# EDGAR Filing Document

**Accession Number:** 0001825024
**File Stem:** 0001193125-25-262768
**Filing Date:** 2025-11
**Character Count:** 209651
**Document Hash:** 7094e17bace7b35962fcf7ba88db56a8
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-25-262768.hdr.sgml**: 20251103

**ACCESSION NUMBER**: 0001193125-25-262768

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 89

**CONFORMED PERIOD OF REPORT**: 20250930

**FILED AS OF DATE**: 20251103

**DATE AS OF CHANGE**: 20251103

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Offerpad Solutions Inc.
- **CENTRAL INDEX KEY:** 0001825024
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE AGENTS & MANAGERS (FOR OTHERS) [6531]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 852800538
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39641
- **FILM NUMBER:** 251445141

**BUSINESS ADDRESS:**
- **STREET 1:** 433 S FARMER AVE
- **STREET 2:** SUITE 500
- **CITY:** TEMPE
- **STATE:** AZ
- **ZIP:** 85281
- **BUSINESS PHONE:** (844) 388-4539

**MAIL ADDRESS:**
- **STREET 1:** 433 S FARMER AVE
- **STREET 2:** SUITE 500
- **CITY:** TEMPE
- **STATE:** AZ
- **ZIP:** 85281

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Supernova Partners Acquisition Company, Inc.
- **DATE OF NAME CHANGE:** 20200916

?xml version='1.0' encoding='ASCII'? 10-Q

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

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**FORM** 10-Q

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**(Mark One)**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

**For the quarterly period ended** **September 30,** 2025

**OR**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from ______ to ______**

**Commission File Number:** 001-39641

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![img224482448_0.jpg](img224482448_0.jpg)

Offerpad Solutions Inc.

(Exact name of registrant as specified in its charter)

------

---

| | |
|:---|:---|
| Delaware | 85-2800538 |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| 433 S. Farmer Avenue**,** Suite 500**,** Tempe**,** Arizona | 85281 |
| (Address of principal executive offices) | (Zip Code) |
| **(**844**)** 388-4539 | **(**844**)** 388-4539 |
| (Registrant's telephone number, including area code) | (Registrant's telephone number, including area code) |

---

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**Securities registered pursuant to Section 12(b) of the Act:** 

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Class A common stock, $0.0001 par value per share | OPAD | The New York Stock Exchange |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller reporting company | ☒ |
| Emerging growth company | ☐ |  |  |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 27, 2025, there were 36,859,946 shares of Offerpad's Class A common stock outstanding.

------

**OFFERPAD SOLUTIONS INC.**

**FORM 10-Q**

**FOR THE QUARTER ENDED September 30, 2025**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  |  | **Page** |
| [Cautionary Note Regarding Forward-Looking Statements](#cautionary_note) | [Cautionary Note Regarding Forward-Looking Statements](#cautionary_note) | [3](#cautionary_note) |
| [PART I.](#item_1_financial_statements) | [FINANCIAL INFORMATION](#item_1_financial_statements) | [4](#part_i_financial_information) |
| [Item 1.](#item_1_financial_statements) | [Financial Statements](#item_1_financial_statements) | [4](#item_1_financial_statements) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Condensed Consolidated Balance Sheets](#balance_sheets) | [4](#balance_sheets) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Condensed Consolidated Statements of Operations](#statements_of_operations) | [5](#statements_of_operations) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Condensed Consolidated Statements of Changes in Stockholders' Equity](#statements_of_changes_in_equity) | [6](#statements_of_changes_in_equity) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Condensed Consolidated Statements of Cash Flows](#statement_of_cash_flows) | [8](#statement_of_cash_flows) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[Notes to Condensed Consolidated Financial Statements](#notes) | [9](#notes) |
| [Item 2.](#item_2_managements_discussion) | [Management's Discussion and Analysis of Financial Condition and Results of Operations](#item_2_managements_discussion) | [27](#item_2_managements_discussion) |
| [Item 3.](#item_3_quantitative_and_qualitative) | [Quantitative and Qualitative Disclosures About Market Risk](#item_3_quantitative_and_qualitative) | [43](#item_3_quantitative_and_qualitative) |
| [Item 4.](#item_4_controls_and_procedures) | [Controls and Procedures](#item_4_controls_and_procedures) | [44](#item_4_controls_and_procedures) |
| [PART II.](#part_ii_other_information) | [OTHER INFORMATION](#part_ii_other_information) | [45](#part_ii_other_information) |
| [Item 1.](#item_1_legal_proceedings) | [Legal Proceedings](#item_1_legal_proceedings) | [45](#item_1_legal_proceedings) |
| [Item 1A.](#item_1a_risk_factors) | [Risk Factors](#item_1a_risk_factors) | [45](#item_1a_risk_factors) |
| [Item 2.](#item_2_unregistered_sales_of_equity) | [Unregistered Sales of Equity Securities and Use of Proceeds](#item_2_unregistered_sales_of_equity) | [45](#item_2_unregistered_sales_of_equity) |
| [Item 3.](#item_3_defaults_upon_senior_securities) | [Defaults Upon Senior Securities](#item_3_defaults_upon_senior_securities) | [45](#item_3_defaults_upon_senior_securities) |
| [Item 4.](#item_4_mine_safety_disclosures) | [Mine Safety Disclosures](#item_4_mine_safety_disclosures) | [45](#item_4_mine_safety_disclosures) |
| [Item 5.](#item_5_other_information) | [Other Information](#item_5_other_information) | [45](#item_5_other_information) |
| [Item 6.](#item_6_exhibits) | [Exhibits](#item_6_exhibits) | [46](#item_6_exhibits) |
| [SIGNATURES](#signatures) | [SIGNATURES](#signatures) | [47](#signatures) |

---

------

**Cautionary Note Regarding Forward-Looking Statements**

This Quarterly Report on Form 10-Q includes statements that express Offerpad Solutions Inc.'s ("Offerpad," the "Company," "we," "us," and "our," and similar references) opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results and therefore are, or may be deemed to be, forward-looking statements. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "seeks," "projects," "intends," "plans," "potentially," "may," "should," or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. They may appear in a number of places throughout this Quarterly Report on Form 10-Q, including Part I, Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our future results of operations, financial condition and liquidity, real estate inventory and home acquisition pace, volume and strategy, mortgage rates, cash requirements, financing plans and borrowing capacity, our intended use of net proceeds from our issuances of equity securities and debt financing arrangements, our prospects, optimized returns, potential growth or expansion evaluations, strategies, including without limitation, regarding product and service offerings and their expected impacts, compliance with applicable laws, regulations and New York Stock Exchange ("NYSE") continued listing rules, macroeconomic trends, potential tariffs or retaliations against such tariffs, geopolitical concerns, and the markets in which Offerpad operates.

The forward-looking statements in this Quarterly Report on Form 10-Q are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to respond to general economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the health of the U.S. residential real estate industry;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to grow market share in our existing markets or any new markets we may enter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to grow effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to accurately value and manage real estate inventory, to maintain an adequate and desirable supply of real estate inventory, and to manage renovations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to successfully launch new product and service offerings, and to manage, develop and refine our technology platform;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to maintain and enhance our products and brand, and to attract customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to achieve and maintain profitability in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•the success of strategic relationships with third parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•our ability to regain compliance with NYSE Rule 802.01B, sufficiently execute our business plan, or failure to comply with other NYSE continued listing rules.

The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and other risks and uncertainties discussed in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

The forward-looking statements in this Quarterly Report on Form 10-Q are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.

You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed as exhibits to this Quarterly Report on Form 10-Q with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. These forward-looking statements speak only as of the date of this Quarterly Report on Form 10-Q.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 3

------

**PART I—FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**OFFERPAD SOLUTIONS INC.**

**Condensed Consolidated Balance Sheets**

---

| | | | |
|:---|:---|:---|:---|
|  |  | **September 30,** | **December 31,** |
| *(in thousands, except par value per share) (Unaudited)* |  | **2025** | **2024** |
| **ASSETS** |  |  |  |
| Current assets: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents |  | $30959 | $43018 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash |  | 2685 | 30608 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable |  | 7388 | 3848 |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate inventory |  | 162367 | 214174 |
| &nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets |  | 2207 | 2564 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets |  | 205606 | 294212 |
| Property and equipment, net |  | 9313 | 9127 |
| Other non-current assets |  | 8542 | 9714 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL ASSETS** | (1) | $223461 | $313053 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |  |  |
| Current liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable |  | $1912 | $1922 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued and other current liabilities |  | 10361 | 11804 |
| &nbsp;&nbsp;&nbsp;&nbsp;Secured credit facilities and other debt, net |  | 126335 | 195378 |
| &nbsp;&nbsp;&nbsp;&nbsp;Secured credit facilities and other debt - related party |  | 15828 | 41861 |
| &nbsp;&nbsp;&nbsp;&nbsp;Warrant liabilities |  | 1146 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities |  | 155582 | 250965 |
| Revolving credit facility, net |  | 14638 |  |
| Warrant liabilities |  |  | 231 |
| Other long-term liabilities |  | 13389 | 14204 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total liabilities** | (2) | 183609 | 265400 |
| Commitments and contingencies (Note 15) |  |  |  |
| Stockholders' equity: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Class A common stock, $0.0001 par value; 2,000,000 shares authorized; 34,928 and 27,379 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively |  | 3 | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Additional paid in capital |  | 537459 | 507696 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated deficit |  | (497610) | (460046) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total stockholders' equity** |  | 39852 | 47653 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** |  | $223461 | $313053 |

---

________________

(1)Our consolidated assets as of September 30, 2025 and December 31, 2024 include the following assets of certain variable interest entities ("VIEs") that can only be used to settle the liabilities of those VIEs: Restricted cash, $2,360 and $30,608; Accounts receivable, $432 and $0; Real estate inventory, $162,367 and $214,174; Prepaid expenses and other current assets, $164 and $345; Total assets of $165,323 and $245,127, respectively.

(2)Our consolidated liabilities as of September 30, 2025 and December 31, 2024 include the following liabilities for which the VIE creditors do not have recourse to Offerpad: Accounts payable, $426 and $591; Accrued and other current liabilities, $1,055 and $1,326; Secured credit facilities and other debt, net, $142,163 and $237,273; Total liabilities, $143,644 and $239,190, respectively.

The accompanying notes are an integral part of these condensed consolidated financial statements.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 4

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**OFFERPAD SOLUTIONS INC.**

**Condensed Consolidated Statements of Operations**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** | **September 30,** | **September 30,** |
| *(in thousands, except per share data) (Unaudited)* | **2025** | **2024** | **2025** | **2024** |
| **Revenue** | $132681 | $208067 | $453694 | $744547 |
| Cost of revenue | 123345 | 190927 | 419662 | 682941 |
| **Gross profit** | 9336 | 17140 | 34032 | 61606 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales, marketing and operating | 10141 | 16864 | 37157 | 59546 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 5149 | 8254 | 20141 | 30747 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology and development | 788 | 947 | 2794 | 3684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 16078 | 26065 | 60092 | 93977 |
| **Loss from operations** | (6742) | (8925) | (26060) | (32371) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | (987) | 14 | (915) | 349 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (3646) | (5114) | (10833) | (14600) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 151 | 512 | 691 | 1881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (4482) | (4588) | (11057) | (12370) |
| **Loss before income taxes** | (11224) | (13513) | (37117) | (44741) |
| Income tax expense | (380) | (24) | (447) | (93) |
| **Net loss** | $(11604) | $(13537) | $(37564) | $(44834) |
| Net loss per share, basic | $(0.37) | $(0.49) | $(1.30) | $(1.64) |
| Net loss per share, diluted | $(0.37) | $(0.49) | $(1.30) | $(1.64) |
| Weighted average common shares outstanding, basic | 31281 | 27439 | 28885 | 27388 |
| Weighted average common shares outstanding, diluted | 31281 | 27439 | 28885 | 27388 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 5

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**OFFERPAD SOLUTIONS INC.**

**Condensed Consolidated Statements of Changes in Stockholders' Equity**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Additional<br>Paid in** | **Accumulated** | **Total<br>Stockholders'** |
| *(in thousands) (Unaudited)* | **Shares** | **Amount** | **Capital** | **Deficit** | **Equity** |
| **Balance at June 30, 2025** | 27710 | $3 | $510538 | $(486006) | $24535 |
| Issuance of common stock upon exercise of stock options | 57 |  | 168 |  | 168 |
| Issuance of common stock upon vesting of restricted stock units | 8 |  | (3) |  | (3) |
| Issuance of common stock from July 2025 Offering, net | 2857 |  | 3757 |  | 3757 |
| Issuance of 2025 warrants, net |  |  | 1404 |  | 1404 |
| Issuance of common stock from Sale Agreement, net | 4296 |  | 20780 |  | 20780 |
| Stock-based compensation expense |  |  | 815 |  | 815 |
| Net loss |  |  |  | (11604) | (11604) |
| **Balance at September 30, 2025** | 34928 | $3 | $537459 | $(497610) | $39852 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Additional<br>Paid in** | **Accumulated** | **Total<br>Stockholders'** |
| *(in thousands) (Unaudited)* | **Shares** | **Amount** | **Capital** | **Deficit** | **Equity** |
| **Balance at June 30, 2024** | 27329 | $3 | $506748 | $(429184) | $77567 |
| Issuance of common stock upon exercise of stock options | 1 |  | 1 |  | 1 |
| Issuance of common stock upon vesting of restricted stock units | 31 |  | (33) |  | (33) |
| Stock-based compensation expense |  |  | 715 |  | 715 |
| Net loss |  |  |  | (13537) | (13537) |
| **Balance at September 30, 2024** | 27361 | $3 | $507431 | $(442721) | $64713 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 6

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**OFFERPAD SOLUTIONS INC.**

**Condensed Consolidated Statements of Changes in Stockholders' Equity**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Additional<br>Paid in** | **Accumulated** | **Total<br>Stockholders'** |
| *(in thousands) (Unaudited)* | **Shares** | **Amount** | **Capital** | **Deficit** | **Equity** |
| **Balance at December 31, 2024** | 27379 | $3 | $507696 | $(460046) | $47653 |
| Issuance of common stock upon exercise of stock options | 57 |  | 168 |  | 168 |
| Issuance of common stock upon vesting of restricted stock units | 339 |  | (200) |  | (200) |
| Issuance of common stock from July 2025 Offering, net | 2857 |  | 3757 |  | 3757 |
| Issuance of 2025 warrants, net |  |  | 1404 |  | 1404 |
| Issuance of common stock from Sale Agreement, net | 4296 |  | 20780 |  | 20780 |
| Stock-based compensation expense |  |  | 3854 |  | 3854 |
| Net loss |  |  |  | (37564) | (37564) |
| **Balance at September 30, 2025** | 34928 | $3 | $537459 | $(497610) | $39852 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Stock** | **Common Stock** | **Additional<br>Paid in** | **Accumulated** | **Total<br>Stockholders'** |
| *(in thousands) (Unaudited)* | **Shares** | **Amount** | **Capital** | **Deficit** | **Equity** |
| **Balance at December 31, 2023** | 27233 | $3 | $499660 | $(397887) | $101776 |
| Issuance of common stock upon exercise of stock options | 6 |  | 17 |  | 17 |
| Issuance of common stock upon vesting of restricted stock units | 122 |  | (77) |  | (77) |
| Stock-based compensation expense |  |  | 7831 |  | 7831 |
| Net loss |  |  |  | (44834) | (44834) |
| **Balance at September 30, 2024** | 27361 | $3 | $507431 | $(442721) | $64713 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 7

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**OFFERPAD SOLUTIONS INC.**

**Condensed Consolidated Statements of Cash Flows**

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended** | **Nine Months Ended** |
|  | **September 30,** | **September 30,** |
| *($ in thousands) (Unaudited)* | **2025** | **2024** |
| **Cash flows from operating activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(37564) | $(44834) |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | 712 | 464 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt financing costs | 700 | 1466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate inventory valuation adjustment | 4801 | 2016 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation | 3854 | 7831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | 915 | (349) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on disposal of property and equipment | 162 | 62 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (3540) | 4346 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real estate inventory | 47006 | 18012 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other assets | 1529 | 3920 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (10) | (2382) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued and other liabilities | (2258) | (2956) |
| **Net cash provided by (used in) operating activities** | 16307 | (12404) |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Purchases of property and equipment | (1079) | (1245) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment | 19 | 46 |
| **Net cash used in investing activities** | (1060) | (1199) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings from secured credit facilities and other debt | 360641 | 628105 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of secured credit facilities and other debt | (456293) | (635877) |
| &nbsp;&nbsp;&nbsp;&nbsp;Payment of debt financing costs | (486) | (73) |
| &nbsp;&nbsp;&nbsp;&nbsp;Borrowings on revolving credit facility | 15000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from July 2025 Offering | 6000 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance costs of July 2025 Offering | (839) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from Sale Agreement offering | 21718 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Issuance costs of Sale Agreement offering | (938) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options | 168 | 17 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for taxes related to stock-based awards | (200) | (77) |
| **Net cash used in financing activities** | (55229) | (7905) |
| **Net change in cash, cash equivalents and restricted cash** | (39982) | (21508) |
| **Cash, cash equivalents and restricted cash, beginning of period** | 73626 | 79934 |
| **Cash, cash equivalents and restricted cash, end of period** | $33644 | $58426 |
| **Reconciliation of cash, cash equivalents and restricted cash to the condensed consolidated balance sheet:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $30959 | $48504 |
| &nbsp;&nbsp;&nbsp;&nbsp;Restricted cash | 2685 | 9922 |
| **Total cash, cash equivalents and restricted cash** | $33644 | $58426 |
| **Supplemental disclosure of cash flow information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash payments for interest | $12958 | $19204 |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash payments for taxes, net of refunds received | $392 | $262 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 8

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

**Note 1. Nature of Operations and Significant Accounting Policies** 

***Description of Business***

Offerpad, dedicated to simplifying the process of buying and selling homes, is committed to providing comprehensive solutions that remove the friction from real estate. Our advanced real estate platform offers a range of services, from consumer cash offers to business-to-business ("B2B") renovation solutions and industry partnership programs, all tailored to meet the unique needs of our clients. Since 2015, we have leveraged local expertise in residential real estate alongside proprietary technology to guide homeowners at every step.

The Company is headquartered in Tempe, Arizona and operates in over 1,900 cities and towns in 27 metropolitan markets across 18 states as of September 30, 2025.

***Basis of Presentation and Interim Financial Information*** 

The accompanying unaudited interim condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP") and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and note disclosures required for annual financial statements have been condensed or excluded pursuant to GAAP and SEC rules and regulations. Accordingly, the unaudited interim condensed consolidated financial statements do not include all of the information and note disclosures required by GAAP for complete financial statements. Therefore, this information should be read in conjunction with the audited consolidated financial statements and related notes thereto included in the Company's audited consolidated financial statements as of and for the year ended December 31, 2024 included in the Company's 2024 Annual Report on Form 10-K as filed with the SEC on February 25, 2025.

The accompanying financial information reflects all adjustments which are, in the opinion of the Company's management, of a normal recurring nature and necessary for a fair presentation of the Company's financial position, results of operations and cash flows for the interim periods. Any reference in these notes to applicable guidance is meant to refer to the authoritative GAAP as found in the Accounting Standards Codification ("ASC") and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board ("FASB").

***Use of Estimates***

The preparation of the Company's condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements. Significant estimates include those related to the net realizable value of real estate inventory, among others. Actual results could differ from those estimates.

***Principles of Consolidation***

The Company's condensed consolidated financial statements include the assets, liabilities, revenues and expenses of the Company, its wholly-owned operating subsidiaries and variable interest entities where the Company is the primary beneficiary. All intercompany accounts and transactions have been eliminated in consolidation.

***Real Estate Inventory***

Real estate inventory consists of acquired homes and is stated at the lower of cost or net realizable value, with cost and net realizable value determined by the specific identification of each home. Costs include initial purchase costs and renovation costs, as well as holding costs and interest incurred during the renovation period, prior to the listing date. Selling costs, including commissions and holding costs incurred after the listing date, are expensed as incurred and included in sales, marketing and operating expenses.

The Company reviews real estate inventory for valuation adjustments on a quarterly basis, or more frequently if events or changes in circumstances indicate that the carrying value of real estate inventory may not be recoverable. The Company evaluates real estate inventory for indicators that net realizable value is lower than cost at the individual home level. The Company generally considers multiple factors in determining net realizable value for each home, including recent comparable home sale transactions in the specific area where the home is located, the residential real estate market conditions in both the local market in which the home is located and in the U.S. in general, the impact of national, regional or local economic conditions and expected selling costs. When evidence exists that the net realizable value of real estate inventory is lower than its cost, the difference is recognized as a real estate inventory valuation adjustment in cost of revenue and the related real estate inventory is adjusted to its net realizable value.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 9

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

For individual homes or portfolios of homes under contract to sell as of the real estate inventory valuation assessment date, if the carrying value exceeds the contract price less expected selling costs, the carrying value of these homes are adjusted to the contract price less expected selling costs. For all other homes, if the carrying value exceeds the expected sale price less expected selling costs, the carrying value of these homes are adjusted to the expected sale price less expected selling costs. Changes in the Company's pricing assumptions may lead to a change in the outcome of the real estate inventory valuation analysis, and actual results may differ from the Company's assumptions.

The Company recorded real estate inventory valuation adjustments of $2.0 million and $0.8 million during the three months ended September 30, 2025 and 2024, respectively, and $4.8 million and $2.0 million during the nine months ended September 30, 2025 and 2024, respectively. Refer to *Note 2. Real Estate Inventory*, for further details.

***Warrant Instruments***

The Company evaluates its financial instruments, including its outstanding warrants, to determine if such instruments should be classified as liabilities or equity.

For outstanding warrants that meet the criteria for equity classification, the Company recognizes the warrants at fair value (or relative fair value if the warrants are issued in a bundled transaction with debt and/or equity offerings). The Company does not recognize subsequent changes in fair value for equity classified warrants after the issuance date.

For outstanding warrants that do not meet the criteria for equity classification, the Company recognizes the warrants as liabilities at fair value and adjusts the warrants to fair value at each reporting period. The warrant liabilities are subject to re-measurement at each balance sheet date until exercised or expired, and any change in fair value is recognized in the Company's condensed consolidated statements of operations.

Refer to *Note 7. Warrant Liabilities* and *Note 9. Stockholders' Equity* for further details.

***Recent Accounting Standards*** 

*Income Tax Disclosures*

In December 2023, the FASB issued a new standard which is intended to improve an entity's income tax disclosures, primarily through disaggregated information about an entity's effective income tax rate reconciliation and additional disclosures about income taxes paid. The new standard is effective for annual periods beginning after December 15, 2024. Accordingly, the new standard is effective for the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, using either a prospective or retrospective approach. The Company is currently evaluating the impact that the standard will have on its condensed consolidated financial statements.

*Disaggregation of Income Statement Expenses*

In November 2024, the FASB issued a new standard which is intended to improve an entity's expense disclosures, primarily by requiring disclosure of disaggregated information about certain income statement expense line items. The new standard is effective for annual periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. Accordingly, the new standard is effective for the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2027, and subsequent interim periods, using either a prospective or retrospective approach. The Company is currently evaluating the impact that the standard will have on its condensed consolidated financial statements.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 10

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

**Note 2. Real Estate Inventory** 

The components of real estate inventory, net of applicable lower of cost or net realizable value adjustments, consist of the following as of the respective period ends:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
| *($ in thousands)* | **2025** | **2024** |
| Homes preparing for and under renovation | $17140 | $38479 |
| Homes listed for sale | 100441 | 135937 |
| Homes under contract to sell | 44786 | 39758 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Real estate inventory** | $162367 | $214174 |

---

**Note 3. Property and Equipment** 

Property and equipment consist of the following as of the respective period ends:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
| *($ in thousands)* | **2025** | **2024** |
| Leasehold improvements | $6060 | $1055 |
| Rooftop solar panel systems | 4935 | 4958 |
| Office equipment and furniture | 1284 | 687 |
| Software systems | 386 | 386 |
| Computers and equipment | 242 | 242 |
| Construction in progress |  | 5440 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Property and equipment, gross** | 12907 | 12768 |
| &nbsp;&nbsp;&nbsp;&nbsp;Less: accumulated depreciation | (3594) | (3641) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Property and equipment, net** | $9313 | $9127 |

---

Depreciation expense was $0.2 million in each of the three months ended September 30, 2025 and 2024, respectively, and $0.7 million and $0.5 million during the nine months ended September 30, 2025 and 2024, respectively.

**Note 4. Leases** 

The Company's operating lease arrangements consist of its corporate headquarters in Tempe, Arizona, and field office facilities in certain metropolitan markets in which the Company operates in the United States. These leases typically have original lease terms of 1 year to 10 years, and some leases contain multiyear renewal options. The Company does not have any finance lease arrangements.

The Company's operating lease costs are included in operating expenses in the accompanying condensed consolidated statements of operations. During the three months ended September 30, 2025 and 2024, operating lease costs were $0.4 million and $0.8 million, respectively, and variable and short-term lease costs were less than $0.1 million during each of the respective periods. During the nine months ended September 30, 2025 and 2024, operating lease costs were $1.8 million and $2.6 million, respectively, and variable and short-term lease costs were $0.1 million and less than $0.1 million, respectively.

Cash payments for amounts included in the measurement of operating lease liabilities were $0.5 million and $0.9 million during the three months ended September 30, 2025 and 2024, respectively and $1.5 million and $1.8 million during the nine months ended September 30, 2025 and 2024, respectively. During the nine months ended September 30, 2025, the Company utilized tenant incentive allowances of $0.8 million. There were no right-of-use assets obtained in exchange for new or acquired operating lease liabilities during the three and nine months ended September 30, 2025. There were no right-of-use assets obtained in exchange for new or acquired operating lease liabilities during the three months ended September 30, 2024. Right-of-use assets obtained in exchange for new or acquired operating lease liabilities were $7.9 million during the nine months ended September 30, 2024.

As of September 30, 2025 and December 31, 2024, the Company's operating leases had a weighted-average remaining lease term of 9.5 years and 9.7 years, respectively, and the weighted-average discount rate was 7.5% and 7.4% during the respective periods.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 11

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

The Company's operating lease liability maturities as of September 30, 2025 are as follows:

---

| | |
|:---|:---|
| *($ in thousands)* |  |
| Remainder of 2025 | $514 |
| 2026 | 2089 |
| 2027 | 1949 |
| 2028 | 1922 |
| 2029 | 1974 |
| 2030 | 2029 |
| Thereafter | 9834 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total future lease payments | 20311 |
| Less: Imputed interest | (5848) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total lease liabilities | $14463 |

---

The Company's operating lease right-of-use assets and operating lease liabilities, and the associated financial statement line items, are as follows as of the respective period ends:

---

| | | | |
|:---|:---|:---|:---|
|  |  | **September 30,** | **December 31,** |
| *($ in thousands)* | **Financial Statement Line Items** | **2025** | **2024** |
| Right-of-use assets | Other non-current assets | $7546 | $8580 |
| Lease liabilities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current liabilities | Accrued and other current liabilities | 1074 | 963 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-current liabilities | Other long-term liabilities | 13389 | 14204 |
| Total lease liabilities |  | $14463 | $15167 |

---

**Note 5. Accrued and Other Liabilities** 

Accrued and other current liabilities consist of the following as of the respective period ends:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
| *($ in thousands)* | **2025** | **2024** |
| Home renovation | $3469 | $3684 |
| Interest | 1119 | 1293 |
| Operating lease liabilities | 1074 | 963 |
| Legal and professional obligations | 997 | 344 |
| Payroll and other employee related expenses | 967 | 1895 |
| Marketing | 144 | 757 |
| Other | 2591 | 2868 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Accrued and other current liabilities** | $10361 | $11804 |

---

The Company incurred advertising expenses of $1.6 million and $2.2 million during the three months ended September 30, 2025 and 2024, respectively, and $6.0 million and $10.1 million during the nine months ended September 30, 2025 and 2024, respectively.

Other long-term liabilities consists of the non-current portion of our operating lease liabilities as of September 30, 2025 and December 31, 2024.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 12

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

**Note 6. Credit Facilities and Other Debt** 

The carrying value of the Company's credit facilities and other debt consists of the following as of the respective period ends:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
| *($ in thousands)* | **2025** | **2024** |
| Senior secured credit facilities with financial institutions | $75389 | $166914 |
| Senior secured credit facility with a related party | 4025 | 18329 |
| Senior secured debt - other | 51045 | 21433 |
| Mezzanine secured credit facilities with financial institutions |  | 7707 |
| Mezzanine secured credit facilities with a related party | 11803 | 23532 |
| Revolving credit facility | 15000 |  |
| Debt financing costs | (461) | (676) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total credit facilities and other debt, net** | $156801 | $237239 |

---

The following details the classification of the Company's credit facilities and other debt, as of the respective period ends:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
| *($ in thousands)* | **2025** | **2024** |
| Total credit facilities and other debt, net, current | $126335 | $195378 |
| Total credit facilities and other debt - related party, current | 15828 | 41861 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total credit facilities and other debt, net, current | 142163 | 237239 |
| Revolving credit facility, net, non-current | 14638 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Total credit facilities and other debt, net** | $156801 | $237239 |

---

The Company utilizes financing facilities consisting of senior secured credit facilities, mezzanine secured credit facilities and other senior secured borrowing arrangements to provide financing for the Company's real estate inventory purchases and renovation. Borrowings under the Company's credit facilities and other debt are classified as current liabilities on the accompanying condensed consolidated balance sheets as amounts drawn to purchase and renovate homes are required to be repaid as the related real estate inventory is sold, which is expected to be within 12 months.

Under the Company's senior secured credit facilities and mezzanine secured credit facilities, amounts can be borrowed, repaid and borrowed again during the revolving period. Any borrowings above the committed amounts are subject to the applicable lender's discretion. The borrowing capacity is generally expected to be available until the end of the applicable revolving period as reflected in the tables below. Outstanding amounts drawn under each senior secured credit facility and mezzanine secured credit facility are required to be repaid on the facility maturity date or earlier if accelerated due to an event of default or other mandatory repayment event.

The Company's senior secured credit facilities and mezzanine secured credit facilities have aggregated borrowing bases, which increase or decrease based on the cost and value of the properties financed under a given facility and the time that those properties are in the Company's possession. When the Company resells a home, the proceeds are used to reduce the corresponding outstanding balance under the related senior and mezzanine secured credit facilities. The borrowing base for a given facility may be reduced as properties age beyond certain thresholds or the performance of the properties financed under that facility declines, and any borrowing base deficiencies may be satisfied through contributions of additional properties or partial repayment of the facility.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 13

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

***Senior Secured Credit Facilities***

The following summarizes certain details related to the Company's senior secured credit facilities (in thousands, except interest rates):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Borrowing Capacity** | **Borrowing Capacity** | **Borrowing Capacity** | **Outstanding** | **Weighted-<br>Average<br>Interest** | **End of <br>Revolving / <br>Withdrawal** | **Final<br>Maturity** |
| **As of September 30, 2025** | **Committed** | **Uncommitted** | **Total** | **Amount** | **Rate** | **Period** | **Date** |
| Senior financial institution 1 | $25000 | $175000 | $200000 | $75389 | 7.11% | December 2025 | June 2026 |
| Senior financial institution 2 |  | 200000 | 200000 |  |  | January 2026 | July 2026 |
| Senior financial institution 3 |  | 150000 | 150000 |  | 7.58% | January 2026 | April 2026 |
| Related party | 25539 | 24461 | 50000 | 4025 | 9.32% | March 2025 | February 2026 |
| Senior financial institution 4 |  | 50000 | 50000 |  | 10.15% | September 2026 | March 2027 |
| &nbsp;&nbsp;**Senior secured credit facilities** | $50539 | $599461 | $650000 | $79414 |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Borrowing Capacity** | **Borrowing Capacity** | **Borrowing Capacity** | **Outstanding** | **Weighted-<br>Average<br>Interest** |
| **As of December 31, 2024** | **Committed** | **Uncommitted** | **Total** | **Amount** | **Rate** |
| Senior financial institution 1 | $150000 | $250000 | $400000 | $110109 | 7.93% |
| Senior financial institution 2 |  | 200000 | 200000 |  | 8.01% |
| Senior financial institution 3 | 100000 | 50000 | 150000 | 30941 | 8.38% |
| Related party | 30000 | 20000 | 50000 | 18329 | 10.09% |
| Senior financial institution 4 |  | 30000 | 30000 | 25864 | 9.76% |
| &nbsp;&nbsp;**Senior secured credit facilities** | $280000 | $550000 | $830000 | $185243 |  |

---

As of September 30, 2025, the Company had five senior secured credit facilities, four with separate financial institutions and one with a related party, which holds more than 5% of the Company's Class A common stock. Borrowings under the senior secured credit facilities accrue interest at a rate based on a Secured Overnight Financing Rate ("SOFR") reference rate, plus a margin which varies by facility. Each of the Company's senior secured credit facilities also have interest rate floors. The Company may also pay fees on its senior secured credit facilities, including a commitment fee and fees on certain unused portions of the committed borrowing capacity under the respective credit agreements.

Borrowings under the Company's senior secured credit facilities are collateralized by the real estate inventory financed by the senior secured credit facility. The lenders have legal recourse only to the assets securing the debt and do not have general recourse against the Company with limited exceptions. The Company has, however, provided limited non-recourse carve-out guarantees under its senior and mezzanine secured credit facilities for certain of the SPEs' obligations. Each senior secured credit facility contains eligibility requirements that govern whether a property can be financed.

During October 2025, the Company entered into a new 18-month loan and security agreement with a related party. The loan and security agreement provides for a $15.0 million senior secured credit facility, which is comprised of $7.5 million in committed borrowing capacity and $7.5 million that is uncommitted. Borrowings under such senior secured credit facility accrue interest at a rate based on a SOFR reference rate, plus a variable margin, with an interest rate floor.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 14

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**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

***Mezzanine Secured Credit Facilities***

The following summarizes certain details related to the Company's mezzanine secured credit facilities (in thousands, except interest rates):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Borrowing Capacity** | **Borrowing Capacity** | **Borrowing Capacity** | **Outstanding** | **Weighted-<br>Average<br>Interest** | **End of <br>Revolving / <br>Withdrawal** | **Final<br>Maturity** |
| **As of September 30, 2025** | **Committed** | **Uncommitted** | **Total** | **Amount** | **Rate** | **Period** | **Date** |
| Related party facility 1 | $13125 | $21875 | $35000 | $10526 | 13.00% | July 2025 | December 2026 |
| Mezzanine financial institution 1 |  | 45000 | 45000 |  |  | January 2026 | July 2026 |
| Mezzanine financial institution 2 |  | 40000 | 40000 |  | 11.58% | January 2026 | April 2026 |
| Related party facility 2 | 6811 | 15189 | 22000 | 1277 | 13.00% | March 2025 | February 2026 |
| &nbsp;&nbsp;**Mezzanine secured credit facilities** | $19936 | $122064 | $142000 | $11803 |  |  |  |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Borrowing Capacity** | **Borrowing Capacity** | **Borrowing Capacity** | **Outstanding** | **Weighted-<br>Average<br>Interest** |
| **As of December 31, 2024** | **Committed** | **Uncommitted** | **Total** | **Amount** | **Rate** |
| Related party facility 1 | $45000 | $25000 | $70000 | $18372 | &nbsp;&nbsp;13.67% |
| Mezzanine financial institution 1 |  | 45000 | 45000 |  | &nbsp;&nbsp;13.86% |
| Mezzanine financial institution 2 | 26667 | 13333 | 40000 | 7707 | &nbsp;&nbsp;12.39% |
| Related party facility 2 | 8000 | 14000 | 22000 | 5160 | &nbsp;&nbsp;13.59% |
| &nbsp;&nbsp;**Mezzanine secured credit facilities** | $79667 | $97333 | $177000 | $31239 |  |

---

As of September 30, 2025, the Company had four mezzanine secured credit facilities, two with separate financial institutions and two with a related party, which holds more than 5% of the Company's Class A common stock. Borrowings under the Company's mezzanine secured credit facilities accrue interest at a rate based on a SOFR reference rate, plus a margin which varies by facility. Each of the Company's mezzanine secured credit facilities also have interest rate floors. The Company may also pay fees on its mezzanine secured credit facilities, including a commitment fee and fees on certain unused portions of the committed borrowing capacity under the respective credit agreements.

Borrowings under the Company's mezzanine secured credit facilities are collateralized by a second lien on the real estate inventory financed by the relevant credit facility. The lenders have legal recourse only to the assets securing the debt, and do not have general recourse to Offerpad with limited exceptions.

The Company's mezzanine secured credit facilities are structurally and contractually subordinated to the related senior secured credit facilities.

***Maturities***

Certain of the Company's secured credit facilities mature within the next twelve months following the date these condensed consolidated financial statements are issued. The Company expects to enter into new financing arrangements or amend existing arrangements to meet its obligations as they come due, which the Company believes is probable based on its history of prior credit facility renewals. The Company believes its existing cash on hand, proceeds from the resale of homes, fees and commissions earned from its asset-light platform offerings, and cash from future borrowings available under each of the Company's existing credit facilities, or the entry into additional new debt financing arrangements or further issuance of equity securities, will be sufficient to meet its obligations as they become due in the ordinary course of business for at least twelve months following the date these condensed consolidated financial statements are issued.

***Covenants for Senior Secured Credit Facilities and Mezzanine Secured Credit Facilities***

The Company's secured credit facilities include customary representations and warranties, covenants and events of default. Financed properties are subject to customary eligibility criteria and concentration limits. The terms of these facilities and related financing documents require the Company to comply with a number of customary financial and other covenants, such as maintaining certain levels of liquidity, tangible net worth or leverage (ratio of debt to tangible net worth).

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 15

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**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

As of September 30, 2025, the Company was in compliance with all covenants and no event of default had occurred. At various points during the nine months ended September 30, 2025, the Company obtained temporary waivers of certain covenants under certain of its related party credit facilities. In connection with the most recent waiver obtained in July 2025, the associated revolving/withdrawal periods for each facility, as applicable, expired.

***Senior Secured Debt - Other*** 

The Company has two borrowing arrangements with financial institutions to support purchases of real estate inventory. Borrowings under each of these arrangements accrue interest at a rate based on a SOFR reference rate, plus a margin, which varies by arrangement. As of September 30, 2025 and December 31, 2024, the weighted-average interest rate under the Company's other senior secured debt was 8.94% and 9.24%, respectively.

***Revolving Credit Facility*** 

In July 2025, the Company entered into a three-year, $15.0 million revolving credit facility with a lender (the "Revolving Credit Facility") to support its continued growth and long-term strategic initiatives. Borrowings under the Revolving Credit Facility accrue interest at 8.50% per annum and are secured by certain of the Company's assets. As of September 30, 2025, the Company had $14.6 million in outstanding borrowings under the Revolving Credit Facility, net of debt financing costs.

The Revolving Credit Facility includes customary financial and other covenants, such as maintaining a minimum level of liquidity, and events of default. As of September 30, 2025, the Company was in compliance with all covenants and no event of default had occurred.

**Note 7. Warrant Liabilities**

As of September 30, 2025, the Company had outstanding warrant liabilities consisting of 16.1 million public warrants and 5.7 million private placement warrants, with every 15 warrants being exercisable to purchase one share of Class A common stock at an exercise price of $172.50 per share.

***Public Warrants***

A holder may exercise its public warrants only for a whole number of shares of Class A common stock. The public warrants will expire on September 1, 2026, or earlier upon redemption or liquidation. Pursuant to the terms of the warrant agreements, the Company may call the public warrants for redemption for cash or redeem the outstanding warrants for shares of Class A common stock under certain scenarios. The public warrants are traded on an over-the-counter market.

***Private Placement Warrants***

The private placement warrants have terms and provisions that are substantially identical to those of the public warrants, with the exception of certain redemption rights, options to exercise and registration rights when the private placement warrants are owned by specified holders.

***Other Warrants***

The foregoing discussion in this *Note 7. Warrant Liabilities* excludes the warrants that were issued and sold by the Company during July 2025 as these warrants are classified as equity securities. Refer to *Note 9. Stockholders' Equity,* for further details.

**Note 8. Fair Value Measurements** 

The fair values of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, and certain prepaid and other current assets and accrued expenses approximate carrying values because of their short-term nature. The Company's credit facilities are carried at amortized cost and the carrying value approximates fair value because of their short-term nature.

During July 2025, the Company issued and sold shares of its Class A common stock and warrants to purchase shares of its Class A common stock. As the warrants issued and sold in the transaction meet the criteria for equity classification, the Company allocated the aggregate proceeds from this transaction based on the relative fair values of the Class A common stock and warrants issued and sold in the transaction. The Company determined the fair value of the Class A common stock on a nonrecurring basis using Level 1 inputs and the fair value of the warrants on a nonrecurring basis using Level 3 inputs. Refer to *Note 9. Stockholders' Equity,* for further details.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 16

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**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

The Company's liabilities that are measured at fair value on a recurring basis consist of the following (in thousands):

---

| | | | |
|:---|:---|:---|:---|
| **As of September 30, 2025** | **Quoted Prices in<br>Active Markets for <br>Identical Liabilities<br>(Level 1)** | **Significant Other<br>Observable Inputs<br>(Level 2)** | **Significant<br>Unobservable Inputs<br>(Level 3)** |
| Public warrant liabilities | $803 | $— | $— |
| Private placement warrant liabilities | $— | $— | $343 |

---

---

| | | | |
|:---|:---|:---|:---|
| **As of December 31, 2024** | **Quoted Prices in<br>Active Markets for <br>Identical Liabilities<br>(Level 1)** | **Significant Other<br>Observable Inputs<br>(Level 2)** | **Significant<br>Unobservable Inputs<br>(Level 3)** |
| Public warrant liabilities | $128 | $— | $— |
| Private placement warrant liabilities | $— | $— | $103 |

---

***Public Warrants***

The public warrants are traded on an over-the-counter market. The fair value of the public warrants is estimated based on the quoted market price of such warrants on the valuation date. The Company recorded changes in the fair value of the public warrants of $(0.7) million and less than $(0.1) million during the three months ended September 30, 2025 and 2024, respectively, and $(0.7) million and $(0.3) million during the nine months ended September 30, 2025 and 2024, respectively. These changes are recorded in *Change in fair value of warrant liabilities* in our condensed consolidated statements of operations.

***Private Placement Warrants***

The following summarizes the changes in the Company's private placement warrant liabilities, which are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the respective periods:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| *($ in thousands)* | **2025** | **2024** | **2025** | **2024** |
| **Beginning balance** | $84 | $78 | $103 | $166 |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of private placement warrants included in net loss | 259 | (4) | 240 | (92) |
| **Ending balance** | $343 | $74 | $343 | $74 |

---

The Company generally uses the Black-Scholes-Merton option-pricing model to determine the fair value of the private placement warrants, with assumptions including expected volatility, expected life of the warrants, associated risk-free interest rate, and expected dividend yield.

There were no transfers between Levels 1, 2, and 3 during the three and nine months ended September 30, 2025 and 2024.

**Note 9. Stockholders' Equity** 

***Authorized Capital Stock***

We are authorized to issue 2,100,000,000 shares of capital stock, which consists of 2,000,000,000 shares of Class A common stock and 100,000,000 shares of preferred stock, both of which have a par value $0.0001 per share.

***Class A Common Stock***

*Market Information* 

Our Class A common stock trades on the New York Stock Exchange under the symbol "OPAD" and our public warrants trade on the OTC Markets Group Pink Market under the symbol "OPADW."

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 17

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

*July 2025 Offering*

During July 2025, we issued and sold 2,857,143 shares (the "Shares") of our Class A common stock and warrants to purchase up to 1,428,571 shares ("2025 Warrants") of our Class A common stock for aggregate gross proceeds of $6.0 million, before deducting placement agent fees and other offering expenses (the "July 2025 Offering"). The Shares and 2025 Warrants were offered and sold on a combined basis for consideration equating to $2.10 for one share and half of one warrant.

The 2025 Warrants have an exercise price of $2.30 per share and are initially exercisable on January 26, 2026 and will expire on January 26, 2030. The 2025 Warrants contain standard adjustments to the exercise price, including for stock splits, stock dividends, rights offerings and pro rata distributions. The 2025 Warrants also include certain rights upon the occurrence of a "fundamental transaction" (as described in the 2025 Warrants), including the right of the holder thereof to receive from us or a successor entity the same type or form of consideration (and in the same proportion) that is being offered and paid to the holders of our Class A common stock in such fundamental transaction in the amount of the Black Scholes value (as described in the 2025 Warrants) of the unexercised portion of the warrant on the date of the consummation of such fundamental transaction. The 2025 Warrants also include cashless exercise rights to the extent there is not an effective registration statement registering the resale of the shares of Class A common stock underlying the 2025 Warrants.

Based on the terms and conditions included in the 2025 Warrant agreements, the 2025 Warrants meet the criteria for equity classification. Accordingly, we allocated the $6.0 million of aggregate gross proceeds from the July 2025 Offering based on the relative fair values of the Class A common stock and warrants issued and sold in the transaction. We determined the fair value of the Class A common stock based on the closing price of our Class A common stock on the transaction date. We used the Black-Scholes-Merton option pricing model to determine the fair value of the 2025 Warrants as of the transaction date. Based on the calculated relative fair values of the Class A common stock and 2025 Warrants, we allocated $4.4 million of the aggregate gross proceeds to the Class A common stock and $1.6 million of the aggregate gross proceeds to the 2025 Warrants. We also allocated the $0.8 million of associated transaction costs between the Class A common stock and warrants in the same proportion as the proceeds.

*Other Warrants*

In addition to the 2025 Warrants described above, we have outstanding public and private warrants to purchase shares of our Class A common stock that do not meet the criteria for equity classification and are recognized as liabilities. Refer to *Note 7. Warrant Liabilities* for further details*.* 

*Sale Agreement*

During August 2025, we entered into an Open Market Sale Agreement<sup>SM</sup> (the "Sale Agreement") with Jefferies LLC, under which we may offer and sell up to $100,000,000 of our Class A common stock from time to time in any manner deemed to be an "at the market" offering. We have no obligation to sell any shares under the Sale Agreement, but we may do so from time to time.

During the three months ended September 30, 2025, we sold 4,295,542 shares of our Class A common stock under the Sale Agreement for aggregate gross proceeds of $21.7 million, before commissions and other offering costs of $0.9 million. As of September 30, 2025, we had $78.3 million of remaining availability under the Sale Agreement.

During October 2025, we sold an additional 2,278,953 shares of our Class A common stock under the Sale Agreement for aggregate gross proceeds of $8.5 million, before commissions and other offering costs of $0.3 million.

*Shares Outstanding*

As of September 30, 2025, we had 34,928,124 shares of Class A common stock issued and outstanding.

***Preferred Stock***

As of September 30, 2025, there were no shares of preferred stock issued and outstanding.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 18

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

***Dividends***

Our Class A common stock is entitled to dividends if and when any dividend is declared by our Board of Directors ("Board"), subject to the rights of all classes of stock outstanding having priority rights to dividends. We have not paid any cash dividends on common stock to date. We may retain future earnings, if any, for the further development and expansion of our business and have no current plans to pay cash dividends for the foreseeable future. Any future determination to pay dividends will be made at the discretion of our Board and will depend on, among other things, our financial condition, results of operations, capital requirements, restrictions contained in future agreements and financing instruments, business prospects and such other factors as our Board may deem relevant.

**Note 10. Stock-Based Awards** 

***2021 Equity Incentive Plans*** 

*Incentive Award Plan*

Pursuant to the terms of the Offerpad Solutions Inc. 2021 Incentive Award Plan (the "2021 Plan"), the number of shares of the Company's Class A common stock available for issuance under the 2021 Plan increases annually on the first day of each calendar year through January 1, 2031. Pursuant to the annual increase, the overall share limit was automatically increased on January 1, 2025 by 741,127 shares of our Class A common stock.

On June 17, 2025, the Board adopted an amendment to the 2021 Plan which increased the aggregate number of shares reserved for issuance under the 2021 Plan by 2,721,500 shares (the "Amendment"). The Amendment became effective on June 17, 2025, and was approved by our stockholders on July 30, 2025 at a special meeting of stockholders.

Following the annual increase and the Amendment, 5,340,535 shares of Class A common stock were reserved for issuance under the 2021 Plan as of September 30, 2025.

As of September 30, 2025, the Company has outstanding stock options, restricted stock units ("RSUs") and other stock or cash-based awards that have been granted under the 2021 Plan.

*Employee Stock Purchase Plan*

Pursuant to the terms of the Offerpad Solutions Inc. 2021 Employee Stock Purchase Plan ("ESPP"), the number of shares of the Company's Class A common stock available for issuance under the ESPP increases annually on the first day of each calendar year through January 1, 2031. As of September 30, 2025, there were 283,876 shares reserved for issuance under the ESPP, and no shares have been issued under the ESPP.

***Restricted Stock Units***

The following summarizes RSU award activity during the nine months ended September 30, 2025:

---

| | | |
|:---|:---|:---|
|  | **Number of<br>RSUs**<br> *(in thousands)* | **Weighted Average<br>Grant Date <br>Fair Value** |
| **Outstanding as of December 31, 2024** | 898 | $8.11 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted | 4147 | 1.28 |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested and settled | (455) | 6.89 |
| &nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (189) | 4.90 |
| **Outstanding as of September 30, 2025** | 4401 | 1.94 |

---

As of September 30, 2025, 0.3 million RSUs have vested, but have not yet been settled in shares of the Company's Class A common stock, pursuant to elections made by certain non-employee members of our Board to defer settlement thereof under the Offerpad Solutions Inc. Deferred Compensation Plan for Directors.

As of September 30, 2025, the Company had $5.6 million of unrecognized stock-based compensation expense related to unvested RSUs. This expense is expected to be recognized over a weighted average period of 2.44 years. The fair value of RSUs that vested and settled during the nine months ended September 30, 2025 and 2024 was $2.4 million and $2.9 million, respectively.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 19

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

***Other Cash or Stock-Based Awards***

The Company did not grant any other cash or stock-based awards during the nine months ended September 30, 2025.

As of September 30, 2025, the Company had $1.6 million of unrecognized stock-based compensation expense related to unvested other cash or stock-based awards granted in prior periods. This expense is expected to be recognized over a weighted average period of 2.20 years.

***Stock Options***

The following summarizes stock option activity during the nine months ended September 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of<br>Shares**<br> *(in thousands)* | **Weighted-<br>Average<br>Exercise Price<br>Per Share** | **Weighted Average<br>Remaining<br>Contractual<br>Term**<br> *(in years)* | **Aggregate<br>Intrinsic<br>Value**<br> *(in thousands)* |
| **Outstanding as of December 31, 2024** | 844 | $11.30 | 3.16 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Exercised | (57) | 2.95 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Forfeited, canceled or expired | (129) | 14.09 |  |  |
| **Outstanding as of September 30, 2025** | 658 | 11.48 | 1.83 | 134 |
| **Exercisable as of September 30, 2025** | 654 | 11.42 | 1.80 | 134 |
| **Vested and expected to vest as of September 30, 2025** | 658 | 11.48 | 1.83 | 134 |

---

The total intrinsic value of stock options exercised during the nine months ended September 30, 2025 and 2024 was $0.1 million and less than $0.1 million, respectively.

As of September 30, 2025, the Company had unrecognized stock-based compensation expense related to unvested stock options of $0.1 million. This expense is expected to be recognized over a weighted average period of 0.49 years. The fair value of stock options that vested during each of the nine months ended September 30, 2025 and 2024 was $0.7 million.

***Performance-Based Restricted Stock Units***

The following summarizes performance-based RSU ("PSU") award activity during the nine months ended September 30, 2025:

---

| | | |
|:---|:---|:---|
|  | **Number of<br>PSUs**<br> *(in thousands)* | **Weighted Average<br>Grant Date <br>Fair Value** |
| **Outstanding as of December 31, 2024** | 110 | $70.81 |
| &nbsp;&nbsp;&nbsp;&nbsp;Granted |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Vested |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Forfeited | (110) | 70.81 |
| **Outstanding as of September 30, 2025** |  |  |

---

The PSU performance period ended during the first quarter of 2025, with none of the pre-determined price per share goals being achieved. Accordingly, the PSUs were automatically forfeited and terminated without consideration.

***Stock-based Compensation Expense*** 

The following details stock-based compensation expense for the respective periods:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| *($ in thousands)* | **2025** | **2024** | **2025** | **2024** |
| Sales, marketing and operating | $119 | $69 | $809 | $2374 |
| General and administrative | 644 | 561 | 2649 | 4956 |
| Technology and development | 52 | 85 | 396 | 501 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Stock-based compensation expense** | $815 | $715 | $3854 | $7831 |

---

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 20

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

**Note 11. Variable Interest Entities** 

The Company formed certain special purpose entities (each, an "SPE") to purchase and sell residential properties. Each SPE is a wholly-owned subsidiary of the Company and a separate legal entity, and neither the assets nor credit of any such SPE are available to satisfy the debts and other obligations of any affiliate or other entity. The credit facilities are secured by the assets and equity of one or more SPEs. These SPEs are variable interest entities, and the Company is the primary beneficiary as it has the power to control the activities that most significantly impact the SPEs' economic performance and the obligation to absorb losses of the SPEs or the right to receive benefits from the SPEs that could potentially be significant to the SPEs. The SPEs are consolidated within the Company's condensed consolidated financial statements.

The following summarizes the assets and liabilities related to the VIEs as of the respective period ends:

---

| | | |
|:---|:---|:---|
|  | **September 30,** | **December 31,** |
| *($ in thousands)* | **2025** | **2024** |
| **Assets** |  |  |
| Restricted cash | $2360 | $30608 |
| Accounts receivable | 432 |  |
| Real estate inventory | 162367 | 214174 |
| Prepaid expenses and other current assets | 164 | 345 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total assets | $165323 | $245127 |
| **Liabilities** |  |  |
| Accounts payable | $426 | $591 |
| Accrued and other current liabilities | 1055 | 1326 |
| Secured credit facilities and other debt, net | 142163 | 237273 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | $143644 | $239190 |

---

**Note 12. Earnings Per Share**

Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares plus the incremental effect of dilutive potential common shares outstanding during the period. In periods when losses are reported, the weighted average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.

The components of basic and diluted earnings per share are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| *(In thousands, except per share data)* | **2025** | **2024** | **2025** | **2024** |
| **Numerator:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net loss | $(11604) | $(13537) | $(37564) | $(44834) |
| **Denominator:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average common shares outstanding, basic | 31281 | 27439 | 28885 | 27388 |
| &nbsp;&nbsp;&nbsp;&nbsp;Dilutive effect of stock options (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dilutive effect of restricted stock units (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Dilutive effect of 2025 Warrants (1) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Weighted average common shares outstanding, diluted | 31281 | 27439 | 28885 | 27388 |
| Net loss per share, basic | $(0.37) | $(0.49) | $(1.30) | $(1.64) |
| Net loss per share, diluted | $(0.37) | $(0.49) | $(1.30) | $(1.64) |
| **Anti-dilutive securities excluded from diluted loss per share:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Anti-dilutive stock options (1) | 701 | 817 | 765 | 919 |
| &nbsp;&nbsp;&nbsp;&nbsp;Anti-dilutive restricted stock units (1) | 2132 | 780 | 1004 | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;Anti-dilutive 2025 Warrants (1) | 1429 |  | 1429 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Anti-dilutive warrants | 1452 | 1452 | 1452 | 1452 |
| &nbsp;&nbsp;&nbsp;&nbsp;Anti-dilutive performance-based restricted stock units |  | 115 | 24 | 118 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Due to the net loss during each of the three and nine months ended September 30, 2025 and 2024, no dilutive securities were included in the calculation of diluted loss per share because they would have been anti-dilutive.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 21

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

**Note 13. Income Taxes**

The Company determines its interim tax provision by applying the estimated effective income tax rate expected to be applicable for the full fiscal year to its income (loss) before income taxes for the period. The Company's effective tax rate is dependent on several factors, such as tax rates in state jurisdictions and the relative amount of income the Company earns in the respective jurisdiction.

The Company recorded income tax expense of $0.4 million and less than $0.1 million during the three months ended September 30, 2025 and 2024, respectively, and $0.4 million and $0.1 million during the nine months ended September 30, 2025 and 2024, respectively. The Company's effective tax rate was an expense of 3.4% and 0.2% for the three months ended September 30, 2025 and 2024, respectively, and an expense of 1.2% and 0.2% for the nine months ended September 30, 2025 and 2024, respectively. The Company's effective tax rate during the three and nine months ended September 30, 2025 differed from the federal statutory rate of 21% primarily due to state taxes and net operating loss carryforwards. The valuation allowance recorded against our net deferred tax assets was $125.9 million as of September 30, 2025.

As of September 30, 2025, we continue to have a full valuation allowance recorded against our net deferred tax assets and will continue to evaluate our valuation allowance in future periods for any change in circumstances that causes a change in judgment about the realizability of the deferred tax assets. The amount of the deferred tax assets considered realizable, however, could be adjusted in future periods if estimates of future taxable income during the carryforward period are increased, if objective negative evidence in the form of cumulative losses is no longer present, and if we employ tax planning strategies in the future.

The Internal Revenue Code contains provisions that limit the utilization of net operating loss carryforwards and tax credit carryforwards if there has been an ownership change. Such ownership change, as described in Section 382 of the Internal Revenue Code, may limit the Company's ability to utilize its net operating loss carryforwards and tax credit carryforwards on a yearly basis. To the extent that any single-year limitation is not utilized to the full amount of the limitation, such unused amounts are carried over to subsequent years until the earlier of utilization or the expiration of the relevant carryforward period. The Company determined that an ownership change occurred on February 10, 2017. An analysis was performed and while utilization of net operating losses would be limited in years prior to December 31, 2020, subsequent to that date, there is no limitation on the Company's ability to utilize its net operating losses. As such, the ownership change has no impact to the carrying value of the Company's net operating loss carryforwards or ability to use them in future years.

**Note 14. Related-Party Transactions** 

***LL Credit Facilities***

As of September 30, 2025, we have one senior secured credit facility and two mezzanine secured credit facilities with affiliates of LL Capital Partners I, L.P. ("LL Capital"), a related party. The following summarizes certain details related to these facilities, which are further described in *Note 6. Credit Facilities and Other Debt*:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of September 30, 2025** | **As of September 30, 2025** | **As of December 31, 2024** | **As of December 31, 2024** |
| *($ in thousands)* | **Borrowing<br>Capacity** | **Outstanding<br>Amount** | **Borrowing<br>Capacity** | **Outstanding<br>Amount** |
| Senior secured credit facility with a related party | $50000 | $4025 | $50000 | $18329 |
| Mezzanine secured credit facilities with a related party | $57000 | $11803 | $92000 | $23532 |

---

Since October 2016, we have been party to a loan and security agreement (the "LL Funds Loan Agreement"), with LL Private Lending Fund, L.P. and LL Private Lending Fund II, L.P., both of which are affiliates of LL Capital. Combined with its limited partners, LL Capital holds more than 5% of our Class A common stock as of September 30, 2025. Additionally, Roberto Sella, who is a member of our Board and holds more than 5% of our Class A common stock, is the managing partner of LL Funds, LLC. The LL Funds Loan Agreement is comprised of a senior secured credit facility and a mezzanine secured credit facility, under which we may borrow funds during the revolving/withdrawal period up to a maximum principal amount of $50.0 million and $22.0 million, respectively. The LL Funds Loan Agreement also provides us with the option to borrow above the fully committed borrowing capacity, subject to the lender's discretion.

Since March 2020, we have also been party to a mezzanine loan and security agreement (the "LL Mezz Loan Agreement"), with LL Private Lending Fund II, L.P., which is an affiliate of LL Capital. Under the LL Mezz Loan Agreement, we may borrow funds during the revolving/withdrawal period up to a maximum principal amount of $35.0 million.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 22

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

During October 2025, we entered into a new senior loan and security agreement (the "2025 LL Senior Loan Agreement") with LL Private Lending Fund II, L.P. Under the 2025 LL Senior Loan Agreement, we may borrow funds during the revolving/withdrawal period up to a maximum principal amount of $15.0 million.

At various points during the nine months ended September 30, 2025, we obtained temporary waivers of certain covenants under certain of our related party credit facilities. In connection with the most recent waiver obtained in July 2025, the associated revolving/withdrawal periods for each facility, as applicable, expired.

We paid interest for borrowings under the LL credit facilities of $1.0 million and $1.0 million during the three months ended September 30, 2025 and 2024, respectively, and $3.8 million and $2.8 million during the nine months ended September 30, 2025 and 2024, respectively.

***Use of First American Financial Corporation's Services*** 

First American Financial Corporation ("First American"), which holds more than 5% of our Class A common stock, through its subsidiaries is a provider of title insurance and settlement services for real estate transactions and a provider of property data services. Additionally, Kenneth DeGiorgio, who is a member of our Board, was the chief executive officer of First American through early April 2025. During 2025, we used First American's services in the ordinary course of our home-buying and home-selling activities. We paid First American $0.4 million and $1.1 million during the three months ended September 30, 2025 and 2024, respectively, and $2.2 million and $4.3 million during the nine months ended September 30, 2025 and 2024, respectively, for its services, inclusive of the fees for property data services.

***Compensation of Immediate Family Members of Brian Bair***

Offerpad has historically employed Brian Bair's brothers, Mr. Vaughn Bair and Mr. Casey Bair, and Mr. Brian Bair's sister-in-law, Ms. Katie Bullard. The following details the total compensation paid to the immediate family members of Brian Bair during each of the respective periods:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| *($ in thousands)* | **2025** | **2024** | **2025** | **2024** |
| Mr. Vaughn Bair (1) | $114 | $114 | $435 | $376 |
| Mr. Casey Bair (2) | 69 | 108 | 269 | 353 |
| Ms. Katie Bullard (1) | 41 | 41 | 128 | 108 |
|  | $224 | $263 | $832 | $837 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Compensation for Mr. Vaughn Bair and Ms. Katie Bullard includes both base salary and annual performance-based cash incentives during the respective year-to-date periods.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Compensation for Mr. Casey Bair during the three and nine months ended September 30, 2025, includes severance payments in connection with his separation from service with the Company in August 2024. Compensation during the three and nine months ended September 30, 2024, includes base salary and severance payments, and during the nine months ended September 30, 2024 includes annual performance-based cash incentives.

The following details the RSUs granted to Mr. Vaughn Bair, Mr. Casey Bair, and Ms. Katie Bullard, during the respective periods:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
|  | **2025** | **2024** | **2025** | **2024** |
| Mr. Vaughn Bair (1) | 410000 |  | 430433 | 42500 |
| Mr. Casey Bair (2) |  |  |  | 40000 |
| Ms. Katie Bullard |  |  | 20000 | 6000 |
|  | 410000 |  | 450433 | 88500 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) During June 2025, the Compensation Committee of the Board approved a grant of 410,000 RSUs to Mr. Vaughn Bair, contingent upon stockholder approval of the Amendment to the 2021 Plan. The Amendment was approved by our stockholders on July 30, 2025 at a special meeting of stockholders, upon which, this RSU award was granted.

&nbsp;&nbsp;&nbsp;&nbsp;(2) This RSU award was forfeited by Mr. Casey Bair in connection with his separation from service in August 2024.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 23

------

**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

During the nine months ended September 30, 2024, the Company amended certain terms and conditions associated with the

LTI Awards granted to Mr. Bair's brothers and Mr. Bair's sister-in-law in 2023, including the performance period, price per

share goals and sharing rates. In connection with Mr. Casey Bair's separation from service, all unvested equity awards,

including the LTI Award, were forfeited.

**Note 15. Commitments and Contingencies** 

***Homes Purchase Commitments***

As of September 30, 2025, the Company was under contract to purchase 52 homes for an aggregate purchase price of $13.1 million.

***Lease Commitments***

The Company has entered into operating lease agreements for its corporate headquarters in Tempe, Arizona and field office facilities in certain metropolitan markets in which the Company operates in the United States. Refer to *Note 4. Leases*, for further details.

***Legal and Other Matters***

The Company is subject to various actions, claims, suits and other legal proceedings that arise in the ordinary course of business, including, without limitation, assertions by third parties relating to intellectual property infringement, breaches of contract or warranties or employment-related matters. The Company records accruals for loss contingencies when it is probable that a loss will occur, and the amount of such loss can be reasonably estimated. The Company is not currently a party to any actions, claims, suits or other legal proceedings arising in the ordinary course of business, the outcome of which, if determined adversely to the Company, would individually or in the aggregate have a material adverse effect on the Company's condensed consolidated financial statements.

The following is a description of pending litigation that falls outside the scope of ordinary and routine litigation incidental to the Company's business.

*Class Action Alleging Breach of Fiduciary Duties*

On August 26, 2024, a purported stockholder of Offerpad (the "Plaintiff") filed a complaint against Alexander Klabin, Spencer Rascoff, Ken Fox, Jim Lanzone, Gregg Renfrew, Rajeev Singh, Robert Reid, Michael Clifton, Supernova Partners, LLC (the "Supernova Defendants"), Brian Bair, and Michael Burnett (the "Offerpad Defendants"). The case is captioned *In re Supernova Partners Acquisition Co. SPAC Litigation*, C.A. No. 2024-0887 (Del. Ch.) (the "Complaint"). The Complaint generally alleges that the Supernova Defendants breached their fiduciary duties, with the Offerpad Defendants aiding and abetting these breaches, in connection with the merger between OfferPad, Inc. and Supernova Partners Acquisition Company, Inc. on September 1, 2021. The Complaint seeks, among other things, monetary damages, disgorgement of any unjust enrichment, rescissory damages, pre-judgment and post-judgment interest, and reasonable attorneys' fees and costs. On September 19, 2024, proceedings related to the Complaint were temporarily stayed. On February 24, 2025, the court dismissed the Offerpad Defendants and Supernova Partners, LLC from the Complaint without prejudice, which terminated the case as to the Offerpad Defendants. On June 30, 2025, Plaintiff filed a notice lifting the stay, which became effective immediately. In regard to the remaining allegations against the remaining Supernova Defendants, because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on the information available to the Company at present, the Company is unable to reasonably estimate a range of loss associated with its indemnification obligations in connection with this matter in excess of its accrual as of September 30, 2025.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 24

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**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

**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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Other*, which includes:

oB2B 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;

oDirect+ institutional buyer program, which allows investors and single-family rental companies an opportunity to purchase homes from homeowners, matching investors with sellers;

oHomePro, 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

oAgent 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 nine months ended September 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 nine months ended September 30, 2025 and 2024.

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**OFFERPAD SOLUTIONS INC.**

**Notes to Condensed Consolidated Financial Statements**

**(Unaudited)**

The following details segment financial information for the respective periods:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| *($ in thousands)* | **2025** | **2024** | **2025** | **2024** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;Cash Offer | $122783 | $202840 | $428687 | $725565 |
| &nbsp;&nbsp;Other | 9898 | 5227 | 25007 | 18982 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | 132681 | 208067 | 453694 | 744547 |
| Cost of revenue: |  |  |  |  |
| &nbsp;&nbsp;Cash Offer (1) | 116430 | 187523 | 403079 | 670174 |
| &nbsp;&nbsp;Other | 6915 | 3404 | 16583 | 12767 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total cost of revenue** | 123345 | 190927 | 419662 | 682941 |
| Gross profit: |  |  |  |  |
| &nbsp;&nbsp;Cash Offer | 6353 | 15317 | 25608 | 55391 |
| &nbsp;&nbsp;Other | 2983 | 1823 | 8424 | 6215 |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total gross profit** | 9336 | 17140 | 34032 | 61606 |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales, marketing and operating | 10141 | 16864 | 37157 | 59546 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 5149 | 8254 | 20141 | 30747 |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology and development | 788 | 947 | 2794 | 3684 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 16078 | 26065 | 60092 | 93977 |
| **Loss from operations** | (6742) | (8925) | (26060) | (32371) |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | (987) | 14 | (915) | 349 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (3646) | (5114) | (10833) | (14600) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 151 | 512 | 691 | 1881 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (4482) | (4588) | (11057) | (12370) |
| **Loss before income taxes** | $(11224) | $(13513) | $(37117) | $(44741) |

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&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes real estate inventory valuation adjustments of $2.0 million and $0.8 million during the three months ended September 30, 2025 and 2024, respectively, and $4.8 million and $2.0 million during the nine months ended September 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.

**Note 17. Subsequent Events** 

The Company has determined that there have been no events that have occurred that would require recognition in the condensed consolidated financial statements or additional disclosure herein, except as described elsewhere in the notes to the condensed consolidated financial statements.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 26

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

*The following discussion and analysis provides information that Offerpad's management believes is relevant to an assessment and understanding of Offerpad's consolidated results of operations and financial condition. The discussion should be read together with the unaudited interim condensed consolidated financial statements and accompanying notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q and our audited consolidated financial statements and accompanying notes included in Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission (the "SEC") on February 25, 2025.*

*This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. See "Cautionary Note Regarding Forward-Looking Statements" in this Quarterly Report on Form 10-Q. Offerpad's actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under "Risk Factors" in Part I, Item 1A of Offerpad's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.* 

**Overview**

***Our Business***

Offerpad, dedicated to simplifying the process of buying and selling homes, is committed to providing comprehensive solutions that remove the friction from real estate. Our advanced real estate platform offers a range of services, from consumer cash offers to business-to-business ("B2B") renovation solutions and industry partnership programs, all tailored to meet the unique needs of our clients. Since 2015, we have leveraged local expertise in residential real estate alongside proprietary technology to guide homeowners at every step, and have transacted on homes representing approximately $12.1 billion of aggregate revenue through September 30, 2025.

We are headquartered in Tempe, Arizona and operated in over 1,900 cities and towns in 27 metropolitan markets across 18 states as of September 30, 2025.

***Current Economic Conditions and Health of the U.S. Residential Real Estate Industry***

Our business and operating results are impacted by the general economic conditions and the health of the U.S. residential real estate industry, particularly the single-family home resale market. Our business model primarily depends on a high volume of residential real estate transactions throughout the markets in which we operate. This transaction volume affects substantially all of the ways that we generate revenue, including our ability to acquire new homes and generate associated fees, and our ability to sell homes that we own.

The soft residential real estate market conditions continued during the third quarter of 2025, as housing affordability challenges and weakened consumer confidence persisted, negatively impacting consumer demand for residential real estate. The ongoing concerns associated with the macroeconomic and geopolitical environments, which have been heightened by the trade-related tensions resulting from the recently implemented and proposed tariffs by the U.S. and other governments, have also had an adverse impact on the residential real estate market conditions in recent periods. Although the average thirty-year fixed mortgage rate generally trended downward during the third quarter of 2025 to a level not seen since late 2024, mortgage interest rates remain above 6%, which we expect will continue to contribute to the housing affordability challenges. The cumulative impact of these conditions continues to cause uncertainty in the market and challenge consumer confidence, resulting in lower than normal real estate transaction volumes.

Our operating results during the third quarter of 2025 reflect these prevailing market conditions that have been challenging the residential real estate market for an extended period of time. As a result of these conditions, we maintained our focus on selling through our aged real estate inventory during the third quarter of 2025, which had a negative impact on our gross profit margin during the quarter. This activity, combined with our ongoing intentional reduction in home acquisition pace as part of our effort to balance our real estate inventory levels to potentially optimize our return in the future, has resulted in a fewer number of homes in real estate inventory, which is also reflected in our operating results. Although our operating results were unfavorably impacted by these conditions and related strategies during the third quarter of 2025, our focus on cost reduction and operational efficiencies throughout the business continues to be reflected in our lower cost structure, as we achieved year-over-year improvement in our net loss for the third consecutive quarter.

Given the current market conditions, we remain focused on growing our asset-light platform offerings, and within our Cash Offer solution, proactively optimizing our capital allocation across our highest performing and most efficient markets and using pricing adjustments and other incentives in an effort to drive consumer demand. These pricing adjustments have had a negative impact on our operating results over the past few years. Further, there continues to be an increased level of uncertainty regarding the near-term macroeconomic conditions, including the direction of mortgage interest rates. While the Federal Reserve Board lowered its benchmark interest rate in both September 2025 and October 2025, and may lower rates further in

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 27

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2025 or future periods, it remains difficult to predict the near-term direction of consumer demand for residential real estate due to the many different factors that impact such demand. We anticipate that ongoing economic uncertainties and affordability pressures will continue to impact consumer demand for residential real estate during the fourth quarter of 2025. As a result of these market dynamics, we may be required to use similar pricing adjustments and incentives in the future, along with reducing our real estate inventory acquisition pace compared to our historical levels.

***2025 Capital Raising Activities***

During the second half of 2025, we executed the following transactions to strengthen our balance sheet and support key growth initiatives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Class A Common Stock and Warrant Offering* – During July 2025, we issued and sold 2,857,143 shares (the "Shares") of our Class A common stock and warrants to purchase up to 1,428,571 shares ("2025 Warrants") of our Class A common stock for aggregate gross proceeds of $6.0 million, before deducting placement agent fees and other offering expenses. The Shares and 2025 Warrants were offered and sold on a combined basis for consideration equating to $2.10 for one share and half of one warrant. The 2025 Warrants have an exercise price of $2.30 per share and are initially exercisable on January 26, 2026 and will expire on January 26, 2030.

The 2025 Warrants contain standard adjustments to the exercise price, including for stock splits, stock dividends, rights offerings and pro rata distributions. The 2025 Warrants also include certain rights upon the occurrence of a "fundamental transaction" (as described in the 2025 Warrants), along with cashless exercise rights to the extent there is not an effective registration statement registering the resale of the shares of Class A common stock underlying the 2025 Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Revolving Credit Facility* – In July 2025, we entered into a three-year, $15.0 million revolving credit facility with a lender (the "Revolving Credit Facility") to support our continued growth and long-term strategic initiatives. Borrowings under the Revolving Credit Facility accrue interest at 8.50% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Sale Agreement* – During August 2025, we entered into an Open Market Sale Agreement<sup>SM</sup> (the "Sale Agreement") with Jefferies LLC, under which we may offer and sell up to $100,000,000 of our Class A common stock from time to time in any manner deemed to be an "at the market" offering. We have no obligation to sell any shares under the Sale Agreement, but we may do so from time to time.

During the three months ended September 30, 2025, we sold 4,295,542 shares of our Class A common stock under the Sale Agreement for aggregate gross proceeds of $21.7 million, before commissions and other offering costs of $0.9 million. As of September 30, 2025, we had $78.3 million of remaining availability under the Sale Agreement.

Further, during October 2025, we sold an additional 2,278,953 shares of our Class A common stock under the Sale Agreement for aggregate gross proceeds of $8.5 million, before commissions and other offering costs of $0.3 million.

***New York Stock Exchange Listing Notice***

On April 10, 2025, we received written notice (the "NYSE Notification") from the NYSE that we are not in compliance with Section 802.01B of the NYSE Listed Company Manual because our average global market capitalization over a consecutive 30 trading-day period and, at the same time, our last reported stockholders' equity were each less than $50 million. The NYSE Notification has no immediate impact on the listing of our Class A common stock.

On April 18, 2025, we notified the NYSE that we intend to submit a plan to cure the deficiency and to return to compliance with the NYSE continued listing standards. On May 27, 2025, we submitted to the NYSE a business plan advising the definitive action(s) we are taking or plan to take that would bring us into compliance with the NYSE continued listing standards within 18 months of receipt of the NYSE Notification (the "Cure Period").

On July 16, 2025, the NYSE accepted the business plan and, as a result, we will be subject to quarterly monitoring for compliance with the business plan. Our Class A common stock will continue to be listed and traded on the NYSE during the Cure Period, subject to our compliance with the other continued listing standards of the NYSE and continued periodic review by the NYSE of our progress with respect to the business plan.

**Factors Affecting Our Performance**

We believe that our performance and future success depend on a variety of factors that present significant opportunities for our business but also present risks and challenges that could adversely impact our growth and profitability, including those discussed in *Overview* above, along with those discussed below.

***Market Penetration in Existing Markets***

Residential real estate is one of the largest industries, with roughly $1.9 trillion in value of homes transacted in 2024 in the United States, and is highly fragmented with over 100,000 real estate brokerages, according to the National Association of Realtors ("NAR"). In 2024, we estimate that we captured roughly 0.4% market share of real estate transactions across our 26

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active markets as of December 31, 2024. Given this high degree of fragmentation, we believe that bringing a solutions-oriented approach to the market with multiple buying and selling services to meet the unique needs of customers could lead to continued market share growth and accelerated adoption of the digital model. We have demonstrated higher market share in certain markets, providing the backdrop to grow our overall market penetration as our offerings expand and evolve. By providing a consistent, transparent, and unique experience, we expect to continue to build upon our past success and further strengthen our brand and consumer adoption.

***Expansion into New Markets***

Since our launch in 2015, we have expanded into 26 markets as of December 31, 2024, which covered roughly 23% of the 4.8 million homes sold in the United States in 2024. Given this current coverage, we believe there is significant opportunity to both increase market penetration in our existing markets and to grow our business through new market expansion over the long-term. Also, because of our strategic approach to our asset-light platform offerings, we believe a significant portion of the total addressable market is serviceable with our business model. As we expand our reach through these other service offerings, we expect to continue to serve customers in markets beyond our direct service area. Further, this strategic approach has enabled us to enter into new markets to offer certain of our service offerings, without offering all of our buying and selling services in such markets. In connection with this approach, we began offering renovation services in two additional markets during 2024, followed by one additional market during the nine months ended September 30, 2025.

Although we have expanded into three new markets, we have decelerated our market expansion plans in recent years given the uncertain economic outlook and soft residential real estate market conditions. We intend to continue evaluating expansion plans on an ongoing basis in order to maintain our flexibility in assessing the overall timing of our expansion plan and appropriate market entry points in the future.

***B2B Renovate Business Services***

Our B2B Renovate business services represent an important component of our asset-light platform offerings. Through this offering, we are able to 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. When providing renovation services, we receive a renovation project fee, and are also typically compensated with a service fee that is based on a percentage of the overall renovation project fee.

As we have developed and expanded our B2B Renovate business services offering in recent periods, our renovation volumes have increased and these services have become an increasingly larger component of our business, a trend we expect to continue in the future. In furtherance of this, we became a preferred provider of renovation services on Auction.com's marketplace during the second quarter of 2025. We believe this collaboration with Auction.com will enable buyers to more easily transform acquired properties into high-quality, move-in ready homes, while also providing us with a strategic opportunity to continue growing our B2B Renovate business services.

***Direct+ institutional buyer program***

Another component of our asset-light platform offerings includes our program that allows investors and single-family rental companies an opportunity to purchase homes from homeowners, matching investors with sellers. These transactions occur in several forms, including assigning the original purchase contract to the end buyer and collecting a fee at closing. We expect this program will allow us to help more homeowners sell their home and has the potential to expand our ability to reach more customers, while also providing customers with the benefit of receiving an optimized offer for their home.

***HomePro***

During the second quarter of 2025, we launched HomePro, a model that is designed to increase in-home seller engagement and further our mission to provide comprehensive solutions that remove the friction from real estate. Under the HomePro program, 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, giving sellers clarity and control over what works best for their situation. During the third quarter of 2025, we further enhanced the HomePro program to streamline and optimize the assessment process for HomePro agents, allowing them to spend more time on providing sellers with an increased level of clarity and confidence at every step of the home selling process.

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***Agent Partnership Program*** 

We have increased our focus on our partner network in recent years, which includes our homebuilder services, our Agent Partnership Program and our agent referral network, to drive growth in our existing markets by expanding our reach and serving a greater number of customers. Our Agent Partnership Program provides referral fees to agents who sell or select our cash offer. This program is designed to enable 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.

We also have an integration with Realtor.com, allowing customers to request a cash offer from Offerpad directly through the Realtor.com website. We anticipate this integration will further expand our reach and diversify our lead sources.

***Ancillary products and services***

We aim to deliver other additional products and services tied to the core real estate transaction in a smooth, efficient, digital driven platform, focused on transparency and ease of use. Although further developing these products and services will require significant investment, growing our current offerings and offering additional ancillary products and services, potentially including energy efficiency solutions, smart home technology, insurance, and home warranty services, we believe will strengthen our unit economics and allow us to better optimize pricing. Generally, the revenue and margin profiles of our ancillary products and services are different from our Cash Offer service that accounts for the substantial majority of our revenue, with most ancillary products and services having a smaller average revenue per transaction than our cash offering service, but a higher margin.

While we have offered a variety of ancillary products and services over time, our title and escrow services represent the most notable ancillary service that we currently provide. We have a national relationship with a leading title and escrow company, through which we are able to leverage our size and scale to provide exceptional title and escrow closing services with a favorable economic impact principally in our Cash Offer service.

***Unit Economics***

We view Contribution Margin and Contribution Margin after Interest (see "—Non-GAAP Financial Measures") as key performance indicators for unit economic performance, which are currently primarily driven by our cash offer transactions. Future financial performance improvements are expected to be driven by expanding unit level margins through initiatives such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Continued optimization of acquisition, renovation, and resale processes and strategies, as we increase our market penetration in existing markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Effectively increasing and expanding our Cash Offer solution, optimizing customer and agent community engagement and increasing conversion of requests for home purchases; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Introducing and scaling additional ancillary products and services to complement our core Cash Offer solution.

***Operating Leverage***

We utilize our technology and product teams to design systems and workflows to make our operations teams more efficient and able to support and scale with the business. Many positions are considered volume based, and as our business grows, we focus on developing more automation tools to gain additional leverage. Additionally, in periods when our business is growing, we expect to be able to gain operating leverage on portions of our cost structure that are more fixed in nature as opposed to purely variable. These types of costs include general and administrative expenses and certain marketing and information technology expenses, which generally grow at a slower pace than proportional to revenue growth.

***Real Estate Inventory Financing***

Our business model requires significant capital to purchase real estate inventory. Real estate inventory financing is a key enabler to our growth and we rely on our non-recourse asset-backed financing facilities, which primarily consist of senior and mezzanine secured credit facilities to finance our home purchases. Though we may from time to time reduce our available capacity under such credit facilities to align with our required usage, the loss of adequate access to these types of facilities, or the inability to maintain these types of facilities on favorable terms, would impair our performance. *See "—Liquidity and Capital Resources—Financing Activities."*

***Seasonality***

The residential real estate market is seasonal and varies from market to market. Typically, the greatest number of transactions occur in the spring and summer, with fewer transactions occurring in the fall and winter. Our financial results, including revenue, margins, real estate inventory, and financing costs, have historically had seasonal characteristics generally consistent with the residential real estate market, a trend we expect to continue in the future, subject to the market conditions discussed above.

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***Risk Management***

Our business model is based upon acquiring homes at a price which will allow us to provide a competitive offer to the consumer, while being able to add value through the renovation process, and relist the home so that it sells at a profit and in a relatively short period of time. We have invested significant resources into our underwriting and asset management systems. Our real estate operations team, including our pricing team, together with our software engineering and data science teams are responsible for underwriting accuracy, portfolio health, and workflow optimization. Our underwriting tools are constantly updated to adjust to the latest market conditions, leveraging inputs from our internal data systems, as well as third-party and other proprietary data sources. This allows us to assess and adjust to changes in the local housing market conditions based on our technology, analysis and local real estate experience, in order to mitigate our risk exposure. Further, our listed homes are typically in market-ready and move-in ready condition following the repairs and renovations we conduct.

Historically, we have been able to manage our portfolio risk in part by our ability to manage holding periods for our real estate inventory. Traditionally, resale housing pricing moves gradually through cycles; therefore, shorter real estate inventory holding periods limit pricing exposure.

During the nine months ended September 30, 2025, the average holding period of homes sold has remained higher than our historical norms as a result of the softened residential real estate market conditions, and our associated ongoing intentional reduction in home acquisition pace and continued focus on selling through our aged real estate inventory during the year. The average holding period of homes sold during the third quarter of 2025 was 154 days. Based on current market conditions, the normal seasonal increase that occurs in the fall and winter months and our sustained effort on managing our real estate inventory levels, we anticipate our average real estate inventory holding period in the fourth quarter of 2025 will slightly increase to approximately 160 days. However, as the residential real estate market conditions remain challenging, we intend to continue making more intentional offers and balancing our home acquisition pace to manage our real estate inventory levels, and ultimately, our average real estate inventory holding period.

**Non-GAAP Financial Measures**

In addition to our results of operations below, we report certain financial measures that are not required by, or presented in accordance with, U.S. generally accepted accounting principles ("GAAP"). These measures have limitations as analytical tools when assessing our operating performance and should not be considered in isolation or as a substitute for GAAP measures, including gross profit and net income. We may calculate or present our non-GAAP financial measures differently than other companies who report measures with similar titles and, as a result, the non-GAAP financial measures we report may not be comparable with those of companies in our industry or in other industries.

*Adjusted Gross Profit, Contribution Profit, and Contribution Profit After Interest (and related margins)*

To provide investors with additional information regarding our margins, we have included Adjusted Gross Profit, Contribution Profit, and Contribution Profit After Interest (and related margins), which are non-GAAP financial measures. We believe that Adjusted Gross Profit, Contribution Profit, and Contribution Profit After Interest are useful financial measures for investors as they are used by management in evaluating unit level economics and operating performance across our markets. Each of these measures is intended to present the economics related to homes sold during a given period. We do so by including revenue generated from homes sold (and ancillary services) in the period and only the expenses that are directly attributable to such home sales, even if such expenses were recognized in prior periods, and excluding expenses related to homes that remain in real estate inventory as of the end of the period presented. Contribution Profit provides investors a measure to assess Offerpad's ability to generate returns on homes sold during a reporting period after considering home acquisition costs, renovation and repair costs, and adjusting for holding costs and selling costs. Contribution Profit After Interest further impacts gross profit by including interest costs (including senior and mezzanine secured credit facilities) attributable to homes sold during a reporting period. We believe these measures facilitate meaningful period over period comparisons and illustrate our ability to generate returns on assets sold after considering the costs directly related to the assets sold in a presented period.

Adjusted Gross Profit, Contribution Profit and Contribution Profit After Interest (and related margins) are supplemental measures of our operating performance and have limitations as analytical tools. For example, these measures include costs that were recorded in prior periods under GAAP and exclude, in connection with homes held in real estate inventory at the end of the period, costs required to be recorded under GAAP in the same period.

Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We include a reconciliation of these measures to the most directly comparable GAAP financial measure, which is gross profit.

*Adjusted Gross Profit / Margin*

We calculate Adjusted Gross Profit as gross profit under GAAP adjusted for (1) net real estate inventory valuation adjustment plus (2) interest expense associated with homes sold in the presented period and recorded in cost of revenue. Net real estate

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inventory valuation adjustment is calculated by adding back the real estate inventory valuation adjustment charges recorded during the period on homes that remain in real estate inventory at period end and subtracting the real estate inventory valuation adjustment charges recorded in prior periods on homes sold in the current period. We define Adjusted Gross Margin as Adjusted Gross Profit as a percentage of revenue.

We view this metric as an important measure of business performance, as it captures gross margin performance isolated to homes sold in a given period and provides comparability across reporting periods. Adjusted Gross Profit helps management assess performance across the key phases of processing a home (acquisitions, renovations, and resale) for a specific resale cohort.

*Contribution Profit / Margin*

We calculate Contribution Profit as Adjusted Gross Profit, minus (1) direct selling costs incurred on homes sold during the presented period, minus (2) holding costs incurred in the current period on homes sold during the period recorded in sales, marketing, and operating, minus (3) holding costs incurred in prior periods on homes sold in the current period recorded in sales, marketing, and operating, plus (4) other income, net which is primarily composed of interest income earned on our cash and cash equivalents. The composition of our holding costs is described in the footnotes to the reconciliation table below. We define Contribution Margin as Contribution Profit as a percentage of revenue.

We view this metric as an important measure of business performance as it captures the unit level performance isolated to homes sold in a given period and provides comparability across reporting periods. Contribution Profit helps management assess inflows and outflow directly associated with a specific resale cohort.

*Contribution Profit / Margin After Interest*

We define Contribution Profit After Interest as Contribution Profit, minus (1) interest expense associated with homes sold in the presented period and recorded in cost of revenue, minus (2) interest expense associated with homes sold in the presented period, recorded in costs of sales, and previously excluded from Adjusted Gross Profit, and minus (3) interest expense under our senior and mezzanine secured credit facilities and other senior secured debt incurred on homes sold during the period. This includes interest expense recorded in prior periods in which the sale occurred. Our senior and mezzanine secured credit facilities and other senior secured debt are secured by our homes in real estate inventory and drawdowns are made on a per-home basis at the time of purchase and are required to be repaid at the time the homes are sold. See *"—Liquidity and Capital Resources—Financing Activities."* We define Contribution Margin After Interest as Contribution Profit After Interest as a percentage of revenue.

We view this metric as an important measure of business performance. Contribution Profit After Interest helps management assess Contribution Margin performance, per above, when fully burdened with costs of financing.

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The following table presents a reconciliation of our Adjusted Gross Profit, Contribution Profit (Loss) and Contribution Profit (Loss) After Interest to our Gross Profit, which is the most directly comparable GAAP measure, for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| *(in thousands, except percentages and homes sold, unaudited)* | **2025** | **2024** | **2025** | **2024** |
| **Gross profit (GAAP)** | $**9336** | $**17140** | $**34032** | $**61606** |
| *Gross margin* | *7.0%* | *8.2%* | *7.5%* | *8.3%* |
| *Homes sold* | *367* | *615* | *1279* | *2204* |
| **Gross profit per home sold** | $***25.4*** | $***27.9*** | $***26.6*** | $***28.0*** |
| *Adjustments:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate inventory valuation adjustment - current period (1) | 2005 | 848 | 2717 | 1060 |
| &nbsp;&nbsp;&nbsp;&nbsp;Real estate inventory valuation adjustment - prior period (2) | (1056) | (535) | (2741) | (765) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense capitalized (3) | 951 | 1367 | 3614 | 4456 |
| **Adjusted gross profit** | $**11236** | $**18820** | $**37622** | $**66357** |
| *Adjusted gross margin* | *8.5%* | *9.0%* | *8.3%* | *8.9%* |
| *Adjustments:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Direct selling costs (4) | (3471) | (5767) | (11999) | (19197) |
| &nbsp;&nbsp;&nbsp;&nbsp;Holding costs on sales - current period (5)(6) | (436) | (693) | (1957) | (2892) |
| &nbsp;&nbsp;&nbsp;&nbsp;Holding costs on sales - prior period (5)(7) | (435) | (341) | (1007) | (577) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net (8) | 151 | 512 | 691 | 1881 |
| **Contribution profit** | $**7045** | $**12531** | $**23350** | $**45572** |
| *Contribution margin* | *5.3%* | *6.0%* | *5.1%* | *6.1%* |
| *Homes sold* | *367* | *615* | *1279* | *2204* |
| **Contribution profit per home sold** | $***19.2*** | $***20.4*** | $***18.3*** | $***20.7*** |
| *Adjustments:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense capitalized (3) | (951) | (1367) | (3614) | (4456) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense on homes sold - current period (9) | (1252) | (1865) | (6579) | (9787) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense on homes sold - prior period (10) | (1823) | (1687) | (4204) | (2948) |
| **Contribution profit after interest** | $**3019** | $**7612** | $**8953** | $**28381** |
| *Contribution margin after interest* | *2.3%* | *3.7%* | *2.0%* | *3.8%* |
| *Homes sold* | *367* | *615* | *1279* | *2204* |
| **Contribution profit after interest per home sold** | $***8.2*** | $***12.4*** | $***7.0*** | $***12.9*** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Real estate inventory valuation adjustment – current period is the real estate inventory valuation adjustments recorded during the period presented associated with homes that remain in real estate inventory at period end.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Real estate inventory valuation adjustment – prior period is the real estate inventory valuation adjustments recorded in prior periods associated with homes that sold in the period presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Interest expense capitalized represents all interest related costs under our senior and mezzanine secured credit facilities and other senior secured debt, incurred on homes sold in the period presented that were capitalized and expensed in cost of sales at the time of sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Direct selling costs represents selling costs incurred related to homes sold in the period presented. This primarily includes broker commissions and title and escrow closing fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Holding costs primarily include insurance, utilities, homeowners association dues, property taxes, cleaning, and maintenance costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)Represents holding costs incurred on homes sold in the period presented and expensed to Sales, marketing, and operating on the Condensed Consolidated Statements of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)Represents holding costs incurred in prior periods on homes sold in the period presented and expensed to Sales, marketing, and operating on the Condensed Consolidated Statements of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)Other income, net principally represents interest income earned on our cash and cash equivalents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)Represents interest expense under our senior and mezzanine secured credit facilities and other senior secured debt incurred on homes sold in the period presented and expensed to interest expense on the Condensed Consolidated Statements of Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)Represents interest expense under our senior and mezzanine secured credit facilities and other senior secured debt incurred in prior periods on homes sold in the period presented and expensed to interest expense on the Condensed Consolidated Statements of Operations.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 33

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*Adjusted Net Income (Loss) and Adjusted EBITDA*

We also present Adjusted Net Income (Loss) and Adjusted EBITDA, which are non-GAAP financial measures, which our management team uses to assess our underlying financial performance. We believe these measures provide insight into period over period performance, adjusted for non-recurring or non-cash items.

We calculate Adjusted Net Income (Loss) as GAAP Net Income (Loss) adjusted for the change in fair value of warrant liabilities. We define Adjusted Net Income (Loss) Margin as Adjusted Net Income (Loss) as a percentage of revenue.

We calculate Adjusted EBITDA as Adjusted Net Income (Loss) adjusted for interest expense, amortization of capitalized interest, taxes, depreciation and amortization and stock-based compensation expense. We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of revenue.

Adjusted Net Income (Loss) and Adjusted EBITDA are supplemental to our operating performance measures calculated in accordance with GAAP and have important limitations. For example, Adjusted Net Income (Loss) and Adjusted EBITDA exclude the impact of certain costs required to be recorded under GAAP and could differ substantially from similarly titled measures presented by other companies in our industry or companies in other industries. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP.

The following table presents a reconciliation of our Adjusted Net Income (Loss) and Adjusted EBITDA to our GAAP Net Income (Loss), which is the most directly comparable GAAP measure, for the periods indicated:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| *(in thousands, except percentages, unaudited)* | **2025** | **2024** | **2025** | **2024** |
| **Net loss (GAAP)** | $**(11604)** | $**(13537)** | $**(37564)** | $**(44834)** |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | 987 | (14) | 915 | (349) |
| **Adjusted net loss** | $**(10617)** | $**(13551)** | $**(36649)** | $**(45183)** |
| *Adjusted net loss margin* | *(8.0*<br>*)%* | *(6.5*<br>*)%* | *(8.1*<br>*)%* | *(6.1*<br>*)%* |
| *Adjustments:* |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 3646 | 5114 | 10833 | 14600 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of capitalized interest (1) | 951 | 1367 | 3614 | 4456 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | 380 | 24 | 447 | 93 |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 253 | 150 | 712 | 464 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of stock-based compensation | 815 | 715 | 3854 | 7831 |
| **Adjusted EBITDA** | $**(4572)** | $**(6181)** | $**(17189)** | $**(17739)** |
| *Adjusted EBITDA margin* | *(3.4*<br>*)%* | *(3.0*<br>*)%* | *(3.8*<br>*)%* | *(2.4*<br>*)%* |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Amortization of capitalized interest represents all interest related costs under our senior and mezzanine secured credit facilities and other senior secured debt, incurred on homes sold in the period presented that were capitalized and expensed in cost of sales at the time of sale.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 34

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**Results of Operations**

The following details our consolidated results of operations and includes a discussion of our operating results and significant items explaining the material changes in our operating results during the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024.

***Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| *(in thousands, except percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;Cash Offer | $122783 | $202840 | $(80057) | (39.5)% |
| &nbsp;&nbsp;Other | 9898 | 5227 | 4671 | 89.4% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | 132681 | 208067 | (75386) | (36.2)% |
| Cost of revenue: |  |  |  |  |
| &nbsp;&nbsp;Cash Offer | 116430 | 187523 | (71093) | (37.9)% |
| &nbsp;&nbsp;Other | 6915 | 3404 | 3511 | 103.1% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total cost of revenue** | 123345 | 190927 | (67582) | (35.4)% |
| Gross profit: |  |  |  |  |
| &nbsp;&nbsp;Cash Offer | 6353 | 15317 | (8964) | (58.5)% |
| &nbsp;&nbsp;Other | 2983 | 1823 | 1160 | 63.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Gross profit** | 9336 | 17140 | (7804) | (45.5)% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales, marketing and operating | 10141 | 16864 | (6723) | (39.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 5149 | 8254 | (3105) | (37.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology and development | 788 | 947 | (159) | (16.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 16078 | 26065 | (9987) | (38.3)% |
| **Loss from operations** | (6742) | (8925) | 2183 | (24.5)% |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | (987) | 14 | (1001) | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (3646) | (5114) | 1468 | (28.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 151 | 512 | (361) | (70.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (4482) | (4588) | 106 | (2.3)% |
| **Loss before income taxes** | (11224) | (13513) | 2289 | (16.9)% |
| Income tax expense | (380) | (24) | (356) | \* |
| **Net loss** | $(11604) | $(13537) | $1933 | (14.3)% |

---

\* Not meaningful

*Revenue*

Our consolidated revenue decreased by $75.4 million, or 36.2%, to $132.7 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Our Cash Offer solution represents the substantial majority of our business and generated over 90% of our consolidated revenue during each of the three months ended September 30, 2025 and 2024.

Cash Offer revenue decreased by $80.1 million, or 39.5%, to $122.8 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily attributable to lower sales volumes. We sold 367 homes during the three months ended September 30, 2025 compared to 615 homes during the three months ended September 30, 2024, representing a decrease of 40.3%. This decrease in homes sold was primarily due to our ongoing intentional reduction in home acquisition pace over the past year in response to the challenging residential real estate market conditions, resulting in a fewer number of homes in real estate inventory. This intentional reduction has allowed us to balance our real estate inventory levels to potentially optimize our returns in the future as housing affordability challenges and weakened consumer confidence have persisted for an extended period of time, negatively impacting consumer demand for residential real estate.

This decrease in homes sold was partially offset by an increase in the average resale home price from $335,000 in the three months ended September 30, 2024 to $342,000 in the three months ended September 30, 2025. This increase was primarily due to a shift in the mix of homes sold in the respective periods, with a greater percentage of homes sold in geographic markets that tend to share relatively higher median price points during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 35

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Other revenue increased by $4.7 million, or 89.4%, to $9.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was primarily attributable to an increase in B2B Renovate revenue due to higher renovation volumes and a higher average renovation transaction value per home during three months ended September 30, 2025 compared to the three months ended September 30, 2024.

*Cost of Revenue*

Our consolidated cost of revenue decreased by $67.6 million, or 35.4%, to $123.3 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. Our asset-light platform offerings included in Other generally earn a smaller average revenue per transaction than our Cash Offer service, but typically generate higher margins.

Cash Offer cost of revenue decreased by $71.1 million, or 37.9%, to $116.4 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This decrease was primarily attributable to lower sales volumes, which was partially offset by an increase in the real estate inventory valuation adjustment.

Other cost of revenue increased by $3.5 million, or 103.1%, to $6.9 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This increase was primarily attributable to an increase in costs associated with our B2B Renovate business due to higher renovation volumes and a higher average renovation transaction cost per home during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

*Gross Profit*

Our consolidated gross profit margin was 7.0% for the three months ended September 30, 2025 compared to 8.2% for the three months ended September 30, 2024.

Cash Offer gross profit margin was 5.2% for the three months ended September 30, 2025 compared to 7.6% for the three months ended September 30, 2024. The decrease in gross profit margin was primarily due to an increase in the real estate inventory valuation adjustment, from $0.8 million during the three months ended September 30, 2024 to $2.0 million during the three months ended September 30, 2025. The decrease in gross profit margin was also due to a higher average real estate inventory holding period during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024, along with our increased use of pricing adjustments and other incentives in recent periods as we maintained our focus on selling our aged real estate inventory.

Other gross profit margin was 30.1% for the three months ended September 30, 2025 compared to 34.9% for the three months ended September 30, 2024. This decrease in gross profit margin was primarily due to a shift in the product mix of the asset-light platform offerings included in Other during the third quarter of 2025 compared to the third quarter of 2024. B2B Renovate, which generally has lower margins compared to the other offerings included within Other, represented a larger component of Other gross profit during the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

*Sales, Marketing and Operating*

Sales, marketing and operating expense decreased by $6.7 million, or 39.9%, to $10.1 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily attributable to decreased average employee headcount, a decrease in variable costs associated with the decrease in homes sold, and a $0.6 million decrease in advertising expense as we continued to reposition and optimize our marketing efforts in response to the ongoing uneven residential real estate market conditions.

*General and Administrative*

General and administrative expense decreased by $3.1 million, or 37.6%, to $5.1 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily attributable to decreased average employee headcount, a decrease in fees associated with our credit facilities, lower insurance costs, and lower legal and other professional fees.

*Technology and Development*

Technology and development expense decreased by $0.2 million, or 16.8%, to $0.8 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily attributable to lower third-party consulting fees and decreased average employee headcount.

*Change in Fair Value of Warrant Liabilities*

Change in fair value of warrant liabilities represents a loss of $1.0 million for the three months ended September 30, 2025 and a gain of less than $0.1 million for the three months ended September 30, 2024, as a result of the fair value adjustment of our warrant liabilities.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 36

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*Interest Expense*

Interest expense decreased by $1.5 million, or 28.7%, to $3.6 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily attributable to a $85.8 million decrease in the average outstanding balance of our secured credit facilities and other debt, from $278.3 million during the three months ended September 30, 2024 to $192.5 million during the three months ended September 30, 2025. The decrease in expense was also due to a 1.0% decrease in the weighted average variable interest rates associated with our secured credit facilities and other debt.

*Other Income, Net*

Other income, net principally represents interest income earned on our cash and cash equivalents during each of the three months ended September 30, 2025 and 2024.

*Income Tax Expense*

We recorded income tax expense of $0.4 million and less than $0.1 million during the three months ended September 30, 2025 and 2024, respectively, and our effective tax rate was an expense of 3.4% and 0.2% for the respective periods. Our effective tax rate during the three months ended September 30, 2025 differed from the federal statutory rate of 21% primarily due to state taxes and net operating loss carryforwards.

***Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| *(in thousands, except percentages)* | **2025** | **2024** | **$ Change** | **% Change** |
| Revenue: |  |  |  |  |
| &nbsp;&nbsp;Cash Offer | $428687 | $725565 | $(296878) | (40.9)% |
| &nbsp;&nbsp;Other | 25007 | 18982 | 6025 | 31.7% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total revenue** | 453694 | 744547 | (290853) | (39.1)% |
| Cost of revenue: |  |  |  |  |
| &nbsp;&nbsp;Cash Offer | 403079 | 670174 | (267095) | (39.9)% |
| &nbsp;&nbsp;Other | 16583 | 12767 | 3816 | 29.9% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Total cost of revenue** | 419662 | 682941 | (263279) | (38.6)% |
| Gross profit: |  |  |  |  |
| &nbsp;&nbsp;Cash Offer | 25608 | 55391 | (29783) | (53.8)% |
| &nbsp;&nbsp;Other | 8424 | 6215 | 2209 | 35.5% |
| &nbsp;&nbsp;&nbsp;&nbsp;**Gross profit** | 34032 | 61606 | (27574) | (44.8)% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sales, marketing and operating | 37157 | 59546 | (22389) | (37.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 20141 | 30747 | (10606) | (34.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Technology and development | 2794 | 3684 | (890) | (24.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 60092 | 93977 | (33885) | (36.1)% |
| **Loss from operations** | (26060) | (32371) | 6311 | (19.5)% |
| Other income (expense): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Change in fair value of warrant liabilities | (915) | 349 | (1264) | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | (10833) | (14600) | 3767 | (25.8)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Other income, net | 691 | 1881 | (1190) | (63.3)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | (11057) | (12370) | 1313 | (10.6)% |
| **Loss before income taxes** | (37117) | (44741) | 7624 | (17.0)% |
| Income tax expense | (447) | (93) | (354) | 380.6% |
| **Net loss** | $(37564) | $(44834) | $7270 | (16.2)% |

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*Revenue*

Our consolidated revenue decreased by $290.9 million, or 39.1%, to $453.7 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Our Cash Offer solution represents the substantial majority of our business and generated over 90% of our consolidated revenue during each of the nine months ended September 30, 2025 and 2024.

Cash Offer revenue decreased by $296.9 million, or 40.9%, to $428.7 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease was primarily attributable to lower sales volumes. We sold 1,279 homes during the nine months ended September 30, 2025 compared to 2,204 homes during the nine months ended September 30, 2024, representing a decrease of 42.0%. This decrease in homes sold was primarily due to our ongoing

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 37

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intentional reduction in home acquisition pace over the past year in response to the challenging residential real estate market conditions, resulting in a fewer number of homes in real estate inventory. This intentional reduction has allowed us to balance our real estate inventory levels to potentially optimize our returns in the future as housing affordability challenges and weakened consumer confidence have persisted for an extended period of time, negatively impacting consumer demand for residential real estate.

This decrease in homes sold was partially offset by an increase in the average resale home price from $334,000 in the nine months ended September 30, 2024 to $342,000 in the nine months ended September 30, 2025. This increase was primarily due to a shift in the mix of homes sold in the respective periods, with a greater percentage of homes sold in geographic markets that tend to share relatively higher median price points during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024.

Other revenue increased by $6.0 million, or 31.7%, to $25.0 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily attributable to an increase in B2B Renovate revenue due to higher renovation volumes and a higher average renovation transaction value per home during nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This increase in revenue was partially offset by a decrease in revenue associated with the transition from our historical listing service offering as we shifted our focus to our referral partner networks, which includes HomePro, our homebuilder services, our Agent Partnership Program and our agent referral network.

*Cost of Revenue*

Our consolidated cost of revenue decreased by $263.3 million, or 38.6%, to $419.7 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Cash Offer cost of revenue decreased by $267.1 million, or 39.9%, to $403.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This decrease was primarily attributable to lower sales volumes, which was partially offset by an increase in the real estate inventory valuation adjustment.

Other cost of revenue increased by $3.8 million, or 29.9%, to $16.6 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This increase was primarily attributable to an increase in costs associated with our B2B Renovate business due to higher renovation volumes and a higher average renovation transaction cost per home during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, which was partially offset by lower volumes associated with our historical listing service offering as we transitioned our focus to our partner network.

*Gross Profit*

Our consolidated gross profit margin was 7.5% for the nine months ended September 30, 2025 compared to 8.3% for the nine months ended September 30, 2024.

Cash Offer gross profit margin was 6.0% for the nine months ended September 30, 2025 compared to 7.6% for the nine months ended September 30, 2024. The decrease in gross profit margin was primarily due to an increase in the real estate inventory valuation adjustment, from $2.0 million during the nine months ended September 30, 2024 to $4.8 million during the nine months ended September 30, 2025. The decrease in gross profit margin was also due to a higher average real estate inventory holding period during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, along with our increased use of pricing adjustments and other incentives in recent periods as we maintained our focus on selling our aged real estate inventory.

Other gross profit margin was 33.7% for the nine months ended September 30, 2025 compared to 32.7% for the nine months ended September 30, 2024. This increase in gross profit margin was primarily due to a shift in the product mix of the asset-light platform offerings included in Other during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. Our Direct+ institutional buyer program, which generally has one of the higher margin profiles of the offerings included within Other, represented a larger component of Other gross profit during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. This increase in gross profit margin was partially offset by B2B Renovate, which generally has lower margins compared to the other offerings included within Other, also representing a larger component of Other gross profit during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

*Sales, Marketing and Operating*

Sales, marketing and operating expense decreased by $22.4 million, or 37.6%, to $37.2 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease in expense was primarily attributable to decreased average employee headcount, a decrease in variable costs associated with the decrease in homes sold

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 38

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and a $4.1 million decrease in advertising expense as we repositioned and optimized our marketing efforts in response to the ongoing challenging residential real estate market conditions.

*General and Administrative*

General and administrative expense decreased by $10.6 million, or 34.5%, to $20.1 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease in expense was primarily attributable to decreased average employee headcount, a decrease in fees associated with our credit facilities and lower insurance costs. This decrease was partially offset by increased legal and other professional fees.

*Technology and Development*

Technology and development expense decreased by $0.9 million, or 24.2%, to $2.8 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease in expense was primarily attributable to decreased average employee headcount.

*Change in Fair Value of Warrant Liabilities*

Change in fair value of warrant liabilities for the nine months ended September 30, 2025 and 2024 represents a loss of $0.9 million and a gain of $0.3 million, respectively, as a result of the fair value adjustment of our warrant liabilities.

*Interest Expense*

Interest expense decreased by $3.8 million, or 25.8%, to $10.8 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease in expense was primarily attributable to a $52.0 million decrease in the average outstanding balance of our senior and mezzanine secured credit facilities, from $255.5 million during the nine months ended September 30, 2024 to $203.5 million during the nine months ended September 30, 2025. This decrease in expense was also due to a 0.8% decrease in the weighted average variable interest rates associated with our secured credit facilities and other debt.

*Other Income, Net*

Other income, net during the nine months ended September 30, 2025 and 2024 principally represents interest income earned on our cash and cash equivalents. Other income, net also includes gains or losses from the disposal of property and equipment in both periods.

*Income Tax Expense*

We recorded income tax expense of $0.4 million and $0.1 million during the nine months ended September 30, 2025 and 2024, respectively, and our effective tax rate was an expense of 1.2% and 0.2% for the respective periods. Our effective tax rate during the nine months ended September 30, 2025 differed from the federal statutory rate of 21% primarily due to state taxes and net operating loss carryforwards.

**Liquidity and Capital Resources** 

*Overview* 

Cash and cash equivalents balances consist of operating cash on deposit with financial institutions. Our principal sources of liquidity have historically consisted of cash generated from our operations and financing activities.

With the exception of the year ended December 31, 2021, during which we generated net income, we have incurred losses each year from inception and during the three and nine months ended September 30, 2025, and may incur additional losses in the future. Since our launch in 2015, we have invested in the development and expansion of our operations. These investments include improvements in infrastructure and a continual improvement to our software and technology platform. We have also invested in sales and marketing as we have increased our market penetration in existing markets, and grown our business through new market expansion and the increased offering of asset-light platform services.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 39

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While we remain focused on strategically deepening our penetration of existing markets through our asset-light platform offerings, we expect our working capital requirements will continue to increase over the long term as we seek to expand our operations and implement our long-term strategic initiatives over time. In connection with these efforts and to strengthen our balance sheet, we executed the following transactions during the second half of 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Class A Common Stock and Warrant Offering* – During July 2025, we issued and sold 2.9 million shares of our Class A common stock and warrants to purchase up to 1.4 million shares of our Class A common stock, generating gross proceeds of $6.0 million, before deducting placement agent fees and other offering expenses. For additional information, refer above to "*Overview–2025 Capital Raising Activities–Class A Common Stock and Warrant Offering*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Revolving Credit Facility* – In July 2025, we entered into a $15.0 million Revolving Credit Facility. For additional information, refer above to "*Overview–2025 Capital Raising Activities–Revolving Credit Facility*."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•*Sale Agreement* – During August 2025, we entered into the Sale Agreement under which we may offer and sell up to $100.0 million of our Class A common stock from time to time in any manner deemed to be an "at the market" offering. During the three months ended September 30, 2025, we generated aggregate gross proceeds of $21.7 million under the Sale Agreement, before commissions and other offering costs of $0.9 million, and had $78.3 million of remaining availability under the Sale Agreement as of September 30, 2025.

Further, during October 2025, we sold an additional 2,278,953 shares of our Class A common stock under the Sale Agreement for aggregate gross proceeds of $8.5 million, before commissions and other offering costs of $0.3 million. For additional information, refer above to "*Overview–2025 Capital Raising Activities–Sale Agreement*."

We have begun using, and intend to continue using, the net cash proceeds from these transactions for general corporate purposes, including working capital and capital expenditures.

As of September 30, 2025, we had cash and cash equivalents of $31.0 million. We believe this existing cash on hand, proceeds from the resale of homes, fees and commissions earned from our asset-light platform offerings, and cash from future borrowings available under each of our existing credit facilities, or the entry into additional new debt financing arrangements or further issuances of equity securities, will be sufficient to meet our short-term working capital and capital expenditure requirements for at least the next twelve months. However, our ability to fund our working capital and capital expenditure requirements depends on the residential real estate market conditions in the markets in which we operate and in the U.S. in general, and various other general economic, financial, competitive, legislative, regulatory, geopolitical and other conditions that may be beyond our control. The uncertain economic outlook and uneven residential real estate market conditions have impacted, and may continue to impact, our business negatively. Based on these and other current market conditions, as described above, we may continue to seek additional financing. Volatility in the credit markets, rising interest rates and softened consumer demand for residential real estate may have an adverse effect on our ability to obtain additional debt financing, on favorable terms or at all. If we are not able to obtain necessary capital to meet our business objectives, we may need to further stall, moderate or decelerate our expansion activities, which may include various restructuring alternatives and options, including more significant cost reductions, product and operational changes focused on reductions in working capital requirements, including pausing or reducing real estate inventory acquisitions, and other actions to enhance the preservation of cash. If we are able to raise additional funds through further issuances of equity, equity-linked or debt securities, those securities may have rights, preferences or privileges senior to the rights of our Class A common stock, or may require us to agree to unfavorable terms, and our existing stockholders may experience significant dilution.

*Financing Activities*

Our financing activities primarily include borrowings under our secured credit facilities and other debt, Revolving Credit Facility and new issuances of equity. Historically, we have required access to external financing resources in order to fund growth, increase penetration in existing markets, expansion into new markets and other strategic initiatives, and we expect this to continue in the future over the longer term. Our access to capital markets can be impacted by factors outside our control, including economic conditions.

Buying and selling high-valued assets, such as single-family residential homes, is very cash intensive and has a significant impact on our liquidity and capital resources. We use non-recourse secured credit facilities, consisting of both senior secured credit facilities and mezzanine secured credit facilities, to finance a significant portion of our real estate inventory and related home renovations. Our senior and mezzanine secured credit facilities, however, are not fully committed, meaning the applicable lender may not be obligated to advance new loan funds if they choose not to do so. Our ability to obtain and maintain access to these or similar kinds of credit facilities is significant for us to operate the business.

Given the general economic conditions and health of the U.S. residential real estate industry in recent periods, we have increased our focus on growing our asset-light platform offerings, which require lower levels of capital investment as compared to our Cash Offer solution. Additionally, we have reduced our home acquisition pace compared to our historical levels as part of our effort to balance our real estate inventory levels to potentially optimize our return, resulting in a fewer number of homes in real estate inventory. Given we anticipate lower cash requirements as a result of these strategic changes,

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 40

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we lowered the borrowing capacities available under our secured credit facilities at various points during the first half of 2025, to better align with our anticipated financing requirements. The amount of our reduction in borrowing availability also represents debt capacity under our secured credit facilities that we have not historically utilized or relied upon in full. This reduction in the borrowing capacities has also decreased the fees associated with our credit facilities, a trend we expect to persist in the future as our asset-light platform offerings continue to increase and potentially become a more significant component of our operations.

*Senior Secured Credit Facilities* 

The following summarizes certain details related to our senior secured credit facilities (in thousands, except interest rates):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Borrowing Capacity** | **Borrowing Capacity** | **Borrowing Capacity** | **Outstanding** | **Weighted-<br>Average<br>Interest** | **End of <br>Revolving / <br>Withdrawal** | **Final<br>Maturity** |
| **As of September 30, 2025** | **Committed** | **Uncommitted** | **Total** | **Amount** | **Rate** | **Period** | **Date** |
| Senior financial institution 1 | $25000 | $175000 | $200000 | $75389 | 7.11% | December 2025 | June 2026 |
| Senior financial institution 2 |  | 200000 | 200000 |  |  | January 2026 | July 2026 |
| Senior financial institution 3 |  | 150000 | 150000 |  | 7.58% | January 2026 | April 2026 |
| Related party | 25539 | 24461 | 50000 | 4025 | 9.32% | March 2025 | February 2026 |
| Senior financial institution 4 |  | 50000 | 50000 |  | 10.15% | September 2026 | March 2027 |
| &nbsp;&nbsp;**Senior secured credit facilities** | $50539 | $599461 | $650000 | $79414 |  |  |  |

---

As of September 30, 2025, we had five senior secured credit facilities that we use to fund the purchase of homes and build our real estate inventory, four with separate financial institutions and one with a related party, which holds more than 5% of our Class A common stock. Borrowings under the senior secured credit facilities accrue interest at a rate based on a SOFR reference rate, plus a margin which varies by facility. Each of our senior secured credit facilities also have interest rate floors. We may also pay fees on our senior secured credit facilities, including a commitment fee and fees on certain unused portions of the committed borrowing capacity under the respective credit agreements.

Borrowings under our senior secured credit facilities are collateralized by the real estate inventory financed by the senior secured credit facility. The lenders have legal recourse only to the assets securing the debt and do not have general recourse against us with limited exceptions. We have, however, provided limited non-recourse carve-out guarantees under our senior and mezzanine secured credit facilities for certain of the SPEs' obligations. Each senior secured credit facility contains eligibility requirements that govern whether a property can be financed. When we resell a home, the proceeds are used to reduce the corresponding outstanding balance under the related senior and mezzanine secured credit facilities.

During October 2025, we entered into a new 18-month loan and security agreement with a related party. The loan and security agreement provides for a $15.0 million senior secured credit facility, which is comprised of $7.5 million in committed borrowing capacity and $7.5 million that is uncommitted. Borrowings under such senior secured credit facility accrue interest at a rate based on a SOFR reference rate, plus a variable margin, with an interest rate floor.

*Mezzanine Secured Credit Facilities*

In addition to the senior secured credit facilities, we use mezzanine secured credit facilities which are structurally and contractually subordinated to the related senior secured credit facilities. The following summarizes certain details related to our mezzanine secured credit facilities (in thousands, except interest rates):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Borrowing Capacity** | **Borrowing Capacity** | **Borrowing Capacity** | **Outstanding** | **Weighted-<br>Average<br>Interest** | **End of <br>Revolving / <br>Withdrawal** | **Final<br>Maturity** |
| **As of September 30, 2025** | **Committed** | **Uncommitted** | **Total** | **Amount** | **Rate** | **Period** | **Date** |
| Related party facility 1 | $13125 | $21875 | $35000 | $10526 | 13.00% | July 2025 | December 2026 |
| Mezzanine financial institution 1 |  | 45000 | 45000 |  |  | January 2026 | July 2026 |
| Mezzanine financial institution 2 |  | 40000 | 40000 |  | 11.58% | January 2026 | April 2026 |
| Related party facility 2 | 6811 | 15189 | 22000 | 1277 | 13.00% | March 2025 | February 2026 |
| &nbsp;&nbsp;**Mezzanine secured credit facilities** | $19936 | $122064 | $142000 | $11803 |  |  |  |

---

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 41

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As of September 30, 2025, we had four mezzanine secured credit facilities, two with separate financial institutions and two with a related party, which holds more than 5% of our Class A common stock. Borrowings under the mezzanine secured credit facilities accrue interest at a rate based on a SOFR reference rate, plus a margin which varies by facility. Each of our mezzanine secured credit facilities also have interest rate floors. We may also pay fees on our mezzanine secured credit facilities, including a commitment fee and fees on certain unused portions of the committed borrowing capacity under the respective credit agreements.

Borrowings under our mezzanine secured credit facilities are collateralized by a second lien on the real estate inventory financed by the relevant credit facility. The lenders have legal recourse only to the assets securing the debt, and do not have general recourse against us with limited exceptions. When we resell a home, the proceeds are used to reduce the corresponding outstanding balance under the related senior and mezzanine secured credit facilities.

*Covenants for Senior Secured Credit Facilities and Mezzanine Secured Credit Facilities*

Our secured credit facilities include customary representations and warranties, covenants and events of default. Financed properties are subject to customary eligibility criteria and concentration limits. The terms of these facilities and related financing documents require the Company to comply with a number of customary financial and other covenants, such as maintaining certain levels of liquidity, tangible net worth or leverage (ratio of debt to tangible net worth).

As of September 30, 2025, we were in compliance with all covenants and no event of default had occurred. At various points during the nine months ended September 30, 2025, we obtained temporary waivers of certain covenants under certain of our related party credit facilities. In connection with the most recent waiver obtained in July 2025, the associated revolving/withdrawal periods for each facility, as applicable, expired.

*Senior Secured Debt - Other*

We have two borrowing arrangements with financial institutions to support purchases of real estate inventory. Borrowings under each of these arrangements accrue interest at a rate based on a SOFR reference rate, plus a margin, which varies by arrangement. As of September 30, 2025 and December 31, 2024, the weighted-average interest rate under our other senior secured debt was 8.94% and 9.24%, respectively.

*Revolving Credit Facility*

In July 2025, we entered into a three-year, $15.0 million revolving credit facility with a lender (the "Revolving Credit Facility") to support our continued growth and long-term strategic initiatives. Borrowings under the Revolving Credit Facility accrue interest at 8.50% per annum and are secured by certain of our assets. As of September 30, 2025, we had $14.6 million in outstanding borrowings under the Revolving Credit Facility, net of debt financing costs.

The Revolving Credit Facility includes customary financial and other covenants, such as maintaining a minimum level of liquidity, and events of default. As of September 30, 2025, we were in compliance with all covenants and no event of default had occurred.

***Cash Flows***

The following summarizes our cash flows for the nine months ended September 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Nine Months Ended September 30,** | **Nine Months Ended September 30,** |
| *($ in thousands)* | **2025** | **2024** |
| Net cash provided by (used in) operating activities | $16307 | $(12404) |
| Net cash used in investing activities | (1060) | (1199) |
| Net cash used in financing activities | (55229) | (7905) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Net change in cash, cash equivalents and restricted cash** | $(39982) | $(21508) |

---

*Operating Activities* 

Net cash provided by (used in) operating activities was $16.3 million and ($12.4) million for the nine months ended September 30, 2025 and 2024, respectively. For the nine months ended September 30, 2025, net cash provided by operating activities primarily resulted from a $47.0 million decrease in real estate inventory due to our continued focus on selling through our aged real estate inventory and ongoing intentional reduction in home acquisition pace. Net cash provided by operating activities during the nine months ended September 30, 2025 was also impacted by the $37.6 million net loss during the period, which included a $4.8 million non-cash real estate inventory valuation adjustment and $3.9 million of non-cash stock-based compensation expense.

For the nine months ended September 30, 2024, net cash used in operating activities primarily resulted from a $44.8 million net loss during the period, which included $7.8 million of non-cash stock-based compensation expense and a $2.0 million non-cash

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 42

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real estate inventory valuation adjustment. This was partially offset by an $18.0 million decrease in real estate inventory as a result of sales volumes increasing at a higher rate compared to home acquisitions.

*Investing Activities*

Net cash used in investing activities was $1.1 million and $1.2 million during the nine months ended September 30, 2025 and 2024, respectively. Net cash used in investing activities during each of the respective periods principally represents purchases of property and equipment.

*Financing Activities*

Net cash used in financing activities was $55.2 million and $7.9 million during the nine months ended September 30, 2025 and 2024, respectively. Net cash used in financing activities during the nine months ended September 30, 2025 primarily consisted of $456.3 million of repayments of secured credit facilities and other debt, which was partially offset by $360.6 million of borrowings from secured credit facilities and other debt. This net decrease in secured credit facility funding of $95.7 million was related to the decrease in financed real estate inventory during the period, along with reduced borrowing levels as a result of certain secured credit facility lenders advancing new loan funds at a lower rate during the nine months ended September 30, 2025. This was partially offset by $21.7 million of gross proceeds from the Sale Agreement, $15.0 million of borrowings on our Revolving Credit Facility and $6.0 million of gross proceeds from our July 2025 Class A Common Stock and Warrant offering.

Net cash used in financing activities during the nine months ended September 30, 2024 primarily consisted of $635.9 million of repayments of credit facilities and other debt, which was partially offset by $628.1 million of borrowings from credit facilities and other debt. This net decrease in credit facility funding of $7.8 million was directly related to the decrease in financed real estate inventory during the period.

**Material Cash Requirements and Other Obligations** 

Information regarding our material cash requirements and other obligations is provided in Part II, Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Other than as described above under "Liquidity and Capital Resources", there have been no material changes in our material cash requirements and other obligations since December 31, 2024.

**Critical Accounting Estimates**

We prepare our consolidated financial statements in accordance with GAAP. In doing so, we make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the periods presented. Although we believe our estimates, judgments and assumptions are reasonable, actual results may differ from our estimates under different assumptions, judgments or conditions given the inherent uncertainty involved with such matters, which would impact our financial statements. We base our estimates on historical experience and various other assumptions that we believe are reasonable under the circumstances, and we evaluate these estimates on an ongoing basis.

There have been no material changes to the critical accounting estimates included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Our significant accounting policies and methods used in the preparation of our condensed consolidated financial statements are described in *Note 1. Nature of Operations and Significant Accounting Policies* in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1, of this Quarterly Report on Form 10-Q and in the Notes to Consolidated Financial Statements in Part II, Item 8, of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

**Recent Accounting Pronouncements**

For a discussion of recent accounting pronouncements, refer to *Note 1. Nature of Operations and Significant Accounting Policies* in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1, of this Quarterly Report on Form 10-Q.

**Item 3. Quantitative and Qualitative Disclosures About Market Risk.**

There have been no material changes to our exposure to market risk since December 31, 2024. For a discussion of our exposure to market risk, refer to our market risk disclosures set forth in Part II, Item 7A, "Quantitative and Qualitative Disclosures About Market Risk" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 43

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**Item 4. Controls and Procedures.** 

**Limitations on Effectiveness of Disclosure Controls and Procedures**

In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of the disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.

**Evaluation of Disclosure Controls and Procedures**

Our management, with the participation of our principal executive officer and our principal financial officer, evaluated, as of the end of the period covered by this Quarterly Report on Form 10-Q, the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation, our principal executive officer and our principal financial officer have concluded that, as of September 30, 2025, our disclosure controls and procedures were effective at the reasonable assurance level.

**Changes in Internal Control over Financial Reporting**

There were no changes in our internal control over financial reporting, as identified in connection with the evaluation required by Rules 13a-15(e) and 15d-15(e) under the Exchange Act, that occurred during the three months ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 44

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**PART II—OTHER INFORMATION**

**Item 1. Legal Proceedings.**

From time to time, we may become involved in actions, claims, suits and other legal proceedings arising in the ordinary course of our business, including, without limitation, assertions by third parties relating to intellectual property infringement, breaches of contract or warranties or employment-related matters. We are not currently a party to any actions, claims, suits or other legal proceedings arising in the ordinary course of our business, the outcome of which, if determined adversely to us, would individually or in the aggregate have a material adverse effect on our business, financial condition, results of operations and cash flows.

The outcome of litigation is inherently uncertain. If one or more legal matters were resolved against us in a reporting period for amounts above management's expectations, our financial condition, results of operations or cash flows for that reporting period could be adversely impacted, perhaps materially.

Refer to *Note 15. Commitments and Contingencies* in the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for information regarding pending litigation that falls outside the scope of ordinary and routine litigation incidental to our business.

**Item 1A. Risk Factors.**

The Company's risk factors are described in Part I, Item 1A, "Risk Factors", of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There have been no material changes to the Company's risk factors since the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.**

***Sales of Unregistered Equity Securities***

Except as previously disclosed in the Company's Current Report on Form 8-K filed with the SEC on July 28, 2025, no unregistered sales of the Company's equity securities were made during the three months ended September 30, 2025.

***Purchase of Equity Securities***

We did not repurchase shares of our Class A common stock during the three months ended September 30, 2025.

**Item 3. Defaults Upon Senior Securities.**

Not applicable.

**Item 4. Mine Safety Disclosures.**

Not applicable.

**Item 5. Other Information.**

&nbsp;&nbsp;&nbsp;&nbsp;(a) None.

&nbsp;&nbsp;&nbsp;&nbsp;(b) None.

&nbsp;&nbsp;&nbsp;&nbsp;(c) During the three months ended September 30, 2025, no director or "officer" (as defined in Rule 16a-1(f) of the Exchange Act) of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 45

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**Item 6. Exhibits.** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** | **Incorporated by Reference** |
| **Exhibit**<br>**Number** | **Exhibit Description** | **Form** | **File No.** | **Exhibit** | **Filing**<br>**Date** |
| 3.1 | [<u>Fourth Restated Certificate of Incorporation, dated June 13, 2023</u>](https://www.sec.gov/Archives/edgar/data/1825024/000119312523166075/d509592dex31.htm) | 8-K | 001-39641 | 3.1 | 6/13/23 |
| 3.2 | [<u>Amended and Restated Bylaws</u>](https://www.sec.gov/Archives/edgar/data/1825024/000119312523166075/d509592dex33.htm) | 8-K | 001-39641 | 3.3 | 6/13/23 |
| 10.1 | [<u>Form of Securities Purchase Agreement</u>](https://www.sec.gov/Archives/edgar/data/1825024/000119312525165608/d66233dex101.htm) | 8-K | 001-39641 | 10.1 | 7/28/25 |
| 10.2 | [<u>Amendment to the Offerpad Solutions Inc. 2021 Incentive Award Plan</u>](https://www.sec.gov/Archives/edgar/data/1825024/000119312525169368/d26738dex992.htm) | S-8 | 333-289102  | 99.2 | 7/30/25 |
| 10.3\* | [<u>Offerpad Solutions Inc. Amended and Restated Non-Employee Director Compensation Program</u>](opad-ex10_3.htm) |  |  |  |  |
| 31.1\* | [<u>Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)</u>](opad-ex31_1.htm) |  |  |  |  |
| 31.2\* | [<u>Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)</u>](opad-ex31_2.htm) |  |  |  |  |
| 32.1\*\* | [<u>Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350</u>](opad-ex32_1.htm) |  |  |  |  |
| 32.2\*\* | [<u>Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350</u>](opad-ex32_2.htm) |  |  |  |  |
| 101\* | Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I, *Item 1. Financial Statements* of this Quarterly Report on Form 10-Q |  |  |  |  |
| 104\* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |  |  |  |  |

---

\* Filed herewith.

\*\* Furnished herewith.

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 46

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **OFFERPAD SOLUTIONS INC.** | **OFFERPAD SOLUTIONS INC.** |
| Date: November 3, 2025 | By: | /s/ Brian Bair |
|  |  | **Brian Bair** |
|  |  | **Chief Executive Officer and** <br>**Chairman of the Board**<br>**(Principal Executive Officer)** |
| Date: November 3, 2025 | By: | /s/ Peter Knag |
|  |  | **Peter Knag** |
|  |  | **Chief Financial Officer**<br>**(Principal Financial Officer and** <br>**Principal Accounting Officer)** |

---

Offerpad Solutions Inc. \| Third Quarter 2025 Form 10-Q \| 47

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## Exhibit 10.3

**Exhibit 10.3**

**Offerpad SOLUTIONS INC.** 

**AMENDED AND RESTATED NON-EMPLOYEE DIRECTOR COMPENSATION PROGRAM**

Eligible Directors (as defined below) on the board of directors (the "***Board***") of Offerpad Solutions Inc. (the "***Company***") shall be eligible to receive cash and equity compensation as set forth in this Amended and Restated Non-Employee Director Compensation Program (this "***Program***"). The cash and equity compensation described in this Program shall be paid or be made, as applicable, automatically as set forth herein and without further action of the Board, to each member of the Board who is not an employee of the Company or any of its parents, affiliates or subsidiaries, unless such member is determined by the Board to not be eligible to receive compensation under this Program (each, an "***Eligible Director***"), who may be eligible to receive such cash or equity compensation, unless such Eligible Director declines the receipt of such cash or equity compensation by written notice to the Company.

This Program shall become effective upon the Effective Date (as defined below), and shall remain in effect until it is revised or rescinded by further action of the Board. This Program may be amended, modified or terminated by the Board at any time in its sole discretion. No Eligible Director shall have any rights hereunder, except with respect to equity awards granted pursuant to Section 2 of this Program. For purposes of this Program, the "***Effective Date***" shall mean January 1, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Cash Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>Annual Retainers</u>. Each Eligible Director shall be eligible to receive an annual cash retainer of $50,000 for service on the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.<u>Additional Annual Retainers</u>. An Eligible Director shall be eligible to receive the following additional annual cash retainers, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Audit Committee Chairperson</u>. An Eligible Director serving as Chairperson of the Audit Committee shall be eligible to receive an additional annual retainer of $20,000 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Audit Committee Member</u>. An Eligible Director serving as a non-Chairperson member of the Audit Committee shall be eligible to receive an additional annual retainer of $10,000 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Compensation Committee Chairperson</u>. An Eligible Director serving as Chairperson of the Compensation Committee shall be eligible to receive an additional annual retainer of $20,000 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Compensation Committee Member</u>. An Eligible Director serving as a non-Chairperson member of the Compensation Committee shall be eligible to receive an additional annual retainer of $10,000 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Nominating and Governance Committee Chairperson</u>. An Eligible Director serving as Chairperson of the Nominating and Governance Committee shall be eligible to receive an additional annual retainer of $10,000 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <u>Nominating and Governance Committee Member</u>. An Eligible Director serving as a non-Chairperson member of the Nominating and Governance Committee shall be eligible to receive an additional annual retainer of $5,000 for such service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <u>Lead Independent Director</u>. An Eligible Director serving as the Lead Independent Director shall be eligible to receive an additional annual retainer of $25,000 for such service.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.<u>Payment of Retainers</u>. The annual cash retainers described in Sections 1(a) and 1(b) shall be earned on a quarterly basis based on a calendar quarter and shall be paid by the Company in arrears not later than 30 days following the end of each calendar quarter. In the event an Eligible Director does not serve as a director, or in the applicable positions described in Section 1(b), for an entire calendar quarter, the retainer paid to such Eligible Director shall be prorated for the portion of such calendar quarter actually served as a director, or in such position, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Equity Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.<u>General</u>. Eligible Directors shall be granted the equity awards described below. The awards described below shall be granted under and shall be subject to the terms and provisions of the Company's 2021 Incentive Award Plan or any other applicable Company equity incentive plan then-maintained by the Company (such plan, as may be amended from time to time, the "***Equity Plan***") and may be granted subject to the execution and delivery of award agreements, including attached exhibits, in substantially the forms approved by the Board prior to or in connection with such grants. All applicable terms of the Equity Plan apply to this Program as if fully set forth herein, and all grants of equity awards hereby are subject in all respects to the terms of the Equity Plan. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Equity Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.<u>Initial Awards</u>. Each Eligible Director who is initially elected or appointed to serve on the Board shall be granted a Restricted Stock Unit award with a value of $150,000 (each, an "***Initial Award***"), determined in accordance with Section 2(d)(i) below. Each Initial Award automatically shall be granted on the date on which such Eligible Director is appointed or elected to serve on the Board (the "***Election Date***"). Each Initial Award shall vest as to one-third of the Shares subject to such award on the first three anniversaries of such Election Date, subject to continued service through the applicable vesting date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.<u>Annual Awards</u>. An Eligible Director who is serving on the Board as of the date of the annual meeting of the Company's stockholders (the "***Annual Meeting***") each calendar year beginning with calendar year 2026 automatically shall be granted a Restricted Stock Unit award with a value of $75,000 (an "***Annual Award***" and together with the Initial Awards, the "***Director Awards***"), determined in accordance with Section 2(d)(i) below. Each Annual Award shall vest in full on the earlier to occur of (i) the one-year anniversary of the applicable grant date and (ii) the date of the next Annual Meeting following the grant date, subject to continued service through the applicable vesting date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.<u>Provisions Applicable to Awards</u>. With respect to any Director Award granted under this Program:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The number of Restricted Stock Units subject to a Director Award shall be determined by dividing the value of the Director Award by the average closing price of the Company's Common Stock for the 30 consecutive calendar days prior to (and including) the date immediately preceding the applicable grant date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) An Eligible Director's Director Award(s) shall vest in full immediately prior to the occurrence of a Change in Control, to the extent outstanding at such time, if the Eligible Director will not become, as of immediately following such Change in Control, a member of the board of the Company or the ultimate parent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Compensation Limits</u>. Notwithstanding anything to the contrary in this Program, all compensation payable under this Program will be subject to any limits on the maximum amount of non-employee Director compensation set forth in the Equity Plan, as in effect from time to time.

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION**

I, Brian Bair, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Offerpad Solutions Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 3, 2025 | By: | /s/ Brian Bair |
|  |  | **Brian Bair** |
|  |  | **Chief Executive Officer and** <br>**Chairman of the Board**<br>**(Principal Executive Officer)** |

---

------

## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION**

I, Peter Knag, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Offerpad Solutions Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: November 3, 2025 | By: | /s/ Peter Knag |
|  |  | **Peter Knag** |
|  |  | **Chief Financial Officer**<br>**(Principal Financial Officer and**<br>**Principal Accounting Officer)** |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with this Quarterly Report on Form 10-Q of Offerpad Solutions Inc. (the "Company") for the period ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: November 3, 2025 | By: | /s/ Brian Bair |
|  |  | **Brian Bair** |
|  |  | **Chief Executive Officer and** <br>**Chairman of the Board**<br>**(Principal Executive Officer)** |

---

------

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with this Quarterly Report on Form 10-Q of Offerpad Solutions Inc. (the "Company") for the period ended September 30, 2025 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
| Date: November 3, 2025 | By: | /s/ Peter Knag |
|  |  | **Peter Knag** |
|  |  | **Chief Financial Officer**<br>**(Principal Financial Officer and**<br>**Principal Accounting Officer)** |

---

------