Offerpad Solutions reshuffles board, appoints new director

TEMPE, AZ - Offerpad Solutions Inc. (NYSE:OPAD), a real estate sector company with a market capitalization of $35 million, announced significant changes to its board of directors, including the appointment of a new member and a reshuffle of director classes, according to a recent SEC filing. The company’s stock has faced significant headwinds, declining over 80% in the past year, according to InvestingPro data.

The company, headquartered in Tempe, Arizona, disclosed that Sheryl Palmer has resigned from the Board of Directors, effective at the conclusion of the 2025 Annual Meeting of Stockholders. To fill the vacancy, the Board has appointed Donna Corley as a Class II director, with a term expiring at the 2026 Annual Meeting. Corley will also take on the role of chairperson of the Audit Committee and serve on the Nominating Committee. These changes come as the company faces operational challenges, with InvestingPro analysis showing weak gross profit margins of 7.9% and negative EBITDA of $45.4 million in the last twelve months.

Donna Corley, whose selection was based on the Nominating and Corporate Governance Committee’s recommendation, brings no prior arrangement or understanding to the role, nor any related person transactions with Offerpad Solutions. She will be compensated according to the company’s Non-Employee Director Compensation Program and will have the option to defer portions of her compensation under the Deferred Compensation Plan.

In addition to this appointment, the Board has addressed an imbalance in the classification of its directors. Brian Bair, a Class I director, resigned on April 18, 2025, effective after the Annual Meeting, and will be re-elected as a Class III director immediately thereafter. This move, referred to as the "Class Rebalance," aims to achieve equal membership among the classes of directors. Following this change, the Board will consist of two directors in each of the three classes.

Moreover, James Grout, Senior Vice President of Finance, has notified the company of his resignation effective April 30, 2025, to pursue other opportunities.

The changes to the Board and the executive team come at a time when Offerpad Solutions continues to navigate the competitive real estate market. According to InvestingPro analysis, the company currently appears undervalued, though analysts don’t expect profitability this year. With its next earnings report due on May 2, 2025, investors seeking deeper insights can access comprehensive analysis and 12+ additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks including OPAD.

In other recent news, Offerpad Solutions Inc. has been notified by the New York Stock Exchange (NYSE) of non-compliance with its listing standards due to its market capitalization and stockholders’ equity falling below the required $50 million. Offerpad plans to submit a business plan to address these issues within an 18-month cure period. Meanwhile, JMP Securities has adjusted its price target for Offerpad from $4.50 to $3.00, maintaining a Market Outperform rating despite the company’s weaker-than-expected first-quarter 2025 forecast. Keefe, Bruyette & Woods also revised its price target for Offerpad to $2.25 from $3.15, maintaining a Market Perform rating due to underperformance in earnings and increased operating expenses.

Offerpad’s recent earnings report showed revenue meeting expectations, but both GAAP EPS and Adjusted EBITDA fell short of estimates. Despite these challenges, JMP analysts remain optimistic about Offerpad’s cost reduction efforts, noting significant savings in recent years. Offerpad’s expansion of asset-light services, such as its Agent Partnership Program, has contributed to more efficient operations and reduced customer acquisition costs. The company aims to increase property purchases through 2025, with plans to narrow EBITDA losses and achieve near breakeven by year-end. Analysts are closely monitoring Offerpad’s ability to enhance top-line growth and improve its financial performance amid the current industry headwinds.

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