Opendoor Technologies, identified by the ticker OPEN, has submitted a preliminary proxy statement. This document is part of the company's efforts to gather proxies for their upcoming Special Meeting of Stockholders, scheduled for Monday, July 28, 2025, at 9:30 a.m. Pacific Time. The primary agenda of the meeting is a proposal by the Board of Directors advocating for stockholders to approve changes to the company's Certificate of Incorporation. This includes implementing a reverse stock split of common stock, with a split ratio that could range from 1-for-10 to 1-for-50. The Board has the discretion to decide the exact ratio within this range and has the authority to determine the timing of filing the amendment and the option to cease the amendments even if they receive prior stockholder approval.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for Opendoor Technologies Inc (OPEN, Financial) is $1.15 with a high estimate of $2.00 and a low estimate of $0.68. The average target implies an upside of 69.72% from the current price of $0.68. More detailed estimate data can be found on the Opendoor Technologies Inc (OPEN) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Opendoor Technologies Inc's (OPEN, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Opendoor Technologies Inc (OPEN, Financial) in one year is $1.50, suggesting a upside of 120.65% from the current price of $0.6798. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Opendoor Technologies Inc (OPEN) Summary page.
OPEN Key Business Developments
Release Date: May 06, 2025
- Revenue: $1.2 billion in Q1 2025, roughly in line with Q1 2024.
- Homes Sold: 2,946 homes in Q1 2025.
- Homes Acquired: 3,609 homes in Q1 2025, up 4% year-over-year.
- Contribution Profit: $54 million in Q1 2025, with a contribution margin of 4.7%.
- Adjusted EBITDA: Loss of $30 million in Q1 2025, improved from a loss of $50 million in Q1 2024.
- Adjusted Operating Expenses: $84 million in Q1 2025, down from $107 million in Q1 2024.
- Net Inventory: $2.4 billion, representing 7,080 homes at the end of Q1 2025.
- Unrestricted Cash: $559 million at the end of Q1 2025.
- Nonrecourse Asset-Backed Borrowing Capacity: $7.9 billion, with $2.3 billion committed.
- Q2 2025 Revenue Guidance: Expected between $1.45 billion and $1.525 billion.
- Q2 2025 Contribution Profit Guidance: Expected between $65 million and $75 million, with a margin of 4.5% to 4.9%.
- Q2 2025 Adjusted EBITDA Guidance: Expected between $10 million and $20 million.
- Q2 2025 Adjusted Operating Expenses Guidance: Approximately $55 million.
- Q2 2025 Home Acquisitions Guidance: Approximately 1,700 homes.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Opendoor Technologies Inc (OPEN, Financial) reported $1.2 billion in revenue for the first quarter, maintaining levels similar to the previous year.
- The company achieved a 4% increase in home acquisitions compared to the same quarter last year, purchasing 3,609 homes.
- Adjusted EBITDA loss improved significantly to $30 million from $50 million in the previous year, driven by reductions in operating expenses.
- Opendoor Technologies Inc (OPEN) is piloting an expanded agent partnership program in 11 markets, which has shown early positive indicators.
- The company has successfully renewed credit facilities with consistent or improved credit spreads, reflecting confidence from capital partners.
Negative Points
- The macroeconomic environment remains challenging, with high mortgage rates and increased delistings impacting the housing market.
- Contribution profit decreased to $54 million from $57 million in the previous year, with a contribution margin of 4.7%.
- The company expects a slowdown in acquisitions, projecting only 1,700 home acquisitions in the second quarter.
- Revenue is anticipated to decline in the third and fourth quarters due to the slowdown in acquisitions and current market dynamics.
- Persistently high mortgage rates are suppressing buyer demand, leading to more sellers pulling out of contracts.
