Opendoor Technologies Inc. released its fourth-quarter 2025 financial results, presenting a complex picture that investors ultimately viewed with optimism. The market chose to focus on strengthening operational metrics and a strategic pivot, sending the company’s stock higher, even as the balance sheet reflected a significant net loss.
Strategic Shift and Efficiency Gains Take Center Stage
Investor confidence appeared to be driven by clear improvements in the company’s core operations. The number of homes purchased increased by 46% compared to the previous quarter. Furthermore, Opendoor reduced the average holding period for properties in its inventory by 23%, a key efficiency measure.
The speed of inventory turnover provided a major boost: the proportion of homes listed for more than 120 days dropped sharply from 51% in the third quarter to 33% by year-end. Management is increasingly emphasizing its less capital-intensive “Cash Plus” model, which now accounts for 35% of weekly volume. The company also successfully lowered its fixed operating costs, which fell to $35 million from $43 million a year earlier.
Revenue Exceeds Forecasts Amidst Substantial Net Loss
For the quarter, Opendoor posted revenue of $736 million. While this figure represents a 32% decline year-over-year, it surpassed analyst projections. The net loss, however, widened considerably to $1.1 billion, a stark increase from a loss of $113 million in the prior-year period.
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This substantial increase was primarily attributable to a non-cash loss of $933 million related to debt extinguishment. Excluding this and other items, the adjusted EBITDA loss was $43 million, which was narrower than market fears. On a per-share basis, the company reported a loss of $1.26, missing analyst expectations.
Path to Profitability Targets Late 2026
Looking ahead, Opendoor provided guidance for the first quarter of 2026, anticipating a sequential revenue decline of approximately 10%. Despite this, management forecasts that per-unit profitability will continue to improve, reaching its highest level in nearly two years by the end of March. The adjusted EBITDA loss for Q1 2026 is expected to be in the low-to-mid $30 million range.
The long-term corporate goal remains reaching breakeven on an adjusted net income basis by the end of 2026. To support this target, the company aims to scale its purchase volume to roughly 6,000 homes per quarter by the fourth quarter of 2026. CEO Kaz Nejatian highlighted the growing role of artificial intelligence within the company’s “Opendoor 2.0” operational framework as a key driver for this evolution.
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