Opendoor makes ‘aggressive’ move with $158M share buyback
The iBuyer is repurchasing approximately 45.3 million of its own shares, a move that it said will reduce shares outstanding by 5%.
Opendoor today announced that it is repurchasing some of its own stock, a move the iBuyer framed as a nod to the volatility of its share price and a benefit to shareholders.
This marks the first time Opendoor has initiated a share buyback in its nearly six years as a publicly traded company.
What the iBuyer did: On Aug. 13, Opendoor said it is borrowing $650 million in convertible senior notes at a 0% coupon, part of which is going toward repurchasing an estimated 45.3 million shares of Opendoor stock for $158 million. The move, according to a news release, will reduce shares outstanding by 5%.
The rest of the funds will remain on the company's balance sheet "so we can buy more homes and grow faster," CEO Kaz Nejatian said in a post on social media.
The company said its share buyback is expected to be finalized by Aug. 19 pending customary closing conditions.
What the buyback does for Opendoor stock: By taking some stock off the board, Opendoor is increasing the value of its share price for existing investors.
This dilution — which Nejatian admitted "I despise" — comes at a moment when real estate companies across the industry are seeing low stock prices. Opendoor received a delisting warning from Nasdaq in 2025 after its share price fell too low for too long, though the iBuyer regained compliance amid a meme stock rally last summer. Its share price has held above the $1 mark in the year since.
By Thursday afternoon, the company's share price was hovering around $3.56. By repurchasing millions of shares, the company said it aims to boost its price per share above $10.38.
Opendoor "bought our stock where we thought it was cheap and pushed any future dilution far above today's price," Nejatian said. "Not one net new Opendoor share will exist below $10.38."
Nejatian also left the door open to additional stock repurchases, adding, "if we buy back stock in the future, that floor goes higher."
A firm 'putting its money where its mouth is': "Some people will call what we did today aggressive. They're right," Nejatian wrote. "But being aggressive is how we fixed a company that spent years being careful. I'd make that trade again."
In a comment directed at Opendoor shareholders, Nejatian acknowledged that they placed trust in the iBuyer, and "Today, for the first time, Opendoor used its own capital to buy more of itself. The company is putting its money where its mouth is."
The CEO added that he intends to buy $100,000 in Opendoor shares himself: "I'm all in, and I plan to keep buying."
Targeting profitability by year's end: Opendoor's announcement comes just over a week after the company reported its earnings for the second quarter of 2026. Though revenue was down year-over-year, the $883 million reported in Q2 represented a 23% jump from Q1, and its net loss also improved quarter-over-quarter.
Nejatian told investors during an Aug. 5 call that the company is on track to becoming net adjusted income profitable on a 12-month go-forward basis by the end of 2026.