Offerpad Solutions (NYSE:OPAD) reported second-quarter results that showed improving unit economics and a narrowing adjusted EBITDA loss, while management pointed to rising contract signings and acquisitions as indicators of higher transaction activity later in 2026.
Chairman and Chief Executive Officer Brian Bair said the company has spent the past 18 months rebuilding its operating model through tighter capital management, inventory reduction, cost cuts, expansion into additional service offerings and the use of artificial intelligence across its operations.
Offerpad completed 295 real estate transactions and generated about $78 million in revenue during the second quarter. The company had guided for 300 to 350 transactions and revenue between $80 million and $90 million.
Margins Improve as Aged Inventory Declines
Management emphasized the company’s improvement in profitability per transaction rather than top-line volume. Gross profit rose to $7.1 million from $5.6 million in the first quarter, despite slightly lower revenue. Gross margin reached 9.2%, compared with 6.9% in the prior quarter, representing Offerpad’s strongest gross margin since the third quarter of 2023.
Contribution profit after interest increased to $13,500 per real estate transaction, up 36% from a year earlier and 145% sequentially. Bair attributed the improvement in part to clearing aged inventory, which had exceeded 100 homes in 2025 but had fallen to fewer than 10 homes as of the call.
Homes classified as aged had taken roughly 339 days to sell, while non-aged homes sold during the second quarter moved in about 82 days, ahead of Offerpad’s target range of 100 to 120 days, according to Bair.
Peter, an Offerpad executive who presented the financial results, said the company’s newer inventory portfolio has stronger expected returns and that margins should also benefit from a larger proportion of fee-based services.
Offerpad’s brokerage services and Cash Offer Marketplace offerings contributed to a higher-margin revenue mix, while its Renovate business generated $4.8 million in second-quarter revenue. Peter said the third-party Renovate segment operates at approximately 20% to 25% margin, though Offerpad does not separately provide forward guidance for the business.
Cost Base Remains Largely Fixed
Quarterly operating expenses excluding property costs were $13.3 million, down from $17 million a year earlier and from more than $50 million per quarter in 2022. Bair said the company has removed more than $140 million in annualized operating expense through structural changes to its operations.
Offerpad reported an adjusted EBITDA loss of $6.2 million for the second quarter, compared with a $6.7 million loss in the first quarter. The company ended the quarter with $33.1 million in unrestricted cash, up 46% year over year, and said total liquidity exceeded $55 million when including the fair market value of inventory.
Management said approximately 90% to 95% of operating expenses are fixed, aside from certain variable costs such as third-party software platforms. Bair said the company’s current team and technology platform could support materially higher transaction volume without comparable increases in staffing.
- Second-quarter revenue: approximately $78 million
- Second-quarter real estate transactions: 295
- Gross profit: $7.1 million
- Gross margin: 9.2%
- Adjusted EBITDA loss: $6.2 million
- Unrestricted cash: $33.1 million
Signings and Acquisitions Point to Second-Half Growth
Offerpad said contract signings rose from 129 in April to 163 in May and 256 in June. The company acquired 268 homes in the second quarter, nearly 70% more than in the prior quarter, and acquired roughly 200 homes during July alone.
Bair said about 90% of signed contracts become acquisitions after roughly 30 days, while homes generally sell 90 to 120 days after acquisition. As a result, management expects recent growth in signings and acquisitions to translate into higher closings in the fourth quarter.
Peter said July signings exceeded June levels and that the company expects the positive trend to continue through August and September. Management said the improvement was not dependent on concentrated volume from institutional partners. Instead, it cited growth in both Cash Offer and brokerage services.
Bair said Offerpad is focusing its marketing and acquisitions on higher-velocity markets, including areas with desirable locations and strong school scores. He also said the company is reducing renovation work on some homes in those markets to bring listings to market more quickly.
Management also cited improvements in marketing attribution, pricing analytics, customer support and the company’s ability to direct sellers toward brokerage or other offerings when a Cash Offer is not the right fit.
Outlook Calls for Continued Sequential Improvement
For the third quarter, Offerpad expects 350 to 400 real estate transactions, revenue of $90 million to $100 million, and a narrower adjusted EBITDA loss than in the second quarter.
The company maintained its objective to exit 2026 at a run rate of roughly 1,000 quarterly transactions and positive adjusted EBITDA. Peter clarified during the question-and-answer session that both targets refer to an exit run rate rather than necessarily reporting 1,000 transactions or positive adjusted EBITDA in the fourth quarter itself.
Offerpad currently generates about one-third of its activity from fee-based services, including brokerage and marketplace products, with the remaining two-thirds coming from Cash Offer. Peter said the company expects fee-based services to increase toward about half of activity over time and ultimately become the larger share of the mix, although management did not provide a timetable.
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.
