TLDR
- Opendoor stock surged after naming Shopify COO Kaz Nejatian as CEO.
- Co-founders Keith Rabois and Eric Wu rejoined, with Rabois as chairman.
- $40 million PIPE investment adds capital for growth.
- Q2 2025 showed $1.6B revenue and positive adjusted EBITDA.
- Guidance warns of Q3 operating losses, highlighting ongoing risks.
Opendoor Technologies Inc. (NASDAQ: OPEN) closed at $9.07 on September 12, 2025, down 13.78% on the day, though pre-market trading lifted it back to $9.53. The stock has surged 466.88% year-to-date as investors responded to a dramatic leadership reset and fresh strategic vision.
Opendoor Technologies Inc. (OPEN)
The company appointed Kaz Nejatian, Shopify’s chief operating officer, as CEO while bringing back co-founders Keith Rabois and Eric Wu to the board, with Rabois assuming the chairman role. This restructuring was coupled with a $40 million equity investment from Khosla Ventures and Wu.
AI-powered strategy and founder return
Management outlined a new focus on artificial intelligence to simplify the home buying and selling process. Nejatian described the next phase as “software-first,” emphasizing AI tools that could make real estate transactions faster and more predictable.
The return of Rabois and Wu signals renewed founder involvement at a critical juncture. This leadership and capital infusion generated momentum, with short sellers squeezed by the sharp rally.
Recent performance and profitability progress
Opendoor’s second-quarter 2025 results highlighted improvement. Revenue reached $1.6 billion, with gross profit of $128 million. The company reported its first quarter of adjusted EBITDA profitability since 2022 at $23 million, while narrowing its GAAP net loss to $29 million.
Agent-led distribution efforts were also noted as a way to expand seller reach while reducing capital intensity. These operational improvements added weight to investor optimism even before the leadership shift.
Guidance raises caution
Despite progress, management guided for weaker third-quarter results. Revenue is expected between $800 million and $875 million, with contribution profit of $22 million to $29 million, and adjusted EBITDA turning negative in the range of $28 million to $21 million.
This guidance signals the difficulty of achieving consistent profitability in a volatile housing market. Inventory and home purchases also fell year over year, underscoring cautious positioning.
Valuation and risks ahead
At a market capitalization of $6.68 billion and trailing 12-month revenue of $5.18 billion, Opendoor trades at about 1.5 times sales. While not extreme for a software-enabled marketplace, it relies heavily on management delivering sustained margin expansion and a return to GAAP profitability.
Risks remain tied to mortgage rates, transaction volumes, and execution missteps. Short interest and retail-driven volatility also heighten downside risk if momentum fades.
Outlook
Opendoor’s leadership reset and AI-driven ambitions mark an inflection point. If execution matches expectations, the multiyear upside could be meaningful. But near-term guidance and lumpy profitability suggest investors should wait for proof before assuming the recent rally represents a lasting turnaround.
