Offerpad Solutions (OPAD) AI Stock Analysis

• Market Cap: $26.29M
• Dividend Yield: N/A
• Average Volume (3M): 36.45K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -19.80%
• EPS Growth: 21.22%
• Country: US
• Employees: 200
• Sector: Real Estate
• Sector Strength: 56
• Industry: Real Estate - Services
• EPS (TTM): -0.54
• Shares Outstanding: 27,710,358
• 10 Day Avg. Volume: 43,636
• 30 Day Avg. Volume: 36,454
• PEG Ratio: -0.11
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $1.00
• Price Target Upside: 7.53% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 47 Neutral
• Price Target: $1.00 ▲(7.53%Upside)

Offerpad Solutions' stock faces significant challenges, primarily driven by financial performance issues such as declining revenues and profitability concerns. The bearish technical indicators add to the negative outlook. While there are some positives like debt reduction and operational improvements, these are overshadowed by the broader financial and market conditions.

Positive Factors

Cost Structure

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

Service Expansion

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

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.

Market Conditions

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 (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 undergoing financial challenges, with declining revenues and consistent net losses. 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 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	794.16M	918.82M	1.31B	3.95B	2.07B	1.06B
Gross Profit	60.11M	72.19M	70.18M	182.42M	207.81M	87.78M
EBITDA	-42.05M	-42.83M	-97.47M	-101.24M	23.00M	-12.49M
Net Income	-59.70M	-62.16M	-117.22M	-148.61M	6.46M	-23.12M
Balance Sheet
Total Assets	369.73M	313.05M	379.69M	825.07M	1.35B	235.87M
Cash, Cash Equivalents and Short-Term Investments	78.53M	43.02M	75.97M	97.24M	169.82M	43.94M
Total Debt	266.14M	238.20M	259.50M	666.07M	1.03B	181.68M
Total Liabilities	281.63M	265.40M	277.92M	703.19M	1.10B	379.13M
Stockholders Equity	88.10M	47.65M	101.78M	121.88M	257.57M	-143.26M
Cash Flow
Free Cash Flow	2.22M	15.43M	261.50M	304.33M	-935.61M	152.01M
Operating Cash Flow	8.27M	20.83M	261.63M	305.40M	-921.92M	154.86M
Investing Cash Flow	-6.00M	-5.33M	1.99M	-1.07M	-11.65M	-2.86M
Financing Cash Flow	-45.12M	-21.82M	-323.98M	-358.47M	1.08B	-131.15M

Offerpad Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.93
• 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 0.93 is below the 20-day moving average (MA) of 1.00, below the 50-day MA of 1.08, and below the 200-day MA of 2.48, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 37.82 is Neutral, neither overbought nor oversold. The STOCH value of 2.98 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
EXPI	67 Neutral	$1.45B	―	-6.44%	2.16%	6.69%	-137.52%
RDFN	55 Neutral	$1.45B	―	199.35%	―	5.11%	-29.67%
STHO	54 Neutral	$102.69M	1.44	-13.37%	―	-19.38%	70.65%
Sector *	53 Neutral	$1.19B	3.25	-0.13%	8.51%	-1.86%	-126.37%
OPAD	47 Neutral	$26.29M	―	-97.62%	―	-19.80%	21.22%
OPEN	44 Neutral	$407.15M	―	-47.67%	―	2.36%	-23.60%

Offerpad Solutions Corporate Events

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.