TLDR
- Opendoor (OPEN) stock surged ~18% after Q4 earnings beat revenue estimates of $595M, coming in at $736M
- Revenue was still down 32% year-over-year, and the company posted a net loss of $1.1 billion
- A $933 million loss on debt extinguishment heavily impacted the GAAP net loss figure
- CEO Kaz Nejatian is targeting positive adjusted net income by late 2026
- Opendoor raised $198M via a stock offering and issued $325M in convertible senior notes
Opendoor Technologies (OPEN) had a strong Friday on the market, with the stock climbing nearly 18% after the company released its Q4 earnings report.
Opendoor Technologies Inc., OPEN
The headline number that got investors excited was revenue of $736 million, which came in well above the $595 million analyst estimate.
That said, the revenue figure still represents a 32% drop compared to the same quarter last year, so it’s not all good news.
The company posted a GAAP net loss of $1.1 billion, or $1.26 per share. A large chunk of that — $933 million — came from a loss on the extinguishment of debt, which skewed the bottom line heavily.
Adjusted EBITDA came in at a loss of $43 million for the quarter.
Despite the losses, Wall Street took the report well. Investors focused on what the numbers say about the direction of the business rather than the raw figures.
Structural Changes Starting to Show Up in the Numbers
CEO Kaz Nejatian pointed to improvements in pricing accuracy and inventory turns as evidence that the company’s long-term strategy is working.
“These results reflect structural improvements in how we operate — with more accurate pricing, faster inventory turns, and disciplined selection,” Nejatian said in the earnings release. “The evidence of progress is clear.”
He also made clear the company is playing a long game, stating they are “focused on making the right long-term decisions to rebuild Opendoor rather than managing to short-term guidance.”
The company is targeting positive adjusted net income by the end of 2026 on a rolling twelve-month basis. That’s the goalpost management has publicly committed to.
For Q1 2026, Opendoor is guiding for revenue of approximately $662 million and an adjusted EBITDA loss of between $30 million and $35 million — a slight improvement on Q4’s adjusted loss.
Revenue is expected to decline around 10% in Q1 compared to the prior period.
Capital Raise Adds to the Picture
Alongside the earnings report, Opendoor disclosed it raised roughly $198 million through an offering of over 180 million common stock units.
The company also issued $325 million in convertible senior notes as part of its capital management strategy.
The fundraising signals the company is shoring up its balance sheet while it works toward profitability — though the stock dilution is worth keeping in mind for existing holders.
OPEN is currently trading in the middle of its 52-week range and sitting above its 200-day simple moving average.
Wall Street analysts have price targets ranging between $4 and $6 for the stock over the remainder of 2026, which puts the $10 target that some retail investors have been floating firmly in speculative territory for now.
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