Opendoor ‘behind schedule’ on profitability goal as losses mount 

Opendoor's revenue continued to tick up in Q3 but the iBuyer's net losses have mounted, more than doubling year-over-year to a loss of $218 million, the company announced Nov. 5.

But just over a year into his tenure as CEO, Kaz Nejatian said Opendoor is continuing to lean into AI to streamline workflows and address some of the problems he says have been plaguing the company for years.

"Is Opendoor in a better economic condition than it was a year ago? The answer is obviously yes," Nejatian said during a Nov. 5 call with investors.

When he first joined the company, "we told you we would build a faster, stronger, better Opendoor," he recalled, adding that the iBuyer's Q3 earnings report "shows that we have."

What Opendoor had to say

On housing's worst year in recent memory: "The market has turned," Nejatian said — and not for the better. Last year "was the worst year housing had had in a long time, and 2026 was tracking right on top of it through June." It "would have been just fine" if that market pace had continued, he explained, but conditions worsened in September as mortgage rates jumped and pending sales plummeted.

Still, CFO Christy Schwartz said Opendoor is "advancing" as other industry players "are retreating." 

"We intend to win more sellers, take share and build a stronger business," Schwartz said. "We won't let near-term pressure distract us from our long-term opportunity."

Building to weather a down market: Opendoor's leaders said the company is navigating today's market with three main objectives: serving more sellers with less of its capital exposed to market shifts, pricing homes to sell faster and prioritizing the iBuyer's mortgage business to entice other consumers.

"Our job is to build a business that can perform better in difficult conditions," Nejatian said.

Testing another new product: "When buyers are hard to find, better financing gives them a reason to choose to work with Opendoor. That's why we launched Buy with Opendoor in beta this week," Nejatian said. The new product, which Opendoor rolled out in Texas on Nov. 3, can save consumers "tens of thousands of dollars on your mortgage and fees," the CEO said in a post on social media.

The new offering enables the iBuyer to "earn mortgage revenue even on homes that we never own," Nejatian explained. "There are folks who don't buy or sell a home to Opendoor who use our mortgage product, who use our tele-escrow products. This gives us more flexibility as the market changes, and it gives us more ways to grow without taking risk."

'Behind schedule' on profitability: Nejatian has said for months that Opendoor aims to be adjusted net income (ANI) profitable on a 12-month go-forward basis by the end of 2026 — a goal the iBuyer was on track for at the end of Q2.

But now, "we are behind schedule," Schwartz said. "We continue to drive toward profitability, and we remain focused on closing the gap. But our fourth-quarter guideposts reflect the challenging market conditions we see today."

However, the company's goal remains unchanged. "We're a bit behind on this today," Nejatian acknowledged, "but we're going to go through some walls and catch up. This isn't going to be easy. Nothing is for certain. But that's what we're going to do."

Key numbers

Revenue: $1 billion in Q3, up from $883 million in Q2 and up 12% from $915 million during the same period a year ago.

Cash and cash equivalents: $910 million, down from $962 million a year earlier.

Net income/loss: A loss of $218 million, worse than the $162 million loss in Q2 and greater than the $90 million loss reported over the same period a year ago.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): A loss of $31 million in Q3 compared to a loss of $33 million in the third quarter of 2025.

Units acquired/sold: 4,865 homes purchased in Q3, up from the 4,378 homes purchased in Q2 and up 316% year-over-year, and 2,728 homes sold, up from 2,568 homes sold in Q3 of 2025 and up from 2,339 homes sold in Q2 of 2026.

Inventory: 7,596 homes with a value of $2.57 billion, versus 3,139 homes with a value of $1.05 billion in Q3 of 2025.

Q4 outlook: Opendoor expects revenue to grow by 40% or more year-over-year in Q4 and is projecting an adjusted EBITDA loss of $70 million to $85 million.

Notable moves

Opendoor began Q3 by completing its acquisition of Doma's closing and escrow services, a deal first announced in March. A month later, the iBuyer made its first share buyback, a move Nejatian said at the time would give the company "additional capacity to accelerate acquisitions and footprint while maintaining the capital discipline that got us here."

Though this year has been relatively quiet for Opendoor in terms of leadership shakeups when compared with the summer and fall of 2025, the company has recently seen the departure of Lucas Matheson, who was president for about 10 months. Nejatian was appointed by Opendoor's board to fill the role moving forward in addition to carrying out his duties as CEO.

At Offerpad, revenue holds steady and transactions tick up

Offerpad, the other major player in the iBuyer space, announced this week that it recorded its second annual quarterly increase in total transactions, rising from 295 in Q2 to 324 in Q3. The company's revenue was essentially unchanged quarter-over-quarter, rising slightly from $78 million last quarter to $78.1 million in Q3.

Offerpad also reported a slight year-over-year improvement in net losses, with a loss of $11.5 million in Q3 compared with a loss of $11.6 million a year earlier. But the company, which moved from the New York Stock Exchange to Nasdaq in August, appears to be ramping up business, with 605 homes acquired in Q3 — up significantly from the 268 homes it acquired one quarter earlier.

"As homes took longer to sell, we adjusted our acquisition criteria to require higher expected returns and became more selective about new purchases, while serving more sellers through Cash Offer Marketplace and Brokerage Services," Offerpad Chairman and CEO Brian Bair said in a news release. "Having multiple ways to serve homeowners gives us flexibility to keep growing transactions while maintaining capital discipline."