Opendoor dodges delisting bullet after July stock surge
The iBuyer is no longer considering a reverse stock split to regain compliance with Nasdaq price requirements now that its stock has rebounded on its own.
Two months after Nasdaq warned Opendoor that it could face delisting if its stock price didn't rebound, the iBuyer is back in compliance — thanks to a sudden and unexpected price surge last month.
Opendoor shared the news on Aug. 1 while also canceling a stockholder meeting slated to take place later this month. The meeting was planned back in June to discuss a proposed reverse stock split.
Now that Opendoor has regained compliance, "the Board has determined that it is in the best interests of the Company and its stockholders to not proceed with the reverse stock split proposal at this time," Opendoor explained in a press release.
How we got here: In late May, Nasdaq sent a notice to Opendoor alerting the company that its stock price had dropped below $1 per share for 30 consecutive business days. As a result, Opendoor fell out of compliance with Nasdaq's minimum bid price requirement.
To regain compliance, Opendoor's stock needed to reach or exceed $1 per share for 10 consecutive business days. The company was given 180 days to meet this goal.
Shareholders rally: Opendoor's stock price began rising in mid-July after EMJ Capital Founder Eric Jackson voiced confidence in the company's long-term success. The "meme stock" effect pushed the iBuyer's stock above $4 per share at times, putting it on a trajectory to regain compliance.
The company's closing stock price had reached or exceeded $1 for 12 consecutive business days by the time Opendoor learned it was back in compliance with Nasdaq's minimum bid price requirement. "Accordingly, Nasdaq has determined that the matter is now closed," Opendoor said in its release.
Q2 earnings coming soon: On Aug. 5, Opendoor is scheduled to share earnings data from the second quarter with investors. During its previous earnings call covering the first three months of 2025, Opendoor reported a year-over-year drop in revenue but told investors that the company is "positioned to accelerate as transaction volume normalizes" and is "focused on building a strong, flexible foundation" moving forward.
Another iBuyer still at risk: Opendoor isn't the only iBuyer dealing with suffering stock prices. In late 2022, the New York Stock Exchange (NYSE) warned Offerpad that it was at risk of delisting, though the company's stock price rebounded enough in early 2023 for it to regain compliance.
Offerpad was informed on April 10 of this year that it is again at risk of delisting. The company was given 45 days to provide the NYSE with a business plan outlining how it will regain compliance within 18 months.