Opendoor Technologies (OPEN) Q4 2025 earnings summary

Executive summary

• Achieved 46% quarter-over-quarter growth in homes purchased and reduced inventory days in possession by 23%.

• Delivered on three key goals: scaled acquisitions, improved unit economics and resale velocity, and built operating leverage, with significant progress in Q4 2025.

• October 2025 acquisition cohort achieved record contribution margins and resale velocity, validating operational changes and marking the best-performing October in company history.

• Transitioned to Opendoor 2.0, emphasizing AI-driven operations, product innovation, and leadership transformation.

• Progress made on scaling acquisitions, improving unit economics, and building operating leverage, with fixed operating expenses down $2M quarter-over-quarter and $8M year-over-year.

Financial highlights

• Q4 2025 revenue was $736 million, a 20% decline quarter-over-quarter but better than the guided 35% decline; full-year 2025 revenue was $4,371 million, down from $5,153 million in 2024.

• GAAP gross profit was $57 million (7.7% margin), up 50 bps sequentially; contribution profit was $7 million (1% margin), down from Q3 due to legacy inventory.

• Adjusted EBITDA loss was $43 million, exceeding guidance; net loss was $1.1 billion, including a $933 million non-cash loss from convertible note refinancing.

• Adjusted net loss (excluding refinancing) was $62 million, nearly flat from Q3.

• Ended Q4 with $962 million in unrestricted cash and $925 million in net inventory.

Outlook and guidance

• Targeting adjusted net income profitability by end of 2026 on a 12-month go-forward basis.

• Expecting Q1 2026 revenue to decrease ~10% quarter-over-quarter due to low starting inventory.

• Contribution margin expected to improve, exiting Q1 at the highest level since Q2 2024.

• Q1 2026 adjusted EBITDA loss projected in the low-to-mid $30 million range.

• Aiming for 6,000 quarterly home acquisitions by Q4 2026, with acquisition ramp weighted to the back half of the year.