Core Insights - Opendoor Technologies Inc. is leveraging artificial intelligence to enhance its profitability in the online real-estate market [1] Company Summary - The company has recently gained significant attention in the stock market, likened to meme stocks, indicating a surge in retail investor interest [1] - Opendoor aims to utilize AI technologies to streamline operations and improve decision-making processes, which is expected to contribute positively to its financial performance [1] Industry Summary - The online real-estate platform sector is witnessing a transformation driven by advancements in artificial intelligence, which is reshaping how companies operate and compete [1] - The integration of AI in real estate is anticipated to create new efficiencies and opportunities for growth within the industry [1]

Technology real estate company Opendoor (NASDAQ:OPEN) reported revenue ahead of Wall Streets expectations in Q3 CY2025, but sales fell by 33.6% year on year to $915 million. Its GAAP loss of $0.12 per share was 68.5% below analysts’ consensus estimates. Is now the time to buy Opendoor? Find out in our full research report. Opendoor (OPEN) Q3 CY2025 Highlights: Revenue: $915 million vs analyst estimates of $848.7 million (33.6% year-on-year decline, 7.8% beat) EPS (GAAP): -$0.12 vs analyst expectations ...

Core Points - Opendoor Technologies Inc. announced a special dividend distribution of warrants to common stockholders as of November 18, 2025, aiming to align management's performance with shareholder benefits [1][2][3] Warrant Distribution Details - The warrants will be distributed on or about November 21, 2025, without any action or payment required from stockholders [4] - Each shareholder will receive three series of warrants (Series K, A, and Z) at a ratio of one warrant per thirty shares held, rounded down [5][6] - The exercise prices for the warrants are set at $9.00 for Series K, $13.00 for Series A, and $17.00 for Series Z, with an expiration date of November 20, 2026 [5][12] Trading and Liquidity - The warrants are expected to be listed on Nasdaq under the tickers OPENW, OPENL, and OPENZ, allowing immediate trading or holding for potential upside [6][12] - The structure of the warrants is designed to be non-dilutive at issuance, protecting current shareholders while enabling upside participation [6][12] Alignment with Shareholders - The program is intended to rebuild trust and ensure that if management succeeds, shareholders benefit directly, emphasizing a structural alignment rather than a theoretical one [2][3] - An investor FAQ will be available to address questions regarding the mechanics of the warrant distribution [9]

Financial Performance - Revenue for Q3 2025 was $915 million, a decrease of 33.5% from $1,377 million in Q3 2024[154] - Gross profit for Q3 2025 was $66 million, down 37.1% from $105 million in Q3 2024, resulting in a gross margin of 7.2%[154] - Net loss for Q3 2025 was $90 million, compared to a net loss of $78 million in Q3 2024, reflecting a 15.4% increase in losses[154] - Contribution profit for Q3 2025 was $20 million, down 61.5% from $52 million in Q3 2024[154] - Adjusted Gross Profit for Q3 2025 was $64 million, down from $99 million in Q3 2024, resulting in an Adjusted Gross Margin of 7.0% compared to 7.2% in the prior year[184] - Contribution Profit for Q3 2025 was $20 million, a decrease from $52 million in Q3 2024, with a Contribution Margin of 2.2% compared to 3.8% in the previous year[184] - Adjusted Net Loss for Q3 2025 was $(61) million, an improvement from $(70) million in Q3 2024[191] - Adjusted EBITDA for Q3 2025 was $(33) million, compared to $(38) million in Q3 2024, resulting in an Adjusted EBITDA Margin of (3.6)%[191] - Revenue decreased by $462 million, or 34%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to lower sales volumes[212] - Gross profit decreased from $105 million to $66 million for the three months ended September 30, 2025, with gross margin decreasing from 7.6% to 7.2%[218] - Total operating expenses decreased by $38 million, or 22%, for the three months ended September 30, 2025, compared to the same period in 2024[210] - Net loss for the three months ended September 30, 2025, was $90 million, compared to a net loss of $78 million in the same period in 2024, representing an increase of 15%[210] - Revenue decreased by $434 million, or 11%, for the nine months ended September 30, 2025, compared to the same period in 2024[215] - The company reported net cash provided by operating activities of $979 million for the nine months ended September 30, 2025, compared to a cash used of $(515) million for the same period in 2024[268] - The company reported a net loss, net of non-cash items, of $66 million for the nine months ended September 30, 2025[268] Sales and Inventory - Homes sold decreased to 2,568 in Q3 2025, down 29% from 3,615 in Q3 2024[154] - Homes purchased dropped significantly to 1,169 in Q3 2025, a decline of 33.4% from 3,504 in Q3 2024[154] - The percentage of homes "on the market" for more than 120 days was 51% as of September 30, 2025, compared to 23% for the broader market[168] - The company sold 2,568 homes during the three months ended September 30, 2025, a decrease of 29% from 3,615 homes sold in the same period in 2024[213] - The company sold 9,813 homes during the nine months ended September 30, 2025, a decrease of 9% from 10,771 homes sold in the same period in 2024[215] Costs and Expenses - The company incurred $28 million in direct selling costs in Q3 2025, compared to $32 million in Q3 2024[184] - Total holding costs on sales for Q3 2025 were $16 million, including $4 million in current period costs and $12 million in prior period costs[191] - General and administrative expenses decreased by $32 million, or 23%, for the nine months ended September 30, 2025, compared to the same period in 2024[224] - Restructuring expenses increased by $1 million for the three months ended September 30, 2025, compared to the same period in 2024[227] - Interest expense increased by $2 million, or 2%, for the nine months ended September 30, 2025, compared to the same period in 2024[231] - Other income decreased by $22 million, or 44%, for the nine months ended September 30, 2025, compared to the same period in 2024[233] Market Expansion and Strategy - The company expanded its market footprint to 50 markets at the start of 2025, serving customers nationwide by Q3 2025[163] - Opendoor is focusing on enhancing its pricing engine and leveraging generative AI to improve platform efficiency and service offerings[171] - The company continues to assess home pricing, service fees, and renovation performance to improve overall business performance[180] Financial Position and Debt - As of September 30, 2025, the company had cash and cash equivalents of $962 million and restricted cash of $490 million, with an increase of $283 million compared to December 31, 2024[237] - The total outstanding balances on asset-backed debt were $1.3 billion, with an additional $460 million from convertible senior notes as of September 30, 2025[238] - The company issued $325 million aggregate principal amount of 7.00% senior convertible notes due 2030, resulting in gross cash proceeds of $75 million during the third quarter of 2025[240] - The company had undrawn borrowing capacity of $6.3 billion under non-recourse asset-backed debt facilities, of which $494 million was committed[238] - As of September 30, 2025, the company had total non-recourse asset-backed debt of $7.618 billion, with $374 million classified as current liabilities[254] - The company issued and sold 21,587,667 shares at a weighted average price of $9.26 per share under the ATM Agreement, resulting in total cash proceeds of approximately $198 million[242] - The company expects its cash and cash equivalents, along with future operational cash generation, to be sufficient for working capital and capital expenditure requirements for at least 12 months[246] - The company was in compliance with all financial covenants as of September 30, 2025[249] - As of September 30, 2025, the total outstanding balance of Convertible Senior Notes is $460 million, with $135 million for the 2026 Notes and $325 million for the 2030 Notes[261] - The company has contractual obligations totaling $2,185 million as of September 30, 2025, with $1,100 million due within one year[273] Economic Environment - The Federal Reserve increased the federal funds rate multiple times in 2022 and 2023 due to persistent inflationary pressures[284] - Despite rate reductions expected in 2024 and 2025, the federal funds rate remains elevated compared to historical levels[284] - Higher interest rates have led to increased mortgage rates, reducing home affordability[284] - Reduced home affordability may result in lower transaction volumes and extended holding periods for owned inventory[284] - Increased holding and financing costs for owned inventory are a consequence of elevated federal funds rates[284]

Exhibit 99.1 Q3 2025 Open House: Opendoor 2.0 Charts Path to Profitability Through Software and AI New CEO Kaz Nejatian commits to return the Company to profitability, accelerating transactions, rescaling while leveraging the existing cost structure and launching new AI-driven products to power the future of homeownership SAN FRANCISCO, California - November 6, 2025 - Opendoor Technologies Inc. (Nasdaq: OPEN), a leading e-commerce platform for residential real estate transactions, today reported financial r ...

"We are refounding Opendoor as a software and AI company." - @CanadaKaz🔥 https://t.co/txjmj66Mw9 ...

Core Insights - New CEO Kaz Nejatian aims to return Opendoor Technologies Inc. to profitability by accelerating transactions, optimizing the cost structure, and launching AI-driven products to enhance homeownership experiences [1][2][3] Financial Performance - For Q3 2025, Opendoor reported revenue of $915 million, a decrease from $1,377 million in Q3 2024, with a gross profit of $66 million and a gross margin of 7.2% [5][14] - The company experienced a net loss of $90 million in Q3 2025, compared to a net loss of $78 million in Q3 2024 [5][14] - Homes sold decreased to 2,568 in Q3 2025 from 3,615 in Q3 2024, while homes purchased dropped to 1,169 from 3,504 [5][14] Management Objectives - The company has set three key management objectives to achieve profitability: 1. Scale acquisitions to increase revenue from transactions and ancillary services [4] 2. Improve unit economics and resale velocity to enhance profitability per transaction [4] 3. Build operating leverage by scaling transactions faster than fixed costs [4] Financial Outlook - Opendoor anticipates a 35% increase in acquisitions in Q4 2025, driven by product launches and pricing engine changes [8] - Revenue is expected to decrease approximately 35% quarter-over-quarter due to low inventory levels from Q3 2025 [8] - The company aims to reach breakeven Adjusted Net Income by the end of 2026 [8] Non-GAAP Financial Highlights - Contribution profit for Q3 2025 was $20 million, with a contribution margin of 2.2% [5][14] - Adjusted EBITDA for Q3 2025 was a loss of $33 million, with an adjusted EBITDA margin of -3.6% [5][14] Inventory Metrics - As of September 30, 2025, homes in inventory totaled 3,139, down from 6,288 a year earlier [5][14] - The percentage of homes on the market for more than 120 days was 51% at the end of Q3 2025 [5][14]

Core Insights - Opendoor Technologies, Inc. is scheduled to release its third-quarter earnings report after the market closes on Thursday, followed by a "Financial Open House" livestream aimed at retail investors [1][2] Group 1: Earnings Presentation - The Financial Open House will include a recorded overview of Opendoor's Q3 financial results and business highlights [2] - Following the presentation, company leaders will host a live Q&A session, addressing questions from both retail and institutional investors [3] Group 2: Company Philosophy - CEO Kaz Nejatian emphasized the importance of simplicity and transparency in engaging with shareholders, stating that the approach of streaming on Robinhood and opening Q&A to shareholders is the right way to operate as a public company [4] - Interim CFO Christy Schwartz highlighted the accessibility of the event, allowing shareholders to ask questions directly without intermediaries [5][6] Group 3: Wall Street Expectations - Analysts expect Opendoor to report quarterly losses of seven cents per share and revenue of approximately $849.59 million for Q3, according to estimates from Benzinga Pro [7]

Core Viewpoint - Opendoor Technologies is preparing to report its third-quarter results amid a challenging housing market, with a focus on engaging shareholders through a livestreamed earnings presentation [1][2]. Company Overview - Opendoor Technologies, based in San Francisco, operates a technology-driven platform that facilitates quick residential real estate transactions by making instant cash offers to homeowners [4]. - The company provides a seamless experience for buyers and sellers by offering services such as home assessments, financing, and title services, alongside its core buying and selling operations [5]. Market Context - The homebuying market is currently under pressure due to high interest rates, and experts are uncertain about improvements in home affordability that could attract more buyers [2]. - Federal Reserve Chair Jerome Powell has indicated that further rate cuts are not guaranteed, adding to the uncertainty in the housing market [2]. Stock Performance - Opendoor's stock has seen a significant increase, with a 292% gain over the past 52 weeks and an 899% increase over the last six months, although it is currently down 36% from its 52-week high of $10.87 reached in September [6]. - Despite the stock's dramatic rise, concerns exist regarding whether this surge is supported by solid fundamentals [6]. Valuation Metrics - The company's stock is trading at a low valuation, with a price-to-sales ratio of 1.02, significantly lower than the industry average of 4.36 [7].

Core Viewpoint - Opendoor Technologies is under increased scrutiny following a $39 million settlement related to allegations of misrepresentation regarding its home-pricing algorithms, which has raised concerns about its operational risks and revenue model [1][2]. Financial Position and Litigation Impact - In Q1 2025, Opendoor reported revenue of approximately $1.2 billion with a gross margin of 8.6%, significantly below the 12-15% needed to cover operating costs and debt service [3]. - The company experienced a net loss of $85 million in Q1 2025, with an adjusted EBITDA loss of $30 million, indicating ongoing cash burn rather than sustainable margin improvement [3]. - Opendoor holds about $789 million in cash against $2.3 billion in debt, suggesting a runway of approximately 2.5 to 3 years without significant margin recovery or external financing [4]. Settlement and Governance Reforms - The $39 million settlement represents roughly 5% of Opendoor's cash reserves and formalizes the ongoing concerns regarding technology misrepresentation, potentially affecting partner confidence and capital access [5][12]. - The settlement includes governance reforms aimed at improving disclosure quality and risk controls [2]. Operational Changes and Restructuring - Opendoor is implementing aggressive restructuring measures, achieving a 33% reduction in fixed operating expenses through workforce cuts and facility consolidations [9]. - Co-founders Keith Rabois and Eric Wu have returned to the board, with plans to reduce the workforce by 85% from 1,400 to approximately 200 employees, emphasizing a shift towards AI and automation [9]. - Kaz Nejatian, the new CEO, is leading a pivot towards AI-driven operations and expanding agent partnership programs, which have shown promising results in listing conversions and acquisitions [10][11]. Revenue Recovery Scenarios - Under a 35% upside case, Opendoor could achieve a 55% revenue recovery and stabilize margins at 12-15% within 18-24 months [12]. - The 45% base case anticipates a 25% recovery with margins at 8-10%, projecting profitability in 2026-2027 [12]. - A 20% downside case suggests that partnership failures could necessitate strategic alternatives within 2.8 years [12]. Market Sentiment and Stock Volatility - Opendoor's stock has experienced significant volatility, dropping 12.32% initially after a Bloomberg disclosure and trading as low as $0.51 in June 2025, before spiking above $10.87 in September 2025 [8]. - This volatility reflects ongoing investor skepticism, influenced by speculative trading rather than fundamental performance [8].