third quarter 2026
Filed Nov 2, 2026Offerpad Reports Third Quarter 2026 Results; Fee-Based Channels Reach 35% of Closings
Contribution profit after interest per real estate transaction increased 102% year over year to $12,900 and total transactions rose sequentially to 324, but revenue declined 41% year over year, Adjusted EBITDA loss widened to ($7.5M), unrestricted cash was $12.1M, and the positive Adjusted EBITDA run-rate target moved to exit Q2 2027 from exit 2026.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $78.1M | – | (41%) |
| Cost of revenueGAAP | $71.57M | – | – |
| Gross profitGAAP | $6.5M | – | (30%) |
| Gross marginGAAP | 8.3% | – | – |
| Sales, marketing and operating expensesGAAP | $8.29M | – | – |
| General and administrative expensesGAAP | $6.57M | – | – |
| Technology and development expensesGAAP | $985K | – | – |
| Total operating expensesGAAP | $15.85M | – | – |
| Loss from operationsGAAP | ($9,355) (in thousands) | – | – |
| Interest expenseGAAP | ($2,227) (in thousands) | – | – |
| Net lossGAAP | ($11.5M) | – | 1% |
| Diluted net loss per shareGAAP | ($2.30) | – | 38% |
| Weighted average common shares outstanding, dilutedGAAP | 4.98M | – | – |
| Adjusted gross profitnon-GAAP | $6.95M | – | – |
| Adjusted gross marginnon-GAAP | 8.9% | – | – |
| Contribution profitnon-GAAP | $4.99M | – | – |
| Contribution marginnon-GAAP | 6.4% | – | – |
| Contribution profit after interestnon-GAAP | $4.17M | – | – |
| Contribution margin after interestnon-GAAP | 5.3% | – | – |
| Adjusted net lossnon-GAAP | ($11,521) (in thousands) | – | – |
| Adjusted net loss marginnon-GAAP | (14.8%) | – | – |
| Adjusted EBITDAnon-GAAP | ($7.5M) | – | (65%) |
| Adjusted EBITDA marginnon-GAAP | (9.7%) | – | – |
| Homes acquiredother | 605 | – | 198% |
| Homes soldother | 210 | – | (43%) |
| Total real estate transactionsother | 324 | – | (32%) |
| Gross profit per home soldGAAP | $30,900 | – | 22% |
| Gross profit per real estate transactionGAAP | $20,000 | – | 2% |
| Contribution profit after interest per home soldnon-GAAP | $19,800 | – | 141% |
| Contribution profit after interest per real estate transactionnon-GAAP | $12,900 | – | 102% |
| Cash and cash equivalentsGAAP | $12.1M | – | (61%) |
| Real estate inventoryGAAP | $231.1M | – | – |
| Secured credit facilities and other debt, netGAAP | $197.8M | – | – |
| Revolving credit facility, netGAAP | $19.71M | – | – |
| Nine months net cash used in operating activitiesGAAP | ($159,386) (in thousands) | – | – |
| Nine months net cash used in investing activitiesGAAP | ($9) (in thousands) | – | – |
| Nine months net cash provided by financing activitiesGAAP | $145.7M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 outlook
- Revenue$100M to $120M
- NoteReal estate transactions 400 to 475
- NoteAdjusted EBITDA Improve Sequentially
- NoteOfferpad now expects to achieve a positive Adjusted EBITDA run rate as it exits Q2 2027
What drove it
- Brokerage Services and Cash Offer Marketplace represented approximately 35% of Q3 closed transactions.
- Brokerage listing signings more than doubled quarter over quarter.
- Purchases were concentrated in markets where homes were still selling at a pace that met the Company’s requirements.
- Aged homes represented 2.6% of inventory at quarter-end, below the Company’s 10% threshold.
- Contribution profit after interest per real estate transaction was approximately $12,900, near Q2 levels and about double the prior-year quarter.
Concerns
- Mortgage rates rose more than 70 basis points from mid-August to early October, putting additional pressure on housing affordability and slowing buyer demand.
- Revenue declined (41%) year over year to $78.1M and homes sold declined (43%) to 210.
- Adjusted EBITDA loss was ($7.5M), compared with ($4.6M) in Q3 2025 and ($6.2M) in Q2 2026.
- Cash and cash equivalents were $12.1M, compared with $31.0M in Q3 2025.
- The Company now expects a positive Adjusted EBITDA run rate as it exits Q2 2027, compared with its previous expectation of exiting 2026 at that level.
What to watch
- Q4 2026 real estate transactions guidance of 400 to 475.
- Q4 2026 revenue guidance of $100M to $120M.
- Whether Adjusted EBITDA improves sequentially in Q4 2026.
- Conversion of inventory into cash, as proceeds first repay associated inventory financing.
- The expected sale of inventory acquired in Q3, higher-return purchases as those homes sell, and the phased impact of cost savings.
Balance sheet and cash flow
- Unrestricted cash of $12.1 million at the end of the third quarter
- Restricted cash: $2,356 (in thousands) as of September 30, 2026
- Real estate inventory: $231,121 (in thousands) as of September 30, 2026
- Estimated $55 million of equity in inventory
- Secured credit facilities and other debt, net: $197,755 (in thousands) as of September 30, 2026
- Secured credit facilities with a related party, net: $3,429 (in thousands) as of September 30, 2026
- Revolving credit facility, net: $19,715 (in thousands) as of September 30, 2026
- Total liabilities: $246,087 (in thousands) as of September 30, 2026
- Total stockholders' equity: $28,085 (in thousands) as of September 30, 2026
- Nine months net cash used in operating activities: ($159,386) (in thousands)
- Nine months borrowings from secured credit facilities and other debt: $295,706 (in thousands)
- Nine months repayments of secured credit facilities and other debt: ($172,679) (in thousands)
- Nine months proceeds from January 2026 Offering: $18,000 (in thousands)
- Nine months proceeds from Sale Agreement offering: $1,343 (in thousands)
- Cash, cash equivalents and restricted cash at September 30, 2026: $14,462 (in thousands)
Analysis
Offerpad reported Q3 2026 revenue of $78.1M, down (41%) year over year, as homes sold declined (43%) to 210 and total real estate transactions declined (32%) to 324. Transaction activity nevertheless increased for a second consecutive quarter, from 263 in Q1 to 295 in Q2 and 324 in Q3. Brokerage Services and Cash Offer Marketplace represented approximately 35% of Q3 closed transactions, while Brokerage listing signings more than doubled quarter over quarter.
GAAP gross profit was $6.5M, down (30%) year over year, and gross margin was 8.3%, versus 7.0% in Q3 2025 and 9.2% in Q2 2026. Unit economics remained stronger than the prior-year period: gross profit per home sold was $30,900, gross profit per transaction was $20,000, and contribution profit after interest per transaction was $12,900. The latter was up 102% year over year but below the $13.5 thousand reported for Q2 2026.
The company remained loss-making. Net loss was ($11.5M), compared with ($11.6M) in Q3 2025, while Adjusted EBITDA was a loss of ($7.5M), compared with losses of ($4.6M) in Q3 2025 and ($6.2M) in Q2 2026. Adjusted EBITDA margin was (9.7%), versus (3.4%) a year earlier and (8.0%) in the prior quarter. Management attributed the revised profitability timeline to the expected sale of Q3-acquired inventory, higher-return purchases as those homes sell, and the phased impact of cost savings.
Liquidity and inventory conversion remain central. Offerpad ended Q3 with $12.1M in unrestricted cash, estimated $55 million of equity in inventory, and $231,121 thousand of real estate inventory. Nine-month operating cash flow was ($159,386) thousand, while financing cash flow was $145,687 thousand. The company stated that proceeds from home sales first repay associated inventory financing, with remaining capital returning to the business for liquidity, operations and future purchases.
For Q4 2026, Offerpad guided to 400 to 475 real estate transactions and revenue of $100M to $120M, with Adjusted EBITDA expected to improve sequentially. The outlook assumes mortgage rates remain near current levels and does not assume rate relief. The company now expects to achieve a positive Adjusted EBITDA run rate as it exits Q2 2027, compared with its prior expectation of exiting 2026 at that level.
Management, verbatim
Mortgage rates rose more than 70 basis points from mid-August to early October, putting additional pressure on housing affordability and slowing buyer demand. As homes took longer to sell, we adjusted our acquisition criteria to require higher expected returns and became more selective about new purchases, while serving more sellers through Cash Offer Marketplace and Brokerage Services. Having multiple ways to serve homeowners gives us flexibility to keep growing transactions while maintaining capital discipline.
Brian Bair, Chairman and Chief Executive Officer
Our focus is converting inventory into cash and continuing to optimize our cost base. Together, we expect those actions to continue to support liquidity and lower the transaction volume required to reach Adjusted EBITDA breakeven.
Andrew Pieper, Interim Chief Financial Officer
Not in the filing
stated, not guessed- Segment revenue and segment profit were not reported.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- Share repurchases and dividends were not reported.
- Q4 2026 gross margin, operating expense and tax-rate guidance were not reported.
- A quantitative Q4 2026 Adjusted EBITDA guidance figure was not reported.
- A prior-outlook document was not provided for formal actual-versus-prior-guidance comparison.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.