[Q1 2025 Financial Performance Overview](index=1&type=section&id=Opendoor%20Announces%20First%20Quarter%20of%202025%20Financial%20Results) Opendoor reported Q1 2025 revenue of $1.2 billion with improved net loss and Adjusted EBITDA, while strategically expanding its selling platform and forecasting Q2 profitability [Q1 2025 Financial Highlights](index=1&type=section&id=First%20Quarter%202025%20Key%20Highlights) In Q1 2025, Opendoor reported revenue of $1.2 billion, a 2% decrease year-over-year but a 6% increase quarter-over-quarter. The company demonstrated improved operational efficiency, with net loss narrowing to $(85) million from $(109) million in Q1 2024. Adjusted EBITDA also improved to $(30) million. The company increased its home purchases by 4% YoY and grew its inventory balance by 26% YoY to $2.4 billion Q1 2025 Key Financial and Operational Metrics | Metric | Q1 2025 | Change vs Q1 2024 | Change vs Q4 2024 | | :--- | :--- | :--- | :--- | | Revenue | $1.2 billion | -2% | +6% | | Homes Sold | 2,946 | -4% | +4% | | Gross Profit | $99 million | -13.2% | +16.5% | | Net Loss | $(85) million | Improved from $(109)M | Improved from $(113)M | | Homes Purchased | 3,609 | +4% | +22% | | Inventory Balance | $2.4 billion | +26% | +9% | | Adjusted EBITDA | $(30) million | Improved from $(50)M | Improved from $(49)M | | Adjusted Net Loss | $(63) million | Improved from $(80)M | Improved from $(77)M | [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Carrie Wheeler highlighted the company's disciplined execution in Q1 2025, which led to improved Adjusted EBITDA and a sharp reduction in Adjusted Net Losses. The company is focused on its plan to drive toward profitability while enhancing its customer experience. Strategically, Opendoor is evolving into a broader selling platform that offers customers more choices, including a cash offer or listing with an agent - The company's Q1 results reflect **disciplined execution**, with a focus on driving towards profitability by improving **Adjusted EBITDA** and reducing **Adjusted Net Losses**[4](index=4&type=chunk) - Opendoor is strategically investing in its future by evolving into a broader selling platform, aiming to provide homeowners with multiple options, such as a direct cash offer or listing with a partner agent[5](index=5&type=chunk) [Q2 2025 Financial Outlook](index=2&type=section&id=Second%20Quarter%202025%20Financial%20Outlook) For the second quarter of 2025, Opendoor projects continued sequential growth and a significant improvement in profitability. The company forecasts revenue between $1.45 billion and $1.525 billion, Contribution Profit between $65 million and $75 million, and a positive Adjusted EBITDA in the range of $10 million to $20 million Q2 2025 Financial Guidance | Metric | Q2 2025 Guidance | | :--- | :--- | | Revenue | $1.45 billion to $1.525 billion | | Contribution Profit | $65 million to $75 million | | Adjusted EBITDA | $10 million to $20 million | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements for Q1 2025 show revenue of $1.153 billion, improved net loss, increased real estate inventory, and a net decrease in cash due to operating activities [Financial Highlights and Operating Metrics](index=4&type=section&id=FINANCIAL%20HIGHLIGHTS%20AND%20OPERATING%20METRICS) In Q1 2025, revenue increased to $1.153 billion from $1.084 billion in the prior quarter, though it was down from $1.181 billion in Q1 2024. Net loss improved sequentially to $(85) million. The company increased its home inventory to 7,080 homes, valued at $2.362 billion, up from 6,417 homes at the end of Q4 2024. However, the percentage of homes held for over 120 days decreased significantly to 27% from 46% in the previous quarter Key Financial and Operating Metrics | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenue (Millions) | $1,153 | $1,084 | $1,181 | | Gross Margin | 8.6% | 7.8% | 9.7% | | Net Loss (Millions) | $(85) | $(113) | $(109) | | Homes Sold | 2,946 | 2,822 | 3,078 | | Homes Purchased | 3,609 | 2,951 | 3,458 | | Homes in Inventory | 7,080 | 6,417 | 5,706 | - The percentage of homes held in inventory for more than 120 days decreased to **27%** at the end of Q1 2025, a significant improvement from **46%** at the end of Q4 2024, but higher than the **15%** in Q1 2024[15](index=15&type=chunk) [Statements of Operations (Income Statement)](index=5&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For Q1 2025, Opendoor reported revenue of $1.153 billion and a gross profit of $99 million. Total operating expenses were reduced to $155 million, down from $201 million in the prior-year period, primarily due to lower sales, marketing, G&A, and technology costs, alongside new restructuring charges. This resulted in a loss from operations of $(56) million and a net loss of $(85) million, or $(0.12) per share, showing improvement from both the prior quarter and the same quarter last year Condensed Consolidated Statements of Operations | (In millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | Revenue | $1,153 | $1,084 | $1,181 | | Gross Profit | $99 | $85 | $114 | | Total Operating Expenses | $155 | $179 | $201 | | Loss from Operations | $(56) | $(94) | $(87) | | Net Loss | $(85) | $(113) | $(109) | | Net Loss Per Share | $(0.12) | $(0.16) | $(0.16) | [Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Opendoor's total assets increased to $3.277 billion from $3.126 billion at the end of 2024, driven by a rise in real estate inventory to $2.362 billion. Total liabilities also grew to $2.632 billion from $2.413 billion, largely due to an increase in the current portion of non-recourse asset-backed debt. Consequently, total shareholders' equity decreased to $645 million from $713 million Condensed Consolidated Balance Sheets | (In millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $559 | $671 | | Real estate inventory, net | $2,362 | $2,159 | | **Total Assets** | **$3,277** | **$3,126** | | Non-recourse asset-backed debt (Total) | $2,133 | $1,924 | | **Total Liabilities** | **$2,632** | **$2,413** | | **Total Shareholders' Equity** | **$645** | **$713** | [Statements of Cash Flows](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, Opendoor used $(279) million in cash from operating activities, a higher usage compared to $(178) million in Q1 2024, primarily due to an increase in real estate inventory. Investing activities provided a net cash of $2 million. Financing activities provided $207 million in cash, a significant shift from a use of $(98) million in the prior-year period, driven by net proceeds from non-recourse debt. Overall, cash, cash equivalents, and restricted cash decreased by $70 million during the quarter Condensed Consolidated Statements of Cash Flows | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(279) | $(178) | | Net cash provided by investing activities | $2 | $22 | | Net cash provided by (used in) financing activities | $207 | $(98) | | **Net Decrease in Cash** | **$(70)** | **$(254)** | | **Cash, cash equivalents, and restricted cash – End of period** | **$693** | **$1,286** | [Non-GAAP Financial Measures and Reconciliations](index=8&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Opendoor utilizes non-GAAP measures like Contribution Profit and Adjusted EBITDA to provide supplemental insights into its financial performance and unit-level economics, with detailed reconciliations from GAAP figures [Explanation of Non-GAAP Measures](index=8&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Opendoor uses non-GAAP financial measures such as Contribution Profit and Adjusted EBITDA to provide supplemental information on its financial performance. Management believes these metrics are useful for evaluating unit-level economics and period-to-period comparisons by excluding certain items that may not be indicative of recurring operating results. Contribution Profit assesses the returns on homes sold, while Adjusted EBITDA is used to evaluate underlying financial performance and operational leverage - The company uses non-GAAP measures like **Adjusted Gross Profit**, **Contribution Profit**, **Adjusted Net Loss**, and **Adjusted EBITDA** as supplemental tools to evaluate financial performance, unit-level economics, and period-to-period comparisons[22](index=22&type=chunk) - **Contribution Profit** is designed to measure the ability to generate returns on homes sold in a period, after accounting for direct costs like home purchase, renovation, holding, and selling costs[24](index=24&type=chunk) - **Adjusted EBITDA** helps management and investors assess underlying performance by excluding non-cash charges, items not directly related to operations, and items not reflective of ongoing results[31](index=31&type=chunk) [Reconciliation of Gross Profit to Contribution Profit](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20MEASURES%20(Gross%20Profit)) For Q1 2025, Opendoor reconciled a GAAP Gross Profit of $99 million to a Contribution Profit of $54 million. The key adjustments included adding back a $13 million inventory valuation adjustment for homes still in inventory and subtracting a $12 million adjustment for homes sold in the period. After further deducting $29 million in direct selling costs and $17 million in total holding costs for sold homes, the resulting Contribution Profit was $54 million, with a Contribution Margin of 4.7% Reconciliation of Gross Profit to Contribution Profit | (In millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Gross profit (GAAP)** | **$99** | **$85** | **$114** | | Inventory valuation adjustment (net) | $1 | $(10) | $(10) | | **Adjusted Gross Profit** | **$100** | **$75** | **$104** | | Direct selling costs | $(29) | $(23) | $(34) | | Holding costs on sales (total) | $(17) | $(14) | $(13) | | **Contribution Profit** | **$54** | **$38** | **$57** | | **Contribution Margin** | **4.7%** | **3.5%** | **4.8%** | [Reconciliation of Net Loss to Adjusted EBITDA](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20MEASURES%20(Net%20Loss)) In Q1 2025, the company reconciled a GAAP Net Loss of $(85) million to an Adjusted EBITDA of $(30) million. Key adjustments to arrive at an Adjusted Net Loss of $(63) million included adding back $14 million in stock-based compensation and $3 million in restructuring costs. To reach Adjusted EBITDA, further adjustments were made, primarily adding back $29 million in property financing interest and $5 million in depreciation and amortization Reconciliation of Net Loss to Adjusted EBITDA | (In millions) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Net loss (GAAP)** | **$(85)** | **$(113)** | **$(109)** | | Stock-based compensation | $14 | $23 | $33 | | Inventory valuation adjustment (net) | $1 | $(10) | $(10) | | Restructuring | $3 | $17 | $— | | **Adjusted Net Loss** | **$(63)** | **$(77)** | **$(80)** | | Depreciation and amortization | $5 | $7 | $11 | | Property financing & other interest | $33 | $32 | $37 | | Interest income | $(5) | $(11) | $(18) | | **Adjusted EBITDA** | **$(30)** | **$(49)** | **$(50)** | | **Adjusted EBITDA Margin** | **(2.6)%** | **(4.5)%** | **(4.2)%** |

Core Insights - Opendoor Technologies Inc. reported its financial results for Q1 2025, showing a revenue of $1.2 billion, a decrease of 2% compared to Q1 2024, but an increase of 6% from Q4 2024 [8][12] - The company aims to drive towards profitability while enhancing its product experience and platform, as stated by CEO Carrie Wheeler [2][3] Financial Performance - Revenue for Q1 2025 was $1.2 billion, down 2% year-over-year but up 6% quarter-over-quarter [8] - Gross profit was $99 million, compared to $114 million in Q1 2024 and $85 million in Q4 2024, resulting in a gross margin of 8.6% [8][12] - The net loss for the quarter was $(85) million, an improvement from $(109) million in Q1 2024 and $(113) million in Q4 2024 [8][12] - Adjusted EBITDA was $(30) million, an improvement from $(50) million in Q1 2024 and $(49) million in Q4 2024, with an adjusted EBITDA margin of (2.6)% [8][12] Operational Metrics - Total homes sold in Q1 2025 were 2,946, down 4% from Q1 2024 but up 4% from Q4 2024 [8] - The inventory balance at the end of Q1 2025 was $2.4 billion, representing 7,080 homes, which is up 26% year-over-year and up 9% quarter-over-quarter [8] - The company purchased 3,609 homes in Q1 2025, an increase of 4% year-over-year and 22% quarter-over-quarter [8] Future Outlook - For Q2 2025, Opendoor expects revenue guidance between $1.45 billion and $1.525 billion [8] - Contribution profit guidance for Q2 2025 is projected to be between $65 million and $75 million [8] - Adjusted EBITDA guidance for Q2 2025 is anticipated to be between $10 million and $20 million [8]

Group 1: Company Performance - Opendoor Technologies' stock dropped 25% in April, reflecting ongoing challenges in the housing market [1] - The company has seen a 25% year-over-year increase in revenue, indicating some internal progress despite market conditions [5] - Opendoor's stock is currently trading at less than $1, representing a 98% decline from its all-time highs, with a price-to-sales ratio of only 0.1 [6] Group 2: Market Conditions - The real estate outlook remains bleak, with home prices at record highs and mortgage applications down 6% year-over-year in April [3] - Pending home sales decreased by 2.8%, and the median U.S. monthly housing payment reached a record high of $2,870 due to rising home prices and interest rates [3] - Although new listings increased by 6.1% and total homes for sale rose by 13.7%, the lack of buyers may limit the impact on Opendoor's business [4] Group 3: Future Outlook - Despite some operational improvements, the stalled housing market poses significant challenges for Opendoor's ability to sell homes [5] - The market currently perceives little upside for Opendoor's stock, raising concerns about it being a potential value trap for investors [7] - There is a possibility for future recovery and disruption in the real estate market, but this may take time [7]

Core Viewpoint - A class action lawsuit has been filed against Open Lending Corporation for allegedly making materially false and misleading statements regarding its business operations and financial performance during the Class Period from February 24, 2022, to March 31, 2025 [1][3]. Summary by Relevant Sections Lawsuit Details - The lawsuit is filed in the United States District Court for the Western District of Texas on behalf of all individuals and entities who purchased Open Lending securities during the specified Class Period [1]. - Investors have until June 30, 2025, to apply to be appointed as lead plaintiff in the lawsuit [1]. Allegations Against Open Lending - The complaint alleges that Open Lending misrepresented the capabilities of its risk-based pricing models [3]. - It is claimed that the company issued materially misleading statements regarding its profit share revenue [3]. - The lawsuit states that Open Lending failed to disclose that its 2021 and 2022 vintage loans had significantly decreased in value compared to their outstanding loan balances [3]. - Allegations include misrepresentation of the underperformance of the company's 2023 and 2024 vintage loans [3]. - As a result of these actions, the positive statements made by the defendants about the company's business and prospects were deemed materially misleading and lacked a reasonable basis [3].

Core Insights - Opendoor is recognized as a significant disruptor in the real estate industry, but its business performance has not met expectations following the rise in interest rates [1] Company Performance - Opendoor was a notable participant in the 2020-2021 SPAC boom, gaining considerable attention during that period [1] - The company's latest results indicate challenges in sustaining growth and profitability in a changing economic environment [1] Future Outlook - Analysts are examining what the future holds for Opendoor, particularly looking ahead to 2025 and the potential impacts of ongoing economic conditions [1]

Company Overview - Opendoor Technologies' shares dropped 23% this week following data indicating that housing sales have slowed to their lowest pace since 2009 [1] - The company's revenue fell 26% in 2024 to $5.2 billion, and its net loss widened to $392 million, suggesting ongoing financial struggles [6] Industry Trends - Housing inventory has increased, but sales have declined as potential buyers are deterred by high prices, elevated interest rates, and economic uncertainty [2] - Existing-home sales dropped 5.9% in March compared to February, marking a 2.4% year-over-year decline [4] - Mortgage rates are currently around 6.8% for a 30-year mortgage, which, while not historically high, is significantly elevated compared to previous years [5] Economic Sentiment - Consumer confidence regarding the economy is at a 12-year low, impacting buyers' willingness to purchase homes [5] - The uncertainty surrounding tariffs and their potential impact on the economy is causing consumers to delay house purchases, further affecting the housing market [7]

Shares of Opendoor Technologies (OPEN -6.88%) plunged 7.4% on Thursday, as of 1:11 p.m. ET.The drop was all the more noticeable since the broader market indexes were up strongly today, with the Nasdaq Composite up 2.3% at that time. While the broader markets were rallying on continued hopes for a de-escalation of the Trump administration's tariff war, the housing sector got some bad news today regarding March housing activity.A plunge in home sales not seen since 2022Today, the National Association of Realt ...

Core Viewpoint - Opendoor aims to simplify the home buying and selling process but faces significant challenges, particularly related to its balance sheet and the management of its inventory [1][5]. Company Overview - Opendoor provides cash offers to home sellers, allowing for quick transactions, although these offers are typically lower than potential market prices if homes were sold traditionally [2]. - The company purchases homes, renovates them, and then sells them at market prices, leveraging its scale across 50 markets to optimize repairs and pricing [3]. Business Model and Strategy - Opendoor is currently refining its business model, focusing on buying more properties during off-peak seasons and selling during peak seasons, indicating a strategic shift in operations [4]. - The company is still in the early stages of achieving sustainable profitability, which is reflected in its current financial performance [4]. Financial Concerns - The balance sheet is a critical area of concern, as Opendoor relies heavily on debt to finance home purchases, which can lead to increased financial strain if homes do not sell quickly [5][6]. - A significant portion of Opendoor's inventory is aging, with 46% of homes on the market for over 120 days by the end of 2023, raising concerns about liquidity and potential markdowns [7][8]. Risks Associated with Debt - The use of debt to acquire illiquid assets poses a substantial risk, as prolonged holding periods can lead to increased interest expenses and missed opportunities for purchasing more easily sellable homes [8][9]. - Investors are cautioned about the implications of unsold inventory and the potential need for drastic price reductions to facilitate sales, which could adversely affect the company's financial health [7][9].

Core Viewpoint - Opendoor Technologies Inc. will report its first quarter 2025 financial results on May 6, 2025, and will host a conference call to discuss these results [1][2]. Group 1: Financial Reporting - The financial results for the period ended March 31, 2025, will be announced after market close on May 6, 2025 [1]. - A conference call and webcast will take place at 2:00 p.m. PT (5:00 p.m. ET) on the same day to discuss the company's business and financial results [1][2]. Group 2: Company Overview - Opendoor is a leading e-commerce platform for residential real estate transactions, aiming to simplify the process of buying and selling homes [2]. - Since its inception in 2014, Opendoor has provided a straightforward and reliable method for individuals across the U.S. to engage in real estate transactions [2]. - The company operates in various markets nationwide and is composed of a team focused on innovation and problem-solving in the real estate sector [2].

As a real estate company, Opendoor (OPEN -0.65%) approaches the market from a unique direction as the buyer and seller of thousands of homes each year. Even as other companies like Zillow have exited this business model, Opendoor still operates in 50 markets today, and it has thousands of homes in its inventory.Those homes, worth $2.2 billion at the end of last year, represent both a challenge and opportunity for Opendoor.What does Opendoor do?Opendoor describes its mission as transforming the U.S. resident ...