Core Viewpoint - Opendoor Technologies (OPEN) reported mixed Q2 2025 results, with revenue exceeding expectations and key profitability metrics turning positive for the first time in three years, but Q3 guidance significantly below market expectations led to a sharp decline in stock price by over 23% after hours [1][4]. Group 1: Q2 Financial Highlights - Revenue reached $1.57 billion, a year-over-year increase of 35.9%, surpassing the FactSet consensus estimate of $1.5 billion [3]. - Adjusted EBITDA was $23 million, marking the first positive result in three years and significantly better than the market expectation of $17.5 million, indicating improved operational efficiency and risk management [3]. - The company reported a loss of $0.04 per share, closely aligning with the market expectation of a loss of $0.03 per share, reflecting a recovery from the pandemic-induced downturn [3]. Group 2: Concerns for Q3 Guidance - Q3 revenue is projected to be between $800 million and $875 million, well below the market expectation of $1.2 billion [4]. - Adjusted EBITDA guidance indicates a loss of between $28 million and $21 million for Q3 [4]. - Contribution profit is expected to be between $22 million and $29 million, showing weak growth prospects [4]. Group 3: CEO's Strategy and Market Positioning - CEO Carrie Wheeler emphasized leveraging the "Meme stock" phenomenon for brand building, indicating a shift in strategy to capitalize on recent stock price surges driven by social media discussions [5]. - The company is introducing a "Cash Plus" product, which allows for lower-priced home purchases while sharing resale profits with sellers [5]. - Opendoor is actively engaging real estate agents to enhance customer experience by comparing "quick cash sales" with traditional listings [5]. Group 4: Background and Challenges - Opendoor, a pioneer in the iBuyer model, faced significant losses due to rising interest rates and a cooling housing market, with 42% of transactions losing money in August 2022 [6]. - The stock price plummeted from a peak of $35.88 in 2021 to $0.51 in June 2025, receiving a delisting warning from Nasdaq [6]. - Recent stock price recovery was fueled by endorsements from prominent investors, highlighting the volatility associated with Meme stocks [6].

Core Insights - Opendoor Technologies reported a 4% year-over-year revenue increase to $1.6 billion, surpassing analyst expectations of $1.5 billion [1] - The company narrowed its loss per share to $0.04 from $0.13 in the same period last year [1] - For the first time in three years, Opendoor achieved an adjusted EBITDA profit of $23 million [1] Financial Performance - Revenue for Q2 reached $1.6 billion, a 4% increase compared to the previous year [1] - The loss per share improved to $0.04, compared to a loss of $0.13 in the prior year [1] - Adjusted EBITDA profit was recorded at $23 million, marking a significant milestone for the company [1] Future Outlook - The company expects Q3 revenue to be between $800 million and $875 million, which is below the analyst average estimate of $1.2 billion [1] - CFO Selim Freiha indicated that the real estate market has further deteriorated in recent quarters [1] - The ongoing high mortgage rates are cited as a key factor suppressing buyer demand, leading to lower liquidation rates and record-high delistings of properties [1]

Group 1 - Opendoor Technologies Inc. reported a quarterly loss of $0.01 per share, consistent with the Zacks Consensus Estimate, compared to a loss of $0.04 per share a year ago [1] - The company posted revenues of $1.57 billion for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 5.26%, and up from $1.51 billion year-over-year [2] - Opendoor Technologies shares have increased approximately 53.8% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.6% [3] Group 2 - The earnings outlook for Opendoor Technologies is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for Opendoor Technologies was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] - The current consensus EPS estimate for the upcoming quarter is -$0.03 on revenues of $1.25 billion, and -$0.19 on revenues of $4.87 billion for the current fiscal year [7] Group 3 - The Internet - Software industry, to which Opendoor Technologies belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8]

Company Overview - Opendoor's business model focuses on using technology to buy and sell homes, generating profits from the transactions [2] - The company was founded in 2014 and went public via a SPAC during the late 2020 housing boom [2] Recent Stock Performance - Opendoor shares have increased almost fivefold since early July, with trading volumes reaching record levels [1] - Despite the surge, the stock dropped over 20% in after-hours trading following the earnings call [1] - Prior to the recent increase, the stock price fell to as low as $0.51 in late June [1] Financial Performance - For the second quarter, Opendoor reported a revenue increase of approximately 4% to $1.57 billion, with a narrowed net loss of $29 million [4] - Revenue for the previous year was significantly lower, dropping from $15.6 billion in 2022 to $5.2 billion [2] - The company projects revenue for the current quarter to be between $800 million and $875 million, indicating a decline of at least 36% year-over-year [5] Market Conditions - The housing market has deteriorated, with persistently high mortgage rates suppressing buyer demand [6] - The company plans to acquire only 1,200 homes in the third quarter, down from 1,757 in the second quarter [5] Strategic Shifts - Opendoor is shifting its focus from iBuying to a referrals business model, which is less capital intensive [6] - This strategic shift is described as "the most important strategic shift in our history" by the CEO [6] Investor Sentiment - Hedge fund manager Eric Jackson's investment in Opendoor has contributed to the stock's recent bounce, with a belief that the stock could reach $82 [3] - Despite the stock's volatility, there is a growing interest from investors, although reactions to recent earnings were mixed [1][6]

Financial Data and Key Metrics Changes - The company reported revenue of $1.6 billion in Q2 2025, marking its first quarter of adjusted EBITDA profitability in three years [18] - Adjusted EBITDA was $23 million in Q2 2025, compared to a loss of $5 million in Q2 2024 [19] - Contribution profit was $69 million in Q2 2025, with a contribution margin of 4.4%, down from $95 million and 6.3% in Q2 2024 [19] Business Line Data and Key Metrics Changes - The company acquired 1,757 homes in Q2 2025, slightly exceeding expectations but down year-over-year due to wider spreads and reduced marketing spend [19] - Listing conversion rates improved significantly, with five times more customers converting to listings compared to traditional methods [11][44] Market Data and Key Metrics Changes - The housing market has deteriorated, with persistently high mortgage rates suppressing buyer demand and leading to lower clearance rates [21] - The company expects a sequential decline in Q4 revenue similar to Q3, indicating ongoing challenges in the market [21] Company Strategy and Development Direction - The company is transitioning from a single product to a distributed platform with multiple offerings delivered through agents, aiming to enhance customer choice and speed [8][10] - The launch of the Cash Plus product aims to provide sellers with immediate cash while allowing them to maximize proceeds upon resale, aligning incentives with customers [14][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging housing market but emphasized the long-term strategy for durability, relevance, and scale over the next decade [17] - The company anticipates that the impact of new initiatives will show up in conversion rates and contracts before reflecting in the P&L, with significant contributions expected in 2026 [30] Other Important Information - The company ended Q2 2025 with 4,538 homes representing $1.5 billion in net inventory and $1.1 billion in total capital [20] - The company issued $325 million of convertible senior notes in May 2025, extending maturities and adding cash to the balance sheet [20] Q&A Session Summary Question: Regarding Q3 guidance and macro conditions - Management indicated that the macro environment has stabilized but remains below early Q2 levels, with expectations for Q3 and Q4 based on current conditions [28] Question: Impact of new initiatives on contribution margin - Management stated that Cash Plus could enhance confidence in achieving target contribution margins due to lower upfront capital needs and better risk adjustment [33] Question: Sequential decline in Q4 revenue - Clarified that the sequential decline in Q4 revenue is expected on a percentage basis, not absolute dollars, with operational expenses expected to increase in Q4 due to marketing strategies [37][38] Question: Seller demand in a buyer's market - Management noted no current increase in seller demand, as it is contingent on buyer demand improving first [39] Question: Performance of the distributor platform - Management reported that pairing sellers with agents early in the selling journey has significantly improved conversion rates, with twice as many customers reaching cash offers [42][43] Question: Trends in spreads and home price volatility - Management expects spreads to peak in late spring and trend down in the second half of the year, with home price appreciation typically varying seasonally [63][68]

Opendoor CEO Carrie Wheeler is seizing the company’s meme stock moment to reshape its future https://t.co/v3MHp2EEl6 ...

TABLE OF CONTENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ____________. Commission file number 001-39253 Opendoor Technologies Inc. (Exact name of registrant as specified in its charter) (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 20 ...

Exhibit 99.1 Opendoor Announces Second Quarter of 2025 Financial Results SAN FRANCISCO, California - August 5, 2025 - Opendoor Technologies Inc. (Nasdaq: OPEN), a leading e- commerce platform for residential real estate transactions, today reported financial results for its second quarter ended June 30, 2025. Opendoor's second quarter 2025 financial results and management commentary can be accessed through the Company's shareholder letter on the "Quarterly Reports" page of Opendoor's investor relations webs ...

Core Insights - Opendoor Technologies Inc. reported a revenue of $1.6 billion for Q2 2025, marking a 4% increase compared to Q2 2024 and a 36% increase from Q1 2025, alongside achieving its first quarter of Adjusted EBITDA profitability since 2022 despite challenging housing market conditions [2][8]. Financial Performance - Revenue: $1.6 billion, up 4% year-over-year and up 36% quarter-over-quarter [8]. - Gross Profit: $128 million, slightly down from $129 million in Q2 2024 but up from $99 million in Q1 2025; Gross Margin at 8.2% [8]. - Net Loss: $(29) million, an improvement from $(92) million in Q2 2024 and $(85) million in Q1 2025 [8]. - Contribution Profit: $69 million, down from $95 million in Q2 2024 but up from $54 million in Q1 2025; Contribution Margin at 4.4% [8]. - Adjusted EBITDA: $23 million, a significant improvement from $(5) million in Q2 2024 and $(30) million in Q1 2025; Adjusted EBITDA Margin at 1.5% [8]. Operational Metrics - Total Homes Sold: 4,299, up 5% year-over-year and up 46% quarter-over-quarter [8]. - Inventory Balance: $1.5 billion, representing 4,538 homes, down 32% year-over-year and down 35% quarter-over-quarter [8]. - Homes Purchased: 1,757, down 63% year-over-year and down 51% quarter-over-quarter [8]. - Homes Under Contract: 393, down 78% year-over-year and down 63% quarter-over-quarter [8]. Future Outlook - Q3 2025 Revenue Guidance: $800 million to $875 million [8]. - Q3 2025 Contribution Profit Guidance: $22 million to $29 million [8]. - Q3 2025 Adjusted EBITDA Guidance: $(28) million to $(21) million [8].

Company Overview - Opendoor Technologies is a real estate development company that operates as an iBuyer, making instant cash offers primarily in the residential real estate market [1] - The company utilizes a technology-driven platform to purchase real estate directly from sellers, making necessary upgrades and repairs before reselling [1] - Opendoor has expanded its services to include mortgage services and home loans, and it merged with Social Capital Hedosophia Holdings Corp II in 2020 [1] Market Position and Comparisons - Eric Jackson compared Opendoor to Carvana, highlighting similarities such as being turnaround plays and benefiting from lower interest rates [2] - Both companies are digitizing their respective legacy markets, with Opendoor streamlining the real estate buying and selling process [3] - Opendoor has gained popularity among retail investors, similar to Carvana, particularly on platforms like Reddit [4] Stock Performance and Compliance - Opendoor shares recently rose and regained compliance with Nasdaq's minimum bid price requirement, maintaining a closing bid price of at least $1.00 for 12 consecutive trading sessions [4] Investment Sentiment - There has been heavy buying in out-of-the-money call options for Opendoor, indicating bullish sentiment [6] - Approximately 40 million shares, or ~38% of the share float, are short, which could lead to a short squeeze if the stock continues to rise [6] Conclusion - Opendoor Technologies presents a speculative investment opportunity, potentially benefiting from lower interest rates, ongoing digitization in real estate, and high short interest [7]