Years after so-called iBuyers—companies that promised to quickly buy and flip homes using algorithms to make profits—were supposed to take the industry by storm, one of the (relative) new kids on the block is settled in for a longer voyage.
During its Q2 2026 earnings call on Aug. 3, Offerpad Chairman and CEO Brian Bair took a moment to step back and reflect on the last 18 months, after the company “reset” how to approach the business model.
“The rebuilding phase of Offerpad is largely behind us. The buying engine is back on,” he said.
The company, launched in 2015 and going public in 2021, sold a little under 300 homes in Q2 2026, down sharply from over 450 in the same timeframe last year, but with an improving gross profit of $34,500 per home.
“You have high velocity areas of desirable places that people want to live,” Bair said, addressing where the company has seen an increase in contract signings. “In general, I would tell you…it is specifically hyper-focused on our marketing dollars, and marketing to areas that we want to buy homes that we feel strongly that they can move quickly.”
The company’s stock rocketed by over 20% in early trading Tuesday following the report.
Bair noted that the company has spent the last year and a half protecting capital, selling through its aged inventory, resetting its cost structure, putting the right people in place across pricing, operations and every product line—expanding from a single product company into a multi-solution platform—while embedding artificial intelligence across its business.
“None of those investments were made to improve one quarter. They were made to improve the next decade,” said Bair. “We believe those investments are now beginning to translate into measurable operating momentum. The rebuilding phase of Offerpad is largely behind us. The buying engine is back on.”
During the quarter, Offerpad generated $78 million in revenue on 295 closed transactions, while still generating a net loss of $9.3 million.
At its peak, Bair said Offerpad was doing 3,500 transactions a quarter, and the company has repeatedly affirmed that in the long run, it sees 1,000 per quarter as break-even point.
“For the past year, you’ve heard us talk about discipline. You’ve heard (CFO) Peter (Knag) walk through our cost structure. You’ve heard us talk about contribution margins, conversion, and the investments we’ve made in our operating platform,” added Bair.
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At the height of the pandemic boom market, iBuyers accounted for over 20,000 transactions. That plummeted as interest rates shot up, transactions fell and issues arose around the fundamental viability of home-flipping at scale, which depends on quickly purchasing homes and renovating them to turn a profit.
Zillow and Redfin both abandoned their iBuying ventures in 2021 and 2022 respectively, reporting significant losses and laying off staff.
Offerpad, at a much smaller scale, is still touting the strength of the business model, now including more services and products for homeowners. Bair said they have also invested significantly in customer service teams.
In the short-term, Bair said the company has been able to get away with doing fewer renovations, depending on “market specific” conditions.
“Normally the playbook is, when you see more supply, you want to put more renovations in there, have your home sell before the others because yours is the nicest on the block. It is a little different there,” he said.
Offerpad’s sales, marketing and operating expenses fell by almost half, from $13.2 million in Q2 2025 to $7.6 million in 2026.
But Bair urged investors to focus on the big picture, and the near future of real estate, where he said the company is positioned to take advantage of shifting market dynamics and a slow tip toward buyers.
“If Offerpad’s doing their job, (if) we’re doing it right, we should be six months to nine months ahead of what the market is doing and what sellers know what the market is,” he said. “Being a buyer in a buyer’s market is a good place to be—there’s an opportunity there that I think we’re seeing right now as well.”
