Opendoor’s 2025 sales decreased 17.9% to $4.37 billion. However, a quarter-over-quarter recovery in deal values from the third to fourth quarters has given company leaders and investors hope that profitability will return.
After a tough 2025 that included a major executive overhaul and avoiding Nasdaq delisting, Opendoor said it is on track for recovery despite suffering a 10-digit loss in the fourth quarter.
The beleaguered iBuyer’s fourth-quarter revenue fell 47% year over year to $736 million, and its net loss widened 896% to nearly $1.1 billion. For the full year, sales were $4.37 billion, down 17.9% from the previous year. Net losses increased from $392 million in 2024 to $1.3 billion in 2025.
The company significantly reduced the number of units purchased, from 2,951 units in Q4 2024 to 1,706 units in Q4 2025. The same trend continued throughout the year, with the number of units purchased decreasing from 14,684 units in 2024 to 8,241 units in 2025. iBuyers also saw a decline in the number of homes sold in the fourth quarter (down 42.6 percent to 1,978 units) and in fiscal year 2025. (-15.7% to 11,791 units).
Kaz Nejatian
During an earnings call Thursday afternoon, CEO Kaz Nejatian acknowledged Opendoor’s challenges, but quickly turned his attention to his team’s growth strategy, which is focused on increasing transaction speeds, moving to a direct relationship with consumers, and expanding iBuyer’s product suite.
“Last quarter, we outlined a four-step plan to transform Opendoor: reach breakeven adjusted net income by the end of 2026 on a 12-month forward-looking basis, and achieve positive unit economics while increasing trading. This quarter shows we are executing on that plan,” Nejatian said in a written statement. “These results reflect structural improvements in the way we operate through more accurate pricing, faster inventory turns, and disciplined selection.”
Nejatian focused on quarterly profits from Q3 to Q4 as a litmus test for what he calls “Opendoor 2.0,” with iBuyer purchases up 46% quarter-over-quarter. iBuyers also sell faster, reducing the list-to-sale timeline by 23%. The CEO said Opendoor purchased 537 homes last week, and the iBuyer was able to maintain that momentum.
“The evidence of progress is clear,” he said. “Most importantly, our October 2025 acquisition cohort (the first full month under the Opendoor 2.0 model and the first with mature sell-through data) is tracking to deliver the strongest return of any October acquisition cohort in the company’s history.”
“And these homes are selling more than twice as fast as the October 2024 cohort, with more than 50% already sold or under resale agreement,” Nejatian added. “Although our new cohort is still in the early stages of sell-through, we like this result and our Q1 2026 contribution margin guidance post reflects our confidence in the portfolio’s trajectory.”
In addition to improving trading profits, Nejatian said artificial intelligence and product development are critical to Opendoor’s profitability, and the company will launch a mortgage product next week. The CEO said his team built the product in 10 weeks, despite estimates that it could take more than a year.
“Opendoor is a different type of company,” he said during an earnings call. “This is a company where everyone is learning how to think like an engineer…At Opendoor, we aim to build software that is valuable as an engineer. [consumer] trust. “
During the conference call, Mr. Nejatian encouraged investors and consumers to access Opendoor’s accountability tracking tools. The tracking tool includes product and leadership updates, as well as progress on the CEO’s three key performance indicators, including purchase and profit growth.
“The goal is simple: start by generating cash and never be forced to raise equity capital again,” he said.
Despite the decline in annual revenue and deal value, Opendoor’s quarterly profit appeared to be enough to put wind in investors’ sails. When the market closed on Thursday afternoon, Opendoor stock was trading in the $4.60 range.
However, after Opendoor released its earnings report, the stock price soared to about $5.30 in after-hours trading.
These prices represent a significant turnaround from a year ago, when the stock was close to $1, the threshold for delisting a company from the market. Opendoor’s stock price recovery began last summer following interest from retail investors. Some are calling the company the latest meme stock, and its stock has retained much of the value it gained during last year’s bull market.
Email Marian McPherson
