It may be best to avoid Opendoor Technologies (OPEN) right now. Since bottoming out at $0.51 in June, shares of the online real estate company exploded about 2,031% higher to $10.87 in September. That was all thanks to a meme stock frenzy, leadership changes, interest rate cuts, and insider buying.
Unfortunately, since the start of the year, OPEN stock has been halved to about $5 thanks to a challenging real estate environment, concerns about its turnaround strategy, and a decline in revenue. In fact, in the third quarter of 2025, revenue slipped about 34% year-over-year (YOY) to $915 million. The company also sold only 2,568 homes in the quarter, down from 3,165 in the year-ago period. And it’s also still operating at a loss at the moment.
The good news is there’s hope that Opendoor can turn itself around, especially with new CEO Kaz Nejatian positioning the company as an e-commerce platform for real estate, with a plan to reach profitability by the close of 2026.
Recent Q4 earnings just showed 46% growth in acquisitions, as well as progress with reducing its capital intensity. According to CEO Kaz Nejatian, the company increased homes purchased “by 46% quarter-over-quarter, significantly reduced our capital intensity by expanding Cash Plus such that it is now 35% of our weekly volume, and we reduced average days in possession of our inventory by 23%.”
The company posted a loss per share of $0.07 for the quarter, which was a penny better than estimates. Revenue of $736 million beat estimates of around $594 million. Unfortunately, however, revenue came in 20% below prior quarter numbers and 32% lower YOY. Opendoor also posted a GAAP net loss of $1.1 billion, which was wider than anticipated thanks to debt extinguishment costs. Plus, the number of homes sold fell 30% from 2,822 to 1,978.
Not helping, existing home sales stalled last year at a 31-year low, “as high mortgage rates and elevated prices made it tough for many Americans to buy homes,” per MarketWatch. “Home sales stagnated at a rate of 4.06 million, tying the year with 2024 for the worst performance in three decades.” According to the National Association of Realtors, existing home sales dropped 8.4% from December to January to a seasonally adjusted rate of 3.91 million. That marks the slowest pace of sales in over two years. In short, there’s nothing to get excited about with OPEN stock just yet.
