[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Opendoor Technologies Inc.'s unaudited condensed consolidated financial statements as of June 30, 2023, and for the three and six-month periods then ended, including balance sheets, statements of operations, comprehensive income, changes in shareholders' equity, cash flows, and detailed notes [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2023, total assets decreased to **$4.22 billion** from **$6.61 billion** at year-end 2022, primarily due to reduced real estate inventory, while total liabilities also decreased to **$3.14 billion** from **$5.52 billion**, with shareholders' equity remaining stable at **$1.086 billion** Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,120 | $1,137 | | Restricted cash | $1,684 | $654 | | Real estate inventory, net | $1,149 | $4,460 | | **Total Assets** | **$4,223** | **$6,608** | | **Liabilities** | | | | Non-recourse asset-backed debt (Current & Non-current) | $2,542 | $4,396 | | Convertible senior notes | $501 | $959 | | **Total Liabilities** | **$3,137** | **$5,522** | | **Total Shareholders' Equity** | **$1,086** | **$1,086** | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For Q2 2023, the company reported **$23 million** net income, a turnaround from a **$54 million** net loss in Q2 2022, driven by a **$104 million** gain on debt extinguishment despite a **53%** revenue decline to **$1.98 billion** Statement of Operations Summary (in millions, except per share data) | Metric | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $1,976 | $4,198 | $5,096 | $9,349 | | Gross Profit | $149 | $486 | $319 | $1,021 | | (Loss) Income from Operations | $(68) | $32 | $(192) | $150 | | Gain on Extinguishment of Debt | $104 | $— | $182 | $— | | Net Income (Loss) | $23 | $(54) | $(78) | $(26) | | Diluted EPS | $0.03 | $(0.09) | $(0.12) | $(0.04) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2023, net cash provided by operating activities was **$3.1 billion**, primarily from a **$3.26 billion** decrease in real estate inventory, while net cash used in financing activities was **$2.1 billion**, resulting in a **$1.01 billion** net increase in cash and equivalents Cash Flow Summary for Six Months Ended June 30 (in millions) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $3,102 | $(343) | | Net cash provided by investing activities | $45 | $183 | | Net cash (used in) provided by financing activities | $(2,134) | $436 | | **Net increase in cash, cash equivalents, and restricted cash** | **$1,013** | **$276** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies and financial items, highlighting a reduction in real estate inventory to **$1.15 billion**, **$10.1 billion** in non-recourse debt capacity, **$510 million** in remaining convertible notes, a **$10 million** restructuring charge, and ongoing securities litigation - Real estate inventory decreased to **$1.149 billion** as of June 30, 2023, from **$4.460 billion** at the end of 2022. The company recorded inventory valuation adjustments of **$14 million** and **$37 million** for the three and six months ended June 30, 2023, respectively[48](index=48&type=chunk)[49](index=49&type=chunk) - In March and May 2023, the company repurchased a total of **$468 million** in aggregate principal amount of its 2026 Convertible Senior Notes for **$270 million** in cash, resulting in a total gain on debt extinguishment of **$188 million**[83](index=83&type=chunk)[84](index=84&type=chunk) - In April 2023, the company announced a workforce reduction of approximately **560 employees** (**22%** of workforce), incurring a total expense of approximately **$10 million** for post-employment benefits[131](index=131&type=chunk) - The company is a defendant in a consolidated securities class action lawsuit alleging false or misleading statements related to its pricing algorithm. The company believes the allegations are without merit and intends to defend itself vigorously[128](index=128&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=36&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses operating cautiously in a challenging housing market with low supply and price uncertainty, achieving **$23 million** net income in Q2 2023 despite a **53%** revenue decline, driven by a **$104 million** debt extinguishment gain and significant 'old book' inventory reduction [Overview and Financial Highlights](index=36&type=section&id=Overview%20and%20Financial%20Highlights) The company navigates a housing market with low listing volumes and price uncertainty by operating with elevated spreads and right-sizing costs, including a **22%** workforce reduction, resulting in **$2.0 billion** revenue and **$23 million** net income for Q2 2023 Q2 2023 Financial Highlights (vs. Q2 2022) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Revenue | $1,976M | $4,198M | | Homes Sold | 5,383 | 10,482 | | Gross Profit | $149M | $486M | | Net Income (Loss) | $23M | $(54)M | | Adjusted EBITDA | $(168)M | $218M | | Homes in Inventory | 3,558 | 17,013 | - The company is operating with elevated spreads to account for ongoing home price uncertainty and expects modest month-over-month home price depreciation in the second half of 2023[140](index=140&type=chunk) - A workforce reduction of approximately **22%** (**560 employees**) was announced in April 2023, expected to deliver over **$50 million** in annualized savings[143](index=143&type=chunk) [Factors Affecting our Business Performance](index=37&type=section&id=Factors%20Affecting%20our%20Business%20Performance) Key business drivers include market penetration, partnerships with major online platforms like Zillow, Redfin, and Realtor.com, and a focus on inventory health, significantly reducing 'old book' inventory from **$3.5 billion** to **$254 million** by June 30, 2023 - The company has partnerships with the three largest online real estate platforms: Zillow, Redfin, and Realtor.com. The Zillow partnership, launched in early 2023, was live in **25 markets** as of June 30, 2023[146](index=146&type=chunk) - The company has been focused on managing inventory risk, particularly on homes acquired before the market downturn ('old book'). This inventory was reduced by **93%** from **$3.5 billion** at Dec 31, 2022 to **$254 million** at June 30, 2023[154](index=154&type=chunk) - Inventory valuation adjustments were significantly lower in 2023, at **$14 million** for Q2 and **$37 million** for H1, compared to 2022 levels[155](index=155&type=chunk) [Results of Operations](index=48&type=section&id=Results%20of%20Operations) Q2 2023 revenue decreased **53%** to **$2.0 billion** due to fewer homes sold and lower revenue per home, while gross profit fell **69%** to **$149 million**, and operating expenses decreased **52%** to **$217 million**, contributing to **$23 million** net income Results of Operations Comparison (in millions) | Line Item | Q2 2023 | Q2 2022 | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | $1,976 | $4,198 | (53)% | | Gross Profit | $149 | $486 | (69)% | | Total Operating Expenses | $217 | $454 | (52)% | | (Loss) Income from Operations | $(68) | $32 | (313)% | | Gain on Extinguishment of Debt | $104 | $— | N/M | | Net Income (Loss) | $23 | $(54) | (143)% | - The decrease in revenue was primarily due to a **49%** decrease in homes sold (**5,383** in Q2 2023 vs. **10,482** in Q2 2022) and an **8%** decrease in revenue per home sold[200](index=200&type=chunk) - Sales, marketing, and operations expenses decreased by **55%**, primarily due to a **$63 million** reduction in advertising expense and lower resale transaction costs[207](index=207&type=chunk) - General and administrative expenses decreased by **68%**, mainly due to a **$38 million** reduction in stock-based compensation and a **$42 million** legal contingency accrual in the prior-year period that did not recur[211](index=211&type=chunk) [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2023, the company maintained strong liquidity with **$1.1 billion** in cash and equivalents, **$1.7 billion** in restricted cash, and **$90 million** in marketable securities, supported by **$10.1 billion** in non-recourse debt capacity and recent convertible note repurchases - As of June 30, 2023, principal sources of liquidity consisted of **$1.1 billion** in cash and cash equivalents, **$1.7 billion** in restricted cash, and **$90 million** in marketable securities[223](index=223&type=chunk) - In March and May 2023, the company repurchased a combined **$468 million** in aggregate principal of its 2026 Notes, which strengthened the balance sheet[225](index=225&type=chunk) Debt Summary as of June 30, 2023 (in billions) | Debt Type | Borrowing Capacity | Outstanding Balance | | :--- | :--- | :--- | | Non-Recourse Asset-backed Debt | $10.1 | $2.6 | | Convertible Senior Notes | N/A | $0.51 | - Cash from operations was a positive **$3.1 billion** for H1 2023, primarily driven by a **$3.3 billion** decrease in real estate inventory, while cash used in financing was **$2.1 billion** due to net debt repayments[251](index=251&type=chunk)[252](index=252&type=chunk)[254](index=254&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate and inflation risks, with only **1%** of its **$2.6 billion** asset-backed debt being floating-rate, limiting interest rate sensitivity, and mitigating inflation impacts through pricing and operational models - The company is exposed to interest rate risk, with **$15 million** in floating-rate debt outstanding as of June 30, 2023. A **1%** increase in benchmark rates would increase annual interest expense by approximately **$0.1 million**[262](index=262&type=chunk) - Inflation impacts the cost of goods and services, such as labor and materials for home repairs. The company tries to offset these impacts through its pricing and operational models[263](index=263&type=chunk) [Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and Interim CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during the quarter - The Chief Executive Officer and Interim Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2023[265](index=265&type=chunk) - No changes occurred during the quarter ended June 30, 2023, that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[266](index=266&type=chunk) [PART II - OTHER INFORMATION](index=61&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Legal Proceedings](index=61&type=section&id=Item%201.%20Legal%20Proceedings) The company is a defendant in a consolidated securities class action lawsuit and related shareholder derivative lawsuits, alleging false or misleading statements regarding its pricing algorithm, which the company intends to vigorously defend - The company is a defendant in a consolidated securities class action lawsuit, *In re Opendoor Technologies Inc. Securities Litigation*, alleging violations of the Exchange Act and Securities Act related to its pricing algorithm[268](index=268&type=chunk) - Related shareholder derivative lawsuits have also been filed, which are currently stayed pending the outcome of the main securities litigation[269](index=269&type=chunk) [Risk Factors](index=61&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors since the filing of its Annual Report on Form 10-K for the year ended December 31, 2022 - There have been no material changes to the Company's risk factors since the Annual Report[272](index=272&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=62&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[273](index=273&type=chunk) [Other Information](index=62&type=section&id=Item%205.%20Other%20Information) This section discloses that two executive officers, Megan Meyer and Christina Schwartz, adopted Rule 10b5-1 trading plans, and three executives entered into 10b5-1 instruction letters for tax withholding obligations related to RSU vesting during the quarter Executive Rule 10b5-1 Trading Plan Adoptions | Executive | Title | Adoption Date | Max Shares to be Sold | | :--- | :--- | :--- | :--- | | Megan Meyer | President, Sell Direct & Services | 6/15/2023 | 400,009 | | Christina Schwartz | Interim CFO | 6/6/2023 | 591,595 | - On June 12, 2023, executives Megan Meyer, Christina Schwartz, and Sydney Schaub entered into 10b5-1 Instruction Letters to facilitate the sale of shares to satisfy tax withholding obligations related to RSU vesting[278](index=278&type=chunk) [Exhibits](index=62&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including certifications by the CEO and Interim CFO, and XBRL data files

Financial Data and Key Metrics Changes - The company reported Q1 2023 revenue of $3.1 billion, exceeding guidance due to better-than-expected market sell-through rates driven by a significant decline in new listing volumes [7][57] - Adjusted EBITDA loss was $341 million, which included $295 million in previously recorded inventory valuation adjustments [49] - Contribution margin was negative 7.7% in Q1, reflecting the performance of older inventory, while new inventory generated a contribution margin of 8.5% [60] Business Line Data and Key Metrics Changes - The company purchased 1,747 homes in Q1 2023, down 81% compared to Q1 2022, indicating a significant reduction in acquisition activity [23] - The company expects to maintain double-digit spreads for the rest of 2023 while focusing on expanding low-cost partnership channels [21][24] Market Data and Key Metrics Changes - New listings within the company's buy box were down almost 25% in Q1 2023 compared to the previous year, contributing to higher market clearance rates [57] - The company observed a decline in new market listings from a 17% decline in January to a 27% decline by March [8] Company Strategy and Development Direction - The company aims to build the most trusted e-commerce platform for residential real estate, focusing on transforming the complicated home buying and selling process [53] - The company is enhancing its operating pricing platforms to deliver greater efficiencies and higher unit economics over time [74] - Partnerships with top online real estate platforms like Zillow, Redfin, and Realtor.com are expected to drive acquisition volumes [4] Management Comments on Operating Environment and Future Outlook - Management noted that home sellers remain on the sidelines, and the outlook for home prices is uncertain, but they are optimistic about the stabilization of home prices [57] - The company plans to operate cautiously regarding home pricing, expense management, and capital discipline due to the uncertain macro environment [24] Other Important Information - The company announced a workforce reduction of approximately 22% or 560 employees to align with the decline in market transaction volumes [44] - The company has partnered with over 90 homebuilders to facilitate trade-ins for customers of new build homes, enhancing its service offerings [48] Q&A Session Summary Question: Outlook on contribution profit and EBITDA - Management indicated that contribution profit is expected to improve sequentially through the remainder of the year, with positive EBITDA anticipated starting in Q3 as the new inventory comprises the majority of resales [12][50] Question: Dynamics between restricted cash and inventory - Management explained that the increase in restricted cash is primarily related to term debt facilities, which are collateralized by inventory or restricted cash [46] Question: Acquisition pace and market conditions - Management stated that the acquisition pace is expected to stabilize around 1,000 acquisitions per month, contingent on spreads and market conditions [51][62]

TABLE OF CONTENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 (State or other jurisdiction of incorporation or organization) OR 410 N. Scottsdale Road, Suite 1600 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Tempe, AZ 85281 For the transition period from ___________ to ___________ ...

Opendoor Letter to Shareholders and and and 2022 affirmed that our vision – to build the most trusted e-commerce platform for residential real estate – is needed more than ever. Consumers want to be able to buy, sell, and move between homes with confidence and control. Yet, navigating a major housing cycle has certainly been challenging, to say the least. That's why I want to begin this shareholder letter, my first as CEO, with a thank you to all our Opendoor teammates who are working hard every day for our ...

Financial Data and Key Metrics Changes - The company reported Q4 2022 revenue of $2.9 billion, a decrease of 25% year-over-year due to slower resale clearance rates and reduced acquisition pace [34] - Full year revenue for 2022 was $15.6 billion, representing a 94% increase compared to 2021 [34] - Adjusted EBITDA loss for Q4 was $351 million, with adjusted operating expenses totaling $144 million [18] - The adjusted EBITDA loss for the full year was $168 million, compared to an adjusted EBITDA of $58 million in 2021 [18] Business Line Data and Key Metrics Changes - The company purchased 3,427 homes in Q4 2022, down 64% year-over-year, and acquired a total of 34,962 homes for the full year, a decrease of 5% compared to 2021 [35] - The gross profit margin was 2.5% in Q4, with a contribution margin of negative 7.2% [36] - The new book of homes delivered a 9.7% contribution margin in Q4, expected to align with the target of 4% to 6% once fully sold [42] Market Data and Key Metrics Changes - The company noted that transactions in the housing market were down 40% year-on-year, with new listings at their lowest since 2004 [60] - The company is experiencing a cautious stance due to the Fed's actions impacting the housing outlook, but early signs of stabilization have been observed [20] Company Strategy and Development Direction - The company aims to stabilize its core business and return to positive free cash flow, with a goal of achieving adjusted net income profitability by 2024 [6][38] - Key strategic areas for 2023 include enabling more sellers to choose Opendoor, realizing greater operational efficiencies, and building exclusives for a managed marketplace [16][27][29] - The company plans to scale its exclusive product offering in three phases, focusing on perfecting the consumer experience and building liquidity in selected markets [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the challenging housing environment and achieve long-term financial objectives [125] - The company anticipates returning to positive unit margins by the second half of 2023 as the mix of inventory shifts towards the new book [53] - Management remains cautious about the potential impact of rising mortgage rates on consumer demand and plans to adjust spreads accordingly [120] Other Important Information - The company ended 2022 with total capital of $2 billion, including $1.3 billion in unrestricted cash and $670 million in equity invested in homes [18] - The company has $12 billion in non-recourse asset-backed facilities, significantly exceeding current inventory levels [19] Q&A Session Summary Question: Can you unpack where efficiencies will show up in 2023? - Management indicated that efficiencies will be seen across the entire business, impacting contribution margin and operating expenses [45] Question: What are the expectations for contribution margins in the first half of 2023? - Management expects to return to positive unit margins by the second half of 2023, with a focus on selling the old book while preserving margins [53] Question: How does the company plan to achieve adjusted net income profitability at $10 billion of revenue? - Management outlined that achieving $10 billion in revenue is feasible based on historical performance and market expansion, with a focus on operational efficiencies [100][103] Question: What is the company's strategy if mortgage rates do not decrease? - Management stated that they will continue to adjust spreads and manage costs to mitigate losses while maintaining capital [120]

TABLE OF CONTENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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) ( ...

Letter to Shareholders 3Q22 The Abernathy Family Valdosta, Georgia A Note from Eric Dear Shareholders, Much has changed around us, including an interest rate change not seen in forty years, sharply declining home prices and transaction velocity, and a backdrop of macro volatility across many sectors. What hasn't changed through this storm is our conviction that the current process of buying and selling real estate is broken, and that we will be the category winner by enabling a seamless way to buy, sell, an ...

Opendoor Technologies Inc. (NASDAQ:OPEN) Q3 2022 Earnings Conference Call November 3, 2022 5:00 PM ET Company Participants Elise Wang - Vice President-Investor Relations Eric Wu - Chief Executive Officer & Co-Founder Carrie Wheeler - Chief Financial Officer Andrew Low Ah Kee - President Daniel Morillo - Chief Investment Officer Conference Call Participants Nick Jones - JMP Securities James McCanless - Wedbush Jason Helfstein - Oppenheimer Ryan Tomasello - KBW Dae Lee - JPMorgan Curtis Nagle - Bank of Americ ...

TABLE OF CONTENTS UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 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 c ...

Opendoor Technologies Inc. (NASDAQ:OPEN) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Elise Wang - Vice President and Head, Investor Relations Eric Wu - Chief Executive Officer and Co Founder Carrie Wheeler - Chief Financial Officer Andrew Low - President Conference Call Participants Jason Helfstein - Oppenheimer Robert Zeller - Truist Dae Lee - J.P. Morgan Nicholas Jones - JMP Securities Justin Ages - Berenberg Ryan Tomasello - KBW Jason Weaver - Compass Point Operator G ...