These declines came as executives promised an increase in the speed at which iBuyer home transactions occurred. However, during the call, executives noted that Opendoor increased purchases by 46% in the fourth quarter compared to the third quarter. Additionally, they noted that iBuyer properties also sold quickly, with listing-to-sale timelines decreasing by 23%. Last week alone, Nejatian said Opendoor had purchased 537 homes, continuing the momentum it cultivated at the end of 2025.
“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 resale data – will deliver the strongest contribution margins of any October cohort in the company’s history. And these homes are selling at more than twice the rate of the October 2024 cohort, with more than 50% already sold or under a resale contract. While our newer cohorts are still in the early stages of their sell-through, we like what we’re seeing, and our contribution margin guide for the first quarter of 2026 reflects our confidence in the trajectory for the portfolio.”
The future of iBuying
As Opendoor looks to the future, Nejatian has pledged that the iBuyer will achieve breakeven adjusted net income on a 12-month go-forward basis by the end of 2026, and he is confident the company will achieve this goal. To help achieve this feat, executives said the company is focusing on AI and new product launches, including a mortgage product set to hit the market next week.
Also adding to Nejatian’s optimism is the rapid expansion Opendoor undertook in the fourth quarter of 2025, expanding both its geographic coverage and its “buy box” so that the product is now available to “nearly every homeowner” in the contiguous United States.
“It took from 2015 to 2025 for Opendoor to become available as an option for about 1/3 of homes in the U.S., over 10 years. Opendoor 2.0 nearly tripled that in about 10 weeks,” he said.
While he wants to lead Opendoor back to profitability to improve margins, Nejatian said he is not focused on cost cutting.
“We focused on improving the product and took pride in our code, and the costs started to disappear naturally,” he said.
As a result of these efforts, Nejatian says the “technology debt” and “organizational debt” Opendoor carried are improving.
“As Opendoor entered 2025, our annual hosting run rate cost was $12 million per year,” he said. “As of 2025, Opendoor 2.0’s cost and hosting infrastructure will be less than $5 million per year. Not only have we significantly reduced the cost of delivering our products to our customers. We’ve also made the product better.”
It seems Nejatian isn’t the only one optimistic about Opendoor’s future. Despite the company’s astronomical net loss, the company’s shares are rising from $4.60 per share to $5.30 per share in after-hours trading following the earnings announcement, suggesting that Opendoor could be the meme stock’s next success story.
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