Offerpad Solutions (NYSE:OPAD) used its fourth-quarter and full-year 2025 earnings call to outline a strategy centered on disciplined capital deployment, expanding beyond a single-product iBuyer model, and building what management described as a four-solution real estate platform. Executives also pointed to early 2026 operating momentum, including a sharp increase in signed contracts, while reiterating a goal of returning to positive Adjusted EBITDA within 2026.
Management frames 2025 as a year of “readiness” amid a constrained housing market
Chairman and CEO Brian Bair said the housing market remains constrained, with transaction volumes below historic norms and affordability limiting mobility. While mortgage rates have moderated, they remain elevated compared to the prior cycle, and management described the recovery as “gradual and uneven.”
Rather than prioritizing volume in 2025, Bair said the company widened underwriting spreads, tightened risk guardrails, and slowed acquisition velocity. He cited unstable transaction data and market signals such as longer days on market, wider price dispersion, and growing buyer cost pressures (insurance, taxes, maintenance) that affected transaction velocity and completion rates.
Inventory actions, contract momentum, and a shift toward a multi-solution platform
Bair said Offerpad deliberately slowed acquisitions in the second half of 2025 and cleared aged inventory acquired earlier in the year, which pressured near-term Cash Offer margins but positioned the company for 2026 with “a cleaner, faster-turning portfolio.” He said aged inventory not under contract has been reduced to fewer than 60 homes, and that as of year-end, all inventory cohorts except two homes were expected to be profitable.
He also emphasized that demand remained intact despite moderated capital deployment. From November through January, signed contracts doubled (up 102%), and December signed volumes rose 71% month-over-month. As of mid-February, Offerpad had signed approximately 305 contracts, nearly matching the full fourth-quarter total of 314 with half the quarter remaining.
Management said a key learning from 2025 was that sellers were seeking “a liquidity solution,” not only a cash offer. In response, Offerpad built an “integrated conversion engine” designed to retain customers across multiple pathways, including an Offerpad Cash Offer, an external buyer cash offer through its marketplace, or a listing solution. Bair said conversion rates are improving and more customers who decline Offerpad’s cash offer are still transacting through the company’s marketplace or listing services.
Four solutions: Cash Offer, marketplace, brokerage services, and Renovate
Bair outlined Offerpad’s four solutions and how management expects each to contribute to a broader platform approach:
- Cash Offer: The core iBuying model. Bair said the company targets mid-single-digit contribution margins per home but focuses on return on deployed capital through faster capital velocity, targeting 90–120 day turn times. He characterized that model as producing 15%–20% annualized returns on deployed capital when capital is turned three to four times per year.
- Cash Offer Marketplace (Direct Plus): Routes homes to a network of professional buyers rather than deploying Offerpad’s balance sheet. Bair said Offerpad retains an average seller-paid fee of about 5% (roughly $20,000 on a $400,000 home) and that marketplace transactions increased about 60% year-over-year in 2025. The company also highlighted the hiring of Rich Ford as Chief Strategy Officer and President of Cash Offer Marketplace.
- Brokerage services: Includes HomePro, described as a premium listing service where Offerpad earns a referral fee, averaging about $4,500 per transaction in 2025. Management also discussed an agent partnership program, noting about one-third of Cash Offer requests in 2025 originated through agents, as well as a home builder program aimed at helping buyers remove sale contingencies.
- Renovate: A dual-purpose business supporting the Cash Offer model and providing a fee-based B2B renovation service. Bair said Renovate generates 20%–30% margins and produced $27 million of revenue in 2025, up about 50% year-over-year. CFO Peter Knag later cited Renovate revenue of $27.1 million for 2025.
Bair said the company’s 2026 framework “does not currently assume additional capital,” and emphasized leadership additions, including COO Chris Carpenter, as well as a board appointment of Tela Gallagher Mathias, who brings enterprise technology and generative AI experience.
Financial results, liquidity, and Q1 2026 outlook
CFO Peter Knag reported fourth-quarter revenue of $114 million with 312 homes sold, bringing full-year revenue to $568 million on 1,591 homes sold. Gross margin was 7% in the quarter and 7.4% for the full year, with gross profit of $8 million and $42 million, respectively. Adjusted EBITDA loss in the fourth quarter was $6.9 million, and Knag said that excluding one-time restructuring and other costs, underlying performance was consistent with the prior quarter.
At quarter-end, Knag said total liquidity was over $55 million, including $27 million of unrestricted cash. He added that Offerpad completed an $18 million capital raise early in the first quarter of 2026, bringing total liquidity to over $70 million.
Knag also highlighted cost reductions, stating that the company has removed more than $140 million of annualized expenses since 2022, and that the current cost base can support higher transaction volumes without proportional overhead growth. In the Q&A, Knag said operating expenses declined to $15 million in Q4 2025 from $24 million in Q4 2024.
For the first quarter of 2026, Offerpad guided to 250–300 real estate transactions across Cash Offer, the Cash Offer marketplace, and brokerage listings, with revenue of $70 million to $95 million and sequential improvement in Adjusted EBITDA. Knag described current transaction volume as a trough and said the company expects to achieve positive Adjusted EBITDA within 2026.
2026 ramp expectations, product mix, and AI applications
In response to analyst questions, Knag said Offerpad expects a “roughly linear” growth trend through 2026 as it moves from about 100 transactions per month to just above 300 per month, aligning with the goal of about 1,000 transactions per quarter as the company exits 2026. Management said the company is not providing second- and third-quarter guidance.
Asked about product mix, executives said the mix had been roughly two-thirds Cash Offer and one-third Direct Plus, but with three products now emphasized (Cash Offer, marketplace, and listing), they expect the mix to move toward a 50/50 balance between Cash Offer and marketplace over time, with month-to-month variability. Knag also noted the company plans to begin breaking out volumes for additional products in its KPI disclosures.
Bair said AI is being applied across the company, including pricing sensitivity and operational decision-making, leveraging a decade of data. He also pointed to near-term use cases such as AI voice tools for scheduling home inspections and handling customer questions, which he said could reduce labor intensity. Knag, discussing the path to profitability, emphasized that while additional expense reductions are possible, the “biggest piece” remaining is scaling transaction volume toward the company’s 1,000-per-quarter target.
On a policy-related question about potential restrictions on institutional investors buying single-family homes, Bair said Offerpad owns homes short term and is aligned with a focus on affordability and homeownership. He added that for the Cash Offer Marketplace, Offerpad has diversified its buyer base across different types of cash buyers, and is monitoring the situation.
About Offerpad Solutions (NYSE:OPAD)
Offerpad Solutions, Inc, listed on the NYSE under the ticker OPAD, is a technology-driven real estate platform specializing in the direct purchase, renovation and resale of single-family homes. Since its founding in 2015 and headquartered in Chandler, Arizona, the company leverages proprietary data analytics and algorithms to deliver fast, all-cash offers and flexible closing timelines to homeowners in select markets across the United States.
The company’s core services include its Instant Offer program for home acquisitions, in-house renovation and repair services to prepare properties for resale, and a suite of ancillary offerings such as title and escrow, home trade-in solutions and mortgage origination through strategic partnerships.
