Opendoor Technologies (OPEN) AI Stock Analysis

• Market Cap: $5.98B
• Dividend Yield: N/A
• Average Volume (3M): 97.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.56
• 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): -0.12
• Shares Outstanding: 953,788,150
• 10 Day Avg. Volume: 67,791,711
• 30 Day Avg. Volume: 97,284,620
• PEG Ratio: -0.09
• Price to Book (P/B): 1.57
• Price to Sales (P/S): 0.22
• P/FCF Ratio: -1.81
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 16.53
• Enterprise Value/Ebitda: -46.63
• 1Y Price Target: $4.35
• Price Target Upside: -30.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): -0.35
• Revenue Forecast (FY): $4.20B

• Rating: 53 Neutral
• Price Target: $6.50 ▲(3.67% Upside)

Opendoor Technologies is navigating a challenging financial landscape with declining revenues and persistent net losses. Despite improvements in cash flow and leverage management, the technical indicators suggest bearish momentum. The company's strategic pivot and focus on operational efficiency and product innovation provide a more optimistic outlook, but achieving profitability remains a critical challenge.

Positive Factors

Leadership Changes

The appointment of a new President and CFO brings fresh strategic perspectives, potentially enhancing corporate governance and driving innovation.

Operational Efficiency

Streamlining operations can significantly reduce costs and improve margins, enhancing the company's long-term profitability and competitiveness.

Cash Flow Improvement

Improved cash flow metrics indicate stronger financial health, providing the company with more flexibility to invest in growth and innovation.

Negative Factors

Declining Revenue

Declining revenue growth poses a challenge to achieving profitability and may impact the company's ability to sustain its market position.

Net Losses

Persistent net losses highlight ongoing challenges in achieving profitability, which could affect long-term financial sustainability.

Old Inventory Challenges

Issues with old inventory can strain margins and limit the company's ability to efficiently manage its asset portfolio, impacting profitability.

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

Opendoor Technologies is facing challenges with declining revenues and persistent net losses. However, improvements in cash flow and leverage management provide a more optimistic outlook. The company needs to focus on achieving profitability and sustaining revenue growth to enhance its financial position.

Income Statement

Opendoor Technologies has experienced declining revenue growth, with a negative growth rate of -8.92% in the TTM period. The company is facing challenges with profitability, as indicated by negative net profit margins and EBIT margins. Despite a slight improvement in gross profit margin over the years, the overall income statement reflects ongoing struggles with achieving profitability.

Balance Sheet

The company's debt-to-equity ratio has improved significantly in the TTM period, dropping to 0.54 from previous high levels, indicating better leverage management. However, the return on equity remains negative, reflecting ongoing losses. The equity ratio is relatively stable, suggesting a moderate level of financial stability despite past high leverage.

Cash Flow

Opendoor Technologies shows a strong improvement in cash flow metrics, with a substantial increase in free cash flow growth and a positive operating cash flow to net income ratio. The company has managed to generate positive free cash flow, which is a positive indicator of financial health despite ongoing net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.72B	5.15B	6.95B	15.57B	8.02B	2.58B
Gross Profit	378.00M	433.00M	487.00M	667.00M	730.00M	220.00M
EBITDA	-134.00M	-243.00M	9.00M	-876.00M	-509.00M	-122.00M
Net Income	-317.00M	-392.00M	-275.00M	-1.35B	-662.00M	-253.00M
Balance Sheet
Total Assets	2.70B	3.13B	3.57B	6.61B	9.51B	2.18B
Cash, Cash Equivalents and Short-Term Investments	962.00M	679.00M	1.07B	1.28B	2.21B	1.46B
Total Debt	439.00M	2.32B	2.53B	5.40B	7.11B	550.00M
Total Liabilities	1.89B	2.41B	2.60B	5.52B	7.26B	623.00M
Stockholders Equity	811.00M	713.00M	967.00M	1.09B	2.25B	1.55B
Cash Flow
Free Cash Flow	887.00M	-620.00M	2.31B	693.00M	-5.83B	665.00M
Operating Cash Flow	899.00M	-595.00M	2.34B	730.00M	-5.79B	682.00M
Investing Cash Flow	-12.00M	28.00M	44.00M	234.00M	-476.00M	-22.00M
Financing Cash Flow	-489.00M	-210.00M	-2.64B	-1.75B	7.34B	161.00M

Opendoor Technologies Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPEN, the sentiment is Neutral. The current price of 6.27 is below the 20-day moving average (MA) of 6.94, below the 50-day MA of 7.26, and above the 200-day MA of 3.85, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 17.76 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OPEN.

Opendoor Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWK	69 Neutral	$3.79B	17.14	12.21%	―	6.77%	150.72%
RMAX	68 Neutral	$246.58M	12.31	2.87%	―	-6.06%	―
EXPI	67 Neutral	$1.52B	-75.75	-8.09%	2.09%	5.08%	41.21%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BEKE	62 Neutral	$18.77B	38.67	4.91%	2.26%	25.33%	-15.12%
OPEN	53 Neutral	$5.98B	-14.37	-39.33%	―	-4.45%	18.95%
OPAD	44 Neutral	$49.76M	-0.70	-104.99%	―	-36.25%	11.92%

Opendoor Technologies Corporate Events

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.

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.

Opendoor Technologies Registers 180M Shares for Sale

On November 7, 2025, Opendoor Technologies Inc. filed a prospectus supplement with the SEC to register the issuance and sale of 180,580,200 shares of common stock at $6.56 per share. This filing, supported by a legal opinion from Latham & Watkins LLP, is part of the company’s strategy to leverage its effective shelf registration statement to raise capital, potentially impacting its market positioning and stakeholder interests.

Opendoor Technologies Announces Special Dividend Distribution

On November 6, 2025, Opendoor Technologies announced a special dividend distribution of warrants to its common stockholders, aiming to align shareholder and management interests. The distribution will provide three series of warrants—Series K, A, and Z—per thirty shares held, with exercise prices set at $9, $13, and $17 respectively. Additionally, Opendoor entered into share purchase agreements to issue 180,580,200 shares at $6.56 each, using proceeds to repurchase $264 million of its 2030 Convertible Notes. This move is designed to strengthen the balance sheet without materially impacting cash position, though it may affect stock trading prices.

Opendoor Technologies Reports Q3 2025 Financial Results

On November 6, 2025, Opendoor Technologies announced its financial results for the third quarter ending September 30, 2025, with a focus on transitioning into a software and AI-driven company under new CEO Kaz Nejatian. The company aims to achieve profitability by enhancing transaction volumes, improving unit economics, and maintaining operational efficiency. Despite reporting a net loss of $90 million for the quarter, Opendoor is committed to reaching breakeven adjusted net income by the end of the next year through strategic initiatives such as scaling acquisitions, improving resale speed, and leveraging its existing cost structure.

Opendoor Technologies Settlement Gains Preliminary Approval

On September 11, 2025, the U.S. District Court for the District of Arizona granted preliminary approval for a settlement in a derivative action involving Opendoor Technologies Inc. This settlement, which includes related litigation in Delaware, involves Opendoor adopting corporate governance reforms in exchange for a full release of claims. The settlement follows a global mediation held on February 7, 2025, and aims to resolve multiple shareholder derivative actions against the company and its executives.

Opendoor Technologies Appoints Interim CFO Christy Schwartz

Opendoor Technologies Inc. announced the appointment of Christy Schwartz as interim Chief Financial Officer effective September 30, 2025, following the departure of Selim Freiha on September 19, 2025. Schwartz, who has previously served in various roles within the company, including interim CFO and Chief Accounting Officer, will hold the interim position until May 15, 2026, or until a new CFO is appointed. Her compensation package includes a base salary of $1,200,000 and 400,641 restricted stock units, with specific terms for vesting and severance.