--- title: "Offerpad Solutions | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 80.08 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/284829125.md" datetime: "2026-04-30T20:19:29.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284829125.md) - [en](https://longbridge.com/en/news/284829125.md) - [zh-HK](https://longbridge.com/zh-HK/news/284829125.md) --- # Offerpad Solutions | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 80.08 M Revenue: As of FY2026 Q1, the actual value is USD 80.08 M, missing the estimate of USD 86.25 M. EPS: As of FY2026 Q1, the actual value is USD -0.22. EBIT: As of FY2026 Q1, the actual value is USD -7.774 M. #### Segment Revenue Offerpad Solutions Inc.’s consolidated revenue decreased by $80.6 million, or 50.2%, to $80.1 million for the three months ended March 31, 2026, compared to $160.7 million for the same period in 2025. - **Cash Offer Segment**: Revenue decreased by $80.3 million, or 52.2%, to $73.5 million for the three months ended March 31, 2026, from $153.8 million in the prior year period, primarily due to lower sales volumes (211 homes sold in 2026 vs. 460 in 2025, a 54.1% decrease). The average resale home price increased from $340,000 in 2025 to $356,000 in 2026, driven by a shift in the mix of homes sold in higher median price point markets. - **Renovate Segment**: Revenue increased by $0.4 million, or 7.6%, to $5.7 million for the three months ended March 31, 2026, from $5.3 million in the prior year, mainly due to higher renovation volumes (403 projects completed in 2026 vs. 209 in 2025, a 92.8% increase). This was partially offset by a decrease in the average renovation transaction value from $25,400 in 2025 to $14,200 in 2026. - **Other Segment**: Revenue decreased by $0.7 million, or 44.6%, to $0.9 million for the three months ended March 31, 2026, from $1.6 million in the prior year, primarily due to the transition from historical listing services to agent-led pathways in Brokerage Services. #### Operational Metrics - **Gross Profit**: Consolidated gross profit decreased to $5.6 million for the three months ended March 31, 2026, from $10.5 million for the same period in 2025, a decrease of 47.1%. The consolidated gross profit margin was 6.9% in 2026, up from 6.5% in 2025. - Cash Offer gross profit margin was 4.9% in 2026, down from 5.3% in 2025, mainly due to a higher average real estate inventory holding period, partially offset by a decrease in real estate inventory valuation adjustment from $1.7 million in 2025 to $0.4 million in 2026. - Renovate gross profit margin was 20.7% in 2026, up from 20.2% in 2025, due to a shift in the mix of renovation projects and associated fees. - Other gross profit margin was 87.4% in 2026, up from 86.1% in 2025, primarily due to a shift in product mix towards higher margin offerings like the Cash Offer Marketplace. - **Operating Expenses**: Total operating expenses decreased by $7.5 million, or 33.8%, to $14.6 million for the three months ended March 31, 2026, from $22.0 million in 2025. - Sales, marketing and operating expenses decreased by $6.3 million, or 45.2%, to $7.6 million, primarily due to decreased sales volumes, lower average employee headcount, and a $1.1 million decrease in advertising expense. - General and administrative expenses decreased by $1.1 million, or 14.9%, to $6.1 million, mainly due to reduced average employee headcount and lower lender fees, partially offset by increased legal and professional obligations. - Technology and development expenses decreased by $0.1 million, or 13.1%, to $0.9 million, due to lower software subscription and third-party consulting fees. - **Loss from Operations**: Loss from operations improved to -$9.0 million for the three months ended March 31, 2026, from -$11.5 million in 2025. - **Net Loss**: Net loss improved to -$10.1 million for the three months ended March 31, 2026, from -$15.1 million in 2025. - **Real Estate Inventory**: Real estate inventory was $74.7 million as of March 31, 2026, compared to $93.8 million as of December 31, 2025. - Homes preparing for and under renovation: $19.8 million (March 31, 2026) vs. $11.3 million (December 31, 2025). - Homes listed for sale: $33.6 million (March 31, 2026) vs. $62.6 million (December 31, 2025). - Homes under contract to sell: $21.3 million (March 31, 2026) vs. $19.9 million (December 31, 2025). - **Average Holding Period**: The average holding period of homes sold was approximately 195 days for the first quarter of 2026, which is higher than historical norms. #### Cash Flow - **Net Cash Provided by (Used in) Operating Activities**: Net cash provided by operating activities was $9.0 million for the three months ended March 31, 2026, compared to net cash used in operating activities of -$10.2 million for the same period in 2025, primarily driven by an $18.7 million decrease in real estate inventory in 2026. - **Net Cash Used in Investing Activities**: Net cash used in investing activities was -$0.002 million for the three months ended March 31, 2026, compared to -$1.0 million for the same period in 2025, primarily related to purchases of property and equipment. - **Net Cash Provided by (Used in) Financing Activities**: Net cash provided by financing activities was $4.4 million for the three months ended March 31, 2026, compared to net cash used in financing activities of -$26.8 million for the same period in 2025. This was mainly due to $18.0 million in gross proceeds from the January 2026 Registered Direct Offering, partially offset by a net decrease in secured credit facility and other debt funding of $12.4 million. #### Unique Metrics (Non-GAAP) - **Adjusted Gross Profit**: Increased to $5.9 million (7.4% margin) for the three months ended March 31, 2026, from $11.5 million (7.1% margin) in 2025. - **Contribution Profit**: Decreased to $3.6 million (4.5% margin) for the three months ended March 31, 2026, from $6.1 million (3.8% margin) in 2025. - **Contribution Profit After Interest**: Increased to $1.4 million (1.8% margin) for the three months ended March 31, 2026, from $0.2 million (0.1% margin) in 2025. - **Adjusted Net Loss**: -$10.3 million (-12.9% margin) for the three months ended March 31, 2026, compared to -$14.8 million (-9.2% margin) in 2025. - **Adjusted EBITDA**: -$6.7 million (-8.4% margin) for the three months ended March 31, 2026, compared to -$7.8 million (-4.9% margin) in 2025. #### Future Outlook and Strategy Offerpad Solutions Inc. anticipates that uncertainty from the Middle East conflict will continue to impact macroeconomic and mortgage interest rate environments, potentially leading to long-term effects if the conflict escalates. The company expects ongoing economic uncertainties and affordability pressures to affect consumer demand for residential real estate in the second quarter of 2026, necessitating similar pricing adjustments and a reduced home acquisition pace. Offerpad Solutions Inc. plans to balance its home acquisition pace and manage real estate inventory levels in response to market conditions, expecting its average real estate inventory holding period to decline in the second quarter of 2026 as aged inventory sells and the mix shifts towards newly acquired homes. ### Related Stocks - [OPAD.US](https://longbridge.com/en/quote/OPAD.US.md) ## Related News & Research - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md) - [Sangoma Announces Third Quarter Fiscal 2026 Results | SANG Stock News](https://longbridge.com/en/news/286317217.md) - [LOWE'S REPORTS FIRST QUARTER 2026 SALES AND EARNINGS RESULTS | LOW Stock News](https://longbridge.com/en/news/287043063.md) - [Vulnerability Exploitation Top Breach Entry Point, 2026 Industry-Wide DBIR Finds | VZ Stock News](https://longbridge.com/en/news/286918426.md)