Offerpad Solutions Inc. Segments Disclosure
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:
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 years ended December 31, 2025, 2024, and 2023.
The following details segment financial information for the respective periods:
|
|
Year Ended December 31, |
|
|||||||||
($ in thousands) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|||
Cash Offer |
|
$ |
534,823 |
|
|
$ |
894,730 |
|
|
$ |
1,283,958 |
|
Renovate |
|
|
27,107 |
|
|
|
18,127 |
|
|
|
12,195 |
|
Other |
|
|
5,882 |
|
|
|
5,962 |
|
|
|
18,259 |
|
Total revenue |
|
|
567,812 |
|
|
|
918,819 |
|
|
|
1,314,412 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|||
Cash Offer (1) |
|
|
503,535 |
|
|
|
830,607 |
|
|
|
1,225,073 |
|
Renovate |
|
|
21,614 |
|
|
|
14,218 |
|
|
|
9,726 |
|
Other |
|
|
620 |
|
|
|
1,799 |
|
|
|
9,432 |
|
Total cost of revenue |
|
|
525,769 |
|
|
|
846,624 |
|
|
|
1,244,231 |
|
Gross profit: |
|
|
|
|
|
|
|
|
|
|||
Cash Offer |
|
|
31,288 |
|
|
|
64,123 |
|
|
|
58,885 |
|
Renovate |
|
|
5,493 |
|
|
|
3,909 |
|
|
|
2,469 |
|
Other |
|
|
5,262 |
|
|
|
4,163 |
|
|
|
8,827 |
|
Total gross profit |
|
|
42,043 |
|
|
|
72,195 |
|
|
|
70,181 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|||
Sales, marketing and operating |
|
|
45,835 |
|
|
|
73,091 |
|
|
|
116,558 |
|
General and administrative |
|
|
26,192 |
|
|
|
40,621 |
|
|
|
50,091 |
|
Technology and development |
|
|
3,405 |
|
|
|
4,524 |
|
|
|
7,945 |
|
Total operating expenses |
|
|
75,432 |
|
|
|
118,236 |
|
|
|
174,594 |
|
Loss from operations |
|
|
(33,389 |
) |
|
|
(46,041 |
) |
|
|
(104,413 |
) |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|||
Change in fair value of warrant liabilities |
|
|
(130 |
) |
|
|
240 |
|
|
|
68 |
|
Interest expense |
|
|
(13,403 |
) |
|
|
(18,684 |
) |
|
|
(18,859 |
) |
Other income, net |
|
|
979 |
|
|
|
2,357 |
|
|
|
6,149 |
|
Total other expense |
|
|
(12,554 |
) |
|
|
(16,087 |
) |
|
|
(12,642 |
) |
Loss before income taxes |
|
$ |
(45,943 |
) |
|
$ |
(62,128 |
) |
|
$ |
(117,055 |
) |
(1) Includes real estate inventory valuation adjustments of $5.3 million, $4.5 million, and $8.9 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.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.