Offerpad Solutions (OPAD) AI Stock Analysis

• Market Cap: $59.30M
• Dividend Yield: N/A
• Average Volume (3M): 419.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.54
• Revenue Growth: -19.80%
• EPS Growth: 21.22%
• Country: US
• Employees: 200
• Sector: Real Estate
• Sector Strength: 57
• Industry: Real Estate - Services
• EPS (TTM): -0.54
• Shares Outstanding: 27,710,358
• 10 Day Avg. Volume: 1,033,486
• 30 Day Avg. Volume: 419,982
• PEG Ratio: -0.18
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.45
• Enterprise Value/Market Cap: 0.28
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.28
• Enterprise Value/Ebitda: -0.10
• 1Y Price Target: $1.00
• Price Target Upside: -53.27% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: $2.50 ▲(16.82%Upside)

Offerpad Solutions struggles with financial performance, marked by declining revenues and consistent net losses, which are significant risk factors. Although technical analysis shows some short-term bullish momentum, overbought indicators suggest caution. Valuation metrics reflect negative earnings, while the earnings call presents a mixed outlook with some operational improvements. The reduction in loan capacity further indicates potential financial constraints.

Positive Factors

Advertising Efficiencies

OPAD's Agent Partnership Program has led to improving advertising efficiencies, growing to nearly one-third of acquisitions, and helping to improve customer acquisition cost (CAC) by more than 45% y/y.

Asset-Light Services

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

Cost Structure

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

Negative Factors

Financial Guidance

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.

Inventory Management

Exiting 4Q, 22% of OPAD's inventory had been owned for over 180 days and not under contract for resale.

Offerpad Solutions Business Overview & Revenue Model

Company Description

Offerpad Solutions (OPAD) is a technology-enabled real estate company that operates in the United States. The company focuses on providing a streamlined and convenient home buying and selling experience through its digital platform. Offerpad's core services include direct home buying and selling, allowing homeowners to receive competitive cash offers for their properties, and assisting buyers in finding and purchasing homes through its real estate solutions.

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 is facing financial difficulties, with declining revenues, consistent net losses, and fluctuating cash flows. While there is progress in reducing debt, the company needs to address profitability and stabilize its cash flows to improve financial health. The real estate market's volatility further adds to potential risks.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	918.82M	1.31B	3.95B	2.07B	1.06B
Gross Profit	72.19M	70.18M	182.42M	207.81M	87.78M
EBITDA	-42.83M	-97.47M	-101.24M	23.00M	-12.49M
Net Income	-62.16M	-117.22M	-148.61M	6.46M	-23.12M
Balance Sheet
Total Assets	313.05M	379.69M	825.07M	1.35B	235.87M
Cash, Cash Equivalents and Short-Term Investments	43.02M	75.97M	97.24M	169.82M	43.94M
Total Debt	238.20M	259.50M	666.07M	1.03B	181.68M
Total Liabilities	265.40M	277.92M	703.19M	1.10B	379.13M
Stockholders Equity	47.65M	101.78M	121.88M	257.57M	-143.26M
Cash Flow
Free Cash Flow	15.43M	261.50M	304.33M	-935.61M	152.01M
Operating Cash Flow	20.83M	261.63M	305.40M	-921.92M	154.86M
Investing Cash Flow	-5.33M	1.99M	-1.07M	-11.65M	-2.86M
Financing Cash Flow	-21.82M	-323.98M	-358.47M	1.08B	-131.15M

Offerpad Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 2.14 is above the 20-day moving average (MA) of 1.34, above the 50-day MA of 1.16, and below the 200-day MA of 2.28, indicating a neutral trend. The MACD of 0.27 indicates Negative momentum. The RSI at 75.80 is Negative, neither overbought nor oversold. The STOCH value of 54.99 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	$1.55B	―	-6.44%	2.02%	6.69%	-137.52%
Sector *	63 Neutral	$6.74B	18.42	-1.93%	6.82%	4.67%	-25.44%
OPAD	55 Neutral	$59.30M	―	-97.62%	―	-19.80%	21.22%
STHO	51 Neutral	$103.63M	1.44	-13.37%	―	-19.38%	70.65%
OPEN	44 Neutral	$1.64B	―	-47.67%	―	2.36%	-23.60%

Offerpad Solutions Corporate Events

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.

The most recent analyst rating on (OPAD) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Offerpad Solutions stock, see the OPAD Stock Forecast page.

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.

The most recent analyst rating on (OPAD) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Offerpad Solutions stock, see the OPAD Stock Forecast page.

Offerpad Solutions Amends Loan Agreements with LL Funds

On May 6, 2025, Offerpad Solutions Inc. announced amendments to its loan agreements with LL Funds, impacting its financial arrangements. The Ninth Amended and Restated Loan and Security Agreement and the Fourth Amended and Restated Mezzanine Agreement revise loan maturities, reduce borrowing capacities, and amend covenants, reflecting Offerpad’s strategic alignment of its debt agreements.

The most recent analyst rating on (OPAD) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Offerpad Solutions stock, see the OPAD Stock Forecast page.

Offerpad Solutions Announces Board and Leadership Changes

Offerpad Solutions Inc. announced changes to its Board of Directors, with Sheryl Palmer resigning effective after the 2025 Annual Meeting. Donna Corley has been appointed as a Class II director and will serve on the Nominating and Audit Committees, assuming the role of chairperson of the Audit Committee. Additionally, Brian Bair will transition from a Class I to a Class III director to balance the Board’s classes. The Board will now consist of two directors in each class. Furthermore, James Grout, Senior Vice President of Finance, will resign on April 30, 2025, to pursue other opportunities.