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Opendoor Posts Q3 Revenue Beat but Wider Loss, Guides to Deeper Q4 Red Ink as New CEO Pivots to AI

Management moved to bolster investors with a tradable-warrant dividend set for shareholders of record on Nov. 18.

Overview

  • Revenue came in at $915 million, topping estimates, while adjusted EBITDA was a larger-than-expected loss of $33 million and EPS was a loss of eight cents.
  • Transaction volume contracted sharply year over year, with 1,169 homes purchased and 2,568 sold versus 3,504 and 3,615 a year earlier.
  • Fourth-quarter guidance calls for revenue to fall about 35% quarter over quarter and an adjusted EBITDA loss in the high $40 millions to mid $50 millions.
  • CEO Kaz Nejatian said he is refounding the company as a software and AI business, citing a return to the office, reduced reliance on consultants, and more than a dozen new AI features.
  • Shares fell in after-hours trading as the company announced one tradable warrant per 30 shares with $9, $13, and $17 strikes expiring Nov. 20, 2026, and reiterated a goal to reach adjusted net income breakeven by the end of 2026.