Opendoor Technologies Q4 2025 Earnings Call Insights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy OPEN?
Source: seekingalpha
- Profitability Outlook: CEO Nejatian stated that Opendoor is on track to achieve adjusted net income profitability by the end of 2026, emphasizing, 'We are progressing as planned,' which lays a foundation for future financial stability.
- Acquisition Velocity Surge: Since September, Opendoor has seen a 300% increase in acquisition velocity, purchasing 537 homes in just one week, demonstrating strong market demand and enhanced execution capabilities.
- Financial Performance: Although Q4 revenue was $736 million, reflecting a 20% decline quarter-over-quarter, it was significantly better than the anticipated 35% drop, indicating the company's resilience in a challenging market.
- Strategic Investment and Risk Management: CFO Schwartz noted an expected 10% revenue decline in Q1 2026, while the company actively addresses potential risks from falling home prices, ensuring flexibility amid market volatility.
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Analyst Views on OPEN
Wall Street analysts forecast OPEN stock price to fall
5 Analyst Rating
1 Buy
2 Hold
2 Sell
Hold
Current: 4.630
Low
1.40
Averages
4.35
High
8.00
Current: 4.630
Low
1.40
Averages
4.35
High
8.00
About OPEN
Opendoor Technologies Inc. is an e-commerce platform for residential real estate transactions. By leveraging software, data science, product design and operations, the Company is engaged in building a technology platform for residential real estate that offers buyers and sellers a digital, on-demand experience. Its product offerings include Sell to Opendoor, List with Opendoor and Opendoor Marketplace. Sell to Opendoor enables sellers to utilize its core product offering to sell their home directly to it, and it resells the home to a home buyer. By selling to Opendoor, homeowners can avoid the stress of open houses, home repair coordination, overlapping mortgages, and the uncertainty that can come with listing a home on the open market. Its capital-light marketplace offering connects home sellers with both institutional and retail buyers, facilitating transactions without Opendoor taking ownership of the home. Its listing product is available in nearly all Opendoor markets.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Opendoor Surges After Exceeding Q4 Analyst Estimates
- Performance Beat: Opendoor reported Q4 revenue of $736 million, surpassing analyst expectations of $594.02 million, indicating strong market performance that is likely to boost investor confidence.
- Loss Improvement: The company posted a loss of seven cents per share, better than the anticipated loss of ten cents, suggesting enhanced operational efficiency that may attract more investor interest.
- Transaction Growth: In the quarter, Opendoor purchased 1,706 homes, a 46% increase quarter-over-quarter, while selling 1,978 homes, reflecting a rebound in market demand and the effectiveness of the company's strategy.
- Future Outlook: Although the company expects a 10% year-over-year revenue decline in Q1, management noted that contribution margins have been improving since September 2023, with expectations to reach the highest levels since Q2 2024 by the end of Q1 2026.
See More
Opendoor Technologies Q4 2025 Earnings Call Insights
- Profitability Outlook: CEO Nejatian stated that Opendoor is on track to achieve adjusted net income profitability by the end of 2026, emphasizing, 'We are progressing as planned,' which lays a foundation for future financial stability.
- Acquisition Velocity Surge: Since September, Opendoor has seen a 300% increase in acquisition velocity, purchasing 537 homes in just one week, demonstrating strong market demand and enhanced execution capabilities.
- Financial Performance: Although Q4 revenue was $736 million, reflecting a 20% decline quarter-over-quarter, it was significantly better than the anticipated 35% drop, indicating the company's resilience in a challenging market.
- Strategic Investment and Risk Management: CFO Schwartz noted an expected 10% revenue decline in Q1 2026, while the company actively addresses potential risks from falling home prices, ensuring flexibility amid market volatility.
See More
Major US Indices Close Lower; Opendoor Shows Notable Performance
- Opendoor Earnings Beat: Opendoor Technologies reported a narrower-than-expected loss of 7 cents per share in Q4, beating the consensus estimate of a 10-cent loss by 30%, although revenue declined by $348 million year-over-year, indicating ongoing pressure in the housing market.
- Super Micro Computer Growth: Super Micro Computer's stock surged 8.27%, with projected adjusted EPS of 60 cents and revenue of approximately $12.3 billion for Q3, both exceeding analyst expectations and signaling continued strong demand momentum.
- Newmont Gold Production Increase: Newmont Corporation reported Q4 EPS of $2.52 and revenue of $6.82 billion, both ahead of estimates, with gold production rising 2% quarter-over-quarter, reflecting the company's stable performance in the gold market.
- United Airlines Cost Pressures: United Airlines' stock fell 5.88% as crude oil prices rose to six-month highs, leading to increased fuel costs that threaten profit margins and raise concerns about earnings pressure due to the inability to immediately pass on rising expenses.
See More
Akamai's Disappointing Q1 Guidance Leads to Stock Drop
- Akamai's Q1 Guidance Cut: Akamai's forecast for Q1 adjusted earnings between $1.50 and $1.67 per share falls short of the $1.75 consensus, leading to an almost 8% drop in after-hours trading, indicating market concerns over its future profitability.
- Dropbox Slightly Beats Expectations: Dropbox reported Q4 adjusted earnings of 68 cents per share, narrowly exceeding the 67 cents expected by analysts, with revenue of $636 million also surpassing the $629 million forecast, demonstrating its growth potential in a competitive landscape.
- Newmont's Record Cash Flow: Newmont's adjusted earnings of $2.52 per share exceeded the consensus estimate of $2.04, alongside a record $7.3 billion in free cash flow, highlighting its strong performance and financial health in the resource extraction sector.
- Opendoor's Revenue Surge: Opendoor's Q4 revenue reached $736 million, significantly above the LSEG estimate of $549 million, although it anticipates an adjusted EBITDA loss in the low to mid $30 million range for Q1, management remains confident in achieving positive adjusted net income by the end of 2026, reflecting a strong long-term strategy.
See More
Opendoor Technologies Stock Rises 13% on Transformation Progress
- Transformation Progress: Opendoor's stock surged 13% in after-hours trading on Thursday, indicating positive strides in its transformation plan, with Q4 revenue and adjusted EBITDA exceeding Wall Street expectations, showcasing the company's recovery potential in the market.
- Increased Home Purchases: CEO Kaz Nejatian reported a 46% quarter-over-quarter increase in homes purchased, while significantly reducing capital intensity by expanding Cash Plus to 35% of weekly volume, enhancing operational efficiency and competitive positioning.
- Future Revenue Outlook: Although the company anticipates a ~10% decline in Q1 revenue from Q4's $736M, its contribution profit and adjusted EBITDA outperformed market expectations, demonstrating resilience amid challenges.
- Optimized Inventory Management: As of Q4, Opendoor's inventory balance stood at $925M, representing 2,867 homes, a decrease from Q3's $1.05B and 3,139 homes, indicating significant improvements in inventory management that help reduce holding costs.
See More
Opendoor Surges 13% After Beating Earnings Expectations Significantly
- Earnings Beat: Opendoor reported Q4 revenue of $736 million, significantly exceeding street expectations of $591.75 million, indicating strong performance in the digital real estate sector and likely boosting investor confidence.
- Improved Adjusted Earnings: The company posted an adjusted EBITDA of -$43 million, better than the expected -$50.81 million, suggesting enhanced operational efficiency that may attract more investor interest in its profitability improvements.
- Significant Acquisition Growth: Opendoor's acquisitions increased by 46% quarter-over-quarter, reflecting the success of its expansion strategy and potentially strengthening its competitive position in the real estate market.
- Faster Inventory Turnover: The reduction of inventory days by 23% demonstrates Opendoor's structural improvements through more accurate pricing and quicker inventory turnover, which is expected to enhance overall business efficiency and market responsiveness.
See More
Opendoor Surges After Exceeding Q4 Analyst Estimates
- Performance Beat: Opendoor reported Q4 revenue of $736 million, surpassing analyst expectations of $594.02 million, indicating strong market performance that is likely to boost investor confidence.
- Loss Improvement: The company posted a loss of seven cents per share, better than the anticipated loss of ten cents, suggesting enhanced operational efficiency that may attract more investor interest.
- Transaction Growth: In the quarter, Opendoor purchased 1,706 homes, a 46% increase quarter-over-quarter, while selling 1,978 homes, reflecting a rebound in market demand and the effectiveness of the company's strategy.
- Future Outlook: Although the company expects a 10% year-over-year revenue decline in Q1, management noted that contribution margins have been improving since September 2023, with expectations to reach the highest levels since Q2 2024 by the end of Q1 2026.
See More
Opendoor Technologies Q4 2025 Earnings Call Insights
- Profitability Outlook: CEO Nejatian stated that Opendoor is on track to achieve adjusted net income profitability by the end of 2026, emphasizing, 'We are progressing as planned,' which lays a foundation for future financial stability.
- Acquisition Velocity Surge: Since September, Opendoor has seen a 300% increase in acquisition velocity, purchasing 537 homes in just one week, demonstrating strong market demand and enhanced execution capabilities.
- Financial Performance: Although Q4 revenue was $736 million, reflecting a 20% decline quarter-over-quarter, it was significantly better than the anticipated 35% drop, indicating the company's resilience in a challenging market.
- Strategic Investment and Risk Management: CFO Schwartz noted an expected 10% revenue decline in Q1 2026, while the company actively addresses potential risks from falling home prices, ensuring flexibility amid market volatility.
See More
Major US Indices Close Lower; Opendoor Shows Notable Performance
- Opendoor Earnings Beat: Opendoor Technologies reported a narrower-than-expected loss of 7 cents per share in Q4, beating the consensus estimate of a 10-cent loss by 30%, although revenue declined by $348 million year-over-year, indicating ongoing pressure in the housing market.
- Super Micro Computer Growth: Super Micro Computer's stock surged 8.27%, with projected adjusted EPS of 60 cents and revenue of approximately $12.3 billion for Q3, both exceeding analyst expectations and signaling continued strong demand momentum.
- Newmont Gold Production Increase: Newmont Corporation reported Q4 EPS of $2.52 and revenue of $6.82 billion, both ahead of estimates, with gold production rising 2% quarter-over-quarter, reflecting the company's stable performance in the gold market.
- United Airlines Cost Pressures: United Airlines' stock fell 5.88% as crude oil prices rose to six-month highs, leading to increased fuel costs that threaten profit margins and raise concerns about earnings pressure due to the inability to immediately pass on rising expenses.
See More
Akamai's Disappointing Q1 Guidance Leads to Stock Drop
- Akamai's Q1 Guidance Cut: Akamai's forecast for Q1 adjusted earnings between $1.50 and $1.67 per share falls short of the $1.75 consensus, leading to an almost 8% drop in after-hours trading, indicating market concerns over its future profitability.
- Dropbox Slightly Beats Expectations: Dropbox reported Q4 adjusted earnings of 68 cents per share, narrowly exceeding the 67 cents expected by analysts, with revenue of $636 million also surpassing the $629 million forecast, demonstrating its growth potential in a competitive landscape.
- Newmont's Record Cash Flow: Newmont's adjusted earnings of $2.52 per share exceeded the consensus estimate of $2.04, alongside a record $7.3 billion in free cash flow, highlighting its strong performance and financial health in the resource extraction sector.
- Opendoor's Revenue Surge: Opendoor's Q4 revenue reached $736 million, significantly above the LSEG estimate of $549 million, although it anticipates an adjusted EBITDA loss in the low to mid $30 million range for Q1, management remains confident in achieving positive adjusted net income by the end of 2026, reflecting a strong long-term strategy.
See More
Opendoor Technologies Stock Rises 13% on Transformation Progress
- Transformation Progress: Opendoor's stock surged 13% in after-hours trading on Thursday, indicating positive strides in its transformation plan, with Q4 revenue and adjusted EBITDA exceeding Wall Street expectations, showcasing the company's recovery potential in the market.
- Increased Home Purchases: CEO Kaz Nejatian reported a 46% quarter-over-quarter increase in homes purchased, while significantly reducing capital intensity by expanding Cash Plus to 35% of weekly volume, enhancing operational efficiency and competitive positioning.
- Future Revenue Outlook: Although the company anticipates a ~10% decline in Q1 revenue from Q4's $736M, its contribution profit and adjusted EBITDA outperformed market expectations, demonstrating resilience amid challenges.
- Optimized Inventory Management: As of Q4, Opendoor's inventory balance stood at $925M, representing 2,867 homes, a decrease from Q3's $1.05B and 3,139 homes, indicating significant improvements in inventory management that help reduce holding costs.
See More
Opendoor Surges 13% After Beating Earnings Expectations Significantly
- Earnings Beat: Opendoor reported Q4 revenue of $736 million, significantly exceeding street expectations of $591.75 million, indicating strong performance in the digital real estate sector and likely boosting investor confidence.
- Improved Adjusted Earnings: The company posted an adjusted EBITDA of -$43 million, better than the expected -$50.81 million, suggesting enhanced operational efficiency that may attract more investor interest in its profitability improvements.
- Significant Acquisition Growth: Opendoor's acquisitions increased by 46% quarter-over-quarter, reflecting the success of its expansion strategy and potentially strengthening its competitive position in the real estate market.
- Faster Inventory Turnover: The reduction of inventory days by 23% demonstrates Opendoor's structural improvements through more accurate pricing and quicker inventory turnover, which is expected to enhance overall business efficiency and market responsiveness.
See More
