Companies /Real Estate

Opendoor Technologies Inc

NASDAQ: OPEN Real Estate Services
$3.29
▼ $0.09 (−2.66%) today
Markets closed · 10:00am ET

Q4 2024 Earnings

Reported Feb 27, 2025, 4:18pm ET · SEC source
$-0.16
Miss −17.04%
EPS · est. $-0.14
$1.1B
Beat +10.35%
Revenue · est. $982.3M
−19.4%
Trailing market
OPEN vs S&P since report
7 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
−4%0+4%+8%Feb 27Feb 28report 4:18pm ETearnings+1.5%−3.7%
−4%0+4%+8%Feb 27Feb 28earnings+1.5%−3.7%
OPEN −3.7%S&P 500 +1.5%
−4%0+4%+8%Feb 27Feb 28report 4:18pm ETearnings+1.4%−3.7%
−4%0+4%+8%Feb 27Feb 28earnings+1.4%−3.7%
OPEN −3.7%NASDAQ +1.4%
−18%−9%0+9%Feb 26Mar 7report 4:18pm ETearnings−1.8%−12.3%
−18%−9%0+9%Feb 26Mar 7earnings−1.8%−12.3%
OPEN −12.3%S&P 500 −1.8%
−18%−9%0+9%Feb 26Mar 7report 4:18pm ETearnings−2.0%−12.3%
−18%−9%0+9%Feb 26Mar 7earnings−2.0%−12.3%
OPEN −12.3%NASDAQ −2.0%
−6.29%
Day of report
−9.70%
Next session
−10.45%
One week
−25.00%
30 days

S&P 500 over the same 30 days: −5.59%.

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 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

“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.”

Opendoor Technologies CEO, on the earnings call

Forward Guidance & Outlook

For Q1 2025, Opendoor guided revenue of $1.0 billion to $1.075 billion, Contribution Profit of $40 million to $50 million (Contribution Margin of 4.0% to 4.7%), non-cash stock-based compensation of $13 million to $15 million, and Adjusted EBITDA loss of $(50) million to $(40) million. The company expects home acquisitions to exceed 3,500 in Q1, up slightly year-over-year, with a sequential decline in acquisitions expected in Q2 due to marketing strategy adjustments and elevated spreads. Management noted a particularly slow start to 2025 with clearance rates approximately 25% below last year and no near-term mortgage rate relief expected. The company believes 5% to 7% remains an appropriate annual Contribution Margin target, though quarterly variability is expected. Management expects the successful implementation of 2025 priorities will allow meaningful improvement in Adjusted Net Loss for the year compared to 2024.

OPEN YoY Financials

Revenue$1.1B
Gross Profit$85.0M
Operating Income$-94,000,000
Net Income$-113,000,000

Figures from SEC filings and company reports. Not investment advice.