Cash offer and renovation platform Offerpad closed the second quarter with declining revenue and improving net losses, according to an earnings report on Monday.
Offerpad experienced a 36 percent year-over-year decrease in revenue, totaling $160.3 million, as the company’s buying and selling activities slowed down. Between April 1 and June 30, Offerpad purchased 443 homes, representing a 47 percent decline from Q2 2024, when it acquired 831 homes.
Similarly, Offerpad’s selling activity decreased by 39 percent year-over-year, with only 452 homes sold.
Despite this reduced activity, the company’s gross profit per home sold increased by 7 percent year-over-year, reaching $31,400.
Offerpad’s net losses also improved, shrinking 21 percent year-over-year to $10.9 million.
Although its residential business slowed during the quarter, Offerpad Renovate continued to log solid growth.
Renovate, which launched in Q1 2024, provides business-to-business renovation services for investors, property management companies, commercial buyer groups, developers, and other similarly situated property owners. Renovate completed 315 renovations during the quarter, a 50 percent increase from Q1 2025. Those renovations generated $6.4 million in revenue — a record high for the segment, the company said.
Offerpad Chairman and CEO Brian Bair said Q2’s performance sets the stage for a complete comeback, as the company continues to recover from widespread staff cuts and delistment notices from the New York Stock Exchange.
Brian Bair
“We’re seeing strong validation of our model and the progress we’ve made,” Bair said in a prepared statement before Monday afternoon’s earnings call. “We’ve built a platform that brings together sellers, agents, cash buyers, and institutional partners, creating a true real estate solutions center. This foundation positions us to scale our asset-light services, operate with greater efficiency, and be ready to accelerate as market activity returns.”
During the earnings call, Bair and Chief Financial Officer Peter Knag offered additional insight into the company’s outlook, saying that Offerpad Renovate is expected to drive a significant amount of growth as market headwinds complicate residential segment gains.
“We continue to sign more and more customers up to the program and deliver good results on that end of it. Our efficiency is still strong, and even in this environment where a lot of the large institutions are on the sidelines or lower volumes, we’ve really focused down the pipeline a little bit with the mid to small investors that we could do renovations for,” he said. “The team has done a fantastic job there. One of the things we say all the time is that if somebody likes the renovation person that they’re using, they put a side-by-side, and we normally will beat them on the cost and efficiency.”
As far as buying and selling activity, Bair said Offerpad is focusing on pockets of opportunity in an otherwise softening market.
“As I mentioned in the last several earnings calls, we continue to see a lack of buyer excitement,” he said. “There are pockets in every market that are still working, that are decent transaction areas. And then there are definitely pockets that are not. And as I mentioned before, outlying areas next to new builds are the kind of things that we’ll be very cautious of buying. But interior homes that have good transactions, we’re still buying and focused on that type of product, and we’re still focused on spread.”
The New York Stock Exchange notified Offerpad in April that it could be delisted because its market capitalization had dropped below $50 million.
Offerpad submitted a business plan in May to the New York Stock Exchange detailing how the company intends to get back into compliance with the stock exchange’s listing standards.
The exchange accepted the plan on July 18, and Offerpad’s common stock will continue to be listed during an 18-month “cure period,” during which the company will be subject to quarterly monitoring compliance with the business plan and other continued listing standards, the company disclosed in its quarterly earnings report.
Editor’s note: This story has been updated to note that Offerpad submitted a business plan to the New York Stock Exchange which gives the company 18 months to regain compliance with the exchange’s listing standards.
