Opendoor(US:OPEN) ZACKS·2025-11-07 18:41Core Insights - Opendoor Technologies Inc. reported mixed third-quarter 2025 results, with revenues exceeding estimates but losses wider than expected, attributed to a challenging housing market and reduced resale volumes [1][2][3] Revenues & Earnings - Third-quarter revenues were $915 million, a decline of 33.6% year over year from $1.38 billion, but above the Zacks Consensus Estimate of $851.7 million [2] - The company sold 2,568 homes, down from 3,615 homes sold a year ago, reflecting lower acquisition activity [2] - An adjusted loss of 8 cents per share was reported, wider than the expected loss of 7 cents, compared to a loss of 1 cent a year earlier [3] Margins & Profitability - Gross profit decreased to $66 million from $105 million a year ago, with gross margin slightly declining to 7.2% from 7.6% [4] - Contribution profit fell to $20 million from $52 million, with contribution margin narrowing to 2.2% from 3.8% [4] - Management indicated that margin pressures were due to the clearance of older inventory and lower resale velocity, but emphasized future improvements through pricing and automation [4] Balance Sheet & Liquidity - As of September 30, 2025, cash and cash equivalents totaled $962 million, up from $671 million at the end of 2024, with total liquidity at $1.45 billion [5] - Long-term debt decreased to $1.34 billion from $2.30 billion a year ago, reflecting deleveraging and refinancing efforts [5] - Shareholders' equity increased to $811 million from $713 million, with no share repurchases reported during the quarter [5] Outlook - Management did not provide traditional quarterly guidance but expects fourth-quarter 2025 revenue to decline approximately 35% sequentially due to low inventory levels [6] - Contribution margins are projected to dip below third-quarter levels before improving towards year-end [6] - The company aims to achieve breakeven adjusted net income by the end of 2026, focusing on scaling acquisitions and enhancing unit economics [6]