The online real estate company is projecting revenue of $800 million to $875 million for the current quarter — a decline of at least 36% from a year earlier.
Opendoor Technologies’ (OPEN) quarterly results and outlook did not support the turnaround narrative that investors, who boosted the company’s stock in recent weeks, were hoping for.
OPEN stock fell nearly 25% in extended trading following the results release on Tuesday. The stock surged over three times last month following bullish comments from hedge fund manager Eric Jackson and on the back of a renewed “meme stock” frenzy, before paring some of those gains.
CEO Carrie Wheeler thanked investors for their “enthusiasm” on the company’s earnings call on Tuesday. “This increased visibility is an opportunity to tell our story to a broader audience… We intend to make the most of it.”
For the second quarter, Opendoor said revenue rose about 4% year-over-year to $1.57 billion, while net loss narrowed to $29 million from $92 million.
The online real estate company is projecting $800 million to $875 million in revenue for the current quarter, representing a decline of at least 36% from the same period last year.
The company anticipates purchasing around 1,200 homes in Q3, which is significantly lower than the 1,757 homes bought in Q2 and the 3,504 acquired in Q3 2024. It is also scaling back its marketing expenditures.
“The housing market has further deteriorated over the course of the last quarter,” CFO Selim Freiha said. “Persistently high mortgage rates continue to suppress buyer demand, leading to lower clearance and record new listings.”
On Stocktwits, the retail sentiment was ‘bearish’ as of late Monday, with mixed user comments.
“$OPEN everybody now says long term how long 10 years to be at 10.00,” remarked a user.
Another said, “$OPEN the meme pumpers are falling over themselves to get out. Wouldn’t be surprised to see this back under $1 tomorrow.”
Opendoor was founded in 2014 and went public through a special purpose acquisition company (SPAC) during the COVID-era boom of late 2020. However, when interest rates began to climb in 2022, higher borrowing costs reduced demand for homes.
Opendoor’s revenue has declined in 2023, 2024, and the first quarter of 2025.
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