Core Viewpoint - Opendoor Technologies' shares declined due to weaker-than-expected guidance and a shift to an agent-led sales model, raising concerns over losses and strategic direction despite a return to profitability last quarter [1][5]. Financial Performance - The company reported second-quarter revenue of $1.567 billion, a 4% increase year-over-year, surpassing the forecast of $1.516 billion, but contribution profit of $69 million fell short of the $73 million estimate [6]. - Management guided third-quarter revenue to be between $800 million and $875 million, significantly below the $1.039 billion projection [6]. - Adjusted EBITDA for the third quarter is expected to be a loss of $28 million to $21 million [6]. Analyst Ratings and Forecasts - Analyst Ryan Tomasello downgraded Opendoor's stock from Market Perform to Underperform, maintaining a price forecast of $1 [1][5]. - Revised financial forecasts indicate an adjusted EPS loss of 27 cents for 2025 and 22 cents for 2026, down from previous estimates of 21 cents and 14 cents, respectively [3]. - Adjusted EBITDA outlook for 2025 and 2026 has been lowered to losses of $72 million and $40 million, respectively, from earlier projections of a $44 million loss and a $30 million gain [4]. Strategic Direction - The management's guidance for second-half revenue is approximately 40% below consensus, indicating potential challenges ahead [5]. - The shift to an agent-led distribution model may lead to widening losses and strategic uncertainty, impacting share prices [5][7]. - A similar sequential revenue drop is expected in the fourth quarter due to a mix of older, lower-margin homes, delaying margin improvement until after 2025 [7].

Core Viewpoint - ADAR1 Capital Management, the largest stockholder of Keros Therapeutics, expresses significant concerns regarding the company's capital allocation, strategic direction, and ongoing underperformance, leading to a decision to withhold votes for two directors at the upcoming Annual Meeting [1][4][11] Company Performance - Keros Therapeutics has shown alarming clinical results for its drug candidates KER-012 and KER-065, raising concerns about further investment in these programs and the potential risk to shareholder value [3][4] - The company has generated negative total stockholder returns across all relevant timeframes since its IPO, underperforming against proxy peers and market benchmarks [7][8] Financial Analysis - Keros' current market value does not reflect the estimated net present value of potential milestone payments from its partnership with Takeda, indicating that investors assign no value to the rest of Keros' pipeline [9] - The company holds over $720 million in cash as of March 31, 2025, which is viewed as excessive and unproductive given its current strategic direction [9][6] Recommendations - ADAR1 recommends restructuring the business, reducing headcount by at least 70%, returning excess cash to stockholders, and ensuring that stockholders benefit from the Takeda partnership through mechanisms like contingent value rights [14] - The firm believes that these initiatives could deliver between $24 and $35 per share in value for stockholders [9] Governance Concerns - ADAR1 has lost confidence in Keros' management and board, advocating for a board that will challenge management and act urgently to address the company's challenges [10][11] - The firm intends to vote for the inclusion of significant stockholders on the board to ensure alignment with long-term strategic decision-making [12]