. RE/MAX reported revenues of $70.23 million, down 5.7% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates. As expected, the stock is down 13% since the results and currently trades at $9.63. Read our full analysis of RE/MAX’s results here. Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE:HHH) develops, owns, and manages master-planned communities and commercial properties across the United States. Howard Hughes Holdings reported revenues of $235.9 million, up 18.4% year on year. This number lagged analysts' expectations by 0.5%. In spite of that, it was a very strong quarter as it recorded a beat of analysts’ EPS estimates. The stock is up 2% since reporting and currently trades at $64.82. Read our full, actionable report on Howard Hughes Holdings here, it’s free. Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE:COMP) is a digital-first company operating a residential real estate brokerage in the United States. Compass reported revenues of $2.70 billion, up 99.4% year on year. This result surpassed analysts’ expectations by 1.2%. Overall, it was a very strong quarter as it also put up EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Compass pulled off the fastest revenue growth among its peers. The stock is up 15.5% since reporting and currently trades at $8.38. Read our full, actionable report on Compass here, it’s free. Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

Evolved from a single-product company into a multi-solution platform including Cash Offer, Marketplace, brokerage services, and Renovate to capture more of the seller funnel. Prioritized capital allocation over volume by widening spreads and tightening the 'buy box' during market instability to ensure every transaction meets return thresholds. Implemented a post-inspection offer model to increase commitment certainty and improve transaction quality before capital is deployed. Reduced aged inventory to fewer than 30 homes, down from fewer than 60 in the prior quarter, through targeted mortgage rate buy-downs and other disposal levers. Deployed 'Scout' AI to improve home contracting rates by 200 basis points through better seller intent analysis and proprietary transaction history cross-referencing. Achieved a 37% year-over-year reduction in cost per qualified lead by using AI-driven conversation analysis to optimize marketing spend and call center performance. Utilized computer vision models within the 'Henry' AI tool to automate property inspection and renovation cost estimation based on historical outcomes. Targeting approximately 1,000 transactions per quarter as the critical threshold to achieve adjusted EBITDA breakeven and establish a foundation for scale. Anticipating sequential transaction growth of 14% to 33% in Q2 2026, driven by improved top-of-funnel conversion and a stronger entering pipeline. Projecting the Cash Offer Marketplace to become a meaningful contributor to gross profit in 2026 as the partner network matures and diversifies. Developing dynamic seller journeys where AI automatically routes homeowners to the most appropriate solution (Cash Offer vs. Brokerage) based on property criteria. Maintaining a lean cost structure that supports significantly higher volumes without proportional overhead growth, aiming for positive adjusted EBITDA before year-end 2026. Maintained total liquidity of over $60 million, with management stating no incremental equity capital is required to execute the current 2026 operating plan. Removed over $140 million in annualized expenses since 2022, reducing quarterly fixed operating costs to approximately $12.5 million. Diversified the Cash Offer Marketplace buyer network across institutional segments to mitigate risks from regulatory or capital market shifts. Reported Renovate revenue of $5.7 million with 20% to 30% margins, operating as a capital-light, high-margin revenue stream. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management confirmed revenue per transaction is lower in Q2 guidance due to a shift toward capital-light products like brokerage services. Brokerage services (HomePRO) generate lower fees (1% to 1.5%) compared to the 5% target for Cash Offer, but require no balance sheet deployment. Achieving the target requires a conversion increase of only 1% to 2% per month, which management believes is attainable through the new multi-solution approach. The addition of listing services allows the company to serve 'out of buy box' customers who were previously rejected, keeping them in the ecosystem. The majority of the $14.5 million quarterly operating expense is fixed; management expects this figure to remain stable or slightly decrease even as volume scales. Significant operating leverage exists because the current infrastructure can handle much higher transaction density without adding overhead. The Marketplace allows third-party buyers to source homes while Offerpad often performs the renovations for those same buyers. This dual-revenue model captures fees from both the transaction facilitation and the subsequent renovation work. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Thursday, April 30, 2026 at 4:30 p.m. ET Chief Executive Officer — Brian Bair Chief Financial Officer — Peter H. Knag Need a quote from a Motley Fool analyst? Email [email protected] Brian Bair: On the call with me today is our Chief Financial Officer, Peter H. Knag. Offerpad Solutions Inc. is executing. Over the past two years, we have evolved from a single product company into a multi-solution real estate platform, and that platform is now producing measurable results. Today, that platform includes Cash Offer, Cash Offer Marketplace, brokerage services, and Renovate. The macro environment has shifted since our last call. Geopolitical uncertainty has increased, including ongoing conflict in the Middle East, and interest rates have moved higher in response. Transaction volumes remain below historical norms, and affordability continues to limit mobility. For some sellers, this brings uncertainty around timing and proceeds, keeping many on the sidelines. We continue to refine and enhance our model through diversified revenue streams, multiple solutions, disciplined capital allocation, and AI-driven precision, positioning us to operate effectively in environments like this. While some sellers are still cautious, we are seeing greater stabilization with increased engagement and clearer alignment on pricing and expectations. That shift is supporting improved conversion, and we expect it to remain a tailwind through the remainder of 2026. With all that said, our Cash Offer strategy is not dependent on the macro backdrop changing. We run this business as a capital allocator first and an operator second. Every transaction competes for capital. If it does not meet our return thresholds, we do not transact. Our philosophy is simple: volume follows return, not the other way around. Throughout 2025, that meant deliberately widening spreads, tightening our buy box, and slowing acquisitions rather than chasing volume into an unstable market. That approach pressured short-term volume, but it strengthened the portfolio and preserved optionality. As we move through 2026, we are deploying capital with the same discipline. The result is a portfolio that is cleaner, fast returning, and better positioned for returns than at any other point in recent history. Our aged inventory, homes beyond their target period of hold time, stands today at fewer than 30 homes, down from fewer than 60 at the end of Q4. For remaining homes, we deployed buy-down mortgage rate incentives along with pulling other levers to accelerate movement. In addition, we made an important shift in how we operate. By moving to a post-inspection offer model, we are entering commitments with greater certainty, which means stronger transaction quality, more efficient capital deployment, and a better experience for sellers. But the bigger narrative is what is happening at the top of our funnel. Seller engagement with Offerpad Solutions Inc. is growing, and more importantly, sellers are finding solutions. Our multi-solution platform means that when a Cash Offer is not the right fit, we have options ready: the Cash Offer Marketplace or through our brokerage services with an agent-led listing path. More sellers are staying in our ecosystem, converting across more pathways, and leaving with a solution that works for their situation. Conversion is what we are focused on: the quality and completeness of every seller engagement. That should position us to scale transaction volume with confidence through the remainder of 2026. A key part of the execution and central to how we move forward is AI. Real estate is a data-intensive, decision-dense industry, and we have spent the last decade building the foundation to do this right: thousands of transactions, deep market coverage, rich data across pricing, renovations, and homeowner behavior. We believe this is a real operating advantage. With Scout and Henry, we are turning it into a faster, smarter, and more consistent operating model across stages of the transaction. From the moment a seller first engages with Offerpad Solutions Inc. to the final disposition of properties in our portfolio, AI will be embedded in that decision. That is a fundamentally different way to operate and should be a durable advantage that compounds with every home we touch. Let me start with what it is producing. From January through March, following the deployment of Scout across all operating markets, we saw over a 200 basis point improvement in home contracting rates. Let me explain how. Scout is an internally developed AI-powered homeowner intake and routing platform that is being rolled out to better understand our seller intent by cross-referencing seller-provided data with third-party sources, public records, and importantly, our own proprietary transaction history to improve acquisition accuracy and routing decisions before every single offer is made. Looking ahead, we are building Scout to make our homeowner intake experience fully dynamic and adaptive in real time by personalizing the seller journey based on the solutions available to them. A seller whose home falls outside of acquisition criteria will not be shown a Cash Offer path. Instead, they will be routed to the solution that works for them, guided by our customer solutions advisers every step of the way. That capability is in active development and is a core part of how Scout scales in 2026. Scout also enhances our call center operations with AI-driven conversation analysis evaluating homeowner interactions in near real time, giving our advisers live coaching and providing leadership visibility into performance trends and customer intent across thousands of conversations each month. Additionally, that intelligence has been extended upstream into our marketing demand generation, improving how we manage spend, optimize performance, and drive efficiency across channels. As a result, cost per qualified lead is down 37% year-over-year. We are reaching more sellers, more efficiently in the markets where we can win. Where Scout powers the seller journey, Henry will help govern the asset. We are expanding Henry's capabilities throughout 2026, deliberately and in stages. AI-driven property inspection and renovation estimation tools are now live, powered by computer vision models that analyze property images and inspection data to generate renovation cost estimates based on our historical outcomes. Looking ahead, Henry will guide decisions across renovation scope, listing price, holding time, and overall disposition strategy for every home in the portfolio. A core part of what Henry will enable is a new segmentation framework that combines macro market dynamics with property-level signals, allowing us to move beyond traditional static pricing approaches. This data-driven model will enhance how we assess demand and liquidity, giving us more consistent and scalable ways to make pricing and acquisition decisions across markets. As we scale this across the platform, it is being designed to improve turn times, strengthen risk management, and drive more disciplined, consistent returns over time. Together, Scout and Henry are the operating architecture of Offerpad Solutions Inc.'s future that will compound with every transaction we complete. On our last call, I shared more details on our focus with our four-solution platform. Next, I will go into updates and progress on each. Cash Offer remains our core differentiator. It gives sellers speed, certainty, and flexibility, and it continues to be the foundation of everything we build on top of. In Q1, Cash Offer continued to perform within our underwriting guardrails, and with Henry coming online, we expect our acquisition precision is only going to improve. The Cash Offer Marketplace grew over 60% year-over-year in 2025 and remains one of the most capital-efficient revenue streams we operate, generating fee income without balance sheet deployment. The residential investment landscape may be shifting, with regulatory and capital market dynamics continuing to influence how institutional buyers participate in residential real estate. That environment remains fluid, and we are well positioned by expanding our network designed for depth and durability, diversified across buyer segments so no single regulatory or market shift could disrupt the channel. Led by Rich Ford, we are executing against that strategy with discipline. As the network matures, we expect the Cash Offer Marketplace to become a meaningful contributor to gross profit in 2026. Offerpad Solutions Inc.'s brokerage services is a core driver of our platform. In Q1, we referred more qualified sellers to HomePRO agents than in all of 2025, and one third of Cash Offer requests now come through our agent partnership program. This capital-light model expands our reach, lowers acquisition costs, and drives profitability. Offerpad Solutions Inc. Renovate broke records nearly every quarter in 2025, and we are raising the bar in 2026. In Q1, Renovate generated $5.7 million in revenue compared to $5.3 million in 2025, continuing to deliver margins of 20% to 30% with no balance sheet capital required. Each solution serves a distinct need, generates its own revenue, and strengthens the whole, ensuring more sellers find the path with us. That breadth improves conversion, reduces risk, and keeps more customers in our ecosystem from first touch to close. Our focus remains on building a profitable, scalable business with superior returns on capital and a platform that performs across market cycles. In closing, I want to speak plainly about where we stand and what I believe. I believe we have built a strong home selling platform. I believe our four solutions give sellers and partners more control, more certainty, and more options than traditional alternatives. I believe the technology we are building in Scout and Henry will make us smarter, faster, and more precise with every single transaction we complete. And I believe the people at Offerpad Solutions Inc., the team that has worked tirelessly to build this platform, enhance our model, and serve our customers, are among the best in the industry. Our near-term objective remains approximately 1 thousand transactions per quarter, the level at which the business reaches adjusted EBITDA breakeven and the foundation from which we scale. We are building towards that milestone, and the progress we are making every quarter gives us confidence in that direction. But let me state again, 1 thousand transactions per quarter is not the finish line. It is the foundation. The platform we have built is designed to scale, and as it does, every incremental transaction carries more operating leverage, more data, and more intelligence back into the system. What we have built over the last two years is not a set of improvements; it is a fundamentally different operating model. The window to understand what Offerpad Solutions Inc. is becoming before the market fully reflects it is right now, and I intend to use every day to close that gap. I will now turn the call over to Peter. Thank you. Peter H. Knag: Thank you, Brian. What Brian described is not just a vision; it is already showing up in our financial results. The investments we have made in our platform, our people, and our operating model are translating into measurable progress, and Q1 is evidence of that. We guided to a range of $70 million to $95 million in revenue and 250 to 300 transactions, and we delivered, generating $80 million in total revenue across 263 transactions in Q1. That consistency matters. It reflects an operating model that is becoming more predictable, more disciplined, and more capable of scaling efficiently. Gross profit was $5.6 million in Q1 2026, resulting in gross margin of 6.9% for the quarter compared to 6.5% in Q1 2025. As we continue to scale transaction volumes and our mix of fee-based solutions grows, we expect gross margin to improve throughout the remainder of the year. Operating expenses, excluding property selling costs, were approximately $12.2 million, roughly in line with Q4 2025 and down from $16.7 million in Q1 2025. With over $140 million in annualized expenses removed since 2022, our cost base can support significantly higher transaction volumes without proportional overhead growth. That operating leverage is one of the most important drivers of our path to profitability. Adjusted EBITDA loss for the first quarter was $6.7 million, a sequential improvement from Q4 2025 and reflecting continued progress towards our goal of achieving positive adjusted EBITDA before 2026 year-end. We entered Q1 in a position of strength, and we exit in the same way. At quarter end, total liquidity was over $60 million, reflecting unrestricted cash plus the estimated fair market value of our inventory, including $41 million of unrestricted cash. Our 2026 operating framework, based on current plans and assumptions, does not anticipate requiring incremental equity capital to execute. We have the liquidity, the facilities, and the cost structure to scale within our defined guardrails. I want to address directly what I know is on everyone's mind: can we reach approximately 1 thousand transactions per quarter and return to profitability, and how do we get there? Here is the strategy. We closed Q1 with 163 transactions. That is our baseline. To reach our goal, we need to grow sequentially each quarter, and the drivers of that growth are already in motion. Scout is improving conversion rates at the top of the funnel. Our Cash Offer Marketplace partner network is expanding, routing more homes to more buyers without balance sheet deployment. As Brian stated, brokerage services referred more sellers in Q1 alone than in all of 2025, and Renovate continues to grow, adding high-margin fee revenue with every project it completes. Our Q2 guidance represents sequential growth of 14% to 33% in transactions over Q1. We expect continued sequential improvement in Q3 and Q4 as conversion improves. Based on our current cost structure and expected product mix, we believe approximately 1 thousand transactions per quarter represents our path to adjusted EBITDA breakeven. Every transaction above that threshold is expected to contribute incremental margin to the bottom line. That is the power of the operating leverage we have built. We do not need to add significant overhead to grow; we need to convert more sellers. That is exactly what our platform is designed to do. Turning to Q2, we entered the second quarter with a stronger pipeline than we had entering Q1 and continued conversion momentum across the platform. For Q2, we expect 300 to 350 real estate transactions across Cash Offer, Cash Offer Marketplace, and brokerage services; total revenue of $80 million to $90 million; and a narrower adjusted EBITDA loss compared to Q1, continuing our sequential progression towards positive adjusted EBITDA before year-end. Our priorities are clear, and our execution is improving, with sequential gains each quarter, a healthier portfolio every month, and a smarter AI system with every transaction. That is how we are building our business to scale, and I am excited by the progress we are seeing and what we are building to drive what comes next. With that, we will now take your questions. Operator: We will now open the call for questions. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute yourself. Please stand by while we compile the Q&A roster. Our first question comes from the line of Ryan Tomasello with KBW. Ryan, your line is now open. Analyst: Hi, everyone. This is Huang Chung on for Ryan. Thanks for taking the questions. So just taking the midpoint of Q2's guidance, that is $85 million revenue over 325 transactions. That gets us to a revenue per transaction that is about 14% lower than Q1. Is that just going to be the mix shift? And if so, could you help break down how you are thinking about the mix between the products? Peter H. Knag: Sure. That is right. So the mix, the revenue per transaction is a little bit different across the products. As you heard in the prepared remarks, we are heavily focused on conversion. That is the most important driver or KPI operationally for us. We historically, very roughly, have had two-thirds/one-third mix between the products, so two-thirds Cash Offer and one-third the other products, including HomePRO and Cash Offer Marketplace. Cash Offer, we target around 5% of the home value for gross profit. The Cash Offer Marketplace is similar to that, and then HomePRO is lower. HomePRO is about—we split the fee for a traditional real estate listing service with the broker, so it tends to be around 1% or 1.5%. So as we broaden our product set and increase conversion across these other products, you will see that per-transaction figure adjust accordingly. Analyst: And on just the top of funnel of home sellers, how has that trended to start the year? Recall that you have previously called out that it is roughly 10 thousand to 20 thousand in any given month. So has that accelerated at all? Brian Bair: Yes, that has actually stayed very strong, and we are continuing to even see some growth there as well. Our marketing team has really focused on not just bringing in more leads or more sellers but the quality of sellers, and so we are seeing really strong, engaged sellers that are coming top of funnel. So that has definitely stayed strong. Analyst: Great. Thank you. Operator: Your next question comes from the line of Dae Lee from JPMorgan. Dae Lee, you are live. Dae Lee: Alright. Great. Thanks for taking the questions. I will go back to the 1 thousand per quarter target you guys have out there. I mean, those kind of suggest, like Peter said, a meaningful ramp in the second half to get to that target, and also have to factor in the seasonality aspect of that. So just curious to hear where the conversion of your platform stands today and where do you see the opportunity to improve that? Is it on the Cash Offer side? Is it on the other transactions? Does it vary by geography? Does seasonality help? Could you help us bridge where you are today to the end of the year, and what gives you the confidence for bridging that? Brian Bair: Sure. Peter H. Knag: Thanks for the question, Dae. There are a couple of things that I would point out. One is, while we have historically been really one product—or a little bit one to two products—now we are three products, and so particularly with the addition of the brokerage services solution, we are seeing conversion going up based on having additional offers for the top-of-funnel customer and just increasing the likelihood that they choose a solution. Second, 1 thousand transactions—we came down intentionally over the last couple of quarters last year on our Cash Offer volume as we worked on our operations, and so we are able to ramp that up just based on the adjustments that we are making in the price point that we are putting out there and our buy box characteristics. If you look back in 2024, we were doing almost 800 or 900 transactions per quarter, and at our high point a couple of years ago, we were doing 1 thousand transactions per month, not per quarter. So we have high confidence that we can get there. Brian Bair: Just a couple of things on that as well. With our current volume, it is going to take a conversion increase of 1% to 2% a month to make that happen. And one of the things that is important is we are able to now serve customers we were not able to serve before with our listing services. So, for example, if there were homes that were outside of—or out of area, out of our buy box—we simply could not offer on that with a Cash Offer or through our Cash Offer Marketplace. Now with brokerage services, it changes conversion because we can find a solution for them. And with our listing services, the customer gets free moving services and home warranties. So it is a really strong, compelling product on why to list with one of our HomePROs. If we increase conversion, which we are starting to see now with our different products, and are able to serve customers we were not before, that is what gives us the confidence towards that 1 thousand transactions per quarter. Operator: Our last question comes from the line of Gaurav Mehta with AGP. Gaurav, your line is now open. Gaurav Mehta: Yes, thanks for taking my question. I wanted to ask you on the 1 thousand transactions and adjusted EBITDA. So does your adjusted EBITDA breakeven expectations include renovations in those transactions, or is Renovate separate from transactions? Peter H. Knag: Hi, Gaurav. I think I heard the question correctly. Does adjusted EBITDA include the cost of renovations? Absolutely. It is in there in the cost of goods sold as part of the Cash Offer product, and then separately for the B2B third-party Renovate business, it is also in the cost of goods sold. Gaurav Mehta: Okay. No, I actually wanted to ask you on the Renovate revenue. So to get to adjusted EBITDA, how much Renovate revenue growth are you guys assuming? Peter H. Knag: I see. So it is not in the 1 thousand transactions. We think of the business really in two buckets, perhaps. One, the customers that are coming to us and are looking to sell their home—we have three products for that, and that is what we are focused around on the 1 thousand transactions. And that business is a little bit more variable, and so that is the reason for the focus on 1 thousand transactions across those three products. The Renovate business is very consistent and is part of reaching EBITDA and cash flow positive, but it is not part of that 1 thousand metric. It is part of the total financials, of course, and part of EBITDA. It is growing fairly rapidly, and we expect it to continue to grow. Gaurav Mehta: Okay. Thanks for that color. Second question I have is on the transaction mix. What was the mix between Cash Offer and other services in the current transactions you reported in Q1? And I know in the past, you have talked about maybe 50/50 as you approach adjusted EBITDA breakeven. Is that still the expectation? Peter H. Knag: Yes. In the mix—you can see on the trending schedules on the IR site—we break out all those details, but the mix has been, as I have mentioned, about one-third/two-thirds: two-thirds Cash Offer. And yes, we do expect, as we move across the year up towards 1 thousand transactions, a larger share coming from the other two real estate transaction products. Brian Bair: Yes. The one thing I will just add to that as well is our Cash Offer Marketplace—we continue to add other cash offer partners in there as well. People come to Offerpad Solutions Inc. because they want a cash offer. It does not necessarily need to be an Offerpad Solutions Inc. Cash Offer. We want to find the best solution for them. And so in our Cash Offer Marketplace, having short-term hold companies as well as long-term hold companies helps us find the best customer and the best solution for them on the Cash Offer Marketplace. As we continue to grow towards the 1 thousand, we are expecting the Cash Offer Marketplace to continue to grow and to ramp as we add more and more, even up to some of the smaller customers on there. It is actually good because we help them source; they can find homes off of our marketplace. Then also, we are doing the renovation for those groups as well, and so Offerpad Solutions Inc. is benefiting from both of those segments. Gaurav Mehta: Okay. Thank you. Maybe one more for me. On the operating expense side, as you ramp up the transactions, do you expect the operating expenses to remain where they are, or do you expect any further improvements or any increases on the operating expense side? Peter H. Knag: Yes. If you look on the P&L, for this quarter there is $14.5 million of operating expenses. If you look on the non-GAAP reconciliation table, you can see that there are some selling and holding cost expenses in there—around $2 million for this quarter. That small piece of operating expenses, as in the GAAP reporting, is variable, but the large majority of it, which is about $12 million—which we highlighted in the prepared remarks, or $12.5 million—is not variable. In fact, there are a few more levers that we are working to pull that are harder than the other cost-outs that we have done across the last few years, and so we expect that to actually continue to come down—not as dramatically as we have over time. A couple of years ago, it was as much as $80 million per quarter, and now we are down to $12.5 million, or with the holding costs, $14.5 million. So it will not come down too much more, but we expect it to go down, not up. Gaurav Mehta: Alright. Thank you. That is all I have. Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Offerpad Solutions, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Offerpad Solutions wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,797!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,282,815!* Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Offerpad (OPAD) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: April 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Offerpad Solutions Inc (NYSE:OPAD) has evolved into a multi-solution real estate platform, including Cash Offer Marketplace, Brokerage Services, and Renovate, which is producing measurable results. The company has seen a 200 basis point improvement in home contracting rates following the deployment of its AI-powered platform, Scout. Offerpad Solutions Inc (NYSE:OPAD) reported a gross profit of $5.6 million in Q1 2026, with a gross margin improvement from 6.5% in Q1 2025 to 6.9% in Q1 2026. The company has significantly reduced its operating expenses, with over $140 million in annualized expenses removed since 2022, supporting higher transaction volumes without proportional overhead growth. Offerpad Solutions Inc (NYSE:OPAD) has a strong liquidity position with over $60 million, including $41 million of unrestricted cash, and does not anticipate requiring incremental equity capital to execute its 2026 operating framework. The macro environment remains challenging with geopolitical uncertainty and higher interest rates affecting transaction volumes and affordability. Offerpad Solutions Inc (NYSE:OPAD) is still operating at an adjusted EBITDA loss, with a $6.7 million loss reported for Q1 2026. The company faces pressure from a lower revenue per transaction, expected to be about 14% lower in Q2 compared to Q1, due to a mix shift in products. Offerpad Solutions Inc (NYSE:OPAD) has a target of approximately 1,000 transactions per quarter to reach adjusted EBITDA breakeven, which requires a significant ramp-up from the current 263 transactions in Q1. The company is still working on improving conversion rates and expanding its cash offer marketplace to achieve its transaction goals, indicating ongoing operational challenges. Warning! GuruFocus has detected 4 Warning Signs with OPAD. Is OPAD fairly valued? Test your thesis with our free DCF calculator. Q: The revenue per transaction for Q2 is projected to be about 14% lower than Q1. Is this due to a mix shift, and can you break down the mix between the products? A: Yes, the revenue per transaction varies across our products. Historically, we've had a two-thirds cash offer and one-third other products mix. Cash offers target around 5% of the home value for gross profit, while HomePro is lower, around 1% to 1.5%. As we broaden our product set and increase conversion across these products, the per transaction figure will adjust accordingly. - Peter Knaug, CFO Q: How has the top of funnel for home sellers trended at the start of the year? A: The top of funnel has remained strong, with some growth. Our marketing team focuses on bringing in quality sellers, resulting in strong, engaged sellers at the top of the funnel. - Brian Baer, CEO Q: Regarding the 1,000 transactions per quarter target, where do you see the opportunity to improve conversion? Is it on the cash offer side or other transactions? A: We are seeing conversion improvements due to additional offers for top-of-funnel customers, particularly with the addition of brokerage services. We intentionally reduced cash offer volume last year to refine operations, and now we're ramping up based on adjustments and pricing. Historically, we've achieved high transaction volumes, so we are confident in reaching the target. - Peter Knaug, CFO Q: Does your adjusted EBITDA break-even expectations include renovations in those transactions? A: Yes, adjusted EBITDA includes the cost of renovations in the cost of goods sold for the cash offer product and separately for the B2B third-party renovate business. - Peter Knaug, CFO Q: What was the mix between cash offer and other services in the current transactions reported in Q1? Is the 50/50 mix still the expectation as you approach adjusted EBITDA break-even? A: The mix has been about one-third other services and two-thirds cash offer. As we move towards 1,000 transactions, we expect a larger percentage from the other two real estate transaction products. - Peter Knaug, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript.