Opendoor Technologies (OPEN) AI Stock Analysis

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Opendoor Technologies

(NASDAQ:OPEN)

44Neutral

Opendoor Technologies faces significant financial and market challenges, reflected in its weak financial performance and bearish technical indicators. While the company has shown improvement in operational metrics and reduced losses, external market pressures and poor valuation metrics weigh heavily on its overall stock score.

Positive Factors

Financial Performance

Opendoor Technologies reported solid upside in first-quarter results across the board, exceeding expectations for revenue and EBITDA.

Operational Strategy

The new seller referral program pilot is expected to improve conversion rates and provide asset-light revenue diversification.

Negative Factors

Business Model Challenges

The company's business model faces structural challenges, affecting its ability to generate consistent, long-term profits.

Financial Guidance

Revenue guidance for 1Q is below consensus, with an expected EBITDA loss significantly higher than consensus.

Market Conditions

The housing market has deteriorated, driven by ongoing tariff-related macro uncertainty and high mortgage rates, leading to subdued buyer demand.

Opendoor Technologies (OPEN) vs. S&P 500 (SPY)

Market Cap

$542.74M

Dividend YieldN/A

Average Volume (3M)49.48M

Price to Earnings (P/E)―

Beta (1Y)2.54

Revenue Growth2.36%

EPS Growth-23.60%

CountryUS

Employees1,470

SectorReal Estate

Sector Strength81

IndustryReal Estate - Services

Share Statistics

EPS (TTM)-0.12

Shares Outstanding728,896,900

10 Day Avg. Volume73,298,093

30 Day Avg. Volume49,484,936

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap4.96

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit5.53

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$1.36

Price Target Upside56.32% Upside

Rating ConsensusHold

Number of Analyst Covering9

Opendoor Technologies Business Overview & Revenue Model

Company DescriptionOpendoor Technologies Inc. is a leading digital platform for residential real estate transactions. The company operates in the real estate technology sector, offering homeowners a streamlined process to buy and sell homes online. Opendoor's core services include providing instant cash offers to sellers, facilitating home purchases, and managing the renovation and listing process to help resell homes on the open market.

How the Company Makes MoneyOpendoor makes money primarily through transaction fees charged to home sellers. When a homeowner sells a property to Opendoor, the company charges a service fee, which is a percentage of the home's sale price. Additionally, Opendoor generates revenue from the resale of homes that it purchases, often after making value-enhancing renovations. The company also benefits from ancillary services such as title and escrow services, and it may partner with mortgage providers to facilitate the buying process for end consumers. These partnerships can provide additional revenue streams and enhance the overall transaction experience for customers.

Opendoor Technologies Key Performance Indicators (KPIs)

Any

Homes Purchased and Sold

Homes Purchased and Sold
Tracks the number of homes Opendoor buys and sells, reflecting its market activity, growth trajectory, and ability to scale its business model in the real estate market.

Chart InsightsOpendoor Technologies is navigating a challenging housing market with high mortgage rates affecting buyer demand. Despite this, the company increased home acquisitions by 4% year-over-year in Q1 2025 and improved cost efficiencies, reducing its adjusted EBITDA loss. The strategic shift towards agent partnerships aims to enhance conversion rates and generate asset-light revenue. However, older inventory is impacting margins, and a revenue decline is expected in the latter half of 2025 due to slowed acquisitions. The focus remains on maintaining pricing discipline and achieving positive EBITDA in Q2 2025.

Data provided by:

Main Street Data

Opendoor Technologies Financial Statement Overview

Summary

Opendoor Technologies is facing significant financial challenges. The income statement reflects a drastic revenue drop, consistent negative EBIT, and net margins. The balance sheet is strained with high leverage, and cash flow is critically negative. These factors indicate a risky financial position.

Income Statement

Neutral

Opendoor Technologies has seen a significant decline in revenue from $15.57 billion in 2022 to $4.94 billion TTM, indicating a challenging market environment. The company continues to report negative EBIT and net margins, reflecting ongoing profitability issues. The gross profit margin stands at 8.5% TTM, showing some ability to cover costs, yet not enough to achieve profitability.

Balance Sheet

Negative

The company's debt-to-equity ratio remains high, indicative of significant leverage and financial risk. With total debt at $2.53 billion against stockholders' equity of $801 million TTM, the balance sheet shows a weak equity position. The equity ratio is 23.5%, suggesting limited asset financing through equity, which could pose risk in turbulent market conditions.

Cash Flow

Negative

Opendoor's cash flow situation is concerning, with a significant negative operating cash flow of $1.06 billion TTM and a deteriorating free cash flow position. The free cash flow to net income ratio is negative, highlighting struggles in generating cash from operations, which could affect liquidity and operational flexibility.

Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
6.95B	15.57B	8.02B	2.58B	4.74B
	Gross Profit
487.00M	667.00M	730.00M	219.80M	301.00M
	EBIT
-362.00M	-854.00M	-568.00M	-185.87M	-248.00M
	EBITDA
-290.00M	-761.00M	-463.00M	-122.00M	-190.00M
	Net Income Common Stockholders
-275.00M	-1.35B	-662.00M	-286.76M	-464.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.07B	1.28B	2.21B	1.46B	448.66M
	Total Assets
3.57B	6.61B	9.51B	2.18B	2.23B
	Total Debt
2.53B	5.40B	7.11B	549.13M	1.50B
	Net Debt
1.53B	4.26B	5.38B	-863.53M	1.09B
	Total Liabilities
2.60B	5.52B	7.26B	575.58M	2.96B
	Stockholders Equity
967.00M	1.09B	2.25B	1.60B	-733.10M
Cash Flow		Free Cash Flow
2.31B	693.00M	-5.83B	664.57M	-300.00M
	Operating Cash Flow
2.34B	730.00M	-5.79B	681.91M	-272.00M
	Investing Cash Flow
44.00M	234.00M	-476.00M	-21.87M	-95.00M
	Financing Cash Flow
-2.64B	-1.75B	7.34B	160.66M	646.00M

Opendoor Technologies Technical Analysis

Technical Analysis Sentiment

Negative

Last Price0.87

Price Trends

50DMA

1.02

Negative

100DMA

1.27

Negative

200DMA

1.62

Negative

Market Momentum

MACD

-0.08

Negative

RSI

35.02

Neutral

STOCH

54.23

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPEN, the sentiment is Negative. The current price of 0.87 is above the 20-day moving average (MA) of 0.84, below the 50-day MA of 1.02, and below the 200-day MA of 1.62, indicating a bearish trend. The MACD of -0.08 indicates Negative momentum. The RSI at 35.02 is Neutral, neither overbought nor oversold. The STOCH value of 54.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPEN.

Opendoor Technologies Risk Analysis

Opendoor Technologies disclosed 67 risk factors in its most recent earnings report. Opendoor Technologies reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Opendoor Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REAX	70 Outperform	$862.92M	―	-52.95%	―	83.50%	8.45%
EXPI	67 Neutral	$1.32B	―	-6.44%	2.68%	6.69%	-137.52%
RMAX	61 Neutral	$315.15M	18.25	2.01%	―	-4.61%	―
Sector *	60 Neutral	$2.81B	11.31	0.21%	8508.38%	6.19%	-15.39%
RDFN	54 Neutral	$1.16B	―	199.35%	―	5.11%	-29.67%
OPAD	48 Neutral	$26.22M	―	-97.62%	―	-19.80%	21.22%
OPEN	44 Neutral	$542.74M	―	-47.67%	―	2.36%	-23.60%

* Real Estate Sector Average

Performance Comparison

OPEN

Opendoor Technologies

0.67

-1.65

-71.12%

RMAX

Re/Max Holdings

7.87

-1.70

-17.76%

EXPI

eXp World Holdings

7.46

-4.75

-38.90%

RDFN

Redfin

8.72

1.58

22.13%

OPAD

Offerpad Solutions

1.05

-6.08

-85.27%

REAX

Real Brokerage

4.14

-0.62

-13.03%

Opendoor Technologies Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 24.29%|

Next Earnings Date:Jul 31, 2025

Earnings Call Sentiment Neutral

Opendoor's earnings call reflects a challenging macroeconomic environment with high mortgage rates impacting buyer demand. Despite these challenges, the company has made significant strides in cost efficiency and is expanding its agent partnerships, which could drive future asset-light revenue. The outlook for Q2 is positive, with expectations of returning to positive EBITDA. However, the company remains cautious due to ongoing market uncertainties, resulting in a balanced sentiment.

Q1-2025 Updates

Positive Updates

Revenue and Home Acquisitions

Opendoor delivered $1.2 billion of revenue in Q1 2025, roughly in line with Q1 2024, and acquired 3,609 homes, up 4% from the same quarter last year.

Cost Efficiency Improvements

Fixed operating expenses in Q1 were $19 million lower, or down 33% versus a year ago, contributing to an adjusted EBITDA loss reduction from $50 million in Q1 2024 to $30 million in Q1 2025.

Expansion of Agent Partnerships

Opendoor is piloting an agent partnership program in 11 markets, encouraging early indicators of improved conversion and asset-light revenue opportunities.

Positive Outlook for Q2 2025

Revenue is expected to be between $1.45 and $1.525 billion, with a return to positive quarterly adjusted EBITDA for the first time in three years.

Negative Updates

Challenging Housing Market Conditions

High mortgage rates continue to suppress buyer demand, with clearance rates down nearly 25% year-over-year and delistings up over 30%.

Older Inventory Impacting Contribution Margins

Older inventory with lower margins is a larger share of homes sold in Q2, negatively affecting contribution margins.

Reduction in Marketing Spend

Marketing spend in Q2 is expected to be meaningfully lower than in Q1, reflecting a cautious approach due to the uncertain housing market.

Expected Revenue Decline in Second Half of 2025

Opendoor anticipates a revenue decline in Q3 and Q4 due to slowed acquisition pace and current market dynamics.

Company Guidance

During the Opendoor Technologies First Quarter 2025 earnings call, the company provided guidance on several key financial metrics and strategic initiatives. Opendoor reported $1.2 billion in revenue, with 2,946 homes sold and 3,609 homes acquired, marking a 4% increase in acquisitions year-over-year. The company achieved a contribution profit of $54 million, reflecting a contribution margin of 4.7%, and reduced its adjusted EBITDA loss to $30 million, down from $50 million in Q1 2024. Opendoor ended the quarter with $559 million in unrestricted cash and $2.4 billion in net inventory. For Q2 2025, Opendoor expects revenue between $1.45 and $1.525 billion, a contribution profit between $65 and $75 million, and adjusted EBITDA between $10 and $20 million, indicating a return to positive adjusted EBITDA quarterly for the first time in three years. The company also highlighted its strategic shift towards enhancing agent partnerships to drive conversion and asset-light revenue, with a focus on cost efficiencies and maintaining pricing discipline amid a challenging housing market environment.

Opendoor Technologies Corporate Events

Private Placements and Financing

Opendoor Technologies Issues New Convertible Senior Notes

Neutral

May 9, 2025

On May 8, 2025, Opendoor Technologies Inc. entered into agreements with holders of its 0.25% Convertible Senior Notes due 2026 and new investors to issue $325 million of 7.000% Convertible Senior Notes due 2030. This transaction involves exchanging $245.8 million of 2026 Notes for 2030 Notes and issuing $79.2 million of 2030 Notes for cash. The 2030 Notes, which mature on May 15, 2030, are senior, unsecured obligations with a 7.000% interest rate. The company expects to use the net proceeds from the cash issuance for general corporate purposes. J. Wood Capital Advisors LLC plans to purchase shares and notes, potentially impacting the market price of the company’s stock and notes.

Spark’s Take on OPEN Stock

According to Spark, TipRanks’ AI Analyst, OPEN is a Neutral.

To see Spark’s full report on OPEN stock, click here.

Business Operations and StrategyFinancial Disclosures

Opendoor Technologies Reports Q1 2025 Financial Results

Positive

May 6, 2025

On May 6, 2025, Opendoor Technologies reported its first-quarter financial results for the period ending March 31, 2025, highlighting a revenue of $1.2 billion and a net loss of $85 million. The company showed improvement in adjusted EBITDA and reduced net losses, reflecting disciplined execution towards profitability. Despite a slight decline in revenue and homes sold compared to the previous year, Opendoor increased its inventory and home purchases, indicating strategic investments in its platform and future growth. The company also provided a positive outlook for the second quarter of 2025, projecting increased revenue and improved financial metrics.

Spark’s Take on OPEN Stock

According to Spark, TipRanks’ AI Analyst, OPEN is a Neutral.

To see Spark’s full report on OPEN stock, click here.

Business Operations and StrategyFinancial Disclosures

Opendoor Technologies Reports 2024 Financial Results

Neutral

Feb 27, 2025

Opendoor Technologies reported its financial results for the fourth quarter and full year of 2024 on February 27, 2025. The company made significant strides in reducing adjusted net losses and achieved year-over-year revenue growth despite a challenging housing market. Key highlights include a 26% decrease in annual revenue to $5.2 billion and a net loss of $392 million for 2024. The company also reported improvements in contribution profit and adjusted EBITDA. Entering 2025, Opendoor aims to achieve sustained profitability by optimizing its operations and cost structure, while continuing to strengthen its position as a leading digital platform for home sellers.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.