TEMPE, Arizona, May 10, 2026, 13:02 MST
Opendoor Technologies Inc. is projecting its adjusted EBITDA for the second quarter will hover around break-even, putting fresh pressure on its turnaround efforts. The online home-selling company just reported a steeper first-quarter loss, with revenue also coming in lower.
Timing is a factor here. Opendoor is working to recover transaction volume in a housing market that’s still dealing with high mortgage rates, tough affordability and sluggish existing-home sales—a tough setup for companies that buy and flip homes. In its latest quarterly filing, the company pointed out that U.S. existing home sales are hovering around a 30-year low, with the gap between what buyers want to pay and what sellers want to get still hanging over the market.
Investors are still waiting for answers: can Opendoor grow its home listings without slashing margins or tying up additional cash in inventory? Shares changed hands at $5.01, off 31 cents from the prior close, the last trade coming after Friday’s session.
Opendoor Technologies Inc. posted quarterly revenue of $720 million for the period ended March 31, down from $1.15 billion a year ago. The net loss came in deeper—$173 million, compared with $85 million previously. Homes sold slipped to 1,921, versus 2,946 last year.
The company flagged stronger operating numbers. Gross margin improved to 10.0%, up from 8.6%. Aged inventory — properties listed longer than 120 days — dropped to 10%. Opendoor locked in over 5,000 acquisition contracts, marking its best contract quarter since 2022.
Opendoor Technologies Inc. reported an adjusted EBITDA loss of $31 million, excluding interest, taxes, depreciation, amortization and assorted other items. Contribution margin—a look at profit from home resales after direct costs but before fixed overhead—came in at 4.4%.
Opendoor’s resale margin is at its strongest point in almost two years, Chief Executive Kaz Nejatian said, with acquisition contracts jumping twofold over the last quarter. “The machine is working,” Nejatian said in the company’s earnings release. Opendoor Technologies Inc.
Chief Financial Officer Christy Schwartz told investors the company is looking for second-quarter revenue to climb roughly 25% from the first quarter, with adjusted EBITDA expected to land around breakeven—give or take a few million. Schwartz added that Opendoor anticipates achieving adjusted EBITDA profitability on a rolling 12-month basis beginning in the second quarter.
The company’s push toward direct seller offerings and automation has grown more pronounced. In the first quarter, “Cash Now, More Later” made up over a third of new acquisition contracts, per the earnings transcript. Opendoor Mortgage, meanwhile, launched in Colorado. The Motley Fool
Opendoor sits close to big names in online real estate. The company’s latest quarterly report points to partnerships with Zillow and Redfin—both act as major lead pipelines, routing sellers to Opendoor’s offer-request tool. Its comeback now relies not just on its own pricing algorithms, but also on incoming visitors from these higher-profile platforms.
Still, there’s no guarantee the pivot will stick. Opendoor’s filing spells out the risks: the business eats up working capital and relies on financing its inventory. Should mortgage rates climb, or if buyers retreat—or if home prices slide—the company might be forced to lower listing prices, mark down values, or tap the brakes on acquisitions. That would put pressure on margin goals.
Management has some breathing space on the balance sheet. Opendoor wrapped up the quarter holding $999 million in cash and cash equivalents, plus $1.14 billion in real estate inventory. Total liabilities: $1.40 billion.
Second-quarter results should offer the next real test, as deals inked late in Q1 are expected to start closing and show up in resale revenue. Schwartz didn’t mince words on the call, saying Opendoor still has “a lot left to prove.” The Motley Fool
