Highlights

  • Second quarter revenue fell 44% to $883 million as homes sold dropped 46% to 2,339, while purchases rose to 4,378.
  • GAAP net loss widened to $162 million, or $0.17 per share, from $29 million; stock unit expense was $100 million.
  • Gross margin improved to 9.7% from 8.2%; non-GAAP adjusted EBITDA was a $4 million loss versus a $23 million profit.
  • Cash was $896 million against $1.8 billion of asset-backed debt; $135 million of convertible notes were due August 15, 2026.

Opendoor Technologies (NASDAQ:OPEN) shares were trading near their 52-week low at USD 1.96 on October 21, 2026, down 4.85%. The online home buying and selling company filed its second quarter 2026 report on August 4, showing lower sales volume, a wider loss and a larger inventory, and disclosed a $10 million acquisition of a closing and escrow business completed on July 20.

Based in Tempe, Arizona, Opendoor is a Delaware corporation that says its mission is to make homeownership simpler, faster and fairer. It uses data-driven pricing models and local operations to buy and sell homes, and reports more than 305,000 transactions since its founding. Most revenue comes from home sales, with the rest from title insurance, escrow and related real estate services. In the first quarter of 2026 it launched a mortgage product through Opendoor Home Loans. The company operates as a single reportable segment, and its fiscal year ends December 31.

Fewer Homes Sold, Wider Margins

Revenue for the quarter ended June 30, 2026 was $883 million, down from $1.57 billion a year earlier. Management attributed the decline mainly to lower sales volume, since the company began the quarter with 3,420 homes in inventory against 7,080 a year before. It sold 2,339 homes, while revenue per home sold rose 4%. Gross profit was $86 million versus $128 million, though gross margin improved to 9.7% from 8.2%, helped by fresher inventory and adjacent services.

Purchases moved the other way. The company bought 4,378 homes against 1,757 a year earlier and ended the quarter with 5,459 homes in inventory worth $1.85 billion. It recorded $14 million of inventory valuation adjustments in the quarter. Homes listed for more than 120 days made up 9% of its portfolio, compared with 27% for comparable homes across the broader market.

Larger Loss, Stock Compensation and Cash Use

Operating expenses rose 63% to $230 million. General and administrative expense rose to $135 million from $28 million, mainly reflecting a $98 million increase in stock-based compensation, including $95 million tied to market-condition restricted stock units granted to executives, and a $4 million expense for a CEO make-whole award. The loss from operations was $144 million versus $13 million, and net loss reached $162 million. For six months, net loss was $335 million against $114 million.

On a non-GAAP basis, contribution margin rose to 5.8% from 4.4%, and adjusted net loss was $30 million versus $9 million. Operating activities used $964 million of cash in the first half, compared with $544 million provided a year earlier, as inventory grew by $932 million. The company also said $551 million of unamortized cost for market-condition units remains, expected to be recognized over about 2.1 years, and it began closing its Indian subsidiary, with $3 million of restructuring expense.

Debt, Liquidity and Housing Backdrop

At June 30, 2026, the company held $896 million of cash and equivalents and $66 million of restricted cash. Non-recourse asset-backed debt totaled $1.8 billion, and convertible senior notes totaled $197 million. The $135 million of 2026 notes was classified as current and scheduled to mature on August 15, 2026. The $62 million of 2030 notes was also current because noteholders could convert through September 30, 2026. The filing does not describe how the 2026 notes were settled. Undrawn borrowing capacity under the asset-backed facilities was $5.7 billion, of which $25 million was committed.

Management described a housing market constrained by elevated mortgage rates, with existing home sales around 4 million a year, a 30-year low in its words, and mortgage rates in the mid-6% range at the end of June. It expects interest expense to rise as inventory grows and said it will consider ways to diversify financing. The filing contains no numerical financial guidance.