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TEMPE, Ariz. - Offerpad Solutions Inc. (NYSE:OPAD), a real estate company specializing in buying and selling homes, has been notified by the New York Stock Exchange (NYSE) of non-compliance with its listing standards. According to InvestingPro data, the company’s current market capitalization stands at $40.25 million, with annual revenue of $918.82 million. On April 10, 2025, the company received a notice due to its average global market capitalization and stockholders’ equity both falling below the required $50 million over a consecutive 30 trading-day period.
In response to the NYSE notification, Offerpad intends to submit a business plan within 45 days to outline actions that will bring the company back into compliance within an 18-month cure period. The NYSE will then have an additional 45 days to review the plan and decide if Offerpad has demonstrated the ability to meet the listing standards within the given timeframe. The company’s stock has faced significant challenges, with InvestingPro data showing a 79.52% decline over the past year.
The notification does not immediately affect the listing of Offerpad’s Class A common stock. If the NYSE accepts the company’s plan, trading will continue as usual during the cure period, provided that Offerpad adheres to other listing standards and undergoes periodic review by the NYSE. Failure to submit a timely plan or gain NYSE acceptance could lead to delisting proceedings. InvestingPro analysis reveals concerning metrics, including a high debt-to-equity ratio of 5.3, though the company maintains a current ratio of 1.17, indicating adequate short-term liquidity.
This situation arises amid forward-looking statements from Offerpad regarding its intentions to rectify the compliance issues and its ability to maintain NYSE listing standards in the future. However, actual outcomes may differ due to various risk factors, including the company’s ability to regain compliance, general economic conditions, and the health of the U.S. residential real estate market.
Offerpad, which has been operational since 2015, emphasizes its commitment to simplifying real estate transactions through its platform, offering services ranging from cash offers to renovation solutions and partnership programs. Despite current challenges, the company remains focused on leveraging technology and local expertise to assist homeowners.
The information in this article is based on a press release statement from Offerpad.
In other recent news, Offerpad Solutions Inc. reported its fourth-quarter 2024 earnings with revenue reaching $174 million, aligning with the upper half of its guidance range. Despite this, the company experienced a net loss of $17.3 million for the quarter, although this was a 12% improvement year-over-year. Offerpad’s full-year revenue for 2024 was $919 million, marking a 30% decrease from the previous year. JMP Securities analyst Nicholas Jones recently adjusted Offerpad’s price target to $3.00 from $4.50 while maintaining a Market Outperform rating, citing the company’s efforts to improve its cost structure as a positive factor despite industry challenges.
Additionally, Keefe, Bruyette & Woods analyst Ryan Tomasello revised Offerpad’s price target downward to $2.25 from $3.15, maintaining a Market Perform rating. This adjustment followed Offerpad’s earnings report, which showed earnings falling short of expectations, attributed to higher operating expenses and reduced contribution margins. Offerpad’s guidance for the first quarter of 2025 suggested a weaker-than-expected performance, with revenue projections between $150 million and $170 million. The company aims to achieve adjusted EBITDA breakeven by the end of the year, with plans to expand its property acquisition strategy.
Despite the challenging market conditions, Offerpad has been expanding its asset-light services, which accounted for 33% of its contribution profit after interest in the fourth quarter. The company’s Agent Partnership Program has also shown progress, contributing to more efficient advertising and reduced customer acquisition costs. JMP analysts remain optimistic about Offerpad’s cost-saving measures, noting substantial savings of around $70 million in 2023 and approximately $44 million in 2024. These developments reflect Offerpad’s strategic efforts to adapt and position itself for future growth in a challenging real estate market.
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