Opendoor Technologies

Opendoor Technologies (OPEN) Q4 2024 Earnings

Reported Feb 27, 2025 at 4:18 PM ET · SEC Source

Q4 24 EPS

$-0.16

MISS 17.04%

Est. $-0.14

Q4 24 Revenue

$1.08B

BEAT +10.35%

Est. $982.3M

vs S&P Since Q4 24

+237.7%

BEATING MARKET

OPEN +264.7% vs S&P +27.1%

Full Year 2024 Results

FY 24 EPS

$-0.56

FY 24 Revenue

$5.15B

Market Reaction

Did OPEN Beat Earnings? Q4 2024 Results

Opendoor closed out 2024 with a Q4 that topped the high end of its own guidance across every key metric, yet the results still painted a picture of a company navigating a punishing housing market. Revenue came in at $1.08 billion for the quarter, up … Read more Opendoor closed out 2024 with a Q4 that topped the high end of its own guidance across every key metric, yet the results still painted a picture of a company navigating a punishing housing market. Revenue came in at $1.08 billion for the quarter, up 25% year-over-year, while a loss per share of $0.16 reflected ongoing restructuring charges and legal accruals that widened the GAAP net loss to $113 million from $91 million a year ago. The single most decisive factor shaping the quarter was management's deliberate decision to raise spreads in the second half of 2024 as macro signals deteriorated, a move that compressed volume but protected margins, helping full-year Contribution Margin recover to 4.7% from negative 3.7% in 2023. Opendoor is also broadening its seller offerings beyond cash purchases, leaning into high-intent sellers as a growth lever. Looking ahead, Q1 2025 guidance of $1.00 billion to $1.07 billion reflects a slow seasonal start, with clearance rates running approximately 25% below last year and no near-term mortgage rate relief in sight.

Key Takeaways

  • 25% year-over-year Q4 revenue growth driven by higher homes sold (2,822 vs. 2,364)
  • Contribution Margin improvement to 4.7% for full year from (3.7)% in 2023
  • Adjusted Net Loss improved to $(258) million from $(778) million year-over-year
  • Cost-efficiency program and workforce reduction in Q4 2024
  • Separation of Mainstay subsidiary completed in Q3 2024
  • Improved conversion rates from pricing model and product flow enhancements
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OPEN YoY Financials

Q4 2024 vs Q4 2023, source: SEC Filings

“In 2024, we took decisive actions to streamline operations and optimize our cost structure to better position the Company to navigate the persistent housing market headwinds and drive toward our longer-term profitability target. As a result, we significantly reduced Adjusted Net Losses in the fourth quarter and for the year while delivering year-over-year revenue growth and improvements to Contribution Profit and Adjusted EBITDA.”

— Carrie Wheeler, Q4 2024 Earnings Press Release