Opendoor (OPEN) plunges after Q3 miss as new CEO pivots to “AI company,” unveils tradable-warrant dividend — Nov 7, 2025

Opendoor Technologies Inc. (NASDAQ: OPEN) shares tumbled on Friday after the home‑selling platform posted a wider third‑quarter loss, guided to softer near‑term margins, and rolled out an unusual “shareholder‑first” dividend of tradable warrants. New CEO Kaz Nejatian—in his first earnings update—framed the company’s turnaround as a software- and AI‑led reboot aiming for break‑even Adjusted Net Income by the end of 2026. 1

Stock reaction: steep selloff into the open

OPEN fell roughly 20% in pre‑market trading as investors digested the results and new guideposts; the stock appeared among Friday’s biggest movers lists and live market blogs. Barron’s+1
MarketWatch separately highlighted Nejatian’s AI push even as shares kept sliding following the print. 2

By the numbers: Q3 2025 (quarter ended Sept. 30)

• Revenue:$915 million (vs. $1.377 billion a year ago)
• Gross profit / margin:$66 million, 7.2% (vs. $105 million, 7.6%)
• Net loss:$90 million (vs. $78 million)
• Homes sold:2,568; Homes purchased:1,169
• Ending inventory:3,139 homes (valued at $1.053 billion)
  All figures from Opendoor’s Q3 release. 1

What the company is guiding for

Opendoor stopped issuing traditional quarterly guidance while it rebuilds, but it did share “guideposts” for Q4 2025:

• Acquisitions expected to rise at least 35% q/q.
• Revenue to fall ~35% q/q due to low inventory carried into Q4.
• Contribution margin to be below Q3 as older inventory is cleared.
• Adjusted EBITDA loss projected in the high‑$40M to mid‑$50M range. 1

Market coverage echoed that the wider‑than‑expected EPS loss and these near‑term pressures weighed on sentiment. 3

“Refounding” Opendoor around software and AI

Nejatian said the company is “refounding Opendoor as a software and AI company,” pledging faster product velocity, better pricing and resale speed, and tougher cost discipline. He set a public goal: break‑even Adjusted Net Income on a 12‑month, go‑forward basis by end‑2026. 1

MarketWatch summarized the pivot and Friday’s price action, noting that despite today’s drop, OPEN remains up triple‑digits year‑to‑date. 2

The surprise twist: a tradable‑warrant dividend for shareholders

Alongside earnings, Opendoor announced a one‑off “shareholder‑first dividend” consisting of three series of warrants (Series K, A, Z) for every 30 shares held as of 5:00 p.m. ET on Nov. 18, 2025 (record date). The distribution date is expected to be around Nov. 21, 2025. Intended Nasdaq tickers: OPENW (K), OPENL (A), OPENZ (Z). Exercise prices are $9, $13, and $17, respectively, with expiration on Nov. 20, 2026, subject to an early‑expiration price condition. Opendoor emphasized the program is not dilutive at issuance and could bring in cash if exercised. 4

How it works (quick take):

• Eligibility: holders of record on Nov. 18, 2025.
• Ratio:1 K + 1 A + 1 Z warrant per 30 shares (rounded down).
• Tradability: expected to be listed on Nasdaq; holders can sell or exercise.
  These mechanics come directly from the company’s press release and related SEC filing. 4

Why the stock is down today

1. Earnings and outlook: Revenue and margin pressure, plus a projected ~35% q/q revenue decline and weaker near‑term margins, overshadow the longer‑term breakeven target. 1
2. Expectation reset: Coverage flagged a wider EPS miss versus consensus, compounding concerns as the company clears older inventory. 3
3. Volatility around the pivot: Friday roundups put OPEN among the day’s sharpest movers as investors reassessed the AI‑led turnaround, with pre‑market losses near 20%. 5

What to watch next

• Nov. 18 (Record date): Ensure shares are held in your name (not on loan) if you intend to receive warrants; brokers’ practices can differ. 4
• Around Nov. 21 (Distribution date): Look for OPENW/OPENL/OPENZ to begin trading, subject to Nasdaq approval. 6
• Operating cadence: Management will publish weekly acquisition and product‑launch metrics to “accountable.opendoor.com” as part of its accountability push. 1
• Q4 execution: Watch if acquisitions re‑accelerate and if resale speed improves, as both drive unit economics. 1

Key takeaways

• OpenDoor’s Q3 showed lower volume and margins, a $90M net loss, and a software/AI pivot under new leadership. 1
• A first‑of‑its‑kind tradable‑warrant dividend aims to align shareholder and management upside without immediate dilution. 4
• Shares slid hard pre‑market as investors priced in near‑term pain, even with a 2026 breakeven target on the table. 5

Editor’s note: This article is for informational purposes only and is not investment advice. Always do your own research.