Having unloaded almost all of its older inventory, the iBuyer ramped up home acquisitions by 131 percent, to 840 homes, in the second quarter of 2023 and expects positive adjusted earnings by year’s end.
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The numbers continue to move in the right direction for struggling iBuyer Offerpad, which trimmed losses and boosted the number of homes acquired during the second quarter after selling off nearly all of the older homes in its inventory.
Offerpad reported a $22.3 million Q2 net loss Wednesday, down 62 percent from the previous quarter and a five-fold reduction from the $121.1 million loss the company reported during the last three months of 2022.
Much of the improvement was due to a 13.5 percent gross profit margin on sales of homes Offerpad acquired after September 1, 2022. Less than 2 percent of Offerpad’s inventory was over 180 days old, allowing the iBuyer to boost Q2 acquisitions by 131 percent, to 840 homes.
Offerpad expects to see adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) by year-end, Chairman and CEO Brian Bair said.
Brian Bair
“The combination of completing the sale of our legacy inventory and the high-quality homes currently on our balance sheet provides a strong foundation for performance going forward,” Bair said in a statement. “The favorable quarter-over-quarter trends we saw during the first half of this year support our expectation to achieve positive adjusted EBITDA by year-end.”
Source: Offerpad regulatory filings.
At $230.1 million, Offerpad’s revenue was also down 62 percent from the first quarter and 79 percent from a year ago, to the lowest level since Q4 2020, as the number of homes sold continued on a downward trajectory. Offerpad sold just 650 homes during the second…