Opendoor targeting profitability by end of 2026 

Nearly a year after stepping into the CEO role at Opendoor, Kaz Nejatian said the company has "done what we said we would do" as it marches along a path to profitability.

"There's no magic here," he said during an Aug. 4 earnings call. "It's just math."

The iBuyer reported a 23% quarter-over-quarter jump in revenue in Q2, and it improved its net loss from $173 million in Q1 to $162 million. The company also reported a rise in both the number of homes purchased and sold from April to June.

Despite the prolonged housing market slowdown, Nejatian said the company is "signing more than 500 contracts every single week," and just last week hit around 700 signings — its "highest contract week in years."

"We're doing this in the weakest housing market in a generation, and in the worst season of the year for us," Nejatian said. "But over 500 sellers are still saying 'yes' to Opendoor every single week."

What Opendoor had to say

Moving confidently toward profitability: "Yes, yes, yes, yes," the CEO said when an investor asked if Opendoor is on track to meet Nejatian's goal of becoming adjusted net income (ANI) profitable on a 12-month go-forward basis by the end of this year.

"When I said this, there were more than a few things that needed to go right," Nejatian acknowledged. "But we moved fast."

While other tech-forward firms have spent years "chasing unicorns," he said, "we're coining a new category: the pegasus. Not a company that was magical from the beginning, but a company that had to grow its wings in public."

Those changes "are real before the financial statements catch up," he added.

On the company's mortgage product: Opendoor Home Loans is doing "excellent" in states where these services are already available, Nejatian said. In Colorado, the product's launch market, over half of Opendoor's scheduled closes will be through Opendoor Home Loans, he said.

"And this is a completely unoptimized product right now," he noted, adding: "We expect to be licensed in around 35-40 states by the end of this year."

Bullish about the future: Opendoor expects revenue to increase 20% or more year-over-year in Q3, according to Chief Financial Officer Christy Schwartz. "A quarter ago, we told you exactly what this quarter would look like — and despite a real estate market that remains challenged, we did what we said we would do," she said.

Looking ahead, Nejatian is "incredibly bullish" about 2027. "We're spending a lot of time doing very, very difficult work, setting ourselves up so we can have an excellent 2027," he said. "I genuinely think we're going to surprise people by how much of the U.S. housing market will flow through Opendoor next year."

Key numbers

Revenue: $883 million in Q2, up 23% from $720 million in the first quarter but down from $1.6 billion during the same period a year ago.

Cash and cash equivalents: $896 million, up from $789 million a year earlier.

Net income/loss: A loss of $162 million, an improvement over the $173 million loss in Q1, but significantly higher than the loss of $29 million for the same period a year ago.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): A loss of $4 million in Q2 compared to a gain of $23 million in the second quarter of 2025.

Units acquired/sold: 4,378 homes purchased in Q2, up 77% from Q1 and up 149% year-over-year, and 2,339 homes sold, down from 4,299 in Q2 of 2025 but an increase from 1,921 homes sold in Q1.

Inventory: 5,459 homes with a value of $1.8 billion, versus 4,538 homes with a value of $1.5 billion in Q2 of 2025.

Notable moves

Shortly before the end of Q2, Opendoor expanded its C-suite with the appointment of Vu Tran, the company's first chief AI officer. The addition, perhaps foreshadowed by Nejatian's determination to remake Opendoor as "a software and AI company," was "a fantastic one," Schwartz said during Tuesday's call.

Tran's "primary objective aligns with our third management objective, which is to build operating leverage so that our costs don't scale linearly with acquisitions," Schwartz said.

Also in Q2, Opendoor announced a partnership with RealScout and completed its acquisition of Doma's closing and escrow services, which was first announced in March.

Additionally, Opendoor closed its operations in India, where the company previously had nearly 250 employees. Some of the positions were relocated to the U.S., Nejatian said in June. 

The other iBuyer: Offerpad reports 'real improvement'

Meanwhile, revenue fell for Offerpad, the other major player in the iBuyer space.

The company, which announced a reverse stock split in June after receiving its second delisting warning in 11 months, reported $78 million in revenue in Q2, down slightly from $80.1 million in Q1 and down considerably from $160.3 million a year ago. 

But the company's year-over-year improvement in net losses continued in Q2, and adjusted EBITDA changed little (a loss of $6.7 million in Q1 compared to a loss of $6.2 million in Q2).

Offerpad acquired 268 homes last quarter, an increase over Q1, but down about 60% year-over-year. The number of homes sold was nearly flat quarter-over-quarter (206 in Q2 compared to 211 in Q1). Offerpad's total number of real estate transactions — which include homes sold via Cash Offer, transactions through the Cash Offer Marketplace and listings closed via the company's Brokerage Services solutions — increased slightly from 263 in Q1 to 295 in Q2.

In an Aug. 3 news release, the company highlighted how contract signings nearly doubled from early April to late June. Chairman and CEO Brian Bair noted that the company has focused on "disciplined transaction growth, expanding contribution margin, and operating leverage."

"That work is showing up now — the buying engine is back on, and every home we acquire reflects the discipline we built this business on," Bair said.

CFO Peter Knag added that the company is "seeing real improvement in the metrics that drive future performance."