Offerpad Solutions Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported Q3 2026 revenue of $78.1 million, a 41% decrease year-over-year from $132.7 million in Q3 2025.
• Total closed real estate transactions reached 324, down 32% from 474 in the prior-year quarter; transactions increased sequentially from 295 in Q2 2026.
• Net loss was $11.5 million, essentially flat compared to a $11.6 million loss in Q3 2025.
• Adjusted EBITDA loss was $7.5 million, widening from a $4.6 million loss in Q3 2025.
• Gross profit was $6.5 million with a gross margin of 8.3%, down from $9.3 million (7.0% margin) in Q3 2025.
• Contribution profit after interest per real estate transaction was approximately $12,900, representing a 102% increase from $6,400 in Q3 2025.
• Cash and cash equivalents ended the quarter at $12.1 million, a 61% decline from $31.0 million in Q3 2025.
• Secured credit facilities and other debt, net, increased to $197.8 million from $75.5 million as of December 31, 2025.
• Real estate inventory on the balance sheet was $231.1 million as of September 30, 2026, up from $93.8 million at the end of 2025.

Guidance and Future Outlook:

• Updated expectation for positive Adjusted EBITDA run rate is now exiting Q2 2027, delayed from the previous expectation of exiting 2026.
• Q4 2026 guidance projects 400 to 475 closed real estate transactions and revenue between $100 million and $120 million.
• Q4 2026 guidance anticipates a sequential improvement in Adjusted EBITDA.
• The outlook assumes mortgage rates remain near current levels and does not assume rate relief.
• Inventory acquired in Q3 is expected to provide a disposition pipeline through the remainder of 2026 and into early 2027.

Business Segments and Product Lines:

• Fee-based channels (Brokerage Services and Cash Offer Marketplace) represented approximately 35% of Q3 closed transactions.
• Brokerage listing signings more than doubled quarter-over-quarter.
• The company acquired 605 homes in Q3, a 198% increase from 203 homes acquired in Q3 2025.
• Homes sold in Q3 totaled 210, a 43% decrease from 367 in Q3 2025.
• Aged homes represented 2.6% of inventory at quarter-end, below the company's 10% threshold.
• The company adjusted acquisition criteria to require higher expected returns and became more selective about new purchases.

Market and Competitive Landscape:

• Mortgage rates rose more than 70 basis points from mid-August to early October, increasing pressure on housing affordability and slowing buyer demand.
• The company shifted strategy to serve more sellers through Cash Offer Marketplace and Brokerage Services to maintain transaction growth while preserving capital discipline.

Risks and Challenges:

• Rising mortgage rates and reduced housing affordability are negatively impacting buyer demand and transaction volumes.
• The company faces challenges in converting inventory to cash and optimizing its cost base to reach profitability.
• Forward-looking statements note risks related to general economic conditions, the health of the U.S. residential real estate industry, and the company's ability to manage real estate inventory and underwriting processes.

Management Commentary and Tone:

• Brian Bair, Chairman and CEO, stated that multiple service channels provide flexibility to grow transactions while maintaining capital discipline despite market headwinds.
• Andrew Pieper, Interim CFO, emphasized the focus on converting inventory into cash and optimizing the cost base to support liquidity and lower the transaction volume required for Adjusted EBITDA breakeven.
• Management expressed confidence in the phased impact of cost savings and higher-return purchases contributing to future profitability.

Other Key Points:

• The company holds an estimated $55 million of equity in inventory.
• Proceeds from home sales are used first to repay associated inventory financing, with remaining capital returning to the business for liquidity and operations.
• The company raised $18 million in proceeds from a January 2026 Offering and $1.3 million from a Sale Agreement offering during the nine months ended September 30, 2026.
• Diluted net loss per share was $2.30 in Q3 2026, an improvement from $3.71 in Q3 2025.
• Gross profit per home sold was $30,900, up 22% from $25,400 in the prior-year quarter.