Offerpad Solutions (OPAD) AI Stock Analysis

• Market Cap: $48.15M
• Dividend Yield: N/A
• Average Volume (3M): 6.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: -36.25%
• EPS Growth: 11.92%
• Country: US
• Employees: 200
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -0.34
• Shares Outstanding: 47,210,648
• 10 Day Avg. Volume: 2,486,681
• 30 Day Avg. Volume: 6,269,766
• PEG Ratio: 0.03
• Price to Book (P/B): 1.64
• Price to Sales (P/S): 0.09
• P/FCF Ratio: 5.06
• Enterprise Value/Market Cap: -0.04
• Enterprise Value/Revenue: >-0.01
• Enterprise Value/Gross Profit: -0.04
• Enterprise Value/Ebitda: 0.05
• 1Y Price Target: $2.63
• Price Target Upside: 155.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.5
• Revenue Forecast (FY): $617.32M

• Rating: 49 Neutral
• Price Target: $1.00 ▼(-2.91% Downside)

OPAD scores below average primarily due to ongoing losses and declining revenue, alongside weak technical momentum (price below key moving averages with negative MACD). These are partially offset by notably better balance-sheet leverage (debt reported at $0) and strong TTM free cash flow, plus an earnings-call strategy focused on cost efficiency and scaling asset-light services—though guidance remains cautious and profitability is still unproven.

Positive Factors

Improved Leverage (Debt-Free)

Reporting total debt of $0 materially lowers solvency and interest-rate risk, giving the company durable financial flexibility to fund operations, pursue asset-light initiatives, and withstand housing-cycle volatility without near-term debt servicing constraints.

Positive Cash Generation

Sustained positive operating and free cash flow provides a structural cushion versus accounting losses, funds working capital and platform investments, and supports continued execution of an asset-light transition without immediate reliance on additional debt.

Shift Toward Asset-Light Services

A strategic pivot to HomePro/Direct+/Renovate plus AI-driven efficiencies and new COO hiring increases scalability and reduces capital intensity, improving long-term margin potential and lowering balance-sheet footprint versus heavy iBuying inventory models.

Negative Factors

Persistent Losses and Thin Margins

Continued multi-year net losses combined with very low gross margins constrain the firm's ability to internally fund growth or rebuild equity. Low margin economics make profitability dependent on sustained scale and structural margin improvement, which is not yet proven.

Revenue Contraction

Ongoing revenue decline erodes scale benefits and pressures fixed-cost absorption. A contracting top line makes it harder to hit stated scale targets (e.g., 1,000 transactions/quarter) and slows the path to sustainable adjusted EBITDA and operating leverage.

Capital Dilution Risk / Thin Equity Base

An $18M equity raise signals the need for fresh capital and introduces dilution risk for existing holders. Combined with relatively small shareholder equity versus assets, the company remains vulnerable to additional financing needs if cash generation or profitability stalls.

Offerpad Solutions Business Overview & Revenue Model

Company Description

Offerpad Solutions Inc., together with its subsidiaries, engages in buying, selling, renting, and renovating properties to homeowners in the United States. It operates iBuying, a real estate solutions platform for on-demand customer. The company provides customer-centric experience, which enables them to sell and buy homes online with streamlined access to ancillary services, such as mortgage and title insurance services. Offerpad Solutions Inc. was founded in 2015 and is headquartered in Chandler, Arizona.

How the Company Makes Money

Offerpad generates revenue primarily through its home buying and selling services. The company makes money by purchasing homes directly from sellers, refurbishing them, and then reselling them at a profit. This process often involves charging service fees to sellers for the convenience of instant offers and cash transactions. Additionally, Offerpad earns revenue from ancillary services such as title insurance, mortgage services, and home warranty products, which are offered to customers during the transaction process. The company may also benefit from strategic partnerships with real estate agents and service providers, enhancing their offerings and potentially increasing revenue through commissions and referrals.

Offerpad Solutions Financial Statement Overview

Summary

Financials are mixed. Positives include improved leverage (total debt reported at $0) and strong TTM operating/free cash flow (~$50M/~$44M). Offsetting this, revenue is down ~11% TTM, gross margin is thin (~7%), and the company remains loss-making (about $55M net loss) with deeply negative returns on equity, keeping profitability as the key constraint.

Income Statement

TTM (Trailing-Twelve-Months) revenue declined about 11% versus the prior period, continuing a multi-year contraction from the 2022 peak. Profitability remains weak: gross margin is low (~7%) and the company is still generating operating losses (negative operating and EBITDA margins), with a net loss of roughly $55M in TTM. A positive is that losses are not dramatically worse than 2023–2024 levels, but the business has not demonstrated a sustained return to profitability since 2021.

Balance Sheet

The balance sheet shows a sharp improvement in leverage in TTM with total debt reported at $0, a major change from the highly levered profile in 2022–2024 (debt-to-equity above ~5x in 2022 and 2024). However, equity remains relatively small (~$40M) versus the asset base (~$223M), and returns on equity are deeply negative due to continued net losses. Overall, solvency risk appears improved versus prior years, but the capital base is still thin and profitability is not supporting equity value.

Cash Flow

Cash generation is a relative bright spot in TTM: operating cash flow (~$50M) and free cash flow (~$44M) are both positive and free cash flow is up meaningfully versus the prior annual period. Free cash flow also compares favorably to the net loss (cash outperformance versus accounting earnings), suggesting working-capital and/or inventory movements are helping near-term liquidity. The key risk is volatility—cash flow has swung significantly in prior years (including very large negative operating cash flow in 2021), so consistency remains unproven.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	627.97M	918.82M	1.31B	3.95B	2.07B	1.06B
Gross Profit	44.62M	72.19M	70.18M	182.42M	207.81M	87.78M
EBITDA	-38.97M	-42.83M	-97.47M	-101.24M	23.00M	-12.49M
Net Income	-54.89M	-62.16M	-117.22M	-148.61M	6.46M	-23.12M
Balance Sheet
Total Assets	223.46M	313.05M	379.69M	825.07M	1.35B	235.87M
Cash, Cash Equivalents and Short-Term Investments	30.96M	43.02M	75.97M	97.24M	169.82M	43.94M
Total Debt	0.00	252.41M	259.50M	668.33M	1.03B	181.68M
Total Liabilities	183.61M	265.40M	277.92M	703.19M	1.10B	379.13M
Stockholders Equity	39.85M	47.65M	101.78M	121.88M	257.57M	-143.26M
Cash Flow
Free Cash Flow	44.30M	15.42M	261.50M	304.33M	-935.61M	152.01M
Operating Cash Flow	49.54M	20.83M	261.63M	305.40M	-921.92M	154.86M
Investing Cash Flow	-5.19M	-5.33M	1.99M	-1.07M	-11.65M	-2.86M
Financing Cash Flow	-69.14M	-21.82M	-323.98M	-358.47M	1.08B	-131.15M

Offerpad Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPAD, the sentiment is Negative. The current price of 1.03 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.55, and below the 200-day MA of 2.00, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 34.63 is Neutral, neither overbought nor oversold. The STOCH value of 16.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPAD.

Offerpad Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMAX	68 Neutral	$253.75M	12.67	2.87%	―	-6.06%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
DOUG	54 Neutral	$239.81M	-3.86	-41.11%	―	6.62%	30.94%
OPEN	53 Neutral	$4.91B	―	-39.33%	―	-4.45%	18.95%
FTHM	51 Neutral	$34.33M	-1.31	-43.75%	―	32.78%	36.50%
OPAD	49 Neutral	$48.15M	―	-104.99%	―	-36.25%	11.92%
OMH	45 Neutral	$23.33M	―	―	―	―	―

Offerpad Solutions Corporate Events

Offerpad Solutions Announces $18 Million Direct Stock Offering

On January 11, 2026, Offerpad Solutions Inc. entered into a securities purchase agreement to issue and sell 10,000,000 shares of its Class A common stock at $1.80 per share, for gross proceeds of $18 million before fees and expenses, under an existing shelf registration statement. The registered direct offering, for which A.G.P./Alliance Global Partners acted as exclusive placement agent, is expected to close on January 13, 2026, and includes a 60-day restriction following closing on additional common stock issuances or variable-rate transactions (subject to specified exceptions), signaling a near-term cap on equity dilution while providing fresh capital that may support the company’s ongoing operations and financing needs.

The most recent analyst rating on (OPAD) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Offerpad Solutions stock, see the OPAD Stock Forecast page.