Online property marketplace and real estate technology company Offerpad Solutions Inc. reported a net loss of $17.3 million in the fourth quarter of 2024, which was up 12% from the $15.4 million loss it sustained in the final quarter of 2023.
Its full year 2024 net loss totaled $62.2 million, which was a 47% improvement from the prior year’s loss of $117.2 million. The number of homes acquired by the firm fell from the third quarter by 9% to 384, while its 503 homes sold declined by 18%. For the full year, it sold 2,707 homes, 26% less than in 2023.
The Tempe, Arizona-based Offerpad also recorded a 65% improvement in adjusted EBITDA for 2024, equating to a $53 million gain from the previous year. CEO Brian Bair credited the company’s progress to its balanced approach and operational efficiencies.
“Over the past two years, and specifically in recent quarters, returning to positive earnings and cash flow has been our key objective,” Bair said during the company’s fourth-quarter earnings call on Monday.
“Given the market’s trajectory, we adjusted our approach by one, diversifying revenue beyond our core cash offer business to create stability across all market cycles, two, refining acquisition strategies to ensure disciplined inventory management with strong return objectives, and finally, by optimizing our cost structure to leverage operational efficiencies and strengthen profitability.”
Offerpad’s gross profit of $21,100 per home sold in the fourth quarter was down from $27,900 in the third quarter and $23,400 in Q4 2023. For all of 2024, its gross profit per home sold of $26,700 was up 40% from $19,100 in 2023.
Projections for the first quarter of 2025 include 450 to 500 homes sold, along with $150 million to $170 million in revenue.
“We are ramping toward 1,000 acquisitions per quarter, optimizing our portfolio while improving margins,” Blair added. “To further support our growth and maximize opportunities, we are actively exploring options to raise additional capital.
“This will enhance our financial flexibility, allowing us to scale acquisitions and other business line transactions as the market strengthens and to position ourselves for long-term success. As mentioned in the previous quarter, we’ve enhanced how we deliver offers and engage with sellers.”
