Opendoor — Q3 2026 Earnings Summary

Financial Performance:

• Revenue increased 12% year-over-year to $1,022 million, compared to $915 million in Q3 2025, and rose 16% quarter-over-quarter from $883 million in Q2 2026.
• GAAP gross profit was $38 million with a gross margin of 3.7%, down from $66 million (7.2% margin) in Q3 2025.
• Net loss for the quarter was $218 million, an increase from $90 million in Q3 2025.
• Non-GAAP Contribution Profit was $34 million with a Contribution Margin of 3.3%, up from $20 million (2.2% margin) in Q3 2025.
• Non-GAAP Adjusted EBITDA was a loss of $31 million (margin of -3.0%), compared to a loss of $33 million (margin of -3.6%) in Q3 2025.
• Non-GAAP Adjusted Net Loss was $66 million, compared to $61 million in Q3 2025.
• Fixed operating expenses were $37 million in Q3 2026, compared to $35 million in Q2 2026.
• Cash and cash equivalents were $910 million at period end, down from $962 million at December 31, 2025.
• Total assets were $3,740 million at September 30, 2026, compared to $2,407 million at December 31, 2025.
• Total liabilities were $3,148 million at September 30, 2026, compared to $1,402 million at December 31, 2025.
• Asset-backed debt increased significantly, with the current portion rising to $2,016 million and the non-current portion at $348 million.
• Convertible senior notes current portion was $59 million, while the non-current portion was $639 million.

Guidance and Future Outlook:

• The company aims to achieve Adjusted Net Income positive by the end of 2026 on a twelve-month go-forward basis, noting they are currently behind the goal but intend to catch up.
• Q4 2026 revenue guidance expects growth of at least 40% year-over-year.
• Q4 2026 Contribution Profit dollars are expected to decline sequentially as the company continues selling into a difficult market.
• Q4 2026 Adjusted EBITDA is expected to be a loss between $70 million and $85 million.
• Stock-based compensation for Q4 2026 is expected to be approximately $90 million.
• Management notes that resale demand, pricing, and the pace of homes going under contract can change quickly.

Business Segments and Product Lines:

• Homes purchased increased 316% year-over-year to 4,865 in Q3 2026, compared to 1,169 in Q3 2025.
• Homes sold increased 6% year-over-year to 2,728 in Q3 2026, compared to 2,568 in Q3 2025.
• Homes in inventory at period end were 7,596, up from 3,139 in Q3 2025.
• Inventory value at period end was $2,568 million, up from $1,053 million in Q3 2025.
• Homes listed for more than 120 days represented 18% of listed inventory at September 30, 2026, down from 51% a year earlier.
• The "Cash Now, More Later" product, which requires less capital upfront, accounted for more acquisitions in Q3 2026 than all products combined in Q3 2025.
• Mortgage originations increased over 400% quarter-over-quarter.
• Trailing twelve-month marketing expense per acquired home decreased 57% to $2.8 thousand from $6.5 thousand.
• Trailing twelve-month operations expense per acquired home decreased 36% to $4.0 thousand from $6.3 thousand.

Market and Competitive Landscape:

• Signed acquisition volume represented an estimated 0.56% of market share in the addressable U.S. market in Q3 2026, compared to 0.13% in Q3 2025, representing roughly 4.4 times the prior-year level.
• The percentage of homes on the market for more than 120 days in the overall market was 30% at September 30, 2026, compared to 18% for Opendoor's listed inventory.
• Management stated they are seeing dramatically higher true seller conversion at comparable spreads than in previous years.

Risks and Challenges:

• A slower housing market has put the company behind its goal of positive Adjusted Net Income by the end of 2026.
• The company faces risks related to the current and future health of the economy, financial conditions, and residential housing market, including extended downturns or slowdowns.
• Risks include fluctuations in home prices, housing inventory, interest rates, and inflation.
• The company must manage its ability to acquire and resell homes profitably and access sufficient financing.
• Potential dilution from the conversion of outstanding convertible notes into common stock is a risk.
• Regulatory instability and compliance complexities within the real estate industry pose challenges.

Management Commentary and Tone:

• CEO Kaz Nejatian expressed increased confidence in the company one year after launching "Opendoor 2.0," stating they are building a stronger, more capable company for the long term.
• Management highlighted that progress contradicts conventional wisdom that Opendoor could not grow without overpaying or operating inefficiently.
• The company is focusing on automation, shared systems, and connected workflows to drive operating leverage.
• Management is betting on delivering similar changes in resale efficiency as seen in the seller funnel.

Other Key Points:

• The company operates nationwide in the U.S. residential real estate market.
• Opendoor utilizes a website (accountable.opendoor.com) and social media channels for ongoing disclosure of acquisition contracts and product launches.
• The press release includes detailed reconciliations of non-GAAP measures (Adjusted Gross Profit, Contribution Profit, Adjusted Net Loss, Adjusted EBITDA) to GAAP financial statements.
• The company disclosed a $15 million cash make-whole provision and a $15 million restricted stock unit award related to the CEO's appointment in September 2025, with expenses expensed over the service period.
• The company reported a loss on extinguishment of debt of $1 million in Q3 2026, compared to a gain of $1 million in Q3 2025.