Opendoor Falls Behind Year-End Profitability Goal

The Tip Desk · November 11, 2026 · 3 min read

The company said it is currently behind a twelve-month Adjusted Net Income target it had previously called a clear path, as net loss widened to $218 million.

Opendoor Technologies Inc. (OPEN) said it is currently behind its goal of Adjusted Net Income positive by the end of 2026 on a twelve-month go-forward basis, after a slower housing market put the iBuyer off that path.

The company previously said it would generate positive Adjusted Net Income as acquisition cohorts flowed through to resale. It now says it is driving to that outcome and intends to catch up.

Revenue for the quarter ended September 30, 2026 was $1,022 million, up 12% from $915 million a year earlier. Gross profit fell to $38 million from $66 million a year earlier, and gross margin compressed to 3.7% from 7.2%. Net loss widened to $218 million from $90 million a year earlier.

Homes purchased more than quadrupled, to 4,865 from 1,169 a year earlier. Cash Now, More Later, which requires less capital upfront per home, accounted for more home purchases in the quarter than all products combined in the year-ago period. Signed acquisition volume represented an estimated 0.56% of market share in the addressable U.S. market, compared with an estimated 0.13% a year earlier.

Homes sold were 2,728. Contribution profit was $34 million, or a 3.3% contribution margin, versus $20 million and 2.2% a year earlier. Adjusted EBITDA loss was $31 million. Adjusted net loss was $66 million.

Inventory built. Homes in inventory at period end rose to 7,596 from 3,139 a year earlier, and inventory value rose to $2,568 million from $1,053 million. Homes under contract to purchase at period end were 1,780, compared with 526 a year earlier. The percentage of listed homes on the market for more than 120 days was 18% at September 30, 2026, compared with 51% a year earlier and 30% for the overall market.

For the twelve months ended September 30, 2026, marketing expense per acquired home decreased to $2.8 thousand from $6.5 thousand in the prior-year period. Operations expense per acquired home decreased to $4.0 thousand from $6.3 thousand. Fixed operating expenses were $37 million.

Mortgage originations increased over 400% quarter-over-quarter. Chief executive Kaz Nejatian said the company is building a stronger company for the long term and is betting on itself to deliver the same change in resale it has shown in the seller funnel.

For the fourth quarter of 2026, Opendoor expects revenue to grow at least 40% year-over-year. It expects Contribution Profit dollars to decline sequentially as it continues selling into a difficult market, with a focus on moving homes. It expects an Adjusted EBITDA loss of $70 million to $85 million and stock-based compensation of approximately $90 million. The company said resale demand, pricing and the pace at which homes go under contract can change quickly.