Opendoor, which buys and resells homes, bought far more homes in the third quarter but lost more money. If you are thinking of selling your home or own the stock, here is what changed.
Opendoor more than quadrupled its home purchases in the third quarter, but its net loss widened to $218 million as the company expanded inventory in a difficult resale market.
The residential real estate platform bought 4,865 homes, up from 1,169 a year earlier, according to its November 5 earnings release. Revenue rose 12% to $1.022 billion, while gross margin fell to 3.7% from 7.2%.
Home purchases outpace sales
Opendoor sold 2,728 homes during the quarter, compared with 2,568 a year earlier. At September 30, it held 7,596 homes valued at $2.568 billion, up from 3,139 homes valued at $1.053 billion a year earlier.
For sellers, the figures show that Opendoor is making more direct purchases. For buyers and investors, the larger inventory and lower gross margin show the pressure involved in reselling those homes as market conditions weaken.
The company said homes listed for more than 120 days made up 18% of its listed inventory, compared with 51% a year earlier. That measure describes listed homes, rather than every property in its inventory.
Losses widen despite revenue growth
The $218 million net loss under generally accepted accounting principles compared with a $90 million loss in the third quarter of 2025.
On its separate adjusted measures, Opendoor reported an adjusted EBITDA loss of $31 million, compared with a $33 million loss a year earlier, and an adjusted net loss of $66 million, compared with $61 million.
Those non-GAAP measures exclude selected items and are not the same as the company’s reported net loss. Opendoor included reconciliations in the earnings release, which it also furnished with a Securities and Exchange Commission filing.
Profitability target is behind schedule
Opendoor said it remains focused on reaching positive adjusted net income by the end of 2026, measured on a twelve-month forward basis, but acknowledged that a slower market has put it behind its goal.
For the fourth quarter, it expects revenue to grow at least 40% from a year earlier. It also expects contribution profit dollars to decline from the third quarter as it continues selling into a difficult market, and forecasts an adjusted EBITDA loss of $70 million to $85 million.
The company expects approximately $90 million in fourth-quarter stock-based compensation. Its outlook points to continued acquisition growth alongside near-term pressure on resale margins and operating results.
JBizNews Desk | San Francisco
© JBizNews.com. All rights reserved. Unauthorized reproduction or redistribution is strictly prohibited.
