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Opendoor Technologies
(NASDAQ:OPEN)
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Rating:49Neutral
Price Target:
$3.50
▼(-8.85% Downside)
Action:Reiterated
Date:08/20/26
The score is held down primarily by weak financial performance (shrinking revenue base, large TTM losses, and negative operating/free cash flow) and a bearish technical setup (below key moving averages with negative MACD). Offsetting these, the latest earnings call was meaningfully positive with improving unit economics and bullish guidance toward profitability, while valuation is difficult to support due to a negative P/E and no dividend yield provided.
Positive Factors
Acquisition and Revenue Growth
Rapid acquisition growth and higher revenue indicate improving market penetration and resale throughput. Sustained volume expansion could provide operating leverage and help move the model toward its stated profitability threshold.
Negative Factors
Persistent Losses and Revenue Contraction
The shrinking revenue base and very large losses show that improved recent unit economics have not yet repaired the overall cost structure. Low gross margins leave limited protection against weaker resale prices, renovation costs, or slower inventory turnover.
Read all positive and negative factors
Positive Factors
Negative Factors
Acquisition and Revenue Growth
Rapid acquisition growth and higher revenue indicate improving market penetration and resale throughput. Sustained volume expansion could provide operating leverage and help move the model toward its stated profitability threshold.
Read all positive factors
Opendoor Technologies Key Performance Indicators (KPIs)
Any
Homes Purchased and Sold
Tracks the number of homes Opendoor buys and sells, reflecting its market activity, growth trajectory, and ability to scale its business model in the real estate market.
Tracks the number of homes Opendoor buys and sells, reflecting its market activity, growth trajectory, and ability to scale its business model in the real estate market.
Data provided by:
The Fly
The FlyOpendoor Technologies (OPEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.43B
Dividend YieldN/A
Average Volume (3M)74.47M
Price to Earnings (P/E)―
Beta (1Y)2.35
Revenue Growth-37.19%
EPS Growth-306.34%
CountryUS
Employees1,042
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-1.89
Shares Outstanding971,091,060
10 Day Avg. Volume90,441,233
30 Day Avg. Volume74,468,183
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)4.45
Price to Sales (P/S)1.02
P/FCF Ratio4.31
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$4.78Price Target Upside24.48% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-0.62
Revenue Forecast (FY)$3.92B
Opendoor Technologies Business Overview & Revenue Model
Company Description
Founded in 2013, Opendoor Technologies Inc. provides a digital ecosystem for residential real estate transactions throughout the United States. This platform allows individuals to efficiently purchase and sell homes entirely online. Based in Tempe...
How the Company Makes Money
Opendoor makes money primarily through its home resale business: it buys homes from sellers and later sells those homes to buyers, recognizing revenue largely from the sale price of the homes it sells. Profitability on these transactions depends o...
Opendoor Technologies Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call presents a strong operational and financial improvement narrative: materially higher acquisition volumes, improved contribution margins, significant operating-leverage gains from AI and product work, early mortgage traction, and a clear breakeven math at ~6,000 transactions/quarter. Management reiterates guidance to be adjusted net income positive on a 12-month go-forward basis by year-end and provides conservative assumptions for OpEx and interest. Risks remain (seasonality, integration drags, mortgage licensing, insurance monetization and execution risk), but management quantifies them and describes mitigation paths. Overall, the positives — large volume acceleration, margin recovery, AI-driven cost declines, and cash resources — materially outweigh the remaining challenges and conditional risks.Positive Updates
Rapid Acquisition Volume Ramp
Signing >500 contracts per week (recent week ~700), >5x higher year-over-year and since CEO joined; acquisition contracts reached 6,908 in Q2 (up from 5,136 in Q1). Management is pacing above the 6,000-quarter target needed for ANI breakeven.
Negative Updates
Seasonality and Quarter-to-Quarter Margin Pressure
Historically Q2→Q3 contribution margin declines by ~470 basis points on average; management expects Q3 margin to fall to ~4.0%–4.5% from 5.8% in Q2 (seasonal decline expected, though they expect a smaller drop than historical average).
Read all updates
Q2-2026 Updates
Positive
Negative
Rapid Acquisition Volume Ramp
Signing >500 contracts per week (recent week ~700), >5x higher year-over-year and since CEO joined; acquisition contracts reached 6,908 in Q2 (up from 5,136 in Q1). Management is pacing above the 6,000-quarter target needed for ANI breakeven.
Read all positive updates
Company Guidance
Management guided Q3 to at least 20% revenue growth year‑over‑year, contribution profit dollars to more than double year‑over‑year, and contribution margin of roughly 4.0–4.5% (reflecting seasonal pressure from Q2’s 5.8% margin), while reiterating adjusted EBITDA profitability on a 12‑month go‑forward basis by Q2 2027 and adjusted net income (ANI) positive on a 12‑month go‑forward basis by year‑end 2026; they expect a modest increase in adjusted operating expense in Q3 (mainly holding costs) and a small rise in marketing. For context, Q2 revenue was $883M (+23% QoQ) with $51M contribution profit (+59% QoQ), 4,378 homes purchased in the quarter (+77% QoQ, +149% YoY), 6,908 acquisition contracts (vs. 5,136 in Q1), 2,310 homes under contract to purchase, 5,459 homes in inventory, $896M cash, marketing spend of $5M in Q2 (down from $19M), and aged inventory down to 9%. Management also laid out unit‑cost assumptions (marketing ≈0.5% of acquisition GMV, variable ops ≈0.7%, fixed ops ≈1.7% → ~2.9% of acquisition GMV) and interest a little above 2% of revenue, noting ANI breakeven on a run rate of roughly 6,000 transactions/quarter at $375K per home (~$9B revenue).Opendoor Technologies Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
56
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.25B | 4.37B | 5.15B | 6.95B | 15.57B | 8.02B |
| Gross Profit | 270.00M | 304.00M | 433.00M | 487.00M | 667.00M | 730.00M |
| EBITDA | -1.38B | -1.12B | -243.00M | 9.00M | -876.00M | -509.00M |
| Net Income | -1.52B | -1.30B | -392.00M | -275.00M | -1.35B | -662.00M |
Balance Sheet | ||||||
| Total Assets | 2.96B | 2.41B | 3.13B | 3.57B | 6.61B | 9.51B |
| Cash, Cash Equivalents and Short-Term Investments | 896.00M | 962.00M | 679.00M | 1.07B | 1.28B | 2.21B |
| Total Debt | 194.00M | 193.00M | 2.32B | 2.53B | 5.40B | 7.11B |
| Total Liabilities | 2.05B | 1.40B | 2.41B | 2.60B | 5.52B | 7.26B |
| Stockholders Equity | 914.00M | 1.00B | 713.00M | 967.00M | 1.09B | 2.25B |
Cash Flow | ||||||
| Free Cash Flow | -474.00M | 1.04B | -620.00M | 2.31B | 693.00M | -5.83B |
| Operating Cash Flow | -459.00M | 1.05B | -595.00M | 2.34B | 730.00M | -5.79B |
| Investing Cash Flow | -26.00M | -12.00M | 28.00M | 44.00M | 234.00M | -476.00M |
| Financing Cash Flow | 262.00M | -499.00M | -210.00M | -2.64B | -1.75B | 7.34B |
Opendoor Technologies Technical Analysis
Negative
3.84
Price Trends
4.19
Negative
4.53
Negative
5.29
Negative
Market Momentum
-0.21
Negative
42.23
Neutral
58.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPEN, the sentiment is Negative. The current price of 3.84 is above the 20-day moving average (MA) of 3.66, below the 50-day MA of 4.19, and below the 200-day MA of 5.29, indicating a bearish trend. The MACD of -0.21 indicates Negative momentum. The RSI at 42.23 is Neutral, neither overbought nor oversold. The STOCH value of 58.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPEN.
Opendoor Technologies Risk Analysis
Opendoor Technologies disclosed 71 risk factors in its most recent earnings report. Opendoor Technologies reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Opendoor Technologies Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $19.18B | 27.04 | 4.95% | 1.68% | -11.19% | 30.74% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $3.48B | 50.79 | 3.50% | ― | 11.04% | -66.92% | |
61 Neutral | $461.41M | -33.36 | -1.92% | ― | -5.04% | -182.78% | |
54 Neutral | $19.91M | -0.40 | -111.72% | ― | -42.49% | 50.50% | |
49 Neutral | $3.43B | -1.87 | -165.15% | ― | -37.19% | -306.34% |
* Real Estate Sector Average
OPEN
Opendoor Technologies
3.53
-1.01
-22.25%
RMAX
Re/Max Holdings
13.62
4.18
44.28%
CWK
Cushman & Wakefield
14.82
-1.17
-7.32%
BEKE
KE Holdings Inc. Sponsored ADR Class A
17.75
-0.79
-4.26%
OPAD
Offerpad Solutions
4.12
-32.28
-88.68%
Opendoor Technologies Corporate Events
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Opendoor Technologies Issues $650M Convertible Senior Notes
Positive
Aug 19, 2026
On August 19, 2026, Opendoor Technologies Inc. completed privately negotiated transactions to issue $650 million of 0.00% Convertible Senior Notes due 2030, senior unsecured securities that can be converted into common stock at an initial price of...
Business Operations and StrategyStock BuybackPrivate Placements and Financing
Opendoor launches convertible notes and share repurchase program
Positive
Aug 13, 2026
On August 12–13, 2026, Opendoor Technologies Inc. launched its first share repurchase and a major convertible debt financing, issuing $650 million of 0% Convertible Senior Notes due 2030 in a private placement and planning to repurchase appr...
Business Operations and StrategyFinancial Disclosures
Opendoor Reports Strong Q2 Growth and Profitability Progress
Positive
Aug 4, 2026
By August 4, 2026, Opendoor reported second-quarter 2026 results showing a 23% sequential increase in revenue, a 59% rise in contribution profit and a 140-basis-point improvement in contribution margin, alongside a 77% quarter-over-quarter jump in...
Executive/Board ChangesShareholder Meetings
Opendoor Shareholders Back Board, Auditor and Pay Policies
Positive
Jun 12, 2026
Opendoor Technologies Inc. held its 2026 Annual Meeting of Stockholders on June 11, 2026, with about 65.45% of outstanding shares represented, and stockholders elected David Benson, Eric Feder, and Eric Wu as Class III directors to serve three-yea...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.