Offerpad Solutions (OPAD) AI Stock Analysis

• Market Cap: $157.51M
• Dividend Yield: N/A
• Average Volume (3M): 13.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.43
• Revenue Growth: -30.44%
• EPS Growth: 15.55%
• Country: US
• Employees: 200
• Sector: Real Estate
• Sector Strength: 55
• Industry: Real Estate - Services
• EPS (TTM): -0.39
• Shares Outstanding: 30,583,560
• 10 Day Avg. Volume: 36,217,003
• 30 Day Avg. Volume: 13,890,463
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 4.37
• Enterprise Value/Ebitda: -5.63
• 1Y Price Target: $1.15
• Price Target Upside: -77.67% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: $3.50 ▼(-32.04% Downside)

Offerpad Solutions' stock score reflects financial struggles and valuation concerns, partially offset by strategic initiatives and technical momentum. Market challenges and high interest rates remain significant risks.

Positive Factors

Asset-Light Services Expansion

OPAD is making significant progress in expanding its asset-light services, which could eventually enhance margins.

Cost Structure Improvement

Management's efforts to improve the company's cost structure are encouraging despite ongoing industry challenges.

Negative Factors

Guidance and Market Reaction

Guidance for 1Q25 was softer than expected, particularly for revenue, homes sold, and home acquisitions, sending shares ~8% lower in aftermarket trading.

Industry Challenges

The residential real estate industry continues to be impacted by the lock-in effect as interest rates remain elevated, resulting in depressed transaction volumes.

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 Solutions makes money primarily through its real estate transactions. The company generates revenue by purchasing homes directly from sellers, making necessary renovations or improvements, and then reselling these properties at a profit. Offerpad also earns money through service fees charged to sellers who choose to use its platform to sell their homes. Additional revenue streams include offering ancillary services such as home financing, title insurance, and other related real estate services. Strategic partnerships with vendors and financial institutions further support Offerpad's business model by enhancing its service offerings and expanding its market reach.

Offerpad Solutions Financial Statement Overview

Summary

Offerpad Solutions faces financial challenges with declining revenues and consistent net losses. Despite reducing debt, profitability issues and fluctuating cash flows remain concerns.

Income Statement

Offerpad Solutions shows a challenging financial trajectory, with declining revenues from 2022 to 2024 and negative net income across the years. The gross profit margin is relatively stable, but the net profit margin is negative, indicating profitability issues. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet reveals a significant decrease in stockholders' equity over recent years, which can be concerning. However, the total debt has been reduced to zero by 2024, improving the debt-to-equity ratio significantly. The equity ratio is low but shows improvement as liabilities decrease.

Cash Flow

Offerpad Solutions has shown mixed cash flow results, with positive free cash flow in 2024 compared to previous years. The operating cash flow to net income ratio is positive, indicating better cash generation relative to net losses. However, the free cash flow fluctuates year over year, showing instability in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	703.35M	918.82M	1.31B	3.95B	2.07B	1.06B
Gross Profit	52.42M	72.19M	70.18M	182.42M	207.81M	87.78M
EBITDA	-40.72M	-42.83M	-97.47M	-101.24M	23.00M	-12.49M
Net Income	-56.82M	-62.16M	-117.22M	-148.61M	6.46M	-23.12M
Balance Sheet
Total Assets	267.99M	313.05M	379.69M	825.07M	1.35B	235.87M
Cash, Cash Equivalents and Short-Term Investments	22.65M	43.02M	75.97M	97.24M	169.82M	43.94M
Total Debt	0.00	252.41M	259.50M	666.07M	1.03B	181.68M
Total Liabilities	243.45M	265.40M	277.92M	703.19M	1.10B	379.13M
Stockholders Equity	24.54M	47.65M	101.78M	121.88M	257.57M	-143.26M
Cash Flow
Free Cash Flow	43.06M	15.43M	261.50M	304.33M	-935.61M	152.01M
Operating Cash Flow	49.19M	20.83M	261.63M	305.40M	-921.92M	154.86M
Investing Cash Flow	-6.09M	-5.33M	1.99M	-1.07M	-11.65M	-2.86M
Financing Cash Flow	-89.35M	-21.82M	-323.98M	-358.47M	1.08B	-131.15M

Offerpad Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPAD, the sentiment is Positive. The current price of 5.15 is above the 20-day moving average (MA) of 2.08, above the 50-day MA of 1.75, and above the 200-day MA of 2.10, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 71.75 is Negative, neither overbought nor oversold. The STOCH value of 77.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OPAD.

Offerpad Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXPI	67 Neutral	$1.70B	―	-12.78%	1.85%	3.55%	-36.05%
Sector *	63 Neutral	$7.06B	14.07	-0.50%	6.96%	4.08%	-25.24%
OPAD	55 Neutral	$157.51M	―	-111.30%	―	-30.44%	15.55%
RDFN	55 Neutral		―		―	5.11%	-29.67%
UK	―	$2.16M	―	-83.79%	―	―	―
OPEN	53 Neutral	$3.27B	―	-41.33%	―	14.07%	27.59%
STHO	46 Neutral	$115.49M	1.44	-18.83%	―	-13.95%	37.24%

Offerpad Solutions Corporate Events

Offerpad Solutions Enters $100M Stock Sale Agreement

On August 28, 2025, Offerpad Solutions Inc. entered into an Open Market Sale Agreement with Jefferies LLC to offer and sell up to $100 million of its Class A common stock. This agreement allows for the sale of shares through various methods, including block transactions and market offerings, with Jefferies LLC acting as the sales agent. The proceeds from these sales are intended for general corporate purposes, including working capital and capital expenditures, potentially impacting the company’s operational flexibility and financial strategy.

Offerpad Solutions Announces Preliminary Q2 2025 Results

On July 23, 2025, Offerpad Solutions Inc. announced preliminary financial results for the quarter ended June 30, 2025, estimating a revenue of $160.3 million and a net loss of $10.9 million, with an Adjusted EBITDA of $4.8 million. The company also revealed it sold 452 homes during the quarter and held $22.7 million in cash and cash equivalents. Additionally, Offerpad entered into a non-binding term sheet for a proposed $15 million revolving debt facility to support its growth and strategic initiatives, although the completion of this facility remains uncertain.

Offerpad Solutions Reduces Loan Agreement with Citibank

On June 30, 2025, Offerpad Solutions Inc.’s subsidiaries and Citibank, N.A. agreed to reduce the senior facility uncommitted amount under their loan agreement from $375 million to $175 million. This adjustment reflects a significant change in Offerpad’s financial arrangements, potentially impacting its operational flexibility and financial strategy.

Offerpad Solutions Amends Citibank Agreement on June 10

On June 10, 2025, Offerpad Solutions Inc. subsidiaries entered into an amendment with Citibank that significantly reduced the senior facility committed amount from $150 million to $25 million while increasing the uncommitted amount from $250 million to $375 million. Additionally, during the company’s Annual Meeting on June 5, 2025, stockholders elected three Class I directors, ratified Deloitte & Touche LLP as the independent auditor for 2025, and approved the executive compensation plan on an advisory basis.