During its Q1 2025 earnings call, iBuyer and real estate technology company Offerpad projected optimism regarding its core business despite industry headwinds, planning to increase the pace of home acquisitions.
Offerpad Chairman and CEO Brian Bair said that, after previously reducing acquisition volume in Q3 and Q4 2024, the company has made a choice to ramp up acquisitions due to promising signs in their data.
“I think we’re seeing a pretty good increase in traffic coming to us wanting to buy their home, but also from our agent partnership channel. More and more agents are bringing us their home before they hit the market for us to look at acquiring. So we’re seeing opportunities,” said Bair.
The company also announced a partnership with real estate listing and marketplace site Auction.com. Through this partnership, Offerpad’s RENOVATE program—offering expert renovation pricing and connections—will now be offered through Auction.com.
As real estate markets have generally cooled since the iBuying heyday of 2019 – 2021, the financials of Offerpad’s home-buying business showed mixed signs. The company acquired 454 homes during Q1 2025, up 18% from 384 during Q4 2024. (Though still far below the 806 homes Offerpad acquired in Q1 2024.) Profit from individual homes sold was up quarter-over-quarter by 8% ($21,100 to $22,800).
RENOVATE and Offerpad’s other asset-light services—such as its Direct Plus buyer program—were highlighted as areas of success during the call as these programs grew their revenue contribution margins. During Q1 2025, RENOVATE generated a record of $5.3 million in revenue. One goal of the Auction.com partnership is that RENOVATE will become a preferred renovation provider for buyers, developers and community institutions on Auction.com’s platform.
During the earnings call, Bair called the partnership a “meaningful step forward as we help buyers transform properties into move-in-ready homes, expand our renovation business and deliver greater value to buyers, sellers and communities across the country.”
“RENOVATE was built from the ground up to deliver quality work with speed and care, and working with Auction.com allows us to bring that expertise to more homes and more partners across the country,” added Bair.
While Offerpad’s services such as RENOVATE boosted their share of company revenue, that revenue was down overall quarter-over-quarter. Offerpad’s revenue fell 8% from Q4 2024 to Q1 2025, going from $174.3 million to $160.7 million. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell from $11.5 million to $7.8 million, dropping 32% from quarter to quarter.
Offerpad did reduce its quarterly net loss in Q1 2025, which shrunk by 13% from $17.3 million to $15.1 million. Quarterly gross profit showed little change, going from $10.6 million to $10.5 million.
Offerpad Chief Financial Officer Peter Knag described the company’s Q1 2025 financial results as “primarily reflecting the strategic reduction in acquisition pace during the middle and latter part of last year.”
Bair also acknowledged, though, that the macroeconomic trends—such as limited inventory and high mortgage rates—are directly dragging down the number of transactions. He wove the Trump administration’s repeatedly imposed-and-retracted tariffs into this narrative, noting that the tariffs have added “fresh anxiety” to consumers.
These economic trends have kept housing transactions “near historic lows,” in Bair’s words, and mean that Offerpad itself is keeping an overall cautious posture just like homebuyers are.
“These headwinds are not new. They’ve been unfolding over an extended period, but their impact is becoming even more visible across the housing sector,” said Bair, who framed the trends as ones that Offerpad has and is continuing to work within.
“We’ve maintained a strong focus on managing our top of funnel and demand for the cash offer continues to grow. Offer requests rose 33% quarter-over-quarter, and website traffic steadily increased month-over-month, showing that homeowners are actively seeking out the certainty and control we provide,” Bair said.
Kneg, noting that Offerpad has reduced operating expenses by approximately $115 million over the past two years, stated that “a relentless focus on cost efficiency (means) we’ve taken significant steps towards profitability.”
During the investor Q&A session, when responding to a question from investor Nick Jones about how industry seasonality will affect Offerpad’s acquisition pace during the rest of the year, Kneg said seasonality will impact volume “to some extent.” However, he said Offerpad expects volume will increase overall and the trend of acquiring homes becoming sold homes will continue.
“We continue to see 1,000 homes per quarter as a North Star,” said Kneg, “alongside continued cost outs and alongside growth in our asset-light services that altogether will take us towards EBITDA profitability as we move through the next few quarters.”
In the same question, Bair stressed that Offerpad is being selective in which markets to target: “Obviously, some markets are better than others. But in each market, we’re looking for pockets where we’re seeing decent activity on the market. Transaction activity that is.”
Jones mentioned having a follow-up question about private listings—a hot topic of the moment following Zillow’s banning of private listing networks in April—but ultimately did not pose the question during the call.
Following a later question about context for rising inventory and other supply-demand trends, Bair maintained that “we continue to see active inventory increase in most every market that we’re in.” Areas “that are close to either jobs or schools” were listed as ones where transactions are “still happening.”
“I think the last data that I saw, markets like Phoenix, (Arizona), have over 25,000 or 26,000 active listings right now…there’s a lot of homes and not enough buyers,” he continued.
Bair also tied growing inventory back to Offerpad’s growing leveraging of their renovation services: as housing inventory increases, so will their competition to sell.
“We’re going to make sure our house is a little more upgraded and more desirable than the next house across the street,” said Bair. “And that’s always something with where we’re at right now, that renovation, you can always really maximize some of your results on that side of it.”
Looking forward to Q2 2025, the earnings report projects (and Knag echoed on the call) that Offerpad expects to have sold between 500 to 550 homes during the quarter, and revenue will reach between $160 to $190 million.
Offerpad’s recent non-compliance issue with the New York Stock Exchange—as both the company’s market capitalization and last reported stockholders’ equity had both fallen beneath $50 million—and Offerpad’s steps to address this were not a topic of conversation during the call.
Offerpad’s stock was down around 5% at press time, back under $1 per share—the level that caused the compliance issue. Back in 2023, the company implemented a “reverse stock split” due to the same issue.
For the full Offerpad Q1 2025 earnings report, click here.