Offerpad at Goldman Sachs Conference: Strategic Shifts in Real Estate

On Thursday, 11 September 2025, Offerpad Solutions Inc (NYSE:OPAD) presented at the Goldman Sachs Communacopia + Technology Conference 2025. The discussion, led by CEO Brian Baer and CFO Peter Kanag, focused on the company’s strategic shift from iBuying to a broader real estate platform. While Offerpad aims for growth with diversified services and improved profit margins, it faces challenges from economic uncertainties and affordability issues in the housing market.

Key Takeaways

• Offerpad is transitioning from focusing solely on home sales to tracking real estate transactions quarterly.
• The company is expanding its services to include cash offers, renovation services, and a marketplace for cash buyers.
• Financial strategies include reducing operating expenses and using technology to enhance pricing accuracy.
• The company is targeting cash flow breakeven and higher profit margins amid market fluctuations.
• Offerpad sees potential in integrating its product lines to strengthen its market position.

Financial Results

• Homes Sold Guidance: Offerpad reaffirmed its guidance to sell between 360 and 410 homes.
• Profit Margins: The company aims for higher spreads on cash offers, targeting high single-digit profit margins.
• Operating Expense Reduction: Significant headcount reductions and negotiations with third-party vendors are in place to manage costs.
• Capital Structure: A non-dilutive capital raise in July extended Offerpad’s financial runway, combining equity and debt.

Operational Updates

• Product Diversification: Offerpad now offers cash buying, renovation services, a marketplace for cash buyers, and the HomePro program.
• Renovation Business: As one of the largest renovation companies in the U.S., Offerpad serves third parties like Fannie Mae and Freddie Mac.
• Direct Plus Platform: Approximately 1,500 cash buyers are part of Offerpad’s marketplace.
• HomePro Program: Offers sellers a range of options to find the best solution for their needs.

Future Outlook

• Market Recovery: Offerpad anticipates a recovery in the real estate market and is preparing for future growth.
• Cash Flow Breakeven: The primary focus is achieving cash flow breakeven and eventually becoming cash flow positive.
• Product Integration: The integration of Offerpad’s four product lines is expected to enhance its market position.

Q&A Highlights

• Seller Expectations: Managing expectations on home prices remains a challenge, with diverse product offerings providing sellers with choices.
• Inventory Strategy: Selective acquisitions and leveraging renovations are key to ensuring quick home sales.
• Pricing Spreads: Offerpad has adjusted pricing spreads to account for market risks, which vary by region.

For a detailed understanding, readers are encouraged to refer to the full conference call transcript.

Full transcript - Goldman Sachs Communacopia + Technology Conference 2025:

Mike Ng, Analyst, Goldman Sachs: To the Offerpad fireside chat presentation at the Goldman Sachs Communicopia and Technology Conference. I have the privilege of introducing both Brian Baer, who’s the, cofounder and CEO of Offerpad, and Peter Kanag, who’s the CFO of Offerpad. My name is Mike Ng, and I cover Offerpad and the real estate technology sector here at Goldman Sachs. We have about thirty five minutes for today’s presentation. Brian, Peter, it’s such a pleasure to have you on stage here with us.

Brian Baer, Cofounder and CEO, Offerpad: Yes. Thank you for inviting us. Brian,

Mike Ng, Analyst, Goldman Sachs: I’d love to start with a conversation just on current market conditions. Could you talk a little bit about the housing market, perhaps some of the affordability challenges and pricing, economic uncertainty and how that may impact buyers and sellers? What’s your view of current trends in the market? Do you see an inflection point in the future when things will see improvement and better velocity?

Brian Baer, Cofounder and CEO, Offerpad: Yes. I mean everything you said is and I know it’s been talked about a lot now, but the affordability and the lock in effect are real things. We see it every day. And so you have sellers that are wanting to stay in their current mortgage rate and you have buyers that the home prices have stayed steady and that can’t afford the new home. And I think that, you know, there’s a stat that came out that 80% of Phoenix couldn’t afford the home now with the new interest rates that they’re living in.

So it’s just it’s all real. So we have been very our approach is to be very selective. You know, we have always my my approach to real estate is always you look at active inventory more than even closed inventory, and I only talk about that a lot, but especially in moments like this, because we are seeing inventory over the last few months, especially mount up in markets that you just don’t normally see inventory mount up in or areas that you don’t see a lot of inventory. So we’ve been really focused on high volume areas that interior high volume, like what I mean a lot of transactions that. And so we’ve been pretty selective about what we’re willing to purchase in the market like that.

Mike Ng, Analyst, Goldman Sachs: Yes. And what characteristics do you see that distinguish a higher velocity market versus a slower one?

Brian Baer, Cofounder and CEO, Offerpad: Definitely interior. The things that we’re seeing a significant slowdown are things on the outlying areas. One, you’re competing with new builds out there and new builders are very aggressive and moving inventory right now. And so but areas that close to jobs, close to just so that’s what you’re seeing the volume. And I’ll tell you that the price points that are the second and third tier homes are moving absolutely more than the first time home buyers, because they’re coming off at least they have a liquidity from selling a home.

They’re coming off to put down as a down payment. It helps them get into that home. So you’re seeing even a lower price point actually getting more pressure than normal just because of the affordability side.

Mike Ng, Analyst, Goldman Sachs: Right, so first time home buyers may have a little bit more of an issue in this environment,

Brian Baer, Cofounder and CEO, Offerpad: which makes sense. It’s important to just like, because home prices haven’t come down, you still have people with a lot of equity in their current So, that’s a big leg up right now in the market, so you can obviously trade into a different home and not having that definitely puts a lot of challenges.

Mike Ng, Analyst, Goldman Sachs: Right. And just while we’re on the topic of macro, mortgage rates have been coming down I a little bit in the last couple of was just wondering if you’re seeing any real impact or real time impact rather trends as a result of what we’ve seen in the last couple

Brian Baer, Cofounder and CEO, Offerpad: of years. So our mortgage rates hit 6.25% a couple of days ago. I think they’re about 6.3% now. And just to tell you the affordability that’s there and how closely people are watching it, it’s like there’s definitely a pent up demand, because we see almost instantly in our showing activity when interest rates drop. And I think you get agents on the call, know, you get people that are watching that closely, because of, you know, there’s definitely people that are wanting or needing to move, but they’re just trying to figure out the right time.

And so, yeah, you can see showing activity, our contract activity picks up almost instantly, and it’s very, very sensitive, which, you know, I’ve been doing this a while, and I had never seen it this sensitive before just of the mortgage rates. But also, I’ve never seen the mortgage rates being this volatile either, you know, up and down in short periods of times.

Mike Ng, Analyst, Goldman Sachs: Great. And kind of bringing it back to Offerpad’s financials, I was wondering if you could talk a little bit about how you’re tracking relative to your homes sold guidance of three sixty to four ten homes. What was assumed in that guidance? Has velocity been better or worse than anticipated?

Peter Kanag, CFO, Offerpad: Yes. We’re on track. So no nothing new on that guidance other than that is that continues to be our guidance. And I just I’d emphasize, as we pointed out in the last earnings call, we are going to pivot haven’t quite landed on exactly how we’re going to present it, but we are going to pivot from homes sold to real estate transactions per quarter. So that is something to come.

Brian Baer, Cofounder and CEO, Offerpad: And it’s important as we’ve talked about this since really we started, but the goal of Offerpad was never to create just an I buyer and just a cash buyer. That’s the foundation of everything we do, and that relieves the most friction from sellers. But the idea was, is to really have a one stop transaction center or platform that people can come to and get whatever they need solved. And so just to focus on just our cash offer business, which is obviously, again, the foundation of what we do. We really want to start, as we and especially as we’re launching some of these other products, really highlighting what some of the the success of the products.

Because, you know, transaction, there’s a lot of different ways to get a real estate transaction, and what we’re focused on is trying to find what’s the best transaction for the seller at that time. And especially in a market like this, you know, we’re seeing sellers that have more urgency. For example, on average, probably since the history of Offerpad, sellers want to close within about thirty four days. That’s our average in eight or nine, ten years. Right?

Lately, it’s been about fifteen days. So the people who want to transact want to move pretty fast, but that’s not for everybody. Then you have some that want to explore the market, and that’s where we could connect them with one of our partner agents, they could list their home. And so just having that and being able to talk more about the transactions. And for us, we just focus on the overall conversion and what’s going be the best for the seller.

Mike Ng, Analyst, Goldman Sachs: Yes. And maybe you can just expand on that a little bit. Why does it make sense to transition from just the Express type of business into everything else?

Brian Baer, Cofounder and CEO, Offerpad: Think it’s and there’s a like so just to kind of lay it out. So we have four main products. We have our cash buying business, which people refer to as the iBuying business. We have our renovate business, which is our renovation business, which we’re people never look at this this way, but we’re one of the largest renovation companies in the country, just doing renovations on our own behalf. And so we but now we have a renovation business that will do renovations for third parties.

We’ll have our Direct Plus business, which think of Direct Plus, which is just a market place for other cash buyers. And then the fourth is our HomePro business. And that is, So now when someone comes to Offerpad, they’ll get a range offer, and then we’ll have of our HomePro partners in that market go down and say, what’s the best thing for the customer? You know, and talk and lay out the foundation. For some people, here’s the good and bad of a cash offer.

The cash offer, you’re in complete control, you can close on your own schedule, But you could be leaving a little bit on the table if you want to market it, to open up to fully market on MLS. And so here’s an option on that end of it. So the really focus of that is finding out what is the best for seller, because when the seller wins, we’re ultimately going to win from a conversion standpoint. And from the renovation business alone, being able to do renovations on our own behalf is efficient as we do. Being able to let others leverage our renovation has been real.

We’re doing renovations now for Fannie and Freddie and renovations for other, I would say cash buyers and markets. And so we let them really plug into our renovations and get the efficiency on that. So everything is just about the efficiency of conversion and trying to find the best solution for everyone who comes to Offerpad.

Mike Ng, Analyst, Goldman Sachs: I was wondering if you could talk a little bit about the competitive landscape. Your primary competitor has seen some leadership changes. I think the market, iBuying overall, has seen a renewed interest from the investment community and the kind of the market writ large. Could you just talk a little bit about what that means for you and how you’re operating the business and the potential for innovation and strategic change that that will

Brian Baer, Cofounder and CEO, Offerpad: Sure. Be Listen, I mean, there’s no it’s been a challenging time for the sector, right, for us and our competitor. And because real estate transactions have been so depressed or just over the last two or three years. But it’s a market environment that’s been extremely challenging because there’s not really one sector, like we talk about the four different products that we have, not one of them because everyone’s business is We’re on the cash buying business, there’s not other people that are buying more homes up our marketplace than we are. There’s on the renovation business, all the everything is depressed at the same time.

It’s so what I love the renewed interest in because I think, you know, people understand that the real estate market’s not going be like this forever. Right? And I know for us, we’re going to come out of this much, much stronger than we were before. I mean, I’m going be a much smarter CEO coming out of this, you know, with the challenge that we’ve had. And you know, from an OpEx perspective, from a technology perspective, and the other products we’ve been able to launch through this, it’s been great.

And just as far as the leadership change, I love, I saw Eric Wu’s back on the board of our competitor there. I’ve known Eric for a long time and I’m glad to see him back in the space. And love to see the interest that’s coming back

Mike Ng, Analyst, Goldman Sachs: Great. Bringing it back to the fundamentals. During the most recent quarter, Offerpad talked a little bit about some of the increased inventory in the market applying a little bit of downward pressure to home prices. Could you just talk a little bit about balancing home acquisitions with pricing, which at the very least comes with a degree of uncertainty in terms of the outlook.

Brian Baer, Cofounder and CEO, Offerpad: Yes. Hardest challenge for us is really seller expectations because most sellers are and I would say, I mean there’s a lot of information that sellers have now that they didn’t have, let’s say ten years ago. So there’s a lot of different and but our biggest challenge is the seller expectations of what their home is potentially worth Because sellers in effect, they’re not looking at all, of course, the data and analytics we’re looking at. And so they say, hey, this house sold, even just we had in some of our look backs last week, we had a seller that was pretty frustrated because their last comp was in December that sold for a certain price. And we’re like and they wanted the same price of something in December.

Like, it’s just so the seller expectations is something that we have to of what we wanna pay. And we wanna try to be as fair and pay the most we can for every home, but also making the best decision. And so what we’re doing now is everything is about us versus risk, right? Anything we talk about underwriting and fancy analytics and AI and all these different things that people like to throw out, it’s really about risk. It’s how do you give yourself enough margin to with the risk.

So we’re being selective about what we’re buying and building in more risk into that and more range in what we’re willing to pay for that home. That helps us. And then also, it’s really important going back to kind of where we started is, now as the supply and demand as a buyer has definitely more inventory to look through. So we really want to leverage our renovation to make sure our homes sell before other homes that are in that same area. So being able to give ourselves more range, but also put a little bit more renovation in our homes.

So people can walk in and they get a felt like new home that’s highly upgraded and making sure our home sells first. And that helps our time to cash, which we want to in normal times, we want to buy, renovate and sell a home in less than one hundred days That’s why we want to own it. And right now, we’ve we’ve expanded that a bit. It’s about a hundred and twenty days that we wanted just because of of of the market. So we want to be selective about what we’re buying, we want to upgrade it.

And but the seller expectations is something that we’re trying to communicate. But that’s also where the other products are extremely helpful because they say, here’s the cash offer. So you don’t have to worry about the other things on the market. We have to worry about that when we buy it. But if that doesn’t work for you, then we’re gonna try to get you somebody on the cash offer side that can pay more than we can through our direct plus channel.

And if that doesn’t work, you can list your home. So just giving them that that those options and and I will tell you the the sellers love the choice that they can feel like what journey they can they can choose. And one of the things that one of our challenges as we talk through that is explaining to our partner agents that we don’t want you to go sell them a product. We want you to provide the solutions to them about what solution fits right for them. And again, give them the good and bad to each one of them.

Because like everything in life, there’s a positive and there’s some negative, depending on what how they look at it. And so really making sure our agents are trained that we’re partnering with when they present these options. And we make sure they’re compensated the same, so they’re not trying to push one way or another, that they can really tell the introduce the seller to the options that works best for them.

Mike Ng, Analyst, Goldman Sachs: Right. Yes. So maybe a listing agent should, at the very least, check what Offerpad is offering in terms of the cash offer before they go down the route of more uncertainty by listing on open market.

Brian Baer, Cofounder and CEO, Offerpad: Exactly. And being able to explain that and just give them saying, hey listen, you see five signs in your neighborhood. And if we list it, here’s what’s going to happen. And a little bit is the seller expectations because again, sellers want to try to do the best and make the most money for their home on that side. And so by being able just to explain it and understand just the path for both is really important.

Peter Kanag, CFO, Offerpad: So I’d just add to that. So we having this broader set of products, Brian was just taking through, from a financial perspective, it gives us the ability to really not feel pressure to target a certain volume. What we target is our price point. And right now, we’re pricing at a certain spread. It’s an attractive spread, and we can stay there.

If that pricing doesn’t work, then we still as long as we transact through Direct Plus or a traditional list, which we also take a fee on, we still get to the same level roughly the same ballpark type of fee. And so it’s a very good dynamic from a profitability perspective, and I think we’ll drive more consistent contribution profit over time.

Brian Baer, Cofounder and CEO, Offerpad: And this is where one of the things is having other cash buyers in what we call Direct Plus. We have roughly around 1,500 other cash buyers that are on our platform that will buy on the platform. Now there’s not that many that are buying actively now, but just in general. And they all have different buying boxes, buying criteria’s areas. For example, a lot of our single family rental partners, they’re not focused on what that home is going to sell for in a hundred days.

They’re focused on what it’s going to rent for. So in a lot of cases, can pay more than we can because it’s more rent of what they’re focused on. Well, then they can pay the seller more money. And so trying to do that and letting the seller understand that when they have come into Offerpad and they have a and they wanted a cash offer, it’s not just us that’s making the offer. It’s we’re running it automatically through our system to see if anything triggers somebody else to buy that home.

And they’ll get the same offer pad experience, really high customer satisfaction. But we and then for us, we don’t balance sheet the home. And then we just we make a fee on that. And so it’s a really good outlet to have now. And so we’re again, that’s just back into trying to find the best solution for the customer and being really customer focused.

Mike Ng, Analyst, Goldman Sachs: Yes. And single family rentals SFR is like one type of buyer on the Direct Plus platform. Like, what are the other flavors of buyer look like?

Brian Baer, Cofounder and CEO, Offerpad: Yeah. There’s a lot of them. So, know, everyone on the SFR, you know, everyone knows the big five, some of the publicly traded SFR’s out there that own a 100,000 plus cones. But that’s only 2% of the market. Most of like especially the rentals are think of like family offices, and and we’ll go down in some of them with a certain level of of we’ll go down to area to to people that specialize in certain areas that fix and flip homes.

And so I mean, just a quick example, there’s there’s there’s specialists that say, listen, they’ll take homes in Tampa that are built in 1965. And their model is they’re gonna go put a couple $100,000 in renovations and really push the value of that home. That’s not our model. But they’re willing, they specialize that area so well, they’ll know what they’re willing to pay for their model so they can pay more more to to to the seller. And the one thing that we know is the more you pay the seller, the more homes that you buy.

And so when it comes to a conversion, we just again trying to find the right path and that will lead to higher conversion across the board.

Mike Ng, Analyst, Goldman Sachs: Yes, that’s great. I wanted to follow-up on just the dynamic of home prices. As you mentioned, you’re seeing some of the interest pick up because of declining mortgage rates. Is that enough to drive home velocity? Like will that be enough to drive us back to mid cycle?

Brian Baer, Cofounder and CEO, Offerpad: Yeah. You know, I I think I would love to see, you know, if I had a magic wand, I’d love to see rates around the five and a half range. I think that would I think then for whatever reason that’s in my mind of going that would be we’d be there. I do think, and this is where we wanna be, like, we’re seeing people pull their homes off the market at rates we’ve never seen before. And so that’s actually kind of hiding some of the inventory numbers that are out there.

Because you have people that are either they don’t really need to sell, but they’re trying to test the waters. In normal markets, going to end up selling at some point. They’re either going out there or seeing what other mortgage rate or what their new mortgage rate is going to be or what they can get for the same price and they’re pulling their home off the market. So that’s definitely leading to a different kind of a different world on that perspective. But yeah, from mortgage rate perspective, we’re watching, we’re already seeing some declines in some areas of home prices.

And home prices residential home prices don’t go down by 10% to 20% overnight, and that’s not what we’re saying at all. But they do go down by 1% or 2% month over month. And so just watching some of these areas and just natural, but again real estate a long time is if you have a lot of inventory and not enough buyers, you have to be very careful that sellers don’t try chasing trying to find a buyer. And that will chase prices down quicker than anything. And that’s where it’s been very resilient.

I will tell you even surprising to us or to me specifically that I haven’t seen more of that chasing down because people are pulling their homes off the market, which is good. It’s keeping home prices to where it’s at, but also it’s keeping the affordability a challenge as well.

Mike Ng, Analyst, Goldman Sachs: Right. Right. And just given all the uncertainty, one thing that you mentioned is that you’re putting in an appropriate spread just given some of the unknowns out there. Like, what is the normalized spread level? Like, how varied is it?

How do you approach your philosophy around spreads?

Brian Baer, Cofounder and CEO, Offerpad: I’ll have him talk specific but let me just he can give you more of the the but I think specifically, I want the one thing I just want to say before Peter jumps in is, it’s definitely market specific and area specific. And like I said, we talked about everything we do is built in with risk. There are definitely some markets right now in some areas we’re building much more risk in. And some areas like Atlanta continues to be a pretty strong market, pretty resilient strong market. There are some areas of for example is in the Austin markets and Denver markets.

And we’ve really pulled back in those markets because you are seeing home prices come down. And I don’t know where that new floor is going to be. So we’re being very careful on that. And so and more than ever, we’re passing on some homes that especially at the higher price point that we can normally see come down at much faster pace. So being careful on that.

When it comes to the margins and things Yes.

Peter Kanag, CFO, Offerpad: So we’ve moved to as we’ve alluded to, we’ve moved to higher spreads on the cash offer. So think high single digits from a profit perspective. We price there’s more room in how we price it, but that builds in the carry cost, the interest and everything like that. But at the end of the day, the ROI or the contribution margin, which both are very similar that we target is up now compared to some prior periods last year. And before that, I would say we were mid single digits, 4% or 5%.

Now we’re 300 basis points higher than that.

Brian Baer, Cofounder and CEO, Offerpad: And the one thing and I probably say it a million times a month, but just to the team is that we want to get smarter with every home that we buy. And so as we talk through that is that this is real estate and you’re going to buy a home thinking certain performance and it doesn’t perform and other homes that perform better. So you have to look at everything from a portfolio standpoint. But we also want to look at, know, and especially now with with, you know, some of the analytics and, know, some of the the AI that we know that that we can somewhat integrate. You know, AI, we’ve been doing AVMs for a long time and it’s machine learning.

But just the simplicity that help other people can use AI and you can you can really integrate into some of your systems. What what makes you smarter with pricing because a lot of the you know, we don’t have to have humans that are making a lot of those decisions. It’s it’s it’s getting us smarter with every home that we buy and what areas we can buy and different even characteristics of homes that it can help us recognize that they’re gonna perform better that and others that that that don’t that a lot of times not just simply machine learning or AVMs can pick up, which has been pretty cool.

Mike Ng, Analyst, Goldman Sachs: I’d love to spend a little bit more time just diving into, I’ll call them like the asset light services. Maybe we can start with Renovate. What are you doing there? Is it mostly a B2B product that you guys use internally? Is there an opportunity to work with other partners, eventually turn this into a consumer offering?

Brian Baer, Cofounder and CEO, Offerpad: So a little bit like Direct Plus with our cash buying business, we’ve been doing Direct Plus since we really started Offerpad. It’s completely grown since then. But Renovate is something we launched a couple of years ago. And so we’re really getting hyper growth there just by adding more and more customers. And so think of the smaller so we really solve two things with other investors sourcing, which how do they find enough product.

And so in most of our markets, people are coming to us first. And so we have a unique opportunity for sourcing. But the second part that they struggle with is the renovation. And that’s and so having our built in renovations, we have boots on the ground in these markets that they can be able to plug in and tie into is key. So we’ll take we have a great partnership with auction.com now with we’re their national renovation partner on that side.

And they have, I want to say, tens of thousands of the Dick’s and Flip people that are on their platform, and and they go to them for sourcing, and we can help them with the renovation. Know, to to people like Fannie and Freddie, I I mission, but also to to but the the the large SFRs have a lot of that built in. Like, you know, they have their own SF I’m sorry, their own renovations. But there’s a 97% that don’t. And so we’ve been really able to leverage our renovation, and we make good margins on that 20% to 30%.

And but for a customer, because of our scale and what we’ve done, even at the size we are right now with the homes we’re buying, they just can’t match our pricing and scale. So they can pay us, we can make a margin and it’s still a really good win for them because we handle all operations as well.

Mike Ng, Analyst, Goldman Sachs: Great. One of the company’s priorities has been to maintain a very predictable contribution profit margin. First, could you talk a little bit about some of the components of that? And then the progress you’ve made in making that predictable for you all and what’s obviously been a more sober macro environment?

Peter Kanag, CFO, Offerpad: Yes. HomePro takes us a long way and the success in rent we don’t break out renovate our third party renovation business separately, but it has exceeded our expectations. And the margins there are very consistent between 2030%. The margins on our other products, if we’re underwriting and selling to an investor or underwriting in selling or assigning to another third party cash offer business or a traditional list, are also quite consistent. The revenue recognition is gross revenue is going to change a little bit as the mix changes because for the cash offer, we recognize if it’s a $500,000 home, we recognize $500,000 of revenue.

If when we buy that home and sell it at a single digit profit, if instead we transact through a traditional list and share in the real estate brokerage fee, we just and there’s a $25,000 fee, we just recognize that $25,000 fee, but it’s a 90 plus percent margin. So contribution, the two things that I’d point out, gross revenue will be a little bit less important from a metric perspective, gross profit will become more and more important. And then number two, margins will be more consistent because the cash offer margin is the most variable across all of our products.

Mike Ng, Analyst, Goldman Sachs: Right. Yes. So just as you diversify away from the cash offer, you’re going to see a lot less volatility in Yes. The top line and the great. I like your word sober in this last market, the last time.

Brian Baer, Cofounder and CEO, Offerpad: It’s definitely been sober.

Mike Ng, Analyst, Goldman Sachs: And then what are you doing on the operating expenses side? What does that look like within Offerpad from, I guess, a sales and marketing perspective, but also from a corporate expense

Brian Baer, Cofounder and CEO, Offerpad: perspective? Yes. You’re speaking Peter’s love language. But let me just before I say that as well, because I mentioned this a little bit earlier, where we are because from buying 10,000 plus homes a year to now really focused on buying and then rolling out these other products, we’ll get back there again when the market gets there. But what we have been focused on is how do we get smarter the second time in growing this, because we’re going to see that growth again.

But how can we do it smarter from an OpEx perspective? How can we leverage technology? How can we leverage this? So the next time it’s not as headcount heavy, but also we’re going to get smarter and more efficient the next time we grow it. So it’s really unique opportunity for us to get much smarter the second time as we continue to scale this.

Peter Kanag, CFO, Offerpad: Yes. I mean OpEx and I’ve run this drill in prior CFO roles as well. It’s not rocket science. There’s two parts to it. One, the people cost and the other is the third party costs.

And so we’ve executed in a very deliberate way across both. We have taken down headcount significantly, and we go through on a regular basis, on a weekly basis, all of our third party spend and have had some tough negotiations with especially some of the larger components of that. So we’re going to keep we’re going continue to hammer at that. We’ve everybody in the business is very focused on it, and they understand that it’s one of our top three or four priorities. The last thing I’d say about that is expense creep is a real thing.

We’re not just taking these expenses out of the business. We’re working every day to make sure that they don’t slip back in. So big priority around

Mike Ng, Analyst, Goldman Sachs: that. Yes.

Brian Baer, Cofounder and CEO, Offerpad: I mean just to give a couple of examples just quickly on that is, as we talk about headcount is in how do we get smarter and use technology. Now when a seller comes to us and wants an offer on their home, they get a range offer almost instantly. And so we use that all through our AVM, all through the analytics and what we’re going to go do. And then that goes through even the way that we inspect the home, we’re using more technology. And before we would have humans look at almost every home, but getting the range off of where we’re at now we marry that with HomePro has been a game changer as far as just cutting costs, but also it’s a better customer experience as well, which is great too.

So again, we’re just leveraging from a strategy standpoint of where we’re going to go. The one thing I will say is, because we talked about the we’re just where this environment has been over the last couple of two to three years. And But I will tell you what we have been very, very happy with and I would say pleasantly surprised and happy is just the amount of sellers we still have come to us every month requesting offers. And so I believe that a cash offer is the best product in real estate. It’s hard for anything to compete because it removes to say, remove the friction and you get a close in your day.

It’s a pretty hard argument, right? And especially if you get the price right, then who wouldn’t take it, right? So that’s been really strong. And so getting people to come here and wanting to know what their home is worth, that’s been great and creates a large opportunity for us to obviously with some of the other products that we’ve

Mike Ng, Analyst, Goldman Sachs: And maybe just in the couple of minutes we have, I can ask a question that for both of you. I guess, could you talk a little bit about your financing and capital needs, whether for running the operations of the business and supporting the cash offer or capital just to support growth in the business? And then I guess putting that together, like what are the growth priorities that you have over the next couple of years?

Peter Kanag, CFO, Offerpad: Yes. So on the financing side, so the most important thing is we’re stepping sequentially closer and closer to cash flow breakeven and then cash flow positive, and that’s in our guidance and is the key focus. We have looked at various different opportunities from a capital structure perspective, and we executed primarily non dilutive capital raise. It was part equity, part debt in July timeframe. So we will so we’re in a very just thinking about our steps towards profitability.

This extended our runway very significantly. We’re feeling really comfortable about where we are from both aspects just operationally from a cost perspective and then with the extra cash on the balance sheet, that’s helpful as well.

Brian Baer, Cofounder and CEO, Offerpad: And I think just from the strategy and where we’re going to go and where I get very, very excited about is that when right now as we see, when I mentioned earlier, I’ll give you the negative and then I’ll give you the positive. The negative, said, you know, it’s been it’s been such challenging times because all four of our products are compressed at the same time. No one’s buying a volume, real estate transactions are down all this. But the positive to that, what gets me excited is also no one’s seen how four of those are all working at one time. And the ability to come in there that we can get back to buying the volume of homes, but then also have all the other asset light solutions across when people are in the real estate mindset again and when the market gets back to whatever normalized is.

The ability that we have to put that all together, like I we’re going to be much, much stronger coming out of this. And that’s super excited about that.

Mike Ng, Analyst, Goldman Sachs: It’s a great place to wrap it up. Awesome. Brian, Peter, thank you so much for being on stage here with us. This has been great.

Brian Baer, Cofounder and CEO, Offerpad: Yes. And thanks for everybody for joining. Appreciate

Peter Kanag, CFO, Offerpad: it. Thank you, Michael.

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