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

Revenue and Sales Performance - Revenue for Q2 2025 was $1,567 million, a 3.7% increase from $1,511 million in Q2 2024[138] - Revenue for Q2 2025 was $1,567 million, an increase from $1,511 million in Q2 2024, representing a growth of 3.7%[166] - Revenue increased by $56 million, or 4%, for the three months ended June 30, 2025, driven by higher sales volumes, with 4,299 homes sold compared to 4,078 homes in the same period of 2024, representing a 5% increase[197] - Revenue increased by $28 million, or 1%, for the six months ended June 30, 2025, with 7,245 homes sold compared to 7,156 homes in the same period of 2024[199] - Homes sold increased to 4,299 in Q2 2025, up 5.4% from 4,078 in Q2 2024[138] Profitability and Loss - Net loss improved to $(29) million in Q2 2025 from $(92) million in Q2 2024, representing a 68.5% reduction[138] - Adjusted Net Loss for Q2 2025 was $(9) million, an improvement from $(31) million in Q2 2024[174] - Total net loss for Q2 2025 was $(29) million, an improvement from $(92) million in Q2 2024[174] - Net loss improved to $29 million for the three months ended June 30, 2025, compared to a net loss of $92 million in the same period of 2024, representing a 68% reduction[194] - The company reported a net loss of $33 million for the six months ended June 30, 2025, which was offset by a $593 million decrease in real estate inventory[248] Operating Expenses and Profit Margins - Contribution Profit for Q2 2025 was $69 million, a decline of 27.4% from $95 million in Q2 2024[138] - Adjusted Gross Profit for Q2 2025 was $135 million, compared to $154 million in Q2 2024, resulting in a decrease of 12.3%[166] - Adjusted Gross Margin for Q2 2025 was 8.6%, down from 10.2% in Q2 2024[166] - Gross profit decreased from $129 million to $128 million for the three months ended June 30, 2025, with gross margin decreasing from 8.5% to 8.2% due to a higher mix of older inventory[201] - Gross profit decreased from $243 million to $227 million for the six months ended June 30, 2025, with gross margin decreasing from 9.0% to 8.3%[202] - Total operating expenses decreased by $60 million, or 30%, for the three months ended June 30, 2025, primarily due to reductions in sales, marketing, and administrative expenses[194] Inventory and Market Conditions - Homes purchased significantly decreased to 1,757 in Q2 2025, down 63.5% from 4,771 in Q2 2024[138] - The percentage of homes "on the market" for more than 120 days rose to 36% in Q2 2025, compared to 14% in Q2 2024[138] - Inventory valuation adjustments recorded were $21 million for Q2 2025, compared to $34 million in Q2 2024[150] - Inventory valuation adjustment for the current period in Q2 2025 was $21 million, compared to $34 million in Q2 2024[174] - The residential real estate market remains under pressure, with existing home sales at approximately four million units, below the decade-long average of over five million[140] Debt and Financing - The total outstanding balances on asset-backed debt were $1.8 billion, with an additional $460 million in convertible senior notes as of June 30, 2025[220] - The company issued $325 million in new 7.00% senior convertible notes due 2030, resulting in gross cash proceeds of $75 million[222] - The total non-recourse asset-backed debt amounted to $7.75 billion, with a carrying value of $1.19 billion as of June 30, 2025[235] - Total liabilities include $1,710 million in senior and mezzanine term debt facilities, with $254 million due within one year[253] - The company has a working capital requirement that may increase with inventory balance, but expects current cash and future operations to meet requirements for at least 12 months[225] Cash Flow and Liquidity - As of June 30, 2025, the company had cash and cash equivalents of $789 million and restricted cash of $396 million, with a total increase of $110 million compared to December 31, 2024[219] - Net cash provided by operating activities for the six months ended June 30, 2025, was $544 million, a significant improvement from $(577) million in the same period of 2024[248] - Cash used in financing activities was $122 million for the six months ended June 30, 2025, primarily due to $182 million in net principal payments on non-recourse asset-backed debt[250] - The company experienced a net increase in cash, cash equivalents, and restricted cash of $422 million for the six months ended June 30, 2025[247] Market Presence and Operations - The company operated in 50 markets as of June 30, 2025, unchanged from the previous year[146] - The company generates revenue primarily from home sales and additional services such as title insurance and escrow services[177] - The company has established special purpose entities for financing real estate inventory purchases through asset-backed debt[243] - The company’s asset-backed senior revolving credit facilities had a committed borrowing capacity of $440 million as of June 30, 2025[236] - The company had committed borrowing capacity of $1.2 billion under asset-backed senior term debt facilities as of June 30, 2025[238] Interest and Other Income - Interest expense increased by $6 million, or 20%, for the three months ended June 30, 2025, primarily due to higher average balances in non-recourse asset-backed debt[213] - Other income — net decreased by $2 million, or 17%, for the three months ended June 30, 2025, primarily due to lower interest income from reduced cash balances[215] - Total property financing interest expense for the six months ended June 30, 2025, was $58 million, with $46 million at fixed rates[259] - A one percentage point increase in applicable benchmark rates is estimated to increase annual interest expense by approximately $3 million[259] Restructuring and Future Outlook - Restructuring expenses increased by $6 million for the three months ended June 30, 2025, attributed to workforce reductions and related consulting fees[210] - The company has incurred losses since inception, except for net income during Q1 2022 and Q2 2023, and expects to incur additional losses in the future[224] - The company maintains compliance with all financial covenants related to its asset-backed facilities as of June 30, 2025[229]

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]

Core Viewpoint - Opendoor Technologies Inc is expected to report its second-quarter financial results, which could attract new investors or enhance its status as a meme stock due to recent strong stock performance [1] Earnings Estimates - Analysts predict Opendoor will report second-quarter revenue of $1.50 billion, a slight decrease from $1.51 billion in the same quarter last year [2] - The company has consistently beaten revenue estimates for six consecutive quarters and nine out of the last ten quarters [2] - A loss of one cent per share is anticipated for earnings, an improvement from a loss of four cents per share in the previous fourth quarter [3] - Opendoor's guidance earlier this year projected second-quarter revenue between $1.45 billion and $1.525 billion [3] Key Items to Watch - There has been a notable increase in interest in Opendoor's stock, linking it to meme stocks due to high volatility [4] - Hedge fund manager Eric Jackson has played a role in boosting interest through social media, emphasizing the long-term potential of the company [4] - Jackson has dismissed the notion of Opendoor as merely a meme stock, focusing instead on its turnaround story, cost-cutting measures, and leadership in the iBuying sector [5] Recent Developments - Opendoor's stock rose after confirming compliance with Nasdaq listing rules and announcing it would not conduct a reverse stock split [6] - In the first quarter, the company reported revenue of $1.15 billion and had 1,051 homes under contract, with an inventory balance of $2.4 billion, equating to 7,080 homes [6] - Short interest in Opendoor stands at 22.1% of the float, indicating significant market interest [7] - The stock price increased by 15.49% to $2.43, with a 52-week trading range of 51 cents to $4.97 [7]

Core Viewpoint - Hopes for lower interest rates are driving interest in Opendoor Technologies, with the stock experiencing significant gains ahead of its upcoming earnings report [1][3]. Group 1: Stock Performance - Opendoor's shares rose by 15.7% as of 12:49 p.m. ET, marking the second consecutive day of gains [1]. - The stock had previously surged in July due to meme-driven trading, with comparisons being made to Carvana, which saw a dramatic increase in its stock price [4]. Group 2: Market Context - The recent underwhelming jobs report has increased expectations that the Federal Reserve may cut interest rates in its next meeting, contributing to the stock's rise [3]. - Strong call-buying activity ahead of the earnings report has also fueled the stock's gains [3]. Group 3: Business Model and Competition - Opendoor's business model, which focuses on flipping houses and collecting service fees, faces challenges in a sluggish housing market [5]. - Competitors like Zillow and Redfin have exited the iBuying market, which could create opportunities for Opendoor, but also raises questions about the sustainability of its business model [5]. Group 4: Earnings Expectations - Analysts expect Opendoor's revenue to remain flat at $1.5 billion, with an anticipated narrowing of the adjusted loss per share from $0.04 to $0.02 [6]. - Management's commentary on lower mortgage rates will be crucial for determining the stock's direction in the coming weeks [6].

Core Viewpoint - Opendoor Technologies is expected to experience significant stock volatility following its upcoming second-quarter earnings report on August 5, with recent meme-stock trading contributing to its price fluctuations [1][5]. Group 1: Stock Performance and Volatility - Opendoor's share price has surged over 280% in the last month, primarily driven by its popularity among meme-stock traders, despite a recent pullback [2][4]. - Historically, Opendoor has experienced high valuation volatility post-earnings, with reports often leading to substantial sell-offs rather than gains [4][6]. - The stock is currently down 12.5% over the past year and approximately 81% over the last five years [4]. Group 2: Valuation Metrics - Opendoor's forward price-to-sales (P/S) ratio is around 0.3, indicating it is valued at just 30% of this year's expected sales, which may present opportunities for explosive gains [7]. - The company has guided for second-quarter sales between $1.45 billion and $1.525 billion, with a contribution profit forecast of $65 million to $75 million, and non-GAAP EBITDA between $10 million and $20 million [10]. Group 3: Market Dynamics and Future Outlook - The recent meme momentum could lead to significant valuation gains even with minor performance beats in the upcoming earnings report [11]. - Management may consider selling new stock at elevated levels to strengthen the balance sheet, although this could lead to share dilution and potential sell-offs [12].

Company Overview - Opendoor Technologies operates as a house flipper, buying homes in various conditions and selling them after renovations, utilizing a proprietary algorithm to select properties in approximately 50 markets [2][4] - The company aims to scale the traditional house flipping business model, which has been practiced by small investors for years, but faces challenges due to the unique nature of each home [4] Financial Performance - Opendoor has not yet achieved sustainable profits, facing seasonal headwinds in the property market, with peak homebuying activity occurring in spring and summer [5] - Investors should be prepared for significant profit fluctuations throughout the year, heavily reliant on the success of the selling season [5] Stock Performance - The recent spike in Opendoor's stock price does not necessarily reflect positive business fundamentals, as it appears to be influenced by meme stock trading behavior rather than company performance [7][9] - The company had previously considered a reverse stock split to avoid delisting, which would not change the underlying business but could temporarily inflate the stock price [8][9] Investment Outlook - The current situation suggests that investors are more engaged in speculative trading rather than long-term investment in Opendoor's business [9][11] - For long-term wealth-building investors, Opendoor is advised to be avoided until it demonstrates sustainable profitability, and it may be more suitable for a watch list rather than an active investment [10][12][13]

修改反向拆股方案不符合（本公司/股东的）最佳利益。 Opendoor Technologies Inc.：取消特别股东会议安排。 ...