Opendoor Reports Q4 Loss on Debt Extinguishment, Signals Path to 2026 Profitability

Opendoor Technologies Inc. (Nasdaq: OPEN) on Thursday reported a widened net loss for the fourth quarter of 2025, primarily driven by a significant charge related to debt extinguishment, even as the company touted operational improvements under its “Opendoor 2.0” initiative.The e-commerce real estate platform posted a net loss of $1.1 billion, or $1.26 per share, for the quarter ended Dec. 31, 2025. This compares to a net loss of $113 million, or $0.16 per share, in the same period a year earlier. The results were heavily impacted by a $933 million loss on the extinguishment of debt.

Operational Milestones and “Opendoor 2.0”

The company highlighted the performance of its October 2025 acquisition cohort the first full month under its revamped “2.0” model noting it is tracking to deliver the strongest contribution margins for any October in company history. These homes are selling at more than twice the velocity of the previous year’s cohort, with over 50% already sold or under contract.

Key Metrics

Acquisitions: Homes purchased rose 46% quarter-over-quarter to 1,706 units.Inventory Velocity: Average inventory days in possession were reduced by 23%, and the percentage of homes on the market for more than 120 days dropped to 33% from 51% in the third quarter.Revenue: Quarterly revenue was $736 million, down from $1.08 billion in Q4 2024.Adjusted EBITDA: The company reported an Adjusted EBITDA loss of $43 million, a slight improvement from the $49 million loss in the prior-year period.

2026 Profitability Target

Opendoor reiterated its goal to reach breakeven Adjusted Net Income by the end of 2026 on a 12-month go-forward basis. For the full year 2025, the Adjusted Net Loss narrowed to $195 million from $258 million in 2024.The company also noted a reduction in capital intensity, with its “Cash Plus” program now representing 35% of its weekly acquisition volume.

First Quarter 2026 Outlook

Looking ahead, Opendoor expects Q1 2026 revenue to decrease by approximately 10% compared to the fourth quarter. However, management anticipates exiting the first quarter with the highest contribution margin since mid-2024. The company guided for an Adjusted EBITDA loss in the low-to-mid $30 millions for the first quarter of 2026.As of Dec. 31, 2025, Opendoor held $1.3 billion in cash, cash equivalents, and restricted cash.