Opendoor, facing delisting, plans reverse stock split 

A week after revealing that it is at risk of getting the boot from NASDAQ, Opendoor filed a preliminary proxy statement seeking shareholder approval for a reverse stock split.

It followed up that filing with layoffs on June 11, letting 40 people go as part of a restructuring of its sales organization first reported by Inman and confirmed by Real Estate News.

The consolidation of shares is intended to push the company's stock price back up above $1 — the required minimum share price to remain on the index. Opendoor was trading at $0.68 a share on June 6.

Unlike a traditional stock buyback, a reverse split doesn't reduce the company's market capitalization — it simply combines shares to raise the per-share price, a move prompted by a NASDAQ warning after the stock traded below $1 for more than 30 business days.

A familiar pattern: The proposed split — which could combine anywhere from 10 to 50 shares into one — mirrors actions taken by fellow iBuyer Offerpad. That company enacted a 1-for-15 reverse split in 2023 to avoid delisting from the New York Stock Exchange, only to see its stock dip below $1 again in early 2025.

The iBuying model has faced significant headwinds in recent years. While Opendoor and Offerpad pioneered the concept of algorithm-driven instant homebuying in the mid-2010s, others like Zillow and Redfin entered — and eventually exited — the space after the market shifted dramatically in the early 2020s.

A 'targeted restructuring': Days after Opendoor began taking steps toward a reverse stock split, the company conducted "a small, targeted restructuring, primarily within our Sales organization," a company spokesperson told Real Estate News, adding that the June 11 layoffs reflect "our continued shift toward a unified go-to-market strategy—one that brings Sales, Marketing, and Industry Channels into tighter alignment."

"By integrating these functions, we're building a more sales-centric organization that better supports both our direct-to-consumer and partner agent strategies. It's a deliberate step toward creating a leaner, more asset-light business—one that can serve more customers and scale with discipline," the spokesperson said. "We're thankful for the contributions of the team members affected by this change."

What Opendoor had to say: Opendoor's board is recommending the reverse split to attract new investors, retain employees and facilitate capital-raising opportunities.

"This proposal is intended to support long-term shareholder value and give us optionality in preserving our listing on Nasdaq," said CFO Selim Freiha in a press release included with the filing.

Should shareholders approve the plan at a special meeting scheduled for July 28, the board would have the discretion to determine the final split ratio and timing — or to abandon the measure altogether if market conditions change.

After posting a $1.4 billion loss in 2022, Opendoor briefly returned to profitability in 2023 under new CEO Carrie Wheeler. While the company slipped back into the red in 2024, Wheeler has emphasized the strategic importance of partnerships — and highlighted potential upside from policy changes tied to the National Association of Realtors' commissions settlement.

What's next: Opendoor has until November 24 to regain compliance with the $1 bid price requirement by trading above the threshold for at least 10 consecutive business days. If it fails to do so, the company may request a second 180-day compliance period, assuming it meets all other listing criteria.