Opendoor is launching a share repurchase program as part of a series of transactions the company said would add “$440 million of growth capital to the balance sheet at a 0% coupon while reducing shares outstanding by 5%.”
These transactions, which were announced Thursday, consist of a $650 million offering of 0% Convertible Senior Notes due 2030 and a $158 million repurchase of roughly 45.3 million shares of Opendoor common stock. The company said the offering is expected to settle on August 19, 2026, subject to customary closing conditions.
The company said it expects no net share issuance until its stock exceeds $10.38 per share. As of Thursday morning, the firm’s current share price was $3.52.
“Capital should create value for existing shareholders – not come at their expense,” Kaz Nejatian, the CEO of Opendoor, said in a statement. “How we finance growth matters as much as the growth itself. Quarter after quarter, we are executing against the promises we made. This capital gives us additional capacity to accelerate acquisitions and footprint while maintaining the capital discipline that got us here.”
Second Quarter financials
This announcement comes a little over a week after the iBuyer announced its Q2 2026 earnings. During the quarter, Opendoor generated $883 million in revenue, down from the $1.567 billion it reported during the second quarter of 2025. Despite this drop, the company said investors could expect to see at least a 20% annual increase in revenue for the year.
In addition to the decline in revenue, Opendoor reported a net loss of $162 million, up from the $29 million net loss it recorded a year ago.
While these financial results may not paint the best picture, company executives say the firm is doing very well. Central to this feeling of optimism is the number of homes Opendoor purchased during the quarter, which rose by 2,621 properties year-over-year to 4,378 homes, with 5,459 homes in inventory at the end of a quarter, up by 921 homes year-over-year.
The company also highlighted that it generated 6,908 acquisition contracts during the quarter. The last time Opendoor generated over 6,000 contracts was in Q2 2022, when the company spent over $80 million in marketing, compared to just $5 million this quarter. Opendoor also had 2,310 homes under contract to purchase at the end of the quarter, up from 393 homes a year ago.
“Right now, we’re signing more than 500 contracts every single week. Last week, we signed around 700. That’s our highest contract week in years,” Nejatian said during the company’s second quarter earnings call with investors and analysts. “That’s over five times higher year-over-year, and five times higher since I joined the company. Just think about when we’re doing this. We’re doing this in the weakest housing market in a generation, and in the worst season of the year for us. The spring and summer seasons are basically the only times of the year where the traditional real estate system still kind of actually works, right? Over 500 sellers are still saying yes to Opendoor every single week.”
Opendoor also noted that the share of homes on the market over 120 days dropped to 9% compared to 10% for the first quarter of the year and 36% a year ago. Additionally, operations expenses per acquisition close was down to $3,000, compared to $5,000 a quarter ago and $8,400 a year ago.
However, the company sold 2,339 homes during the quarter, a year-over-year decrease of 1,960 homes.
The turnaround
While Nejatian believes things at Opendoor are turning around, he acknowledged that the process has not been easy.
“Turnarounds are really hard. We’re 10 months now into this process and really proud of what we’ve done. If we freeze the company, we would become adjusted net income (ANI) profitable even if the macro keeps punching us in the face,” he said. “We’re going to become ANI profitable on the path to fulfilling our mission and becoming a meaningful company for this country. That does not mean that everything between here and there will be just perfectly smooth.”
A focus on home loans
As Opendoor looks to further its growth and impact, it is refocusing some of its energy on Opendoor Home Loans. According to executives, in Colorado, where they first launched the product, they expect over half of all of its scheduled resale closes to be financed with Opendoor Home Loans.
Additionally, just six weeks after launching Opendoor Home Loans in Texas, Nejatian said nearly one in five of the firm’s scheduled closes are being financed through the company’s lending arm.
“Texas shows where a market can be in just six weeks, and Colorado is where a market can be with some seasoning. Neither of these are ceilings,” he said.
Nejatian said that Opendoor is looking to make getting a mortgage and buying a home “one integrated transaction” as they look to reduce friction.
“Friction destroys the process, and getting rid of it expands our margin, reduces risk and builds a real flywheel between our buying engine and our selling engine. The best place to sell a home becomes the best place to buy one. At our core, our job is simple: remove friction from [the] homeownership process,” Nejatian said.
Nejatian also acknowledged that this is not the first time Opendoor has tried a mortgage product, but unlike before, he believes this iteration will succeed because, instead of awkwardly trying to bolt a loan on to a transaction, the Opendoor Home Loans of today “sits inside the process.”
Looking ahead, Nejatian acknowledged that Opendoor is experiencing some growing pains, but he still firmly believes it’s on its way to becoming something great.
“We’re coining a new category, the Pegasus. Not a company that was magical from the beginning, but a company that had to grow its wings in public. This is what transformations look like midstream. The changes are real before the financial statements catch up,” he said. “That awkwardness is part of the process. Opendoor’s really starting to feel that way to me. Awkward flight. We still have some awkward growing pains, but our wings are growing, and it really feels like this thing is taking off.”
