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. [2]
MarketWatch separately highlighted Nejatian’s AI push even as shares kept sliding following the print. [3]
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. [4]
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. [5]
Market coverage echoed that the wider‑than‑expected EPS loss and these near‑term pressures weighed on sentiment. [6]
“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. [7]
MarketWatch summarized the pivot and Friday’s price action, noting that despite today’s drop, OPEN remains up triple‑digits year‑to‑date. [8]
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. [9]
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. [10]
Why the stock is down today
- 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. [11]
- Expectation reset: Coverage flagged a wider EPS miss versus consensus, compounding concerns as the company clears older inventory. [12]
- 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%. [13]
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. [14]
- Around Nov. 21 (Distribution date): Look for OPENW/OPENL/OPENZ to begin trading, subject to Nasdaq approval. [15]
- Operating cadence: Management will publish weekly acquisition and product‑launch metrics to “accountable.opendoor.com” as part of its accountability push. [16]
- Q4 execution: Watch if acquisitions re‑accelerate and if resale speed improves, as both drive unit economics. [17]
Key takeaways
- OpenDoor’s Q3 showed lower volume and margins, a $90M net loss, and a software/AI pivot under new leadership. [18]
- A first‑of‑its‑kind tradable‑warrant dividend aims to align shareholder and management upside without immediate dilution. [19]
- Shares slid hard pre‑market as investors priced in near‑term pain, even with a 2026 breakeven target on the table. [20]
Editor’s note: This article is for informational purposes only and is not investment advice. Always do your own research.
References
1. www.globenewswire.com, 2. www.barrons.com, 3. www.marketwatch.com, 4. www.globenewswire.com, 5. www.globenewswire.com, 6. www.investing.com, 7. www.globenewswire.com, 8. www.marketwatch.com, 9. www.globenewswire.com, 10. www.globenewswire.com, 11. www.globenewswire.com, 12. www.investing.com, 13. www.barrons.com, 14. www.globenewswire.com, 15. www.sec.gov, 16. www.globenewswire.com, 17. www.globenewswire.com, 18. www.globenewswire.com, 19. www.globenewswire.com, 20. www.barrons.com
