Opendoor Technologies (NASDAQ: OPEN) finished Thursday at $6.56 (-9.27%), then slid further in after‑hours trading to about $5.95 following its third‑quarter print and a new “shareholder‑first” special dividend of tradable warrants. 1
The Big Picture
Opendoor’s new CEO Kaz Nejatian framed the company as a software‑ and AI‑driven business, unveiling an “Opendoor 2.0” turnaround centered on faster pricing, resale velocity, and strict cost control. Management set a target to reach breakeven Adjusted Net Income by the end of 2026 (on a 12‑month go‑forward basis). 2
Alongside results, Opendoor announced a special dividend of tradable warrants intended to align shareholder upside with management incentives — a notable, highly unusual move for a public company in real estate tech. 3
How the Stock Traded Today
- Close (Nov 6): $6.56, -9.27% day‑over‑day (range: $6.52–$7.37).
- After‑hours (4:48 p.m. ET): ~$5.95 (~‑9% from the close) as investors digested the EPS miss and cautious near‑term margin outlook. 1
Q3 2025: What Opendoor Reported
GAAP results (quarter ended Sept. 30, 2025)
- Revenue:$915M (vs. $1.377B a year ago).
- Gross Profit:$66M; Gross Margin 7.2%.
- Net Loss:$(90)M.
- Homes sold:2,568; Homes purchased:1,169.
- Inventory (end of period):3,139 homes / $1.053B; 51% of homes on market >120 days. 2
Non‑GAAP highlights
- Contribution Profit:$20M (2.2% margin).
- Adjusted EBITDA:$(33)M (‑3.6% margin).
- Adjusted Net Loss:$(61)M. 2
Street scorecard (consensus vs. actual)
- GAAP EPS:‑$0.12 vs. ‑$0.08 consensus (miss).
- Revenue:$915M vs. ~$850M consensus (beat). 4
Q4 2025 Guide & 2026 Goal
Management withdrew the traditional quarterly guidance format while rebuilding the business, but provided “guideposts”:
- 2026 goal:Breakeven Adjusted Net Income by year‑end (12‑month go‑forward basis).
- Q4 2025:
- Acquisitions: expected to increase ≥35% vs. Q3 as new products and pricing changes take hold.
- Revenue:down ~35% QoQ, reflecting low inventory after Q3’s reduced acquisition volumes.
- Contribution Margin: expected below Q3 as the company clears older inventory.
- Adjusted EBITDA:loss in the high‑$40M to mid‑$50M range. 2
Why this matters for the stock: The path to profitability is now explicitly tied to scaling acquisitions, improving unit economics & resale speed, and operating leverage. Near‑term margin pressure and lighter Q4 revenue imply a slower financial recovery than some traders hoped, which helps explain the after‑hours sell‑off. 2
New Today: “Shareholder‑First” Dividend of Tradable Warrants
Opendoor announced it will distribute tradable warrants to common shareholders:
- Record date:Nov 18, 2025 (5:00 p.m. New York time).
- Distribution date:on or about Nov 21, 2025.
- Ratio:1 warrant of each series (K, A, Z) for every 30 shares owned (rounded down).
- Exercise prices:$9 (K), $13 (A), $17 (Z).
- Listing (subject to approval):OPENW (K), OPENL (A), OPENZ (Z) on Nasdaq.
- Expiration:Nov 20, 2026, with early‑expiration provisions if the stock trades at or above specified trigger prices for 20 of 30 trading days.
- Dilution:No immediate dilution at issuance; dilution can occur if/when warrants are exercised, while cash exercise adds capital to the balance sheet. 3
Takeaway: The structure is designed to mirror management’s performance‑based upside and give shareholders tradeable optionality without near‑term dilution — a notable experiment in investor alignment for a public company. 3
Strategy Update: “Opendoor 2.0” and the AI Push
In written remarks, CEO Kaz Nejatian said the company has “made a decisive break from the past,” including a return to the office, eliminating reliance on consultants, and launching over a dozen AI‑powered products/features to accelerate seller acquisition and resale velocity. The company will publicly track weekly progress on acquisitions and product launches. 2
Third‑party coverage echoed the AI‑company positioning and the profitability‑by‑2026 aim, noting the stock’s sharp after‑hours drop following the print. 5
Key Dates & What to Watch Next
- Earnings “Financial Open House” livestream & Q&A: The company shifted from a traditional call to a video livestream with open Q&A (via Robinhood, X, YouTube & IR site). An archived replay is available on the IR site after the event. 6
- Warrant dividend mechanics: Confirm record date (Nov 18) and eligibility with your broker, especially if shares are on loan (eligibility depends on being holder of record). 3
- Q4 cadence: Watch weekly acquisition trends and whether contribution margins lift after the October trough. 2
Bottom Line for 6 Nov 2025
Opendoor delivered a mixed quarter — revenue ahead of expectations, EPS below — coupled with conservative near‑term margin commentary, an ambitious 2026 profitability target, and a first‑of‑its‑kind tradable‑warrant dividend. The stock’s post‑close drop suggests investors want clearer proof that the AI‑and‑software pivot can scale acquisitions and lift unit economics quickly enough to hit the company’s 2026 goal. 4
Disclosure: This article is for informational purposes only and is not investment advice. All figures and timelines are those disclosed by the company or cited sources as of November 6, 2025.
