Opendoor stock jumps after Q4 earnings
Published by RawNews1st
Opendoor Technologies (OPEN) stock climbed 13% in Thursday after-hours trading as the residential real estate platform made progress in its transformation plan. Q4 revenue and adjusted EBITDA exceeded the Wall Street consensus estimates.
“We increased our homes purchased by 46% quarter-over-quarter, significantly reduced our capital intensity by expanding Cash Plus such that it is now 35% of our weekly volume, and we reduced average days in possession of our inventory by 23%,” said CEO Kaz Nejatian.
The company is targeting to achieve positive adjusted net income on a 12-month go-forward basis by the end of 2026.
The online real estate platform expects Q1 revenue to decline ~10% from Q4 2025’s $736M, implying revenue of ~$662M vs. $1.03B consensus and adjusted EBITDA loss in the low to mid-$30Ms (vs. Visible Alpha consensus of -$40.4M). The company expects Q1 contribution margin to be its highest since Q2 2024.
Reactivation of direct-to-consumer (D2C) channels is expected to have aided the company’s fourth-quarter performance. Management indicated that early D2C tests demonstrated meaningfully stronger conversion compared to traditional flows. By simplifying the selling experience and reducing human touchpoints in underwriting, the company likely improved customer engagement while lowering friction in the transaction process.
Product innovation may have supported the company’s performance in the fourth quarter. The launch of Opendoor Checkout — enabling buyers to place offers digitally without direct interaction — along with features such as Buyer Peace of Mind and expanded warranty offerings, is expected to have strengthened the value proposition for both buyers and sellers. Additionally, early progress toward integrating ancillary services, including mortgage and insurance capabilities, may have started to position the company for improved revenue per transaction over time.
