Opendoor — Third Quarter 2026 Earnings Summary

Financial Performance

• Revenue for the quarter ended September 30, 2026, was $1,022 million, representing a 12% year-over-year increase from $915 million in Q3 2025 and a 16% quarter-over-quarter increase from $883 million in Q2 2026.
• GAAP Gross profit was $38 million with a Gross Margin of 3.7%, compared to $66 million (7.2%) in Q3 2025.
• Net loss was $218 million, an increase from a $90 million net loss in Q3 2025.
• Non-GAAP Contribution Profit was $34 million with a Contribution Margin of 3.3%, up from $20 million (2.2%) in Q3 2025.
• Non-GAAP Adjusted EBITDA was a loss of $31 million with a margin of (3.0%), compared to a loss of $33 million (3.6%) in Q3 2025.
• Non-GAAP Adjusted Net Loss was $66 million, compared to $61 million in Q3 2025.
• Inventory value at period end was $2,568 million, up from $1,053 million in Q3 2025.
• Cash and cash equivalents were $910 million, down from $962 million at December 31, 2025.
• Total liabilities were $3,148 million, up from $1,402 million at December 31, 2025, driven by a significant increase in asset-backed debt ($2,364 million total) and convertible senior notes ($698 million total).
• Stock-based compensation for the quarter was $108 million ($12 million regular + $96 million market condition RSUs).

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, though management noted they are currently behind this goal due to a slower market.
• Q4 2026 Revenue guidance expects growth of at least 40% year-over-year.
• Q4 2026 Contribution Margin guidance indicates Contribution Profit dollars will 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.
• Q4 2026 Stock-Based Compensation is expected to be approximately $90 million.
• Management highlighted that resale demand, pricing, and contract pace can change quickly.

Business Segments and Product Lines

• Homes purchased increased to 4,865 in Q3 2026 from 1,169 in Q3 2025, a 316% year-over-year increase.
• Homes sold increased to 2,728 in Q3 2026 from 2,568 in Q3 2025.
• Homes in inventory at period end reached 7,596, up from 3,139 in Q3 2025.
• 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.
• 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.
• Homes listed for more than 120 days represented 18% of listed inventory at September 30, 2026, down from 51% a year earlier.
• Trailing 12-month marketing expense per acquired home decreased to $2.8 thousand from $6.5 thousand in the prior-year period (down 57%).
• Trailing 12-month operations expense per acquired home decreased to $4.0 thousand from $6.3 thousand in the prior-year period (down 36%).
• Fixed operating expenses were $37 million in Q3 2026, compared to $35 million in Q2 2026.

Market and Competitive Landscape

• The addressable U.S. market share for signed acquisitions grew roughly 4.4 times year-over-year.
• The percentage of homes on the market for greater than 120 days was 18% at period end, compared to 30% for the overall market.
• Management stated that broader product choices, less friction, and better customer education are driving higher true seller conversion at comparable spreads.

Risks and Challenges

• A slower housing market has impacted progress toward the goal of positive Adjusted Net Income by year-end 2026.
• Forward-looking statements note risks related to the health of the economy, financial conditions, residential housing market downturns, interest rates, inflation, and home price fluctuations.
• Risks include the ability to obtain sufficient financing, resell purchased homes profitably, and manage inventory valuation adjustments.
• Potential dilutive effects from the conversion of outstanding convertible notes into common stock.
• Regulatory instability, compliance complexities, and changes in laws affecting the business.

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 contrary to previous conventional wisdom, the company has demonstrated the ability to grow without overpaying, operate more efficiently, and use less capital per acquisition.
• The tone emphasized a focus on scaling acquisitions, improving unit economics, and building operating leverage through automation and shared systems.
• Management noted they are betting on themselves to deliver similar changes in resale as seen in the seller funnel.

Other Key Points

• The company issued convertible senior notes with proceeds of $650 million (net of discount) during the nine months ended September 30, 2026.
• Proceeds from asset-backed debt totaled $1,766 million for the nine months ended September 30, 2026.
• The company repurchased and retired common stock for $161 million during the nine months ended September 30, 2026.
• A $15 million cash CEO make-whole provision was expensed in prior periods, with related expenses amortized over the service period.
• The company directs investors to accountable.opendoor.com for weekly tracking of acquisition contracts and product launches.
• The press release includes a reconciliation of GAAP to Non-GAAP measures including Adjusted Gross Profit, Contribution Profit, Adjusted Net Loss, and Adjusted EBITDA.