Key facts
- Offerpad acquired 605 homes in the third quarter, up 198% annually, and sold 210 homes, down 43%.
- Brokerage Services and Cash Offer Marketplace made up about 35% of third-quarter closed transactions, Offerpad said.
- Aged inventory was 2.6% of homes on the balance sheet, below Offerpad's 10% threshold.
- Offerpad guided to 400 to 475 transactions in the fourth quarter of 2026.
- Offerpad had about $251 million of undrawn capacity under inventory financing facilities at quarter end, mostly uncommitted.
- Offerpad said it had cut operating expenses by more than $140 million since 2022.
Offerpad told investors and analysts on a call on November 2, 2026 that it had adjusted its acquisition criteria to require higher expected returns on each property, become more selective about new purchases and widened expected margins in its underwriting. Executives said homes were taking longer to sell and that the company was steering more sellers toward its Cash Offer Marketplace and Brokerage Services instead of direct cash offers.
The company reported 324 total transactions in the third quarter of 2026, up from 295 in the prior quarter but down 32% from a year earlier. Executives attributed the shortfall to the slower housing market. Offerpad acquired 605 homes in the quarter, up 198% annually, concentrated in markets where homes were still selling at a pace that met its requirements, and sold 210 homes, down 43% annually but slightly above the second quarter.
Chief Executive Brian Bair said mortgage rates above 7% had been manageable before, but the speed of the move late in the quarter and the attention it drew changed buyer and seller behavior. "Housing affordability has become a national story," Bair said on the call, according to the account of his remarks. He said buyers weighed higher monthly payments against the possibility of a better deal while sellers faced uncertainty over how long a sale would take and at what price.
Brokerage Services and Cash Offer Marketplace accounted for about 35% of third-quarter closed transactions, and brokerage listing signings more than doubled from the second quarter of 2026, the company said. Aged inventory was 2.6% of homes on the balance sheet, below Offerpad's 10% threshold, and the company said 200 homes had sold or were under contract so far in the fourth quarter.
Revenue fell 41% to $78.1 million, while the net loss of $11.5 million improved 1% from a year earlier. Offerpad said it had identified $8 million to $10 million in additional annualized operating expense reductions, to be implemented in 2027, on top of more than $140 million in cuts since 2022. Bair said the company now expected to exit the second quarter of 2027 at a positive adjusted EBITDA run rate, later than previously planned, and that it believed positive adjusted EBITDA would come with roughly 1,000 transactions per quarter. Offerpad guided to 400 to 475 transactions in the fourth quarter of 2026.
Andrew Piper, appointed interim chief financial officer in place of Peter Knag, said Offerpad was using lenders to fund a larger share of each home's cost, leaving less of its own capital tied up. He said the company had about $251 million of undrawn capacity under its inventory financing facilities at quarter end, the majority uncommitted, and that it remained open to strategic capital partnerships.