Opendoor(US:OPEN) 247Wallst·2025-11-07 14:21Core Viewpoint - Opendoor Technologies reported earnings that exceeded revenue expectations but fell short on profit, leading to a downward adjustment in near-term expectations and a focus on a potential turnaround in 2026 [2][4]. Financial Performance - Revenue for the quarter was $915 million, surpassing the consensus estimate of $882.3 million, but represented a 33.5% decline year-over-year [5]. - Adjusted EPS was -$0.12, missing expectations by five cents, while the net loss widened to $90 million compared to $78 million the previous year [4][5]. - Gross margin decreased to 7.2% from 11.5% a year ago, indicating margin pressure [6][5]. Strategic Outlook - The company anticipates a 35% sequential decline in revenue for Q4 due to low inventory levels following a slow buying period [6]. - New CEO Kaz Nejatian aims to refocus Opendoor as a software and AI company, targeting adjusted net income breakeven by the end of 2026 [7]. - The shift in strategy involves tightening spreads and enhancing operational efficiency, which introduces execution risks as the company transitions from its previous model [9]. Capital and Financial Maneuvers - Opendoor raised nearly $200 million through an ATM in September and refinanced a significant portion of its 2030 convertible debt with equity, which may lead to share dilution [8]. - The board declared a warrant dividend, adding complexity to the capital structure [8].