v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

Note 16. Segment Reporting

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

•
Cash Offer, in which customers can access the Company’s website or mobile application to receive a competitive cash offer for their home and quickly close without the major inconveniences associated with traditional real estate selling.
•
Renovate, in which the Company leverages its existing logistics, operations, technology and skill-sets to provide renovation services to other businesses, allowing other companies and homeowners to utilize the Company’s renovations team to update their portfolio of homes for rent or to sell.
•
Other, which includes:
o
Cash Offer Marketplace, including Direct+ partners, in which qualified homes are routed through a marketplace of third-party buyers, providing buyers with an opportunity to purchase homes within the Company’s funnel; and
o
Brokerage Services, in which sellers can select from different agent-led pathways to sell their home, including HomePro, which pairs experienced local agents with the Company’s platform, data and customer flow for guided, in-person solutions, and Agent Partnership Program, which provides an opportunity for third-party agents to present the Company’s cash offer as a potential solution for their customers.

During 2025, the Company revised its reportable segments due to changes in the composition of its operating segment financial results, following which, Renovate is a separate reportable segment. Accordingly, the Company has changed its presentation for all periods presented to reflect its revised segment reporting.

The Company’s 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 the Company’s consolidated revenue during the three months ended March 31, 2026 and 2025.

The following details segment financial information for the respective periods:

 

 

Three Months Ended March 31,

 

($ in thousands)

 

2026

 

 

2025

 

Revenue:

 

 

 

 

 

 

Cash Offer

 

$

73,499

 

 

$

153,833

 

Renovate

 

 

5,717

 

 

 

5,314

 

Other

 

 

859

 

 

 

1,551

 

Total revenue

 

 

80,075

 

 

 

160,698

 

Cost of revenue:

 

 

 

 

 

 

Cash Offer (1)

 

 

69,874

 

 

 

145,735

 

Renovate

 

 

4,536

 

 

 

4,240

 

Other

 

 

108

 

 

 

216

 

Total cost of revenue

 

 

74,518

 

 

 

150,191

 

Gross profit:

 

 

 

 

 

 

Cash Offer

 

 

3,625

 

 

 

8,098

 

Renovate

 

 

1,181

 

 

 

1,074

 

Other

 

 

751

 

 

 

1,335

 

Total gross profit

 

 

5,557

 

 

 

10,507

 

Operating expenses:

 

 

 

 

 

 

Sales, marketing and operating

 

 

7,574

 

 

 

13,828

 

General and administrative

 

 

6,127

 

 

 

7,196

 

Technology and development

 

 

886

 

 

 

1,020

 

Total operating expenses

 

 

14,587

 

 

 

22,044

 

Loss from operations

 

 

(9,030

)

 

 

(11,537

)

Other income (expense):

 

 

 

 

 

 

Change in fair value of warrant liabilities

 

 

169

 

 

 

(257

)

Interest expense

 

 

(1,617

)

 

 

(3,522

)

Other income, net

 

 

361

 

 

 

296

 

Total other expense

 

 

(1,087

)

 

 

(3,483

)

Loss before income taxes

 

$

(10,117

)

 

$

(15,020

)

(1) Includes real estate inventory valuation adjustments of $0.4 million and $1.7 million during the respective periods.

The Company’s CODM is not provided with, and does not review, segment assets when evaluating performance and allocating resources to its operating segments. Accordingly, segment asset information has not been provided.