In a Q3 2026 earnings report Nov. 2, iBuyer Offerpad, known for giving homeowners cash offers within 24 hours, blamed the less-than-stout housing market for its less-than-stout numbers. 

In a release and press conference, the company reported a net loss of $11.5 million, or $2.30 a share—with total closed real estate transactions numbering 324. Gross profit was $6.5 million, with a gross margin of 8.3%. Contribution profit after interest per real estate transaction was approximately $12,900, near Q2 levels and about double the prior-year quarter. 

On the plus side, the 324 real estate transactions were up from 295 in the second quarter and 263 in the first quarter, marking a steady sequential recovery in activity. 

Brian Bair, Offerpad’s chairman and CEO, explained that high mortgage rates and slowing buyer demand were the main culprits for the lackluster Q3 performance.

“Mortgage rates rose more than 70 basis points from mid-August to early October, putting additional pressure on housing affordability and slowing buyer demand,” he said. “As homes took longer to sell, we adjusted our acquisition criteria to require higher expected returns and became more selective about new purchases, while serving more sellers through Cash Offer Marketplace and Brokerage Services. Having multiple ways to serve homeowners gives us flexibility to keep growing transactions while maintaining capital discipline.” 

“Our focus is converting inventory into cash and continuing to optimize our cost base,” added Andrew Pieper, interim CFO. “Together, we expect those actions to continue to support liquidity and lower the transaction volume required to reach Adjusted EBITDA breakeven.”

Offerpad shares closed the regular session at $2.07, down 4.61% from the previous close of $2.17. In after-hours trading, the stock dipped to $2.05, down 0.97% from the close. From the prior day’s close to the after-hours quote, the shares were down around 5.5%. The stock is trading near the low end of its 52-week range of $2.06 to $26.70, showing how far investor sentiment has weakened over the past year.

Questioned after the formal conference about the current home seller mentality, Bair noted that it has for sure changed. 

“We have seen this thing evolve over the last several years, but I think this is the very first time that a majority of the sellers know it is a buyer’s market,” he said. “They are seeing active listings around their areas continue to increase. The good part about that is that we can buy at wider margins and be more selective about what we are acquiring. 

“Of course, what we have to be very sensitive to is making sure that we are buying the right type of product in the right areas. We are continuing to stick with the interior homes. The outlying areas are definitely impacted more than most areas. Our portfolio still consists of interior homes, newer, not as much renovation. Of course, we still have renovation, but the $100,000 renovation projects that we have done in the past, we are not looking at doing right now.”

Q3 2026 key numbers

• Revenue: $78.1 million, below the $90 million to $100 million guidance range and down from the prior quarter’s level
• Earnings per share: loss of $2.30, versus a forecast loss of $1.58
• Net loss: $11.5 million
• Adjusted EBITDA loss: $7.5 million, compared with a loss of $6.2 million in Q2
• Gross profit: $6.5 million
• Gross margin: 8.3%
• Renovate revenue: $5.2 million, up from $4.8 million in Q2
• Operating expenses excluding property costs: $13.7 million, up slightly from $13.3 million in Q2
• Unrestricted cash: $12.1 million, down from $33.1 million at the end of Q2

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