SAN FRANCISCO, May 7, 2026, 14:01 PT
- Opendoor’s revenue beat forecasts, though sales plunged compared to the same period last year.
- Faster home resales and a tidier inventory, according to CEO Kaz Nejatian, were cited by the company.
- Mortgage rates are still weighing on the housing market, leaving the rebound vulnerable.
Opendoor Technologies surprised Wall Street with stronger first-quarter revenue, pushing the company to predict adjusted EBITDA breakeven for Q2—a milestone for its turnaround effort. Still, the headlines weren’t all positive: sales dropped 38% year over year, and its GAAP net loss deepened to $173 million.
This report lands at a critical moment for Opendoor, which is under pressure to show its iBuying model—quick online home purchases, rapid resales—can survive in a sluggish housing market. Freddie Mac pegged the average 30-year fixed mortgage at 6.37% this week, a number high enough to put buyers on edge and make each property sale count.
Sentiment was cautious even before results hit. Simply Wall St flagged high mortgage rates, pricey homes and soft demand as trouble spots for Opendoor. Stocktwits, for its part, noted retail sentiment had “neutralized” in the lead-up to the release. Simply Wall St
Opendoor reported revenue of $720 million, topping the $664.5 million figure analysts had expected, according to StockStory. Still, that’s a drop from $1.15 billion in the year-ago period. The company posted a GAAP loss of 18 cents per share for the quarter, compared with a 12-cent loss a year earlier.
Opendoor CEO Nejatian says the company has shifted from “a claim to a track record” when it comes to profitability, describing operations as “the machine is working.” He flagged the fourth quarter of 2025 and January 2026 cash acquisition cohorts, calling them some of the best the company has seen outside the COVID-era surge. GlobeNewswire
Operational figures landed all over the map, but bulls got the progress they were hunting for. The number of homes purchased climbed 45% over the previous quarter. Acquisition contracts broke past 5,000 during Q1. And only 10% of homes stuck around on the market longer than 120 days—down sharply from 33% in Q4.
Opendoor is looking for about a 25% bump in second-quarter revenue over the first, landing near $900 million. Adjusted EBITDA should hover close to breakeven, the company said—earnings before interest, taxes, depreciation and amortization, minus certain items. Contribution margin? Management sees it landing somewhere in the middle of that 5% to 7% target range for homes sold after direct costs.
Uncertainty lingers around that guidance. Wall Street had expected second-quarter sales closer to $1.13 billion, Sherwood reported, so the revenue outlook might not be enough to put concerns to rest—even if profits pick up.
The balance sheet is still a key part of Opendoor’s narrative—after all, this is a firm that actually buys homes, not just lists or brokers them. As of quarter’s end, Opendoor was holding $1.14 billion in real estate inventory, with another $999 million sitting in cash and equivalents. That stands out among digital real estate players like Zillow Group and Compass, which occupy the comparison set.
Here’s the simple risk: if demand drops off again, mortgage rates climb, or home prices slide more quickly than Opendoor anticipates, the company might get stuck with houses that are tougher to unload for the margins it wants. Opendoor has flagged plenty of variables—interest rates, inflation, shifts in home prices, housing supply, and the availability of financing—that could all hit its numbers.
Opendoor shares ticked up around 2% to $5.42 in after-hours action, according to Benzinga, though the stock remains off about 8% for the year. Initial response was muted.
