Offerpad Delays Profitability Target to 2027 as Q3 Revenue Falls 41%

Offerpad Solutions Inc. pushed its target for a positive Adjusted EBITDA run rate to the end of the second quarter of 2027, as third-quarter revenue dropped 41.2% year over year to $78.069 million. Its previous target was to reach that level by the end of 2026.

Revenue for the quarter ended Sept. 30 was down from $132.681 million a year earlier. Offerpad recorded a GAAP net loss of $11.452 million, or $2.30 per diluted share, compared with a loss of $11.604 million, or $3.71 per share, in the third quarter of 2025.

The company’s non-GAAP Adjusted EBITDA loss widened to $7.540 million from $4.572 million a year earlier. Adjusted EBITDA is an earnings measure that modifies earnings before interest, taxes, depreciation and amortization through specified adjustments.

Offerpad sold 210 homes, down from 367 in the year-earlier quarter. Cash Offer revenue, which makes up the substantial majority of the company’s consolidated revenue, declined 41.2% to $72.2 million. Lower sales volume was the primary reason for that decrease. Offerpad’s platform also includes Cash Offer Marketplace, Brokerage Services and Renovate.

Closed real estate transactions fell 32% to 324 from 474 a year earlier. At Sept. 30, cash and cash equivalents totaled $12.106 million, while real estate inventory was $231.121 million. Inventory stood at $93.793 million at the end of 2025.

Offerpad Chairman and CEO Brian Bair said higher borrowing costs had squeezed affordability and damped buyer demand after mortgage rates climbed by more than 70 basis points between mid-August and early October. He said, “we adjusted our acquisition criteria to require higher expected returns.”

For the fourth quarter, Offerpad expects revenue of $100 million to $120 million and 400 to 475 closed real estate transactions. The company also expects sequential improvement in Adjusted EBITDA. Its outlook assumes mortgage rates stay near current levels and does not include rate relief.