Opendoor (NASDAQ:OPEN) Beats Q3 Sales Expectations But Stock Drops

Technology existent property institution Opendoor (NASDAQ:OPEN) reported gross up of Wall Streets expectations successful Q3 CY2025, but income fell by 33.6% twelvemonth connected twelvemonth to $915 million. Its GAAP nonaccomplishment of $0.12 per stock was 68.5% beneath analysts’ statement estimates.

Is present the clip to bargain Opendoor? Find retired successful our afloat probe report.

• Revenue: $915 cardinal vs expert estimates of $848.7 cardinal (33.6% year-on-year decline, 7.8% beat)

• EPS (GAAP): -$0.12 vs expert expectations of -$0.07 (68.5% miss)

• Adjusted EBITDA: -$33 cardinal vs expert estimates of -$19.39 cardinal (-3.6% margin, 70.2% miss)

• EBITDA guidance for Q4 CY2025 is $45 cardinal astatine the midpoint, supra expert estimates of -$41.15 million

• Operating Margin: -7.4%, down from -4.9% successful the aforesaid 4th past year

• Free Cash Flow Margin: 47.2%, up from 4.1% successful the aforesaid 4th past year

• Homes Sold: 2,568, down 1,047 twelvemonth connected year

• Market Capitalization: $5.32 billion

“We are refounding Opendoor arsenic a bundle and AI company. In my archetypal period arsenic CEO, we've made a decisive interruption from the past -- returning to the office, eliminating reliance connected consultants, and launching implicit a twelve AI-powered products and features that show our renewed velocity. Our concern volition win by gathering exertion that makes selling, buying, and owning a location easier and much joyful -- not from charging precocious spreads and hoping the macro saves us,” said Kaz Nejatian, CEO of Opendoor.

Founded by existent property guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to bargain and merchantability homes.

Reviewing a company’s semipermanent income show reveals insights into its quality. Any concern tin enactment up a bully 4th oregon two, but the champion consistently turn implicit the agelong haul. Unfortunately, Opendoor’s 5.6% annualized gross maturation implicit the past 5 years was sluggish. This was beneath our modular for the user discretionary assemblage and is simply a pugnacious starting constituent for our analysis.

We astatine StockStory spot the astir accent connected semipermanent growth, but wrong user discretionary, a stretched humanities presumption whitethorn miss a institution riding a palmy caller merchandise oregon trend. Opendoor’s show shows it grew successful the past but relinquished its gains implicit the past 2 years, arsenic its gross fell by 27.3% annually.

We tin amended recognize the company’s gross dynamics by analyzing its fig of homes sold, which reached 2,568 successful the latest quarter. Over the past 2 years, Opendoor’s homes sold averaged 16.2% year-on-year declines. Because this fig is higher than its gross maturation during the aforesaid period, we tin spot the company’s monetization has fallen.