Opendoor Technologies Inc. (OPEN) experienced a significant after-hours trading surge, with its stock rising as much as 16.5% following the announcement of its Q4 2025 earnings. The company reported a revenue of $736 million, which comfortably exceeded Wall Street”s expectations of $595 million by 23.7%. Despite this positive revenue outcome, the company still reported an adjusted earnings per share (EPS) loss of $0.07, which was an improvement over the anticipated loss of $0.09.
One of the standout metrics from the report was the sharp increase in home acquisition volume, which rose by 46% quarter-over-quarter. This growth signals a potential rebound for Opendoor as it works to regain scale after a period of contraction in the housing market. Additionally, the proportion of homes on the market for over 120 days decreased from 51% in Q3 2025 to 33%, indicating improved efficiency in inventory management.
Free cash flow turned positive at $67 million, a substantial recovery from a negative $83 million during the same quarter last year. Fixed operating expenses have also been reduced to $35 million, reflecting a commitment to streamlined operations.
Restructuring Efforts Yield Results
CEO Kaz Nejatian emphasized that the latest results demonstrate the effectiveness of the company”s ongoing restructuring initiatives. He stated, “These results reflect structural improvements in how we operate — with more accurate pricing, faster inventory turns, and disciplined selection.” Opendoor is executing a four-step plan aimed at reaching breakeven adjusted net income by the end of 2026, improving unit economics, fostering direct-to-consumer relationships, and expanding its product offerings.
The company”s “Cash Plus” program has become increasingly important, currently accounting for 35% of weekly volume, which helps improve capital efficiency while minimizing balance sheet risk.
Outlook for Q1 2026
Looking ahead to Q1 2026, Opendoor has projected an adjusted EBITDA loss between $30 million and $35 million, which is an improvement over analyst estimates of a $37.4 million loss. Revenue is expected to decline approximately 10% in the upcoming quarter, as management has clarified its strategy focuses on long-term growth rather than short-term financial targets.
During Q4, Opendoor sold 1,978 homes, a decrease of 844 compared to the previous year. Over the past two years, the average annual decline in homes sold has been 7.7%. Analysts anticipate a revenue growth of around 7% over the next year, with full-year adjusted EPS forecasted to improve from -$0.25 to -$0.21.
As of the earnings report, Opendoor”s stock was trading at approximately $5.36, with a market capitalization of around $4.41 billion.
