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OPAD (Offerpad Solutions) Degree of Operating Leverage : 1.40 (As of Mar. 2025)


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What is Offerpad Solutions Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Offerpad Solutions's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.40. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Offerpad Solutions's Degree of Operating Leverage or its related term are showing as below:

OPAD's Degree of Operating Leverage is ranked worse than
60.57% of 1699 companies
in the Real Estate industry
Industry Median: 0.86 vs OPAD: 1.40

Offerpad Solutions Degree of Operating Leverage Historical Data

The historical data trend for Offerpad Solutions's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Offerpad Solutions Degree of Operating Leverage Chart

Offerpad Solutions Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 56.74 -2.90 -6.11 0.06 1.85

Offerpad Solutions Quarterly Data
Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.03 1.42 1.81 1.85 1.40

Competitive Comparison of Offerpad Solutions's Degree of Operating Leverage

For the Real Estate Services subindustry, Offerpad Solutions's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Offerpad Solutions's Degree of Operating Leverage Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Offerpad Solutions's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Offerpad Solutions's Degree of Operating Leverage falls into.


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Offerpad Solutions Degree of Operating Leverage Calculation

Offerpad Solutions's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -42.455 (Mar. 2025) / -58.79 (Mar. 2024) - 1 )/( 794.159 (Mar. 2025) / 990.191 (Mar. 2024) - 1 )
=-0.2779/-0.198
=1.40***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Offerpad Solutions  (NYSE:OPAD) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Offerpad Solutions Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Offerpad Solutions's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Offerpad Solutions Business Description

Traded in Other Exchanges
N/A
Address
433 South Farmer Avenue, Suite 500, Tempe, AZ, USA, 85281
Offerpad Solutions Inc provides a way to buy and sell a home. It uses technology-enabled solutions to remake the home selling and buying experience by offering customers the convenience, control, and certainty to solve their housing needs. It combines fundamental real estate expertise with the data-driven digital Solutions Center platform to efficiently sell and buy their homes online with streamlined access to other services including mortgage, listing, renovation and buyer representation services.
Executives
Roberto Marco Sella director 2400 MARKET STREET, SUITE 302, PHILADELPHIA PA 19103
Brian Bair director, officer: Chief Executive Officer C/O OFFERPAD SOLUTIONS INC., 2150 E GERMAN ROAD, SUITE 1, CHANDLER AZ 85286
Jawad A Ahsan officer: Chief Financial Officer 17800 N 85TH ST, SCOTTSDALE AZ 85255
Kenneth D Degiorgio director
Ryan Ohara director 6922 HOLLYWOOD BLVD., 12TH FL, LOS ANGELES CA 90028
Stephen Michael Johnson officer: Chief Operating Officer C/O OFFERPAD SOLUTIONS INC., 2150 E GERMAN ROAD, SUITE 1, CHANDLER AZ 85286
Benjamin Adam Aronovitch officer: Chief Legal Officer C/O OFFERPAD SOLUTIONS INC., 2150 E GERMAN ROAD, SUITE 1, CHANDLER AZ 85286
Katherine Curnutte director 4301 50TH STREET, N.W., SUITE 300, PMB 1044, WASHINGTON DC 20007
Ll Capital Partners I, L.p. 10 percent owner C/O LL FUNDS, LLC, 2400 MARKET STREET, SUITE 302, PHILADELPHIA PA 19103
Michael S. Burnett officer: Chief Financial Officer 8601 NORTH SCOTTSDALE ROAD, SUITE 225, SCOTTSDALE AZ 85253
First American Financial Corp 10 percent owner 1 FIRST AMERICAN WAY, SANTA ANA CA 92707
Sheryl Palmer director 4900 N. SCOTTSDALE ROAD, SUITE 2000, SCOTTSDALE AZ 85251
Supernova Partners Llc 10 percent owner 4520 DEXTER STREET, N.W., WASHINGTON DC 20007
Michael S. Clifton officer: Chief Financial Officer C/O SUPERNOVA PARTNERS ACQUISITION CO., 4520 DEXTER STREET, N.W., WASHINGTON DC 20007
Gregg Renfrew director C/O SUPERNOVA PARTNERS ACQUISITION CO., 4520 DEXTER STREET, N.W., WASHINGTON DC 20007