Offerpad Misses Q3 Revenue, Low Q4 Guidance

Offerpad reported Q3 FY2025 revenue of $132.7 million, down 36.2% year‑over‑year and below Wall Street expectations, with GAAP loss per share of $0.37 and a net loss of $11.6 million. Management guided Q4 revenue of roughly $100–125 million (midpoint $112.5M), forecasted 300–350 homes sold next quarter, and reiterated a goal of about 1,000 transactions per quarter and >50% asset‑light volume by 2026. In Q3 Offerpad sold 367 homes, purchased 203, ended with roughly 498 homes in inventory, generated $9.3 million of gross profit (about a 7% gross margin), saw operating margin near -5.1% and narrowed adjusted EBITDA loss to $4.6 million. The company reported significant expense reductions (operating expenses down ~37% YoY excluding property costs), improved free cash flow margin to about 30.1%, held roughly $31 million of unrestricted cash, expanded Direct Plus/HomePro and institutional programs, plans AI-driven inspection/pricing deployment by year‑end, and appointed Chris Carpenter as COO. Despite these operational improvements, Offerpad said longer-term demand trends remain weak (five‑year revenue CAGR ≈ -11.6%; two‑year revenue decline ≈ -40.1%), and the stock traded lower after the earnings release.