After a weak 2025 that included a major C-suite overhaul and averting an IPO on the Nasdaq, Opendoor said it is on the road to recovery – despite ten-digit losses in the fourth quarter.
The turnover of the controversial iBuyer fell in the fourth quarter 47 percent year after year until $736 millionwhile net losses increased 896 percent until almost $1.1 billion. Turnover decreased throughout the year 17.9 percent year after year until $4.37 billion. The net loss increased from $392 million in 2024 until 1.3 billion by 2025.
The company significantly reduced its purchases, which fell 2,951 homes in the fourth quarter of 2024 to 1,706 in the fourth quarter of 2025. The same trend continued throughout the year, with purchases declining 14,684 homes in 2024 until 8,241 by 2025. The iBuyer also sold fewer homes in the fourth quarter (-42.6 percent Unpleasant 1,978 homes) and fiscal year 2025 (-15.7 percent Unpleasant 11,791 homes).
Kaz Nejatian
During an earnings call Thursday afternoon, CEO Kaz Nejatian acknowledged Opendoor’s challenges but quickly shifted focus to his team’s growth strategy, which focuses on increasing transaction speed, transitioning to direct-to-consumer relationships and expanding iBuyer’s product suite.
“Last quarter, we outlined a four-step plan to transform Opendoor: achieve breakeven adjusted net income on a twelve-month basis by the end of 2026, drive positive unit economics while increasing transactions. This quarter shows we are executing on that plan,” Nejatian said in a written statement. “These results reflect structural improvements in the way we operate with more accurate pricing, faster inventory turns and disciplined selection.”
Nejatian focused on quarterly earnings from the third to fourth quarters as a litmus test for what he called “Opendoor 2.0,” with the iBuyer increasing purchases 46 percent quarter-on-quarter. The iBuyer also sold faster, with sales list timelines a decrease of 23 percent. The iBuyer has been able to maintain that momentum, the CEO said, with Opendoor purchases 537 homes last week.
“The evidence of progress is clear,” he said. “Most importantly, our October 2025 acquisition cohort – both the first full month under the Opendoor 2.0 model and the first with mature sell-through data – will deliver the strongest contribution margins of any October cohort in the company’s history.”
“And these homes are selling more than twice as fast as the October 2024 cohort, at more than 50 percent already sold or under resale contract,” Nejatian added. “While our newer cohorts are still in the early stages of their sell-through, we are pleased with what we are seeing, and our contribution margin guide for the first quarter of 2026 reflects our confidence in the trajectory for the portfolio.”
In addition to improving transaction margins, Nejatian says artificial intelligence and product development are key to Opendoor’s path to profitability, with the company rolling out a mortgage product next week. The CEO said his team built the product in 10 weeks, despite estimates that it could take a year or more.
“Opendoor is a different type of company,” he said in the earnings call. “It’s a company where everyone – everyone – learns to think like an engineer… Opendoor tries to build software that’s worth it [consumer] to trust.”
Nejatian urged investors and consumers throughout the call Opendoor’s accountability trackerincluding product and leadership updates and progress on the CEO’s three key performance indicators, including increasing purchases and margins.
“The goal is simple: start generating cash and never be forced to raise equity again,” he said.
Despite annual revenue and transaction declines, Opendoor’s quarterly profits seemed enough to give investors wind in their sails. When markets closed Thursday afternoon, shares in Opendoor were trading around $4.60.
However, after Opendoor released its earnings report, shares rose to around $5.30 in after-hours trading.
These prices represent a significant turnaround from a year ago, when shares were approaching the $1 threshold that a company can take off the market. Opendoor’s stock turnaround began last summer thanks to interest from retail investors. Some called the company the latest meme stock, but the shares have retained much of the value they picked up during last year’s rally.
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