James Grout: Yeah. Hey, Ryan, I think the – right now what we’re seeing is the overall mix that we’ve got in terms of the cash offer piece versus the non-cash offer is probably fairly consistent with what it was – what we should expect for the remainder of the year here. I think with maybe some potential upside on that Renovate business with some of the areas of momentum that we’re seeing there. I think one thing though is, as we look at the actual contribution margin dollars that are falling to the bottom line, we got it to improving bottom line adjusted EBITDA here in Q2. So that’s going to see some expansion overall in the cash offer margin side there as well. So, and I think it’ll be, when you look at it purely as a percentage overall, it might fluctuate quarter-to-quarter here, just as the cash offer business has some variability in it. But overall, the mix, I think from a volume perspective, is pretty well set right now.
Ryan Tomasello: Okay, that’s helpful. And then just to clarify another comment you made in the prepared remarks. I believe you mentioned a $7 million one-time credit that benefited the OpEx line. Forgive me if I heard that wrong, but any more color on what exactly that was? And if that was included in the initial guide you gave heading into the quarter, and if what EBITDA would have been, excluding that, I assume we would just back out $7 million credit, which would imply an EBITDA loss of closer to $14 million. But let me know if I’m thinking about that wrong?
James Grout: Yeah. So just to clarify, that was in Q4 of ‘23, and really that’s just one-time compensation related adjusted for in the quarter. So, the OpEx run rate that you’re seeing more so in Q1 is more reflective of go-forward.
Ryan Tomasello: Okay, my mistake, I just heard that wrong. And then just the last one I’ll squeeze in here. Just in terms of the balance sheet, can you just discuss your comfort overall with the current liquidity and capital position in terms of being able to self-fund the growth plans for the business over the intermediate-term? I know you’ve talked about having to right-size the OpEx space and put in the right plans to be able to do that in terms of self-funding operations, but any update there on that front would be helpful.
James Grout: Yeah, I mean, overall we feel pretty good about the balance sheet, right. We’ve been obviously actively working towards making sure we’re managing around our, what we have and ending the quarter with $69 million of cash. And you add in just the liquidity from our exclusively, the equity from homes on the balance sheet that takes it up closer to $90 million. But our portfolio, we purchase homes at a discount and you have a service fee that we’re capturing there. So when you actually combined kind of our anticipated equity out of the homes that we have in the portfolio as well, it’s well over $100 million of, call it, total liquidity. I think the main thing is that, overall from a forecast perspective around an environment of rates are higher for longer, No necessarily tailwinds we’re going to get from rate cuts or from an increase in transactions or anything like that.
So we’re being very prudent around making sure that we’re managing with – within our capabilities here.
Ryan Tomasello: Great. Thanks for the color.
Operator: Thank you. The following question comes from Dae Lee with JP Morgan. You may proceed.
Dae Lee: Great. Thanks for taking the questions. I have two, so the first one on your 2Q revenue outlook, at the midpoint, but we’ll guess normal seasonality a little bit. I think you talked about rates being a driver, but can you double click on that a little bit and help explain what scenarios are contemplated at each end? And how you can get to approximately breakeven EBITDA given the wide range of revenue outcomes? And I have a follow-up.
James Grout: Yeah. So, I think from a revenue standpoint, we’re still – revenue is obviously still very much influenced by the cash offer side of the business. But as we’ve been growing these other services, those were not expecting as much [technical difficulty] there. And so from a profitability standpoint, despite the 125 homes range that we’ve provided, it’s not a ton of variability from an adjusted EBITDA perspective. That’s our guide of approximately breakeven. I think the main thing is, we saw mortgage rates rise here at the end of Q1 and the first part of Q2, and overall pace in the market. And I think the main thing is, with this transition here in the kind of the new norm of the market, expecting homes to move quickly has been necessarily – is honestly our expectations.
And that isn’t a bad thing. That just means that as we’re underwriting, we’re underwriting expecting longer TTCs for the homes overall. And if they don’t get an offer in the first week, and it’s not a big deal, eventually these homes will sell and they are performing against our expectations. But that just puts a little bit more variability in the overall quarter revenue metric for us.
Dae Lee: Got it. Then as a follow-up on the NAR settlement. I know it’s still kind of early, but just curious if you’re seeing any changes to behaviors of sellers, buyers or agent partners that you interact with in the funnel?
Brian Bair: All right. Hey, Dae it’s Brian. No, not yet. It’s very early still there’s some things that need to be sorted out there, but nothing to note. We’re obviously watching it closely, and as I mentioned in the prepared remarks, I think there’s an opportunity in for Offerpad through some of our instant access channels and some of the other things that we allow buyers to access our homes instantly. And so I think the world of real estate is definitely changing, and that’s something that we’ve been focused on and talking about for a long time, but nothing from buyers or sellers yet.
Dae Lee: I understand. Thank you.
Operator: Thank you. The next question comes from John Colantuoni with Jefferies. You may proceed.
