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Offerpad Solutions
(NYSE:OPAD)
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Rating:50Neutral
Price Target:
$3.50
▼(-12.94% Downside)
Action:Reiterated
Date:08/04/26
OPAD scores in the middle primarily because financial performance is mixed: liquidity and leverage have improved (debt at $0 and positive recent free cash flow), but the company still has sustained losses and contracting revenue. Technicals are a significant drag with price below all key moving averages and negative MACD, while the earnings call was moderately supportive due to improving unit economics and guidance toward narrowing EBITDA losses. Valuation provides limited support due to a negative P/E, and the reverse stock split adds a compliance-related overhang.
Positive Factors
Improved liquidity & zero debt
Offerpad's elimination of reported debt combined with roughly $73.6M of trailing‑twelve‑month operating and free cash flow materially reduces interest burden and refinancing risk. That stronger cash generation and debt neutrality provide durable flexibility to fund operations, inventory turns, and strategic initiatives over coming quarters without immediate reliance on external credit.
Negative Factors
Sustained losses and contracting revenue
Offerpad remains unprofitable on a trailing‑twelve‑month basis with significant negative operating results and declining revenue. Persistent losses constrain retained capital, reduce reinvestment capacity, and mean the company must sustain improved unit economics and volume recovery to achieve durable profitability within months rather than quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved liquidity & zero debt
Offerpad's elimination of reported debt combined with roughly $73.6M of trailing‑twelve‑month operating and free cash flow materially reduces interest burden and refinancing risk. That stronger cash generation and debt neutrality provide durable flexibility to fund operations, inventory turns, and strategic initiatives over coming quarters without immediate reliance on external credit.
Read all positive factors
Offerpad Solutions Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue across home sales, ancillary services (title, mortgage, repairs) and fees. For Offerpad, the mix shows whether core home-flipping or add-on services drive growth and margins, and reveals sensitivity to housing prices versus recurring-service income.
Breaks down revenue across home sales, ancillary services (title, mortgage, repairs) and fees. For Offerpad, the mix shows whether core home-flipping or add-on services drive growth and margins, and reveals sensitivity to housing prices versus recurring-service income.
Data provided by:
The Fly
The FlyOfferpad Solutions (OPAD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.31M
Dividend YieldN/A
Average Volume (3M)55.12K
Price to Earnings (P/E)―
Beta (1Y)2.00
Revenue Growth-38.65%
EPS Growth43.87%
CountryUS
Employees140
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-10.24
Shares Outstanding4,731,785
10 Day Avg. Volume40,013
30 Day Avg. Volume55,117
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)1.18
Price to Sales (P/S)0.08
P/FCF Ratio0.69
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$12.25Price Target Upside204.73% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-6.43
Revenue Forecast (FY)$412.03M
Offerpad Solutions Business Overview & Revenue Model
Company Description
Offerpad Solutions Inc., operating alongside its subsidiaries, delivers a full spectrum of real estate services to homeowners throughout the United States, including the purchase, sale, rental, and refurbishment of properties. The company leverage...
How the Company Makes Money
Offerpad primarily makes money through home resale economics and transaction-related service fees. (1) Home sales revenue (core): Offerpad purchases homes directly from sellers, records the subsequent resale of those homes to retail buyers as reve...
Offerpad Solutions Earnings Call Summary
Earnings Call Date:Aug 03, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Positive
The call conveyed a materially improving operating picture: stronger unit economics (contribution profit +36% YoY, +145% QoQ), margin expansion (gross margin 9.2% vs 6.9% prior quarter), significant reduction in aged inventory, acquisition and signing momentum, and a disciplined cost base that sets up operating leverage. Near-term challenges remain — adjusted EBITDA is still negative, the company slightly missed Q2 guidance on transactions and revenue, the Cash Offer Marketplace has been slower due to institutional pullback, and additional working capital could be needed if demand accelerates. On balance the forward indicators, margin recovery, liquidity improvement, and concrete guidance to reach a ~1,000 transactions/quarter run rate and positive adjusted EBITDA by year-end mean the positives substantially outweigh the negatives.Positive Updates
Improved Unit Economics
Contribution profit after interest reached $13,500 per real estate transaction in Q2, up 36% year-over-year and up 145% quarter-over-quarter, indicating materially stronger per-transaction profitability.
Negative Updates
Slight Miss on Top-Line and Transaction Guidance
Q2 came in at 295 transactions and approximately $78 million in revenue versus guidance of 300–350 transactions and $80–90 million in revenue, a modest shortfall on both counts.
Read all updates
Q2-2026 Updates
Positive
Negative
Improved Unit Economics
Contribution profit after interest reached $13,500 per real estate transaction in Q2, up 36% year-over-year and up 145% quarter-over-quarter, indicating materially stronger per-transaction profitability.
Read all positive updates
Company Guidance
Offerpad guided to 350–400 real estate transactions and $90–100 million of revenue in Q3 with a narrower adjusted EBITDA loss versus Q2, and reiterated its full‑year objective to exit 2026 at a ~1,000‑transactions/quarter run rate and reach positive adjusted EBITDA before year‑end. For context, Q2 actuals were 295 transactions and roughly $78M revenue, with $7.1M gross profit (9.2% gross margin), contribution profit after interest of $13,500 per transaction (+36% YoY, +145% QoQ), an adjusted EBITDA loss of $6.2M (improved from $6.7M in Q1), operating expenses ex‑property of $13.3M, unrestricted cash of $33.1M (up 46% YoY) and total liquidity >$55M. Leading indicators: monthly signs rose from 129 (Apr) to 163 (May) to 256 (Jun), ~90% of contracts convert to acquisitions in ~30 days, Q2 acquisitions were 268 (≈200 in July), homes typically sell 90–120 days after acquisition (120–150 days after signing) and Q2 non‑aged homes sold in ~82 days (vs. aged homes ~339 days); aged inventory fell from >100 in 2025 to <30 by Q1 and <10 today. Other metrics: Renovate revenue was $4.8M in Q2 (third‑party margins ~20–25%), current mix is ~2/3 Cash Offer / 1/3 fee‑based services with an expected move toward ~50% fee‑based, the company removed >$140M of annualized OpEx since prior peaks, and prior peak volume reached ~3,500 transactions per quarter in 2022.Offerpad Solutions Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
55
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 404.53M | 567.81M | 918.82M | 1.31B | 3.95B | 2.07B |
| Gross Profit | 30.02M | 42.04M | 72.19M | 70.18M | 182.42M | 207.81M |
| EBITDA | -29.13M | -30.17M | -42.83M | -97.47M | -101.24M | 23.00M |
| Net Income | -39.84M | -46.38M | -62.16M | -117.22M | -148.61M | 6.46M |
Balance Sheet | ||||||
| Total Assets | 160.29M | 154.77M | 313.05M | 379.69M | 825.07M | 1.35B |
| Cash, Cash Equivalents and Short-Term Investments | 33.12M | 26.54M | 43.02M | 75.97M | 97.24M | 169.82M |
| Total Debt | 0.00 | 93.83M | 252.41M | 259.50M | 668.33M | 1.03B |
| Total Liabilities | 122.98M | 116.55M | 265.40M | 277.92M | 703.19M | 1.10B |
| Stockholders Equity | 37.31M | 38.22M | 47.65M | 101.78M | 121.88M | 257.57M |
Cash Flow | ||||||
| Free Cash Flow | 73.59M | 65.73M | 15.42M | 261.50M | 304.33M | -935.61M |
| Operating Cash Flow | 73.65M | 66.81M | 20.83M | 261.63M | 305.40M | -921.92M |
| Investing Cash Flow | -5.00K | -1.06M | -5.33M | 1.99M | -1.07M | -11.65M |
| Financing Cash Flow | -65.53M | -111.21M | -21.82M | -323.98M | -358.47M | 1.08B |
Offerpad Solutions Technical Analysis
Neutral
4.02
Price Trends
5.33
Negative
6.27
Negative
10.81
Negative
Market Momentum
-0.32
Negative
53.14
Neutral
40.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPAD, the sentiment is Neutral. The current price of 4.02 is below the 20-day moving average (MA) of 4.64, below the 50-day MA of 5.33, and below the 200-day MA of 10.81, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 53.14 is Neutral, neither overbought nor oversold. The STOCH value of 40.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OPAD.
Offerpad Solutions Risk Analysis
Offerpad Solutions disclosed 62 risk factors in its most recent earnings report. Offerpad Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Offerpad Solutions Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | $306.93M | 417.51 | 0.08% | ― | -5.43% | -93.40% | |
54 Neutral | $3.64B | -2.14 | -165.15% | ― | -23.16% | -208.85% | |
50 Neutral | $18.31M | -0.32 | -111.72% | ― | -38.65% | 43.87% | |
48 Neutral | $153.63M | 84.50 | 3.26% | ― | -5.23% | ― | |
42 Neutral | $26.41M | -1.08 | -60.55% | ― | 15.63% | 25.53% | |
41 Neutral | $2.52M | -0.40 | -82.73% | ― | ― | ― |
* Real Estate Sector Average
OPAD
Offerpad Solutions
4.61
-6.19
-57.31%
RMAX
Re/Max Holdings
9.70
1.76
22.17%
FTHM
Fathom Holdings
0.74
-0.50
-40.56%
OPEN
Opendoor Technologies
3.76
1.86
97.89%
DOUG
Douglas Elliman Inc.
1.75
-0.53
-23.25%
OMH
Ohmyhome Limited
0.12
-1.05
-89.74%
Offerpad Solutions Corporate Events
Executive/Board ChangesDelistings and Listing ChangesRegulatory Filings and ComplianceShareholder MeetingsStock Split
Offerpad Implements Reverse Stock Split Following Shareholder Approval
Neutral
Jun 9, 2026
Offerpad Solutions Inc. implemented a 1-for-10 reverse stock split of its Class A common stock, with the split taking effect after filing a certificate of amendment in Delaware on June 8, 2026, and the shares beginning to trade on a split-adjusted...
Delistings and Listing ChangesShareholder MeetingsStock Split
Offerpad Announces 1-for-10 Reverse Stock Split Approval
Negative
Jun 4, 2026
On June 3, 2026, Offerpad stockholders approved a reverse stock split of the company’s Class A common stock, after which the board set the ratio at 1-for-10, effective June 8, 2026 at 5:00 p.m. Eastern Time. Trading on a split-adjusted basis...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.