One-glance verdict
Undervalued
$299.43 our estimate vs market $3.69
Wall Street consensus: $12.25 (-95.9% 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
$3.69
52-week range
$0.57 - $7.05
Market cap
$17.82M
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 is a real estate company that uses technology to make quick cash offers on homes, which it then renovates and sells. The company primarily makes money on the difference between what it pays for a house and what it sells it for, while also offering related services like mortgages. This business model is very sensitive to the health of the housing market, as falling home prices can shrink its profit margins (the percentage of each sale that is left as profit after all costs are paid).
How the company got here
Offerpad was founded in 2015 to change the way people sell their homes. It is known as an "iBuyer," which means it uses technology to make quick, direct cash offers to homeowners. This approach is designed to save sellers the time and hassle of traditional home sales, like showings and open houses. The company grew quickly and became a publicly traded company in 2021. After a period of unprofitability, the company has been focused on becoming more efficient and is aiming to return to profitability.
What it actually does
Offerpad provides a technology platform that makes buying and selling a house simpler. For sellers, the main service is a quick cash offer on their home, which they can request through the company's website or mobile app. This allows them to sell their home without having to list it publicly or make repairs. For buyers, Offerpad lists the homes it owns for sale, allowing them to browse and even tour the properties on their own schedule. The company also provides related services like home renovation, title insurance (a policy that protects against financial loss from defects in a property's title), and helps connect customers with mortgage services.
Cash Offer
This is Offerpad's primary business and makes up the vast majority of its revenue. The company directly buys homes from sellers for cash, using its own technology to determine a price. For this convenience, Offerpad charges the seller a service fee, which is a percentage of the sale price. After buying the home, Offerpad will often do some light renovations and then sell it on the open market, aiming to make a profit on the sale.
Renovate
This part of the business focuses on home renovation services. The company uses its expertise in fixing up the homes it buys to offer renovation services to other businesses. For example, another company that owns a large portfolio of rental homes could hire Offerpad to handle all the repairs and updates needed on those properties. This segment is a smaller but growing part of Offerpad's overall business.
Other
This segment includes a variety of services that support home sellers and buyers. It includes a marketplace that connects home sellers with other potential buyers, like institutional investors. It also includes traditional brokerage services, where an agent helps a seller list their home on the market. This part of the company generates a small portion of total revenue and also includes partnerships with real estate agents and other ancillary (additional) services.
What management is betting on now
Management is focused on returning the company to profitability by carefully managing how many homes it buys and by improving its technology. They are expanding their services to give customers more choices, whether it's a quick cash offer, help with renovations, or a traditional home listing. The company is also heavily investing in its artificial intelligence (AI) capabilities to make more accurate home pricing decisions and operate more efficiently. The goal is to handle a larger number of transactions per quarter while keeping costs low, which they believe will lead to sustained profitability.
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
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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 $299.43 vs current price $3.69
Wall Street consensus is the average analyst price target: $12.25 (-95.9% lower than our fair-value estimate).
Our most-likely fair value is $299.43 a share — about 8,020.1% above today's price of $3.69, 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. is healthier than 0 of 1 peers on balance-sheet leverage.
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.
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)
—
Forward P/E
-1.04x
P/B
0.48x
P/S
0.04x
EV/EBITDA
-3.24x
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
-9.75
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
—
Payout ratio
0.0%
Last ex-div date
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