At $17.3 milllion, Q4 2024 net loss is up 28 percent from the previous quarter, as homes acquired dipped 9 percent to 384, homes sold fell 18 percent to 503, and profits on each sale fell by 24 percent..
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Losses at Offerpad Solutions Inc. mounted in the final quarter of 2024 as the iBuyer bought and sold fewer homes than it did in Q3 — and made a smaller profit on each home sold — the company reported Monday.
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But executives at Tempe, Arizona-based Offerpad say they’ve “taken big steps toward profitability” and are preparing for an expected increase in market activity by strategically expanding Offerpad’s “buy box” in order to acquire pricier homes in selected markets.
Offerpad reported a $17.3 million Q4 2024 net loss Monday, up 28 percent from the previous quarter, as homes acquired dipped 9 percent to 384, and homes sold fell 18 percent to 503.
The gross profit on each home sold was also down 24 percent to $21,100.
Offerpad CEO Brian Bair put a positive spin on the year as a whole, highlighting Offerpad’s growing Renovate business, which generated $18 million in 2024 revenue, and improved advertising efficiencies as nearly one-third of acquisitions came through the company’s Agent Partnership Program.
Offerpad launched its “Powered by Offerpad” portal in Q2 for agents and agent teams who are part of the company’s Pro and Max agent programs. Offerpad pays agents a 3 percent referral fee on Offerpad cash sales and a listing fee of up to 1 percent on Offerpad-owned homes. Integration with Realtor.com allows homeowners in select markets to request an instant estimated cash offer through Realtor.com’s Seller’s Marketplace.
Brian Bair
“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,” Bair said in a statement.
At $62.2 million, Offerpad’s 2024 net loss was down 47 percent from the year before, when the company finished $117 million in the red. Operating expenses for the year were down 32 percent, to $118 million, aided in part by layoffs.
Offerpad Chief Financial Officer Peter Knag said that thanks to a “relentless focus on cost efficiency,” Offerpad has “taken big steps towards profitability.”
During Q1 2025, Offerpad expects to sell between 450 and 500 homes and generate $150 million to $170 million in revenue.
After posting an $11.5 million adjusted loss in Q4 2024, Offerpad expects that its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for Q1 2025 will be “slightly better.”
Shares in Offerpad, which in the last 12 months have traded for as little as $2.08 and as much as $9.30, fell 5 percent in after-hours trading following Monday’s earnings announcement.