One-glance verdict
Undervalued
$317.34 our estimate vs market $2.25
Wall Street consensus: $12.25 (-96.1% lower than our fair-value estimate)
99% below our estimate, below the bear case
Fundamentals snapshot
Offerpad Solutions Inc.
OPAD · NCM · Real Estate · Real Estate Services
Current price
$2.25
52-week range
$0.57 - $7.05
Market cap
$10.87M
Balance sheet
Distressed
-2.49x Concerning
Net debt $80.45M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 5/10 years.
- Risk Return on equity was -128.9% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -3.2% to -10.6% over 3 years.
What this company does
Offerpad Solutions Inc.
Offerpad Solutions helps people sell their homes quickly by offering to buy them with cash. This means they primarily make money from buying and then selling houses, and the speed at which they can do this affects their profit margins (the amount of money left over after paying for costs). They also offer related services like renovations and help connect buyers and sellers, aiming to create a complete home selling experience.
How the company got here
Offerpad Solutions Inc. was founded in 2015 with the goal of simplifying the process of selling a home. The company recognized that traditional home selling could be a lengthy and stressful experience for many people. By leveraging technology, Offerpad aimed to provide a faster, more predictable way for homeowners to sell their properties. This innovative approach to real estate transactions has been the driving force behind its growth and development in the market.
What it actually does
Offerpad operates a technology-driven real estate platform designed to make buying and selling homes easier. For sellers, it offers a 'cash offer' option, allowing them to get a price for their home quickly through the company's website or app. For buyers, Offerpad provides access to a marketplace of homes, including those purchased directly from sellers. The company also offers related services to enhance the overall real estate experience for both buyers and sellers.
Cash Offer
This is Offerpad's core business where they buy homes directly from sellers. Homeowners can visit Offerpad's website or use their mobile app to receive a cash offer for their house. This segment aims to provide a quick and certain sale, bypassing the typical uncertainties and delays of the traditional market. The company then typically renovates and resells these homes, aiming to profit from the difference between the purchase price and the resale price.
Renovate
Once Offerpad acquires a home through its cash offer program, it often undertakes renovation services. This segment focuses on improving the acquired properties to make them more attractive to future buyers. By updating and repairing homes, Offerpad aims to increase their market value and appeal. This process is crucial for the company's strategy of buying low, improving, and selling high.
Other
This segment encompasses a variety of additional services that complement Offerpad's main real estate operations. It includes a 'Cash Offer Marketplace' where buyers can find homes, including those from 'Direct+' partners. Offerpad also provides brokerage services, connecting sellers with agents, and offers ancillary products like energy efficiency solutions, smart home technology, insurance, and home warranties. Furthermore, they facilitate mortgage, title insurance, and escrow services, creating a more comprehensive real estate transaction experience.
What management is betting on now
Offerpad's management is focused on expanding its technology-enabled real estate solutions platform. They are investing in enhancing their digital tools to streamline the buying and selling process further. A key priority is growing their marketplace offerings, connecting more buyers and sellers efficiently. Management also aims to strengthen their ancillary services, providing a one-stop shop for homeowners' needs and generating additional revenue streams.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$38.71M
FY2024 Q4
$29.07M
FY2025 Q1
$-11.17M
FY2025 Q2
$-13.55M
FY2025 Q3
$39.95M
FY2025 Q4
$50.50M
FY2026 Q1
$9.03M
FY2026 Q2
$-25.89M
Revenue
$77.65M
Net income
$-9.29M
Diluted EPS
-1.94
Operating cash flow
$-25.85M
Free cash flow
$-25.89M
Fetching…
Sources
Revenue
$80.08M
Net income
$-10.13M
Diluted EPS
-0.22
Operating cash flow
$9.05M
Free cash flow
$9.03M
Fetching…
Sources
Revenue
$114.12M
Net income
$-8.82M
Diluted EPS
-0.19
Operating cash flow
$50.50M
Free cash flow
$50.50M
Fetching…
Sources
Revenue
$132.68M
Net income
$-11.60M
Diluted EPS
-0.37
Operating cash flow
$39.95M
Free cash flow
$39.95M
Fetching…
Sources
Revenue
$160.31M
Net income
$-10.90M
Diluted EPS
-0.39
Operating cash flow
$-13.47M
Free cash flow
$-13.55M
Fetching…
Sources
Revenue
$160.70M
Net income
$-15.06M
Diluted EPS
-0.55
Operating cash flow
$-10.18M
Free cash flow
$-11.17M
Fetching…
Sources
Revenue
$174.27M
Net income
$-17.32M
Diluted EPS
-0.64
Operating cash flow
$33.24M
Free cash flow
$29.07M
Fetching…
Sources
Revenue
$208.07M
Net income
$-13.54M
Diluted EPS
-0.49
Operating cash flow
$39.59M
Free cash flow
$38.71M
Fetching…
Sources
Is it cheap or expensive?
Fair value $317.34 vs current price $2.25
Wall Street consensus is the average analyst price target: $12.25 (-96.1% lower than our fair-value estimate).
Our most-likely fair value is $317.34 a share — about 14,004.1% above today's price of $2.25, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $80.4M. Interest coverage -2.5x.
Net debt
$80.45M
Interest coverage
-2.49x
Offerpad Solutions Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
OPAD
BASELINE
Offerpad Solutions Inc.
Total debt $113.56M Interest coverage -2.49x This is the baseline the peer rows are being compared against.
Total debt $1.96B Interest coverage -2.11x Neither company has much profit cushion over interest right now.
Total debt $5.15B Interest coverage 2.51x This peer still has a real interest-payment cushion, while OPAD does not.
Total debt $8.59B Interest coverage 2.13x This peer still has a real interest-payment cushion, while OPAD does not.
Total debt $4.11B Interest coverage -3.13x Neither company has much profit cushion over interest right now.
What you should know
The case for and against OPAD
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 5/10 years.
Risks
-
Return on equity was -128.9% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -3.2% to -10.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-0.63x
P/B
0.29x
P/S
0.03x
EV/EBITDA
-3.03x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
7.4%
Operating margin
-10.6%
Net margin
-9.8%
ROE
-128.9%
ROA
-9.1%
Health
Liquidity and balance-sheet strength
Debt / equity
3.04x
Current ratio
1.44x
Quick ratio
0.41x
Total debt
$113.56M
Total cash
$33.12M
Growth
How the business has been compounding
Revenue TTM
$404.53M
Revenue 5Y CAGR
-27.6%
EPS TTM
-9.83
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$73.65M
Free CF TTM
$65.73M
FCF margin
16.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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