Offerpad Solutions Inc. Class A Common Stock

Marcus & Millichap reported second-quarter revenues of $202.9 million, up 17.8% year on year and exceeding analysts' expectations by 4.4%, in what was a stunning quarter for the commercial real estate investment sales and advisory firm. The company also beat analysts' EPS and EBITDA estimates, though its stock is down 8.9% since reporting and currently trades at $28.45. The results came as the 13 consumer discretionary real estate services stocks tracked reported a mixed quarter, with revenues as a group beating consensus estimates by 11.5% while next quarter's revenue guidance came in 4.4% below. Among peers, Howard Hughes Holdings posted the group's biggest analyst estimate beat and fastest revenue growth, with revenues of $1.12 billion, up 330% year on year, while Offerpad delivered the weakest performance, with revenues of $77.65 million, down 51.6% year on year. Cushman & Wakefield reported revenues of $2.76 billion, up 11.2% year on year, and Newmark reported revenues of $888.4 million, up 17% year on year.

Opendoor Technologies stock is falling 7% to $2.79 in early Thursday trading, deepening a slide that now has shares down 51% year to date, after Chief Executive Kaz Nejatian conceded on X Wednesday that the company's adjusted net income break-even timeline has slipped by six to eight weeks. Nejatian said housing conditions deteriorated sharply in the final two weeks of August, with clearance slowing and delistings staying elevated, and that Opendoor will now price to clear homes even where that pressures margins. The admission landed in the same week the benchmark Treasury note yield climbed to a three-year high, a bigger problem for Opendoor than for peers because it buys homes onto its own balance sheet and carries them until resale, so higher long-term yields lift interest expense on its inventory book and slow the pace at which homes clear at target margins. Opendoor still expects revenue to climb 10% to 15% year over year in the current quarter and still targets adjusted net income profitability on a twelve-month forward basis by year-end, a tight window given revenue fell 44% year over year in the prior quarter. Offerpad Solutions fell 2% to $3.77 and Zillow Group slid 3% to $31.91, with their capital-lighter models shielding them from the inventory-carry yield damage, while the iShares U.S. Home Construction ETF dropped 2% and the SPDR S&P 500 ETF Trust fell 0.69%.