Pioneering iBuyer Opendoor says it will buy 35 percent more houses in the final three months of the year and clear out old inventory as part of a plan to “refound” the company as a software and AI firm.
However, Opendoor only bought 1,169 homes in the third quarter — down 33 percent from Q2, and about one-third of the 3,504 homes acquired at the same time a year ago, the company reported Thursday.
On a Q3 earnings call livestreamed on YouTube and branded as a “financial open house,” incoming CEO Kaz Nejatian said Opendoor acquired 230 homes in the last week of October — about twice the pace of acquisitions when he took over on Sept. 15.
Zoom out: In addition to scaling acquisitions, Nejatian said Opendoor will improve unit economics and sell homes more quickly, keeping expenses in check by using automation and standardization.
“The goal is simple. We’re going to make stronger first offers, buy more good homes and get more good sellers through our funnel to avoid adverse selection,” Nejatian said.
‘We used to move so goddamn slowly’
“I think it’s reasonable to ask, ‘How can we move so fast right now, when we used to move so goddamn slowly?'” the Shopify veteran and self-described “computer nerd-turned lawyer-turned founder” said Thursday.
“Having been inside the company for just over a month, it’s kind of obvious to me that the old Opendoor had just lost faith in the power of software to make selling, buying and owning a home easier,” Nejatian said. “It just kind of thought of itself as an asset manager trying to predict the economy.”
Nejatian claimed that when he joined the company, “there were a dozen people whose only job it was to copy and paste information from PDFs into glorified spreadsheets,” — work that should be done by AI instead, he said.
“Everywhere I looked in my first 30 days, I found consultants making decisions that should have been made by executives,” he said.
Investors in Opendoor — which became something of a meme stock after activist investor Eric Jackson helped oust CEO Carrie Wheeler — were skeptical of the plan laid out by the company’s new CEO.
Shares in Opendoor, which in the last 12 months have traded for as little as 51 cents and as much as $10.87, were down 15 percent from Thursday’s close of $6.56 in after-hours trading.
By the numbers
- Opendoor sold 2,568 homes in Q3 2025, down 29 percent from a year ago
- At $915 million, Q3 revenue was down 33 percent from $1.377 billion in Q3 2024
- Opendoor’s $90 million net loss in the quarter was 15 percent greater than the $78 million net loss in Q3 2024
The context: Since 2014, Opendoor has completed more than 291,000 transactions through Sept. 30 — and racked up $3.93 billion in losses.
Opendoor executives said that while Q4 revenue will be better than projected when Q2 earnings were released, revenue is set to drop by another 35 percent from Q2 due to low inventory levels.
The 3,139 homes in Opendoor’s inventory as of Sept. 30 were valued at $1.05 billion — an average of $335,500 per home. That’s down about half from 6,288 homes valued at $2.14 billion at the same point in 2024, when the average value per home was $341,125.
What’s at stake: Opendoor expects to rack up Q4 losses “in the high $40 millions to mid $50 millions” as measured by adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
- During the three months ending Sept. 30, Opendoor issued 21.6 million shares at an average price of $9.26 per share in an “at-the-market” (ATM) offering that netted $195 million in cash.
That money gave Opendoor “some breathing room” to reach an agreement Thursday to retire the majority of convertible notes it owed with an early repayment clause “without a gun to our head,” said Christy Schwartz, Opendoor’s interim chief financial officer.
Christy Schwartz
“There are aspects of our balance sheet that are just genuinely phenomenal,” Schwartz said. “We have 10 different lending facilities with long-standing partners, some of them as long as 9 years, who’ve demonstrated their ability to scale with us as we grow.”
Opendoor currently has financing to buy 5,000 homes “all at once,” she said.
“At our peak, that number was about 20,000 and we’re going to get back there, and I’m genuinely confident that we can get there with our lending partners,” Schwartz said.
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