Opendoor Technologies Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.87%.
Did OPEN Beat Earnings? Q1 2025 Results
Opendoor Technologies posted a mixed first quarter for 2025, beating on revenue while falling short on the bottom line as the iBuyer navigates one of the most challenging housing backdrops in recent memory. Revenue came in at $1.15 billion, clearing the $1.06 billion consensus by 8.85%, though it still slipped 2.4% from a year earlier as the company sold 2,946 homes into a market where mortgage rates hover near 7% and clearance rates have fallen nearly 25% year-over-year. The earnings picture was less encouraging, with EPS of -$0.12 missing the -$0.10 consensus estimate by 15.94%, as a deeply negative operating cash flow of $279 million, driven by a $212 million inventory build, weighed on results. The single brightest signal may be forward-looking: Opendoor's Q2 guidance calls for revenue of $1.45 billion to $1.53 billion and, notably, Adjusted EBITDA of $10 million to $20 million, which would mark the company's first positive Adjusted EBITDA quarter in recent history, even as it sharply curtails acquisitions to roughly 1,700 homes amid lingering concerns about its stock exchange listing status.
- Revenue exceeded high end of guidance range ($1.0B-$1.075B) at $1.153B
- Improved conversion performance enabled 4% YoY growth in home acquisitions despite higher spread levels
- Fixed operating expenses reduced by $19 million versus Q1 2024 to $39 million
- Adjusted Operating Expenses declined to $84 million from $107 million in Q1 2024
- Contribution Margin of 4.7% came in at high end of guidance range
- Adjusted EBITDA loss of $(30) million ahead of high end of guidance range
“We've spent the last decade building a modern real estate platform—designed to deliver simplicity, certainty, and a customer-first experience. We entered 2025 with a clear plan to drive toward profitability while strengthening our product experience and platform. Our first-quarter results reflect disciplined execution: we improved Adjusted EBITDA and sharply reduced Adjusted Net Losses.”
Opendoor Technologies CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Opendoor expects revenue of $1.45 billion to $1.525 billion, Contribution Profit of $65 million to $75 million (implying Contribution Margin of 4.5% to 4.9%), Adjusted EBITDA of $10 million to $20 million, and stock-based compensation of $13 million to $15 million. The company expects approximately 1,700 home acquisitions in Q2, a significant pullback from Q1's 3,609 as it has increased spreads each month in 2025 to reflect the slowing market. Marketing spend is expected to be meaningfully lower in Q2 than Q1. While the acquisition slowdown will pressure second-half revenue, the company aims to deliver year-over-year Contribution Margin improvements via operating efficiencies and wider spreads. Opendoor expects lower Adjusted Net Losses in 2025 versus the prior year.
OPEN YoY Financials
Figures from SEC filings and company reports. Not investment advice.