Overview
- Q3 revenue came in at $915 million, topping estimates, but adjusted EBITDA was a loss of about $33 million and GAAP EPS missed at negative $0.12.
- Management guided to a roughly 35% sequential revenue decline in Q4 and an adjusted EBITDA loss in the high $40 millions to mid $50 millions.
- New CEO Kaz Nejatian said he is refounding the company as a software and AI business, returning staff to the office, cutting consultants, and launching more than a dozen AI features.
- Operational volume deteriorated year over year, with 1,169 homes purchased and 2,568 sold, though weekly home-buying contracts increased from 120 at his start to about 230 by late October.
- The stock dropped roughly 20% in early trading after the report as the company set a breakeven goal for adjusted net income by the end of 2026 and outlined capital moves including refinancing converts and a tradable warrant dividend for shareholders of record Nov. 18.