2024 Net Loss Improves 47%, or $55 million Versus Prior Year

TEMPE, Ariz.: Offerpad Solutions Inc. (“Offerpad”) (NYSE: OPAD), a leading tech-enabled platform for residential real estate, today released financial results for the three months and full year ended December 31, 2024.

“In the fourth quarter, revenue exceeded the midpoint of our guidance, supported by a balanced mix of offerings. This performance was achieved with the support of our Renovate business surpassing $18 million in revenue for the year and our improved advertising efficiencies driven by our Agent Partnership Program growing to nearly a third of our acquisitions,” said Brian Bair, Offerpad’s CEO. “We’ve made tremendous product improvements as we’ve remained focused on delivering real estate solutions for consumers and partners while making progress toward building a long-term, sustainable business.”

FY 2024 Highlights include:

• Improved net loss and adjusted EBITDA 47% or $55 million and 65% or $53 million, respectively, from the prior year
• Gross profit per home sold of $26.7k
• Contribution profit after interest per home sold of $11.5k, with 33% via asset light services
• Total operating expenses for the year decreased to $118.2M from $174.6M the prior year, a $56.4M or 32% improvement
• Renovate closed projects grew to 1,096, surpassing $18 million of revenue, up 49% versus the prior year
• Acquisitions from Offerpad’s Agent Partnership Program grew to 32% of total compared to 21% the prior year
• Time to cash (TTC) came in at 116 days, an improvement of 23 days or 18% year over year

"Through our relentless focus on cost efficiency, we’ve taken big steps towards profitability. After lowering annual operating expenses by nearly $70 million in 2023, we continued to make excellent progress in 2024, removing $44 million of additional cost," said Peter Knag, Offerpad’s CFO. “As we enter 2025, we remain focused on increasing acquisition activity, maintaining cost discipline, and positioning Offerpad for long-term stability and growth.”

Additional information regarding Offerpad’s fourth quarter and full year 2024 financial results and management commentary can be found by accessing the Company’s Quarterly Letter to Shareholders on the Offerpad investor relations website.

First Quarter 2025 Outlook

Offerpad is providing its first quarter outlook for 2025 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 February 24, 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 manage its growth and its costs structure 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. 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 to be filed with the Securities and Exchange Commission on or about 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								Year Ended
		December 31,								December 31,
(in thousands, except per share data) (Unaudited)		2024				2023				2024				2023
Revenue		$	174,272			$	240,458			$	918,819			$	1,314,412
Cost of revenue			163,683				223,766				846,624				1,244,231
Gross profit			10,589				16,692				72,195				70,181
Operating expenses:
Sales, marketing and operating			13,545				17,932				73,091				116,558
General and administrative			9,874				8,775				40,621				50,091
Technology and development			840				1,236				4,524				7,945
Total operating expenses			24,259				27,943				118,234				174,594
Loss from operations			(13,670	)			(11,251	)			(46,041	)			(104,413	)
Other income (expense):
Change in fair value of warrant liabilities			(109)				(109)				240				68
Interest expense			(4,084	)			(5,154	)			(18,684	)			(18,859	)
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