Offerpad Solutions (OPAD) - 2025 Q1 - Quarterly Results

Financial Performance - Offerpad reported Q1 2025 revenue of $160.7 million, a decrease of 8% from Q4 2024 and a 44% decline year-over-year from $285.4 million[5][6]. - The net loss for Q1 2025 improved to $15.1 million, a 13% reduction from the previous quarter and a 14% improvement compared to Q1 2024[4][6]. - Adjusted EBITDA for Q1 2025 was a loss of $7.8 million, showing a 32% improvement from the prior quarter[4][5]. - Offerpad's net loss for the three months ended March 31, 2025, was $15,057,000, resulting in a net loss margin of 9.4%[37]. - Adjusted EBITDA for the same period was $(7,831,000), with an adjusted EBITDA margin of (4.9%) [37]. - Offerpad's adjusted net loss for the three months ended March 31, 2025, was $14,800,000, with an adjusted net loss margin of 9.2%[37]. Profitability Metrics - Gross profit per home sold increased to $22,800, an 8% improvement from the previous quarter but a 14% decline year-over-year[5][6]. - Offerpad reported a GAAP gross profit of $10,507,000 for the three months ended March 31, 2025, with a gross margin of 6.5%[29]. - Adjusted gross profit for the same period was $11,461,000, resulting in an adjusted gross margin of 7.1%[29]. - Contribution profit for the period was $6,144,000, yielding a contribution margin of 3.8%[29]. - Contribution profit after interest was $222,000, with a contribution margin after interest of 0.1%[29]. - The contribution profit after interest per home sold dropped significantly to $500, a 91% decline from $5,500 in the previous quarter[5][6]. Operational Highlights - Total operating expenses decreased to $22.0 million, down 39% from $36.2 million in the prior year[4][6]. - Homes acquired in Q1 2025 totaled 454, an 18% increase from 384 in Q4 2024, but a 44% decrease from 806 in Q1 2024[5][6]. - Renovate closed 209 projects in Q1 2025, generating record revenue of $5.3 million, up 29% sequentially[1][4]. - The company sold 460 homes during the three months ended March 31, 2025, with a gross profit per home sold of $22,800[29]. Cash Position - Cash and cash equivalents at the end of Q1 2025 were $30.8 million, a 28% decrease from $43.0 million at the end of Q4 2024[5][6]. Future Outlook - Offerpad's second quarter 2025 outlook projects homes sold between 500 to 550 and revenue between $160 million to $190 million[7].