Opendoor Technologies Inc (OPEN)
NASDAQ:OPEN
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Opendoor Technologies
(NASDAQ:OPEN)
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Rating:55Neutral
Price Target:
$4.50
▼(-14.93% Downside)
Action:Reiterated
Date:05/09/26
The score is held back primarily by weak profitability and declining revenue, despite strong recent free-cash-flow generation and meaningfully reduced leverage. The latest earnings call improves the outlook with specific guidance toward breakeven adjusted EBITDA and better unit economics/inventory health, but the chart remains below long-term trend levels and valuation is constrained by ongoing losses and no dividend.
Positive Factors
Leverage reduction
A materially lower debt load and ~0.2x debt/equity meaningfully reduce solvency and refinancing risk. This improves financial flexibility to fund inventory and product rollout, lowers interest burden, and gives management room to execute the turnaround without immediate capital raises.
Negative Factors
Shrinking revenue base
A declining top line erodes operational scale and makes fixed cost absorption harder, raising the bar for margin recovery. Continued revenue shrinkage could limit reinvestment ability, compress unit economics, and require sustained margin improvements to achieve durable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Leverage reduction
A materially lower debt load and ~0.2x debt/equity meaningfully reduce solvency and refinancing risk. This improves financial flexibility to fund inventory and product rollout, lowers interest burden, and gives management room to execute the turnaround without immediate capital raises.
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
$4.37B
Dividend YieldN/A
Average Volume (3M)36.81M
Price to Earnings (P/E)―
Beta (1Y)2.36
Revenue Growth-23.16%
EPS Growth-208.85%
CountryUS
Employees1,470
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-1.76
Shares Outstanding964,736,630
10 Day Avg. Volume32,892,578
30 Day Avg. Volume36,808,566
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 Cap0.61
Enterprise Value/Revenue0.68
Enterprise Value/Gross Profit8.55
Enterprise Value/Ebitda-2.14
Forecast
1Y Price Target
$5.75Price Target Upside8.70% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-0.4
Revenue Forecast (FY)$3.98B
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 Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasizes meaningful operational and product progress: cohort margin stability, faster resale velocity, sharp reductions in aged inventory, accelerating contract and acquisition volumes, clear AI-driven efficiency gains, strong liquidity and a path to adjusted EBITDA/ANI profitability. Management acknowledges macro headwinds, early-stage products that require further validation, and execution risks that must be monitored. On balance the update contains substantially more concrete positive developments and measurable improvements than negatives, while also transparently calling out what remains unproven.Positive Updates
Cohort Performance and Margin Stability
October–January cohorts show materially improved margin stability: margins for core cash products fell only ~90 basis points from 10% sold to >80% sold vs ~260 bps last year (≈3x improvement). Q4'25 and Jan'26 cohorts have best combination of margin, margin stability and resale velocity in company history (ex-COVID).
Negative Updates
Challenging Macro and Market Conditions
Mortgage rates remain high and listings are at all‑time highs; management repeatedly notes the housing macro is unfavorable and seasonality (selling seasonality and Q4 margin compression) remains a headwind that can affect resale velocity and acquisition cadence.
Read all updates
Q1-2026 Updates
Positive
Negative
Cohort Performance and Margin Stability
October–January cohorts show materially improved margin stability: margins for core cash products fell only ~90 basis points from 10% sold to >80% sold vs ~260 bps last year (≈3x improvement). Q4'25 and Jan'26 cohorts have best combination of margin, margin stability and resale velocity in company history (ex-COVID).
Read all positive updates
Company Guidance
Management guided that Q2 2026 should be an inflection quarter: they expect adjusted EBITDA to be roughly breakeven (± a few million) and to be adjusted EBITDA‑profitable on a 12‑month go‑forward basis starting in Q2, with adjusted net income positive on a forward 12‑month basis by year‑end; revenue is expected to rise about 25% QoQ as Q1’s higher acquisitions (2,474 purchases, up 45% QoQ) and over 5,000 signed contracts begin to flow to resale, contribution margin for Q2 is guided to the middle of the 5%–7% target (Q1 resale contribution margin closed at 4.4%, +3.4 ppts QoQ), inventory aged >120 days has fallen to 10% (from 51% in Q3), fixed OpEx was $33M (−$2M QoQ, −$6M YoY), unrestricted cash totaled $999M, net inventory was $1.1B (3,420 homes), and non‑recourse ABL capacity is $7.1B with $1.5B committed.Opendoor Technologies Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
46
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.94B | 4.37B | 5.15B | 6.95B | 15.57B | 8.02B |
| Gross Profit | 312.00M | 304.00M | 433.00M | 487.00M | 667.00M | 730.00M |
| EBITDA | -1.25B | -1.12B | -243.00M | 9.00M | -876.00M | -509.00M |
| Net Income | -1.39B | -1.30B | -392.00M | -275.00M | -1.35B | -662.00M |
Balance Sheet | ||||||
| Total Assets | 2.35B | 2.41B | 3.13B | 3.57B | 6.61B | 9.51B |
| Cash, Cash Equivalents and Short-Term Investments | 999.00M | 962.00M | 679.00M | 1.07B | 1.28B | 2.21B |
| Total Debt | 193.00M | 193.00M | 2.32B | 2.53B | 5.40B | 7.11B |
| Total Liabilities | 1.40B | 1.40B | 2.41B | 2.60B | 5.52B | 7.26B |
| Stockholders Equity | 954.00M | 1.00B | 713.00M | 967.00M | 1.09B | 2.25B |
Cash Flow | ||||||
| Free Cash Flow | 1.07B | 1.04B | -620.00M | 2.31B | 693.00M | -5.83B |
| Operating Cash Flow | 1.08B | 1.05B | -595.00M | 2.34B | 730.00M | -5.79B |
| Investing Cash Flow | -18.00M | -12.00M | 28.00M | 44.00M | 234.00M | -476.00M |
| Financing Cash Flow | -690.00M | -499.00M | -210.00M | -2.64B | -1.75B | 7.34B |
Opendoor Technologies Technical Analysis
Negative
5.29
Price Trends
4.94
Negative
5.22
Negative
6.01
Negative
Market Momentum
-0.18
Positive
41.91
Neutral
41.05
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 5.29 is above the 20-day moving average (MA) of 4.92, above the 50-day MA of 4.94, and below the 200-day MA of 6.01, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 41.91 is Neutral, neither overbought nor oversold. The STOCH value of 41.05 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $316.97M | -3.03 | 0.08% | ― | -5.43% | -93.40% | |
60 Neutral | $18.97B | 22.45 | 4.29% | 2.26% | -8.90% | -21.42% | |
58 Neutral | $3.02B | -56.63 | 3.79% | ― | 10.40% | -54.85% | |
55 Neutral | $4.37B | -6.49 | -163.25% | ― | -23.16% | -208.85% | |
54 Neutral | $33.48M | -0.75 | -111.72% | ― | -38.65% | 43.87% |
* Real Estate Sector Average
OPEN
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Opendoor Technologies Corporate Events
Business Operations and StrategyFinancial Disclosures
Opendoor Highlights Operational Turnaround and Path to Profitability
Positive
May 7, 2026
On May 7, 2026, Opendoor reported first-quarter 2026 results showing signs of an operational turnaround despite lower year-over-year volume and revenue. Revenue fell to $720 million from $1.15 billion and net loss widened to $173 million, but gros...
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.