OPAD Offerpad Solutions Inc

Renovate delivers record $5.3 million in Q1 revenue up 29% sequentially

Offerpad Solutions Inc. (“Offerpad”) (NYSE: OPAD), a leading tech-enabled platform for residential real estate, today released financial results for the three months ended March 31, 2025.

“In Q1, we delivered balanced results in line with expectations, led by increasing Cash Offer volume and growing contribution margin from our asset-light services,” said Brian Bair, Chairman and CEO of Offerpad. “We’re focused on building a strong, flexible foundation—enhancing the customer experience, driving efficiency, and scaling programs like Renovate and our Agent Partnership Program—so we’re not only operating for today's market, but positioned to accelerate as transaction volume normalizes.”

Q1 2025 Highlights include:

• Improved net loss and adjusted EBITDA 13% or $2.3M and 32% or $3.7M, respectively, from the prior quarter
• Gross profit per home sold of $22.8k an improvement of 8% from the prior quarter
• Total operating expenses for the quarter decreased to $22.0M from $36.2M the prior year, a $14.1M or 39% improvement
• Renovate closed 209 projects in Q1 2025 up 12% versus the prior quarter generating record revenue of $5.3M
• Acquisitions from Offerpad’s Agent Partnership Program grew to 42% of total compared to 28% the prior year
• 671 homes in inventory at the end of Q1 with 13% owned for over 180 days and not under contract for resale down from 22% at the end of the year

“We’re seeing strong early performance in 2025, with revenue growth building on a significantly reduced cost base,” said Peter Knag, Offerpad’s CFO. “As we ramp up acquisition activity, we’re staying disciplined in how we operate: efficient, focused, and growth-minded.”

Q1 2025 Financial Results (quarter over quarter)

 

 

Q1 2025

Q4 2024

Percentage Change

Homes acquired

454

384

18%

Homes sold

460

503

(9%)

Revenue

$160.7M

$174.3M

(8%)

Gross profit

$10.5M

$10.6M

(1%)

Net loss

($15.1M)

($17.3M)

13%

Adjusted EBITDA

($7.8M)

($11.5M)

32%

Diluted Net Loss per Share

($0.55)

($0.63)

13%

Gross profit per home sold

$22,800

$21,100

8%

Contribution profit after interest per home sold

$500

$5,500

(91%)

Cash and cash equivalents

$30.8M

$43.0M

(28%)

Q1 2025 Financial Results (year over year)

 

 

 

 

 

Q1 2025

Q1 2024

Percentage Change

Homes acquired

454

806

(44%)

Homes sold

460

847

(46%)

Revenue

$160.7M

$285.4M

(44%)

Gross profit

$10.5M

$22.6M

(53%)

Net loss

($15.1M)

($17.5M)

14%

Adjusted EBITDA

($7.8M)

($7.1M)

(10%)

Diluted Net Loss per Share

($0.55)

($0.64)

14%

Gross profit per home sold

$22,800

$26,700

(14%)

Contribution profit after interest per home sold

$500

$11,900

(96%)

Cash and cash equivalents

$30.8M

$68.6M

(55%)

Additional information regarding Offerpad’s first 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.

Second Quarter 2025 Outlook

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

 

 

 

Q2 2025 Outlook

Homes Sold

500 to 550

Revenue

$160M to $190M

Adjusted EBITDA1

Sequential Improvement

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 May 5, 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

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 first 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

 

 

 

March 31,

 

(in thousands, except per share data) (Unaudited)

 

2025

 

 

2024

 

Revenue

 

$

160,698

 

 

$

285,358

 

Cost of revenue

 

 

150,191

 

 

 

262,763

 

Gross profit

 

 

10,507

 

 

 

22,595

 

Operating expenses:

 

 

 

 

 

 

Sales, marketing and operating

 

 

13,828

 

 

 

22,452

 

General and administrative

 

 

7,196

 

 

 

11,955

 

Technology and development

 

 

1,020

 

 

 

1,773

 

Total operating expenses

 

 

22,044

 

 

 

36,180

 

Loss from operations

 

 

(11,537

)

 

 

(13,585

)

Other income (expense):

 

 

 

 

 

 

Change in fair value of warrant liabilities

 

 

(257

)

 

 

344

 

Interest expense

 

 

(3,522

)

 

 

(4,905

)

Other income, net

 

 

296

 

 

 

754

 

Total other expense

 

 

(3,483

)

 

 

(3,807

)

Loss before income taxes

 

 

(15,020

)

 

 

(17,392

)

Income tax expense

 

 

(37

)

 

 

(123

)

Net loss

 

$

(15,057

)

 

$

(17,515

)

Net loss per share, basic

 

$

(0.55

)

 

$

(0.64

)

Net loss per share, diluted

 

$

(0.55

)

 

$

(0.64

)

Weighted average common shares outstanding, basic

 

 

27,564

 

 

 

27,339

 

Weighted average common shares outstanding, diluted

 

 

27,564

27,339

 

OFFERPAD SOLUTIONS INC.

Condensed Consolidated Balance Sheets

 

 

 

 

March 31,

 

 

December 31,

 

(in thousands, except par value per share) (Unaudited)

 

 

2025

 

 

2024

 

ASSETS

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$

30,826

 

 

$

43,018

 

Restricted cash

 

 

 

4,857

 

 

 

30,608

 

Accounts receivable

 

 

 

6,294

 

 

 

3,848

 

Real estate inventory

 

 

 

210,847

 

 

 

214,174

 

Prepaid expenses and other current assets

 

 

 

2,656

 

 

 

2,564

 

Total current assets

 

 

 

255,480

 

 

 

294,212

 

Property and equipment, net

 

 

 

9,840

 

 

 

9,127

 

Other non-current assets

 

 

 

9,158

 

 

 

9,714

 

TOTAL ASSETS

 

 

$

274,478

 

 

$

313,053

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Accounts payable

 

 

$

2,151

 

 

$

1,922

 

Accrued and other current liabilities

 

 

 

12,712

 

 

 

11,804

 

Secured credit facilities and other debt, net

 

 

 

155,285

 

 

 

195,378

 

Secured credit facilities and other debt - related party

 

 

 

55,682

 

 

 

41,861

 

Total current liabilities

 

 

 

225,830

 

 

 

250,965

 

Warrant liabilities

 

 

 

488

 

 

 

231

 

Other long-term liabilities

 

 

 

13,942

 

 

 

14,204

 

Total liabilities

 

 

 

240,260

 

 

 

265,400

 

Commitments and contingencies

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

Class A common stock, $0.0001 par value; 2,000,000 shares authorized; 27,543 and 27,379 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

 

 

 

3

 

 

 

3

 

Additional paid in capital

 

 

 

509,318

 

 

 

507,696

 

Accumulated deficit

 

 

 

(475,103

)

 

 

(460,046

)

Total stockholders’ equity

 

 

 

34,218

 

 

 

47,653

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

274,478

 

$

313,053

OFFERPAD SOLUTIONS INC.

Condensed Consolidated Statements of Cash Flows

 

 

 

Three Months Ended

 

 

 

March 31,

 

($ in thousands) (Unaudited)

 

2025

 

 

2024

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(15,057

)

 

$

(17,515

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

Depreciation

 

 

206

 

 

 

166

 

Amortization of debt financing costs

 

 

341

 

 

 

818

 

Real estate inventory valuation adjustment

 

 

1,743

 

 

 

624

 

Stock-based compensation

 

 

1,782

 

 

 

3,867

 

Change in fair value of warrant liabilities

 

 

257

 

 

 

(344

)

Loss (gain) on disposal of property and equipment

 

 

75

 

 

 

(5

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(2,446

)

 

 

5,588

 

Real estate inventory

 

 

1,584

 

 

 

9,769

 

Prepaid expenses and other assets

 

 

465

 

 

 

670

 

Accounts payable

 

 

229

 

 

 

(568

)

Accrued and other liabilities

 

 

645

 

 

 

(684

)

Net cash (used in) provided by operating activities

 

 

(10,176

)

 

 

2,386

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchases of property and equipment

 

 

(994

)

 

 

(353

)

Proceeds from sale of property and equipment

 

 

—

 

 

 

30

 

Net cash used in investing activities

 

 

(994

)

 

 

(323

)

Cash flows from financing activities:

 

 

 

 

 

 

Borrowings from credit facilities and other debt

 

 

162,795

 

 

 

242,142

 

Repayments of credit facilities and other debt

 

 

(189,408

)

 

 

(245,579

)

Proceeds from exercise of stock options

 

 

—

 

 

 

16

 

Payments for taxes related to stock-based awards

 

 

(160

)

 

 

(43

)

Net cash used in financing activities

 

 

(26,773

)

 

 

(3,464

)

Net change in cash, cash equivalents and restricted cash

 

 

(37,943

)

 

 

(1,401

)

Cash, cash equivalents and restricted cash, beginning of period

 

 

73,626

 

 

 

79,934

 

Cash, cash equivalents and restricted cash, end of period

 

$

35,683

 

 

$

78,533

 

Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet:

 

 

 

 

 

 

Cash and cash equivalents

 

$

30,826

 

 

$

68,550

 

Restricted cash

 

 

4,857

 

 

 

9,983

 

Total cash, cash equivalents and restricted cash

 

$

35,683

 

 

$

78,533

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash payments for interest

 

$

8,401

 

 

$

6,427

 

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 and fair value adjustments of derivative financial instruments. The composition of Offerpad’s holding costs is described in the footnotes to the reconciliation table below. Offerpad defines Contribution Margin as Contribution Profit as a percentage of revenue.

Offerpad views this metric as an important measure of business performance as it captures the unit level performance isolated to homes sold in a given period and provides comparability across reporting periods. Contribution Profit helps management assess inflows and outflow directly associated with a specific resale cohort.

Contribution Profit / Margin After Interest

Offerpad defines Contribution Profit After Interest as Contribution Profit, minus (1) interest expense associated with homes sold in the presented period and recorded in cost of revenue, minus (2) interest expense associated with homes sold in the presented period, recorded in costs of sales, and previously excluded from Adjusted Gross Profit, and minus (3) interest expense under Offerpad’s senior and mezzanine secured credit facilities and other senior secured debt incurred on homes sold during the period. This includes interest expense recorded in prior periods in which the sale occurred. Offerpad’s senior and mezzanine secured credit facilities and other senior secured debt are secured by their homes in real estate inventory and drawdowns are made on a per-home basis at the time of purchase and are required to be repaid at the time the homes are sold. Offerpad defines Contribution Margin After Interest as Contribution Profit After Interest as a percentage of revenue.

Offerpad views this metric as an important measure of business performance. Contribution Profit After Interest helps management assess Contribution Margin performance, per above, when fully burdened with costs of financing.

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)

March 31, 2025

December 31, 2024

March 31, 2024

Gross profit (GAAP)

$

10,507

 

 

$

10,589

 

 

 

22,595

 

Gross margin

 

6.5

%

 

6.1

%

 

7.9

%

Homes sold

 

460

 

 

 

503

 

 

 

847

 

Gross profit per home sold

$

22.8

 

$

21.1

 

$

26.7

 

Adjustments:

 

 

Real estate inventory valuation adjustment - current period (1)

 

1,743

 

 

2,457

 

 

623

 

Real estate inventory valuation adjustment - prior period (2)

 

(2,211

)

 

 

(592

)

 

 

(645

)

Interest expense capitalized (3)

 

1,422

 

 

1,315

 

 

1,669

 

Adjusted gross profit

$

11,461

 

 

$

13,769

 

 

$

24,242

 

Adjusted gross margin

 

7.1

%

 

7.9

%

 

8.5

%

Adjustments:

 

 

Direct selling costs (4)

 

(4,388

)

 

(5,011

)

 

(6,969

)

Holding costs on sales - current period (5)(6)

 

(535

)

 

 

(511

)

 

 

(887

)

Holding costs on sales - prior period (5)(7)

 

(690

)

 

(556

)

 

(483

)

Other income, net (8)

 

296

 

 

 

476

 

 

 

754

 

Contribution profit

$

6,144

 

$

8,167

 

$

16,657

 

Contribution margin

 

3.8

%

 

 

4.7

%

 

 

5.8

%

Homes sold

 

460

 

 

503

 

 

847

 

Contribution profit per home sold

$

13.4

 

 

$

16.2

 

 

$

19.7

 

Adjustments:

Interest expense capitalized (3)

 

(1,422

)

 

 

(1,315

)

 

 

(1,669

)

Interest expense on homes sold - current period (9)

 

(1,617

)

 

(1,481

)

 

(2,521

)

Interest expense on homes sold - prior period (10)

 

(2,883

)

 

 

(2,629

)

 

 

(2,426

)

Contribution profit after interest

$

222

 

$

2,742

 

$

10,041

 

Contribution margin after interest

 

0.1

%

 

 

1.6

%

 

 

3.5

%

Homes sold

 

460

 

 

503

 

 

847

 

Contribution profit after interest per home sold

$

0.5

 

 

$

5.5

 

 

$

11.9

 

 

(1)

 

Real estate inventory valuation adjustment – current period is the real estate inventory valuation adjustments recorded during the period presented associated with homes that remain in real estate inventory at period end.

(2)

 

Real estate inventory valuation adjustment – prior period is the real estate inventory valuation adjustments recorded in prior periods associated with homes that sold in the period presented.

(3)

 

Interest expense capitalized represents all interest related costs, including senior and mezzanine secured credit facilities, incurred on homes sold in the period presented that were capitalized and expensed in cost of sales at the time of sale.

(4)

 

Direct selling costs represents selling costs incurred related to homes sold in the period presented. This primarily includes broker commissions and title and escrow closing fees.

(5)

 

Holding costs primarily include insurance, utilities, homeowners association dues, property taxes, cleaning, and maintenance costs.

(6)

 

Represents holding costs incurred on homes sold in the period presented and expensed to Sales, marketing, and operating on the Condensed Consolidated Statements of Operations.

(7)

 

Represents holding costs incurred in prior periods on homes sold in the period presented and expensed to Sales, marketing, and operating on the Condensed Consolidated Statements of Operations.

(8)

 

Other income, net principally represents interest income earned on our cash and cash equivalents and fair value adjustments of derivative financial instruments.

(9)

 

Represents both senior and mezzanine interest expense incurred on homes sold in the period presented and expensed to interest expense on the Condensed Consolidated Statements of Operations.

(10)

 

Represents both senior and mezzanine secured credit facilities interest expense incurred in prior periods on homes sold in the period 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)

March 31, 2025

December 31, 2024

March 31, 2024

Net loss (GAAP)

$

(15,057

)

 

$

(17,325

)

 

$

(17,515

)

Net loss margin

 

(9.4

%)

 

(9.9

%)

 

(6.1

%)

Change in fair value of warrant liabilities

 

257

 

 

 

109

 

 

 

(344

)

Adjusted net loss

$

(14,800

)

$

(17,216

)

$

(17,859

)

Adjusted net loss margin

 

(9.2

%)

 

 

(9.9

%)

 

 

(6.3

%)

Adjustments:

Interest expense

 

3,522

 

 

 

4,084

 

 

 

4,905

 

Amortization of capitalized interest (1)

 

1,422

 

 

1,315

 

 

1,669

 

Income tax (benefit) expense

 

37

 

 

 

(62

)

 

 

123

 

Depreciation and amortization

 

206

 

 

147

 

 

166

 

Amortization of stock-based compensation

 

1,782

 

 

 

249

 

 

 

3,867

 

Adjusted EBITDA

$

(7,831

)

$

(11,483

)

$

(7,129

)

Adjusted EBITDA margin

 

(4.9

%)

 

 

(6.6

%)

 

 

(2.5

%)

(1)

 

Amortization of capitalized interest represents all interest related costs, including senior and mezzanine secured interest related costs, incurred on homes sold in the period presented that were capitalized and expensed in cost of sales at the time of sale.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250505853801/en/

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