Opendoor Technologies (OPEN)
NASDAQ:OPEN
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Opendoor Technologies
(NASDAQ:OPEN)
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Rating:50Neutral
Price Target:
$5.50
▲(27.61% Upside)
Action:ReiteratedDate:02/20/26
Overall score reflects below-average fundamentals and weak price momentum: multi-year revenue contraction and ongoing losses weigh most, and technicals are bearish with the stock below key moving averages. Offsetting factors include materially improved leverage, a strong latest-year cash flow rebound, and an earnings-call narrative showing measurable operational progress toward profitability targets.
Positive Factors
Balance Sheet Health
A materially reduced debt load and a positive equity base give Opendoor durable financial flexibility. Lower leverage cuts interest and distress risk, increases capacity to fund acquisition ramps or absorb housing-cycle stress, and supports execution of profitability initiatives over months.
Negative Factors
Revenue Contraction
Multi-year top-line decline undermines operating leverage and long-term profitability prospects. Sustained revenue shrinkage constrains fixed-cost absorption, makes margin recovery harder, and forces reliance on volume recovery and new products to restore durable growth over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance Sheet Health
A materially reduced debt load and a positive equity base give Opendoor durable financial flexibility. Lower leverage cuts interest and distress risk, increases capacity to fund acquisition ramps or absorb housing-cycle stress, and supports execution of profitability initiatives over months.
Read all positive factors
Opendoor Technologies (OPEN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.13B
Dividend YieldN/A
Average Volume (3M)35.72M
Price to Earnings (P/E)―
Beta (1Y)2.47
Revenue Growth-4.45%
EPS Growth18.95%
CountryUS
Employees1,470
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-1.26
Shares Outstanding958,325,500
10 Day Avg. Volume23,636,279
30 Day Avg. Volume35,721,545
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 Cap0.62
Enterprise Value/Revenue0.58
Enterprise Value/Gross Profit7.50
Enterprise Value/Ebitda-2.25
Forecast
1Y Price Target
$5.00Price Target Upside16.01% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)-0.3
Revenue Forecast (FY)$4.33B
Opendoor Technologies Business Overview & Revenue Model
Company Description
Opendoor Technologies Inc. operates a digital platform for residential real estate in the United States. The company's platform enables consumers to buy and sell a home online. It also provides title insurance and escrow services. Opendoor Technol...
How the Company Makes Money
Opendoor primarily makes money through home resale economics and related service revenue. (1) Homes segment (core): Opendoor purchases homes directly from sellers, takes title, may perform light repairs/refreshes, and then resells the homes to buy...
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 Earnings Call Summary
Earnings Call Date:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call presented strong operational and product momentum: materially faster acquisitions, a notably high-performing October cohort, broad geographic expansion, and meaningful AI-driven cost and efficiency gains. However, near-term financials remain pressured—Q4 revenue declined 20% QoQ, contribution margins fell, adjusted EBITDA and adjusted net losses persisted, and a large one-time noncash loss drove a reported $1.1B net loss. Management provided concrete targets (6,000 quarterly acquisitions by end‑2026 exit, adjusted net income profitability by end of 2026) and near-term guidance for improving adjusted EBITDA in Q1. Overall, the narrative is a company in structural transition with clear operational improvements that are beginning to translate into better unit economics, balanced by ongoing legacy inventory pressures and remaining quarterly losses.Positive Updates
Acquisition Volume Acceleration
Purchased 1,706 homes in Q4, a 46% increase quarter-over-quarter (from 1,169 in Q3). Weekly acquisition contracts reached 537 (up from 236 at last call); acquisition velocity increased ~300% since September and DTC acquisitions up ~700% comparing last week to the last week of Q3.
Negative Updates
Revenue Decline and Near-Term Margin Pressure
Q4 revenue was $736M, a 20% quarter-over-quarter decline (though better than their prior guide of a 35% decline). GAAP gross profit fell to $57M from $66M in Q3; GAAP gross margin was 7.7% (up 50 bps QoQ). Contribution profit declined to $7M (1% contribution margin) from $20M (2.2%) in Q3.
Read all updates
Q4-2025 Updates
Positive
Negative
Acquisition Volume Acceleration
Purchased 1,706 homes in Q4, a 46% increase quarter-over-quarter (from 1,169 in Q3). Weekly acquisition contracts reached 537 (up from 236 at last call); acquisition velocity increased ~300% since September and DTC acquisitions up ~700% comparing last week to the last week of Q3.
Read all positive updates
Company Guidance
Management guided to adjusted net income profitability by year‑end 2026 on a 12‑month go‑forward basis, targeting an acquisition run‑rate of ~6,000 homes per quarter by exit Q4 2026, and gave Q1 2026 outlook of roughly a 10% quarter‑over‑quarter revenue decline and an adjusted EBITDA loss in the low‑to‑mid $30 million range; they expect to exit Q1 with the highest contribution margin since Q2 2024 and to target long‑term contribution margins around 5%–7%. Operational discipline targets include holding fixed operating expenses flat (Q4 fixed OpEx $35M, down $2M QoQ and $8M YoY) and keeping trailing 12‑month operations expense steady at 1.3% of revenue, while scaling acquisitions from the Q4 purchase level of 1,706 homes (+46% QoQ), weekly contract activity (537 contracts last week vs. 236 at the prior call), faster resale velocity (October 2025 cohort >50% sold‑through, cohort resale velocity ~2x October 2024, homes >120 days down from 51% to 33% in Q4), and maintaining liquidity (unrestricted cash $962M, $133M equity in homes, 2,867 homes on hand representing ~$925M net inventory, $7.2B non‑recourse ABL capacity and $1.6B total committed borrowing).Opendoor Technologies Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
44
Neutral
Cash Flow
63
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.37B | 5.15B | 6.95B | 15.57B | 8.02B |
| Gross Profit | 304.00M | 433.00M | 487.00M | 667.00M | 730.00M |
| EBITDA | -1.12B | -243.00M | 9.00M | -876.00M | -509.00M |
| Net Income | -1.30B | -392.00M | -275.00M | -1.35B | -662.00M |
Balance Sheet | |||||
| Total Assets | 2.41B | 3.13B | 3.57B | 6.61B | 9.51B |
| Cash, Cash Equivalents and Short-Term Investments | 962.00M | 679.00M | 1.07B | 1.28B | 2.21B |
| Total Debt | 193.00M | 2.32B | 2.53B | 5.40B | 7.11B |
| Total Liabilities | 1.40B | 2.41B | 2.60B | 5.52B | 7.26B |
| Stockholders Equity | 1.00B | 713.00M | 967.00M | 1.09B | 2.25B |
Cash Flow | |||||
| Free Cash Flow | 1.04B | -620.00M | 2.31B | 693.00M | -5.83B |
| Operating Cash Flow | 1.05B | -595.00M | 2.34B | 730.00M | -5.79B |
| Investing Cash Flow | -12.00M | 28.00M | 44.00M | 234.00M | -476.00M |
| Financing Cash Flow | -499.00M | -210.00M | -2.64B | -1.75B | 7.34B |
Opendoor Technologies Technical Analysis
Negative
4.31
Price Trends
4.93
Negative
5.84
Negative
5.47
Negative
Market Momentum
-0.17
Positive
38.86
Neutral
17.32
Positive
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 4.31 is below the 20-day moving average (MA) of 4.88, below the 50-day MA of 4.93, and below the 200-day MA of 5.47, indicating a bearish trend. The MACD of -0.17 indicates Positive momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 17.32 is Positive, 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $18.06B | 41.95 | 4.29% | 2.26% | 25.33% | -15.12% | |
60 Neutral | $3.05B | 42.44 | 4.65% | ― | 6.77% | 150.72% | |
59 Neutral | $189.67M | 18.48 | 1.84% | ― | -6.06% | ― | |
57 Neutral | $954.02M | -63.56 | -10.00% | 2.09% | 5.08% | 41.21% | |
52 Neutral | $34.41M | -0.97 | -135.60% | ― | -36.25% | 11.92% | |
50 Neutral | $4.13B | -3.44 | -168.18% | ― | -4.45% | 18.95% |
* Real Estate Sector Average
OPEN
Opendoor Technologies
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322.55%
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Opendoor Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
Opendoor Highlights Progress Toward Breakeven With Opendoor 2.0
Neutral
Feb 19, 2026
On February 19, 2026, Opendoor reported fourth-quarter and full-year 2025 results, highlighting that its “Opendoor 2.0” model has begun to deliver higher acquisition growth, faster inventory turns and stronger unit economics. Homes pur...
Business Operations and StrategyRegulatory Filings and Compliance
Opendoor Updates CEO Social Media Channels for Disclosures
Neutral
Jan 26, 2026
Opendoor Technologies announced on September 17, 2025, that it uses a range of digital channels—including its website, press releases, regulatory filings, blogs, community hub and corporate and CEO social media accounts—as primary outl...
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.