Real estate platform Opendoor (OPEN) is set to report its Q3 earnings results on November 6 after the market closes. Analysts are expecting earnings per share to come in at -$0.08 on revenue of $849.60 million. This compares to last year’s figures of -$0.11 and $1.38 billion, respectively. Interestingly, Pfizer has a solid track record when it comes to beating earnings, as it has done so in 10 consecutive quarters. However, investors will be paying close attention to how the company is navigating a tough housing market.
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Although Opendoor delivered an adjusted EBITDA of $23 million, its first quarter of profitability on that basis in three years, management noted that the broader environment remains challenging due to high mortgage rates and weaker demand from homebuyers. As a result, for Q3, the company has provided guidance that points to more challenges ahead. Opendoor expects to acquire roughly 1,200 homes, with projected revenue between $800 million and $875 million. The expected contribution margin is 2.8% to 3.3%, and adjusted EBITDA is forecast to come in between a $28 million and $21 million loss.
Outside of the core financial figures, Opendoor is making key strategic shifts to expand beyond its traditional instant-buy model. More precisely, the company is building a broader platform that includes agent partnerships, in-house financing, and hybrid offerings, such as “Cash Plus.” Interestingly, Cash Plus is a hybrid selling option that offers sellers upfront cash, as well as potential future profits. And while most of the upside from these changes is expected in 2026 and after, investors will be looking for early progress in Q3, such as more agent-driven listings or better conversion rates.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you. Indeed, it currently says that options traders are expecting a 16% move in either direction.
Is OPEN Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Sell consensus rating on OPEN stock based on one Buy, two Holds, and five Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average OPEN price target of $1.73 per share implies 75% downside risk.
