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Opendoor Shares Fall as Q3 Tops Sales Estimates but Outlook Signals Steep Q4 Slide

New CEO Kaz Nejatian outlines a software- and AI-first pivot that prioritizes product over pricing spreads.

Overview

  • Revenue rose to $915 million, beating estimates, while a loss of $0.08 per share missed expectations by a penny.
  • Adjusted EBITDA was -$33 million, weaker than analysts’ forecasts and below the company’s prior guidance range.
  • Management warned that fourth-quarter revenue will decline about 35% quarter over quarter and forecast an adjusted EBITDA loss in the high $40 millions to mid $50 millions.
  • Home volumes continued to contract year over year, with 1,169 homes purchased and 2,568 sold in the quarter.
  • Shares fell roughly 10% in after-hours trading as executives emphasized a refocus on software and AI, including a return to office, reduced use of consultants, and more than a dozen new AI-driven features.