Offerpad announces reverse stock split amid delisting threat
The iBuyer, which was at risk of being bumped from the NYSE due to its low share price, is implementing a 1-for-10 split slated to take effect next week.
Offerpad is moving forward with a reverse stock split after receiving a warning from the New York Stock Exchange (NYSE) that its share price had fallen too low for too long.
The change is expected to take effect next week.
A 1-for-10 split: In a June 4 press release, the iBuyer said its shareholders had approved plans for a reverse stock split a day earlier, after which Offerpad's board of directors decided on a 1-for-10 split. Shares will begin trading on a reverse split-adjusted basis on June 9, the company said.
A long time coming? The decision comes about three months after Offerpad received its second delisting warning in less than a year. In addition to warnings received in April 2025 and March 2026, the iBuyer was previously at risk of losing its spot on the exchange in 2022.
A meme stock rally last summer appeared to temporarily protect Offerpad's position, with share prices closing at one point above $6. But in the months that followed, the company's share price began trending back down, with Feb. 3 serving as the last time it closed at or above $1.
The NYSE issued its March letter after Offerpad's share price had closed below $1 for 30 consecutive trading days, putting the company out of compliance with the exchange's "continued listing standard."
While Offerpad was trading above $0.7 per share prior to the company's reverse stock split announcement, the price has since dipped. In afternoon trading on June 5, the stock was hovering at about $0.66 per share.
Echoes of Opendoor: Offerpad isn't the only iBuyer to face a delisting threat in the past year. Opendoor, the other major company in the iBuying space, also learned that it was at risk of being delisted from Nasdaq last May.
Though Opendoor floated the idea of a reverse stock split at the time, the move ultimately wasn't necessary. Prior to Offerpad's meme stock rally, Opendoor experienced a rally of its own as activist investors rushed to action. The company's share price hasn't closed below $1 since July 2025.
Larger iBuyer struggles: The iBuying trend started in the mid-2010s, with Zillow and Redfin launching their own versions of the model a few years later. But the business model lost steam during the pandemic, leading the portal players to shutter their iBuying divisions while Opendoor and Offerpad fought to retain momentum.
In Opendoor's case, the company claims it has entered a new era under Kaz Nejatian, who joined as CEO last fall with a mission to prioritize AI. Opendoor, he said during a Q1 earnings call, is now "on track" to break even by the end of 2026.
Meanwhile, Offerpad has reported year-over-year declines in revenue and the number of homes sold. Last month, the company said it expects revenue will hold steady in the near term, with CEO Brian Bair declaring that Offerpad is "focused on disciplined execution, delivering the right solution for each customer, and scaling the business with efficiency and consistency."