Opendoor Shares Plunge Following Disappointing Quarterly Results

Opendoor Technologies Inc. witnessed a dramatic selloff in its stock price after releasing third-quarter financial figures that fell short of market expectations. The company's shares tumbled more than 8% in after-hours trading as investors reacted negatively to widening losses and declining operational metrics amid a strategic pivot under new leadership.

The property technology company reported an adjusted loss per share of $0.12, significantly worse than the $0.07 loss anticipated by market analysts. While revenue reached $915 million, exceeding the company's own guidance, this figure still came in below Wall Street's projection of $922 million. The year-over-year comparison revealed a more troubling trend, with total revenue declining 34% to $1.38 billion.

Further disappointing investors, the company's adjusted EBITDA showed a loss of $33 million—approximately 70% worse than the $19.4 million loss analysts had forecast. Net losses expanded to $90 million compared to $78 million during the same period last year.

Strategic Shift Under New Leadership

Kaz Nejatian, who assumed the CEO role in September 2025, unveiled what he termed "Opendoor 2.0"—a comprehensive transformation aimed at repositioning the company as an artificial intelligence-driven software platform. "We are fundamentally reestablishing Opendoor as a software and AI company," Nejatian declared in his vision statement.

The executive has already implemented operational changes, including deploying AI tools that reduced staffing requirements in sales processes from 11 positions to just one. The company has introduced more than a dozen AI-supported products as part of this technological overhaul.

Should investors sell immediately? Or is it worth buying Opendoor?

Operational Challenges Persist

Key performance indicators revealed substantial challenges across the business:

• Completed home sales dropped 29% to 2,568 units
• Home acquisitions plummeted 67% to just 1,169 properties
• Inventory value contracted from $2.15 billion to $1.05 billion
• Contribution margin deteriorated from 3.8% to 2.2%

Path to Profitability

Nejatian has established an ambitious target of reaching break-even on adjusted net income by the end of 2026. Management outlined three core strategies to achieve this goal: scaling acquisition volumes, improving unit economics, and building operational leverage.

To fund this strategic transformation, Opendoor secured nearly $200 million through its equity program during September. The company also announced a shareholder-friendly warrant dividend program.

Looking ahead to the fourth quarter of 2025, management anticipates acquisition volume will increase by at least 35% compared to the third quarter. However, revenue is projected to decline by approximately 35%, reflecting the company's reduced inventory levels. Adjusted EBITDA losses for the upcoming quarter are estimated between $40 million and $50 million.