Offerpad Solutions Inc. reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with total revenue of $918.8 million, a decrease of 30.1% from $1.3 billion in 2023. The company sold 2,707 homes during the year, down 26.3% from 3,674 homes sold in the previous year. The average sales price per home also fell by 5.6%, from $355,000 in 2023 to $335,000 in 2024. This decline in revenue was attributed to lower sales volumes and a challenging residential real estate market, exacerbated by elevated mortgage interest rates, which reached close to 7% by year-end.
Despite the drop in revenue, Offerpad's gross profit increased slightly to $72.2 million, up from $70.2 million in 2023, resulting in a gross profit margin of 7.9%, compared to 5.3% the previous year. The improvement in gross profit margin was primarily due to a decrease in real estate inventory valuation adjustments, which fell from $8.9 million in 2023 to $4.5 million in 2024. The company also reported a net loss of $62.2 million, a reduction from a net loss of $117.2 million in 2023, indicating progress in managing operational costs.
Strategically, Offerpad has focused on optimizing its capital allocation and reducing its home acquisition pace in response to market conditions. The company operates in 26 metropolitan markets across 17 states, having expanded its footprint while also enhancing its service offerings, including a B2B renovation business and an agent partnership program. The company has also integrated with Realtor.com to broaden its reach and diversify lead sources. As of December 31, 2024, Offerpad had approximately 200 employees and reported a customer satisfaction rating of 91%.
Looking ahead, Offerpad anticipates continued challenges in the residential real estate market due to ongoing economic uncertainties and high mortgage rates. The company plans to maintain a conservative approach to home acquisitions and may implement pricing adjustments and incentives to stimulate demand. With an accumulated deficit of $460 million as of year-end 2024, Offerpad's management remains focused on achieving profitability while navigating the complexities of the current market environment. The company has also indicated that it will seek additional financing to support its operations and growth initiatives in the coming year.
About Offerpad Solutions Inc.
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