Opendoor Home Loans now offers 30-, 20-, and 15-year fixed-rate mortgages, plus 5/6, 7/6, 10/6 adjustable-rate mortgages for any home purchase in markets where Opendoor Home Loans is licensed. | Source: Opendoor Technologies Inc.
SAN FRANCISCO, Sept. 04, 2026 (GLOBE NEWSWIRE) -- Opendoor (NASDAQ: OPEN), the e-commerce platform for residential real estate, today announced that Opendoor Home Loans has exited beta and now offers 30-, 20-, and 15-year fixed-rate mortgages, plus 5/6, 7/6, and 10/6 adjustable-rate mortgages.
The announcement comes as mortgage rates move higher. Freddie Mac’s weekly survey reached 6.71% for a 30-year fixed mortgage and 6.04% for a 15-year fixed mortgage on September 3, with the 30-year average at its highest level in 13 months.
For homebuyers, when financing gets more expensive, the rate matters. So do lender fees, paperwork, delays, and the back-and-forth required to keep the home purchase and mortgage on track. When those processes are handled in separate systems, each question or document can create another delay. Opendoor built its mortgage experience around the homebuying process, with software handling more of the repeatable work in one place.
“Buying a home is two things: the home and the money,” said Kaz Nejatian, Chief Executive Officer of Opendoor. “They’re handled by separate systems, with separate incentives and too much avoidable cost. We built Opendoor Home Loans for the way most people buy a home. We can’t control the market rate, but we can control the cost and friction around it. The pork-barrel buffet around mortgage costs has to end.”
Opendoor Home Loans lets buyers handle more of the process online, with access to licensed mortgage professionals when they need help. The current experience includes:
Prequalification in minutes without a hard credit pull.A digital application with online income and asset verification.Online document verification, with fewer handoffs through closing.
Opendoor Home Loans is available for any home purchase in markets where it is licensed, not just for purchases of Opendoor homes. Eligibility, rates, terms, and availability vary by borrower, property, loan amount, loan-to-value ratio, credit profile, state, and other factors.
Buyers can learn more at opendoor.com/mortgage.
About Opendoor
Opendoor exists to tilt the world in favor of homeowners by making homeownership simpler, faster, and fairer for everyone. Since 2014, Opendoor has given people a more convenient, more certain way to buy and sell a home, whether they already own or are working hard to become homeowners. Opendoor currently operates in markets across the U.S. For more information, please visit www.opendoor.com.
Mortgage disclosure
Opendoor Home Loans LLC. NMLS ID #2810193. Verify our license at NMLS Consumer Access. All mortgage lending products and information provided by Opendoor Home Loans LLC.
This is not a commitment to lend. All loans are subject to credit approval, underwriting, and property approval. Programs, rates, terms, and conditions are subject to change without notice.
Offerpad is surging 7% while homebuilders barely budge, and no earnings release or corporate announcement explains the gap. The real driver runs through two rate-linked channels that builders simply do not share.
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The most rate-sensitive corner of housing is doing the day’s work while homebuilders barely move. The iShares U.S. Home Construction ETF (CBOE:ITB) is up 0.7% to $92.96 in midday trading, a soft bid for the group that controls its own supply. The 10-year Treasury note yield sits at 4.8% and is nearly unchanged over the past 24 hours.
Offerpad Solutions (NYSE:OPAD) stock is up 7% to $4.40. Meanwhile, Opendoor Technologies (NASDAQ:OPEN) stock is rising 2% to $3.09, a same-direction but shallower move in the sector’s other listed iBuyer.
Offerpad and Opendoor posted no same-day filing, earnings release, or corporate announcement, leaving the spread between the two iBuyers and ITB as the story. That gap points to positioning around the rate backdrop rather than a stock-specific catalyst on either name.
Rate Relief Reaches the Most Sensitive Corner First The 10-year yield anchors U.S. mortgage rates, and iBuyer economics run through two rate-linked channels at once. One channel is the mortgage market that governs how many houses change hands. The other is the warehouse and revolving inventory financing that funds every home Offerpad and Opendoor carry between purchase and resale.
A lower yield reading, even a modest one, eases both frictions on the same day. Homebuilders share the mortgage-market sensitivity but not the balance-sheet leverage on prevailing rates, which is why Offerpad stock and Opendoor stock can move multiples of what ITB moves on the same backdrop.
Broader housing data still runs soft. July’s existing home sales ran at a 4.06 million annualized rate, down 1.7% from the prior month, inside the source’s soft-market band. July’s housing-starts reading came in at 1.24 million, and the Case-Shiller National Home Price Index sat at 336.7 in June. Turnover, not construction, is the swing factor for iBuyer revenue.
Why Offerpad and Opendoor Trade Harder Than Builders Offerpad Solutions buys homes directly from sellers for cash, renovates them, and resells them, and it also runs a cash-offer marketplace, brokerage services, and a renovation arm. Management has framed roughly 1,000 transactions per quarter as its adjusted EBITDA breakeven target and said it has removed more than $140 million in annualized operating expense to get the cost base there. Offerpad’s gross margin improved to 9.2% in the second quarter, its best reading since the third quarter of 2023.
The Q3 2026 guidance from Offerpad calls for 350 to 400 real estate transactions and $90 million to $100 million in revenue, a sequential step up from 295 transactions in the second quarter. Opendoor runs the same core cash-offer model at larger scale and also carries homes on its balance sheet between purchase and resale. That structure means Opendoor’s carrying costs move with rates and its transaction count moves with how many houses trade hands.
Homebuilders in the ITB basket control their own supply and inventory pace, which is why the read-across from a single-day rate move is partial rather than direct. That distinction is the mechanical reason Offerpad stock and Opendoor stock outrun ITB when the yield curve budges.
Scorecard: A Bounce in Deeply Discounted Names Both iBuyers came into Wednesday sharply lower for the year. Offerpad stock was down 66% year to date (YTD) through Tuesday’s close, and Opendoor stock was down 48% over the same window. Any percentage move off those depressed bases looks larger than it would on higher-priced names.
ITB sits far closer to flat, down 4% YTD through Tuesday’s close and up 241% over the past ten years. The gap between builder returns and iBuyer returns frames today’s spread as a bounce in heavily discounted names, not a trend continuation for the housing complex.
What to Watch The immediate question for Offerpad and Opendoor is whether the 10-year Treasury yield holds its lower reading into the afternoon and into the next set of housing indicators. If yields drift back toward the 4.75% level that capped the recent range, the iBuyer bounce may extend. Should yields slip further, the move may fade.
Traders can watch for whether ITB narrows the gap or the iBuyers give back their lead against the builder benchmark. Position sizing matters here. Both Offerpad stock and Opendoor stock trade at low single-digit prices with heavy YTD drawdowns, so investors sizing their exposure should keep positions small enough to survive a reversal if the rate story stalls (we wrote a whole free playbook on speculating with just 5% of a portfolio, with the sizing and exit rules that keep it from hurting, here).
Contact [email protected] for any questions or corrections.
Opendoor Technologies (OPEN -2.74%) stock is trading down 26% over the past year despite new management, many changes, and improving metrics. The market doesn't seem confident in its claim to be getting closer to profitability. Alternatively, it might just be pessimistic, as the housing market remains under pressure.
With shares priced at just $3.22 as of this writing, should you avoid this stock trading near its 52-week low?
Image source: Getty Images.
Could Opendoor be a turnaround story? Opendoor buys and sells residential real estate through its online platform. It distinguishes itself by making instant cash offers on homes, repairing the properties it purchases, and relisting them for sale.
Opendoor's second-quarter report was chock-full of good news. Some highlights include:
Revenue increased 23% quarter over quarter. It signed 6,908 acquisition contracts on $5 million of marketing spend, whereas the last time it signed more than 6,000 contracts, it spent $81 million on marketing. The percentage of homes on the market for over 120 days declined sequentially from 10% to 9%, compared with a market average of 27%. Operations expense per acquisition close was $3,000, down from $5,000 last quarter and $8,400 last year.
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CEO Kaz Nejatian said, "The alternative to buying growth is earning it by shipping great products." He boasted that the path toward becoming adjusted net income positive on a go-forward, 12-month basis is clear when you see the lower costs, increasing revenue, and building unit economics.
However, the market still seems to be extremely concerned. The year-over-year performance was still down on the top and bottom lines, and adjusted net loss increased from $9 million last year to $30 million this year.
So, should you avoid Opendoor stock? At the current price, you can buy 100 shares for $322. If you have that much to lose, you can feel comfortable taking the risk on this stock. But you should avoid making it a significant position until Opendoor demonstrates more progress.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Opendoor stock is cratering on a session where nothing appears to have gone wrong at the company itself, and that gap between the market's mild dip and OPEN's steep drop points to a force most retail investors underestimate until it…
A textbook illustration of high-beta behavior is playing out on Monday morning in Opendoor Technologies (NASDAQ:OPEN) stock, which is sliding several times as much as the broad market on a session that carries no verified company-specific news. The size of that gap is the story. It’s a live picture of what beta means for a low-priced, sentiment-driven stock.
Opendoor stock is down 4% to $3.17 in Monday morning trading, extending a rough month for the name. It’s also worth noting that Offerpad (NYSE:OPAD) stock is down 4% to $4.29 today. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is down 0.49% to $765.54, a modest pullback that reads as a soft risk-off tone rather than a broad selloff.
That daily gap sits inside a much larger drawdown. Opendoor Technologies stock was down 44% year to date through Friday’s close, its one-month decline measures 10%, and its one-year drop sits at 20%. That combination of a low share price and a heavy year-to-date decline is exactly the profile that tends to overreact when the broad market softens even a little.
No Verified Catalyst Behind Monday’s Slide No fresh Opendoor news has been verified for this session. Company press-release feeds show no releases tied to today’s move, and there is no confirmed corporate announcement, deal, or filing that lines up with the decline. That’s a narrower statement than asserting nothing exists, and the distinction matters here.
The useful angle for readers is the difference between a stock falling because something happened and a stock falling because the market fell and this particular name moves more than the market. Monday’s action for Opendoor fits the second description. Investors can treat it that way rather than hunting for a hidden catalyst that hasn’t surfaced.
That framing is more useful than a headline hunt. A stock like Opendoor attracts attention on any red day, and each such day generates its own speculation about what might be wrong. In the absence of confirmed news, the fairer read is that Opendoor stock is doing what a high-beta name does when the market fades.
High-Beta Math on a Down Day High beta simply means a stock that historically moves more than the overall market in both directions. Opendoor carries a five-year beta of 3.59, and today’s ratio matches that description in real time. A 0.6% decline in SPY pairing with a 4% decline in OPEN is beta doing exactly what beta does.
Volatility conditions across the broad market make the same point from a different angle. The CBOE Volatility Index or VIX sits at 14.43, a low reading that argues against a market-wide shock as the driver of today’s action. What’s left is positioning, and a stock trading near $3 with a heavy retail following and a 44% year-to-date loss trades on sentiment far more than on any single day’s information flow.
The mechanism is worth stating plainly. On a down day, high-beta names amplify losses, and on an up day, the same names amplify gains. Neither direction of that amplification requires new information about the underlying business, which is what makes single-session moves in Opendoor less informative than they look at first glance.
Opendoor also carries a classic retail-favorite profile. Its share count sits above 971 million, institutions hold 58%, and daily volume can swing hard on shifting message-board flows. Those characteristics tend to widen the effective beta on down days beyond what a static number would suggest.
Position Sizing Matters More Than Direction Here Investors should keep their position sizes in Opendoor stock modest. A stock that moves several times the market on an ordinary down session will do the same on the way up, and sizing is what keeps that volatility survivable across a full cycle (the same fence-off-your-fun-money approach we laid out in a free speculation playbook). At a $3 handle after a 44% year-to-date decline, that discipline matters more than any directional call.
The one-week and one-month figures reinforce the point. Opendoor stock is down 7% over the past week and 10% over the past month, while the ETF has posted modest gains over both windows. That divergence is what beta produces, and it’s why position-sizing rules matter more here than at slower-moving names.
Traders can watch for a firm hold of the recent range as Monday’s session develops, since a low-priced, high-beta name testing new lows tends to draw fresh momentum flows in either direction. The differentiator for Opendoor today is the absence of any verified company-specific reason to justify the size of the move.
Contact [email protected] for any questions or corrections.
Key Takeaways OPEN targets ANI breakeven by end-2026, based on 6,000 quarterly transactions and a $9B run rate.Contribution margin hit 5.8% as operating expense per acquisition fell to $3,000 in the second quarter.OPEN expects third-quarter contribution margin to moderate to 4-4.5% due to seasonality and Doma integration. Opendoor Technologies Inc. (OPEN - Free Report) has outlined a quantitative framework for reaching adjusted net income (ANI) breakeven on a 12-month go-forward basis by the end of 2026. The framework assumes roughly 6,000 quarterly transactions at $375,000 each, implying an annualized revenue run rate of approximately $9 billion.
Acquisition activity is moving toward the scale required by this model. OPEN generated 6,908 acquisition contracts in the second quarter, up from 5,136 in the first quarter. The company is also signing more than 500 contracts per week, with one recent week reaching roughly 700 — its highest weekly total in years. Still, contract volume does not translate directly into reported revenues. Some agreements will not close, while acquired homes generally progress through renovation, listing and resale before revenues are recognized.
Improving unit economics provides another important component of the profitability framework. Contribution margin reached 5.8% in the second quarter, within OPEN’s targeted 5-7% range. Operations expense per acquisition declined to $3,000 from $5,000 in the first quarter and $8,400 a year earlier. OPEN’s illustrative framework assumes that marketing, variable operations and fixed operating costs would represent a combined 2.9% of acquisition GMV. Based on the current dollar cost structure, these expenses would equal approximately 2.4% of revenues at a $9 billion run rate, below the 3-4% range previously associated with ANI profitability.
Still, maintaining these economics as volume expands will be critical. OPEN expects contribution margin to moderate to 4-4.5% in the third quarter because of seasonality and the temporary impact of the Doma integration. Net interest expense also remains slightly above 2% of revenues, increasing the importance of resale velocity and inventory discipline.
OPEN’s Breakeven Path Versus Zillow and OfferpadZillow Group, Inc. (ZG - Free Report) provides an adjusted-earnings benchmark, although its digital marketplace is less capital intensive than OPEN’s inventory-based iBuying model. Zillow reported second-quarter adjusted net income of $118 million and adjusted EBITDA of $176 million, translating into an adjusted EBITDA margin of 23%. Zillow also noted that Zillow Home Loans now generates positive unit economics across fixed and variable costs, highlighting the operating leverage available from integrated real estate services.
Offerpad Solutions Inc. (OPAD - Free Report) offers a more direct iBuying comparison. The company generated approximately $78 million in revenues from 295 real estate transactions and recorded an adjusted EBITDA loss of $6.2 million. Offerpad’s contribution profit after interest reached $13,500 per transaction. The company targets exiting 2026 at a run rate of roughly 1,000 quarterly transactions and attaining positive adjusted EBITDA on a year-end run-rate basis. Although Offerpad’s adjusted EBITDA objective is not directly comparable with OPEN’s adjusted net income target, both companies depend on transaction scale, resale velocity and disciplined inventory economics.
Taken together, OPEN’s higher contract activity, improved unit economics and lower operating expense per acquisition likely strengthen its prospects of reaching adjusted net income breakeven on a 12-month go-forward basis by year-end 2026.
OPEN’s Stock Price Performance, Valuation & EstimatesShares of Opendoor have declined 20.1% in the past year compared with the industry’s 13.7% fall.
OPEN One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 0.52, significantly below the industry’s average of 3.97.
OPEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OPEN's 2026 loss per share suggests a 42.3% year-over-year improvement. Loss per share estimates for 2026 have widened in the past 30 days.
EPS Trend of OPEN Stock
Image Source: Zacks Investment Research
Key Takeaways Zillow's Q2 revenues rose 18%, led by 31% growth in Rentals and a 75% surge in Mortgage revenues.Opendoor's Q2 revenues fell 43.7% to $883M as housing weakness constrained acquisition and resale activity.ZG's 9.85% ROE exceeds OPEN's negative average, highlighting stronger shareholder returns. Real estate technology companies Opendoor Technologies Inc. (OPEN - Free Report) and Zillow Group, Inc. (ZG - Free Report) are currently operating in a rocky housing market. With the 30-year fixed mortgage rate hovering above 6% since March 2026, per Freddie Mac, the residential market in the United States is experiencing muted demand as homebuyers are staying away from homeownership.
Nonetheless, these two housing-tech companies are undergoing several initiatives to keep up their profitability and revenue streams.
Opendoor operates a technology-driven residential real estate platform that simplifies home buying and selling by purchasing homes directly from sellers, renovating and reselling them, while using AI to automate pricing, underwriting and operations. Meanwhile, Zillow operates a digital residential real estate marketplace and increasingly an end-to-end real estate transaction platform, connecting buyers, sellers, renters and agents while monetizing through agent partnerships, mortgage lending, rentals, listing products and professional software.
Let’s closely compare the fundamentals of the two real estate stocks for a better investment decision.
The Case for Opendoor StockOpendoor is operating against a difficult U.S. housing backdrop, with elevated mortgage rates, affordability pressures and weak transaction volumes limiting housing market activity. Existing home sales remain near a 30-year low of around 4 million units annually, roughly 20% below the pre-pandemic decade average. Home prices were broadly flat year over year as of June 2026, while seller-buyer disconnect remained evident, with delistings at record levels. These conditions can constrain both acquisition and resale activity, potentially extending inventory holding periods and pressuring margins. Opendoor’s second-quarter 2026 revenues fell 43.7% year over year to $883 million.
Opendoor’s ambitious turnaround depends heavily on successfully scaling AI, mortgage, new transaction models and other technology initiatives. While AI is improving underwriting and operational productivity, the company is increasing fixed operating expenses to fund engineering and AI investments. Cash also declined as OPEN deployed more than $700 million to rebuild inventory, leaving the business exposed to financing and housing-market risks. Its mortgage product remains relatively early-stage, with licensing still progressing across states and management acknowledging that it has more work to do despite strong early adoption. The planned transition toward capital-light 2P and marketplace-based 3P transactions also remains unproven.
OPEN’s second-quarter 2026 net loss also widened to $162 million from $29 million a year earlier. The company’s third-quarter 2026 outlook anticipates contribution margin falling to 4-4.5% amid seasonal weakness, with a prolonged housing slowdown remaining a key overhang on sustainable growth and profitability. Management described the current market as the weakest housing market in a generation, creating uncertainty around future homebuyer and seller demand.
However, Opendoor is broadening its service platform through acquisitions and strategic partnerships, potentially creating additional revenue opportunities beyond buying and selling homes. It completed its acquisition of Doma’s closing and escrow operations in July 2026, strengthening its ability to provide a more integrated real estate transaction experience. Besides, OPEN is demonstrating meaningful progress in controlling costs while improving its unit economics. The combination of higher volumes, lower variable costs and faster inventory turnover provides a stronger foundation for Opendoor’s targeted adjusted net income profitability by year-end 2026.
The Case for Zillow StockZillow is successfully reducing its dependence on housing transaction volumes by expanding Rentals, Mortgages and agent-focused services. Its second-quarter 2026 revenues rose 18% year over year to $772 million, while Rentals revenues climbed 31% and Mortgages revenues surged 75%. The company’s shift toward the Preferred agent model is also increasing revenue per connection. Zillow is expanding its rental reach through Google Gemini’s connected apps ecosystem. Meanwhile, the company is integrating mortgage pre-approval, agent services and transaction tools into its platform. This end-to-end strategy allows ZG to capture revenues across multiple stages of the housing journey, helping sustain mid-teens growth despite an uncertain housing environment.
Besides, Zillow is using AI mode to make its platform more personalized and increase consumer engagement. AI users spend more than three times longer on ZG, view more than twice as many homes and contact agents at nearly three times the rate of non-AI users. The company is also integrating AI into agent tools through Follow Up Boss and Likely to List. By connecting search, financing, agents and transactions, Zillow aims to increase monetization even when overall housing-market activity remains subdued.
However, higher mortgage rates and affordability pressures are increasingly weighing on purchase activity. Zillow expects industry purchase mortgage originations to decline low- to mid-single digits for the remainder of 2026 compared with its previous expectation of flat growth. The company expects third-quarter 2026 For Sale revenue growth of only 5-7% year over year, while Residential revenues are expected to remain flat. ZG’s diversified model provides some protection, but a prolonged housing slowdown could constrain lead volumes, agent connections and mortgage originations.
Despite Zillow’s market-share gains, average monthly unique users fell 2% year over year to 239 million, while visits declined 2% to 2.5 billion. Higher lead acquisition and mortgage processing costs also pressured expenses, while second-quarter 2026 results showed a $4 million net loss. Zillow is simultaneously restructuring its workforce to improve efficiency. Although AI, Rentals and integrated transactions offer growth avenues, execution risks, higher costs, mortgage volatility and regulatory/legal pressures could challenge profitability if housing conditions deteriorate further.
Stock Performance & ValuationAs witnessed from the chart below, over the past three months, the share price performance of Zillow has been above Opendoor’s performance and the Computer and Technology sector, even though they all reflect declining trends.
Image Source: Zacks Investment Research
Considering valuation, over the last five years, Zillow has been trading above Opendoor on a forward 12-month price-to-sales (P/S) ratio basis.
Image Source: Zacks Investment Research
Overall, from these technical indicators, it can be deduced that ZG stock offers a diminishing growth trend but with a premium valuation, while OPEN stock offers a declining growth trend with a discounted valuation.
Comparing EPS Estimate Trends: OPEN vs. ZGThe Zacks Consensus Estimate for OPEN’s 2026 and 2027 bottom line indicates a loss per share. Over the past 30 days, the loss per share has widened to 15 cents and three cents, respectively. Nonetheless, the estimated figures for 2026 and 2027 indicate year-over-year growth of 42.3% and 82.2%, respectively.
OPEN's EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for ZG’s 2026 and 2027 earnings has trickled down in the past 30 days to $2.22 and $2.69 per share, respectively. However, the estimates for 2026 and 2027 imply year-over-year improvements of 35.4% and 21.3%, respectively.
ZG's EPS Trend
Image Source: Zacks Investment Research
Return on Equity (ROE) of OPEN & ZG StocksZillow’s trailing 12-month ROE of 9.85% significantly exceeds Opendoor’s negative average, underscoring its efficiency in generating shareholder returns.
Image Source: Zacks Investment Research
Should Investors Choose ZG Stock or OPEN Stock?Zillow’s growth is being led by strong growth in Rentals and Mortgages, helping reduce its dependence on housing transaction volumes. Its AI-powered search, Preferred agent model and integrated mortgage and transaction offerings could further expand monetization as housing activity remains subdued. Yet, the company is not without risks. Falling user engagement, higher costs, mortgage-market weakness and downward earnings-estimate revisions could limit near-term upside. Its premium valuation also leaves less room for disappointment.
In contrast, Opendoor remains more exposed to home-price trends, transaction volumes and inventory financing. Although AI-driven underwriting, capital-light transaction models, mortgage expansion and the Doma acquisition could improve long-term economics, these initiatives still carry considerable execution risk.
Still, Zillow’s positive ROE, diversified revenue streams and stronger operating resilience outweigh Opendoor’s discounted valuation and turnaround potential. With ZG stock carrying a Zacks Rank #3 (Hold) compared with OPEN’s Zacks Rank #4 (Sell), Zillow stock appears to be the better choice for investors seeking relatively lower housing-market risk and more sustainable revenue growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A brutally frozen housing market has taken a toll on the stock prices of many different businesses. Homebuilders, makers of construction supplies, and real estate brokerages are all in the doldrums. One previously hot stock trying to turn things around amid this headwind is Opendoor Technologies (OPEN -3.07%).
The iBuying platform operator got a new CEO last year and recently announced it had taken out convertible debt to raise funds to repurchase 5% of its outstanding stock. Despite these headlines, its shares continue to fall due to the pain in the housing market and the business's inability to generate a profit.
Here's what the transaction means for the company, and whether Opendoor stock looks like a good value right now.
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Financial engineering, but at what cost? Convertible notes are bonds with low interest rates -- sometimes as low as zero percent. But investors in said bonds can convert them into newly issued shares of stock at a certain price, which is a good deal if the stock is trading above that level.
Opendoor just took out 0% 2030 convertible notes -- meaning they are due in 2030 -- worth $650 million. It is using $158 million of this capital to repurchase around 5% of its common stock, as announced in a press release. The convertible price for these bonds is just $4.71, which is about a 32% premium versus Wednesday's closing share price of $3.58.
To offset potential dilution, Opendoor bought capped calls, which artificially inflate the conversion price. In this case, the new converted price is $6.98, below which no shareholder dilution will occur.
While management may proclaim that this is a bond with no upfront costs, the actual cost to shareholders will be borne in these capped-call transactions (a direct cash cost at the time of bond issuance), and in potential dilution years down the line. Bondholders could see significant gains if the stock price rises from here, which existing shareholders will pay for through new share issuance. Otherwise, Opendoor will be forced to repay the principal in cash.
Image source: Getty Images.
A business model in need of repair Financial engineering can create value for shareholders, provided a business is doing well. Opendoor is on a shaky financial footing.
Last quarter, revenue fell by nearly half year over year to $883 million. With slim gross margins on the iBuying business, its gross profit was just $86 million. The business model is to buy homes directly from consumers and resell them, which comes with low gross margins and requires stuffing existing inventory on the balance sheet, sometimes funded with debt.
Existing home sales in the United States are down to around 4 million a year, as compared to over 5 million a year prior to the COVID-19 pandemic. Opendoor has failed to gain market share with its iBuying strategy, which has been a double-edged sword amid this macroeconomic environment. The company posted a net loss of $162 million last quarter, and it has never generated a profit.
OPEN Gross Profit (TTM) data by YCharts.
Should you buy Opendoor stock? Management taking out a nifty convertible bond does not change anything about Opendoor's failed business model. The company is trying to pivot to new business strategies, such as automated pricing and offering new services to homebuyers and sellers, but it is failing to generate interest at the moment.
A frozen housing market is going to make it difficult for even the best businesses in the sector, let alone one that has never generated a profit. Right now, Opendoor's market cap of $3.25 billion is more than 10 times its trailing gross profit generation. (We cannot value Opendoor relative to its earnings since it has none.) Gross profits have been declining for many quarters.
Add everything up, and this repurchase authorization fueled by debt is likely a bad sign for the company, not a good one. Avoid buying the dip on Opendoor stock.
Last year, Opendoor (OPEN -5.08%) had a new CEO, Kaz Nejatian, take the helm, promising a massive turnaround for the struggling pandemic-era real estate technology company. The stock price rose from under $1 to $10 in a year, with investors betting that the pain was finally over.
Today, shares are back down to $3.50. The financial results for the real estate buying platform continue to deteriorate, with housing market activity frozen shut in the United States.
Here's what Opendoor's future may look like, and whether the stock looks cheap again, down 90% from 2021 highs, as a bet on an eventual reversion to the mean in homebuying activity.
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A struggling turnaround When joining Opendoor, Nejatian wanted to reinvigorate the business by becoming leaner on costs and adding new features for real estate buyers and sellers on its platform. Historically, Opendoor's business model has been to buy and sell homes directly, which has proved tough to finance as a start-up trying to hold more and more inventory on its balance sheet.
This business model broke down amid the rising interest-rate environment of 2022, which drove many transactions out of the U.S. housing market. Opendoor's revenue has steadily declined from its peak, reaching $3.2 billion over the last 12 months, down from over $15 billion at one point in 2021.
Nejatian wants to scale up home acquisitions again, but more efficiently. Last quarter, Opendoor had 6,900 acquisition contracts but spent just $5 million on marketing. That compares to a similar level of acquisitions back in Q2 2022, when Opendoor spent $81 million on marketing.
At the same time, Nejatian wants to turn over homes more quickly, reducing the time this inventory sits on the balance sheet. Opendoor is making progress in this regard, with the percentage of homes on the market at over 120 days down to 9% last quarter, compared to 10% a year prior.
Image source: Getty Images.
Should you buy Opendoor stock? Despite efforts to improve the core business model and layer on new products, such as automated pricing and mortgage lending through Opendoor, the business remains in rough financial shape.
Last quarter, Opendoor had a net loss of $162 million. It has never generated positive profitability, no matter how hot or cold the U.S. housing market is. Right now, the housing market is ice cold when it comes to transactions, and Opendoor and its investors are betting that an eventual turnaround will finally lead to profitability.
Investors should not automatically expect the housing market to return to the level it was at during the COVID-19 pandemic. We may be in a new environment of higher interest rates and an aging population that lessens the importance of this sector. And Opendoor operated in a hot housing environment a few years ago, and it still could not generate a profit. For these reasons, investors should stay far away from this stock.
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Shares of Opendoor Technologies (NASDAQ:OPEN) are down 42% year to date (YTD), trading at $3.41 as of Tuesday afternoon. The iBuyer’s decline reflects what a two-decade high in long-end Treasury yields has done to companies carrying housing inventory on their balance sheets. Every real estate technology name in this group has felt pressure this year, though intensity varies with each business model.
The 30-year Treasury yield hit a 19-year high Tuesday, topping 5.3%, while the 10-year note, the main benchmark for mortgage rates, sat at 4.7%. Long-end rates parked at multi-decade highs keep mortgage costs elevated, suppressing home-sale volumes and squeezing any business tied to transaction velocity.
Opendoor Technologies buys homes directly and resells them, so the company holds inventory and carries financing costs throughout the holding period. That exposure makes Opendoor stock more sensitive to both transaction volumes and rates than an asset-light marketplace would be, since carrying costs eat directly into contribution margin. For clarity on peer figures that follow, Opendoor’s YTD reading runs through Tuesday afternoon, while peer and fund YTD figures are settled through Monday’s close.
How the Housing Tech Peers Stack Up Zillow Group (NASDAQ:Z | Z Price Prediction) stock is down 49% year to date, though the shares are up 3% Tuesday to $34.83. The company runs the most visited real estate app and website in the United States and is shifting its agent partnership model toward a performance-based structure where agents pay on closing rather than legacy advertising economics. Zillow Home Loans is now a top-25 purchase lender, giving the marketplace another leg on its transaction revenue stool.
Meanwhile, Compass (NYSE:COMP) stock is up 17% year to date through Monday’s close and is down 0.3% Tuesday to $12.36. The brokerage has benefited from its January acquisition of Anywhere Real Estate and concentrated exposure to higher-end markets that tend to be less rate sensitive than the broader housing base. Its shares are the only real estate technology name in this group with a positive YTD line into the back half of the year.
Also, Offerpad Solutions (NYSE:OPAD) stock is up 246% year to date and is up 1% Tuesday to $4.24. The company buys homes directly through its Cash Offers business, mirroring Opendoor’s iBuying model on a much smaller operating base. Its shares trade with a market cap of $20.47 million, marking the name as a micro-cap with volatility and liquidity risk that classification implies for position sizing.
The Homebuilders ETF Tells a Different Story For context, the SPDR S&P Homebuilders ETF (NYSEARCA:XHB) is up 3.5% year to date, and the ETF is down 2% Tuesday to $106.41. This fund tracks homebuilders and housing-related suppliers rather than real estate technology or iBuying platforms, explaining much of the divergence between XHB and the transaction-dependent names above. Builders can lean on price incentives and mortgage buydowns to move inventory, tools that resale-dependent iBuyers can’t easily match.
XHB’s sector-concentration profile cuts both ways for investors weighing the ETF as a housing proxy. Its exposure sits in a single slice of the housing complex, so shareholders carry cycle risk tied to builders and suppliers alone rather than the full residential value chain. The fund has weathered the rate backdrop better than iBuyers and marketplace names in 2026, but it isn’t a diversified play on any broader housing recovery.
What the Rate Backdrop Means from Here Existing home sales sat at 4.06 million on an annualized basis in July, and housing starts fell to 1.24 million that same month. Those readings explain why transaction-dependent business models are being repriced in 2026 and why Opendoor Technologies has been the sharpest expression of the slump this year.
Compass is the counterexample among these five names, with exposure to less rate-sensitive luxury inventory and a growth story tied to the Anywhere integration. Zillow Group carries operating leverage as it pivots toward a performance-based agent model, while Offerpad Solutions carries balance-sheet strain alongside its micro-cap status.
Traders may want to keep an eye on whether long-end Treasury yields ease enough to unlock transaction volume into the fall selling season. Until that happens, the split between the SPDR S&P Homebuilders ETF and the real estate technology names looks likely to persist, with Opendoor stock as the most rate-sensitive point on the map. Position sizing should reflect the wide dispersion across the group, particularly for micro-cap Offerpad stock.
Contact [email protected] for any questions or corrections.
Key Takeaways Opendoor reached about 700 weekly purchase contracts, its strongest tally in years.Second-quarter acquisition contracts rose to 6,908 as marketing spending fell to just $5 million.OPEN expects a 4%-4.5% contribution margin as seasonal pressure remains. Opendoor Technologies Inc. (OPEN - Free Report) is showing a sharp pickup in acquisition activity even as the broader housing market remains challenging. On its second-quarter 2026 earnings call, management said the company is signing more than 500 home purchase contracts per week, with the prior week reaching around 700, its strongest weekly tally in years and more than five times the level seen a year ago.
The weekly numbers build on a strong second quarter. Opendoor generated 6,908 acquisition contracts, up from 5,136 in the first quarter. Homes purchased rose 77% sequentially and 149% year over year to 4,378, while the company ended the quarter with 2,310 homes under contract to purchase, compared with 393 a year earlier. More importantly, the higher volume came with far lower marketing spending. Opendoor spent just $5 million on marketing while producing more than 6,900 acquisition contracts. Management also said seller conversion improved significantly at comparable spreads, suggesting the company is not simply buying higher volume by taking on more pricing risk.
Seasonality remains a hurdle. Historically, Opendoor’s contribution margin has fallen sharply between the second and third quarters, with the average decline approaching 500 basis points excluding 2023. For third-quarter 2026, management expects a contribution margin of about 4%-4.5%, while revenues are expected to grow at least 20% year over year and contribution profit to more than double.
For now, the roughly 700-contract week suggests Opendoor’s turnaround is gaining operating momentum despite a difficult housing market. Still, acquisition contracts do not all translate into completed purchases. If volumes remain above the roughly 6,000-per-quarter level in management’s profitability framework while conversion, margins and cost discipline hold, the acceleration could become an important bridge from turnaround to sustained profitability.
Opendoor’s Competitive Landscape: Compass & RocketOpendoor’s accelerating contract volume comes as other real estate technology players are also emphasizing scale, conversion and operating efficiency. Compass, Inc. (COMP - Free Report) is pursuing a brokerage-led platform strategy rather than principal home buying. In the second quarter of 2026, Compass generated $4.3 billion in revenues and $363 million in adjusted EBITDA, while brokerage transactions rose 7.4% year over year versus 3.5% for the broader market. It also actioned its $300 million first-year cost-synergy target five months early.
Rocket Companies, Inc. (RKT - Free Report) offers another increasingly relevant comparison as it builds a broader homeownership ecosystem around mortgage origination, servicing and Redfin. Rocket posted $2.8 billion in adjusted revenues and $766 million in adjusted EBITDA in the second quarter of 2026, while purchase market share rose to a record 6.2% and refinance share reached 14.3%. More than 70% of revenues now come from recurring or less rate-sensitive businesses, helping reduce dependence on mortgage-rate cycles.
Overall, Opendoor currently stands out for combining faster contract growth with sharply lower marketing intensity.
OPEN’s Stock Price Performance, Valuation & EstimatesShares of Opendoor have lost 23.9% in the past six months, underperforming the Zacks Internet - Software industry, the broader Zacks Computer and Technology sector and the S&P 500 Index.
OPEN’s Six-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, OPEN stock trades at a forward price-to-sales (P/S) multiple of 0.54, significantly below the industry’s average of 4.08.
P/S (F12M)
Image Source: Zacks Investment Research
OPEN’s estimates for 2026 indicate a loss of 12 cents per share, while those for 2027 point to earnings. Over the past 30 days, the 2026 estimates have remained unchanged, whereas those for 2027 have moved from breakeven to earnings of 1 cent per share.
Kasra Nejatian, Chief Executive Officer of Opendoor Technologies Inc. (OPEN -0.27%), purchased 27,625 shares of common stock on August 14, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summaryMetricValueShares purchased (directly held)27,625Transaction value~$100,000Post-transaction shares (directly held)83,605,924Post-transaction value$304.33 millionTransaction value based on SEC Form 4 weighted average purchase price ($3.62); post-transaction value based on August 14, 2026 market close ($3.64).
Key questionsHow does this purchase affect the CEO's overall equity exposure?
The acquisition marginally expands a substantial core position of 83,605,924 shares, which currently represents a market value of $304.33 million based on the August 14, 2026 market close.What was the execution price relative to recent market activity?
The shares were purchased at a weighted average price of $3.62, compared to a closing price of $3.65 as of the August 13, 2026 market close.What is the fundamental profile of the company at the time of this trade?
Opendoor operates with a market capitalization of $3.5 billion and reports trailing-twelve-month revenue of $3.3 billion, though it remains in a net loss position of $1.5 billion over the same period.Company OverviewMetricValueShare Price (as of market close 2026-08-13)$3.65Market Capitalization$3.5 billionRevenue (TTM)$3.3 billionNet Income (TTM)-$1.5 billionCompany SnapshotOpendoor operates a digital ecosystem enabling residential real estate transactions entirely online, generating revenue through home sales facilitation, title insurance services, and escrow offerings across the United States.The company's business model centers on providing an efficient, technology-driven alternative to traditional real estate transactions, capturing value through transaction volumes and ancillary service offerings.Opendoor primarily serves individual homebuyers and sellers seeking streamlined, digital-first residential real estate solutions, targeting consumers who value convenience and transparency in property transactions.Opendoor Technologies operates at significant scale with $3.3 billion in trailing 12-month revenue, positioning itself as a transformative force in residential real estate through its fully digital transaction platform. The company's competitive advantage lies in its technology infrastructure and operational efficiency, which enable customers to complete home purchases and sales online without traditional intermediaries.
Despite current net losses of $1.5 billion in the trailing 12 months, the company continues to expand its market presence and ancillary service offerings to drive profitability and shareholder value.
What this transaction means for investorsThe Aug. 14 purchase of Opendoor Technologies shares by CEO Kasra Nejatian suggests he is bullish about the stock's outlook. He certainly didn't need to buy more, given he directly held over 80 million shares before this transaction.
At the time he acquired more Opendoor stock for a weighted average price of $3.62, shares were not far from the 52-week low of $3.06 reached last year. This indicates Nejatian believes Opendoor is a buy at this level.
While Opendoor managed to gain about 20% over the past 12 months, the stock is down substantially from its 52-week high of $10.87. The cause is a sluggish housing market impacted by elevated mortgage rates, combined with the company's uninspiring business performance.
In the second quarter, Opendoor reported revenue of $883 million, a significant decline from 2025's $1.6 billion. Moreover, the company's costs increased, resulting in a Q2 net loss of $162 million, up from a loss of $29 million in the prior year. That said, Opendoor forecasted Q3 sales to see a 20% year-over-year increase.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Opendoor Technologies Inc. (NASDAQ:OPEN) shares are dropping Thursday morning as the market digests news of a major capital structure overhaul.
The residential real estate platform unveiled a series of financing strategy featuring debt issuance, equity repurchases, and derivative instruments aimed at fueling business expansion.
Opendoor Technologies stock is among today’s weakest performers. Why is OPEN stock falling? Capital Structure TransactionsThe company announced a private offering of $650 million in 0% Convertible Senior Notes due 2030. From the proceeds, Opendoor allocated approximately $158 million to buy back 45.3 million shares of common stock at $3.49 per share, marking the first share repurchase program in its corporate history.
An additional $52.5 million was deployed into capped call transactions designed to mitigate prospective equity dilution. Ultimately, the initiatives will inject roughly $440 million of net proceeds into Opendoor’s balance sheet to expand home inventory and market coverage.
Dilution Protections and Expected SharesThe integrated arrangement ensures no net share creation occurs until Opendoor’s stock price crosses $10.38 per share, assuming principal amounts are settled in cash.
Capped call transactions safeguard against dilution up to $6.98 per share, while the repurchased shares neutralize conversion impact up to the $10.38 threshold. Beyond $20.00 per share, net dilution is expected to stay below 5%.
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Management CommentaryExecutive leadership emphasized capital efficiency and long-term shareholder alignment. CEO Kaz Nejatian noted that capital must generate value for shareholders rather than burden them, pointing out that financing methods are just as critical as growth goals.
He emphasized that the added funding offers capacity to accelerate acquisitions while preserving the disciplined approach required to achieve sustained profitability.
OPEN Shares Slide Thursday MorningOPEN Price Action: Opendoor Technologies shares were down 5.73% at $3.29 during premarket trading on Thursday, according to Benzinga Pro data.
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$650 million of 0% coupon convertible notes, concurrent $158 million share repurchase, and capped call transactions, all structured for no expected net share issuance until stock exceeds $10.38 per share, ~3x the current price $650 million of 0% coupon convertible notes, concurrent $158 million share repurchase, and capped call transactions, all structured for no expected net share issuance until stock exceeds $10.38 per share, ~3x the current price
The housing and travel sectors are evolving as digital platforms redefine how we stay and where we live. Investors must decide between Airbnb (ABNB -2.37%) and Opendoor Technologies (OPEN -1.96%) for 2026.
Airbnb operates a capital-light marketplace for short-term rentals, while Opendoor utilizes an iBuying model to purchase and resell homes directly. Both companies aim to modernize the industry through technology, yet they face very different financial trajectories and market cycles in the current economic environment.
The case for AirbnbAirbnb connects property owners with travelers seeking unique stays or experiences. The company operates a global marketplace that spans over 220 countries and regions. Approximately 61% of its revenue was generated outside the United States in the most recent fiscal year. It maintains key commercial relationships with third-party community support providers and uses mobile app integrations to drive traffic.
In FY 2025, revenue reached nearly $12.2 billion, representing an increase of approximately 10.3% compared to the prior year. The company reported net income of approximately $2.5 billion for the period. This resulted in a net margin of roughly 20.5%. While the net margin remains healthy, it has trended downward from the roughly 48.3% margin reported in 2023.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.3x, which measures total debt against shareholder equity. The current ratio stands at approximately 1.4x, suggesting the company can cover short-term liabilities with its current assets. Free cash flow, or the cash left after capital investments, was nearly $4.6 billion. Note that stock-based compensation represented roughly 34.3% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
Opendoor serves residential sellers and buyers through a digital e-commerce platform that simplifies real estate investing across the contiguous United States. It utilizes a nationwide trade-in alliance with Lennar to help homeowners transition between properties. Following recent asset acquisitions, the company is integrating new technology to further streamline the home-selling process for its customers. By operating in over 50 markets, it has transacted more than 300,000 homes since its inception.
In FY 2025, revenue reached approximately $4.4 billion, which was a decrease of roughly 15.2% from the previous year. The company reported a net loss of nearly $1.3 billion during this period. This led to a negative net margin of roughly 29.7%. This trend reflects ongoing challenges in the residential housing market, as revenue has declined steadily since 2023.
As of its December 2025 balance sheet, the company maintains a debt-to-equity ratio of approximately 1.3x. Its current ratio is roughly 7.0x, indicating a high level of short-term assets relative to short-term obligations. Free cash flow was nearly $1.0 billion for the year. This cash flow represents the cash remaining after the company pays for its operations and capital investments, providing liquidity for its inventory-heavy business model.
Risk profile comparisonAirbnb faces significant competitive threats from travel search engines and Booking Holdings. Regulatory challenges are also mounting, including localized short-term rental bans in cities like New York and new European Union regulations. Tax audit risks in Italy and intellectual property disputes in the United States add further uncertainty. Additionally, Airbnb relies heavily on infrastructure from Amazon and Alphabet to maintain its digital marketplace.
Opendoor is highly sensitive to the U.S. residential real estate market, particularly fluctuations in mortgage interest rates. Competitive pressure comes from traditional brokers and other digital platforms entering the space. The company faces inventory risk, as market volatility can lead to sudden valuation adjustments for the homes it holds. Recent executive orders and industry changes following major legal settlements also pose regulatory and antitrust risks for institutional property buyers.
Valuation comparisonAirbnb carries a premium valuation reflecting its profitability, while Opendoor trades at a deep discount to sales due to its current net losses and revenue contraction.
MetricAirbnbOpendoor TechnologiesForward P/E34.8xN/AP/S ratio8.6x0.8xValuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?I'd go with Airbnb, though Opendoor deserves credit for making operational progress underneath some difficult headline numbers. Home acquisitions surged dramatically in the most recent quarter and AI is driving impressive productivity gains across its operations. Management is targeting profitability by year-end, and there is a credible path to get there.
But Opendoor is still deeply unprofitable, missed estimates on both revenue and earnings in Q2, and operates in a housing market that is showing little sign of loosening up. The stock trades near historic lows, and the path to sustainable profitability depends heavily on macro conditions outside the company's control.
Airbnb is running a tighter, more focused operation with a much cleaner financial profile. Revenue is growing at a healthy pace, free cash flow is substantial, and the platform is expanding into new categories that could broaden its reach over time. The travel demand environment is holding up well, and Airbnb sits at the center of it.
For a long-term investor, Airbnb offers a profitable, cash-generating business with durable demand behind it. Opendoor is still working to prove its model can thrive across a full housing cycle.
Opendoor Technologies continues to underperform, with Q2 earnings showing deeper losses and weak transaction volumes. OPEN's business model struggles to generate sustainable margins, and recent management changes have yet to yield significant tangible improvements. Heavy share dilution and ongoing stock-based compensation further erode shareholder value amid persistent operational underperformance.
Shares of Opendoor Technologies (NASDAQ:OPEN) are down 9% to $3.43 Thursday afternoon, leading a real estate selloff triggered by disappointing iBuyer earnings and renewed pressure on mortgage-sensitive names. Meanwhile, Rocket Companies (NYSE:RKT | RKT Price Prediction) stock is falling 5% to $13.10 ahead of its Q2 2026 earnings report tonight after the close.
The iShares U.S. Home Construction ETF (CBOE:ITB) is down 3% to $98.17, capturing broader housing-sector weakness as long-dated Treasury yields press higher. Offerpad Solutions (NYSE:OPAD) stock is the outlier, edging up 1% to $4.67 despite reporting a weak quarter earlier this week.
The action reflects a market losing patience with iBuyers and mortgage originators as home sales stay soft and financing costs grind higher. Traders are separating names by unit economics and forward pipeline rather than by top-line headlines.
Weak Q2 Earnings Drive Opendoor’s Slide Opendoor’s Q2 2026 earnings landed short on both lines. The company’s revenue of $883 million came in down 44% year over year (YoY) and below the $899.9 million consensus, while the GAAP loss of $0.17 per share was wider than the $0.07 loss expected.
Furthermore, Opendoor’s adjusted EBITDA came in at negative $4 million, and homes sold fell to 2,339 as the company works through inventory in a demand-constrained housing market. OPEN stock is now down 41% year to date (YTD), including today’s slide.
The market is telling Opendoor investors that volume is still the core issue. Cost discipline and margin improvement can’t fully offset a top line that keeps shrinking as buyers wait on rates.
Opendoor’s Q2 miss also comes against one of the tougher housing backdrops in recent years. Constrained demand and elevated delistings leave iBuyers with less room to grow revenue even when their per-transaction economics improve.
Rocket Companies Slides Into Tonight’s Report Rocket Companies stock is dropping ahead of its earnings release after the close, with analysts calling for roughly $2.82 billion in revenue and $0.17 in EPS. Those numbers imply meaningful YoY growth in the top line.
The pressure on RKT shares heading into the report is straightforward. Higher mortgage rates and weak existing-home sales weigh on origination volumes and refinancing activity, and traders are trimming exposure to the mortgage complex broadly. Rocket Companies shares are down 32% YTD.
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Rocket stock’s YTD decline reflects broader housing-finance headwinds as the 10-year Treasury yield sits near 12-month highs. That backdrop directly compresses refinance demand and pressures purchase-loan volumes, since mortgage rates track the long end of the curve.
The setup into tonight matters for the whole group. Guidance on Q3 origination volumes, gain-on-sale margins, and integration progress can either stabilize housing-finance sentiment or push the selloff into Friday.
Offerpad Resists the Sector Selloff Offerpad’s Q2 numbers looked unfavorable on the surface. The company’s revenue of $77.7 million was down 52% YoY and short of the $85.2 million consensus, and the company posted a GAAP loss of $1.94 per share. Moreover, Offerpad’s Q3 revenue guidance of about $95 million also missed the $115.6 million consensus.
Still, Offerpad stock is grinding higher on the day. Shareholders appear willing to look through the headline miss on the argument that a deliberate pullback in transaction volume can rebuild unit economics before scale returns. Offerpad stock is up sharply on a YTD basis.
The takeaway for OPAD holders is that this reaction has more to do with improving unit economics than with the reported top line. Note that OPAD is a comparatively small-cap, thinly traded stock; modest flows can move the shares quickly in either direction, and volatility risk is a real factor for anyone sizing a position.
What to Watch Rocket Companies’ conference call tonight is the near-term hinge for the entire group. Incremental caution on mortgage demand or margin compression can pull Opendoor and Offerpad shares along, while an upbeat tone can spark a relief bid across the housing complex.
For traders seeking indirect housing exposure, the iShares U.S. Home Construction ETF is a homebuilder-focused vehicle. It doesn’t hold OPEN, RKT, or OPAD directly, and its narrow sector concentration means that the fund can amplify housing headwinds when interest rates climb.
Investors may want to watch for whether long-dated yields keep pressing higher, since that pressure is the common thread across all four names today. Position sizing matters in a market this jumpy, and cautious exposure is warranted until the mortgage-rate picture clarifies.
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Opendoor Technologies (OPEN -8.24%) stock lost 19% in July, according to data provided by S&P Global Market Intelligence. The market is worried about high interest rates, stubborn high mortgage rates, and whether or not Opendoor can make a comeback in this climate. The stock has already fallen further after its second-quarter earnings report on Aug. 4.
Home flipping, the digital way Opendoor is an ibuyer, which means it buys up homes, renovates them, and flips them for a quick resale and profit. It has expanded to partnerships with on-the-ground real estate agents, a mortgage product, and innovative services like its highly successful cash now, more later product that gives home sellers the option to get cash for their homes at sale to Opendoor, with the potential for more when Opendoor sells it.
New CEO Kaz Nejatian has made several moves to get the company back in growth mode despite the challenging operating environment. He's leaning more into artificial intelligence (AI) to become more efficient and cut costs, has launched the cash now, more later product, and, most critically, has revamped the model to focus on volume rather than spread. While spread, or the amount the company buys a home for vs. how much it sells for, would seem like the logical way to go economically, there were fewer homes to buy, and they weren't the best ones. Nejatian's way gets better homes and smaller spreads for faster sales, driving a positive cycle.
Image source: Getty Images.
He now has three quarters under his belt as CEO, and the results are demonstrating momentum. The year-over-year results remain unfavorable as the new system plays out, but revenue increased 23% quarter over quarter, and gross margin improved from 8.2% to 9.7% year over year, despite a drop in gross profit from $128 million to $86 million.
The new model does seem to be working. Management's three goals have been to scale velocity, improve unit economics, and build operating leverage. In the second quarter, it accomplished all three; home acquisitions increased 77% from the previous quarter, and it purchased 4,378 homes, up from 1,757 last year. Homes on the market for 120 days or more declined from 10% last quarter to 9%, in contrast with a 27% industry average. And operations expense per acquisition close fell from $5,000 last year to $3,000 this year.
So why's the stock down? Despite clear progress, the report wasn't up to snuff for Wall Street. Analysts were looking for $905.9 million in revenue, while Opendoor reported $883 million, a major miss.
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The revenue outlook was also disappointing. Wall Street was looking for 25% growth, while management is guiding for a 20% year-over-year increase.
Management maintains that it's already profitable for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) on a 12-month, go-forward basis, and it expects to be profitable for adjusted net income on a 12-month, go-forward basis by the end of the year. At that point, the stock might pick up.
Opendoor Technologies (OPEN -8.74%) stock fell 8.5% on Wednesday while the S&P 500 and the Nasdaq Composite were down 0.2% and 0.9%, respectively.
Opendoor, the digital home-buying company, slid following its second-quarter earnings, which landed after Tuesday's close. The report showed revenue and profits well below where they were a year ago.
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Revenue and home sales fell sharply year over year Revenue for the company's Q2 came in at $883 million, down heavily from $1.57 billion in the same quarter last year, when the company sold 4,299 homes. It sold just 2,339 homes this quarter.
Adjusted earnings before interest taxed depreciation, and amortization (EBITDA) -- a rough measure of operating profitability -- swung to a $4 million loss from a $23 million profit a year ago.
Image source: Getty Images.
New leadership is aggressively rebuilding inventory This was driven by a decision by the company's previous leadership to buy far fewer homes, leaving Opendoor with fewer homes to sell. It's now taking a different tack. The company bought 4,378 homes in the quarter, up from 1,757 a year ago, and signed 6,908 contracts to buy more, the most since the second quarter of 2022.
Can Opendoor finally turn a profit? Management expects its recent strategy shift to start bearing fruit soon, with CEO Kaz Nejatian saying the company is "now on a clear path to sustained ANI profitability."
While I do expect the numbers to improve moving forward, I'm skeptical of the company turning an actual GAAP profit, which it's never done. And with the chance of interest rate hikes in the near future, this is not a stock I would own.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
PSP did not sell any shares in Suja Life's initial public offering and expects to increase its ownership through open-market purchases
, /PRNewswire/ -- Paine Schwartz Partners, LLC, together with its affiliated investment funds and entities (collectively, "PSP"), today announced its intention to purchase shares of Class A common stock ("Common Stock") of Suja Life, Inc. (Nasdaq: SUJA) ("Suja Life") in open-market transactions.
PSP has been an investor in Suja Life since August 2021 and did not sell any shares in connection with Suja Life's initial public offering. Based solely on information publicly disclosed by Suja Life, PSP believes the current trading price of Suja Life's Common Stock presents a company-specific investment opportunity for PSP.
"We believe Suja Life is a strong business with a leading portfolio of plant-based, better-for-you beverages that consumers love, and with long-term potential. Our view of Suja Life's strategy and underlying fundamentals has not changed," said Kevin Schwartz, Chief Executive Officer and Managing Partner of Paine Schwartz Partners.
Purchases by PSP, if any, would be made in the open market, subject to applicable securities laws. The timing, size and amount of any purchases would be determined by PSP in its discretion based on market conditions, the trading price of Suja Life's Common Stock and other factors PSP considers relevant. PSP undertakes no obligation to purchase any specific amount of Common Stock, and there can be no assurance that PSP will purchase any shares of Common Stock at all. PSP reserves the right to delay, suspend or discontinue purchases at any time without further announcement.
About Paine Schwartz Partners
Paine Schwartz Partners is the largest private equity firm dedicated to sustainable food chain investing, with ~$6.5 billion of AUM and over 20 years of experience. The firm invests across specific segments of the food and agribusiness value chain, with a focus on two core investment themes: productivity and sustainability and health and wellness. Through its proactive, thesis-driven approach, the firm targets value-added and differentiated companies and makes primarily control buyout investments, with a smaller allocation to growth companies. For further information, please see www.paineschwartz.com.
Forward-Looking Statements
This press release contains certain forward-looking statements that are based on PSP's beliefs and assumptions and on information currently available to PSP. Forward-looking statements include statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "opportunity," "plan," "potential," "predict," "project," "seek," "should," "will," "would" or similar expressions and the negatives of those terms. These forward-looking statements relate to, among other things, PSP's intention to purchase shares of Common Stock, the estimated timing and size of such purchases, if any, and PSP's views on its investments and on Suja Life's business and long-term potential.
Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ from PSP's expectations include, among other things: Suja Life's future business and financial results and the trading price of its Common Stock. Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent PSP's beliefs and assumptions only as of the date of this press release. You should read this press release with the understanding that the actual future results may be materially different from what PSP expects. Except as required by law, PSP assumes no obligation to update these forward-looking statements, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.
PSP Contact:
Paine Schwartz Media Contact
Andy Brimmer / Aaron Palash
Joele Frank, Wilkinson Brimmer Katcher
+1 212-355-4449
Opendoor Technologies Inc. (OPEN - Free Report) came out with a quarterly loss of $0.03 per share versus the Zacks Consensus Estimate of a loss of $0.02. This compares to a loss of $0.01 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -50.00%. A quarter ago, it was expected that this company would post a loss of $0.05 per share when it actually produced a loss of $0.05, delivering no surprise.
Over the last four quarters, the company has surpassed consensus EPS estimates just once.
Opendoor Technologies, which belongs to the Zacks Internet - Software industry, posted revenues of $883 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 3.29%. This compares to year-ago revenues of $1.57 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Opendoor Technologies shares have lost about 32.4% since the beginning of the year versus the S&P 500's gain of 11%.
What's Next for Opendoor Technologies?While Opendoor Technologies has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Opendoor Technologies was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.02 on $1.18 billion in revenues for the coming quarter and -$0.12 on $3.97 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Bentley Systems, Incorporated (BSY - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly earnings of $0.32 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Bentley Systems, Incorporated's revenues are expected to be $412.8 million, up 13.4% from the year-ago quarter.
Revenue up 23% QoQ. Contribution Profit up 59% QoQ. Contribution Margin up 140bps both QoQ and YoY. Homes purchased up 77% QoQ and 149% YoY. Inventory Health Improved 1% QoQ and 27% YoY. Combined Marketing and Operations per acquisition contract lowest in Company history1. Opendoor to be ANI positive on a twelve-month go-forward basis at the end of 2026.
SAN FRANCISCO, Aug. 04, 2026 (GLOBE NEWSWIRE) -- Opendoor Technologies Inc. (Nasdaq: OPEN), a leading e-commerce platform for residential real estate transactions, today reported quarterly financial results for its quarter ended June 30, 2026.
In May, Opendoor set guideposts for Q2 around acquisition contracts, revenue, margin and adjusted EBITDA. Q2 delivered on all four.
“For three quarters, I’ve been saying Opendoor will be ANI positive on a twelve-month go-forward basis at the end of this year. You no longer have to take my word for it. Run Q2 forward. At current contract volumes and unit economics, and with our existing cost base, we will generate positive Adjusted Net Income as those acquisition cohorts flow through to resale. We are now on a clear path to sustained ANI profitability. That outcome does not require an improved growth engine, margin expansion, or a housing-market recovery. In fact, at this volume, our operating model supports Adjusted Net Income profitability even if contribution margins decline and even if you adjust down for seasonality.”
“We built the model to reach profitability without relying on market tailwinds. Against one of the most challenging housing markets in decades - with constrained demand and delistings at record levels - Opendoor delivered exactly what we said we would. We grew acquisitions, expanded contribution margins, and reduced our exposure to housing-market risk. We achieved this through faster inventory turns and by scaling Cash Now, More Later - our capital-light offering that generates attractive returns while placing substantially less capital at risk per home.”
“When the product gets better, you don’t need to buy growth with heavy marketing or excess risk. We generated over 6,900 acquisition contracts in Q2 2026 on $5 million of marketing spend. The last time we generated more than 6,000 acquisition contracts, in Q2 2022, we spent $81 million. The alternative to buying growth is earning it by shipping great products.”
“We are also seeing early signs that our mortgage product is doing exactly what we built it to do: letting buyers purchase an Opendoor home through a single integrated transaction with an Opendoor mortgage as the default choice. As of today, we expect over half of our scheduled resale closes in Colorado, the first market we launched, to be financed with Opendoor Home Loans. In Texas, which launched just six weeks ago, it is already nearly 1 in 5 of our scheduled resale closes. And that is before the addition of FHA, VA, or adjustable-rate products, which we're shipping now. These percentages will fluctuate, and each state we launch will have its own dynamics. But Texas shows where a market can be just six weeks in, and Colorado shows where one can get to with some seasoning. Neither is a ceiling.”
We are executing against three management objectives critical to reaching profitability. The table below shows our progress against each objective this quarter.
Management ObjectiveHow You Can Hold Us AccountableHow We’re Executing(1) Scale Acquisitions- Acquisition contract dashboard on accountable.opendoor.com.
- Homes purchased increased 77% from the prior quarter.- We generated 6,908 acquisition contracts in 2Q26 on $5 million of marketing spend. The last time we topped 6,000 contracts, 2Q22, marketing spend was $81 million.
(2) Improve Unit Economics and Resale Velocity- % of Homes on the market for greater than 120 Days (Reported quarterly).- Product, feature & partnership launches tracked on accountable.opendoor.com
- % of homes on the market over 120 Days declined from 10% to 9% quarter-over-quarter, compared to 27% for the overall market.- As of today, we expect over half of all our scheduled resale closes in Colorado to be financed with Opendoor Home Loans.
(3) Build Operating Leverage2
- Fixed operating expenses hold relatively steady as we rescale volumes (Reported quarterly).
- Operations expense per acquisition close was $3.0 thousand in 2Q26, down from $5.0 thousand in 1Q26 and $8.4 thousand in 2Q25.3- Fixed operating expenses held steady at $35 million in 2Q26 compared to $33 million in 1Q26, up only $2 million quarter-over-quarter.- Trailing 12-month operations expense as a % of trailing 12-month revenue holds relatively steady or decreases over time. (Reported quarterly.)- Trailing 12-month operations expense as a % of revenue increased to 1.6% in 2Q26 compared to 1.3% in 1Q26. Trailing 12-month operations expense decreased modestly to $51 million in 2Q26 from $52 million in 1Q26.
Second Quarter 2026 Key Highlights
Three Months Ended (In millions, except percentages and non-dollar amounts) June 30,
2026 June 30,
2025 ChangeRevenue $883 $1,567 $(684)Gross profit $86 $128 $(42)Gross Margin 9.7% 8.2% Net loss $(162) $(29) $(133)Homes sold 2,339 4,299 (1,960)Homes purchased 4,378 1,757 2,621 Homes in inventory (at period end) 5,459 4,538 921 Inventory (at period end) $1,845 $1,530 $315 Homes under contract to purchase (at period end) 2,310 393 Non-GAAP Financial Highlights(1) Contribution Profit $51 $69 $(18)Contribution Margin 5.8% 4.4% Adjusted EBITDA $(4) $23 $(27)Adjusted EBITDA Margin (0.5)% 1.5% Adjusted Net Loss $(30) $(9) $(21) (1) See “—Use of Non-GAAP Financial Measures” for further details and a reconciliation of such non-GAAP measures to their nearest comparable GAAP measures.
Guide Posts
We're focused on making the right long-term decisions to rebuild Opendoor rather than managing short-term guidance. We're making meaningful progress and remain focused on execution. With that context, we want to provide you with the following guideposts:
We are driving to Adjusted Net Income positive by the end of 2026, measured on a twelve-month go-forward basis.Q3 2026 Outlook: Acquisitions: You can track our acquisition contracts on accountable.opendoor.com4.Revenue: We expect revenue to increase at least 20% year-over-year.Contribution Profit5: We expect Contribution Profit dollars to more than double year over year. We expect Contribution Margin to be around 4% to 4.5%. While Q3 is historically a seasonally weaker margin quarter - with historical Q2-to-Q3 contribution margin drops averaging nearly 500 basis points, excluding 2023 - this year’s expected sequential decline is significantly narrower, reflecting the structural health of our underlying cohorts.Adjusted EBITDA5: We continue to expect to be Adjusted EBITDA profitable on a twelve-month go-forward basis as of Q2 2026.Stock-Based Compensation: We expect Q3 SBC of approximately $110 million. You can continue to follow our progress on home acquisition contracts and product and feature launches every single week at accountable.opendoor.com.
Conference Call and Webcast Details
Opendoor will host a webcast to discuss its financial results on August 4, 2026, at 2:00 p.m. Pacific Time. A live webcast of the call can be accessed from Opendoor’s Investor Relations website at https://investor.opendoor.com. An archived version of the webcast will be available from the same website after the call.
About Opendoor
Opendoor’s mission is to tilt the world in favor of homeowners, by making homeownership simpler, faster, and fairer for everyone. Since 2014, the Company has provided people across the U.S. with a simpler, more certain way to sell and buy a home. Opendoor currently operates in markets nationwide. For more information, please visit www.opendoor.com.
Opendoor investors and others should note that we have used, and intend to continue to use, our website (including accountable.opendoor.com and investor.opendoor.com), press releases, Securities and Exchange Commission (“SEC”) filings, blogs, community hub and social media accounts, as well as the X (formerly known as Twitter) accounts of its Chief Executive Officer, @Nejatian, and @Opendoor, as means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Opendoor encourages investors and others to review the information Opendoor makes public in the foregoing locations as such information could be deemed to be material information. Please note that this list may be updated from time to time. Investors should subscribe to these social media accounts and Opendoor’s investor alerts, in addition to following its press releases, SEC filings, public conference calls and webcasts.
_____________________________
1 Company history refers to the period beginning in Q1 2018, the earliest period for which this metric is available on a consistent basis.
2 See Segment Information table.
3 Calculated using unrounded amounts. Amounts presented elsewhere are rounded to millions and may not recalculate.
4 The estimates and information presented at accountable.opendoor.com rely on assumptions and are subject to limitations; accordingly, no guarantee is made as to their accuracy. Acquisition contract volume represents contracts under which Opendoor has agreed to acquire a property, including through its Cash Now, More Later program, and does not reflect contracts that are subsequently cancelled.
5 Opendoor has not provided a quantitative reconciliation of forecasted Contribution Profit to forecasted Gross Profit, forecasted Contribution Margin to forecasted GAAP gross margin, nor a reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) within this press release because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to, inventory valuation adjustment and equity securities fair value adjustment. These items, which could materially affect the computation of forward-looking GAAP gross profit (loss), GAAP gross margin, and net income (loss), are inherently uncertain and depend on various factors, some of which are outside of the Company’s control. For more information regarding the non-GAAP financial measures discussed in this press release, please see “Use of Non-GAAP Financial Measures” following the financial tables below.
Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking, including statements regarding our fiscal 2026 and third quarter of 2026 financial outlook; whether we are able to operate a level consistent with positive adjusted EBITDA or positive Adjusted Net Income going forward; scaling acquisitions, improving unit economics and resale velocity, and building operating leverage; transitioning to direct-to-consumer relationships and expanding our product suite; our future product offerings, including mortgage products and our ability to leverage AI to drive operational efficiency; the future health and status of our financial condition; and our business strategy and plans, including plans to continue to invest in and enhance our products. These forward-looking statements generally are identified by the words “anticipate”, “believe”, “contemplate”, “continue”, “could”, “estimate”, “expect”, “forecast”, “future”, “guidance”, “intend”, “may”, “might”, “opportunity”, “outlook”, “plan”, “possible”, “potential”, “predict”, “project”, “should”, “strategy”, “strive”, “target”, “vision”, “will”, or “would”, any negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. The factors that could cause or contribute to actual future events to differ materially from the forward-looking statements in this press release include but are not limited to: our ability to implement our strategy; the current and future health and stability of the economy, financial conditions and residential housing market, including any extended downturns or slowdowns; changes in general economic and financial conditions (including federal monetary policy, the imposition of tariffs and price or exchange controls, interest rates, inflation, actual or anticipated recession, home price fluctuations, and housing inventory), as well as the probability of such changes occurring, that impact demand for our products and services, lower our profitability or reduce our access to future financings; actual or anticipated fluctuations in our financial condition and results of operations; changes in projected operational and financial results; our real estate assets and increased competition in the U.S. residential real estate industry; our ability to operate and grow our core business products, including the ability to obtain sufficient financing and resell purchased homes; investment of resources to pursue strategies and develop new products and services that may not prove effective or that are not attractive to customers and/or partners or that do not allow us to compete successfully; our ability to acquire and resell homes profitably; our ability to grow market share; our ability to leverage AI to drive operational efficiency; our ability to manage our growth effectively; our ability to expeditiously sell and appropriately price our inventory; our ability to access sources of capital, including debt financing to finance our real estate inventories and other sources of capital to finance operations and growth; our ability to maintain liquidity and to raise the funds necessary for any cash settlement upon conversion of our outstanding convertible notes or upon repurchasing our outstanding convertible notes; development and performance of our mortgage products; any dilutive effect on our common stock upon any settlement of our outstanding convertible notes through the conversion of notes into shares of our common stock; our ability to maintain and enhance our products and brand, and to attract customers; our ability to manage, develop and refine our digital platform, including our automated pricing and valuation technology; our ability to realize expected benefits from our restructuring and cost reduction efforts; our ability to comply with multiple listing service rules and requirements to access and use listing data, and to maintain or establish relationships with listings and data providers; our ability to obtain or maintain licenses and permits to support our current and future business operations; acquisitions, strategic partnerships, joint ventures, capital-raising activities or other corporate transactions or commitments by us or our competitors; actual or anticipated changes in technology, products, markets or services by us or our competitors; our ability to protect our brand and intellectual property; our success in retaining or recruiting, or changes required in, our officers, key employees and/or directors; the impact of the regulatory environment and potential regulatory instability within our industry and complexities with compliance related to such environment; any future impact of pandemics, epidemics, or other public health crises on our ability to operate, demand for our products and services, or general economic conditions; our ability to maintain our listing on the Nasdaq Global Select Market; changes in laws or government regulation affecting our business; the impact of pending or future litigation or regulatory actions; and the volatility in the price of our common stock and warrants. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described under the caption “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 19, 2026, as updated by our periodic reports and other filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We do not give any assurance that we will achieve our expectations.
OPENDOOR TECHNOLOGIES INC.
FINANCIAL HIGHLIGHTS AND OPERATING METRICS
(In millions, except percentages, homes sold, homes purchased, and homes in inventory)
(Unaudited)
Three Months Ended(In millions, except percentages and non-dollar amounts) June 30,
2026 March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025Revenue $883 $720 $736 $915 $1,567 Gross profit $86 $72 $57 $66 $128 Gross Margin 9.7% 10.0% 7.7% 7.2% 8.2%Net loss $(162) $(173) $(1,096) $(90) $(29)Homes sold 2,339 1,921 1,978 2,568 4,299 Homes purchased 4,378 2,474 1,706 1,169 1,757 Homes in inventory (at period end) 5,459 3,420 2,867 3,139 4,538 Inventory (at period end) $1,845 $1,139 $925 $1,053 $1,530 Percentage of homes “on the market” for greater than 120 days (at period end) 9% 10% 33% 51% 36%Non-GAAP Financial Highlights(1) Contribution Profit $51 $32 $7 $20 $69 Contribution Margin 5.8% 4.4% 1.0% 2.2% 4.4%Adjusted EBITDA $(4) $(31) $(43) $(33) $23 Adjusted EBITDA Margin (0.5)% (4.3)% (5.8)% (3.6)% 1.5%Adjusted Net Loss $(30) $(49) $(62) $(61) $(9) (1) See “—Use of Non-GAAP Financial Measures” for further details and a reconciliation of such non-GAAP measures to their nearest comparable GAAP measures.
OPENDOOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except share amounts which are presented in thousands, and per share amounts)
(Unaudited) Three Months Ended Six Months Ended
June 30,June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 2026
2025
REVENUE$883 $720 $736 $915 $1,567 $1,603 $2,720 COST OF REVENUE 797 648 679 849 1,439 1,445 2,493 GROSS PROFIT 86 72 57 66 128 158 227 OPERATING EXPENSES: Sales, marketing and operations 65 70 60 66 86 135 184 General and administrative 135 137 129 48 28 272 61 Technology and development 27 24 18 19 21 51 42 Restructuring 3 — — 1 6 3 9 Total operating expenses 230 231 207 134 141 461 296 LOSS FROM OPERATIONS (144) (159) (150) (68) (13) (303) (69)(LOSS) GAIN ON EXTINGUISHMENT OF DEBT — (1) (933) (1) 10 (1) 10 INTEREST EXPENSE (29) (23) (28) (34) (36) (52) (69)OTHER INCOME – Net 11 10 14 14 10 21 14 LOSS BEFORE INCOME TAXES (162) (173) (1,097) (89) (29) (335) (114)INCOME TAX EXPENSE — — 1 (1) — — — NET LOSS$(162) $(173) $(1,096) $(90) $(29) $(335) $(114)Net loss per share attributable to common shareholders: Basic$(0.17) $(0.18) $(1.26) $(0.12) $(0.04) $(0.35) $(0.16)Diluted$(0.17) $(0.18) $(1.26) $(0.12) $(0.04) $(0.35) $(0.16)Weighted-average shares outstanding: Basic 965,780 959,332 869,822 741,939 729,484 962,574 726,529 Diluted 965,780 959,332 869,822 741,939 729,484 962,574 726,529 OPENDOOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
June 30,
2026 December 31,
2025ASSETS CURRENT ASSETS: Cash and cash equivalents $896 $962 Restricted cash 66 339 Escrow receivable 13 4 Real estate inventory, net 1,845 925 Other current assets 30 69 Total current assets 2,850 2,299 PROPERTY AND EQUIPMENT – Net 24 27 RIGHT OF USE ASSETS 10 8 GOODWILL 3 3 OTHER ASSETS 74 70 TOTAL ASSETS $2,961 $2,407 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable and other accrued liabilities $78 $80 Non-recourse asset-backed debt – current portion 691 52 Convertible senior notes – current portion 194 193 Interest payable 3 1 Lease liabilities – current portion 2 1 Total current liabilities 968 327 NON-RECOURSE ASSET-BACKED DEBT – Net of current portion 1,071 1,068 LEASE LIABILITIES – Net of current portion 6 6 OTHER LIABILITIES 2 1 Total liabilities 2,047 1,402 SHAREHOLDERS’ EQUITY: Common stock, $0.0001 par value; 3,000,000,000 shares authorized; 968,626,958 and 957,245,487 shares issued, respectively; 968,626,958 and 957,245,487 shares outstanding, respectively — — Additional paid-in capital 6,283 6,038 Accumulated deficit (5,368) (5,033)Accumulated other comprehensive loss (1) — Total shareholders’ equity 914 1,005 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $2,961 $2,407 OPENDOOR TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Six Months Ended
June 30,2026
2025
CASH FLOWS FROM OPERATING ACTIVITIES: Net loss$(335) $(114)Adjustments to reconcile net loss to cash, cash equivalents, and restricted cash (used in) provided by operating activities: Depreciation and amortization 16 22 Amortization of right of use asset 1 1 Stock-based compensation 239 27 Inventory valuation adjustment 23 34 Change in fair value of equity securities — 3 Loss (gain) on early extinguishment of debt 1 (10)Other 5 4 Origination of mortgage loans held for sale (5) — Proceeds from sale and principal collections of mortgage loans held for sale 5 — Changes in operating assets and liabilities: Escrow receivable (9) (4)Real estate inventory (932) 593 Other assets 37 (11)Accounts payable and other accrued liabilities (11) (2)Interest payable 2 2 Lease liabilities (1) (1)Net cash (used in) provided by operating activities (964) 544 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (9) (6)Proceeds from sales, maturities, redemptions and paydowns of marketable securities — 6 Purchase of non-marketable equity securities (5) — Net cash (used in) provided by investing activities (14) — CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from issuance of convertible senior notes, net of discount — 75 Proceeds from issuance of common stock for ESPP 1 1 Proceeds from non-recourse asset-backed debt 781 671 Principal payments on non-recourse asset-backed debt (143) (853)Payment of loan origination fees and debt issuance costs — (16)Net cash provided by (used in) financing activities 639 (122)NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH (339) 422 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – Beginning of period 1,301 763 CASH, CASH EQUIVALENTS, AND RESTRICTED CASH – End of period$962 $1,185 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION – Cash paid during the period for interest$46 $62 DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: Stock-based compensation expense capitalized for internally developed software$5 $2 Principal value of 2026 Notes extinguished in Debt Exchange$— $(246)Principal value of 2030 Notes issued in Debt Exchange$— $246 RECONCILIATION TO CONDENSED CONSOLIDATED BALANCE SHEETS: Cash and cash equivalents$896 $789 Restricted cash 66 396 Cash, cash equivalents, and restricted cash$962 $1,185 Use of Non-GAAP Financial Measures
To provide investors with additional information regarding the Company’s financial results, this press release includes references to certain non-GAAP financial measures that are used by management. The Company believes these non-GAAP financial measures including Adjusted Gross Profit, Contribution Profit, Adjusted Net Loss, Adjusted EBITDA, and any such non-GAAP financial measures expressed as a Margin, are useful to investors as supplemental operational measurements to evaluate the Company’s financial performance.
The non-GAAP financial measures should not be considered in isolation or as a substitute for the Company’s reported GAAP results because they may include or exclude certain items as compared to similar GAAP-based measures, and such measures may not be comparable to similarly-titled measures reported by other companies. Management uses these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Management believes that these non-GAAP financial measures provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of the Company’s recurring operating results.
Adjusted Gross Profit and Contribution Profit
To provide investors with additional information regarding our margins and return on inventory acquired, we have included Adjusted Gross Profit and Contribution Profit, which are non-GAAP financial measures. We believe that Adjusted Gross Profit and Contribution Profit are useful financial measures for investors as they are supplemental measures used by management in evaluating unit level economics and our operating performance. Each of these measures is intended to present the economics related to homes sold during a given period. We do so by including revenue generated from homes sold (and adjacent services) in the period and only the expenses that are directly attributable to such home sales, even if such expenses were recognized in prior periods, and excluding expenses related to homes that remain in inventory as of the end of the period. Contribution Profit provides investors a measure to assess Opendoor’s ability to generate returns on homes sold during a reporting period after considering home purchase costs, renovation and repair costs, holding costs and selling costs.
Adjusted Gross Profit and Contribution Profit are supplemental measures of our operating performance and have limitations as analytical tools. For example, these measures include costs that were recorded in prior periods under GAAP and exclude, in connection with homes held in inventory at the end of the period, costs required to be recorded under GAAP in the same period. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We include a reconciliation of these measures to the most directly comparable GAAP financial measure, which is gross profit.
Adjusted Gross Profit / Margin
We calculate Adjusted Gross Profit as gross profit under GAAP adjusted for (1) inventory valuation adjustment in the current period, and (2) inventory valuation adjustment in prior periods. Inventory valuation adjustment in the current period is calculated by adding back the inventory valuation adjustments recorded during the period on homes that remain in inventory at period end. Inventory valuation adjustment in prior periods is calculated by subtracting the inventory valuation adjustments recorded in prior periods on homes sold in the current period. Adjusted Gross Margin is Adjusted Gross Profit as a percentage of revenue.
We view this metric as an important measure of business performance as it captures gross margin performance isolated to homes sold in a given period and provides comparability across reporting periods. Adjusted Gross Profit helps management assess home pricing, service fees and renovation performance for a specific resale cohort.
Contribution Profit / Margin
We calculate Contribution Profit as Adjusted Gross Profit, minus certain costs incurred on homes sold during the current period including: (1) holding costs incurred in the current period, (2) holding costs incurred in prior periods, and (3) direct selling costs. Contribution Margin is Contribution Profit as a percentage of revenue. Contribution Profit per Home Sold is calculated by dividing Contribution Profit by the number of homes sold in the period.
We view these metrics as an important measure of business performance as it captures the unit level performance isolated to homes sold in a given period and provides comparability across reporting periods. Contribution Profit helps management assess the revenues and certain costs directly attributable to a specific resale cohort.
OPENDOOR TECHNOLOGIES INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
(In millions, except percentages, and homes sold)
(Unaudited) The following table presents a reconciliation of our Adjusted Gross Profit and Contribution Profit to our gross profit, which is the most directly comparable GAAP measure, for the periods indicated:
Three Months Ended Six Months Ended
June 30,(in millions, except percentages and homes sold, or as noted) June 30, 2026 March 31, 2026 December 31, 2025 September 30, 2025 June 30, 2025 2026
2025
Revenue (GAAP) $883 $720 $736 $915 $1,567 $1,603 $2,720 Gross profit (GAAP) $86 $72 $57 $66 $128 $158 $227 Gross Margin 9.7% 10.0% 7.7% 7.2% 8.2% 9.9% 8.3%Adjustments: Inventory valuation adjustment – Current Period(1)(2) 14 9 9 15 21 18 27 Inventory valuation adjustment – Prior Periods(1)(3) (9) (14) (21) (17) (14) (18) (19)Adjusted Gross Profit $91 $67 $45 $64 $135 $158 $235 Adjusted Gross Margin 10.3% 9.3% 6.1% 7.0% 8.6% 9.9% 8.6%Adjustments: Direct selling costs(4) (29) (23) (23) (28) (43) (52) (72)Holding costs on sales – Current Period(5)(6) (3) (3) (4) (4) (6) (11) (20)Holding costs on sales – Prior Periods(5)(7) (8) (9) (11) (12) (17) (12) (20)Contribution Profit $51 $32 $7 $20 $69 $83 $123 Homes sold in period 2,339 1,921 1,978 2,568 4,299 4,260 7,245 Contribution Profit per Home Sold(in thousands) $22 $17 $4 $8 $16 $19 $17 Contribution Margin 5.8% 4.4% 1.0% 2.2% 4.4% 5.2% 4.5% ________________
(1) Inventory valuation adjustment includes adjustments to record real estate inventory at the lower of its carrying amount or its net realizable value.
(2) Inventory valuation adjustment — Current Period is the inventory valuation adjustments recorded during the period presented associated with homes that remain in inventory at period end.
(3) Inventory valuation adjustment — Prior Periods is the inventory valuation adjustments recorded in prior periods associated with homes that sold in the period presented.
(4) Represents selling costs incurred related to homes sold in the relevant period. This primarily includes broker commissions, external title and escrow-related fees and transfer taxes. Selling costs are included in Sales, marketing and operations on the condensed consolidated statements of operations.
(5) Holding costs primarily include property taxes, insurance, utilities, homeowners association dues and maintenance costs. Holding costs are included in Sales, marketing, and operations on the condensed consolidated statements of operations.
(6) Represents holding costs incurred in the period presented on homes sold in the period presented.
(7) Represents holding costs incurred in prior periods on homes sold in the period presented.
Adjusted Net Loss and Adjusted EBITDA
We also present Adjusted Net Loss and Adjusted EBITDA, which are non-GAAP financial measures that management uses to assess our underlying financial performance. These measures are also commonly used by investors and analysts to compare the underlying performance of companies in our industry. We believe these measures provide investors with meaningful period over period comparisons of our underlying performance, adjusted for certain charges that are non-cash, not directly related to our revenue-generating operations, not aligned to related revenue, or not reflective of ongoing operating results that vary in frequency and amount.
Adjusted Net Loss and Adjusted EBITDA are supplemental measures of our operating performance and have important limitations. For example, these measures exclude the impact of certain costs required to be recorded under GAAP. These measures also include inventory valuation adjustments that were recorded in prior periods under GAAP and exclude, in connection with homes held in inventory at the end of the period, inventory valuation adjustments required to be recorded under GAAP in the same period. These measures could differ substantially from similarly titled measures presented by other companies in our industry or companies in other industries. Accordingly, these measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We include a reconciliation of these measures to the most directly comparable GAAP financial measure, which is net loss.
Adjusted Net Loss
We calculate Adjusted Net Loss as GAAP net loss adjusted to exclude non-cash expenses of stock-based compensation, equity securities fair value adjustment and the amortization of stock-based compensation capitalized to internally developed software (“IDSW”). It excludes expenses that are not directly related to our revenue-generating operations such as restructuring and CEO make-whole provision. It also excludes loss (gain) on extinguishment of debt as these expenses or gains were incurred as a result of decisions made by management to terminate or partially extinguish portions of our outstanding credit facilities or convertible senior notes early; these expenses or gains are not reflective of ongoing operating results and vary in frequency and amount. Adjusted Net Loss also aligns the timing of inventory valuation adjustments recorded under GAAP to the period in which the related revenue is recorded in order to improve the comparability of this measure to our non-GAAP financial measures of unit economics, as described above. Our calculation of Adjusted Net Loss does not currently include the tax effects of the non-GAAP adjustments because our taxes and such tax effects have not been material to date.
Adjusted EBITDA / Margin
We calculated Adjusted EBITDA as Adjusted Net Loss adjusted for depreciation and amortization, property financing and other interest expense, interest income, and income tax expense. Adjusted EBITDA is a supplemental performance measure that our management uses to assess our operating performance and the operating leverage in our business. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of revenue.
The following table presents a reconciliation of our Adjusted Net Loss and Adjusted EBITDA to our net loss, which is the most directly comparable GAAP measure, for the periods indicated:
(1) Represents the gains and losses on certain financial instruments, which are marked to fair value at the end of each period.
(2) Inventory valuation adjustment includes adjustments to record real estate inventory at the lower of its carrying amount or its net realizable value.
(3) Inventory valuation adjustment — Current Period is the inventory valuation adjustments recorded during the period presented associated with homes that remain in inventory at period end.
(4) Inventory valuation adjustment — Prior Periods is the inventory valuation adjustments recorded in prior periods associated with homes that sold in the period presented.
(5) Restructuring expense consists primarily of severance and other termination benefits for employees whose roles have been eliminated, consulting fees, and expenses related to the termination of certain leases incurred during the restructuring process.
(6) In connection with the appointment of the Company's new Chief Executive Officer in September 2025, the Company granted two make-whole awards related to compensation forfeited from his former employer. The awards consist of (i) a $15 million cash award and (ii) a restricted stock unit award with a grant date value of $15 million. Both awards vest nine months after his start date, contingent upon his continued service as Chief Executive Officer through the vesting date, and are expensed over the requisite service period. The CEO make-whole provision adjustment reflects only the expense associated with the cash make-whole award. The expense associated with the restricted stock unit make-whole award is included in the stock-based compensation line item presented separately in the reconciliation above.
(7) Primarily includes related party services income.
(8) Includes interest expense on our non-recourse asset-backed debt facilities.
(9) Includes (i) amortization of debt issuance costs, loan origination fees, commitment fees, unused fees, and other interest-related costs on our asset-backed debt facilities, and (ii) amortization of debt issuance costs and debt discounts and interest expense related to our convertible senior notes.
(10) Consists mainly of interest earned on cash, cash equivalents and restricted cash.
OPENDOOR TECHNOLOGIES INC.
SEGMENT INFORMATION
(In millions)
(Unaudited)
Three Months Ended(in millions) June 30,
2026 March 31,
2026 December 31,
2025 September 30,
2025 June 30,
2025Revenue $883 $720 $736 $915 $1,567 Less: Cost of revenue (797) (648) (679) (849) (1,439)Direct selling costs(1) (29) (23) (23) (28) (43)Holding costs(2) (11) (12) (15) (16) (23)Advertising and other marketing expense(3) (5) (19) (9) (7) (7)Operations(4) (14) (12) (13) (12) (15)Fixed operating expense(5) (35) (33) (35) (37) (31)CEO make-whole provision(6) (4) (5) (5) — — Stock-based compensation (19) (15) (16) (13) (13)Stock-based compensation for market condition RSUs (100) (105) (89) (14) — Interest expense (29) (23) (28) (34) (36)Interest income 8 10 13 12 9 Other(7) (10) (8) (933) (7) 2 Net loss $(162) $(173) $(1,096) $(90) $(29) ________________
(1) Represents selling costs incurred related to homes sold in the relevant period. This primarily includes broker commissions, external title and escrow-related fees and transfer taxes and are included in Sales, marketing and operations.
(2) Represents holding costs incurred both in the period presented and in prior periods on homes sold in the period presented (“Resale Cohort Holding Costs”). Holding costs include mainly property taxes, insurance, utilities, homeowners association dues, cleaning and maintenance costs. Holding costs are included in Sales, marketing and operations in the period in which they are incurred (“GAAP Holding Costs”).
(3) Advertising expenses are included in Sales, marketing and operations. Other marketing expenses include non-advertising marketing expenses such as acquisition leads and referrals and public relations services and are included in Sales, marketing and operations.
(4) Represents operating expenses that are generally related to the volume of homes transacted during the period and tend to be variable in nature. Primarily includes workforce expenses in support of sales, and real estate inventory operations.
(5) Represents operating expenses that are not directly correlated with home transaction volumes. These expenses generally include costs related to salaries and benefits for our leadership, finance, technology, human resources, legal, marketing and administrative personnel, as well as third-party professional services fees, rent expense and third-party software.
(6) In connection with the appointment of the Company's new Chief Executive Officer in September 2025, the Company granted two make-whole awards related to compensation forfeited from his former employer. The awards consist of (i) a $15 million cash award and (ii) a restricted stock unit award with a grant date value of $15 million. Both awards vest nine months after his start date, contingent upon his continued service as Chief Executive Officer through the vesting date, and are expensed over the requisite service period. The CEO make-whole provision adjustment reflects only the expense associated with the cash make-whole award. The expense associated with the restricted stock unit make-whole award is included in the stock-based compensation line item presented separately in the reconciliation above.
(7) Other segment income (expenses) are primarily made up of depreciation and amortization, gain on deconsolidation, net, restructuring, and amortization of stock-based compensation capitalized to internally developed software. This also includes the elimination of holding costs incurred in prior periods on homes sold in the periods presented, and includes holding costs incurred in the current period on homes remaining in inventory at period end.
Opendoor Technologies shares are powering higher. Why is OPEN stock up today? Opendoor Steps Into Q2 Earnings With a Profitability Milestone in ReachThe Street is looking for a loss of 7 cents per share against revenue of $666.54 million when the company reports after the bell, figures that would represent a meaningful step forward from where the business stood three months ago.
Opendoor Guidance: What Management Set Up in Q2When first-quarter results were released in May, management projected roughly 25% sequential revenue growth for the second quarter, a target that would land the outcome close to the current consensus. Equally important, the company projected adjusted EBITDA would reach breakeven territory for the quarter, a level that would mark the first time in recent memory Opendoor has achieved that threshold on a quarterly basis.
CEO Kaz Nejatian had said the company expects to sustain adjusted EBITDA profitability on a rolling 12-month basis beginning with the second quarter, a commitment that investors have likely been watching closely.
The first quarter provided a credible platform for those expectations. Revenue of $720 million came with a gross margin of 10%, a meaningful improvement from the 8.6% recorded in the comparable period a year earlier. Acquisition contracts crossed 5,000 during the quarter, twice the volume from the fourth quarter and the strongest showing since 2022, while the number of homes purchased expanded 45% from the prior period.
The Chart Says "Bounce," The Trend Says "Prove It"OPEN is trying to rebound, but it is doing so from a technically weak position. The stock is still below all major moving averages: 3% under the 20‑day, 7.6% under the 50‑day, 11.8% under the 100‑day and 24.5% under the 200‑day. Until it can reclaim the 50‑day area and hold it, any strength looks more like a short‑term pop than a real trend change.
RSI at 47.85 is neutral, which fits a stock trying to stabilize rather than break out. The moving‑average structure still leans bearish with the 20‑day below the 50‑day and the March death cross shaping the broader trend.
Key resistance: $4.51 — This is the first test for any rebound because it aligns with the 50‑day zone where sellers have stepped in before. Key support: $4.18 — This is the nearest floor buyers have defended. If it breaks, momentum can fade quickly in a stock that still needs to rebuild technical credibility. OPEN Shares Are Moving HigherOPEN Price Action: Opendoor shares were up 5.84% at $4.17 at the time of publication on Tuesday, according to Benzinga Pro.
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Opendoor Technologies (NASDAQ:OPEN) has traveled a strange road: from iBuyer poster child to penny-stock refugee to retail-frenzy meme, and now to something that looks a lot like a strategic asset trading below replacement cost. Shares opened at $3.71 on July 30, 2026, up 78.0% over the trailing year but down 36.7% year to date. No deal talks have been reported. What follows is an exercise in strategic logic.
The pitch to a buyer is straightforward: a national iBuying stack, automated valuation models, direct-to-consumer transaction flow, and $999 million in cash against a market cap near $3.6 billion. New CEO Kaz Nejatian says “the machine is working,” with aged inventory collapsing from 51% to 10% of listings and acquisition contracts up 2x quarter-over-quarter.
Here are five potential acquirers, ranked from longest shot to best strategic fit.
5. Amazon: The Wildcard Amazon.com (NASDAQ:AMZN | AMZN Price Prediction) has $101.8 billion in cash and could write the check without noticing. But Amazon has no residential real estate footprint, and CEO Andy Jassy’s focus on “some of the biggest inflections of our lifetime” points at AI and AWS, not iBuying. This is the longest shot on the board.
4. Compass: Strategic Fit, Wrong Timing Compass (NYSE:CMP) just closed on Anywhere Real Estate and is carrying $3.14 billion in long-term debt. CEO Robert Reffkin says the team is “manically focused” on integration. Bolting on iBuying makes sense in theory, but the balance sheet says wait.
3. CoStar: The Acquirer With Cash CoStar Group (NASDAQ:CSGP) has $1.27 billion in cash, an aggressive M&A record, and a Homes.com push where Opendoor’s transaction data would slot in. CEO Andy Florance is chasing a “$100 billion total addressable market.”
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2. Zillow: The Ironic Reprise Zillow Group (NASDAQ:Z) shuttered Zillow Offers in 2021 after billions in losses. Yet with $200 million in Q1 operating cash flow and 220 million monthly users, buying a fixed iBuyer at a distressed price is philosophically tempting. Jeremy Wacksman calls Zillow “increasingly indispensable.” The scars argue against it.
1. Rocket Companies: The Cleanest Fit Rocket Companies (NYSE:RKT) already owns Redfin and Mr. Cooper, servicing $2.10 trillion unpaid principal balance across 9.4 million loans. CEO Varun Krishna’s mantra is “Hard market. Stronger Rocket.” Opendoor’s cash-offer engine and mortgage-attach potential would complete the stack.
Where a Strategic Investor or PE Fits The depressed equity, asset-backed debt structure, and capital intensity make Opendoor a natural take-private candidate. A PIPE or anchor investor could buy governance influence cheaply while Nejatian executes on the target of adjusted net income positive by the end of 2026.
What to Watch Catalysts that reprice the equity include a turn in the 4.6% 10-year yield, execution against Q2 guidance, and any 13D or unusual options activity. Analyst sentiment is neutral, but with a consensus price target of $4.95.
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The Betting Market Setup: Traders See a Drift Lower With 159 days between today and January 1, 2027, prediction market traders are signaling a near-term pause for Opendoor Technologies (NASDAQ: OPEN). The most active Polymarket contract, covering July 2026, assigns a dominant 45% probability to a $3.50 close, sitting just below the current $3.84 price. Every other bracket, including $6.00 (2%) and $7.00 (1%), carries minimal conviction. Total volume of $35,700 confirms genuine, if modest, engagement.
Fundamentals: A Turnaround Mid-Flight Opendoor’s iBuyer model is in the middle of a structural reset under CEO Kaz Nejatian. Q1 2026 revenue was $720 million, down 38% year over year, while gross margin expanded to 10.0% from 8.6%. Aged inventory over 120 days fell to 10% from 51% in Q3 2025, reflecting a much healthier inventory mix. The company ended the quarter with $999 million in cash and a 0.19 debt-to-equity ratio. GAAP EPS of -$0.18 was heavily affected by a $105 million market-condition RSU-related stock-based compensation charge.
What Earnings Told Us Nejatian declared, “As of April 1st, Opendoor is adjusted EBITDA profitable, on a 12-month go-forward basis.”Management also guided for approximately 25% quarter-over-quarter revenue growth in Q2 and Adjusted EBITDA breakeven. Despite that outlook, market sentiment remains cautious: a Polymarket contract recently implied only a 28.5% probability that OPEN would beat Q2 EPS expectations.
The primary scheduled catalyst before year-end is Opendoor’s Q2 2026 earnings report, expected in early August 2026. Beyond earnings, mortgage-rate trends, existing-home sales, and the stock’s high beta of 3.56 could amplify price swings as housing-sector sentiment shifts. Key unscheduled risks include the refinancing or repayment of convertible notes and continued shareholder dilution from substantial stock-based compensation.
Analyst and AI Outlook Over a 12-month horizon, the consensus analyst price target is $4.88, implying 27.2% upside, although analyst sentiment remains mixed, with 2 Buy, 5 Hold, and 2 Sell ratings. A base-case valuation projects $4.30 by year-end, while a bull-case scenario reaches $4.98. These longer-term valuation frameworks contrast with Polymarket’s more cautious near-term expectations, which imply limited confidence in an upside earnings surprise.
Final Assessment A move from $3.84 to $3.50 would be well within Opendoor’s typical five-week trading range. Sustained downside beyond that would likely require a weaker-than-expected Q2 earnings report or softer forward guidance.
For OPEN to reach the internal $5.10 year-end price target, management would likely need to deliver on its guidance for approximately 25% sequential revenue growth while demonstrating that its recent claim of sustained Adjusted EBITDA profitability is translating into operating results.
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Opendoor Technologies stock is feeling bearish pressure. What’s behind OPEN decline? The Chart Offered No CushionThe technical setup coming into Thursday gave buyers little to stand on. OPEN was already trading 16.1% below its 20-day moving average, 15.7% below its 50-day, 19.5% below its 100-day and 31.6% below its 200-day, a configuration that signals sellers have maintained control across every meaningful time frame.
A death cross established in March, when the 50-day dropped below the 200-day, continues to act as overhead resistance that limits how far rallies can travel before running into supply. MACD sits below its signal line with a negative histogram, pointing to fading upside pressure that makes multi-day bounces vulnerable to being sold.
Key resistance sits at $4.60 near the 50-day moving average while $4.28 represents the nearest support level around current prices. The 52-week range stretches from $1.70 to $10.87, and despite a 75% gain over the past year the stock remains well off its highs, a profile that tends to invite profit-taking when the market turns defensive.
Benzinga Edge assigns the stock a momentum score of 70.16, flagging it as bullish on the longer-window trend even after Thursday’s pullback. The risk embedded in that reading is straightforward: when momentum is the primary thesis rather than value or fundamental quality, the chart becomes everything, and losing key moving average levels can accelerate selling rapidly.
Earnings Are Around the CornerThe next concrete catalyst arrives Aug. 4 when Opendoor reports second-quarter results. Analysts are projecting a loss of 3 cents per share, worse than the 1 cent loss posted in the same period last year, on revenue of $900.86 million, down sharply from $1.57 billion a year ago.
In an environment where the market is already reducing risk, year-over-year declines on both the top and bottom line are the kind of numbers that keep cautious investors on the sidelines until management can demonstrate the trajectory is stabilizing.
The analyst community is deeply divided. The stock carries a consensus Hold rating with an average price target of $5.33, but the range of individual views tells a more complicated story. Keefe Bruyette raised its Underperform target to $2.65, Alliance Global Partners initiated with a Buy and an $8.00 target and Citigroup maintained its Sell with a target of $1.40.
OPEN Shares Are PlummetingOPEN Price Action: Opendoor shares were down 12.10% at $3.85 at the time of publication on Thursday, according to Benzinga Pro.
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Opendoor continues commitment to transparency with video livestream and shareholder Q&A July 14, 2026 09:00 ET | Source: Opendoor Technologies Inc.
SAN FRANCISCO, July 14, 2026 (GLOBE NEWSWIRE) -- Today, Opendoor Technologies Inc. (“Opendoor”) (Nasdaq: OPEN) announced that it will report second quarter 2026 financial results for the period ended June 30, 2026 following the close of the market on Tuesday, August 4, 2026.
Modernizing Investor Access
On August 4, 2026, management will host our Financial Open House video livestream at 2:00 p.m. PT (5:00 p.m. ET) to discuss the company’s business and financial results.
We believe in building in the open. The Financial Open House replaces the traditional earnings conference call with a video event, including a live segment for shareholder Q&A.
Shareholder Q&A
We invite shareholders to participate directly through Robinhood’s Say Technologies platform by visiting https://app.saytechnologies.com/opendoor-2026-q2
Submit & Upvote: Starting Wednesday, July 22, 2026, shareholders can post questions and upvote the ones they most want answered. Questions will close on July 29, 2026.Live Answers: Management will address a selection of the top-voted questions live during the broadcast, alongside questions from research analysts. Event Details
What: Opendoor Second Quarter 2026 Financial Open HouseWhen: Tuesday, August 4, 2026Time: 2:00 p.m. PT (5:00 p.m. ET)Watch Live: The Financial Open House will stream live at investor.opendoor.com and on Robinhood, YouTube, and X.Access Replay: A full replay and earnings materials will be available following the event at investor.opendoor.com.
As always, you can continue to watch our progress and see what we’ve been shipping at accountable.opendoor.com.
About Opendoor
Opendoor exists to tilt the world in favor of homeowners by making homeownership simpler, faster, and fairer for everyone. Since 2014, Opendoor has given people a more convenient, more certain way to buy and sell a home, whether they already own or are working hard to become homeowners. Opendoor currently operates in markets across the U.S. For more information, please visit www.opendoor.com.
Each week, Benzinga’s Stock Whisper Index uses a combination of proprietary data and pattern recognition to showcase five stocks that are just under the surface and deserve attention.
Investors are constantly on the hunt for undervalued, under-followed and emerging stocks. With countless methods available to retail traders, the challenge often lies in sifting through the abundance of information to uncover new opportunities and understand why certain stocks should be of interest.
Here’s a look at the Benzinga Stock Whisper Index for the week ending July 10:
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Opendoor Technologies (OPEN) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.
Shares of Opendoor Technologies (NASDAQ:OPEN) are up 11% to $5.30 at midday Thursday, breaking away from the rest of the iBuyer group in an otherwise uneven session for beaten-down real estate names.
Peer Offerpad Solutions (NYSE:OPAD) is trailing at up 4% to $5.22, while Zillow Group (NASDAQ:Z | Z Price Prediction) stock has added 2% to $32.96. A week ago, these three names rallied in unison; today, Opendoor stock is the clear winner.
The divergence stands out because Opendoor stock is still down 10% year to date, so today’s pop looks more like an oversold bounce than a fundamental re-rating. Retail sentiment appears to be doing the heavy lifting today.
Retail Flow Drives the Move There’s no single news trigger behind OPEN stock’s jump. The action looks like retail and momentum flow into volatile small-cap real estate names, stacked on top of an oversold bounce off depressed levels. Reddit chatter has been quietly building.
Opendoor sentiment on Reddit stayed firmly bullish into the move, with sentiment scores ranging from 66 to 74 across the past several sessions. Discussion has migrated from r/wallstreetbets to r/stocks, suggesting broader retail interest beyond pure speculation.
The macro backdrop remains soft for Opendoor and its iBuyer peers. Housing starts fell to 1.18 million annualized in May, down from a March peak, and existing home sales slipped to 4.09M in June. Those readings keep OPEN and OPAD transaction volumes suppressed, which frames today’s move as a flow-driven rally rather than a fundamental shift.
The Valuation Irony Here’s the twist: today’s price winners are the two unprofitable iBuyers, while the one name actually earning money is lagging behind.
Opendoor stock carries no TTM P/E ratio and has TTM EPS of -$1.76. The company’s most recent quarter showed revenue down 38% year over year, and its analyst target sits at just $4.82, below today’s price. Offerpad is deeper in the red with TTM EPS of -$11.70 and a 50% year-over-year revenue decline; OPAD shares are down 59% year to date.
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Zillow is the profitable one, with TTM EPS of $0.25 and a TTM P/E ratio of 131x. The company saw Q1 2026 revenue growth of 18% and earnings growth of 5x year over year. Yet, Zillow shares remain down 52% year to date, and today’s small gain barely registers next to Opendoor’s double-digit jump.
Bull and Bear Cases on Opendoor The bull case rests on the “Opendoor 2.0” turnaround narrative, retail momentum, and index-flow interest. Management has guided to adjusted EBITDA breakeven for Q2, and CEO Kaz Nejatian has been vocal that the operating machine is working. That combination has pulled speculative capital into the name.
The bear case shouldn’t be overlooked, however. Opendoor is GAAP unprofitable, highly rate-sensitive, and carries a beta of 3.56, meaning big up days can flip to big down days quickly. Furthermore, Opendoor’s dilution risk sits at 964.7 million shares outstanding, and OPEN stock’s 52-week range of $0.73 to $10.87 tells you exactly how wide the swings can get. Thus, investors should keep their position sizing modest on this one.
For broader housing-theme exposure without single-stock iBuyer risk, the SPDR S&P Homebuilders ETF (NYSEARCA:XHB) offers a diversified alternative, though it doesn’t hold Opendoor or Offerpad.
What to Watch Now Investors can watch for whether Opendoor stock holds the $5 in the coming sessions and whether volume confirms the breakout attempt. The stock’s beta of 3.56 means a reversal could be just as sharp as today’s rally, so entries this late in the session carry above-average risk.
The next real test comes with Opendoor’s Q2 2026 report, when the adjusted EBITDA breakeven guide gets measured against actual results. Any slippage against that bar could unwind the recent retail bid quickly. Until then, momentum traders may keep OPEN and OPAD active into Friday.
Zillow shares remain the odd name out. Traders willing to look past the company’s elevated 131x TTM P/E and focus on the forward multiple of 15x may find the profitable property-tech name to be a more durable story once the retail bounce fades.
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Zillow (NASDAQ: ZG | ZG Price Prediction) posted $46 million in net income last quarter while Opendoor Technologies (NASDAQ: OPEN) lost $173 million. Zillow runs a digital tollbooth on home search traffic. Opendoor buys houses with cash, holds them, and hopes to resell fast.
Ad Dollars Flow In. Inventory Sits on the Books. Zillow’s $708 million in Q1 revenue grew 18.4% year over year, powered by three engines that never touch a deed. Rentals climbed 42% as multifamily listings scaled to 76,000 properties. Mortgage revenue jumped 56%, with purchase loan originations up 96% to $1.5 billion. CEO Jeremy Wacksman told investors the platform is “embedding AI throughout the real estate experience in ways that make Zillow increasingly indispensable.” Believable, given 220 million monthly unique users keep showing up.
Opendoor’s story hinges on operations. Revenue fell 38% to $720 million as homes sold dropped to 1,921 units. Yet new CEO Kaz Nejatian argues the machine is finally tuned: aged inventory over 120 days collapsed from 51% to 10%, and acquisition contracts topped 5,000, the highest since 2022. Gross margin nudged up to 10.0%. Progress, but the operating cash burn hit negative $246 million.
A Tollbooth Versus a Warehouse Lens Zillow Opendoor Core Bet SaaS agent tools, rentals, mortgage leads Buying and reselling homes for cash Balance Sheet Exposure Minimal; ad marketplace Heavy inventory plus $193M current convertibles Q1 Profitability $182M adjusted EBITDA $49M adjusted net loss Zillow’s 73.3% gross margin lets management repurchase stock aggressively: 13.5 million shares bought for $626 million in the quarter. Opendoor, meanwhile, took a $105 million RSU charge tied to Nejatian’s arrival. Different worlds.
What Decides the Second Half Housing itself remains soft. Existing home sales sit at 4.17 million annualized, and housing starts just fell 15.4% month over month. I will be watching whether Zillow’s Enhanced Markets, now 49% of connections, keep pushing agent monetization higher. For Opendoor, the tell is whether Q2 hits adjusted EBITDA breakeven and whether the 5% to 7% contribution margin range holds when cohorts mature.
Why I Lean Toward Zillow, With Eyes Open Personally, I favor Zillow here. A capital-light platform compounding mid-teens revenue growth with real cash generation is easier to underwrite than a house-flipper still burning cash. The stock is down 54.2% over the past year, which stings, yet the FTC trial and legal headwinds feel priced in at a 14 forward P/E. Opendoor is a genuine turnaround story, and its 795.68% one-year rally shows what happens when a busted stock finds a pulse. But I want more quarters of proof before betting on the warehouse over the tollbooth. If you like variance and believe Nejatian’s cohort math, Opendoor fits. If you prefer durable margins, Zillow is the cleaner read.
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Opendoor Technologies (OPEN 0.81%) stock dropped 21% in the first half of the year, according to data provided by S&P Global Market Intelligence. After it skyrocketed with the help of social media and retail investors last year, it's been slowly coming back to earth as the housing market remains under pressure.
A new CEO and strategy There's been a lot going on at Opendoor over the past year. A concerted effort by retail investors to shake things up resulted in the previous CEO being ousted and replaced by Kaz Nejatian, a Shopify veteran. He has changed the digital real estate company's focus, and there's been some progress.
There's been some of the garden variety of change, such as bringing in more artificial intelligence (AI) to become more efficient and work faster. Opendoor is also creating more options for customers, such as its cash now, more later product, which accounted for a third of acquisition contracts in the first quarter.
Image source: Getty Images.
The highlight of the strategy, though, and where it truly acts differently, is its focus on volume and velocity. Previously, it put efforts into finding bargains and focusing on spread. Nejatian's take was that this was leading to the purchase of worse homes, which were harder to sell. The new model is buying excellent homes and turning them over more quickly, even if it's a lower spread, and the results have been promising in the limited time it's been going on.
In the 2026 first quarter, it purchased 45% more homes sequentially, and it had 5,000 under contract, double the fourth-quarter number and the highest number since 2022. The number of homes on the market for more than 120 days decreased from 33% the quarter before to 10%, below the the 33% market average. Contribution margin improved every month since September, when this all got started, and recent monthly cohorts are selling faster than corresponding months for every year since the pandemic.
A reality check This kind of progress should send the stock up, not down. But after the stock had an astronomical rise last year, the company is now doing the practical work of demonstrating that it can meet the moment. Early progress is great, but Opendoor is unprofitable and operating in a challenging environment. Interest rates aren't coming down right now, and the housing market is still under pressure.
The market has already priced in a potential recovery, and the company is still proving itself.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Shopify. The Motley Fool has a disclosure policy.
Opendoor Technologies (OPEN 0.71%), a digital residential home buying and selling platform, closed at $4.90, down 0.81%. Broader tech selling pressured the shares, and investors are watching chip and AI momentum for signs of stabilization.
The company’s trading volume reached 89.5M shares, which is roughly 112% above its three-month average of 42.2M shares.
How the markets moved todayThe S&P 500 (^GSPC +0.00%) fell 0.07% to 7,473.24, unchanged from the previous session. The Nasdaq Composite (^IXIC 0.80%) dropped 0.80% to 25,832. Among U.S. residential real estate technology and online home-buying/selling services peers, Z closed at $33.43, up 1.24%, and Compass finished at $12.62, up 0.60%, showing firmer trading than Opendoor Technologies during the session.
What this means for investorsOpendoor’s recent decline kept attention on whether its operating turnaround can hold in a challenging housing market. The stock lagged some housing-technology peers, though its Russell 3000 inclusion may help explain the elevated trading volume. Upcoming updates on housing demand, resale margins, and adjusted EBITDA progress will be the clearest signals of whether the turnaround is gaining durability.
For long-term investors, the key test is whether Opendoor can expand home acquisitions, improve resale economics, and turn recent inventory progress into a more durable path toward profitability.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- STARZ (NASDAQ: STRZ) announced today the company will report its second quarter financial results for 2026, ended June 30, 2026, on Friday, August 7. Senior management will also hold an analyst and investor call to discuss results at 5:00AM PT/8:00AM ET before market open on August 7. To listen to the live audio webcast, click here. A full replay will be available later the same evening by clicking here.
About STARZ
STARZ (NASDAQ: STRZ) is the leading premium entertainment destination for women and underrepresented audiences, and home to some of the most popular franchises and series on television. STARZ offers a robust programming mix for discerning adult audiences, including boundary-breaking originals and an expansive lineup of blockbuster movies, and is embodied by its brand positioning "We're All Adults Here." Complementary to any platform or service, STARZ is available across a wide range of digital OTT platforms and multichannel video distributors and is a bundling partner of choice. STARZ is powered by an industry-leading advanced technology, data analytics and digital infrastructure and the highly rated and first-of-its-kind STARZ app.
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Shares of Opendoor Technologies (NASDAQ:OPEN) are trading higher by 7% to $4.96 in midday action, while fellow iBuyer Offerpad Solutions (NYSE:OPAD) is up 6% to $5.26. The two home-flipping platforms are the standout gainers in an otherwise choppy session for real estate names.
Both companies have become battlegrounds for retail traders, and Opendoor stock shows why: it has rocketed 792% over the past year. Offerpad stock has been every bit as volatile, swinging hard in both directions as a thinly traded small-cap. That backdrop makes today’s synchronized pop worth a closer look, because the catalyst is less obvious than the price action suggests.
Momentum, Retail Flow, and Index Inclusion There isn’t a clean single catalyst behind today’s rally. Opendoor and Offerpad are the two publicly traded iBuyers, using algorithmic pricing to buy homes directly from sellers, lightly renovate, and resell. Today’s bid reads as momentum and heavy retail/meme interest in volatile small-cap real estate names, riding recent Russell 2000/3000 inclusion flows and broad sector strength.
The fundamentals for Opendoor are mixed. Q1 2026 revenue fell to $720 million, down 38% year over year (YoY), and the company posted a GAAP net loss of $173 million. Furthermore, Opendoor’s gross margin expanded to 10% from 9%, and CEO Kaz Nejatian asserted, “As of April 1st, Opendoor is adjusted EBITDA profitable, on a 12-month go-forward basis… The machine is working.”
Offerpad’s Q1 2026 print showed revenue of $80.08 million, down 50% YoY, with a net loss narrowing to $10.1 million from $15.1 million. Management is targeting Adjusted EBITDA positive before year-end 2026.
Peers Ride the Same Bid Zillow Group (NASDAQ:Z | Z Price Prediction) shares are up 5% to $33.25. Zillow stock is participating in the same broad real estate bid, and the proptech platform remains a frequent Opendoor competitor.
Rocket Companies (NYSE:RKT) stock is up modestly at 2% to $16.08, riding recent momentum in mortgage-adjacent names. Rocket Companies is a mortgage origination and refinancing name, rate-sensitive but tracking the same housing-tech sentiment.
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For diversified housing exposure, the SPDR S&P Homebuilders ETF (NYSEARCA:XHB) is a broad housing-theme proxy, though it does not hold iBuyers like Opendoor or Offerpad. XHB shares are up 11% over the past year. The rally is happening despite a hawkish macro backdrop, with the 10-year Treasury yield still elevated at 4.47% and housing starts falling to 1.18 million annualized units in May.
Bull and Bear Case for the iBuyers The bulls point to Opendoor’s turnaround progress under Nejatian, expanding margins, Russell index inclusion driving volume, and a stated path to adjusted net income positive by end of 2026. The prediction markets on Polymarket assign a 71% probability to Opendoor shares hitting $5.50 in July.
Meanwhile, the bears note that Opendoor and Offerpad are unprofitable on a GAAP basis, capital-intensive, rate-sensitive, and exposed to dilution risk. Opendoor stock carries a beta of 3.55, and the analyst consensus target sits at $4.82. Investors should consider keeping position sizes modest in these volatile names.
What to Watch Market watchers can check for whether Opendoor and Offerpad shares hold their gains into the close, especially as XHB itself is down 2% on the session. Momentum traders may keep this pair active through the afternoon.
The next fundamental read arrives with Q2 2026 earnings later this summer, where investors will be looking for confirmation that Opendoor’s adjusted EBITDA breakeven target and Offerpad’s transaction ramp are on track. Any housing data or Federal Reserve commentary in the interim could also sway sentiment given how rate-sensitive these names remain.
The takeaway: today’s rally reflects improving operational momentum across the iBuyer complex, but with both names still unprofitable on a GAAP basis, execution against near-term guidance is what will determine whether this move has legs.
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Key Takeaways OPEN signed more than 5,000 acquisition contracts in Q1, its strongest quarterly volume since Q2 2022.Opendoor's resale contribution margin reached 4.4% in Q1, up 340 basis points sequentially.OPEN reduced homes on the market for more than 120 days to 10% from 51% two quarters earlier. Opendoor Technologies Inc. (OPEN - Free Report) is entering the back half of 2026 with seasonality becoming an important test for Opendoor 2.0. Although housing activity typically softens during this period, recent operating metrics suggest Opendoor 2.0 is giving the company a stronger operating base heading into the seasonal slowdown.
Seasonality is a meaningful factor in OPEN’s operating model. The company stated that the housing selling season typically begins shortly after the Super Bowl, peaks in early summer, tapers through the fall and bottoms in December. This pattern affects resale velocity, spread decisions and acquisition cadence. OPEN also noted that days on market usually lengthen in the back half of the year, while margins tend to compress in the fourth quarter.
OPEN enters this seasonal test with improved operating metrics. In the first quarter of 2026, the company entered into more than 5,000 contracts, its strongest quarterly contract volume since the second quarter of 2022. Resale contribution margin improved every month since September 2025 and closed the quarter at 4.4%, up 340 basis points sequentially. The percentage of homes on the market for more than 120 days fell to 10% from 51% two quarters earlier. This healthier inventory position gives OPEN a stronger starting point as seasonal demand moderates, with fewer aged homes reducing clearance pressure and supporting resale-margin stability.
The back half of 2026 will provide a key checkpoint for OPEN’s margin durability as seasonal housing demand moderates. The company’s ability to limit margin slippage will likely depend on fresh inventory, sustained resale velocity and continued contribution-margin stability as housing demand tapers.
Opendoor’s Competitor LandscapeZillow Group, Inc. (ZG - Free Report) provides a relevant benchmark for OPEN because it is navigating housing-market softness through a capital-light platform. Zillow’s integrated housing ecosystem spans search, touring, financing, agent workflows and closing, helping it support buyer and seller engagement without direct owned-home resale exposure. This positions Zillow as a lower-inventory-risk benchmark, while OPEN’s margin profile is more directly tied to resale execution and owned-home turns.
Offerpad Solutions Inc. (OPAD - Free Report) provides a closer operating comparison because it remains exposed to home-level execution, resale timing and capital discipline. Offerpad is expanding its Cash Offer, Cash Offer Marketplace, Brokerage Services and Renovate platform while using SCOUT and HENRY to improve seller routing, acquisition accuracy, renovation estimates and disposition decisions. These efforts are aimed at improving conversion and managing asset-level risk in a pressured housing market.
Against this backdrop, OPEN sits between Zillow’s capital-light housing platform and Offerpad’s more targeted seller-solutions model. Zillow benefits from platform breadth and lower inventory exposure, while Offerpad is focused on improving seller conversion and asset-level execution. OPEN’s differentiation lies in applying Opendoor 2.0 across a larger resale funnel, where tighter execution can have a greater impact on margin performance.
OPEN’s Stock Price Performance, Valuation & EstimatesShares of Opendoor have skyrocketed 719.9% in the past year against the industry’s 23.6% decline.
OPEN One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 0.75, significantly below the industry’s average of 3.55.
OPEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OPEN's 2026 loss per share suggests a 53.9% year-over-year improvement. Loss per share estimates for 2026 have widened in the past 30 days.
EPS Trend of OPEN Stock
Image Source: Zacks Investment Research
Rocket Companies (NYSE:RKT | RKT Price Prediction) stock is up 13% in midday trading Wednesday, changing hands near $15.21. Opendoor Technologies (NASDAQ:OPEN) stock is climbing 5% to roughly $4.43. Both names are leading a broader bid in rate-sensitive housing fintech.
The connective thread between the two moves is a reported resurgence of refinancing demand, aided by declining mortgage rates. Lower mortgage rates directly boost refinancing and origination volumes for Rocket Companies, a mortgage lender, and they support faster home transactions for Opendoor, an iBuyer that monetizes turnover and resale velocity. The setup echoes the same rate-sensitive playbook that drove a refi wave in September 2025.
That framing is the apparent driver, not a confirmed company-specific catalyst. Rocket Companies stock is down 21% year to date (YTD), and Opendoor stock is down 24% YTD. Today’s pop is a rebound in two depressed, rate-sensitive equities, not a confirmed trend change.
Rocket Companies Rides the Refinancing Tailwind Rocket Companies runs Rocket Mortgage, Redfin, Rocket Money, Rocket Loans, and Rocket Close, but mortgage origination and servicing remain the core engine. When mortgage rates fall, refinancing applications jump quickly, and Rocket Companies’ platform converts that volume into outsized operating leverage. That sensitivity is exactly why Rocket Companies stock is leading today’s tape.
The company’s Q1 2026 earnings report already pointed to improving fundamentals. Rocket Companies posted EPS of $0.15 versus a $0.12 consensus and revenue of $2.94 billion, with a servicing portfolio of $2.1 trillion in unpaid principal balance. GAAP net income of $297 million reversed a prior-year loss.
CEO Varun Krishna struck a defiant tone, asserting, “Rocket is not waiting for the market to get easier… Hard market. Stronger Rocket.” Management also pulled forward $400 million of Mr. Cooper acquisition synergies to year-end, a year ahead of schedule, while guiding Q2 2026 adjusted revenue to $2.7 billion to $2.9 billion.
The bear case on Rocket Companies stock is real, though. The shares have whipsawed through prior rate head-fakes, and a one-day move on softer mortgage rates doesn’t confirm a durable refi cycle if Treasury yields snap back higher.
Opendoor Catches a Bid on Transaction Volume Hopes Opendoor’s unit economics hinge on transaction volume and how quickly it can flip inventory. Lower mortgage rates pull buyers back into the market, which lifts both Opendoor’s acquisition pipeline and resale velocity. Existing home sales reached 4.17 million annualized in May, up 3% month over month, and that backdrop helps Opendoor stock today.
Opendoor’s Q1 2026 results showed real operating progress. Revenue came in at $720 million, homes purchased rose 45% quarter over quarter to 2,474, and gross margin expanded to 10% from 9% year over year (YoY).
CEO Kaz Nejatian was direct in his commentary, declaring, “The machine is working.” Polymarket traders are leaning bullish on Opendoor as well, assigning a 95% probability that OPEN stock closes higher on the session and clustering weekly price targets in the $4 to $4.50 band.
Still, the caution on Opendoor stock is hard to ignore. Opendoor is a low-priced, highly volatile name, and the business remains exposed to any reversal in mortgage rates or transaction demand. The path to adjusted net income positive by year-end depends on the housing pipeline holding.
What Investors Can Watch Next The 10-year Treasury yield sits at 4.4%; the recent easing is modest in context and could reverse on a single hot inflation report. Ultimately, the bull case for both Rocket Companies and Opendoor may be conditional on rates continuing lower.
Investors can watch for follow-through into other housing names, the durability of the mortgage-rate decline into Friday’s close, and the next Q2 2026 earnings reports from Rocket Companies and Opendoor. A reasonable approach is to size positions modestly in Rocket Companies stock and Opendoor stock, given the rate dependency. One day of refi-driven excitement is not yet a confirmed housing recovery.
Oil prices have already started to fall since President Trump signaled the end of the war with Iran. Lower oil prices mean lower costs for companies and an easing of pressure for consumers. However, inflation is still rampant, and the Federal Reserve just made a decision to keep interest rates steady. Although that wasn't unexpected, since it's meant to stem inflation, it could stem economic activity.
Image source: Getty Images.
One place that shows up big is in the housing market. Higher mortgage rates make it more challenging for people to buy homes, and fewer people sell when it's harder to buy, which means there's less supply in the market. Since Opendoor Technologies (OPEN +5.71%) is still building itself up as a company, it has been battered by the high-interest-rate environment, and high rates could continue to plague it.
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Opendoor has undergone drastic changes over the past year. Retail investors banded together to send the stock higher and oust the CEO, and the new CEO has made broad changes across the enterprise, including how its model works and using more artificial intelligence (AI). The company shifted its focus from identifying great deals to procuring excellent homes in high volume, and it's demonstrating progress. It had its highest-ever acquisition contract volume in the 2025 first quarter, and the resale margin has improved every month since September 2025.
The company is making lemons into lemonade, but a prolonged high-interest-rate environment could weigh on its recovery.
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Key Takeaways OPEN entered contracts on more than 5,000 homes, its strongest acquisition quarter since 2022.OPEN ended the quarter with $999M in cash and $7.1B of non-recourse borrowing capacity.Opendoor said contribution margins improved for six straight months, with EBITDA break-even expected. Opendoor Technologies (OPEN - Free Report) is showing increasing confidence that it can grow acquisition volumes while maintaining the financial discipline needed to achieve profitability. The company’s first-quarter 2026 earnings call highlighted significant progress on both fronts, suggesting that its revamped operating model is beginning to deliver results.
A key indicator is the sharp increase in acquisition activity. Opendoor entered into contracts on more than 5,000 homes during the quarter, its strongest performance since 2022, while home purchases rose 45% sequentially to 2,474 properties. Management noted that this growth is not being fueled by aggressive pricing but by improved underwriting, better customer conversion and new offerings such as cash now, more later.
Just as important, the company appears determined to avoid the capital-intensive mistakes of the past. Opendoor ended the quarter with $999 million in unrestricted cash and emphasized that inventory growth has been accompanied by improving inventory quality and faster resale velocity. Homes on the market for more than 120 days declined to 10% from 51% two quarters earlier, reducing holding costs and improving capital efficiency.
Management also stressed that growth will be supported by existing liquidity and financing capacity rather than by dilutive equity raises. The company has $7.1 billion of non-recourse borrowing capacity available, providing ample room to fund acquisitions while preserving shareholder value.
With contribution margins improving for six straight months and adjusted EBITDA expected to reach break-even in the second quarter, Opendoor believes it can continue to scale acquisitions while remaining disciplined. If these trends persist, the company may be positioned to achieve profitable growth even in a challenging housing market.
Rivals Are Also Pursuing Growth With Financial DisciplineOpendoor operates in a competitive real estate technology market where balancing growth and capital efficiency remains a key challenge. Two notable peers in this space are Offerpad Solutions (OPAD - Free Report) and Zillow Group (ZG - Free Report) .
Offerpad Solutions, another iBuyer-focused company, has adopted a cautious growth strategy following the housing market slowdown. Like Opendoor, Offerpad Solutions has prioritized inventory quality, disciplined home acquisitions and faster inventory turnover to reduce market risk. The company continues to focus on improving unit economics and preserving liquidity rather than pursuing growth at any cost, reflecting a similar emphasis on capital discipline.
Meanwhile, Zillow Group has taken a different approach after shutting down its Zillow Offers home-flipping business in 2021. Instead of owning large inventories of homes, Zillow Group is expanding its asset-light housing ecosystem through services such as mortgages, touring, seller solutions and transaction facilitation. This strategy allows Zillow Group to benefit from housing-market activity while minimizing balance-sheet risk and capital requirements.
While their business models differ, both competitors highlight the industry's broader shift toward profitable growth, operational efficiency and prudent capital allocation.
OPEN’s Stock Price Performance, Valuation & EstimatesShares of Opendoor have skyrocketed 667.9% in the past year against the industry’s 16.2% decline.
OPEN One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 0.79, significantly below the industry’s average of 3.74.
OPEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OPEN's 2026 loss per share indicates a 61.5% year-over-year improvement. Loss per share estimates for 2026 have narrowed in the past 60 days.
EPS Trend of OPEN Stock
Image Source: Zacks Investment Research
Opendoor CEO Kaz Nejatian joins CNBC's 'The Exchange' to discuss the state of the housing market, why first-time home buyers are stuck in this market, and more.
On June 16, 2026, David C. Benson, a member of the Board of Directors at Opendoor Technologies (OPEN +0.45%), reported the sale of 40,000 shares of common stock in an open-market transaction, as disclosed in the SEC Form 4 filing.
Transaction summaryMetricValueShares sold (direct)40,000Transaction value~$193,000Post-transaction shares (direct)180,099Post-transaction value (direct ownership)~$855,000Transaction value based on SEC Form 4 weighted average purchase price ($4.83); post-transaction value based on the market close price on June 16, 2026.
Key questionsWhat proportion of David Benson's total Opendoor Technologies holdings was sold in this transaction?
The 40,000 shares sold represented 18.17% of Benson's direct holdings prior to the sale, with no indirect or derivative positions reported as of June 16, 2026.What was the stated reason for the sale and how does it relate to insider trading policies?
The sale was conducted under a pre-established Rule 10b5-1 plan, specifically to cover taxes from the vesting of restricted stock units, indicating the transaction was planned and not discretionary in nature.How does this transaction affect Benson's ongoing exposure to Opendoor Technologies stock?
Following the sale, Benson maintains a direct position of 180,099 shares, with a post-transaction market value of approximately ~$855,000, and retaining substantial direct exposure.Does the timing of the sale coincide with any material stock price movement or performance trend?
As of June 16, 2026, Opendoor Technologies shares had appreciated by 671.35% over the prior year, but the sale aligns with tax-related events rather than an opportunistic response to price momentum.Company overviewMetricValueRevenue (TTM)$3.94 billionNet income (TTM)($1.39 billion)Price (as of market close June 16, 2026)$4.751-year price change671.35%* 1-year performance calculated using June 16, 2026 as the reference date.
Company snapshotOpendoor offers a digital platform for buying and selling residential real estate, with additional services such as title insurance and escrow.It generates revenue primarily through home sales and related transaction fees, operating as an online intermediary in residential property transactions.The company targets individual home buyers and sellers across the United States seeking a streamlined, technology-driven real estate experience.Opendoor Technologies operates at scale within the U.S. residential real estate market, leveraging a digital-first strategy to simplify property transactions. The company’s platform-driven approach enables efficient home buying and selling, supported by ancillary services that enhance the customer experience.
Its technology integration enables a digital platform for efficient transactions and supporting services, catering to consumers seeking convenience and speed in real estate dealings.
What this transaction means for investorsThe June 16 sale of Opendoor stock by Director David Benson isn’t a cause for investor concern, given it was performed to fulfill tax withholding obligations incurred in connection with the vesting of restricted stock units.
The disposition came at an interesting time for Opendoor shares. The company was selected for inclusion in the Russell 3000 Index towards the end of May, and the stock remains well above its 52-week low of $0.51 per share reached last June.
Shares began to rise after new CEO Kasra Nejatian took over the top position in the fall of 2025. Nejatian introduced a new strategy for the company, called Opendoor 2.0, using artificial intelligence to efficiently buy and sell homes.
In the first quarter, revenue fell 433% year over year to $720 million as Opendoor made its strategic shift. The company’s net loss widened to $173 million from a loss of $85 million in the prior year, but management believes Opendoor can be adjusted net income positive by the end of 2026.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Opendoor Technologies Inc. OPEN is currently trading at a discount compared with the Zacks Internet - Software industry, the Zacks Computer and Technology sector and the S&P 500 index, with a forward 12-month price-to-sales (P/S) ratio of 0.8. The industry's average is currently 3.65, while the sector's valuation is 6.52 and the S&P 500 index's is 5.08.
On May 11, 2026, Opendoor Technologies (OPEN 1.01%) Chief Executive Officer Kasra Nejatian reported the open-market purchase of 100,000 shares as detailed in the SEC Form 4 filing.
Transaction summaryMetricValueShares traded100,000Transaction value$487,800Post-transaction shares (direct)83,578,299Post-transaction value (direct ownership)$407.69 millionTransaction and post-transaction values based on SEC Form 4 reported price ($4.88).
Key questionsHow does this purchase compare to Kasra Nejatian's historical trading activity?
Since September 2025, Nejatian has made two open-market purchases totaling 225,000 shares, with this latest acquisition representing 44% of that net accumulation, and the cadence remains in line with his recent activity.What is the impact on Nejatian's ownership stake?
The transaction increased his direct holdings to 83,578,299 shares, maintaining full direct ownership and representing a 0.013% increase in position size relative to pre-trade levels.Were any derivative securities or indirect holdings involved?
No; all shares acquired were purchased directly, with no involvement of options, warrants, or indirect entities such as trusts or LLCs.Does the purchase indicate a change in sentiment or strategy?
This transaction is consistent with routine, incremental accumulation rather than a shift in investment posture, and does not materially alter Nejatian's exposure to Opendoor Technologies.Company overviewMetricValuePrice (as of market close May 11, 2026)$4.85Market capitalization$4.23 billionRevenue (TTM)$3.94 billion1-year price change499.26%* 1-year price change calculated using May 11, 2026 as the reference date.
Company snapshotOpendoor offers a digital platform for buying and selling residential real estate, as well as providing title insurance and escrow services.It operates an iBuyer model, purchasing homes directly from sellers and reselling them to buyers, generating revenue from home sales and related services.The company targets individual homebuyers and sellers across the United States seeking a streamlined, online real estate transaction experience.Opendoor Technologies is a leading digital real estate platform focused on simplifying residential property transactions in the United States.
What this transaction means for investorsThe May 11 purchase of Opendoor shares by new CEO Kasra Nejatian, who took over the position in the fall of 2025, signals his confidence in the company’s future. He certainly didn’t need to buy the stock, given he owns over 83 million shares.
Nejatian introduced a new strategy for the company, called Opendoor 2.0, which is focused on using artificial intelligence to rapidly buy and sell homes. He pointed to first quarter metrics around the company’s home inventory as an indication the business was on back on track, stating, “Performance is among the strongest in our 10+ year operating history.“
Q1 home purchases increased 45% quarter over quarter, and was at levels not seen since 2022. That said, Q1 revenue totaled $720 million, down from $1.2 billion a year ago. This contributed to Opendoor’s net loss increasing to $173 million from a loss of $85 million in the prior year.
While the Q1 results show some promise in the new strategy, investors may want to wait for subsequent quarterly performance before deciding if the AI-driven approach makes Opendoor stock worth owning.
Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Key Takeaways OPEN's October-January cohorts sold faster than comparable cohorts since the COVID-era housing market.OPEN cuts homes listed over for 120 days to 10% in Q1 from 33% at 2025-end and 51% in Q3 2025.OPEN topped 5,000 contracts in Q1, as resale margin improved every month since September 2025. Opendoor Technologies Inc. (OPEN - Free Report) is showing early operational progress under its Opendoor 2.0 framework, with resale velocity emerging as a key measure of execution. In the first quarter of 2026, the company’s October through January cohorts were selling faster than comparable cohorts since the COVID-era housing market. The fourth-quarter 2025 and January 2026 cash acquisition cohorts also delivered the strongest combination of margin, margin stability and resale velocity in company history, excluding the COVID period.
Inventory quality was a central driver of the improvement. Homes on the market for more than 120 days declined to 10% at the end of the first quarter from 33% at year-end and 51% at the end of the third quarter of 2025. The improvement was supported by tighter underwriting, more disciplined close-to-listing execution and resale systems focused on moving homes more quickly while protecting unit economics. For OPEN, a fresher inventory base is critical because it can lower holding costs, reduce exposure to market volatility and improve capital efficiency.
The operating improvement was also visible in contribution margin and contract activity. Resale contribution margin has improved every month since September 2025, while OPEN entered into more than 5,000 contracts in the first quarter, its highest quarterly contract volume since 2022. A larger contract funnel gives the company more flexibility in acquisitions, supporting selectivity as purchase volumes scale.
The durability of this progress remains the key question. Housing conditions are still pressured by elevated mortgage rates, affordability constraints and high listings, limiting broader transaction activity. OPEN’s ability to sustain faster resale velocity as volumes rise will be central to determining whether Opendoor 2.0 can hold up in a weak housing market. Through 2026, inventory freshness, resale cadence, contract conversion and contribution-margin stability remain the primary indicators to monitor.
Opendoor’s Competitive Landscape: Zillow & OfferpadZillow Group, Inc. (Z - Free Report) provides a useful contrast to OPEN because its model is less exposed to inventory ownership, resale timing and home-price risk. In the first quarter of 2026, the company reported 18% year-over-year revenue growth despite a housing market that remained essentially flat, supported by growth across for sale, mortgages and rentals. Its integrated platform across search, touring, financing, agent collaboration and rentals gives Zillow a more capital-light way to participate in housing activity when transaction volumes remain pressured.
Offerpad Solutions Inc. (OPAD - Free Report) is a closer operating peer because it remains tied to cash offers and home-selling solutions. Like OPEN, Offerpad is emphasizing a cleaner, faster-turning portfolio and disciplined capital deployment. The company said aged inventory stood at fewer than 30 homes, down from fewer than 60 at the end of the fourth quarter, while its AI tools, SCOUT and HENRY, are being used to improve seller routing, acquisition precision, renovation estimates and disposition decisions.
Against this backdrop, OPEN’s competitive position rests on execution. Zillow offers a more diversified, capital-light housing platform, while Offerpad is pursuing disciplined transaction growth and faster portfolio turns. OPEN’s advantage lies in its larger contract funnel and improving inventory health, but the durability of Opendoor 2.0 will depend on whether the company can sustain faster resale cadence, protect contribution margins and keep inventory fresh amid housing weakness.
OPEN’s Stock Price Performance, Valuation & EstimatesShares of Opendoor have skyrocketed 547% in the past year against the industry’s 13.4% decline.
OPEN One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 0.82, significantly below the industry’s average of 3.72.
OPEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for OPEN’s 2026 earnings implies a year-over-year uptick of 53.9%. Loss per share estimates for 2026 have remained unchanged in the past 60 days.
EPS Trend of OPEN Stock
Image Source: Zacks Investment Research
OPEN stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways OPEN's shares have dropped 22.3% YTD amid elevated mortgage rates and weaker housing demand.Opendoor's profitability goals depend on faster inventory turnover and stable contribution margins.OPEN is expanding Mortgage and Cash Now, More Later products, but both remain early stage. Shares of Opendoor Technologies Inc. (OPEN - Free Report) have plunged 22.3% in the year-to-date period, trailing the Zacks Internet – Software industry, the broader Zacks Computer and Technology sector and even the S&P 500. On Monday, the stock closed at $4.53, below its 52-week high of $10.87 but well above the 52-week low of 51 cents. The detailed share price performance is shown in the chart below.
OPEN Stock Underperforms the Industry & the Market
Image Source: Zacks Investment Research
The company operates in a difficult housing environment marked by elevated mortgage rates, weaker affordability and softer housing demand. Although the company is seeing operational improvement under the Opendoor 2.0 model, the path toward profitability still depends on sustaining faster inventory turnover, stronger contribution margins and continued acquisition growth in a volatile market. Despite recent operational progress, elevated housing-market risks and an unproven long-term profitability profile raise concerns, making OPEN stock a risky bet for now. Here’s why it may be prudent for investors to sell the stock.
Elevated Mortgage Rates Pressure Opendoor’s Demand TrendsOpendoor faces pressure from elevated mortgage rates and weaker affordability conditions across the housing market. Management stated that mortgage rates remain “far too high,” while housing listings stay elevated, creating a difficult environment for housing demand and resale activity.
The difficult macro backdrop creates ongoing risk for OPEN’s resale margins and inventory performance. Higher mortgage rates reduce affordability for homebuyers, which can slow transaction activity and increase the risk of longer holding periods. Although resale velocity has improved under Opendoor 2.0, sustained weakness in housing demand could pressure acquisition economics and profitability targets.
OPEN’s Profitability Targets Rely on Consistent ExecutionOpendoor targets adjusted net income profitability on a forward 12-month basis by the end of 2026, but management also indicated that it still has “a lot left to prove.” The company stated that proof of the new operating model will require “more time, more reps, more shifts,” suggesting that recent improvements are still at an early stage.
The profitability outlook also depends on maintaining strong acquisition growth, faster resale velocity and stable contribution margins simultaneously. Management identified several metrics that could signal operational weakness, including slower acquisition growth, weaker cohort margins and rising inventory aging. Any deterioration across these areas could place additional pressure on profitability expectations over the coming quarters.
Opendoor’s New Growth Products Remain Early StageThe company is expanding products such as Opendoor Mortgage and Cash Now, More Later, but both initiatives remain early-stage businesses. Management stated that the company does not yet fully understand how the mortgage platform will perform across varying market conditions and home-price categories. Opendoor also keeps adjusting the Cash Now, More Later product to balance customer economics and platform profitability.
These offerings are expected to support platform growth and customer expansion, but execution risks remain elevated while the products evolve. If customer adoption weakens, margins deteriorate or operational complexity increases, these initiatives may not generate the expected long-term financial benefits.
Seasonal Housing Trends Could Pressure OPEN’s MarginsSeasonality remains an important risk factor for Opendoor’s operating performance. Management stated that days on market typically increase during the second half of the year, while margins generally compress during the fourth quarter. Acquisition activity is also adjusted around seasonal resale demand trends.
The seasonal slowdown creates additional inventory and pricing risk for the business. Longer resale cycles can increase holding costs, reduce pricing flexibility and pressure contribution margins. Although inventory health improved during the quarter, maintaining faster turnover rates may become more difficult if housing demand weakens further or market conditions deteriorate.
Competitive Landscape of OpendoorThe recent decline in Opendoor stock also needs to be assessed alongside how key peers are navigating the same housing and technology environment. Zillow Group (Z - Free Report) remains a major industry force and continues to influence digital real estate activity through large consumer traffic and the Premier Agent network. Although it stepped away from the iBuying model, Zillow Group still plays a key role in shaping online home search and data-driven discovery. This dynamic continues to push Opendoor to stand out through faster transactions and technology-based pricing models.
Offerpad Solutions Inc. (OPAD - Free Report) remains another direct participant in the iBuying space. The company operates with a more focused and localized strategy compared with Opendoor’s broader national scale. Offerpad Solutions has also been concentrating on improving pricing spreads and maintaining tighter operational control. These efforts reflect a broader industry focus on efficiency and disciplined growth as companies adjust to changing housing conditions.
OPEN Stock’s ValuationFrom a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 0.84, significantly below the industry’s average of 3.79. Conversely, industry players, such as Zillow Group and Offerpad Solutions, have P/S multiples of 2.66 and 0.08, respectively.
Image Source: Zacks Investment Research
Earnings Estimate Revision of OPENThe Zacks Consensus Estimate for OPEN’s 2026 earnings implies a year-over-year uptick of 53.9%. Loss per share estimates for 2026 have remained unchanged in the past 60 days.
Image Source: Zacks Investment Research
Conclusion: Sell Opendoor Stock for NowThe company is making operational improvements under its Opendoor 2.0 strategy, particularly in inventory management, resale velocity and acquisition growth. However, the business still operates in a highly uncertain housing environment where elevated mortgage rates, affordability pressure and seasonal demand swings continue to create risks for margins and long-term profitability. At the same time, several newer growth initiatives remain in the early stages and still need to prove scalability across different market conditions.
The company’s turnaround strategy also remains heavily dependent on flawless execution. Any slowdown in acquisition growth, deterioration in inventory turnover or renewed margin pressure could weigh on financial performance and investor sentiment. It is prudent for investors to exit investment from this Zacks Rank #4 (Sell) stock for now and consider re-evaluating once the margin trajectory stabilizes, as the company still needs to demonstrate more consistent profitability and sustained margin improvement.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 has rallied nearly 80% over the past five years, and it looks historically expensive at 32 times earnings. Therefore, it wouldn't be surprising if the market crashes this year and reduces that multiple to more sustainable levels.
If that happens, investors shouldn't panic and blindly sell all their stocks. Instead, they should recall Warren Buffett's maxim of being "greedy when others are fearful" and buy some promising long-term plays. I'd personally load up on these three stocks if the market crashes: Uber (UBER 2.24%), MercadoLibre (MELI 1.47%), and Opendoor (OPEN 1.01%).
Image source: Getty Images.
Uber From 2021 to 2025, Uber more than doubled its gross bookings from $90.4 billion to $193.5 billion, grew its monthly active platform consumers (MAPCs) from 118 million to 202 million, and increased its total trips from 6.4 billion to 13.6 billion. That expansion cemented its position as the world's top ride-hailing company and one of its largest food delivery companies.
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Uber's growth was driven by its expansion into the suburbs and overseas markets, its growing number of trips per user, and Uber Eats' integration of grocery and retail deliveries. It locked in more customers through Uber One, its subscription-based platform launched in late 2021, which reached 50 million subscribers in its latest quarter. It's also expanding its higher-margin advertising business with sponsored listings, merchant promotions, and in-car and in-app ads.
From 2025 to 2028, analysts expect Uber's revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at CAGRs of 13% and 23%, respectively. Yet its stock still looks surprisingly cheap at 13 times this year's adjusted EBITDA, and it should have plenty of room to grow as its platform expands and evolves.
MercadoLibre MercadoLibre, Latin America's leading e-commerce and fintech company, operates its online marketplace across 19 Latin America countries. It generates most of its revenue in Brazil, Argentina, and Mexico, but is gradually expanding into smaller, higher-growth markets.
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From 2021 to 2025, MercadoLibre's net sales more than quadrupled as its net income grew over 24 times. Its e-commerce business served over 120 million annual unique active buyers at the end of 2025, while its fintech business -- which houses its Mercado Pago payments platform and other digital banking services -- continues to challenge conventional banks.
From 2025 to 2028, analysts expect MercadoLibre's revenue and adjusted EBITDA to grow at CAGRs of 29% and 24%, respectively. Those are impressive growth rates for a stock that trades at 18 times this year's adjusted EBITDA -- and it should continue to grow as the region's economic stability, income levels, and internet penetration improve.
Opendoor Opendoor is the largest instant home-buyer (iBuyer) in the United States. It makes instant AI-driven cash offers for homes, repairs them, and relists them on its own marketplace.
That business flourishes when low interest rates generate tailwinds for the housing market, but it fizzles out when interest rates rise -- as they did throughout 2022 and 2023. Even though the Fed cut its benchmark rates in 2024 and 2025, the housing market stayed chilly as mortgage rates remained high and macro headwinds throttled sales of new homes.
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That's why Opendoor's revenue plunged from a peak of $15.6 billion in 2022 to just $4.4 billion in 2025. It's also unprofitable. However, its stock looks undervalued at just over one times this year's sales -- so it might generate some massive gains over the next few years.
From 2025 to 2028, analysts expect Opendoor's revenue to grow at a 21% CAGR. They also expect its adjusted EBITDA to turn positive in 2027 and grow 47% in 2028. It's still a speculative stock, but it could be an underappreciated play on the stabilizing housing market.
SAN FRANCISCO, May 26, 2026 (GLOBE NEWSWIRE) -- NavigateAI today officially launches with $25mm in funding to build AI copilots for field workers. Aiming to drastically improve how physical spaces are built and maintained, launch partners include Lennar, Roofstock, and Tishman Speyer. The $25mm seed round was led by Elad Gil with participation from Khosla Ventures, Lennar, Tishman Speyer, and Helix Electric alongside angels including Zach Frankel (Ramp), Dallas Tanner (Invitation Homes), Winston Weinberg (Harvey.ai), Jesse Zhang (Decagon), Tony Xu (DoorDash), and others.
The Mission
NavigateAI is building the trusted AI copilot for the physical world. NavigateAI puts an AI partner in the hands of every worker in the field, providing real-time upskilling, automating quality control, and helping teams build faster and cheaper.
A Builder Shortage That’s Compounding
In the US alone, $2.2T is spent annually on construction projects. Unfortunately, America has a shortage of hundreds of thousands of construction workers every year just to meet demand, and both the labor and skill gaps are accelerating. Alongside an aging population of workers, this is critical to address for four reasons:
Data centers. In our race for the most advanced AGI, we need faster data center construction.Housing. We have an affordability issue in housing, driven by high construction costs.The grid. The grid needs to be rebuilt to handle the demand from EVs, AI compute, and electrification.Reshoring. Reshoring manufacturing has created a surge of unplanned labor demand. Field Copilots
NavigateAI is building a field-grade copilot for the labor market that powers how things get built, maintained, and delivered. Specifically, we are building an AI-native system that operates as an expert coach for every field worker that can improve speed, cost, and quality at the same time. The AI copilots enable:
AI Upskilling and Coaching. Provides real-time guidance from a copilot that operates as an expert and craftsman in each category.AI Project Scoping. Produces a complete scope of work, materials list, and cost estimate, driven by expertise and intelligence.AI Quality Control. Enables real-time quality control against code, spec, and the original scope, catching defects at the point of work rather than at final inspection.AI Knowledge On-Demand. Query codes, spec sheets, manufacturer manuals, and a company’s own playbooks in the field, with answers in seconds. Product Experience
NavigateAI runs in real time on any phone with a camera, giving field workers a second set of expert eyes. Through a partnership with Meta, the experience goes hands-free on Meta Glasses, where the copilot sees exactly what the worker sees. Field workers build and install while AI supports, instructs, and verifies their work.
“We have a generational opportunity to upskill millions of workers with AI at the exact moment the country needs to build more and faster,” says Eric Wu, founder and CEO. “We're building the AI copilot that will enable this workforce transition.”
Launch Partners
NavigateAI is deploying with design partners across asset management, homebuilding, commercial construction, and data center construction including:
Lennar - Leader in homebuildingRoofstock - Leader in property managementAIM - Large electrical trade schoolTishman Speyer - Leader in commercial real estate “The partnership between Lennar and NavigateAI is designed to put modern technology shoulder to shoulder with our talented Trade Partners as we build the homes America needs with the high quality America expects,” says Stuart Miller, CEO of Lennar Corporation. “NavigateAI puts a quality-first AI copilot together with our workforce in the field, in order to raise the bar on quality for every family who moves into a Lennar home.”
The Team & Investors
NavigateAI is based in San Francisco with the founding team including builders and researchers from Opendoor, Stripe, DeepMind, Stanford, and Google. Eric Wu is the CEO and co-founder, who previously built and took public Opendoor (NASDAQ: OPEN), an online platform for buying and selling homes.
NavigateAI has raised $25mm in seed funding from investors across both venture capital and real estate.
Investors: Elad Gil, Khosla Ventures, Fifth WallStrategics: Lennar, Tishman Speyer, Helix ElectricAngels: Zach Frankel (Ramp), Dallas Tanner (Invitation Homes), Marcus Ridgway (Invitation Homes), Winston Weinberg (Harvey.ai), Gary Beasley (Roofstock), Jesse Zhang (Decagon), Apoorva Mehta (Instacart), Tony Xu (DoorDash), Logan Green (Lyft), Brian Armstrong, and more.
“Eric is one of the best founders I've backed multiple times now going after one of the biggest unsolved problems in the economy,” says Elad Gil, lead investor. “AI copilots for the physical world is the kind of application that will define the next era of AI.”
Looking Ahead
NavigateAI is building toward a future where every person who works in the physical world has an expert AI copilot. This capability is fundamental to expanding the skilled workforce at the pace the US now requires.
About NavigateAI
NavigateAI is building the AI copilot for the physical world. Founded in 2025, the company partners with leading owners, operators, builders, and trades teams to bring field-grade AI to the workers who build and maintain real assets. NavigateAI is based in San Francisco. Learn more at navigate.ai.
May 27, 2026 09:00 ET | Source: Opendoor Technologies Inc.
SAN FRANCISCO, May 27, 2026 (GLOBE NEWSWIRE) -- Opendoor Technologies Inc. (“Opendoor”) (Nasdaq: OPEN) announced today that it has been selected for inclusion in the Russell 3000® Index as part of the 2026 annual reconstitution. This inclusion will become effective after the U.S. market closes on June 26, 2026.
Inclusion in the Russell 3000® Index typically means membership in either the large-cap Russell 1000® Index or the small-cap Russell 2000® Index, as well as in relevant growth and value style indexes. Investors can follow updates expected to be provided by FTSE Russell on May 29, June 5, June 12, and June 18.
About Opendoor
Opendoor exists to tilt the world in favor of homeowners by making homeownership simpler, faster, and fairer for everyone. Since 2014, Opendoor has given people a more convenient, more certain way to buy and sell a home, whether they already own or are working hard to become homeowners. Opendoor currently operates in markets across the U.S. For more information, please visit www.opendoor.com.
