Opendoor Shares Surge 7.5% on Profitability Outlook, 24% Loss Reduction
Opendoor extended its winning streak to a third day, jumping 7.53% to close at $5 as it reaffirmed a return to adjusted profitability by year-end. The company narrowed its 2025 adjusted net loss by 24% to $195 million on $4.37 billion in revenues, while unadjusted net loss widened to $1.3 billion and Q4 revenues fell 32% to $736 million.
1. Stock Reaction and Outlook
Opendoor extended its winning streak to a third consecutive session, with shares rising 7.53% to close at $5. The rally followed management’s reaffirmation of a plan to return to adjusted profitability by the end of the year, boosting investor confidence in its turnaround strategy.
2. Annual Financial Performance
For full-year 2025, Opendoor narrowed its adjusted net loss by 24% to $195 million from $258 million a year earlier, despite a 15% revenue decline to $4.37 billion. However, the company’s unadjusted net loss widened by 232% to $1.3 billion, reflecting increased write-downs and restructuring costs.
3. Fourth-Quarter Results and Transformation Plan
In Q4, net loss surged 870% to $1.096 billion on revenues down 32% to $736 million. CEO Kaz Nejatian highlighted progress on a four-step plan—targeting breakeven adjusted net income by end-2026, boosting unit economics, shifting to direct consumer sales, and expanding its product suite—underscoring improvements in pricing accuracy, inventory turns and selection discipline.