Offerpad Solutions Inc. — Call Transcript 2026

Good afternoon. Welcome to Offerpad's first quarter 2026 Earnings Conference Call. My name is Christine Nguyen, and I will be your conference operator today. At this time, all participant lines have been placed on mute to prevent any background noise. After management's prepared remarks, we will open the call for a question and answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. To withdraw your question, press star one again. With that, I will turn the call over to Cortney Read, Offerpad's Vice President of Investor Relations and Communications. Cortney, please go ahead. Good afternoon. Welcome to Offerpad's first quarter 2026 Earnings Call. During the call today, management will make forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently uncertain. Events could differ significantly from management's expectations. Please refer to the risks, uncertainties, and other factors related to the company's business described in our filings with the U.S. Securities and Exchange Commission. Except as required by applicable law, Offerpad does not intend to update or alter forward-looking statements, whether as a result of new information, future events, or otherwise. On today's call, management will refer to certain non-GAAP financial measures. These metrics exclude certain items discussed in our earnings release and under the heading Non-GAAP Financial Measures. The reconciliations of Offerpad non-GAAP measures to the comparable GAAP measures are available in the financial tables of the first quarter earnings release on Offerpad's website. With that, I'll turn the call over to Brian Bair, Chairman and Chief Executive Officer. Thank you, Cortney, and thank you to everyone for joining us. On the call with me today is our Chief Financial Officer, Peter Knag. Offerpad is executing. Over the past two years, we have evolved from a single product company into a multi-solution real estate platform, and that platform is now producing measurable results. Today, that platform includes Cash Offer, Cash Offer Marketplace, Brokerage Services, and Renovate. The macro environment has shifted since our last call. Geopolitical uncertainty has increased, including ongoing conflict in the Middle East, and interest rates have moved higher in response. Transaction volumes remain below historical norms, and affordability continues to limit mobility. For some sellers, this brings uncertainty around timing and proceeds, keeping many on the sidelines. We continue to refine and enhance our model through diversified revenue streams, multiple solutions, disciplined capital allocation, and AI-driven precision, positioning us to operate effectively in environments like this. While some sellers are still cautious, we are seeing greater stabilization with increased engagement and clearer alignment on pricing and expectations. That shift is supporting improved conversion, and we expect it to remain a tailwind through the remainder of 2026. With all that said, our Cash Offer strategy is not dependent on the macro backdrop changing. We run this business as a capital allocator first and an operator second. Every transaction competes for capital. If it does not meet our return thresholds, we do not transact. Our philosophy is simple: volume follows return, not the other way around. Throughout 2025, that meant deliberately widening spreads, tightening our buy box, and slowing acquisitions rather than chasing volume into an unstable market. That approach pressured short-term volume, but it strengthened the portfolio and preserved optionality. As we move through 2026, we are deploying capital with the same discipline. The result is a portfolio that is cleaner, fast returning, and better positioned for returns than at any other point in recent history. Our aged inventory, homes beyond their target period of hold time, stands today at less than 30 homes, down from fewer than 60 at the end of quarter four. For remaining homes, we deployed buy-down mortgage rate incentives along with pulling other levers to accelerate movement. In addition, we made an important shift in how we operate. By moving to a post-inspection offer model, we are entering commitments with greater certainty, which means stronger transaction quality, more efficient capital deployment, and a better experience for sellers. The bigger narrative is what is happening at the top of our funnel. Seller engagement with Offerpad is growing, and more importantly, sellers are finding solutions. Our multi-solution platform means that when a cash offer is not the right fit, we have options ready, the Cash Offer Marketplace or through our Brokerage Services with an agent-led listing path. More sellers are staying in our ecosystem, converting across more pathways and leaving with a solution that works for their situation. Conversion is what we are focused on, the quality and completeness of every seller engagement. That should position us to scale transaction volume with confidence through the remainder of 2026. A key part of the execution and central to how we move forward is AI. Real estate is a data-intensive, decision-dense industry, and we have spent the last decade building the foundation to do this right. Thousands of transactions, deep market coverage, rich data across pricing, renovations, and homeowner behavior. We believe this is a real operating advantage. With SCOUT and HENRY, we are turning it into a faster, smarter, and more consistent operating model across stages of the transaction. From the moment a seller first engages with Offerpad to the final disposition of properties in our portfolio, AI will be embedded in that decision. That is a fundamentally different way to operate and should be a durable advantage that compounds with every home we touch. Let me start with what it's producing. From January through March, following the deployment of SCOUT across all operating markets, we saw over a 200 basis point improvement in home contracting rates. Let me explain how. SCOUT is an internally developed AI-powered homeowner intake and routing platform that is being rolled out to better understand our seller intent by cross-referencing seller-provided data with third-party sources, public records, and importantly, our own proprietary transaction history to improve acquisition accuracy and routing decisions before every single offer is made. Looking ahead, we are building SCOUT to make our homeowner intake experience fully dynamic and adaptive in real time by personalizing the seller journey based on the solutions available to them. A seller whose home falls outside of acquisition criteria will not be shown a Cash Offer path. Instead, they will be routed to the solution that works for them, guided by our customer solutions advisors every step of the way. That capability is in active development and is a core part of how SCOUT scales in 2026. SCOUT also enhances our call center operations with AI-driven conversation analysis, evaluating homeowner interactions in near real time, giving our advisors live coaching and provides leadership visibility into performance trends and customer intent across thousands of conversations each month. Additionally, that intelligence has been extended upstream into our marketing demand generation, improving how we manage spend, optimize performance, and drive efficiency across channels. As a result, cost per qualified lead is down 37% year-over-year. We're reaching more sellers more efficiently in the markets where we can win. Where SCOUT powers the seller journey, HENRY will help govern the asset. We are expanding HENRY's capabilities throughout 2026, deliberately and in stages. AI-driven property inspection and renovation estimation tools are now live, powered by computer vision models that analyze property images and inspection data to generate renovation cost estimates based on our historical outcomes. Looking ahead, HENRY will guide decisions across renovation scope, listing price, holding time, and overall disposition strategy for every home in the portfolio. A core part of what HENRY will enable is a new segmentation framework that combines macro market dynamics with property-level signals, allowing us to move beyond traditional static pricing approaches. This data-driven model will enhance how we assess demand and liquidity, giving us more consistent and scalable ways to make pricing and acquisition decisions across markets. As we scale this across the platform, it's being designed to improve turn times, strengthen risk management, and drive more disciplined, consistent returns over time. Together, SCOUT and HENRY are the operating architecture of Offerpad's future that will compound with every transaction we complete. On our last call, I shared more details on our focus with our 4-solution platform. Next, I will go into updates and progress on each. Cash Offer remains our core differentiator. It gives sellers speed, certainty, and flexibility, and it continues to be the foundation of everything we build on top of. In Q1, Cash Offer continued to perform within our underwriting guardrails. With HENRY coming online, we expect our acquisition precision is only going to improve. The Cash Offer Marketplace grew over 60% year-over-year in 2025, and remains one of the most capital efficient revenue streams we operate, generating fee income without balance sheet deployment. The residential investment landscape may be shifting with regulatory and capital market dynamics continuing to influence how institutional buyers participate in residential real estate. That environment remains fluid, and we are well-positioned by expanding our network designed for depth and durability, diversified across buyer segments, so no single regulatory or market shift could disrupt the channel. Led by Rich Ford, we are executing against that strategy with discipline. As the network matures, we expect the Cash Offer Marketplace to become a meaningful contributor to gross profit in the second half of 2026. Offerpad's Brokerage Services is a core driver of our platform. In quarter one, we referred more qualified sellers to HomePro agents than in all of 2025, and one-third of Cash Offer requests now come through our Agent Partnership Program. This capital-light model expands our reach, lowers acquisition costs, and drives profitability. Offerpad Renovate broke records nearly every quarter in 2025, and we are raising the bar in 2026. In quarter one, Renovate generated $5.7 million in revenue compared to $5.3 million in quarter one of 2025, continuing to deliver margins of 20%-30% with no balance sheet capital required. Each solution serves a distinct need, generates its own revenue, and strengthens the whole, ensuring more sellers find a path with us. That breadth improves conversion, reduces risk, and keeps more customers in our ecosystem from first touch to close. Our focus remains on building a profitable, scalable business with superior returns on capital and a platform that performs across market cycles. In closing, I want to speak plainly about where we stand and what I believe. I believe we have built a strong home selling platform. I believe our four solutions give sellers and partners more control, more certainty, and more options than traditional alternatives. I believe the technology we are building in SCOUT and HENRY will make us smarter, faster, and more precise with every single transaction we complete. I believe the people at Offerpad, the team that has worked tirelessly to build this platform, enhance our model, and serve our customers, are among the best in the industry. Our near-term objective remains approximately 1,000 transactions per quarter, the level of which the business reaches Adjusted EBITDA breakeven, and the foundation from which we scale. We are building towards that milestone, and the progress we are making every quarter gives us confidence in that direction. Let me state again, 1,000 transactions per quarter is not the finish line. It's the foundation. The platform we have built is designed to scale, and as it does, every incremental transaction carries more operating leverage, more data, and more intelligence back into the system. What we have built over the last 2 years is not a set of improvements. It is a fundamentally different operating model. The window to understand what Offerpad is becoming before the market fully reflects it is right now, and I intend to use every day to close that gap. I'll now turn the call over to Peter. Thank you, Brian. What Brian described is not just a vision. It is already showing up in our financial results. The investments we have made in our platform, our people, and our operating model are translating into measurable progress, and Q1 is evidence of that. We guided to a range of $70 million-$95 million in revenue and 250-300 transactions, and we delivered, generating $80 million in total revenue across 263 transactions in Q1. That consistency matters. It reflects an operating model that is becoming more predictable, more disciplined, and more capable of scaling efficiently. Gross profit was $5.6 million in Q1 2026, resulting in gross margin of 6.9% for the quarter compared to 6.5% in Q1 2025. As we continue to scale transaction volumes and our mix of fee-based solutions grows, we expect gross margin to improve throughout the remainder of the year. Operating expenses, excluding property selling costs, were $12.2 million, roughly in line with Q4 2025 and down from $16.7 million in Q1 2025. With over $140 million in annualized expenses removed since 2022, our cost base can support significantly higher transaction volumes without proportional overhead growth. That operating leverage is one of the most important drivers of our path to profitability. Adjusted EBITDA loss for the first quarter was $6.7 million, a sequential improvement from Q4 2025 and reflecting continued progress towards our goal of achieving positive Adjusted EBITDA before the end of 2026. We entered Q1 in a position of strength, and we exit in the same way. At quarter end, total liquidity was over $60 million, reflecting unrestricted cash plus the estimated fair market value of our inventory, including $41 million of unrestricted cash. Our 2026 operating framework, based on current plans and assumptions, does not anticipate requiring incremental equity capital to execute. We have the liquidity, the facilities, and the cost structure to scale within our defined guardrails. I want to address directly what I know is on everyone's mind. Can we reach approximately 1,000 transactions per quarter and return to profitability, and how do we get there? Here is the strategy. We closed Q1 with 263 transactions. That is our baseline. To reach our goal, we need to grow sequentially each quarter, and the drivers of that growth are already in motion. SCOUT is improving conversion rates at the top of the funnel. Our Cash Offer Marketplace partner network is expanding, routing more homes to more buyers without balance sheet deployment. As Brian stated, Brokerage Services referred more sellers in Q1 alone than in all of 2025. Renovate continues to grow, adding high-margin fee revenue with every project it completes. Our Q2 guidance represents sequential growth of 14%-33% in transactions over Q1. We expect continued sequential improvement in Q3 and Q4 as conversion improves. Based on our current cost structure and expected product mix, we believe approximately 1,000 transactions per quarter represents our path to Adjusted EBITDA breakeven. Every transaction above that threshold is expected to contribute incremental margin to the bottom line. That is the power of the operating leverage we've built. We do not need to add significant overhead to grow. We need to convert more sellers, and that is exactly what our platform is designed to do. Turning to Q2, we enter the second quarter with a stronger pipeline than we had entering Q1 and continued conversion momentum across the platform. For Q2, we expect 300-350 real estate transactions across Cash Offer, Cash Offer Marketplace, and Brokerage Services, total revenue of $80 million-$90 million, and a narrower Adjusted EBITDA loss compared to Q1, continuing our sequential progression towards positive Adjusted EBITDA before the year-end. Our priorities are clear, and our execution is improving with sequential gains each quarter, a healthier portfolio every month, and a smarter AI system with every transaction. That is how we are building our business to scale. I'm excited by the progress we're seeing and what we're building to drive what comes next. With that, we'll now take your questions. Our first question comes from the line of Ryan Tomasello with KBW. Ryan, your line is now open. Hi, everyone. This is Huan Chong on for Ryan. Thanks for taking the questions. Just taking the midpoint of 2Q's guidance, that $85 million revenue over 325 transactions, that gets us to a revenue per transaction that's about 14% lower than 1Q. Is that just going to be the mix shift? If so, could you help break down how you're thinking about the mix between the products? Sure. That's right. The mix, the revenue per transaction is a little bit different across the. As you heard in the prepared remarks, we're heavily focused on conversion. That's the most important driver or KPI operationally for us. We historically, very roughly have had a two-thirds, one-third mix between the products. Two-thirds Cash Offer and one-third the other products, including HomePro and Cash Offer Marketplace. Cash Offer, we target around 5% of the home value for gross profit. The Cash Offer Marketplace is similar to that. Then HomePro is lower. HomePro's about. We split the fee for a traditional real estate listing service with the broker. It tends to be around 1% or 1.5%. As we broaden our product set and increase conversion across these other products, you will see that per transaction figure adjust accordingly. Okay. Got it. That's clear. On just the top of funnel of home sellers, how has that trended to start the year? Recall that you've previously called out that it's roughly 10K to 20K in any given month. Has that accelerated at all? Yeah, that's actually stayed very strong, and continuing to even seeing some growth there as well. You know, our marketing team has been really focused on not just bringing in more, you know, more leads or more sellers, but the quality of sellers. We're seeing really strong, engaged sellers that are coming top of funnel. That definitely stayed strong. Great. Thank you. Thank you. Your next question comes from the line of Dae Lee from JPMorgan. Dae Lee, you're live. All right. Great. Thanks for taking the questions. I wanna go back to the 1,000 per quarter target you guys had out there. I mean, those kind of suggest, like Peter said, a meaningful ramp in the second half to get to that target, and you also have to kind of factor in the seasonality aspect of that. Just curious to hear, like, where, like, the conversion of your platform stands today, and, like, where do you see the opportunity to improve that? Is it on the Cash Offer side? Is it on the other transactions? Is it, like, varied by geography? Just so curiously, could you help us bridge, like, where you are today to the end of the year? Sure. how or what gives you the confidence of virtual one proof? Sure. Thanks for the question, Dae. A couple things that I'd point out. One is we have, you know, while we have historically been a really one product or a little bit, one to two products, now we're three products. Particularly with the addition of the Brokerage Services solution. We're seeing conversion going up based on having additional offers for the top-of-funnel customer and just increasing the likelihood that they choose a solution. Second, 1,000 transactions is we came down intentionally over the, you know, the last couple quarters last year on our Cash Offer volume as we worked on our operations. We're able to ramp that up just based on the adjustments that we're making and the price point that we're putting out there in our buy box characteristics. We, if you look back in 2024, we were doing almost 800 or 900 transactions per quarter. At our high point a couple years ago, we were doing 1,000 transactions per month, not per quarter. We have high confidence that we can get there. Yeah. Just a couple things on that as well. With our current volume, it is going to take a conversion increase of 1%-2% a month to make that happen. You know, one of the things that is important is we are able to now serve customers we were not able to serve before with our listing services. For example, if there were homes that were outside of or out of area, out of our buy box, we simply just could not offer on that with a Cash Offer or through our Cash Offer Marketplace. Now, with Brokerage Services, it changes conversion because we can find a solution to them. With our listing services, the customer gets free moving services, home warranties. It is a really strong, compelling product on why to list with one of our HomePros. That, you know, as we increase conversion, which we're starting to see that now with our different products, and then able to serve customers who weren't before, that's what gives us the confidence towards that 1,000 transactions per quarter. Okay. Thank you. Our last question comes from the line of Gaurav Mehta with AGP. Gaurav, your line is now open. Thanks for taking my question. I wanted to ask you on the thousand transactions and Adjusted EBITDA. Does your Adjusted EBITDA breakeven expectations include renovations in those transactions, or renovations is separate than the transactions? Hi, Gaurav. I think I heard the question correctly. Does the Adjusted EBITDA include the cost of renovations? Absolutely. It's in there in the Cost of Goods Sold as part of the Cash Offer product. Then separately for the B2B third party Renovate business, it's also in the Cost of Goods Sold. Okay. No, actually wanted to ask you on the renovation revenue. To get to Adjusted EBITDA, how much renovation revenue growth are you guys? I see. It is not in the 1,000 transactions. We think of the business, you know, really in two buckets perhaps. One, the customers that are coming to us and are looking to sell their home. We have three products for that, and that's what we are focused around on the 1,000 transactions. That business is a little bit more variable. That's the reason for the focus on 1,000 transactions across those three products. The Renovate business is very consistent and is part of reaching EBITDA and cash flow positive, but it's not part of that 1,000 metric. It is part of the total financials, of course, and part of the EBITDA. It's growing fairly rapidly, and we expect it to continue to grow. Okay. Thanks for that color. Second question I have is on the transaction mix. What was the mix between Cash Offer and other services in the current transactions you reported in 1Q? I know in the past you have talked about maybe 50/50 mix as you approach Adjusted EBITDA breakeven. Is that still the expectation? Yes. In the mix, you can see, on the trending schedules on the IR site, we break out all those details. But the mix has been, as I've mentioned, the mix has been about 1/3, 2/3, 2/3 Cash Offer. Yes, we do expect as we move across the year up towards 1,000 transactions, a larger percentage coming from the other two real estate transaction products. Yeah. The one thing I'll just add to that as well is our Cash Offer Marketplace, and we continue to add other Cash Offer partners in there as well. The people come to Offerpad because they want a Cash Offer. Doesn't necessarily need to be an Offerpad Cash Offer. We wanna find the best solution for them. In our Cash Offer Marketplace, having short-term hold companies as well as long-term hold companies to find the best customer and the best solution for them on the Cash Offer Marketplace. As we continue to grow towards the 1,000, we're expecting the Cash Offer Marketplace to continue to grow and to ramp as we add more and more, even of the, some of the smaller customers on there. It's actually good because we help them source by, they can find homes off of our marketplace. Also we're doing the renovation for those groups as well. Offerpad's benefiting from both of those segments. Okay. Thank you. Maybe one more for me. On the operating expense side, you know, as you ramp up the transactions, do you expect the operating expenses to remain where they are or do you expect any further improvements or any increases on the operating expense side? Yeah, true, true. If you look on the P&L, right, for this quarter, there's $14.5 million of operating expenses. If you look on the non-GAAP reconciliation table, you can see that there are some selling and holding cost expenses in there. It's around $2 million for this quarter. That small piece of operating expenses as in the GAAP reporting is variable, the large majority of it, which is about $12 million, which we highlighted in the prepared remarks, or $12.5 million, is not variable. In fact, we're there are a few more levers that we're working to pull that are harder than the other cost outs that we've done across the last few years. We expect that to actually continue to come down, not as dramatically as we have over time. It was, as a couple of years ago, it was as much as $80 million per quarter. Now we're down to $12.5 million or, with the holding costs, $14.5 million. It won't come down too much more, but we expect it to go down, not up. All right. Thank you. That's all I had. Thank you. There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect.

Speaker 6: Good afternoon. Welcome to Offerpad's first quarter 2026 Earnings Conference Call. My name is Christine Nguyen, and I will be your conference operator today. At this time, all participant lines have been placed on mute to prevent any background noise. After management's prepared remarks, we will open the call for a question and answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. To withdraw your question, press star one again. With that, I will turn the call over to Cortney Read, Offerpad's Vice President of Investor Relations and Communications. Cortney, please go ahead. Good afternoon. good afternoon Welcome to Offerpad's first quarter 2026 Earnings Conference Call. welcome to offerpad's first quarter 2026 earnings conference call My name is Christine Nguyen, and I will be your conference operator today. my name is christine nguyen and i will be your conference operator today At this time, all participant lines have been placed on mute to prevent any background noise. at this time all participant lines have been placed on mute to prevent any background noise After management's prepared remarks, we will open the call for a question and answer session. after management's prepared remarks we will open the call for a question and answer session If you would like to ask a question, please press star followed by the number one on your telephone keypad. if you would like to ask a question please press star followed by the number one on your telephone keypad To withdraw your question, press star one again. to withdraw your question press star one again With that, I will turn the call over to Cortney Read, Offerpad's Vice President of Investor Relations and Communications. with that i will turn the call over to cortney read offerpad's vice president of investor relations and communications Cortney, please go ahead. cortney please go ahead

Speaker 2: Good afternoon. Welcome to Offerpad's first quarter 2026 Earnings Call. During the call today, management will make forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently uncertain. Events could differ significantly from management's expectations. Please refer to the risks, uncertainties, and other factors related to the company's business described in our filings with the U.S. Securities and Exchange Commission. Except as required by applicable law, Offerpad does not intend to update or alter forward-looking statements, whether as a result of new information, future events, or otherwise. On today's call, management will refer to certain non-GAAP financial measures. These metrics exclude certain items discussed in our earnings release and under the heading Non-GAAP Financial Measures. Good afternoon. good afternoon Welcome to Offerpad's first quarter 2026 Earnings Call. welcome to offerpad's first quarter 2026 earnings call During the call today, management will make forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. during the call today management will make forward-looking statements as defined in the private securities litigation reform act of 1995 Forward-looking statements are inherently uncertain. forward-looking statements are inherently uncertain Events could differ significantly from management's expectations. events could differ significantly from management's expectations Please refer to the risks, uncertainties, and other factors related to the company's business described in our filings with the U.S. please refer to the risks uncertainties and other factors related to the company's business described in our filings with the u.s Securities and Exchange Commission. securities and exchange commission Except as required by applicable law, Offerpad does not intend to update or alter forward-looking statements, whether as a result of new information, future events, or otherwise. except as required by applicable law offerpad does not intend to update or alter forward-looking statements whether as a result of new information future events or otherwise On today's call, management will refer to certain non-GAAP financial measures. on today's call management will refer to certain non-gaap financial measures These metrics exclude certain items discussed in our earnings release and under the heading Non-GAAP Financial Measures. these metrics exclude certain items discussed in our earnings release and under the heading non-gaap financial measures The reconciliations of Offerpad non-GAAP measures to the comparable GAAP measures are available in the financial tables of the first quarter earnings release on Offerpad's website. With that, I'll turn the call over to Brian Bair, Chairman and Chief Executive Officer. The reconciliations of Offerpad non-GAAP measures to the comparable GAAP measures are available in the financial tables of the first quarter earnings release on Offerpad's website. the reconciliations of offerpad non-gaap measures to the comparable gaap measures are available in the financial tables of the first quarter earnings release on offerpad's website With that, I'll turn the call over to Brian Bair, Chairman and Chief Executive Officer. with that i'll turn the call over to brian bair chairman and chief executive officer

Speaker 1: Thank you, Cortney, and thank you to everyone for joining us. On the call with me today is our Chief Financial Officer, Peter Knag. Offerpad is executing. Over the past two years, we have evolved from a single product company into a multi-solution real estate platform, and that platform is now producing measurable results. Today, that platform includes Cash Offer, Cash Offer Marketplace, Brokerage Services, and Renovate. The macro environment has shifted since our last call. Geopolitical uncertainty has increased, including ongoing conflict in the Middle East, and interest rates have moved higher in response. Transaction volumes remain below historical norms, and affordability continues to limit mobility. For some sellers, this brings uncertainty around timing and proceeds, keeping many on the sidelines. Thank you, Cortney, and thank you to everyone for joining us. thank you cortney and thank you to everyone for joining us On the call with me today is our Chief Financial Officer, Peter Knag. on the call with me today is our chief financial officer peter knag Offerpad is executing. offerpad is executing Over the past two years, we have evolved from a single product company into a multi-solution real estate platform, and that platform is now producing measurable results. over the past two years we have evolved from a single product company into a multi-solution real estate platform and that platform is now producing measurable results Today, that platform includes Cash Offer, Cash Offer Marketplace, Brokerage Services, and Renovate. today that platform includes cash offer cash offer marketplace brokerage services and renovate The macro environment has shifted since our last call. the macro environment has shifted since our last call Geopolitical uncertainty has increased, including ongoing conflict in the Middle East, and interest rates have moved higher in response. geopolitical uncertainty has increased including ongoing conflict in the middle east and interest rates have moved higher in response Transaction volumes remain below historical norms, and affordability continues to limit mobility. transaction volumes remain below historical norms and affordability continues to limit mobility For some sellers, this brings uncertainty around timing and proceeds, keeping many on the sidelines. for some sellers this brings uncertainty around timing and proceeds keeping many on the sidelines We continue to refine and enhance our model through diversified revenue streams, multiple solutions, disciplined capital allocation, and AI-driven precision, positioning us to operate effectively in environments like this. While some sellers are still cautious, we are seeing greater stabilization with increased engagement and clearer alignment on pricing and expectations. That shift is supporting improved conversion, and we expect it to remain a tailwind through the remainder of 2026. With all that said, our Cash Offer strategy is not dependent on the macro backdrop changing. We run this business as a capital allocator first and an operator second. Every transaction competes for capital. If it does not meet our return thresholds, we do not transact. Our philosophy is simple: volume follows return, not the other way around. We continue to refine and enhance our model through diversified revenue streams, multiple solutions, disciplined capital allocation, and AI-driven precision, positioning us to operate effectively in environments like this. we continue to refine and enhance our model through diversified revenue streams multiple solutions disciplined capital allocation and ai-driven precision positioning us to operate effectively in environments like this While some sellers are still cautious, we are seeing greater stabilization with increased engagement and clearer alignment on pricing and expectations. while some sellers are still cautious we are seeing greater stabilization with increased engagement and clearer alignment on pricing and expectations That shift is supporting improved conversion, and we expect it to remain a tailwind through the remainder of 2026. that shift is supporting improved conversion and we expect it to remain a tailwind through the remainder of 2026 With all that said, our Cash Offer strategy is not dependent on the macro backdrop changing. with all that said our cash offer strategy is not dependent on the macro backdrop changing We run this business as a capital allocator first and an operator second. we run this business as a capital allocator first and an operator second Every transaction competes for capital. every transaction competes for capital If it does not meet our return thresholds, we do not transact. if it does not meet our return thresholds we do not transact Our philosophy is simple: volume follows return, not the other way around. our philosophy is simple volume follows return not the other way around Throughout 2025, that meant deliberately widening spreads, tightening our buy box, and slowing acquisitions rather than chasing volume into an unstable market. That approach pressured short-term volume, but it strengthened the portfolio and preserved optionality. As we move through 2026, we are deploying capital with the same discipline. The result is a portfolio that is cleaner, fast returning, and better positioned for returns than at any other point in recent history. Our aged inventory, homes beyond their target period of hold time, stands today at less than 30 homes, down from fewer than 60 at the end of quarter four. For remaining homes, we deployed buy-down mortgage rate incentives along with pulling other levers to accelerate movement. In addition, we made an important shift in how we operate. Throughout 2025, that meant deliberately widening spreads, tightening our buy box, and slowing acquisitions rather than chasing volume into an unstable market. throughout 2025 that meant deliberately widening spreads tightening our buy box and slowing acquisitions rather than chasing volume into an unstable market That approach pressured short-term volume, but it strengthened the portfolio and preserved optionality. that approach pressured short-term volume but it strengthened the portfolio and preserved optionality As we move through 2026, we are deploying capital with the same discipline. as we move through 2026 we are deploying capital with the same discipline The result is a portfolio that is cleaner, fast returning, and better positioned for returns than at any other point in recent history. the result is a portfolio that is cleaner fast returning and better positioned for returns than at any other point in recent history Our aged inventory, homes beyond their target period of hold time, stands today at less than 30 homes, down from fewer than 60 at the end of quarter four. our aged inventory homes beyond their target period of hold time stands today at less than 30 homes down from fewer than 60 at the end of quarter four For remaining homes, we deployed buy-down mortgage rate incentives along with pulling other levers to accelerate movement. for remaining homes we deployed buy-down mortgage rate incentives along with pulling other levers to accelerate movement In addition, we made an important shift in how we operate. in addition we made an important shift in how we operate By moving to a post-inspection offer model, we are entering commitments with greater certainty, which means stronger transaction quality, more efficient capital deployment, and a better experience for sellers. The bigger narrative is what is happening at the top of our funnel. Seller engagement with Offerpad is growing, and more importantly, sellers are finding solutions. Our multi-solution platform means that when a cash offer is not the right fit, we have options ready, the Cash Offer Marketplace or through our Brokerage Services with an agent-led listing path. More sellers are staying in our ecosystem, converting across more pathways and leaving with a solution that works for their situation. Conversion is what we are focused on, the quality and completeness of every seller engagement. That should position us to scale transaction volume with confidence through the remainder of 2026. By moving to a post-inspection offer model, we are entering commitments with greater certainty, which means stronger transaction quality, more efficient capital deployment, and a better experience for sellers. by moving to a post-inspection offer model we are entering commitments with greater certainty which means stronger transaction quality more efficient capital deployment and a better experience for sellers The bigger narrative is what is happening at the top of our funnel. the bigger narrative is what is happening at the top of our funnel Seller engagement with Offerpad is growing, and more importantly, sellers are finding solutions. seller engagement with offerpad is growing and more importantly sellers are finding solutions Our multi-solution platform means that when a cash offer is not the right fit, we have options ready, the Cash Offer Marketplace or through our Brokerage Services with an agent-led listing path. our multi-solution platform means that when a cash offer is not the right fit we have options ready the cash offer marketplace or through our brokerage services with an agent-led listing path More sellers are staying in our ecosystem, converting across more pathways and leaving with a solution that works for their situation. more sellers are staying in our ecosystem converting across more pathways and leaving with a solution that works for their situation Conversion is what we are focused on, the quality and completeness of every seller engagement. conversion is what we are focused on the quality and completeness of every seller engagement That should position us to scale transaction volume with confidence through the remainder of 2026. that should position us to scale transaction volume with confidence through the remainder of 2026 A key part of the execution and central to how we move forward is AI. Real estate is a data-intensive, decision-dense industry, and we have spent the last decade building the foundation to do this right. Thousands of transactions, deep market coverage, rich data across pricing, renovations, and homeowner behavior. We believe this is a real operating advantage. With SCOUT and HENRY, we are turning it into a faster, smarter, and more consistent operating model across stages of the transaction. From the moment a seller first engages with Offerpad to the final disposition of properties in our portfolio, AI will be embedded in that decision. That is a fundamentally different way to operate and should be a durable advantage that compounds with every home we touch. Let me start with what it's producing. A key part of the execution and central to how we move forward is AI. a key part of the execution and central to how we move forward is ai Real estate is a data-intensive, decision-dense industry, and we have spent the last decade building the foundation to do this right. real estate is a data-intensive decision-dense industry and we have spent the last decade building the foundation to do this right Thousands of transactions, deep market coverage, rich data across pricing, renovations, and homeowner behavior. thousands of transactions deep market coverage rich data across pricing renovations and homeowner behavior We believe this is a real operating advantage. we believe this is a real operating advantage With SCOUT and HENRY, we are turning it into a faster, smarter, and more consistent operating model across stages of the transaction. with scout and henry we are turning it into a faster smarter and more consistent operating model across stages of the transaction From the moment a seller first engages with Offerpad to the final disposition of properties in our portfolio, AI will be embedded in that decision. from the moment a seller first engages with offerpad to the final disposition of properties in our portfolio ai will be embedded in that decision That is a fundamentally different way to operate and should be a durable advantage that compounds with every home we touch. Let me start with what it's producing. that is a fundamentally different way to operate and should be a durable advantage that compounds with every home we touch. let me start with what it's producing From January through March, following the deployment of SCOUT across all operating markets, we saw over a 200 basis point improvement in home contracting rates. Let me explain how. SCOUT is an internally developed AI-powered homeowner intake and routing platform that is being rolled out to better understand our seller intent by cross-referencing seller-provided data with third-party sources, public records, and importantly, our own proprietary transaction history to improve acquisition accuracy and routing decisions before every single offer is made. Looking ahead, we are building SCOUT to make our homeowner intake experience fully dynamic and adaptive in real time by personalizing the seller journey based on the solutions available to them. A seller whose home falls outside of acquisition criteria will not be shown a Cash Offer path. From January through March, following the deployment of SCOUT across all operating markets, we saw over a 200 basis point improvement in home contracting rates. from january through march following the deployment of scout across all operating markets we saw over a 200 basis point improvement in home contracting rates Let me explain how. let me explain how SCOUT is an internally developed AI-powered homeowner intake and routing platform that is being rolled out to better understand our seller intent by cross-referencing seller-provided data with third-party sources, public records, and importantly, our own proprietary transaction history to improve acquisition accuracy and routing decisions before every single offer is made. scout is an internally developed ai-powered homeowner intake and routing platform that is being rolled out to better understand our seller intent by cross-referencing seller-provided data with third-party sources public records and importantly our own proprietary transaction history to improve acquisition accuracy and routing decisions before every single offer is made Looking ahead, we are building SCOUT to make our homeowner intake experience fully dynamic and adaptive in real time by personalizing the seller journey based on the solutions available to them. looking ahead we are building scout to make our homeowner intake experience fully dynamic and adaptive in real time by personalizing the seller journey based on the solutions available to them A seller whose home falls outside of acquisition criteria will not be shown a Cash Offer path. a seller whose home falls outside of acquisition criteria will not be shown a cash offer path Instead, they will be routed to the solution that works for them, guided by our customer solutions advisors every step of the way. That capability is in active development and is a core part of how SCOUT scales in 2026. SCOUT also enhances our call center operations with AI-driven conversation analysis, evaluating homeowner interactions in near real time, giving our advisors live coaching and provides leadership visibility into performance trends and customer intent across thousands of conversations each month. Additionally, that intelligence has been extended upstream into our marketing demand generation, improving how we manage spend, optimize performance, and drive efficiency across channels. As a result, cost per qualified lead is down 37% year-over-year. We're reaching more sellers more efficiently in the markets where we can win. Where SCOUT powers the seller journey, HENRY will help govern the asset. Instead, they will be routed to the solution that works for them, guided by our customer solutions advisors every step of the way. instead they will be routed to the solution that works for them guided by our customer solutions advisors every step of the way That capability is in active development and is a core part of how SCOUT scales in 2026. that capability is in active development and is a core part of how scout scales in 2026 SCOUT also enhances our call center operations with AI-driven conversation analysis, evaluating homeowner interactions in near real time, giving our advisors live coaching and provides leadership visibility into performance trends and customer intent across thousands of conversations each month. scout also enhances our call center operations with ai-driven conversation analysis evaluating homeowner interactions in near real time giving our advisors live coaching and provides leadership visibility into performance trends and customer intent across thousands of conversations each month Additionally, that intelligence has been extended upstream into our marketing demand generation, improving how we manage spend, optimize performance, and drive efficiency across channels. additionally that intelligence has been extended upstream into our marketing demand generation improving how we manage spend optimize performance and drive efficiency across channels As a result, cost per qualified lead is down 37% year-over-year. as a result cost per qualified lead is down 37% year-over-year We're reaching more sellers more efficiently in the markets where we can win. we're reaching more sellers more efficiently in the markets where we can win Where SCOUT powers the seller journey, HENRY will help govern the asset. where scout powers the seller journey henry will help govern the asset We are expanding HENRY's capabilities throughout 2026, deliberately and in stages. AI-driven property inspection and renovation estimation tools are now live, powered by computer vision models that analyze property images and inspection data to generate renovation cost estimates based on our historical outcomes. Looking ahead, HENRY will guide decisions across renovation scope, listing price, holding time, and overall disposition strategy for every home in the portfolio. A core part of what HENRY will enable is a new segmentation framework that combines macro market dynamics with property-level signals, allowing us to move beyond traditional static pricing approaches. This data-driven model will enhance how we assess demand and liquidity, giving us more consistent and scalable ways to make pricing and acquisition decisions across markets. As we scale this across the platform, it's being designed to improve turn times, strengthen risk management, and drive more disciplined, consistent returns over time. We are expanding HENRY's capabilities throughout 2026, deliberately and in stages. we are expanding henry's capabilities throughout 2026 deliberately and in stages AI-driven property inspection and renovation estimation tools are now live, powered by computer vision models that analyze property images and inspection data to generate renovation cost estimates based on our historical outcomes. ai-driven property inspection and renovation estimation tools are now live powered by computer vision models that analyze property images and inspection data to generate renovation cost estimates based on our historical outcomes Looking ahead, HENRY will guide decisions across renovation scope, listing price, holding time, and overall disposition strategy for every home in the portfolio. looking ahead henry will guide decisions across renovation scope listing price holding time and overall disposition strategy for every home in the portfolio A core part of what HENRY will enable is a new segmentation framework that combines macro market dynamics with property-level signals, allowing us to move beyond traditional static pricing approaches. a core part of what henry will enable is a new segmentation framework that combines macro market dynamics with property-level signals allowing us to move beyond traditional static pricing approaches This data-driven model will enhance how we assess demand and liquidity, giving us more consistent and scalable ways to make pricing and acquisition decisions across markets. this data-driven model will enhance how we assess demand and liquidity giving us more consistent and scalable ways to make pricing and acquisition decisions across markets As we scale this across the platform, it's being designed to improve turn times, strengthen risk management, and drive more disciplined, consistent returns over time. as we scale this across the platform it's being designed to improve turn times strengthen risk management and drive more disciplined consistent returns over time Together, SCOUT and HENRY are the operating architecture of Offerpad's future that will compound with every transaction we complete. On our last call, I shared more details on our focus with our 4-solution platform. Next, I will go into updates and progress on each. Cash Offer remains our core differentiator. It gives sellers speed, certainty, and flexibility, and it continues to be the foundation of everything we build on top of. In Q1, Cash Offer continued to perform within our underwriting guardrails. With HENRY coming online, we expect our acquisition precision is only going to improve. The Cash Offer Marketplace grew over 60% year-over-year in 2025, and remains one of the most capital efficient revenue streams we operate, generating fee income without balance sheet deployment. Together, SCOUT and HENRY are the operating architecture of Offerpad's future that will compound with every transaction we complete. together scout and henry are the operating architecture of offerpad's future that will compound with every transaction we complete On our last call, I shared more details on our focus with our 4-solution platform. on our last call i shared more details on our focus with our 4-solution platform Next, I will go into updates and progress on each. next i will go into updates and progress on each Cash Offer remains our core differentiator. cash offer remains our core differentiator It gives sellers speed, certainty, and flexibility, and it continues to be the foundation of everything we build on top of. it gives sellers speed certainty and flexibility and it continues to be the foundation of everything we build on top of In Q1, Cash Offer continued to perform within our underwriting guardrails. in q1 cash offer continued to perform within our underwriting guardrails With HENRY coming online, we expect our acquisition precision is only going to improve. with henry coming online we expect our acquisition precision is only going to improve The Cash Offer Marketplace grew over 60% year-over-year in 2025, and remains one of the most capital efficient revenue streams we operate, generating fee income without balance sheet deployment. the cash offer marketplace grew over 60% year-over-year in 2025 and remains one of the most capital efficient revenue streams we operate generating fee income without balance sheet deployment The residential investment landscape may be shifting with regulatory and capital market dynamics continuing to influence how institutional buyers participate in residential real estate. That environment remains fluid, and we are well-positioned by expanding our network designed for depth and durability, diversified across buyer segments, so no single regulatory or market shift could disrupt the channel. Led by Rich Ford, we are executing against that strategy with discipline. As the network matures, we expect the Cash Offer Marketplace to become a meaningful contributor to gross profit in the second half of 2026. Offerpad's Brokerage Services is a core driver of our platform. In quarter one, we referred more qualified sellers to HomePro agents than in all of 2025, and one-third of Cash Offer requests now come through our Agent Partnership Program. This capital-light model expands our reach, lowers acquisition costs, and drives profitability. The residential investment landscape may be shifting with regulatory and capital market dynamics continuing to influence how institutional buyers participate in residential real estate. the residential investment landscape may be shifting with regulatory and capital market dynamics continuing to influence how institutional buyers participate in residential real estate That environment remains fluid, and we are well-positioned by expanding our network designed for depth and durability, diversified across buyer segments, so no single regulatory or market shift could disrupt the channel. that environment remains fluid and we are well-positioned by expanding our network designed for depth and durability diversified across buyer segments so no single regulatory or market shift could disrupt the channel Led by Rich Ford, we are executing against that strategy with discipline. led by rich ford we are executing against that strategy with discipline As the network matures, we expect the Cash Offer Marketplace to become a meaningful contributor to gross profit in the second half of 2026. as the network matures we expect the cash offer marketplace to become a meaningful contributor to gross profit in the second half of 2026 Offerpad's Brokerage Services is a core driver of our platform. offerpad's brokerage services is a core driver of our platform In quarter one, we referred more qualified sellers to HomePro agents than in all of 2025, and one-third of Cash Offer requests now come through our Agent Partnership Program. in quarter one we referred more qualified sellers to homepro agents than in all of 2025 and one-third of cash offer requests now come through our agent partnership program This capital-light model expands our reach, lowers acquisition costs, and drives profitability. this capital-light model expands our reach lowers acquisition costs and drives profitability Offerpad Renovate broke records nearly every quarter in 2025, and we are raising the bar in 2026. In quarter one, Renovate generated $5.7 million in revenue compared to $5.3 million in quarter one of 2025, continuing to deliver margins of 20%-30% with no balance sheet capital required. Each solution serves a distinct need, generates its own revenue, and strengthens the whole, ensuring more sellers find a path with us. That breadth improves conversion, reduces risk, and keeps more customers in our ecosystem from first touch to close. Our focus remains on building a profitable, scalable business with superior returns on capital and a platform that performs across market cycles. In closing, I want to speak plainly about where we stand and what I believe. I believe we have built a strong home selling platform. Offerpad Renovate broke records nearly every quarter in 2025, and we are raising the bar in 2026. offerpad renovate broke records nearly every quarter in 2025 and we are raising the bar in 2026 In quarter one, Renovate generated $5.7 million in revenue compared to $5.3 million in quarter one of 2025, continuing to deliver margins of 20%-30% with no balance sheet capital required. in quarter one renovate generated $5.7 million in revenue compared to $5.3 million in quarter one of 2025 continuing to deliver margins of 20%-30% with no balance sheet capital required Each solution serves a distinct need, generates its own revenue, and strengthens the whole, ensuring more sellers find a path with us. each solution serves a distinct need generates its own revenue and strengthens the whole ensuring more sellers find a path with us That breadth improves conversion, reduces risk, and keeps more customers in our ecosystem from first touch to close. that breadth improves conversion reduces risk and keeps more customers in our ecosystem from first touch to close Our focus remains on building a profitable, scalable business with superior returns on capital and a platform that performs across market cycles. our focus remains on building a profitable scalable business with superior returns on capital and a platform that performs across market cycles In closing, I want to speak plainly about where we stand and what I believe. in closing i want to speak plainly about where we stand and what i believe I believe we have built a strong home selling platform. i believe we have built a strong home selling platform I believe our four solutions give sellers and partners more control, more certainty, and more options than traditional alternatives. I believe the technology we are building in SCOUT and HENRY will make us smarter, faster, and more precise with every single transaction we complete. I believe the people at Offerpad, the team that has worked tirelessly to build this platform, enhance our model, and serve our customers, are among the best in the industry. Our near-term objective remains approximately 1,000 transactions per quarter, the level of which the business reaches Adjusted EBITDA breakeven, and the foundation from which we scale. We are building towards that milestone, and the progress we are making every quarter gives us confidence in that direction. Let me state again, 1,000 transactions per quarter is not the finish line. It's the foundation. I believe our four solutions give sellers and partners more control, more certainty, and more options than traditional alternatives. i believe our four solutions give sellers and partners more control more certainty and more options than traditional alternatives I believe the technology we are building in SCOUT and HENRY will make us smarter, faster, and more precise with every single transaction we complete. i believe the technology we are building in scout and henry will make us smarter faster and more precise with every single transaction we complete I believe the people at Offerpad, the team that has worked tirelessly to build this platform, enhance our model, and serve our customers, are among the best in the industry. i believe the people at offerpad the team that has worked tirelessly to build this platform enhance our model and serve our customers are among the best in the industry Our near-term objective remains approximately 1,000 transactions per quarter, the level of which the business reaches Adjusted EBITDA breakeven, and the foundation from which we scale. our near-term objective remains approximately 1,000 transactions per quarter the level of which the business reaches adjusted ebitda breakeven and the foundation from which we scale We are building towards that milestone, and the progress we are making every quarter gives us confidence in that direction. we are building towards that milestone and the progress we are making every quarter gives us confidence in that direction Let me state again, 1,000 transactions per quarter is not the finish line. let me state again 1,000 transactions per quarter is not the finish line It's the foundation. it's the foundation The platform we have built is designed to scale, and as it does, every incremental transaction carries more operating leverage, more data, and more intelligence back into the system. What we have built over the last 2 years is not a set of improvements. It is a fundamentally different operating model. The window to understand what Offerpad is becoming before the market fully reflects it is right now, and I intend to use every day to close that gap. I'll now turn the call over to Peter. The platform we have built is designed to scale, and as it does, every incremental transaction carries more operating leverage, more data, and more intelligence back into the system. the platform we have built is designed to scale and as it does every incremental transaction carries more operating leverage more data and more intelligence back into the system What we have built over the last 2 years is not a set of improvements. what we have built over the last 2 years is not a set of improvements It is a fundamentally different operating model. it is a fundamentally different operating model The window to understand what Offerpad is becoming before the market fully reflects it is right now, and I intend to use every day to close that gap. the window to understand what offerpad is becoming before the market fully reflects it is right now and i intend to use every day to close that gap I'll now turn the call over to Peter. i'll now turn the call over to peter

Speaker 7: Thank you, Brian. What Brian described is not just a vision. It is already showing up in our financial results. The investments we have made in our platform, our people, and our operating model are translating into measurable progress, and Q1 is evidence of that. We guided to a range of $70 million-$95 million in revenue and 250-300 transactions, and we delivered, generating $80 million in total revenue across 263 transactions in Q1. That consistency matters. It reflects an operating model that is becoming more predictable, more disciplined, and more capable of scaling efficiently. Gross profit was $5.6 million in Q1 2026, resulting in gross margin of 6.9% for the quarter compared to 6.5% in Q1 2025. Thank you, Brian. thank you brian What Brian described is not just a vision. what brian described is not just a vision It is already showing up in our financial results. it is already showing up in our financial results The investments we have made in our platform, our people, and our operating model are translating into measurable progress, and Q1 is evidence of that. the investments we have made in our platform our people and our operating model are translating into measurable progress and q1 is evidence of that We guided to a range of $70 million-$95 million in revenue and 250-300 transactions, and we delivered, generating $80 million in total revenue across 263 transactions in Q1. we guided to a range of $70 million-$95 million in revenue and 250-300 transactions and we delivered generating $80 million in total revenue across 263 transactions in q1 That consistency matters. that consistency matters It reflects an operating model that is becoming more predictable, more disciplined, and more capable of scaling efficiently. it reflects an operating model that is becoming more predictable more disciplined and more capable of scaling efficiently Gross profit was $5.6 million in Q1 2026, resulting in gross margin of 6.9% for the quarter compared to 6.5% in Q1 2025. gross profit was $5.6 million in q1 2026 resulting in gross margin of 6.9% for the quarter compared to 6.5% in q1 2025 As we continue to scale transaction volumes and our mix of fee-based solutions grows, we expect gross margin to improve throughout the remainder of the year. Operating expenses, excluding property selling costs, were $12.2 million, roughly in line with Q4 2025 and down from $16.7 million in Q1 2025. With over $140 million in annualized expenses removed since 2022, our cost base can support significantly higher transaction volumes without proportional overhead growth. That operating leverage is one of the most important drivers of our path to profitability. Adjusted EBITDA loss for the first quarter was $6.7 million, a sequential improvement from Q4 2025 and reflecting continued progress towards our goal of achieving positive Adjusted EBITDA before the end of 2026. We entered Q1 in a position of strength, and we exit in the same way. As we continue to scale transaction volumes and our mix of fee-based solutions grows, we expect gross margin to improve throughout the remainder of the year. as we continue to scale transaction volumes and our mix of fee-based solutions grows we expect gross margin to improve throughout the remainder of the year Operating expenses, excluding property selling costs, were $12.2 million, roughly in line with Q4 2025 and down from $16.7 million in Q1 2025. operating expenses excluding property selling costs were $12.2 million roughly in line with q4 2025 and down from $16.7 million in q1 2025 With over $140 million in annualized expenses removed since 2022, our cost base can support significantly higher transaction volumes without proportional overhead growth. with over $140 million in annualized expenses removed since 2022 our cost base can support significantly higher transaction volumes without proportional overhead growth That operating leverage is one of the most important drivers of our path to profitability. that operating leverage is one of the most important drivers of our path to profitability Adjusted EBITDA loss for the first quarter was $6.7 million, a sequential improvement from Q4 2025 and reflecting continued progress towards our goal of achieving positive Adjusted EBITDA before the end of 2026. adjusted ebitda loss for the first quarter was $6.7 million a sequential improvement from q4 2025 and reflecting continued progress towards our goal of achieving positive adjusted ebitda before the end of 2026 We entered Q1 in a position of strength, and we exit in the same way. we entered q1 in a position of strength and we exit in the same way At quarter end, total liquidity was over $60 million, reflecting unrestricted cash plus the estimated fair market value of our inventory, including $41 million of unrestricted cash. Our 2026 operating framework, based on current plans and assumptions, does not anticipate requiring incremental equity capital to execute. We have the liquidity, the facilities, and the cost structure to scale within our defined guardrails. I want to address directly what I know is on everyone's mind. Can we reach approximately 1,000 transactions per quarter and return to profitability, and how do we get there? Here is the strategy. We closed Q1 with 263 transactions. That is our baseline. To reach our goal, we need to grow sequentially each quarter, and the drivers of that growth are already in motion. SCOUT is improving conversion rates at the top of the funnel. At quarter end, total liquidity was over $60 million, reflecting unrestricted cash plus the estimated fair market value of our inventory, including $41 million of unrestricted cash. at quarter end total liquidity was over $60 million reflecting unrestricted cash plus the estimated fair market value of our inventory including $41 million of unrestricted cash Our 2026 operating framework, based on current plans and assumptions, does not anticipate requiring incremental equity capital to execute. our 2026 operating framework based on current plans and assumptions does not anticipate requiring incremental equity capital to execute We have the liquidity, the facilities, and the cost structure to scale within our defined guardrails. we have the liquidity the facilities and the cost structure to scale within our defined guardrails I want to address directly what I know is on everyone's mind. i want to address directly what i know is on everyone's mind Can we reach approximately 1,000 transactions per quarter and return to profitability, and how do we get there? can we reach approximately 1,000 transactions per quarter and return to profitability and how do we get there Here is the strategy. here is the strategy We closed Q1 with 263 transactions. we closed q1 with 263 transactions That is our baseline. that is our baseline To reach our goal, we need to grow sequentially each quarter, and the drivers of that growth are already in motion. to reach our goal we need to grow sequentially each quarter and the drivers of that growth are already in motion SCOUT is improving conversion rates at the top of the funnel. scout is improving conversion rates at the top of the funnel Our Cash Offer Marketplace partner network is expanding, routing more homes to more buyers without balance sheet deployment. As Brian stated, Brokerage Services referred more sellers in Q1 alone than in all of 2025. Renovate continues to grow, adding high-margin fee revenue with every project it completes. Our Q2 guidance represents sequential growth of 14%-33% in transactions over Q1. We expect continued sequential improvement in Q3 and Q4 as conversion improves. Based on our current cost structure and expected product mix, we believe approximately 1,000 transactions per quarter represents our path to Adjusted EBITDA breakeven. Every transaction above that threshold is expected to contribute incremental margin to the bottom line. That is the power of the operating leverage we've built. We do not need to add significant overhead to grow. Our Cash Offer Marketplace partner network is expanding, routing more homes to more buyers without balance sheet deployment. our cash offer marketplace partner network is expanding routing more homes to more buyers without balance sheet deployment As Brian stated, Brokerage Services referred more sellers in Q1 alone than in all of 2025. as brian stated brokerage services referred more sellers in q1 alone than in all of 2025 Renovate continues to grow, adding high-margin fee revenue with every project it completes. renovate continues to grow adding high-margin fee revenue with every project it completes Our Q2 guidance represents sequential growth of 14%-33% in transactions over Q1. our q2 guidance represents sequential growth of 14%-33% in transactions over q1 We expect continued sequential improvement in Q3 and Q4 as conversion improves. we expect continued sequential improvement in q3 and q4 as conversion improves Based on our current cost structure and expected product mix, we believe approximately 1,000 transactions per quarter represents our path to Adjusted EBITDA breakeven. based on our current cost structure and expected product mix we believe approximately 1,000 transactions per quarter represents our path to adjusted ebitda breakeven Every transaction above that threshold is expected to contribute incremental margin to the bottom line. every transaction above that threshold is expected to contribute incremental margin to the bottom line That is the power of the operating leverage we've built. that is the power of the operating leverage we've built We do not need to add significant overhead to grow. we do not need to add significant overhead to grow We need to convert more sellers, and that is exactly what our platform is designed to do. Turning to Q2, we enter the second quarter with a stronger pipeline than we had entering Q1 and continued conversion momentum across the platform. For Q2, we expect 300-350 real estate transactions across Cash Offer, Cash Offer Marketplace, and Brokerage Services, total revenue of $80 million-$90 million, and a narrower Adjusted EBITDA loss compared to Q1, continuing our sequential progression towards positive Adjusted EBITDA before the year-end. Our priorities are clear, and our execution is improving with sequential gains each quarter, a healthier portfolio every month, and a smarter AI system with every transaction. That is how we are building our business to scale. I'm excited by the progress we're seeing and what we're building to drive what comes next. We need to convert more sellers, and that is exactly what our platform is designed to do. we need to convert more sellers and that is exactly what our platform is designed to do Turning to Q2, we enter the second quarter with a stronger pipeline than we had entering Q1 and continued conversion momentum across the platform. turning to q2 we enter the second quarter with a stronger pipeline than we had entering q1 and continued conversion momentum across the platform For Q2, we expect 300-350 real estate transactions across Cash Offer, Cash Offer Marketplace, and Brokerage Services, total revenue of $80 million-$90 million, and a narrower Adjusted EBITDA loss compared to Q1, continuing our sequential progression towards positive Adjusted EBITDA before the year-end. for q2 we expect 300-350 real estate transactions across cash offer cash offer marketplace and brokerage services total revenue of $80 million-$90 million and a narrower adjusted ebitda loss compared to q1 continuing our sequential progression towards positive adjusted ebitda before the year-end Our priorities are clear, and our execution is improving with sequential gains each quarter, a healthier portfolio every month, and a smarter AI system with every transaction. our priorities are clear and our execution is improving with sequential gains each quarter a healthier portfolio every month and a smarter ai system with every transaction That is how we are building our business to scale. that is how we are building our business to scale I'm excited by the progress we're seeing and what we're building to drive what comes next. i'm excited by the progress we're seeing and what we're building to drive what comes next With that, we'll now take your questions. With that, we'll now take your questions. with that we'll now take your questions

Speaker 6: Our first question comes from the line of Ryan Tomasello with KBW. Ryan, your line is now open. Our first question comes from the line of Ryan Tomasello with KBW. our first question comes from the line of ryan tomasello with kbw Ryan, your line is now open. ryan your line is now open

Speaker 5: Hi, everyone. This is Huan Chong on for Ryan. Thanks for taking the questions. Just taking the midpoint of 2Q's guidance, that $85 million revenue over 325 transactions, that gets us to a revenue per transaction that's about 14% lower than 1Q. Is that just going to be the mix shift? If so, could you help break down how you're thinking about the mix between the products? Hi, everyone. hi everyone This is Huan Chong on for Ryan. this is huan chong on for ryan Thanks for taking the questions. thanks for taking the questions Just taking the midpoint of 2Q's guidance, that $85 million revenue over 325 transactions, that gets us to a revenue per transaction that's about 14% lower than 1Q. just taking the midpoint of 2q's guidance that $85 million revenue over 325 transactions that gets us to a revenue per transaction that's about 14% lower than 1q Is that just going to be the mix shift? is that just going to be the mix shift If so, could you help break down how you're thinking about the mix between the products? if so could you help break down how you're thinking about the mix between the products

Speaker 7: Sure. That's right. The mix, the revenue per transaction is a little bit different across the. As you heard in the prepared remarks, we're heavily focused on conversion. That's the most important driver or KPI operationally for us. We historically, very roughly have had a two-thirds, one-third mix between the products. Two-thirds Cash Offer and one-third the other products, including HomePro and Cash Offer Marketplace. Cash Offer, we target around 5% of the home value for gross profit. The Cash Offer Marketplace is similar to that. Then HomePro is lower. HomePro's about. Sure. sure That's right. that's right The mix, the revenue per transaction is a little bit different across the. the mix the revenue per transaction is a little bit different across the As you heard in the prepared remarks, we're heavily focused on conversion. as you heard in the prepared remarks we're heavily focused on conversion That's the most important driver or KPI operationally for us. that's the most important driver or kpi operationally for us We historically, very roughly have had a two-thirds, one-third mix between the products. we historically very roughly have had a two-thirds one-third mix between the products Two-thirds Cash Offer and one-third the other products, including HomePro and Cash Offer Marketplace. two-thirds cash offer and one-third the other products including homepro and cash offer marketplace Cash Offer, we target around 5% of the home value for gross profit. cash offer we target around 5% of the home value for gross profit The Cash Offer Marketplace is similar to that. the cash offer marketplace is similar to that Then HomePro is lower. then homepro is lower HomePro's about. homepro's about We split the fee for a traditional real estate listing service with the broker. It tends to be around 1% or 1.5%. As we broaden our product set and increase conversion across these other products, you will see that per transaction figure adjust accordingly. We split the fee for a traditional real estate listing service with the broker. we split the fee for a traditional real estate listing service with the broker It tends to be around 1% or 1.5%. it tends to be around 1% or 1.5% As we broaden our product set and increase conversion across these other products, you will see that per transaction figure adjust accordingly. as we broaden our product set and increase conversion across these other products you will see that per transaction figure adjust accordingly

Speaker 5: Okay. Got it. That's clear. On just the top of funnel of home sellers, how has that trended to start the year? Recall that you've previously called out that it's roughly 10K to 20K in any given month. Has that accelerated at all? Okay. okay Got it. got it That's clear. that's clear On just the top of funnel of home sellers, how has that trended to start the year? on just the top of funnel of home sellers how has that trended to start the year Recall that you've previously called out that it's roughly 10K to 20K in any given month. recall that you've previously called out that it's roughly 10k to 20k in any given month Has that accelerated at all? has that accelerated at all

Speaker 1: Yeah, that's actually stayed very strong, and continuing to even seeing some growth there as well. You know, our marketing team has been really focused on not just bringing in more, you know, more leads or more sellers, but the quality of sellers. We're seeing really strong, engaged sellers that are coming top of funnel. That definitely stayed strong. Yeah, that's actually stayed very strong, and continuing to even seeing some growth there as well. yeah that's actually stayed very strong and continuing to even seeing some growth there as well You know, our marketing team has been really focused on not just bringing in more, you know, more leads or more sellers, but the quality of sellers. you know our marketing team has been really focused on not just bringing in more you know more leads or more sellers but the quality of sellers We're seeing really strong, engaged sellers that are coming top of funnel. we're seeing really strong engaged sellers that are coming top of funnel That definitely stayed strong. that definitely stayed strong

Speaker 5: Great. Thank you. Great. great Thank you. thank you

Speaker 1: Thank you. Thank you. thank you

Speaker 6: Your next question comes from the line of Dae Lee from JPMorgan. Dae Lee, you're live. Your next question comes from the line of Dae Lee from JP Morgan. your next question comes from the line of dae lee from jp morgan Dae Lee, you're live. dae lee you're live

Speaker 3: All right. Great. Thanks for taking the questions. I wanna go back to the 1,000 per quarter target you guys had out there. I mean, those kind of suggest, like Peter said, a meaningful ramp in the second half to get to that target, and you also have to kind of factor in the seasonality aspect of that. Just curious to hear, like, where, like, the conversion of your platform stands today, and, like, where do you see the opportunity to improve that? Is it on the Cash Offer side? Is it on the other transactions? Is it, like, varied by geography? Just so curiously, could you help us bridge, like, where you are today to the end of the year? All right. all right Great. great Thanks for taking the questions. thanks for taking the questions I wanna go back to the 1,000 per quarter target you guys had out there. i wanna go back to the 1,000 per quarter target you guys had out there I mean, those kind of suggest, like Peter said, a meaningful ramp in the second half to get to that target, and you also have to kind of factor in the seasonality aspect of that. i mean those kind of suggest like peter said a meaningful ramp in the second half to get to that target and you also have to kind of factor in the seasonality aspect of that Just curious to hear, like, where, like, the conversion of your platform stands today, and, like, where do you see the opportunity to improve that? just curious to hear like where like the conversion of your platform stands today and like where do you see the opportunity to improve that Is it on the Cash Offer side? is it on the cash offer side Is it on the other transactions? is it on the other transactions Is it, like, varied by geography? is it like varied by geography Just so curiously, could you help us bridge, like, where you are today to the end of the year? just so curiously could you help us bridge like where you are today to the end of the year

Speaker 7: Sure. Sure. sure

Speaker 3: how or what gives you the confidence of virtual one proof? how or what gives you the confidence of virtual one proof? how or what gives you the confidence of virtual one proof

Speaker 7: Sure. Thanks for the question, Dae. A couple things that I'd point out. One is we have, you know, while we have historically been a really one product or a little bit, one to two products, now we're three products. Particularly with the addition of the Brokerage Services solution. We're seeing conversion going up based on having additional offers for the top-of-funnel customer and just increasing the likelihood that they choose a solution. Second, 1,000 transactions is we came down intentionally over the, you know, the last couple quarters last year on our Cash Offer volume as we worked on our operations. Sure. sure Thanks for the question, Dae. thanks for the question dae A couple things that I'd point out. a couple things that i'd point out One is we have, you know, while we have historically been a really one product or a little bit, one to two products, now we're three products. one is we have you know while we have historically been a really one product or a little bit one to two products now we're three products Particularly with the addition of the Brokerage Services solution. particularly with the addition of the brokerage services solution We're seeing conversion going up based on having additional offers for the top-of-funnel customer and just increasing the likelihood that they choose a solution. we're seeing conversion going up based on having additional offers for the top-of-funnel customer and just increasing the likelihood that they choose a solution Second, 1,000 transactions is we came down intentionally over the, you know, the last couple quarters last year on our Cash Offer volume as we worked on our operations. second 1,000 transactions is we came down intentionally over the you know the last couple quarters last year on our cash offer volume as we worked on our operations We're able to ramp that up just based on the adjustments that we're making and the price point that we're putting out there in our buy box characteristics. We, if you look back in 2024, we were doing almost 800 or 900 transactions per quarter. At our high point a couple years ago, we were doing 1,000 transactions per month, not per quarter. We have high confidence that we can get there. We're able to ramp that up just based on the adjustments that we're making and the price point that we're putting out there in our buy box characteristics. we're able to ramp that up just based on the adjustments that we're making and the price point that we're putting out there in our buy box characteristics We, if you look back in 2024, we were doing almost 800 or 900 transactions per quarter. we if you look back in 2024 we were doing almost 800 or 900 transactions per quarter At our high point a couple years ago, we were doing 1,000 transactions per month, not per quarter. at our high point a couple years ago we were doing 1,000 transactions per month not per quarter We have high confidence that we can get there. we have high confidence that we can get there

Speaker 1: Yeah. Just a couple things on that as well. With our current volume, it is going to take a conversion increase of 1%-2% a month to make that happen. You know, one of the things that is important is we are able to now serve customers we were not able to serve before with our listing services. For example, if there were homes that were outside of or out of area, out of our buy box, we simply just could not offer on that with a Cash Offer or through our Cash Offer Marketplace. Now, with Brokerage Services, it changes conversion because we can find a solution to them. With our listing services, the customer gets free moving services, home warranties. It is a really strong, compelling product on why to list with one of our HomePros. Yeah. yeah Just a couple things on that as well. just a couple things on that as well With our current volume, it is going to take a conversion increase of 1%-2% a month to make that happen. with our current volume it is going to take a conversion increase of 1%-2% a month to make that happen You know, one of the things that is important is we are able to now serve customers we were not able to serve before with our listing services. you know one of the things that is important is we are able to now serve customers we were not able to serve before with our listing services For example, if there were homes that were outside of or out of area, out of our buy box, we simply just could not offer on that with a Cash Offer or through our Cash Offer Marketplace. for example if there were homes that were outside of or out of area out of our buy box we simply just could not offer on that with a cash offer or through our cash offer marketplace Now, with Brokerage Services, it changes conversion because we can find a solution to them. now with brokerage services it changes conversion because we can find a solution to them With our listing services, the customer gets free moving services, home warranties. with our listing services the customer gets free moving services home warranties It is a really strong, compelling product on why to list with one of our HomePros. it is a really strong compelling product on why to list with one of our homepros That, you know, as we increase conversion, which we're starting to see that now with our different products, and then able to serve customers who weren't before, that's what gives us the confidence towards that 1,000 transactions per quarter. That, you know, as we increase conversion, which we're starting to see that now with our different products, and then able to serve customers who weren't before, that's what gives us the confidence towards that 1,000 transactions per quarter. that you know as we increase conversion which we're starting to see that now with our different products and then able to serve customers who weren't before that's what gives us the confidence towards that 1,000 transactions per quarter

Speaker 3: Okay. Thank you. Okay. okay Thank you. thank you

Speaker 6: Our last question comes from the line of Gaurav Mehta with AGP. Gaurav, your line is now open. Our last question comes from the line of Gaurav Mehta with AGP. our last question comes from the line of gaurav mehta with agp Gaurav, your line is now open. gaurav your line is now open

Speaker 4: Thanks for taking my question. I wanted to ask you on the thousand transactions and Adjusted EBITDA. Does your Adjusted EBITDA breakeven expectations include renovations in those transactions, or renovations is separate than the transactions? Thanks for taking my question. thanks for taking my question I wanted to ask you on the thousand transactions and Adjusted EBITDA. i wanted to ask you on the thousand transactions and adjusted ebitda Does your Adjusted EBITDA breakeven expectations include renovations in those transactions, or renovations is separate than the transactions? does your adjusted ebitda breakeven expectations include renovations in those transactions or renovations is separate than the transactions

Speaker 7: Hi, Gaurav. I think I heard the question correctly. Does the Adjusted EBITDA include the cost of renovations? Absolutely. It's in there in the Cost of Goods Sold as part of the Cash Offer product. Then separately for the B2B third party Renovate business, it's also in the Cost of Goods Sold. Hi, Gaurav. hi gaurav I think I heard the question correctly. i think i heard the question correctly Does the Adjusted EBITDA include the cost of renovations? does the adjusted ebitda include the cost of renovations Absolutely. absolutely It's in there in the Cost of Goods Sold as part of the Cash Offer product. it's in there in the cost of goods sold as part of the cash offer product Then separately for the B2B third party Renovate business, it's also in the Cost of Goods Sold. then separately for the b2b third party renovate business it's also in the cost of goods sold

Speaker 4: Okay. No, actually wanted to ask you on the renovation revenue. To get to Adjusted EBITDA, how much renovation revenue growth are you guys? Okay. okay No, actually wanted to ask you on the renovation revenue. no actually wanted to ask you on the renovation revenue To get to Adjusted EBITDA, how much renovation revenue growth are you guys? to get to adjusted ebitda how much renovation revenue growth are you guys

Speaker 7: I see. It is not in the 1,000 transactions. We think of the business, you know, really in two buckets perhaps. One, the customers that are coming to us and are looking to sell their home. We have three products for that, and that's what we are focused around on the 1,000 transactions. That business is a little bit more variable. That's the reason for the focus on 1,000 transactions across those three products. The Renovate business is very consistent and is part of reaching EBITDA and cash flow positive, but it's not part of that 1,000 metric. I see. i see It is not in the 1,000 transactions. it is not in the 1,000 transactions We think of the business, you know, really in two buckets perhaps. we think of the business you know really in two buckets perhaps One, the customers that are coming to us and are looking to sell their home. one the customers that are coming to us and are looking to sell their home We have three products for that, and that's what we are focused around on the 1,000 transactions. we have three products for that and that's what we are focused around on the 1,000 transactions That business is a little bit more variable. that business is a little bit more variable That's the reason for the focus on 1,000 transactions across those three products. that's the reason for the focus on 1,000 transactions across those three products The Renovate business is very consistent and is part of reaching EBITDA and cash flow positive, but it's not part of that 1,000 metric. the renovate business is very consistent and is part of reaching ebitda and cash flow positive but it's not part of that 1,000 metric It is part of the total financials, of course, and part of the EBITDA. It's growing fairly rapidly, and we expect it to continue to grow. It is part of the total financials, of course, and part of the EBITDA. it is part of the total financials of course and part of the ebitda It's growing fairly rapidly, and we expect it to continue to grow. it's growing fairly rapidly and we expect it to continue to grow

Speaker 4: Okay. Thanks for that color. Second question I have is on the transaction mix. What was the mix between Cash Offer and other services in the current transactions you reported in 1Q? I know in the past you have talked about maybe 50/50 mix as you approach Adjusted EBITDA breakeven. Is that still the expectation? Okay. okay Thanks for that color. thanks for that color Second question I have is on the transaction mix. second question i have is on the transaction mix What was the mix between Cash Offer and other services in the current transactions you reported in 1Q? what was the mix between cash offer and other services in the current transactions you reported in 1q I know in the past you have talked about maybe 50/50 mix as you approach Adjusted EBITDA breakeven. i know in the past you have talked about maybe 50/50 mix as you approach adjusted ebitda breakeven Is that still the expectation? is that still the expectation

Speaker 7: Yes. In the mix, you can see, on the trending schedules on the IR site, we break out all those details. But the mix has been, as I've mentioned, the mix has been about 1/3, 2/3, 2/3 Cash Offer. Yes, we do expect as we move across the year up towards 1,000 transactions, a larger percentage coming from the other two real estate transaction products. Yes. yes In the mix, you can see, on the trending schedules on the IR site, we break out all those details. in the mix you can see on the trending schedules on the ir site we break out all those details But the mix has been, as I've mentioned, the mix has been about 1/3, 2/3, 2/3 Cash Offer. but the mix has been as i've mentioned the mix has been about 1/3 2/3 2/3 cash offer Yes, we do expect as we move across the year up towards 1,000 transactions, a larger percentage coming from the other two real estate transaction products. yes we do expect as we move across the year up towards 1,000 transactions a larger percentage coming from the other two real estate transaction products

Speaker 1: Yeah. The one thing I'll just add to that as well is our Cash Offer Marketplace, and we continue to add other Cash Offer partners in there as well. The people come to Offerpad because they want a Cash Offer. Doesn't necessarily need to be an Offerpad Cash Offer. We wanna find the best solution for them. In our Cash Offer Marketplace, having short-term hold companies as well as long-term hold companies to find the best customer and the best solution for them on the Cash Offer Marketplace. As we continue to grow towards the 1,000, we're expecting the Cash Offer Marketplace to continue to grow and to ramp as we add more and more, even of the, some of the smaller customers on there. Yeah. yeah The one thing I'll just add to that as well is our Cash Offer Marketplace, and we continue to add other Cash Offer partners in there as well. the one thing i'll just add to that as well is our cash offer marketplace and we continue to add other cash offer partners in there as well The people come to Offerpad because they want a Cash Offer. the people come to offerpad because they want a cash offer Doesn't necessarily need to be an Offerpad Cash Offer. doesn't necessarily need to be an offerpad cash offer We wanna find the best solution for them. we wanna find the best solution for them In our Cash Offer Marketplace, having short-term hold companies as well as long-term hold companies to find the best customer and the best solution for them on the Cash Offer Marketplace. in our cash offer marketplace having short-term hold companies as well as long-term hold companies to find the best customer and the best solution for them on the cash offer marketplace As we continue to grow towards the 1,000, we're expecting the Cash Offer Marketplace to continue to grow and to ramp as we add more and more, even of the, some of the smaller customers on there. as we continue to grow towards the 1,000 we're expecting the cash offer marketplace to continue to grow and to ramp as we add more and more even of the some of the smaller customers on there It's actually good because we help them source by, they can find homes off of our marketplace. Also we're doing the renovation for those groups as well. Offerpad's benefiting from both of those segments. It's actually good because we help them source by, they can find homes off of our marketplace. it's actually good because we help them source by they can find homes off of our marketplace Also we're doing the renovation for those groups as well. also we're doing the renovation for those groups as well Offerpad's benefiting from both of those segments. offerpad's benefiting from both of those segments

Speaker 4: Okay. Thank you. Maybe one more for me. On the operating expense side, you know, as you ramp up the transactions, do you expect the operating expenses to remain where they are or do you expect any further improvements or any increases on the operating expense side? Okay. okay Thank you. thank you Maybe one more for me. maybe one more for me On the operating expense side, you know, as you ramp up the transactions, do you expect the operating expenses to remain where they are or do you expect any further improvements or any increases on the operating expense side? on the operating expense side you know as you ramp up the transactions do you expect the operating expenses to remain where they are or do you expect any further improvements or any increases on the operating expense side

Speaker 7: Yeah, true, true. If you look on the P&L, right, for this quarter, there's $14.5 million of operating expenses. If you look on the non-GAAP reconciliation table, you can see that there are some selling and holding cost expenses in there. It's around $2 million for this quarter. That small piece of operating expenses as in the GAAP reporting is variable, the large majority of it, which is about $12 million, which we highlighted in the prepared remarks, or $12.5 million, is not variable. In fact, we're there are a few more levers that we're working to pull that are harder than the other cost outs that we've done across the last few years. Yeah, true, true. yeah true true If you look on the P&L, right, for this quarter, there's $14.5 million of operating expenses. if you look on the p&l right for this quarter there's $14.5 million of operating expenses If you look on the non-GAAP reconciliation table, you can see that there are some selling and holding cost expenses in there. if you look on the non-gaap reconciliation table you can see that there are some selling and holding cost expenses in there It's around $2 million for this quarter. it's around $2 million for this quarter That small piece of operating expenses as in the GAAP reporting is variable, the large majority of it, which is about $12 million, which we highlighted in the prepared remarks, or $12.5 million, is not variable. that small piece of operating expenses as in the gaap reporting is variable the large majority of it which is about $12 million which we highlighted in the prepared remarks or $12.5 million is not variable In fact, we're there are a few more levers that we're working to pull that are harder than the other cost outs that we've done across the last few years. in fact we're there are a few more levers that we're working to pull that are harder than the other cost outs that we've done across the last few years We expect that to actually continue to come down, not as dramatically as we have over time. It was, as a couple of years ago, it was as much as $80 million per quarter. Now we're down to $12.5 million or, with the holding costs, $14.5 million. It won't come down too much more, but we expect it to go down, not up. We expect that to actually continue to come down, not as dramatically as we have over time. we expect that to actually continue to come down not as dramatically as we have over time It was, as a couple of years ago, it was as much as $80 million per quarter. it was as a couple of years ago it was as much as $80 million per quarter Now we're down to $12.5 million or, with the holding costs, $14.5 million. now we're down to $12.5 million or with the holding costs $14.5 million It won't come down too much more, but we expect it to go down, not up. it won't come down too much more but we expect it to go down not up

Speaker 4: All right. Thank you. That's all I had. All right. all right Thank you. thank you That's all I had. that's all i had

Speaker 7: Thank you. Thank you. thank you

Speaker 6: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. There are no further questions at this time. there are no further questions at this time This concludes today's call. this concludes today's call Thank you for attending. thank you for attending You may now disconnect. you may now disconnect