v3.26.1
Segment Reporting
 6 Months Ended
Jun. 30, 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 connects customers with experienced agents, including both agents affiliated with the Company’s internal brokerage and independent local agents, supported by the Company’s platform, data and customer flow, 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 and six months ended June 30, 2026 and 2025.

The following details segment financial information for the respective periods:

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

($ in thousands)

 

2026

 

 

2025

 

 

2026

 

 

2025

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Cash Offer

 

$

71,745

 

 

$

152,071

 

 

$

145,244

 

 

$

305,904

 

Renovate

 

 

4,773

 

 

 

6,415

 

 

 

10,490

 

 

 

11,729

 

Other

 

 

1,135

 

 

 

1,829

 

 

 

1,994

 

 

 

3,380

 

Total revenue

 

 

77,653

 

 

 

160,315

 

 

 

157,728

 

 

 

321,013

 

Cost of revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Cash Offer (1)

 

 

66,610

 

 

 

140,914

 

 

 

136,484

 

 

 

286,649

 

Renovate

 

 

3,808

 

 

 

5,117

 

 

 

8,344

 

 

 

9,357

 

Other

 

 

118

 

 

 

95

 

 

 

226

 

 

 

311

 

Total cost of revenue

 

 

70,536

 

 

 

146,126

 

 

 

145,054

 

 

 

296,317

 

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

Cash Offer

 

 

5,135

 

 

 

11,157

 

 

 

8,760

 

 

 

19,255

 

Renovate

 

 

965

 

 

 

1,298

 

 

 

2,146

 

 

 

2,372

 

Other

 

 

1,017

 

 

 

1,734

 

 

 

1,768

 

 

 

3,069

 

Total gross profit

 

 

7,117

 

 

 

14,189

 

 

 

12,674

 

 

 

24,696

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Sales, marketing and operating

 

 

7,622

 

 

 

13,188

 

 

 

15,196

 

 

 

27,016

 

General and administrative

 

 

6,780

 

 

 

7,796

 

 

 

12,907

 

 

 

14,992

 

Technology and development

 

 

954

 

 

 

986

 

 

 

1,840

 

 

 

2,006

 

Total operating expenses

 

 

15,356

 

 

 

21,970

 

 

 

29,943

 

 

 

44,014

 

Loss from operations

 

 

(8,239

)

 

 

(7,781

)

 

 

(17,269

)

 

 

(19,318

)

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Change in fair value of warrant liabilities

 

 

123

 

 

 

329

 

 

 

292

 

 

 

72

 

Interest expense

 

 

(1,387

)

 

 

(3,665

)

 

 

(3,004

)

 

 

(7,187

)

Other income, net

 

 

231

 

 

 

244

 

 

 

592

 

 

 

540

 

Total other expense

 

 

(1,033

)

 

 

(3,092

)

 

 

(2,120

)

 

 

(6,575

)

Loss before income taxes

 

$

(9,272

)

 

$

(10,873

)

 

$

(19,389

)

 

$

(25,893

)

(1) Includes real estate inventory valuation adjustments of $0.3 million and $1.1 million during three months ended June 30, 2026 and 2025, respectively, and $0.7 million and $2.8 million during the six months ended June 30, 2026 and 2025, respectively.

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.