Opendoor Technologies (OPEN) AI Stock Analysis

• Market Cap: $4.42B
• Dividend Yield: N/A
• Average Volume (3M): 52.50M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.59
• Revenue Growth: -4.45%
• EPS Growth: 18.95%
• Country: US
• Employees: 1,470
• Sector: Real Estate
• Sector Strength: 53
• Industry: Real Estate - Services
• EPS (TTM): -1.26
• Shares Outstanding: 953,788,150
• 10 Day Avg. Volume: 40,207,081
• 30 Day Avg. Volume: 52,501,427
• PEG Ratio: -0.02
• Price to Book (P/B): 4.45
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 4.31
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 11.10
• Enterprise Value/Ebitda: -31.31
• 1Y Price Target: $5.00
• Price Target Upside: 7.99% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $4.50 ▼(-2.81% Downside)

The score is held down primarily by deteriorating revenue trends and persistent losses, reinforced by weak technical momentum. Offsetting factors include materially improved leverage, a strong 2025 cash flow rebound, and a more constructive strategic outlook from the latest earnings call, though execution and margin recovery remain key risks.

Positive Factors

Balance sheet deleveraging

Material debt reduction and a low debt-to-equity ratio materially lower solvency risk and interest burden. This durable improvement increases financial flexibility to fund operations, absorb housing cycle shocks, and invest in product and acquisition growth without relying on volatile capital markets.

Strong 2025 cash generation

A substantial swing to positive operating and free cash flow provides a repeatable source of internal funding for working capital and strategic investments. Durable cash generation reduces liquidity risk, supports scaled acquisitions under Opendoor 2.0, and limits dependence on external financing.

Opendoor 2.0: product & efficiency shift

A strategic pivot to AI-enabled pricing, new customer products, and meaningful process automation can sustainably improve unit economics and operating leverage. Faster turns and lower fixed costs boost scalability and can structurally raise contribution margins if execution persists across cohorts.

Negative Factors

Multi-year revenue decline

A persistent top-line decline erodes scale benefits critical to iBuying (spread, marketing, distribution). Lower revenues constrain the company’s ability to absorb fixed costs, slow product rollouts, and reduce bargaining power with partners, making margin recovery and profit scalability harder to achieve.

Ongoing losses and thin margins

Persistently low gross margins and large net losses indicate the core transacting economics remain challenged. Even with lower leverage and better cash flow, sustained negative returns hinder reinvestment, weaken ROE, and raise the bar for management to demonstrate consistent, structural profitability.

Legacy inventory quality risk

Poor-quality legacy inventory weighs on current margins and obscures portfolio economics. Resolving prior selection errors requires sustained discipline in acquisitions and resale; until older cohorts cycle through, margins and unit economics may remain volatile and recovery may be protracted.

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 Technologies Inc. was incorporated in 2013 and is based in Tempe, Arizona.

How the Company Makes Money

Opendoor generates revenue primarily through its home buying and selling operations. The company makes money by purchasing homes at a discounted price, making necessary repairs or improvements, and then reselling them at a higher price. This business model, known as iBuying, allows Opendoor to take advantage of market fluctuations. Additionally, Opendoor earns revenue from transaction fees charged to sellers when they sell their homes through the platform and from buyers when they purchase properties. The company also seeks to expand its revenue through partnerships with real estate agents and mortgage lenders, enhancing its service offerings and potentially increasing its market reach.

Opendoor Technologies Financial Statement Overview

Summary

Overall fundamentals are mixed. Revenue has declined for three straight years and profitability remains weak with deep net losses, but the balance sheet has improved significantly due to major debt reduction and 2025 showed a strong rebound in operating and free cash flow.

Income Statement

Revenue has contracted for three straight years (2023–2025 annual), falling from $6.95B (2023) to $4.37B (2025). Profitability remains weak: gross margin is low (~7–8% in 2023–2025) and the company continues to post operating losses and net losses, with a sharp deterioration in 2025 net margin (about -30%) versus 2024 (about -8%). The key positive is modest improvement in gross margin versus 2022, but it has not translated into sustainable earnings.

Balance Sheet

Leverage has improved materially: total debt fell to $193M in 2025 from multi-billion levels in 2021–2024, bringing debt-to-equity down to ~0.19 in 2025 (from ~3.25 in 2024). Equity is still positive ($1.01B in 2025) and assets are $2.41B. However, returns remain deeply negative (return on equity is strongly negative in 2025) due to ongoing losses, which continues to pressure the balance sheet quality despite the healthier debt load.

Cash Flow

Cash generation is a relative strength recently: 2025 shows strong operating cash flow of $1.05B and free cash flow of $1.04B, improving versus 2024 (negative operating and free cash flow). Cash flow has been volatile across years (e.g., very negative in 2021, very positive in 2023), but the latest annual period demonstrates meaningful cash inflow and improving free cash flow growth, which helps offset weak accounting profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.72B	4.37B	5.15B	6.95B	15.57B	8.02B
Gross Profit	378.00M	350.00M	433.00M	487.00M	667.00M	730.00M
EBITDA	-134.00M	-287.00M	-243.00M	9.00M	-876.00M	-509.00M
Net Income	-317.00M	-1.30B	-392.00M	-275.00M	-1.35B	-662.00M
Balance Sheet
Total Assets	2.70B	2.41B	3.13B	3.57B	6.61B	9.51B
Cash, Cash Equivalents and Short-Term Investments	962.00M	962.00M	679.00M	1.07B	1.28B	2.21B
Total Debt	1.79B	193.00M	2.32B	2.53B	5.40B	7.11B
Total Liabilities	1.89B	1.40B	2.41B	2.60B	5.52B	7.26B
Stockholders Equity	811.00M	1.00B	713.00M	967.00M	1.09B	2.25B
Cash Flow
Free Cash Flow	887.00M	1.04B	-620.00M	2.31B	693.00M	-5.83B
Operating Cash Flow	899.00M	1.05B	-595.00M	2.34B	730.00M	-5.79B
Investing Cash Flow	-12.00M	-12.00M	28.00M	44.00M	234.00M	-476.00M
Financing Cash Flow	-489.00M	-499.00M	-210.00M	-2.64B	-1.75B	7.34B

Opendoor Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 4.63 is below the 20-day moving average (MA) of 5.10, below the 50-day MA of 5.94, and below the 200-day MA of 4.74, indicating a bearish trend. The MACD of -0.47 indicates Positive momentum. The RSI at 38.57 is Neutral, neither overbought nor oversold. The STOCH value of 33.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPEN.

Opendoor Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BEKE	62 Neutral	$20.06B	41.75	4.91%	2.26%	25.33%	-15.12%
CWK	60 Neutral	$3.14B	13.76	12.21%	―	6.77%	150.72%
RMAX	58 Neutral	$222.77M	11.35	2.87%	―	-6.06%	―
EXPI	54 Neutral	$1.19B	-59.11	-8.09%	2.09%	5.08%	41.21%
OPAD	49 Neutral	$38.24M	-0.42	-104.99%	―	-36.25%	11.92%
OPEN	48 Neutral	$4.42B	-10.66	-39.33%	―	-4.45%	18.95%

Opendoor Technologies Corporate Events

Opendoor Highlights Progress Toward Breakeven With Opendoor 2.0

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 purchased rose 46% quarter over quarter, the share of properties on the market more than 120 days fell from 51% to 33%, and fixed operating expenses declined to $35 million in Q4 2025 from $43 million a year earlier, even as revenue and volumes remained below 2024 levels.

Management pointed to the October 2025 acquisition cohort as the best-performing October in company history by contribution margin, with homes selling at more than twice the pace of the October 2024 cohort and over half already sold or under resale contract. Despite a net loss of $1.1 billion for the quarter and $1.3 billion for 2025, Opendoor stressed structural operational improvements, reduced capital intensity through its Cash Plus offering, and stable operating leverage as key steps toward its goal of reaching breakeven adjusted net income by the end of 2026 on a rolling 12-month basis.

The most recent analyst rating on (OPEN) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Opendoor Technologies stock, see the OPEN Stock Forecast page.

Opendoor Updates CEO Social Media Channels for Disclosures

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 outlets for sharing material information and meeting its disclosure obligations under U.S. securities regulations. The company emphasized that its CEO Kaz Nejatian’s previous X handle is no longer in use for such disclosures, and that investors should now monitor his new @Nejatian handle alongside @Opendoor and other official channels, underscoring the growing role of social platforms in corporate communications and the need for stakeholders to track these outlets to stay informed about potentially market-moving updates.

The most recent analyst rating on (OPEN) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Opendoor Technologies stock, see the OPEN Stock Forecast page.

Opendoor Technologies Appoints New President and CFO

On December 15, 2025, Opendoor Technologies announced the appointment of Lucas Matheson as President, effective December 22, 2025, and Christy Schwartz as Chief Financial Officer, effective January 1, 2026. Matheson, previously CEO of Coinbase Canada, will oversee corporate development and strategic initiatives, including blockchain exploration, while Schwartz, who served as interim CFO, was chosen for her deep understanding of the company. These leadership changes aim to accelerate Opendoor’s growth and innovation in the real estate sector.

The most recent analyst rating on (OPEN) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Opendoor Technologies stock, see the OPEN Stock Forecast page.

Opendoor Technologies Issues Warrants as Special Dividend

Opendoor Technologies Inc. announced the distribution of warrants to its shareholders and certain convertible noteholders as a special dividend on November 21, 2025. This move, described by CEO Kaz Nejatian as a demonstration of confidence in the company’s long-term value, aims to realign shareholder interests. The warrants, which are exercisable for cash, are set to trade on Nasdaq under the tickers OPENW, OPENL, and OPENZ, with expiration dates set for November 20, 2026, unless early expiration conditions are met. This distribution is part of Opendoor’s strategy to strengthen its relationship with shareholders, reflecting a structural commitment to their interests.

The most recent analyst rating on (OPEN) stock is a Hold with a $7.50 price target. To see the full list of analyst forecasts on Opendoor Technologies stock, see the OPEN Stock Forecast page.