Offerpad Solutions Inc. Reports 43.7% Revenue Decline in Q1 2025

Offerpad Solutions Inc. reported a significant decline in financial performance for the first quarter of 2025, with revenues totaling $160.7 million, a decrease of 43.7% from $285.4 million in the same period of 2024. The company sold 460 homes during the quarter, down 45.7% from 847 homes sold in the prior year. This reduction in sales volume was attributed to a strategic decision to slow home acquisitions in response to challenging market conditions, including elevated mortgage interest rates, which have remained between 6% and 7%. The gross profit for the quarter was $10.5 million, resulting in a gross profit margin of 6.5%, down from 7.9% a year earlier.

In terms of operational efficiency, Offerpad managed to reduce its total operating expenses by 39.1% to $22.0 million, compared to $36.2 million in the previous year. This reduction was driven by lower sales and marketing costs, which fell by 38.4% to $13.8 million, and a decrease in general and administrative expenses, which dropped by 39.8% to $7.2 million. The company reported a net loss of $15.1 million, an improvement from the $17.5 million loss recorded in the first quarter of 2024. The loss per share was $0.55, compared to $0.64 in the prior year.

Key operational metrics indicated a strategic shift in Offerpad's approach to the market. The company has focused on optimizing its capital allocation and reducing its home acquisition pace to manage inventory levels effectively. As of March 31, 2025, Offerpad had 27,543,087 shares of Class A common stock outstanding. The company operates in over 1,900 cities across 27 metropolitan markets in 18 states, reflecting its extensive geographic reach.

Looking ahead, Offerpad's management expressed caution regarding the uncertain economic outlook and its potential impact on consumer demand for residential real estate. The company plans to continue using pricing adjustments and incentives to stimulate demand while balancing its home acquisition strategy. Additionally, Offerpad is working on a plan to address its compliance with New York Stock Exchange listing standards after receiving a notification regarding its market capitalization and stockholders' equity. The company aims to submit a plan to the NYSE within the required timeframe to maintain its listing status.