Tide turns for Opendoor as revenue jumps, delisting threat ends
Days after announcing it is no longer at risk of getting booted off Nasdaq, Opendoor reported its first quarter of adjusted EBITDA profitability in three years.
After a rough 2024 and a rocky start to 2025, Opendoor's luck might be starting to change.
The leading iBuyer reported a 4% year-over-year increase in revenue during the second quarter, with CEO Carrie Wheeler also noting that Opendoor achieved adjusted EBITDA profitability for the first time since 2022.
These gains, which occurred despite the sluggish housing market, reflect "the discipline and expertise we've built into every part of our business," Wheeler said in a company press release.
What Opendoor had to say
A new normal: The company is in the process of "making the most important strategic shift in our history: moving from a single product to a distributive platform with multiple offerings delivered through agents," Wheeler said during an Aug. 5 call with investors.
Opendoor began testing this new process earlier this year and has expanded it to more markets, resulting in double the share of customers receiving a final cash offer and a 5x jump in listing conversion rates, according to Wheeler.
"Agents already come to us every single day for a cash offer. We're simply changing the direction of traffic, putting the power of Opendoor into their hands so they can bring our products straight to the seller," she said.
Short-term outlook is cloudy: Wheeler reminded investors that the company is shifting its strategy amid "very challenging" market conditions, setting expectations for lower volumes in the second half of the year.
But the immediate future "does not reflect what we're building toward — durability, relevance and scale — for the next decade," she emphasized. "We know exactly where we're going, and we're taking decisive steps to get there."
Key numbers
Revenue: $1.6 billion in the first quarter, up 4% year-over-year.
Cash and cash equivalents: $789 million, down slightly from $790 million at the same time last year.
Net loss: A loss of $29 million, a significant improvement over the $92 million loss a year prior and the $85 million loss during Q1 of 2025.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): A gain of $23 million versus a loss of $5 million in Q2 of 2024.
Units acquired/sold: 393 homes under contract for purchase, a 78% drop year-over-year, and 1,757 homes purchased, a 63% drop from Q2 of 2024. Opendoor sold 4,299 total homes during the quarter, up 5% year-over-year and up 46% from the previous quarter.
Inventory: 4,538 homes with a value of $1.5 billion, down from 6,399 homes with a value of $2.2 billion in Q2 of 2024.
Notable moves
In addition to the formal rollout of its Key Agent initiative and recent launch of its seller-focused Cash Plus program, Opendoor agreed in June to settle a 2022 lawsuit over its proprietary pricing technology for $39 million.
Earlier in the quarter, Nasdaq informed Opendoor that it was at risk of delisting due to its low share price. That changed when Opendoor's stock unexpectedly surged for several days last month, bringing the company back in compliance with Nasdaq's requirements.
Offerpad 'ready to accelerate'
Offerpad, the other major iBuyer still standing, had a more subdued quarter. Revenue fell 36% year-over-year, continuing a string of quarterly declines. But the company managed to cut net losses by 21%, reducing them to $10.9 million in Q2.
Like Opendoor, Offerpad has faced the risk of delisting this year, though it has not yet regained compliance with the New York Stock Exchange.
But those concerns aren't stopping the company from eyeing long-term growth opportunities. CEO and Chairman Brian Bair said in a press release that Offerpad has created "a true real estate solutions center" that positions the company to " be ready to accelerate as market activity returns."