v3.25.2
Segment Reporting
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 16. Segment Reporting

We operate in the U.S. residential real estate industry and our operating segments have been determined based on the method by which our Chief Executive Officer, who is our chief operating decision maker (“CODM”), evaluates performance and allocates resources. We have five operating segments, none of which have been aggregated, and one reportable segment. The following segment reporting presentation includes our Cash Offer reportable segment and Other, which includes our four remaining operating segments, along with Offerpad corporate activities:

•
Cash Offer, in which customers can access our website or mobile application to receive a competitive cash offer range for their home within minutes and quickly close without the major inconveniences associated with traditional real estate selling.
•
Other, which includes:
o
B2B Renovate business, in which we leverage our existing logistics, operations, technology and skill-sets to provide renovation services to other businesses, allowing other companies and homeowners to utilize our renovations team to update their portfolio of homes for rent or to sell;
o
Direct+ institutional buyer program, which allows investors and single-family rental companies an opportunity to purchase homes from homeowners, matching investors with sellers;
o
HomePro, in which certified, local agents from partner brokerages meet with sellers in their home to evaluate their cash offers and listing options and assist sellers in making informed decisions about the home selling process; and
o
Agent Partnership Program, in which our partner agents can receive a referral fee for selling or selecting our cash offer, enabling customers to utilize our services in a way that best suits their home-selling situation, while also serving as a valuable resource for real estate agents.

During 2024, we revised the internal management reporting deliverables provided to our CODM and determined Cash Offer, B2B Renovate business, Direct+ institutional buyer program and Agent Partnership Program are separate operating segments. Accordingly, we have changed our presentation of the three and six months ended June 30, 2024 to reflect our revised segment reporting. Further, we launched HomePro, a new asset-light platform offering, during the second quarter of 2025 and it is included within Other in our segment reporting presentation from the date it was launched.

Our CODM evaluates performance based on operating segment gross profit and uses this measure when making decisions about the allocation of operating resources to each segment, including through the annual budget and forecasting process, along with regular budget-to-actual variance analyses.

No individual customer accounted for more than 10% of our consolidated revenue during the three and six months ended June 30, 2025 and 2024.

The following details segment financial information for the respective periods:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

($ in thousands)

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Cash Offer

 

$

152,071

 

 

$

244,880

 

 

$

305,904

 

 

$

522,725

 

Other

 

 

8,244

 

 

 

6,242

 

 

 

15,109

 

 

 

13,755

 

Total revenue

 

 

160,315

 

 

 

251,122

 

 

 

321,013

 

 

 

536,480

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Cash Offer (1)

 

 

140,914

 

 

 

225,002

 

 

 

286,649

 

 

 

482,652

 

Other

 

 

5,212

 

 

 

4,249

 

 

 

9,668

 

 

 

9,362

 

Total cost of revenue

 

 

146,126

 

 

 

229,251

 

 

 

296,317

 

 

 

492,014

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

Cash Offer

 

 

11,157

 

 

 

19,878

 

 

 

19,255

 

 

 

40,073

 

Other

 

 

3,032

 

 

 

1,993

 

 

 

5,441

 

 

 

4,393

 

Total gross profit

 

 

14,189

 

 

 

21,871

 

 

 

24,696

 

 

 

44,466

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales, marketing and operating

 

 

13,188

 

 

 

20,230

 

 

 

27,016

 

 

 

42,682

 

General and administrative

 

 

7,796

 

 

 

10,538

 

 

 

14,992

 

 

 

22,493

 

Technology and development

 

 

986

 

 

 

964

 

 

 

2,006

 

 

 

2,737

 

Total operating expenses

 

 

21,970

 

 

 

31,732

 

 

 

44,014

 

 

 

67,912

 

Loss from operations

 

 

(7,781

)

 

 

(9,861

)

 

 

(19,318

)

 

 

(23,446

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of warrant liabilities

 

 

329

 

 

 

(9

)

 

 

72

 

 

 

335

 

Interest expense

 

 

(3,665

)

 

 

(4,581

)

 

 

(7,187

)

 

 

(9,486

)

Other income, net

 

 

244

 

 

 

615

 

 

 

540

 

 

 

1,369

 

Total other expense

 

 

(3,092

)

 

 

(3,975

)

 

 

(6,575

)

 

 

(7,782

)

Loss before income taxes

 

$

(10,873

)

 

$

(13,836

)

 

$

(25,893

)

 

$

(31,228

)

(1) Includes real estate inventory valuation adjustments of $1.1 million and $0.6 million during the three months ended June 30, 2025 and 2024, respectively, and $2.8 million and $1.2 million during the six months ended June 30, 2025 and 2024, respectively.

Our CODM is not provided with, and does not review, segment assets when evaluating performance and allocating resources to our operating segments. Accordingly, segment asset information has not been provided.