OPEN

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at consumer discretionary - real estate services stocks, starting with Opendoor (NASDAQ:OPEN). The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Real estate services companies provide brokerage, property management, appraisal, and advisory services, earning transaction-based commissions and recurring management fees. Tailwinds include long-term housing demand driven by demographic growth, technology platforms that expand market access, and commercial real estate complexity that sustains advisory needs. Headwinds are pronounced: rising interest rates directly suppress transaction volumes by reducing housing affordability and commercial deal activity. Commission-rate compression, driven by discount brokerages and regulatory changes, erodes per-transaction revenue. The industry is highly cyclical, with revenue swings amplified by leverage. PropTech (property technology) disruptors threaten traditional intermediary models. The 14 consumer discretionary - real estate services stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 10.2% while next quarter’s revenue guidance was 4.4% below. In light of this news, share prices of the companies have held steady as they are up 2.2% on average since the latest earnings results. Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes. Opendoor reported revenues of $883 million, down 43.7% year on year. This print fell short of analysts’ expectations by 1.9%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA estimates and EPS in line with analysts’ estimates. The market seems disappointed with the results as the stock is down 15.7% since reporting and currently trades at $3.48. Read our full report on Opendoor here, it’s free. Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE:HHH) develops, owns, and manages master-planned communities and commercial properties across the United States. Howard Hughes Holdings reported revenues of $1.12 billion, up 330% year on year, outperforming analysts’ expectations by 139%. The business had an incredible quarter with a beat of analysts’ EPS estimates. Howard Hughes Holdings scored the biggest analyst estimate beat and fastest revenue growth among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $65.54. Is now the time to buy Howard Hughes Holdings? Access our full analysis of the earnings results here, it’s free. Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions. Offerpad reported revenues of $77.65 million, down 51.6% year on year, falling short of analysts’ expectations by 8.9%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS estimates. Offerpad delivered the weakest performance against analyst estimates, weakest guidance update, and slowest revenue growth in the group. Interestingly, the stock is up 30.1% since the results and currently trades at $4.75. Read our full analysis of Offerpad’s results here. Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services. Marcus & Millichap reported revenues of $202.9 million, up 17.8% year on year. This result surpassed analysts’ expectations by 4.4%. It was a stunning quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates. The stock is down 1.8% since reporting and currently trades at $30.67. Read our full, actionable report on Marcus & Millichap here, it’s free. Founded in 1929, Newmark (NASDAQ:NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting. Newmark reported revenues of $888.4 million, up 17% year on year. This print topped analysts’ expectations by 2.2%. More broadly, it was a satisfactory quarter as it also logged a decent beat of analysts’ EBITDA estimates but full-year revenue guidance meeting analysts’ expectations. The stock is down 12.3% since reporting and currently trades at $14.20. Read our full, actionable report on Newmark here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Opendoor’s second quarter was marked by a sharp decline in revenue and ongoing losses, triggering a negative reaction from the market. Management attributed the underperformance primarily to ongoing challenges in the U.S. housing market, including weak transaction volumes and persistent seasonality. CEO Kasra Nejatian acknowledged the difficulty, stating, “We’re doing this in the weakest housing market in a generation and in the worst season of the year for us.” The company emphasized operational improvements, with growing home acquisitions and cost reductions offset by muted demand. Is now the time to buy OPEN? Find out in our full research report (it’s free). Revenue: $883 million vs analyst estimates of $899.9 million (43.7% year-on-year decline, 1.9% miss) Adjusted EPS: -$0.03 vs analyst estimates of -$0.02 (in line) Adjusted EBITDA: -$4 million (-0.5% margin, 117% year-on-year decline) Operating Margin: -16.3%, down from -0.8% in the same quarter last year Homes Sold: down 1,960 year on year Market Capitalization: $3.38 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Lorraine Wang (shareholder): asked which internal changes would most define Opendoor’s future. CEO Kasra Nejatian stressed a transition from a finance-driven real estate company to a product-focused technology business. Matthew S. (Say Q&A): questioned the timeline to profitability. Nejatian reiterated, “We’re going to become ANI profitable on a 12-month go-forward basis at the end of this year.” Angelo E. (Say Q&A): inquired about the timeline and economics for enabling peer-to-peer home transactions. Nejatian declined to provide specific profit targets, emphasizing a phased approach and current focus on core and capital-light offerings. Dae Lee (JPMorgan): asked about the impact of AI and the new Chief AI Officer. CFO Christy Schwartz explained that AI has dramatically increased operational leverage and that the Chief AI Officer is focused on consolidating tooling and optimizing model efficiency. Andrew (Citizens): sought details on the cost structure and investment in talent. Schwartz noted that fixed OpEx growth is driven by investment in engineering and AI, but overall costs are expected to scale more slowly than transaction volumes. Looking ahead, our analysts will be watching (1) the pace of mortgage product expansion and adoption in new states; (2) sustained operational leverage from AI-driven automation and reduced fixed costs; and (3) the ability to compress seasonal margin swings in a still-volatile housing market. Execution on adjacent service attachment and continued product innovation will also be important for tracking Opendoor’s path to profitability. Opendoor currently trades at $3.48, down from $4.12 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 2:00 a.m. ET Head of Investor Relations - Michael Judd Chief Executive Officer - Kasra Nejatian Chief Financial Officer - Christy Schwartz Michael Judd: Hey, everyone. Welcome to Opendoor's Second Quarter 2026 Financial Open House Earnings Live Stream. I'm Michael Judd, Opendoor's Head of Investor Relations. Now a few housekeeping items before we get started. Like all things at Opendoor, we're ready to do this faster. Details of our results and additional management commentary are available in our earnings release, which can be found at investor.opendoor.com. The following discussion contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are statements that could be deemed forward-looking, including, but not limited to, statements regarding Opendoor's financial condition, anticipated financial performance, business strategy and plans, market opportunity and expansion and management objectives for future operations. These statements are neither promises nor guarantees, and undue reliance should not be placed on them. Such forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Additional information that could cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Opendoor's most recent annual report on Form 10-K for the year ended December 31, 2025, as updated by our periodic reports and other filings with the SEC. Any forward-looking statements made on this webcast, including responses to your questions, are based on management's reasonable current expectations and assumptions as of today, and Opendoor assumes no obligation to update or revise them, whether as a result of new information, future events or otherwise, except as required by law. The following discussion contains references to certain non-GAAP financial measures. The company believes these non-GAAP financial measures are useful to investors as supplemental operational measurements to evaluate the company's financial performance. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP metric, please see our website at investor.opendoor.com. And with that, let's get into the open house with Kaz and Christy. Kasra Nejatian: Good afternoon, everyone. I usually start these calls by showing you a clip of what I told you during the last call. But this time, I'm going to tell you a story about what my wife told me, and I don't have a video clip because it'd be weird if my wife and I just record each other all the time. So you're just going to have to use your imagination. When I was leaving home to fly to San Francisco before my first day at Opendoor, I told my wife that I'd be back home the following Wednesday, maybe Thursday. And she didn't miss a beat. She said, don't come back until there's a plan to break even. Look, there's a lot of ways people describe the thing I'm about to tell you. It just depends on which tribe they're part of, right? Paul Graham has a famous essay about it, finance people call it a glide path to profitability, mostly because I think finance people are legally required to say things like glide path. But basically, the question is this, if nothing changes and you keep doing what you're doing, what happens? Let's see. There is no magic here. It's just math. This next section, it's going to take me a few minutes, but it's incredibly important. I want to give you all the same framework we use internally, so you can see things the way we're seeing them right now. Opendoor's core business math is simple. It's how many homes we transact on times our contribution margin minus our OpEx and our financing costs. So let's go through each of these 4 numbers. First, volume. Right now, we're signing more than 500 contracts every single week. Last week, we signed around 700. That's our highest contract week in years. That's over 5x higher year-over-year and 5x higher since I joined the company. And just think about when we're doing this. We're doing this in the weakest housing market in a generation and in the worst season of the year for us. The spring and summer seasons are basically the only times of the year where the traditional real estate system still kind of actually works, right? But over 500 sellers are still saying yes to Opendoor every single week. If you've been following along on accountable.opendoor.com, you've seen this, right? When we put up our ranges last quarter, those numbers weren't sandbags. Those were numbers we thought we'd see to put us on the path we need to be at the end of this year. The fact that we have been above the high end of the projections every single week for the last quarter is the reason that I'm so confident about what I'm about to say. Look, our ANI breakeven framework assumes 6,000 quarterly transactions at $375,000 each for around $9 billion in revenue. We're pacing well above that on a contract basis in Q2. And look, some of these won't close. That's normal. That hasn't changed. That isn't the point. The point is we've achieved this in a market and at the time of the year that is the worst for us. I think it's super reasonable to expect that we're going to end up north of the $9 billion mark in revenue. Now it's important to take a second and describe a pattern that we're seeing as we ramp up for this revenue. Look, companies have kind of 2 ways to artificially increase growth in the absence of actual improvement in the company, right? Those 2 levers are marketing and pricing. I'm going to get to marketing in a second, but I want to start by talking about pricing. If you've followed Opendoor for a while, when you see high acquisition volumes, you should be skeptical. You should be asking, are we buying growth through more risk and lower spreads or using regular language that everyday people use, are we paying more than fair prices for homes? Opendoor did this during the COVID era, right? To get volume, it took lots of risks because it believed that price was the only lever it had at its discretion to increase conversion. And if it couldn't reduce its overall cost structure, it would lose money. What I'm about to show you is probably the slide that has made me most excited about what we've gotten done so far this year. This shows our true seller conversion at different spread levels. So true sellers are the people who request an offer from Opendoor and then either sell to Opendoor or list on the open market. So it's the conversion on people who actually want to sell their home. What this chart shows is that we are converting dramatically more sellers at the same spread levels than we've had in the past. We're on track to hit more than the volume we need, and we're not doing it by paying above fair prices for homes. That should mean something for our contribution margin. So let's talk about that, right? Our contribution margins have been improving every single quarter this year and are now in the target range that we told you we would be in. There are about 100 or so homes left from the Opendoor 1.0 era that are going to be a drag on our contribution margin, but they're going to be sold mostly this quarter, and we're going to be done with them, and I'm never going to talk about them again. But on the new cohorts, our margin is performing and cohort curves are doing what we want them to do. Now look, it's for sure true that Q3 is a seasonally worse contribution margin quarter for us than Q2. So you should expect quarter-over contribution margin to go down from Q2 to Q3. This year, we also have the impact of the Doma acquisition, which is a temporary drag on contribution margin while we integrate Doma into Opendoor. But we expect to break with Opendoor's historical trend and have a Q4 that is higher in contribution margin than Q3. Every year in Opendoor's public company history, Q4 has had a worse margin than Q3, and we're about to reverse that trend. But going back to the main point. In Q2, we got to contribution margin zone we told you we would aim for, and we have proven that we can run the company here. Okay. So acquisition volume is tracking to where we want it to be and margin is within the range that we told you what you have to be in. That leaves OpEx and financing. Let's talk about OpEx. So Opendoor's OpEx includes marketing, variable operations, which we call just operations in our financials and fixed operations. So most of our costs happen when we buy and renovate homes. So it's useful to look at these costs in relation to our acquisition numbers since that is a variable that scales them, right? So we have this idea called acquisition GMV, which is roughly the revenue we expect to get from homes we've closed on. Our homes have been selling right around the $375,000 mark. So let's use that assumption so I don't have to leak our internal model to the world. It will also make the math easier. So acquisition GMV is acquisition times $375,000. With that in mind, let's talk about the 3 parts of our OpEx. First, marketing. Marketing is our cost of customer acquisition per home we buy. We do basically no marketing when we sell homes. And the last time we signed more than 6,000 contracts in the quarter, our marketing spend was over $80 million. This quarter, it was 5, not 5-0, just 5. I know that sounds crazy. But yes, Morgan actually wrote the book on this. And yes, this is one part of Opendoor where I think we're executing 10 out of 10. It took us a minute, but we have found our groove. Our marketing as a percentage of our acquisition GMV has gone from 1.6% under Opendoor [ One to 0.3% ]. Let's say, we'll not be that good forever. Let's assume we'll get a little worse. Let's assume we'll have 0.5% of acquisition GMV on marketing. Just remember that, okay? Next, let's talk about variable operations. Variable operations are mostly the costs we incur when we're buying and renovating our houses, right? This is the human and system cost of underwriting, buying and renovating a home. So variable ops have declined from 2.7% of acquisition GMV to 0.9% of acquisition GMV. If you look at acquisition contract GMV, this number is already at 50 basis points. But look, don't give us the benefit of this doubt. There'll be some contracts that will fall through. So let's mark this up. Let's say it will be 70 basis points on acquisition GMV. Why has this number gone down so much? The answer is simple, and we would tell you, we are among the best users of AI in tech. We have fundamentally reengineered our business around AI automation across underwriting and operations. Look, in Q3 last year, the people who managed the renovations of our homes, our HPMs, they carried 3 renovations per person per month. Right now, they're carrying around 10. By the end of this year, they will carry around 20. In Q3 last year, our pricing underwriting team could handle around 20 underwrites per person per day. They can now do over 50. They'll be able to handle around 100 by the end of the year. A couple of years ago, more than 80% of homes that we bought required an Opendoor employee to visit them before we even made an offer. Today, that percentage is below 20%, and it will go down to below 10% by the end of this year. So 70 basis points, just remember that. The last component is our fixed operations. These are the people that build the machine that runs Opendoor. Last year, there were a lot of consultants in G&A. Now it's a lot of engineers and data scientists writing code. One of the beautiful things about code is that scales really well. Spinning up the server is easier than hiring a new consulting firm. And you can see this in our numbers. In Q3 last year, this number was over 8% of our acquisition GMV and over 6% of our acquisition contract, right? In Q2, this was 2.1% of acquisition GMV and 1.4% of acquisition contract GMV. Let's say it will be somewhere between those 2 numbers. Let's pick -- I don't know, 1.7%. So 50 basis points on marketing, 70 basis points on variable operations and 1.7% on fixed OpEx. Add all those up, and it's 2.9% on our acquisition GMV, which doesn't give us the benefit of our increased acquisitions that we're making right now. If you take the dollars spent and compare them to our $9 billion run rate, that's 2.4%. That's less than the low end of 3% to 4% range I told you we would need to get to become ANI profitable. Okay. The last component here is interest. Look, we finance the homes we buy. So this scales with how many homes we buy and how long we own them. At the speed that we turn inventory right now, that's about 3x a year. So net interest runs a little above 2% on our revenue. We're working on lots of things that will lower this, and I think there's a lot of upside here, but don't give us the benefit of the doubt. Let's assume they just stay where they are. So what would happen if we just froze the company? Like, if we pretend that we don't improve anything, no new products, no funnel improvements, no pricing model updates, no rate cuts, no macro rescue, no one has to be a hero. We just keep doing exactly what we did last week. In fact, the math I just showed you assumes that we get worse at marketing and operations, which we for sure won't. But what happens if that happens? Current volumes, current margins, worse cost structures, current financing costs, run those numbers forward, and this is the back of napkin math, right? At roughly 6,000 transactions per quarter, Opendoor reaches adjusted net income profitability on a run rate basis heading into next year. No new assumptions, just today's company carried forward. Look, I told you this on our very first call. I've said it on every call since then, adjusted net income breakeven on a 12-month go-forward basis by the end of 2026. When I said this, there were more than a few things that needed to go right. But we moved fast, we shipped. We took charge of our own company every single week. And every quarter, the math became more and more obvious. Yang, our Chief Investment Officer, he runs our pricing and meeting teams at Opendoor. He has a simple way of putting these things. He likes it so much that he actually bought a T-shirt at a nerd convention and he wears it to the office. The T-shirt says, it's just math. For years, one question has followed this company everywhere it went. Will Opendoor become profitable? As of today, that question is boring. As things stand right now, Opendoor will become ANI profitable. It's just math, sweetheart, after this call, I am coming home. So the last few minutes have sounded like a confident CEO, 10 months into a turnaround, holding a napkin that says, everything is working. But let me tell you what's not a napkin. Here's the uncomfortable truth. Nothing about this has been easy. Turnarounds are really, really hard. And there's obviously a bit of a survivor bias here, right? Everyone knows about the ones that work in retrospect. But why will this one work? We're 10 months now into this process, I'm really proud of what we've done. If we freeze the company I just told you, we would become AI profitable even if the macro keeps punching us in the face. Look, we're going to become ANI profitable on the path to fulfilling our mission and becoming a meaningful company in this country. But there's something else that I can tell you, right? The math works, and we're going to become ANI profitable. We can very clearly see that right now. But what that does not mean that everything between here and there will be just perfectly smooth. Turnarounds are hard and they surprise you sometimes. Sometimes these surprises are good. And I want to talk about 2 of them. First is seasonality. Opendoor's business has had a real seasonality to it. We've traditionally been a company that's had a feast in Q2 and famine the rest of the year. In fact, every year since we've been public, other than 2023, our margin degradation between Q2 and Q3 has averaged almost 500 basis points. Look, this year, we haven't killed off seasonality entirely. So it won't be 0, but it will be way, way, way less. Folks won't appreciate why this is a big deal, and they won't appreciate it for a while. But I think of everything we have done this quarter, this compression may be the most important thing for the long-term health of the company. That's the first thing. The second one is the embedded impact of things that have already happened, but don't look like they have. When a seller signs a contract with us, that home becomes revenue a few months later, right? We buy, we fix, we renovate, we list, we sell. And we can't really skip a step in the theme, right? It just takes time. This means I always live a few months in the future, right? Every week, contracts turn into homes, which turn to listings, which turn to closings. What I see today in our acquisition contracts turns into GAAP revenue a few months from now based on our conversion rates. It's why we put our weekly contracts on accountable.opendoor.com, so you can see what we see in real time a few months sooner. C.S. Lewis has a famous metaphor about watching a horse grow wings. As a father of daughters, I'm a bit of an expert on this topic. This is technically a pegasus, not a unicorn. The horse in transition for the first little while would look a little odd, right? This is a horse that was running fast, and it's going to run a little awkwardly right now because he's growing these bumps on his back that are going to become wings but aren't quite yet. He doesn't take off until the wings grow. Silicon Valley has spent the last 20 years chasing the unicorns, and we're coining a new category, the pegasus, not a company that was magical from the beginning, but a company that had to grow its wings in public. This is what transformations look like midstream. The changes are real before the financial statements catch up. That awkwardness is part of process. Opendoor is really starting to feel that way to me, awkward, awkward, awkward flight. We still have some awkward growing pains, but the wings are growing, and it really, really feels like this thing is taking off. Speaking of things that still look a little awkward but are starting to grow wings. Let's talk about mortgages. Look, when you buy a home, you're actually buying 2 separate things, the house and the money, 2 different work streams, 2 different sets of people, 2 time lines that need to kind of automatically merge and 100 different ways that can kill the deal. We're classing these 2 things into one integrated transaction. But why does this matter? It matters because friction. Friction destroys the process and getting rid of it expands our margin, reduces risk and builds a real flywheel between our buying engine and our selling engine. The best place to sell a home becomes the best place to buy one. At our core, our job is simple, remove friction from a homeownership process. And there are 2 kinds of friction in residential real estate. There's a friction that holds people in place, right? Sellers are stuck. They're stuck because of price uncertainty, repair headaches and all the traditional pain that goes along with the time line of selling a home. We solved that first with our offer product. Our core offer product gives you near instant certainty. But unsticking the sellers is only half the trade. Once the buyer enter the friction, there's a whole new type of friction. This is like the rate shock that acts as a drag that's already in motion, right? A 7% mortgage rate slows the deal down or it kills it entirely. That's exactly the friction that our mortgage product eliminates. Look, our core product allows sellers to move on. Our mortgage products allow buyers to move in. And this isn't theoretical. Look at the early numbers. In Colorado, our first launch market, more than half of our scheduled closes are going to be financed through Opendoor home loans. In Texas, just 6 weeks after launch, we're already at nearly 1 in 5. And that's before rolling out FHA, VA or adjustable rate products. Look, to be clear, each state we launch will have its own dynamics, right? But Texas shows where a market can be in just 6 weeks and Colorado is where a market can be with some seasoning. Neither of these are ceilings, right? And these numbers are going to bounce around as we scale, and that's normal. What matters is the direction and the underlying physics. There's something big that I think people are missing here. The frame of this has always kind of been wrong, right? This is not an adjacent service. This is not an attached play. If you're evaluating the mortgage as an extra fee on the side, sure, it adds margin, but you're missing the bigger picture. Mortgage is the other half of the coin. Our market maker needs both sides to clear, right? Our offers create sellers, our mortgage create buyers. And you can look, ask a fair question, right? We tried mortgages before and it didn't work. Why will this time be different? I like this question that I just asked because it gives me a chance to be nerdy. You see, I love studying the history of companies. And I want to tell you a story that I tell our product managers. I call it good Sears and bad Sears. For years, I've carried this metal card in my wallet, like actually in my wallet. I love the history of money. I wrote a book about this. So it's less odd for me to carry an old unusable charge card than almost anyone else. But this is the Sears revolving charge card. This one was issued in 1951 to help fund customers buy stuff from Sears. Sears eventually allowed other merchants to accept this card, and that business inside Sears went to become one of the most successful financial services products ever launched. And eventually, it became worth more than all of Sears itself. That business was eventually spun out, and we now call it Discover. That was good Sears. Financial infrastructure born inside a transaction. A few decades later, Sears bought Dean Witter, it's a brokerage firm, and they put it inside their department stores so that a mother of 3 who came in for a new fridge could also leave with a mutual fund. The idea was just absurd. It was 2 parts sharing a roof, but not a purpose. Sears had no competitive advantage, nothing that would make this product special. A bunch of number crunchers tried to create ROI through attach. The whole thing failed. That was bad Sears. Look, the main question is this. There is a difference between bolting something on and building something in. During my time at Shopify, we built Shopify Capital, the good Sears way. It didn't work because we cross-sold merchants. It worked because the platform already saw every merchant in real time. We didn't need a loan application. We already had the underlying data, right? Financial product wasn't bolted on. It was born inside the transaction. Opendoor 1.0 was mortgage and honestly, every mortgage product on the market is bad Sears. You buy a house and then someone awkwardly tries to sell your loan. It just adds friction and it fails because it deserves to fail. These products that fail aren't about the customer. They're about companies wanting margin. The product we're building today, it sits inside the process from day 1, built in, not bolted on. That changes both the customer experience and our unit economics. And here's why. People think mortgages are special. They're really, really not, right? The legacy mortgage industry carries 65 to 85 basis points of yield in every single loan just to feed the pork barrel buffet of people taking margin. The legacy mortgage industry pays thousands of dollars to acquire each buyer. And this chain exists only because it has always existed. Look, we didn't ask how we could make money on mortgage. We asked the following question. If our goal was to offer the lowest rate possible, what would be built? So we built our own point of sale and our own loan origination system. And we offer only the most common loans, no bells, no whistles. You can have any flavor of ice cream you want so long as it's vanilla. If you want a fancy mortgage with lots of features, please use a bank. Do not use Opendoor home loans. But if you want a regular mortgage or a regular home, we are going to be your best bet. We have automated so much the process that our loan officers can handle 50 mortgages a month against about 10 in the industry. And we've spent $0 on marketing. We took all the money we saved and passed them to homebuyers. We're not new at this, right? Homebuilders have figured this out decades ago. A great mortgage is a more powerful force than a price cut. And we have figured out the same thing. But because we turn inventory a few times a year, the math is even better for us. For a market maker, a lower mortgage rate is the thing that speeds everything else up. It removes friction and need to get more turns a year. It frees up capital so we can buy the next house and the next and the next. We haven't invented new math here. We have just bent it in a way that a stand-alone lender structurally can't. Look, I've spent most of my career building financial services products. I've seen this work. Shopping installments went from nonexisting to being the largest installment product on the Internet in a year. Standalone lenders are constantly fighting gravity on customer acquisition. For us, the mortgage is just a second wing. Once both wings are locked in place, the physics switch from drag to lift. And mortgage wasn't the only product that had lots of launches. We also deprecated 5 bespoke tools and multiple micro services and unified them all into Opendoor's internal God view, Ops Hub, a single piece of software that's our command and control center gives us an end-to-end view of every home. We opened Opendoor up to agents. We launched Opendoor 2.0 for agents with a new structure that puts our offers directly inside the tools agents already use, tools like RealScout, SOLD.com and Movoto. And our new partner API launched, which means integrations into Opendoor now take days, not months. We rebuilt Opendoor iOS app, right, from the ground up. We held it to one bar, excellence against apps people use every day, not good enough for a real estate app. We launched a unified dashboard that serves as a user's home within Opendoor, whether you're selling to us, buying from us or both. There's now one place for your entire relationship with Opendoor. We put machine learning to work on underwriting. Our auto underwriter handles roughly 1 in 5 valuations, and we're testing models that value entire segments of homes with almost no manual review at all. We turned Chloe, our AI assistant, into a real part of our sales teams. She converts 3x what she did in January at 1/3 of the cost. She works 168 hours a week, takes no vacations or bathroom breaks and is completely transparent about being a bot, but people love using her because she is good. We became faster under the hood. Seller dashboards now load 3x faster as contract changes went from 4 hours to 10 minutes. And we retired legacy systems that have been slowing us down for a better part of a decade. We launched a new set of alerts for our buyers, including nearby listing matches, price drop notifications and recommended homes. And that's just a small sample of what we've shipped in the past quarters. Look, in my first call, I told you we would drive Opendoor to ANI profitability. I said drive because we didn't know exactly how we would do it. And we didn't really have any proof points. Today, we do. We've shown that if you ship great products every week and if you keep tilting the world toward homeowners, the score just kind of takes care of itself. With that, I'll hand it over to Christy to tell you about the numbers. Christy? Christy Schwartz: Thank you, Kaz. Three things to know about Q2 before we get into the details. We grew homes acquired by 77% quarter-over-quarter and 149% year-over-year. We also closed the quarter with another 2,310 homes under contract. A year ago, that number was 393. Contribution profit was $51 million, up 59% quarter-over-quarter and 22% more homes sold. Contribution margin was the highest we've reported in 2 years. A year ago, we purchased 1,757 homes and spent $15 million on operations expense. This quarter, we purchased 4,378 homes and spent $14 million, 2.5x the volume on less variable cost. Volume, margin, operating leverage. These are the 3 management objectives on our path to profitability. The table in our earnings release shows where each one stands. Let's walk through them now. First, scale acquisitions. We purchased 4,378 homes in the quarter and saw revenue growth of 23% quarter-over-quarter to $883 million. Acquisition contracts reached 6,908, up from 5,136 in Q1. Marketing spend moved in the opposite direction from $19 million to $5 million quarter-over-quarter. Second, improve unit economics and resale velocity. Contribution margin has climbed from a low of 1%, 3 years ago to 5.8% in Q2, landing in the middle of our 5% to 7% range we guided to. Aged inventory, which we define as homes listed for greater than 120 days, has fallen from 51% over that same span to 9% now. Third, build operating leverage. Trailing 12-month operations expense was 1.6% of revenue, up from 1.3% in Q1. That said, operations expense actually declined from $52 million to $51 million. The increase in the ratio reflects last year's higher revenue quarters rolling out of the trailing window, not any change in our cost discipline. On a per acquisition basis, operations expense was $3,000 this quarter, down from $5,000 in Q1 and $8,400 a year ago. Fixed operating expenses were $35 million, up $2 million from Q1, funding our investments in AI and engineering. Turning to the balance sheet. We ended the quarter with $896 million in cash and cash equivalents. We deliberately put capital to work, rebuilding the larger, higher-quality book, growing our inventory by more than $700 million during the second quarter, funded largely by our nonrecourse asset-backed facilities. We held 5,459 homes in inventory at quarter end with another 2,310 homes already under contract to purchase. One point on capital. As our cash now more later product scales, it provides a more efficient way to grow. It commits less capital per home than our core product, giving us a way to add acquisitions without growing our balance sheet at the same pace. Now the guidepost for Q3. Acquisitions, you can continue to track our contracts on accountable.opendoor.com. Revenue, we expect revenue to increase at least 20% year-over-year. Contribution profit, we expect contribution profit dollars to more than double year-over-year and contribution margin to be around 4% to 4.5%, reflecting typical seasonal trends. Contribution margin has fallen from Q2 to Q3 in every year we have been public by an average of 470 basis points, excluding 2023 when 2Q CM was negative. We expect to decline well below that average and the best Q2 to Q3 relative performance we have delivered outside of 2023. Adjusted EBITDA, we expect to be adjusted EBITDA profitable on a 12-month go-forward basis as of the second quarter of 2026 (sic) [ 2027 ]. In Q3, we expect a modest increase in adjusted operating expense, driven mostly by the holding costs that come with growing our inventory and a small increase in marketing. Our commitment has not changed. We expect to be adjusted net income positive by the end of this year, measured on a 12-month go-forward basis. A quarter ago, we told you exactly what this quarter would look like. And despite a real estate market that remains challenged, we did what we said we would do. With that, Michael, I'll turn it over to you for questions. Michael Judd: Thanks, Christy. Our first question comes to us via video submission from Lorraine Wang. Lorraine Wang: Hi, my name is Lorraine Wang, a long-term Opendoor shareholder. When long-term shareholders look back 2 years from now, what will be the 1 or 2 changes inside the business you hope they will point to and say that's when Opendoor truly became a different company? Kasra Nejatian: All right. Thanks, Lorraine. Look, thanks for being a long-term shareholder. People like you are the reason this company survived so that we could get a chance to turn it around. I genuinely think of our everyday shareholders as my boss. So I'm going to give you the same answer I would give if you're my boss. I won't give you a number because it won't be a number or a future launch. It just won't. It will be this. We stopped being a real estate company with a website and became a product company that happens to be in real estate. Let me tell you what I mean. Look, for most of this company's life, it seems like every decision we made got filtered through a spreadsheet, mortgage rates, HPA, spreads, conversion, unit economics. And look, I look at these things every single day. They are very real, but that's the business. It's not the company. The company is actually the product and the customers. When you run a company like a financial portfolio, every individual trade, like it makes sense on paper, but the end-to-end user experience it just becomes completely broken. You end up with something that is barely functional, but a pain to use. You end up with a bank. Look, you don't build for a future that doesn't yet exist in spreadsheets. So the shift is this. Our primary goal, the reason we come to work every day is to build something people want. Our unit economics are downstream from that, right? When people use our product, when we eliminate friction, when we help our users, conversion goes up, margin goes up and everything follows. Our product is better today, but it's still not where it should be, right? This is the largest transaction of most folks' life. And for most of them, it's also the worst. There's like no reason why both of those facts have to be true. 2 years from now, I hope to point back to this. We decided to build an excellent product. We took the parts of product that were bad every single day, and we fixed them. And then you'll wake up one day, and you'll see that all the work we have done to fix our infrastructure, to build a better product, to build a mortgage system that is just awesome, will merge together and they'll make the process of buying and selling a home as easy as using Shop Pay. But it will all -- all of it will have started on this. We build products, not spreadsheets. Michael Judd: Our next question comes to us from Say Q&A. Matthew S. asks, are we still on track for profitability by the end of this year? Kasra Nejatian: Yes. Yes, yes, yes. Look, every single quarter, we've done what we said we would do. We have come here. We said what we're going to do and then we've done it. We're going to become ANI profitable on a 12-month go-forward basis at the end of this year. I told you we're going to do it on our first earnings call. I sat here and I said we're going to become ANI profitable on a 12-month go-forward basis at the end of this year. And we're now giving you the math to back this up. The answer is yes. Is that clear? Michael Judd: Clear to me. Next question, Angelo E. asks, you have described letting buyers and sellers transact directly on Opendoor without Opendoor owning the home. When could this launch and what revenue and contribution profit per transaction are achievable? Kasra Nejatian: Angelo, thanks for the question, man. Look, let me address the economics of this upfront by saying, I'm not going to talk about revenue or contribution profit on a product that we haven't launched yet. This is the same answer I gave to Lorraine. Great products don't start with a margin target. We build for the mission and we build for the user and economics follow, right? Our mission is to tilt the world in favor of homeowners. Today, Americans pay 10% to 12% transacting on the biggest assets they own and the process sucks. That's the problem that we need to fix. And we'll look at it in 3 steps, right? I come from the e-commerce world, so I like using that language. I say 1P, 2P, 3P. Step 1, 1P. We buy the homes ourselves and we sell them. This is our regular core cash offer product. Step 2, 2P. This is cash down more later. We still buy your home, but it's a different way of owning it. It's capital light for us with less risk with alignment with the seller, right? Step 3 is 3P. That's what you're describing, buyers and sellers transacting directly with each other using all of our services and tools without using any of our balance sheet. Your home, your transaction, our platform. We're on step 2 right now, and we're not going to move to step 3 until we are really good at step 2. Now look, for what it's worth, I think people overestimate how hard step 3 is and underestimate how important step 1 and 2 are on the way to step 3. Just look at Amazon. What did Amazon do? First, they sold their own stuff in their own warehouses, 1P, right? Then they sold the things that they sold, but are shipped from other people's warehouses, 2P. Then other people's stuff out of other people's warehouses, 3P, then Amazon launched other people's stuff from Amazon's warehouses using Amazon Pay. 3P was attached services offered by Amazon. Those last 2 steps like launched the fastest because when you were excellent with the first 2, the other 2, I think that much work. And I have some conviction here because I came from a place where the entire business was 3P, letting people transact without owning the stuff. It works really, really, really well, but only once you've done the work required to earn it. Michael Judd: Great. Our next question comes to us from Felix B., Kaz, could you update on mortgage product and how many states are using Opendoor mortgage? Kasra Nejatian: Yes. Thanks, Felix. I spoke about this a bit already, and I want to be a little careful because our lawyers are going to give me notes after this. But look, the mortgage licensing process seems to have been designed by the same people who designed the DMV. It's not built for speed and it's infuriatingly slow on purpose. It's state-by-state slog, and we're working our way through it. And we're doing it faster than I think anyone expected, but generally faster than people thought we could do it, but slower than I want. So we expect to be licensed in around 35 to 40 states by the end of this year. But also like we'll get there on this front. It's like we know we will. So the real question is, how are we doing in states where we are now live? And the answer is we're doing just excellent. The buyers are getting amazing mortgage rates very fast, very little pain, end-to-end. And if they want it, they don't have to talk to a single human being. Look, I shared numbers earlier. It's over half of our scheduled closes in Colorado are going to be on Opendoor home loans, nearly 1 in 5 in Texas, that's only 6 weeks after launch, and it's a completely unoptimized product right now. We don't offer FHA, which we will. We don't offer VA, which we will. We don't offer ARM, which we will, right? But the reason this is working is simple. There's a structural unfairness in the American homebuying process. There's a pork barrel buffet of margin that takes money out of the hand of homebuyers. It's 65 to 85 basis points baked into every single loan. We built a mortgage product without any of these costs, and our job is to pass the savings on. When the default option is the cheapest and the easiest option, like it just works. Now like, look, in the spirit of being very fully transparent, if you're buying a $10 million [indiscernible] in Manhattan, I would like you to use someone else. Do not use us. We will do just vanilla. But I'm very confident we're going to do vanilla better than anyone else. It's going to be just excellent. Michael Judd: Our next question comes from Angelo E. He's curious, what could keep Opendoor below 2% of U.S. home sales? Is it seller adoption, home eligibility, offer competitiveness or buyers' willingness to transact through Opendoor? And what must change to exceed 6% -- is that good? Kasra Nejatian: That's Angelo, it's 2 good questions in 1 quarter. It's the same Angelo, I think, right? Okay. What can keep us below 2%? Honestly, like these are things I think about a lot. Like every morning, I look at our share as a percentage of all U.S. But a lot of it is what we can control. So let's talk about 2% first, okay? Take offer competitiveness. There's 2 things that matter on this, right? How accurately we price the home and how good we are at our operations. So in the past, our offers were bad because we were bad at both of these things, and we just use spread to cover our assets. This year, we've gotten much better, like we're faster and more accurate with much more property over dispersion. So the price of each individual home reflects the merit of the home and portfolio risk to us, not some random market average. And as a result, our offers are just genuinely better, and we're converting better at the same spreads as we have at any point in our history. So seller adoption isn't really the constraint. And the demand has always been there. It's just that our offers have sucked and we couldn't convert. We fixed that. Home eligibility is not everything to be fixed. Our buy box basically covers the entire Lower 48 now, well over 90%. So that's not a constraint. And buyer willingness is really just a function of us doing our job and not screwing up. So I don't see 2% as a natural ceiling. I really don't. And our current trajectory will cross it. And if we don't, it will be because we screw something up. But to get above 6%, I think 2 things need to happen. I don't think I've talked about this before. But transparently, it's obvious. 3P needs to be working. Cash offers are generally constrained by our risk appetite on our balance sheet, right? Our marketplace isn't. The second thing that needs to happen is more of the transaction needs to happen inside Opendoor. Let me give you like a real example, like insurance. Like today, our closings get delayed constantly because the buyer's insurance isn't ready, and we can't fund the mortgage. So that's the step we don't control yet. But I'm relatively confident that the same logic that applied for the mortgage will apply to insurance. We're not going to capture a key. We're just going to make the friction disappear and will be very, very good. Michael Judd: Our next question comes to us from Dae Lee from JPMorgan. Do you have any early thoughts on 2027? Kasra Nejatian: Yes. I'm incredibly bullish on 2027. I don't want to give guidance for 2027 out, but we're spending a lot of time doing very, very difficult work, setting ourselves up so we can have an excellent 2027. I generally think we've surprised people by how much of the U.S. housing market will flow through Opendoor next year. Look, it's very obvious. We're building a car that's designed to go 200 miles an hour. And right now, we're kind of testing it at 30 miles an hour. So we know it won't fall apart at the turns. But this thing really, really wants to go faster. Michael Judd: Another question from Dae. How is AI specifically changing your ability to scale acquisition volume and improve margins? And what changes are you expecting now that a Chief AI Officer has joined the team? Kasra Nejatian: Christy, do you want to take this? Christy Schwartz: I am happy to take this because I personally love the leverage that you get from AI and the environment we've created here at Opendoor to encourage all of us to use it. Last week, while I was in a meeting, I had an agent running a contribution margin analysis and another agent checking a tax filing that a colleague had prepared. So I literally was like in 3 places at once. And I think that kind of applies and extrapolates to the whole organization. If you walk around our offices, it looks more like a tech lab than a real estate company, right? Like you see people with Terminal up, Cursor up, Claude Desktop up, doing all sorts of things, people running into meetings with their laptops half open because they don't want to accidentally disrupt AI from its work in progress. Kaz walked through a few examples of how we're actually seeing this leverage in play. You have home project managers that used to manage 3 [ rentals ] at a time that are now managing 10. And by the end of the year, we expect that to be 20. We -- used 80% of our homes, you had to have someone in your house before you could actually receive an offer. We have that down to 20%, aiming to be at 10% by the end of the year. Our Chief AI Officer was a fantastic addition and his primary objective aligns with our third management objective, which is to build operating leverage so that our costs don't scale linearly with acquisitions. That means making sure our AI spend is efficient and productive. Performance and costs vary a lot depending on which model you use. So we route work to make sure the right model handles the right task instead of everyone defaulting to the last model they used. He is focused on consolidating tooling, building with fewer vendors to focus our tech stack and using scale to negotiate better terms with vendors. And then education and strategy, working with our teams to come up with elegant solutions to really challenging and unique problems and giving each team the tools and training they need to operate at the level of our best individual users and engineers. Thank you for the question, Dae. Michael Judd: Awesome. Next question comes to us from Andrew from Citizens. Could you talk about your progress with adjacent monetization? I want to know mortgage specifically, but can you grade your progress on product attach broadly and where you see a positive trajectory for adjacent revenue and gross profit to improve overall unit economics of transactions? Kasra Nejatian: This is a great question. Okay. Well, this isn't Harvard, so I won't grade inflate. I'll just tell you the grade. I would tell the PM leading this stuff in the performance review. Okay. On mortgage, I give us a solid B-. Like what we've built is insanely hard to imagine building. And we've done it in a hard environment just obscenely quickly and the product is just excellent. But you don't get participation prizes, like we've done all the right stuff to set ourselves up, but we now have to go out and win. Good early results, but we have work to do. On title and escrow, I give us like a B+. Like we're almost certainly --like, I'm not very certain about this. We have the best title and escrow product in the U.S., like it's not even close. No company, no company could acquire as many homes as we do and have capacity left over. And I think we can just like do an order of magnitude more transactions with our existing capacity. But it's not an A yet because we aren't yet doing a majority of title and escrow transactions in the U.S., so B+. On insurance, I'd give us an incomplete, like we basically dropped out after the semester, so we could study for mortgage. We'll pick this up next year. So I think things are going better than anyone could reasonably have expected they would go. They're just generally going excellently. Michael Judd: Good report card. We're coming up on time. So I think this will be the last one we'll have also from Andrew at Citizens. From X/Twitter, it feels like Kaz is doing a good job of recruiting and bringing in high-level talent. Can you talk about the investment intensity and expectations that the investment community should have around the cost structure of Opendoor as the team appears to still be being built out? Christy Schwartz: Thank you for the question, Andrew, and thank you for the kind words on our team. It is truly incredible the talent that we've been able to bring in. And they say, players attract a talent like the talent just keeps compounding. These are people who are uniquely skilled in their craft like Wu and Morgan. They're deeply passionate about our mission and the problems that we're solving here. Here's how I'd frame the investment. I talked about in the prepared remarks that fixed operating expenses increased from $33 million to $35 million in the quarter, and that is primarily driven from our investments in talent and engineering and AI. But the way to think about it is that we're spending small controlled amounts now to build software that scales instead of spending large amounts later ramping up headcount to address capacity constraints. We're streamlining and consolidating our SaaS tools and putting that spend into engineers and AI. Less time and money spent stitching together someone else's software and more time spent building our own which we can shape to solve the challenges that are unique to our business. For example, turning on thousands of utilities, turning them off and on every single month as we cycle through homes. There's a cost tailwind underneath all of this. The cost of AI capability itself keeps getting more efficient, what used to take a large model and real spend now runs cheaper and often faster. So the same investment deployed effectively can buy more each quarter. The return on our investment will come through in both fixed and variable OpEx as we scale. So the last time acquisition contracts were above 6,000 in a quarter, fixed OpEx was double what it is today. And as we highlighted on the call, acquisition costs -- sorry, acquisition closes more than doubled year-over-year, and we spent $1 million less in variable operations. These achievements are a reflection of our technical investments. So the expectation I'd leave you with fixed OpEx may keep growing modestly in dollar terms as we invest, but the discipline we're holding ourselves to is that fixed OpEx stays relatively constrained and variable costs grow slower than our volumes do. Kasra Nejatian: Can I end this? Michael Judd: Go for it. Kasra Nejatian: Thanks, folks, for joining us for our financial open house. Our job here is simple. Our job is to come here and tell you we did what we said we would do. We've now done that 3 quarters in a row, and we'll come back next time and tell you again, we did what we said we would do on our way to tilting the world toward homeowners. With that, we'll see you next time. Cheers. Before you buy stock in Opendoor Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Opendoor (OPEN) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Opendoor Technologies Inc (NASDAQ:OPEN) reported a 77% quarter-over-quarter and 149% year-over-year increase in homes acquired, with acquisition contracts reaching 6,981, the highest in years. Contribution margin improved to 5.8% in Q2, within the company's target range of 5-7%, and the highest in two years. Marketing efficiency improved dramatically, with marketing spend down to $5 million from $19 million in Q1, and marketing as a percentage of acquisition GMV reduced to 0.3%. AI and automation have significantly boosted operational productivity, with home project managers handling 10 renovations per person (up from 3) and underwriting capacity increasing to over 50 per person (up from 20). The company is on track to achieve adjusted net income profitability on a 12-month go-forward basis by the end of 2026, with a clear path to break even even if the company freezes current operations. Mortgage product launch is showing strong early traction, with over half of scheduled closes in Colorado and nearly 1 in 5 in Texas using Opendoor Home Loans, and the product is expected to expand to 35-40 states by year-end. Opendoor Technologies Inc (NASDAQ:OPEN) still faces seasonality headwinds, with Q3 contribution margin expected to decline to 4-4.5% from Q2's 5.8%, though the decline is expected to be less than historical averages. The company has a drag on contribution margin from approximately 100 legacy homes from the 'OpenDoor 1.0' era, which will be sold mostly in Q3, negatively impacting margins. Adjusted EBITDA is not yet profitable, and the company expects a modest increase in adjusted expenses in Q3 due to holding costs from growing inventory and a small increase in marketing. The mortgage product is still in early stages, with licensing progressing slower than desired, and the company has not yet rolled out FHA, VA, or adjustable-rate products, limiting its market reach. The company's path to profitability relies on assumptions that may not hold, such as maintaining current volumes and margins, and any macro deterioration or operational missteps could derail the timeline. Fixed operating expenses increased to $35 million in Q2, and the company expects these to continue growing modestly as it invests in AI and engineering, which could pressure near-term profitability. Warning! GuruFocus has detected 3 Warning Signs with OPEN. Is OPEN fairly valued? Test your thesis with our free DCF calculator. Q: Are we still on track for profitability at the end of this year?A: Yes. CEO Caz stated unequivocally that the company is on track to become adjusted net income (ANI) profitable on a 12-month go-forward basis by the end of 2026. He reiterated that the company has consistently met its stated goals each quarter and provided the underlying math to back up this commitment. Q: When long-term shareholders look back 2 years from now, what will be the 1 or 2 changes inside the business you hope they will point to and say that's when OpenDoor truly became a different company?A: CEO Caz responded that the key change is that OpenDoor stopped being a real estate company with a website and became a product company that happens to be in real estate. He explained that previously, decisions were filtered through spreadsheets, but now the primary goal is to build an excellent product that eliminates friction for users, with economics being a downstream result of that focus. Q: You have described letting sellers transact directly on OpenDoor without OpenDoor owning the home. When could this launch and what revenue contribution or profit per transaction are achievable?A: CEO Caz declined to provide specific financial guidance on unlaunched products but outlined a three-step progression (1P, 2P, 3P). The company is currently on step 2 (Now and More), and will not move to the 3P marketplace model until it is excellent at step 2. He drew parallels to Amazon's evolution, emphasizing that mastering the first two steps makes the later steps easier. Q: Could you update us on the mortgage product and how many states OpenDoor Mortgage is in?A: CEO Caz stated that the mortgage licensing process is a state-by-state slog, but the company is moving faster than expected and expects to be in 35 to 40 states by the end of the year. In states where it is live, results are excellent, with over half of scheduled closes in Colorado financed through OpenDoor Home Loans and nearly 1 in 5 in Texas just six weeks after launch. He attributes this success to a structurally lower cost model that passes savings to buyers. Q: What could keep OpenDoor below 2% home sales, and what must change to exceed 6%?A: CEO Caz stated that he doesn't see 2% as a natural ceiling, as seller adoption is not the constraint and the buy box covers over 90% of the lower 48. To exceed 6%, two things need to happen: the 3P marketplace needs to be working to remove balance sheet constraints, and more of the transaction (like insurance) needs to happen inside OpenDoor to eliminate friction. Q: Do you have any early thoughts on 2027?A: CEO Caz expressed being incredibly bullish on 2027, though he declined to give formal guidance. He stated that the company is doing the difficult work now to set up for an excellent 2027 and believes they will surprise people with how much of the US housing market flows through OpenDoor next year. Q: How is AI specifically changing your ability to scale acquisition volume and improve margins, and what changes are you expecting now that a Chief AI Officer has joined the team?A: CFO Christy discussed the significant leverage from AI, noting that Home Project Managers now handle 10 renovations per person per month, up from 3, and that in-person home visits have dropped from 80% of homes to below 20%. The new Chief AI Officer is focused on making AI spend efficient, consolidating tooling, and ensuring the right models are used for the right tasks to drive operating leverage. Q: Could you talk about your progress with adjacent monetization? Can you grade your progress on product attach broadly?A: CEO Caz provided grades for adjacent products: Mortgage gets a "solid B-" for excellent execution but with work still to do; Title and Escrow gets a "B+" as the best product in the US but not yet handling the majority of transactions; and Insurance gets an "Incomplete" as the company paused that effort to focus on mortgages. Q: Can you talk about the investment intensity and expectations around the cost of OpenDoor as the team appears to still be being built out?A: CFO Christy explained that fixed operating expenses increased modestly from $33 million to $35 million, driven by investments in talent, engineering, and AI. She framed this as spending small controlled amounts now to build scalable software instead of spending larger amounts later on headcount. The expectation is that fixed OpEx will grow modestly in dollar terms, but variable costs will grow slower than volumes. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Technology real estate company Opendoor (NASDAQ:OPEN) fell short of the market’s revenue expectations in Q2 CY2026, with sales falling 43.7% year on year to $883 million. Its GAAP loss of $0.17 per share was significantly below analysts’ consensus estimates. Is now the time to buy Opendoor? Find out in our full research report. Revenue: $883 million vs analyst estimates of $899.9 million (43.7% year-on-year decline, 1.9% miss) EPS (GAAP): -$0.17 vs analyst estimates of -$0.07 (significant miss) Adjusted EBITDA: -$4 million (-0.5% margin, 117% year-on-year decline) Operating Margin: -16.3%, down from -0.8% in the same quarter last year Free Cash Flow was -$723 million, down from $821 million in the same quarter last year Homes Sold: down 1,960 year on year Market Capitalization: $3.80 billion Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes. A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, Opendoor’s sales grew at a weak 5.2% compounded annual growth rate over the last five years. This fell short of our benchmark for the consumer discretionary sector and is a tough starting point for our analysis. We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Opendoor’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 15.4% annually. We can dig further into the company’s revenue dynamics by analyzing its number of homes sold, which reached 2,339 in the latest quarter. Over the last two years, Opendoor’s homes sold averaged 17% year-on-year declines. Because this number is lower than its revenue growth during the same period, we can see the company’s monetization has risen. This quarter, Opendoor missed Wall Street’s estimates and reported a rather uninspiring 43.7% year-on-year revenue decline, generating $883 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 76.5% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will catalyze better top-line performance. ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable. These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE. Opendoor’s operating margin has been trending down over the last 12 months and averaged negative 8.9% over the last two years. Unprofitable consumer discretionary companies with falling margins deserve extra scrutiny because they’re spending loads of money to stay relevant, an unsustainable practice. In Q2, Opendoor generated a negative 16.3% operating margin. The company’s consistent lack of profits raises a flag. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable. Although Opendoor’s full-year earnings are still negative, it reduced its losses and improved its EPS by 2.2% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability. In Q2, Opendoor reported EPS of negative $0.17, down from negative $0.04 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects Opendoor to improve its earnings losses. Analysts forecast its full-year EPS will improve from negative $1.73 to negative $0.31. We struggled to find many positives in these results. Its EBITDA missed and its EPS fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 7.7% to $3.85 immediately after reporting. The latest quarter from Opendoor’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.

Technology real estate company Opendoor (NASDAQ:OPEN) will be reporting results this Tuesday after market hours. Here’s what you need to know. Opendoor beat analysts’ revenue expectations last quarter, reporting revenues of $720 million, down 37.6% year on year. It was an exceptional quarter for the company, with EPS in line with analysts’ estimates and a decent beat of analysts’ EBITDA estimates. It reported 1,921 homes sold, down 34.8% year on year. Is Opendoor a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Opendoor’s revenue to decline 42.6% year on year, a reversal from the 3.7% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Opendoor has a history of exceeding Wall Street’s expectations. Looking at Opendoor’s peers in the consumer discretionary - real estate services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. JLL delivered year-on-year revenue growth of 10.8%, beating analysts’ expectations by 1.5%, and CBRE reported revenues up 15.2%, in line with consensus estimates. JLL traded up 4.4% following the results while CBRE was also up 1.6%. Read our full analysis of JLL’s results here and CBRE’s results here. Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the consumer discretionary - real estate services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.4% on average over the last month. Opendoor is down 26.7% during the same time and is heading into earnings with an average analyst price target of $4.95 (compared to the current share price of $3.73). WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Opendoor Technologies (OPEN) is back in the spotlight after its pending inclusion in the Russell 3000 Index on June 26, a move that coincides with mixed Q1 results and rising options activity in the stock. See our latest analysis for Opendoor Technologies. Despite the planned Russell 3000 inclusion and progress on its AI driven turnaround, Opendoor’s share price has been under pressure recently, with the stock down 27.18% year to date but still showing a very large 1 year total shareholder return. Momentum looks to be cooling in the short term after an exceptional run. If this kind of volatility has your attention, it can be helpful to widen the lens and see what else is out there by screening for 21 top founder-led companies With the stock under pressure year to date, a very large 1 year return on the table, mixed analyst views and index inclusion ahead, you have to ask yourself: is there real value left here, or is the market already pricing in future growth? Based on the most followed narrative, Opendoor’s fair value of $4.33 sits just below the last close at $4.42, which sets up a fairly tight valuation debate. Read the complete narrative. Want to see what happens when faster revenue growth meets changing margin assumptions and a higher future earnings multiple, all inside one valuation playbook? Result: Fair Value of $4.33 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there is still the risk that softer housing demand and Opendoor’s inventory exposure, including homes sitting on the market for over 120 days, could pressure margins and sentiment. Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page. The community narrative pins fair value at $4.33 per share, slightly below the last close at $4.42. Yet on a simple P/S basis, Opendoor trades at 1.1x, below the US Real Estate average of 2.6x and just under peers at 1.2x, but above its fair ratio of 0.7x. This suggests the market could still move lower on this metric. So is Opendoor cheap versus peers, or just expensive versus its own fundamentals? See what the numbers say about this price — find out in our valuation breakdown. With sentiment split and the story clearly not one sided, it makes sense to move fast, review the data for yourself, and weigh the 1 key reward and 2 important warning signs If Opendoor has sharpened your focus, do not stop here. Broaden your watchlist now so you are not left reacting after the next move. Target resilient companies that prioritise stability by scanning 64 resilient stocks with low risk scores with balance sheets and risk profiles that may better match your comfort level. Spot potential mispricings early by checking screener containing 22 high quality undiscovered gems that combine solid fundamentals with lower market attention. Strengthen your income watchlist by reviewing 9 dividend fortresses that offer higher yields alongside robust business profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OPEN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Opendoor (NASDAQ:OPEN) and the best and worst performers in the consumer discretionary - real estate services industry. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Real estate services companies provide brokerage, property management, appraisal, and advisory services, earning transaction-based commissions and recurring management fees. Tailwinds include long-term housing demand driven by demographic growth, technology platforms that expand market access, and commercial real estate complexity that sustains advisory needs. Headwinds are pronounced: rising interest rates directly suppress transaction volumes by reducing housing affordability and commercial deal activity. Commission-rate compression, driven by discount brokerages and regulatory changes, erodes per-transaction revenue. The industry is highly cyclical, with revenue swings amplified by leverage. PropTech (property technology) disruptors threaten traditional intermediary models. The 14 consumer discretionary - real estate services stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 2.3% above. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.3% since the latest earnings results. Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes. Opendoor reported revenues of $720 million, down 37.6% year on year. This print exceeded analysts’ expectations by 8.3%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ revenue estimates and EPS in line with analysts’ estimates. “As of April 1st, Opendoor is adjusted EBITDA profitable, on a 12-month go-forward basis. The October cohort was just the start. A full quarter later, we’ve gone from a claim to a track record. Our 4Q25 and January 2026 cash acquisition cohorts have the best combination of margin, margin stability, and resale velocity of any corresponding cohort in company history (excluding the COVID-era cohorts)1. And, each of our October, November, December, and January cohorts are selling faster than any corresponding cohort since COVID. Acquisition contracts are up 2x quarter-over-quarter, back to levels we haven’t seen since 2022. Aged inventory has been cut from half the book to one-tenth while scaling volume. As a result, resale contribution margin is at its highest level in nearly two years,” said Kaz Nejatian, CEO of Opendoor. The stock is down 19.5% since reporting and currently trades at $4.28. Is now the time to buy Opendoor? Access our full analysis of the earnings results here, it’s free. Founded in 1971, Marcus & Millichap (NYSE:MMI) specializes in commercial real estate investment sales, financing, research, and advisory services. Marcus & Millichap reported revenues of $171.5 million, up 18.2% year on year, outperforming analysts’ expectations by 5.7%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $29.09. Is now the time to buy Marcus & Millichap? Access our full analysis of the earnings results here, it’s free. Short for Real Estate Maximums, RE/MAX (NYSE:RMAX) operates a real estate franchise network spanning over 100 countries and territories. RE/MAX reported revenues of $70.23 million, down 5.7% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates. As expected, the stock is down 16.9% since the results and currently trades at $9.20. Read our full analysis of RE/MAX’s results here. Founded in 1929, Newmark (NASDAQ:NMRK) provides commercial real estate services, including leasing advisory, global corporate services, investment sales and capital markets, property and facilities management, valuation and advisory, and consulting. Newmark reported revenues of $846.5 million, up 27.2% year on year. This print surpassed analysts’ expectations by 13.2%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations. Newmark pulled off the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is down 9.3% since reporting and currently trades at $14.30. Read our full, actionable report on Newmark here, it’s free. Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE:HHH) develops, owns, and manages master-planned communities and commercial properties across the United States. Howard Hughes Holdings reported revenues of $235.9 million, up 18.4% year on year. This result missed analysts’ expectations by 0.5%. Aside from that, it was a very strong quarter as it logged a beat of analysts’ EPS estimates. The stock is up 1.2% since reporting and currently trades at $64.30. Read our full, actionable report on Howard Hughes Holdings here, it’s free. Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

Opendoor's first quarter saw revenue come in above Wall Street’s consensus, but the company experienced a significant year-over-year decline in sales and a wider operating loss. Management attributed the results to aggressive efforts under its “Opendoor 2.0” strategy, which focused on accelerating home resale velocity, improving inventory health, and executing cost discipline. CEO Kasra Nejatian acknowledged the challenging housing market environment, but emphasized that recent product and process changes have led to more stable margins and faster inventory turnover. Is now the time to buy OPEN? Find out in our full research report (it’s free). Revenue: $720 million vs analyst estimates of $664.5 million (37.6% year-on-year decline, 8.3% beat) Adjusted EPS: -$0.05 vs analyst estimates of -$0.06 (in line) Adjusted EBITDA: -$31 million (-4.3% margin, 3.3% year-on-year decline) Operating Margin: -22.1%, down from -4.9% in the same quarter last year Homes Sold: down 1,025 year on year Market Capitalization: $4.39 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Mike Alfred (Alpine Fox LP): Asked about the long-term impact of AI on Opendoor’s strategy. CEO Kasra Nejatian explained that AI is being used to rebuild processes from the ground up, not just automate existing workflows, and emphasized Opendoor’s structural advantage in managing real estate complexity. Heejun C. (Say Technology): Questioned the realism of Opendoor’s profitability target given persistent high interest rates. CFO Christy Schwartz reaffirmed the goal for breakeven adjusted net income by year-end, citing improved acquisition volumes and margins as supporting factors. Arun Jacob V. (Say Technology): Requested specifics on what could prevent reaching positive EBITDA. Schwartz pointed to the importance of maintaining trajectory in acquisition contracts, inventory health, and contribution margins, noting these as key indicators to watch. Andrew L. (Say Technology): Sought reassurance on underwriting quality and capital needs amid accelerated acquisitions. Schwartz explained that selectivity and AI-driven underwriting have improved cohort performance, while a strong cash position offsets the need for additional equity. Dae Lee (JPMorgan): Asked which new initiative most improved seller conversion and volume. Nejatian pointed to the shift toward customer-driven offer customization and digital experiences, as well as operational changes that enable more transactions without a proportional increase in operating expenses. Our analysts will monitor (1) whether Opendoor sustains improvements in contribution margin and resale velocity as acquisition volumes rise, (2) the adoption and scaling of AI-powered tools across underwriting and operations, and (3) early performance of new products like Opendoor Mortgage and “Cash Now, More Later.” Execution on these fronts will be critical for achieving the company’s profitability milestones. Opendoor currently trades at $4.59, down from $5.32 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren't just high-quality businesses. Something is happening with them right now. Elite fundamentals meeting near-term momentum - both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week's Strong Momentum stocks - FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET Chief Executive Officer — Kasra Nejatian Chief Financial Officer — Christy Schwartz Head of Investor Relations — Michael Judd Need a quote from a Motley Fool analyst? Email [email protected] Michael Judd: [Presentation] Hi, everyone. Welcome to Opendoor's Q1 2026 Financial Open House Earnings Live Stream. I'm Michael Judd, Opendoor's Head of Investor Relations. A few quick housekeeping guidance before we get started. Like all things Opendoor, we're going to do this faster. Details of our results and additional management commentary are available in our earnings release, which can be found at investor.opendoor.com. The following discussion contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are statements that could be deemed forward-looking, including, but not limited to, statements regarding Opendoor's financial condition, anticipated financial performance, business strategy and plans, market opportunity and expansion and management objectives for future operations. These statements are neither promises nor guarantees, and undue reliance should not be placed on them. Such forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Additional information that could cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Opendoor's most recent annual report on Form 10-K for the year ended December 31, 2025, as updated by our quarterly report on Form 10-Q for the quarter ended March 31, 2026, and other filings with the SEC. Any forward-looking statements made on this webcast, including responses to your questions, are based on management's reasonable current expectations and assumptions as of today, and Opendoor assumes no obligation to update or revise them, whether as a result of new information, future events or otherwise, except as required by law. The following discussion contains references to certain non-GAAP financial measures. The company believes these non-GAAP financial measures are useful to investors as supplemental operational measurements to evaluate the company's financial performance. For a reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP metric, please see our website at investor.opendoor.com. And with that, let's get into the open house with Kaz and Christy. Kasra Nejatian: Good afternoon, everyone. I opened the Q4 financial open house by showing you a clip from the Q3 financial open house. I did this because I think among the most important things you can do to build trust is to just do what you said you would do. Don't promise and moon and deliver dust. Just do what you said you would do. Our last open house might as well have been called the look at the October cohort open house. With that in mind, let's once again take you back to our last financial open house. That the October cohort is going so well is not a plan, it's a proof point. The product launches I'm going to talk to you about aren't promises of things that might work. They're the explanation for why October happened and why it's repeatable. Now look, because we're committed to transparency, let me get ahead of a couple of things. October was not our largest cohort by volume. But it was about double the size of what we were doing just a few months ago. We're not getting lucky on a few homes in a friendly market. And given how the past few weeks have gone, I believe we're on track to significantly increase our acquisition size as we said we would do. What October shows is that the structural changes we made under Opendoor 2.0 are working. And then we're compounding those learnings into every single cohort going. During that call, I told you that Opendoor 20 cohorts would perform fundamentally differently than Opendoor 1.0. And back then, some folks said, October was a fluke or that we'd fall apart when the markets got harder or the sample set got larger. And one of my favorite investors said, look, 1 month does not make a trend. That was fair. Fair enough. So here are the facts. We now have a few more months of data, and we should compare the first full 4 months of Opendoor 2.0 against the last couple of years of Opendoor 1.0. Don't pay attention to me. Look at the chart. These are the cohort arrival curves. They show what happens when a group of homes margins on the y-axis as that group of homes sells on the X-axis. Every one of those purple lines is an old Opendoor cohort. They all do the same thing. They bleed margin as we sell through. Now look at the blue curves. Margin doesn't drop the way it used to. This is a step function change in how this company operates. 4 consecutive months tell us something October alone could not. This isn't an accident. This isn't small sample luck. Mortgage rates are still far too high and the listings are at all-time highs. But in a housing market that was supposed to break us, our cohorts are delivering. October wasn't a fluke. It was just the first month we could see it. We've now sold through over 80% of the October cohort and our trends have continued. Margins for our core cash products have come down only 90 basis points from where they were at 10% sold to over 80% sold. Last year, that same journey cost us over 260 basis points. So we've seen about a 3x improvement. And then November, December, January, they all showed the same pattern 4 months in a row. In fact, Q4 of '25 and January '26 cohorts have the best combination, the best combination of margin, margin stability and resale velocity of any cohort in Opendoor history, obviously, excluding the COVID era. Our cohort curves or the slope of our margins as homes sell-through are basically flat. And we're doing this at great speed. Every single cohort from October through January is selling faster than any corresponding cohort since COVID. And we're meaningfully scaling growth. In Q1, we entered into contract in over 5,000 homes. That's 2x bigger than Q4 and 3x bigger than Q3. In fact, when it comes to contracts, this was our single best quarter since 2022. Cohorts are performing better, resale velocity is improving, and we're scaling growth. But how can we do this? Well, let's talk about it for a second. Two quarters ago, I laid out the blueprint and told you exactly what we were going to do. Underneath this all, there was one simple goal, make Opendoor faster. Last quarter, we graded ourselves and we're green across the board, and I promise we will do this every single quarter. So let's do that. Step one, profitability, breakeven by the end of 2026. We're on track. We'll be ANI positive on a forward 12-month basis by the end of the year. And as of April 1, Opendoor is adjusted EBITDA profitable on a forward 12-month basis. Step two, unit economics that make the model work, positive contribution margin while increasing velocity. We're on track. Our contribution margin has increased every single month since we bottomed out in September and October, November, December and January cohorts. They're all selling faster than any corresponding cohort since COVID. We're improving margins, speeding up clearance, and we're doing all of it in a worst market. Acquisitions are growing. In Q1, we entered into contracts in over 5,000 homes, 2x what we did in Q4, 3x Q3. And our Q1 DTC acquisition contracts are up more than 4x compared to Q3 '25. This was our single best contract quarter since 2022. Step 4, we're making really good progress on our capital-light products for sellers and transacting directly with buyers. Opendoor Checkout has now helped us sell homes in a bunch of states and more than 1/3 of our acquisition contracts in Q1 were cash now more later. This time last year, that number was exactly 0. That's our scoreboard. We're green across the board. This quarter, the scaffolding came down and what's underneath is a company that finally knows exactly what it is and how it wins. For a long time, the core assumption of Opendoor was that we had to be better at predicting the future than the rest of the world. We operated like a front desk. We looked at the macro and made directional bets based on where we thought the prices were going to be in 3, 6, 9 months. And then we pushed billions of dollars on to the table. The issue was never the people and not the model. The problem was a wrong problem to solve. Even if our models had been perfect, they were still pointed in the wrong direction. Everything flowed from a single question, where are home prices going? That one guess drove everything. It set the spread, which set what we bought and determine whether or not we made money. And when we got the answer wrong, we blamed the market every single time. Macro became our excuse for everything. Look, when predicting the future is your North Star, a reflex in the down market is always the thing, widen spreads, slow down, pull back, wait for the market to recover. Every defensive move said the thing that was actually killing us. We were playing prevent defense when we were down by touch down. So of course, we were losing. We widened the spread to protect ourselves, but in doing so, we changed their funnel. We changed the thing that was making the company work. We got worse homes. Worse homes meant worse margins. Worse margins went back into the model. The system got more conservative and spreads widened even more. We didn't just have risk that we could not calculate. We actually built a machine that amplify it. Every move made everything worse. That was our fatal flaw. In a business where time is risk, the old model got us to slow way down. And once that reflex exists, every department in the company, product, operations, finance, everyone starts running the same defensive operating system. The default everywhere was slow down just to protect ourselves. Look, I'm a nerd's nerd. I think models are really cool, but they're incredibly worthless when you had the wrong strategy. So what we did wasn't just improve the pricing model. We changed the question that it was meant to answer. A year ago, the most important input into every decision was our home price appreciation forecast. Today, it's how fast we can sell the home we're looking to buy. Market makers do not win by being right about direction. They win by controlling their exposure to being wrong. They win by being right about time. When a prop that gets scared, it pulls right back. That's how the spiral starts. When a market maker sees risk, it does the exact opposite. It speeds up and prices to clear. The faster you move, the less any single home can hurt you. And velocity is how we know our pricing is right. A home that fits doesn't give us any signal. It just increases risk. Opendoor 1.0 was a Kobayashi Maru. It wasn't a game we should have played. Without fundamentally changing it, we will just totally kill the company. You don't beat that game by getting better at simulation. You beat it by changing the program. So we're now running on a velocity OS. The difference is totally structural. We have rebuilt our engine around a totally fast team of high-frequency thinkers. Our signal intelligence officers, hedge fund quants and they're all maniacally focused on data loops. They have a mandate, ship a change every single week, optimized for both margin and velocity. And as our models get better and they're getting better every single week, the whole machine moves faster. The whole company runs faster. We now run on a weekly cadence across the company. Products ship every single week. We don't need to be perfect in order for this business to work. We just need to be faster with hundreds of acquisitions a week, we see pricing signals, renovation costs and clearance patterns faster than anyone else in this market. Every home keeps to something. And every single day, we shave hold times, our capital turns go up and our returns go up. Speed. Speed pays for everything. In a bad market or a great one, the variable thing that actually matters is time. So when you ask what has made the change? What makes this whole thing work? It's one word. Faster. I wear a T-shirt at every financial open house that says one thing, Faster. You can see it. I'm wearing one right now. Most of you think it's just a personality quote, right? A founder nerd thing, a costume of a wartime CEO. It's really not. Look, we used to be in a business that lived or died and whether we got the future right. Now we're in a business that lives or die and whether we move fast. Faster isn't just our competitive advantage. It's an absolute moral imperative. Let me just say this again, so you don't think I'm being subtle about it. Faster is not just our competitive advantage. It's our whole reason for being here. It's our moral imperative. Every day, someone is stuck and cannot move is a day in their life that they cannot move on. They're on hold. If we're in the business of helping people move, then days matter. It's a job offer they haven't accepted, a planned retirement put on hold and finally not started. The traditional home sale process is more than just inconvenient. It holds these people back. 40 million homeowners in this country want to move in the next 12 months, but only 1 in 5 think they can actually do it, not because moving is too expensive, but because everything about it is just too uncertain. There's a simple test for any system. Would you design it this way if your family had to live in it? The legacy real estate system fails to test. It's our job to fix this. Every product decision Opendoor goes through does goes to one single filter. We only care about one thing. Are we returning time to people. Last week, across all sellers, Opendoor gave back over 100 years of time, over 100 years of time, over 500 families said yes to an Opendoor offer and reach certainty about 90 days sooner than they would have in a traditional process. You do the math. In just 1 week, we got rid of a century of human waiting, time that got returned to families who got to move on. Faster is a moral imperative. It is a good in and of itself, and that is what this company is for. Every product launch ultimately serves one question. How do we move faster for sellers, for buyers, for Opendoor for everyone? So let me run through some product launches. This quarter, we expanded cash down more later coverage. Every week, hundreds of families who would have heard, sorry, we can't help you are now getting the real offers. We totally rebuilt the foundations of our buyer apps. We acquired Doma's Escrow division. Noah, our AI underwriter, prices normal homes in Phoenix now. We rebuilt every message a buyer gets from us, 6 different systems became just one conversation. We rebuilt our offer page, giving customers the type of information they would have gotten from an expert who was at their kitchen table. We also built a portable assessment scheduling. You can now get your home assessment done on your own terms. More than half of our assessments are now seller-led, 6,000 in March alone. We migrated our component library to an AI-native front end. While we were in there, we killed our legacy cake service, a transition that had failed 3 times in 4 years, finished in 6 weeks. The platform is what makes everything else faster. Talk to any Opendoor engineer, and they'll tell you this is a really big deal. We built an AI audit tool that automatically reconciles inspection scopes with actual repair decisions, giving our field teams real actionable feedback to improve operating compliance and cost discipline. At title intake, it used to take us up to 5 hours. It now takes 15 minutes. We launched Opendoor Mortgage in Colorado. One of our marketing managers replaced our $0.5 million life cycle legacy e-mail system with one Claude skill. A field manager in our Southeast division runs 5 states on Claude. Afinance team turned 20 hours of SOX deliverables into 1-minute query. None of these people, by the way, were engineers. We also tripled our Cash Now, More Later product. Our voice bots dropped seller contract time from 30 minutes to 5. We replaced 72 manual exports a month with 1 pipeline. We built a new listing operated consoles in 8 days, we merged 8 different HR systems into one and end process. We built dozens of point solutions. Now that's not the full list. It's just what I had time for before they play to walk me off stage music. As you can tell, we've changed a lot, but I also want to tell you what we haven't figured out. Look, I'm a Leafs spin. I know what it feels like to we promise lots of things and get absolutely none of them. I know what it feels like to watch the same group of people over and over again, give you false hope and give you nothing. I thought about this more than I probably should, but I've decided that the promise is not the same thing as a proof. You do not get credit for what should have happened. You only get credit what actually did. I know what it feels like to have momentum in March and tears in May, which is why this t-shirt says faster and not done. Faster is a setting. It's not a destination. We don't get to celebrate signals. Every quarter is just another shift for us. We're not done. We're not even close. Mortgage is live, and the early data is honestly going a lot better than I thought it would go. We're getting really good attach rates and our customers love it. But look, it's early. We don't fully know how the product is going to work across different market conditions in different home price tiers. We have a thesis. It's working really well, but we haven't proven it at scale. Cash Now, More Later, it's growing really fast. It's over 1/3 of our growing pie. And that's just really remarkable for a product that didn't exist a year ago. And that was totally reworked just 3 months ago. We're iterating how it works. We're fine-tuning it, trying to get the balance right between what the seller gets and what Opendoor keeps. But let me be honest with you. Every product that Opendoor ships has to earn its place in our portfolio. Cash Now, More Later is earning it, but we're not done changing it. And like we said earlier, the housing market, look, it just remains what it is. We believe the model we have built on faster works across macro cycles. We're no longer dependent on the macro. We control our own destiny. October, November, December, January cohorts, they were all bought during the most aggressive expansion in our history in a market that I don't think anyone would describe as favorable, and this is the best evidence we have. But that's just what it is. It's evidence. It's not proof. Proof will take more time, more reps, more shifts, more aggression, more products shipped faster. And we've said this before, and you'll always hear us saying this. We're not asking you to take our word for it. We're asking you to watch and to hold us accountable. Christy is going to walk you through the numbers in a minute. But before she does, I want to close with this. I've been asked a lot what Opendoor is. We changed our LinkedIn profile from real estate to software, but software is too generic. Look, Opendoor is on a mission. Our job is to get people who are stuck moving. We're a machine that helps America move. When I joined Opendoor, I did it because the home ownership matters. It is the thing. It is the single thing that leads to better families, better neighborhoods. When people buy a home they love, they're buying a share in this country. We don't buy homes at Opendoor to hold them. We buy them. We buy them so we can get them into a next family faster, with less friction at a better price. And every family we help move is a family that is clear down roots. It's a neighborhood, we're getting better. It's children that get to grow up in a home that their parents love. Faster is what this company was built to do. This T-shirt, that's just a reminder. The Opendoor machine is now running and every day it runs, every single day it runs, friction disappears and people move. We do not need a better market. We just need a better machine. Last week, we gave back over 100 years. That's 100 years of human pain just gone. That's not corporate dragon. That's just families moving and building better lives. Please track it. Please hold us accountable. Christy? Christy Schwartz: Thank you, Kaz. I'm not wearing a T-shirt, but I promise I'll match the pace. Three things to know about Q1 before we get into the details. One, we reduced aged inventory from 51% to 10% in 2 quarters. The book is the freshest it's been in nearly 4 years. Two, margins bottomed out in September and have improved every month for 6 months straight. Q1 closed at 4.4%, up 3.4 points quarter-over-quarter, and we expect the upward trend to continue into next quarter. Three, acquisitions are up 45% from Q4, and Q1 was our strongest quarter for signed contracts since Q2 2022. And the headline behind those 3, starting in Q2 2026, we expect to be adjusted EBITDA profitable on a 12-month go-forward basis. The machine is working. Let's get into it. As a reminder, we are executing against 3 management objectives on our path to profitability. The table in our earnings release shows our progress on each. Let me walk through the highlights. First, scale acquisitions. We purchased 2,474 homes in Q1, up 45% from Q4. This is the second consecutive quarter of meaningful growth. And signed acquisition contracts, our leading indicator, tell an even stronger story. March was our highest single month for signed contracts since June 2022, and Q1 was our highest quarter since Q2 2022. An acquisition contract will typically close about a month later. Q1's 2,474 purchases are mostly from late Q4, early Q1 contracts. Late Q1 contracts will close primarily in Q2. Also, we want to be clear, we don't close on every home we go into contract on. Under Opendoor 2.0, we're deliberate about which contracts we take all the way to purchase. So the funnel narrows between contract and close. So more contracts mean more opportunities to be selective and the trajectory matters. In a short period of time, we've gone from our lowest contract volume since COVID to our highest since 2022. This is the tempo required to achieve the goals we set for ourselves, and we're building the volume and the discipline at the same time. You can continue to track our weekly progress on accountable.opendoor.com. Volume only counts if the quality holds, and our second management objective is the scorecard for whether we're delivering the right kind of growth. The second, improve unit economics and resale velocity. This is where the work really shows up, and there are 3 data points I want to highlight. One, resale contribution margin has improved every month since September 2025, closing Q1 at 4.4%, up 3.4 percentage points quarter-over-quarter. Two, our Q4 2025 and January 2026 cash acquisition cohorts have the best combination of margin, margin stability and resale velocity of any corresponding cohort in company history, excluding the COVID era. And three, the percentage of homes on the market for more than 120 days fell to 10%, down from 33% at year-end and 51% at the end of Q3, a 41 percentage point improvement in just 2 quarters. Let me stay at this point for a moment. Two quarters ago, more than half of our homes had been sitting on the market for over 120 days. At the end of Q1, that number was 10%. That is the lowest it's been since Q2 2022. To put it in perspective, the broader market was at 23% 2 quarters ago and rose to 33% at the end of Q1. We are now carrying a book that is materially fresher and healthier than the market. Inventory health is both a leading indicator of forward margin and evidence that our approach is working. A faster-moving book means lower holding costs, less market exposure, better resale outcomes and more efficient use of capital, and that's exactly what's showing up in our margins. This didn't happen because the market got friendlier. It happened because of tailored underwriting, disciplined close to listing workflows and resale systems designed to move homes quickly while protecting unit economics. Third, build operating leverage. Fixed operating expenses were $33 million in Q1, down $2 million quarter-over-quarter and down $6 million year-over-year. Our trailing 12-month operations expense as a percentage of trailing 12-month revenue held steady quarter-over-quarter at 1.3%. We are holding the fixed cost base flat while simultaneously investing in the AI and infrastructure that powers our product, and it's worth pausing here for a minute. We're going all in on AI, and we're doing it responsibly. There's a lot of noise right now about companies blowing their 2026 budgets on AI before the second quarter. That's not us. We're focused on results, not token leaderboards. We have an internal Slack channel called Default to AI, where teams celebrate measurable impact. Some highlights in addition to what Kaz shared earlier: an AI-powered repair negotiation tool cut our buyer fall-through rate by over double digits; field managers are using AI scoping feedback, helping to reduce pre-list renovation spend by up to 10% to 20% per home in pilot markets; and a ticket triage automation, redeployed 3 full-time employees from classification to resolution. What's notable is that most of these tools were built by operators, not engineers using the AI infrastructure we've invested in. We're cutting waste and reallocating into capabilities that move the business. Our flat fixed operating expense is the output of that discipline, not the absence of investment. 3 objectives, 3 quarters of consistent progress. The plan is working. Turning to the balance sheet. We ended the quarter with $999 million in unrestricted cash, our highest cash balance in years. That's a product of 2 things: the strength of our parent level capital position following the work we did last fall and the health of our inventory book. We held 3,420 homes in inventory at quarter end, representing $1.1 billion in net inventory. Our nonrecourse asset-backed borrowing capacity remains robust at $7.1 billion with $1.5 billion committed. Between liquidity, facility capacity and the quality of what we're financing under those facilities, we have meaningful flexibility to execute against our plans. Now let me give you the guidepost for Q2. Acquisitions. You can continue to track our acquisition contracts on accountable.opendoor.com. We've updated our contract road map for the remainder of the year. The ranges reflect our current outlook, inclusive of typical seasonality, and we'll continue to update them each quarter as we learn more. Revenue. Our Q1 increase in home acquisitions will start to flow through to resales, leading to expected revenue growth of approximately 25% quarter-over-quarter. Contribution margin. Our contribution margin bottomed out in September and has been improving every single month since then. We expect the contribution margin for Q2 2026 to fall in the middle of our 5% to 7% goal we shared in the first Opendoor 2.0 financial open house. Adjusted EBITDA. We expect Q2 adjusted EBITDA to be breakeven, plus or minus a few million dollars, and we see Q2 as an inflection point. We expect to be adjusted EBITDA profitable on a 12-month go-forward basis starting in Q2. In closing, last quarter, I said you can't build a great business in a spreadsheet. You build it by shipping product, operating with discipline and learning from the market. Q1 is what that looks like when the machine starts to work. Acquisitions, margin, resale velocity, inventory health and cost all moved the right way at the same time. That's not a lucky coincidence. That's a system that's working. Two quarters ago, we laid out our plan. Every quarter since we graded ourselves against it and delivered. We have a lot left to prove. We intend to keep doing exactly that. With that, Michael, I'll turn it over to you for questions. Michael Judd: Great. Thanks, Christy. Our first question comes to us via video submission from Mike Alfred. Mike Alfred: It's Mike Alfred, Founder and Managing Partner of Alpine Fox LP as well as Board Director in IREN and Bakkt. Great job on the execution side. I really like the way the business is integrating AI into everything you're doing. My question is about the longer-term implications of AI. Do you believe when you look at the strategic direction of the company that we are well prepared for all the things that AI is likely to change about the way the real estate market operates in the coming years? Kasra Nejatian: That's a great question. Look, I think the answer to this is like in a bunch of layers. And I can't think about the layers, so let me just go through them. Layer 1 is like the earnings call answer. AI is important. We're leaning right in. We're spreading across the entire business. If you kind of hear that from every corporate CEO. I mean it's true, but it tells you like nothing actually useful. Layer 2 is actually important. That's like the software leverage story. Like the original SaaS era, the insight was that you could take a CRUD database, wrap business logic around and some workflow around it. And then you'd find that people could do a lot more, right? Software would get cheaper, people could do a lot more because you could encode the rules and the processes and decision-making into software. And the leverage was just insane. AI extends that by quite a bit because you're now encoding judgment on top of rules and the leverage becomes really high. Like that's real and it's important. And we're capturing a lot of this. But that's just the story of software broadly. It doesn't say anything specific about Opendoor. We just happen to be honestly just really good at this. Layer 3 is actually fundamentally more interesting. It's like the automation versus the collaboration split. AI as collaboration software is very misunderstood. Let me talk about that for a second. Look, our goal isn't to use AI to cut 15% of our expenses by doing the same things we're doing just cheaper, right? Like that's the automation applied to cost. And the goal isn't like a black box replaces a human process end-to-end. That's just not what we doing. Like what we want to do, given everything AI can do is to rebuild our processes from scratch, from a blank piece of paper so that we can use AI to have a fundamentally different process. Layer 4 is actually our complexity as a structural advantage. This one is important to understand, and this is why we're not afraid of AI is the way like some software incumbents are. Real estate is atoms and risk and not just bits, it's also some bits. The underlying transaction involves a level of complexity and condition and local dynamics and human emotion and all of it like makes the system very complex, and that's actually our advantage, right? AI doesn't eliminate this complexity. It just makes navigating it a lot easier. So what we don't need to do here is just stick to some hypothetical end state. We just need to be meaningfully better than the alternative and the legacy process at every step. Like this is a Red Queen's Race dynamic, and it works in our favor here. Look, we've been running in this very complex environment for years, and we have a craft ton of operational knowledge, and that is deeply, deeply useful. The last -- I promise this is the last layer. I like 5-layer cakes. The fifth layer is about what AI does to the other side of the transaction. So there are 2 parts to this, right? What the customer feels and sees and what it does to the category. On the customer side, look, the traditional real estate process is defined by information asymmetry, right? That's just not an accident. That's the foundation of the whole process, but experts who know the market make profit from transaction friction because the parties themselves can't navigate it. AI totally dissolves this asymmetry, right? What that means is the customers are being like upgraded. We can build AI concierge that feel to the customer like the expert is sitting at the kitchen table, right? That's an incredibly important thing, and it's what we're doing. On the category side, this is the actual metabit, right? Every major Internet transition, every industry has had winners that didn't just jam the Sears catalog into a browser, they actually helped with the transaction, travel, retail, fintech, that's been true across of Internet. It just hasn't happened in real estate and real estate is like honestly, the last major holdout, not because the category is fundamentally immune from this, but because the underlying complexity made it a little too messy to transact at scale. AI just totally removes this constraint. I think I should actually start the answer by saying yes. But yes, we believe we're well positioned. It's honestly on the inside, it feels as though our business was built waiting for this mana to fall from heaven, and it now has. Michael Judd: Great. We got a few questions submitted via Say Technology that all kind of clustered around profitability. So I wanted to pull out 2. The first comes from Heejun C., who's asking, you said in the last earnings call that turning profitable by the end of the year was achievable. Now the first quarter has passed and interest rates remain high. Is that still a realistic goal? Also, Arun Jacob V. asks, how confident are you today in the Q2 positive EBITDA and year-end profitability forecast? And what are the key swing factors from here, which might influence it? Christy Schwartz: So great questions. Thank you. We reconfirmed our goal and expectations earlier on the call, and I'll say it again here. We expect Opendoor to be breakeven or profitable, adjusted net income profitable, by the end of this year on a 12-month go-forward basis. And Arun, to answer your question, we also shared in the call earlier that we're going to reach an important milestone on that path to profitability in that starting in Q2 2026, we expect to be adjusted EBITDA profitable on a 12-month go-forward basis. Our management objectives that we report every single quarter are the 3 legs to the stool that help ensure we're on the right path, and we're building momentum. Acquisition closes are up. Acquisition contracts, the leading indicator to closes, are also up. In fact, Q1 2026 had over 5,000 contracts. That's the highest quarter of contracts since Q2 2022. Retail contribution margin has improved every single month since September, and we guided Q2 to the middle of our 5% to 7% targeted CM range. Long-held inventory went from 51% to 10% in 2 quarters. And we did all of this while holding fixed OpEx down. The last time acquisition contracts exceeded 5,000 in a quarter, our fixed OpEx was double where it is right now, yes, double. And that's the AI investments and operator empowerment that we talk about every single quarter, that's what's happening here in fixed OpEx. We have made meaningful changes to what is required to run Opendoor 2.0, and we are beginning to demonstrate that those changes are durable as the volumes return. We're clear on our profitability goals, and we will continue to check back in every quarter with updates. Kasra Nejatian: Can I add something here? I think Warren Buffett famously said you find out who's swimming without shorts when the tide goes out. I have 4 kids, and they actually sometimes go swimming and I have to worry about them wearing shorts. So I feel for Warren. But right now, like the tide is out in housing, right? In the real estate market, the tide is out. And most CEOs will tell you that they wished conditions were friendlier. I'm telling you the opposite. When I took this job, I knew the tide was out. That was the entire point. I didn't take this job because I was hoping macro would turn and would bail us out. Like I wasn't looking for a company of sunshine patriots. I think Kelly Clarkson famously retweeted Nietzsche and said, what doesn't kill you actually makes you stronger. We chose -- I chose hard mode. We choose hard mode because that's what's going to make us stronger. Look, we do not need permission from the Fed to put on our shorts to go swimming. Everything we've accomplished so far, everything has been done in the face of an unforgiving macro. And I think we've told you how it looks like when we're winning. And some of you are watching this. But I think I should tell you what it would look like if we were losing, if we could not do the things Christy said we will do. This is the thing most company CEOs don't do because they're afraid they're going to end up losing and they want to be able to hide it, but I want you to hold us accountable. Here's how you would know. Cohort curves start looking like they did with the purple lines. They would start high, would have massive losses as we went through. Contracts would plateau at the low end of our range or below the low end of our range for a whole bunch of weeks and homes greater than 120 days in the market would go back to what we had in Q4. If those 3 things happen, if all those 3 things happen, then we're not doing what we said we would do, right? It's all about slope, acquisition, inventory health. That's the business. Those 3 things. Look, I don't think any of those 3 things are going to happen. I don't think all 3 of them are going to happen together because we believe we've built a model that works better. Faster is the key. We can't ignore the macro. We're not stupid, but it will never be our excuse. Good excuses don't make great companies, right? We control our own destiny. We don't need the market to recover. We don't need rates to fall. We don't need perfect conditions. We just need to keep moving more families faster and faster through a machine that's already working. So as I've said before, look, we're not asking you to take our word for it. We're just asking you to watch those 3 things that Christy talked about. Michael Judd: Great. The next question, Andrew L. asks, as you accelerate acquisition velocity, how are you ensuring that underwriting quality remains high and that you won't need to raise equity to fund this expansion? Christy Schwartz: Thank you for the question, Andrew. It's important to know that we're not accelerating acquisitions by driving like blunt spread compression. It is driven by a combination of tailored underwriting that allows us to give really compelling offers to high-quality homes, product expansion through our Cash Now, More Later product, geographic expansion and just conversion improvements realized from such things as making improvements to the offer page. While we've removed the requirement for an in-person visit from pre-contract to post contract, we still perform an in-person inspection before we purchase the home. This sequencing change helped remove friction from the contracting process, and it saved the cost of an in-person inspection for higher intent sellers. without compromising our understanding of the home we're about to acquire. But what I just described isn't proof that our underwriting quality remains intact and high. The proof is in the cohorts themselves. Our October, November, December and now January cohorts are each coming in with higher contribution margin, improved margin stability, increased resale velocity compared to their prior year cohorts. On the capital question, our cash position actually grew as we acquired more inventory, which reflects the underlying health of our inventory book. Younger homes with shorter days on market are structurally easier to finance, and we have sufficient warehouse capacity to more than keep up with our acquisition pace and plans. We also have warrant structures that provide additional capital optionality. To the extent any future capital decision is made, we expect to be opportunistic rather than necessary, and we will continue to evaluate the capital stack with an eye toward minimizing dilution. Kasra Nejatian: I say a couple of things here. Like first, there's a persistent myth that to move fast, you have to be sloppy. I just fundamentally reject this. Look, there was a rumor when I joined Opendoor that Opendoor was the best buyer of homes with foundation issues. Like whether or not that was true, it's definitely not true anymore. Today, we use AI to remove this toil we had accrued. We no longer have 11 people touching every single home so that one person that does touch it can actually do their job well, right? That's actually all I want to say about underwriting because I don't want to give away all of our secrets. But on the equity piece, let me add to what Christy said. I said it in my very first earnings calls, but I want to repeat it. I despite dilution. If we issue a share, it has only one job to make every other share worth more for our existing shareholders. We will never issue shares to extend the runway. That's not what we're going to do. The goal is for Opendoor to never be in a position where it has to raise money to survive. In the history of this company, it has raised way too much money. We're going to stop doing that. The discipline we need going forward is that we're going to fund this business from the cash flow we generate. I'm not interested in like building a company that needs a life graph every time. I'm interested in building a ship that actually floats, right? What Christy talked about isn't the best case scenario. It's the only way we were going to run this company. Michael Judd: Great. Our next question comes from Heejun C., who asks, I'm interested in your 4.99% mortgage promotion currently exclusive to Colorado. Are there plans to expand this offer to other regions or states soon? If so, please provide an estimated time line or a list of upcoming locations. Kasra Nejatian: Well, look, first of all, it wasn't a promotion. I want to be clear about that. That was the actual rate. We don't run rate connect here. We charge what the math allows us to charge, right? Look, mortgage is early right now. We're live in Colorado and loans are doing well without any optimization, right? Attach rates are above even my most optimistic expectations. And I'm not going to give you a launch calendar for every market, but we're in flight on licensing in about just over 20 states right now, and we expect to kind of roughly double that by the end of Q3, and we're rolling this out as fast as we can. But we've gotten some early feedback that I think is helpful. One of the customers told us that our rates blew the other lenders out of the water. And I want to talk about our math and why our rates below other lenders out of water, right? The math is simple. Big bank lenders take about 340 basis points in revenue per loan. Most of that is just a toil tax on the borrower, right? It pays for branch offices, loan officers, manual underwriting, paper shuffling, terrible ads and like expensive lunches. We've built an AI-native mortgage platform from day 1. No legacy system, no commission-driven sales force, right, as few humans as possible to get the job done. So we're not just discounting our way to a lower rate. We're actually building our way towards this. That structural advantage means that the regular mortgage on our homes will always be the lowest rate the customers can get, right? Today, our rates are running about 100 basis points below the market average. And that translates to about 10% to 15% lower mortgage rates per month. And that's the gap, right? Our job is to just chip away at this to make sure that we actually make housing affordable in this country. Michael Judd: Great. James M. on Say asks, tokenization of real estate? Kasra Nejatian: What's the question? That's the whole thing? Michael Judd: That's the question. Kasra Nejatian: Okay. Well, I think this is a question that gets asked frequently, and I have a rule of not announcing product launches before they're ready. I think the worst thing tech companies do is they make software for PowerPoint presentations, and that's just stocks, that's what makes people hate software companies. Opendoor exists to tilt the world in favor of homeowners, right? Simpler, faster, fairer, and you do that by reducing the friction tax. Like the embedded friction tax in the system today on a given transaction is a double-digit percentage of the home's value. And tokenization is an incredibly important way of reducing this. Here's like how I think about it. And it's important to be mindful of this. The patterns that we treat today as the natural order of things are usually just the last hack that someone installed on our machines, right? This is when Judd starts rolling his eyes. But it matters, so I'm going to talk about my favorite topic, history of money. Look, we went from barter to coinage to build an exchange to checks to ACH to SWIFT, right? And it really does feel like we're living in the future. But the entire system of money that we rely on runs on banks running COBOL software. This is a programming language from 1959. So the infrastructure powering our banking system that moves trillions of dollars is older than the moon landing. And we feel like we're in a stable place, but the people who were bartering also felt like they were in a stable place, right? These are not permanent solutions. None of them are permanent because of the following. They all require intermediaries between people to get anything done, right? That cannot be the end state. Onchain settlement is the first time in the history of money where you don't need permission from other people to move value between 2 parties. This isn't an incremental improvement. It's like an inevitable category end, right? And within our lifetime, we're going to see what it does and everything we do today will seem antiquated. And title is the same story. It's just about 100 years behind, right? Like animals mark their territory physically and humans mostly have done the same thing for most of history, right? The real innovation here was in Medieval England. We formalized this with a clot of dirt and some witnesses, and now we have some paperwork. All that has happened between then and now is that some of these are searchable on the Internet. That's the entire innovation that these paper records that live in courthouses are now searchable. Look, the fact that there is a lobbying group, defending the current way of doing things is the most reliable evidence that we'll do for the next thing. It's like the petition of the candle makers against the sun. When I look at the housing transaction, I find it really hard to imagine that title to the most expensive asset in our lifetime does not live on chain. It's hard to imagine that we have 3 transactions doing the same thing, Title, insurance, mortgage, and they all have data trapped in silos. These will all move on chain. Now look, I'm not announcing any of this today, but we are doing work that's on the green path to end. Our acquisition of Doma's escrow business is one example, right? We're taking the closing infrastructure of America, building checkout for real estate. And this is not tokenization, but it's clearly the step in the right direction. And in that world, title and mortgage and insurance, all of it can move on chain, and this all gets better. Operator: Thanks, Kaz. I can't wait for the TED Talk. Our next question comes to us from Dae Lee from JPMorgan. Kaz, you've now been leading Opendoor for over half a year and have had time to implement meaningful changes across the product and operations. As you reflect on the moves you've made, which specific change do you believe is having the most measurable impact on seller conversion rates and acquisition volumes today? And what does the data tell you about that's compounding across your markets? Looking ahead, where do you see the biggest opportunity to structurally drive more homes purchased per market without proportionately scaling OpEx? Kasra Nejatian: Dae, I want you to know that I noticed that was 2 questions. Let me answer them one at a time. On what's actually moving the numbers? Look, I don't think any single thing we shipped is moving anything by itself, but the real structure change in our system is, right? Like think about the classic sell me this pen story. The old Opendoor was the guy who would say, this pen is amazing. It's so smooth. It's lovely. The guy who would aggressively show up and give you one choice. Like that was the old cash offer world. We'd show at your door, give you one choice, say, yes or no. That's not how people transact, right? The new Opendoor starts by asking the customer what they want. What do they actually need? What are they worried about? How much cash they want upfront? What do they want later, what time line they want? Cash Now, More Later isn't a single offer. It actually allows the customer to change Opendoor's business logic so that it works for them, right? The new offer page also does the same thing. It is the digital equivalent of sitting down with someone and explain to them the realities of their neighborhood, their home instead of just flashing a headline number, right? We want the customer to have the full picture and make the right choice that is best for them, and we want to be helpful in that process. And most people think that in order to do that, you need a human at a kitchen table. I think that's just wrong. Most people just want the information themselves so they can decide for themselves what's best for themselves. That's the shift. That's driving the conversion improvement. We also used to believe we would need boots on the ground everywhere we had homes. I actually insisted on launching every state in the Lower 48 because I want to test this hypothesis. It turned out that if you have a good underwriting model, a good product and a good partner network, you can buy homes anywhere, like we closed a home in South Dakota this week, and we have 0 employees in South Dakota. So that actually helps a lot. And to your second question on OpEx, I mean, I think we've already answered a lot of this. But the same machine does both of these things, right? More offer types mean more sellers, more sellers per market means we can have more transactions without adding headcount city by city. But the big price, obviously, is the tens of millions of people who want to move who can't, right? Between supply and demand, there is friction, right? If you reduce friction, you move both supply and demand lines. I actually saw this every day at Shopify. We made entrepreneurship easier. Therefore, we created more entrepreneurs. The same dynamic is true in housing, right? As we make things easier in buying a house, selling a house, mortgage, title and eventually insurance, all of this will increase the demand and increase the supply. And none of this requires like significant incremental headcount. Now, look, now this works if the underlying engine isn't good, but I think we've shown you that we're no longer peanut buttering spread across cohorts. And we've shown you we have now 4 cohorts of data and Q1 was our largest contract quarter in years. The last time we had this many homes in contract, our fixed OpEx was twice as high. So I think that answers your second question. Michael Judd: Great. Andrew from Citizens is curious to help us understand a little bit more about seasonality kind of through the balance of the year. Christy Schwartz: I'm happy to provide some color on seasonality, and I'm sure Kaz will be happy to add something as well. Each quarter, we provide a series of macro charts, and those charts show a consistent pattern in every macro, strong macro, neutral macro, challenged macro, one thing remains the same, and it's the seasonal pattern. They present themselves year after year. Macro changes the level of the curve and seasonality is the shape of the curve. The selling season kicks off shortly after the Super Bowl, peaks in early summer, then tapers through fall and bottoms out in December. This affects our resale velocity, which is considered in our spreads and therefore, impacts our acquisition cadence. Days on market lengthens in the back half, margins compress in Q4. Our acquisition cadence runs inversely to market resale activity. We acquire less in late spring when we'll be selling into weaker demand, and we build inventory throughout the fall in anticipation of the spring selling season. You'll now see seasonality more reflected in our estimates on accountable.opendoor.com. We've updated our projected acquisition range with the shape easing through spring and summer and building through the fall. Kasra Nejatian: I will add something. Look, seasonality is just like gravity. It's like a rule of nature. You don't blame gravity and if you try to fight it, you tend to lose. We know how to fly planes. We don't do it by fighting gravity. We just build math to fly them, right? And while we can't flatten the curve entirely, we can collapse the impact over time, and that's what we're working on. Opendoor is like a retail like Walmart, like Home Depot, like Amazon, like Shopify, these retailers have known seasonality, but obviously, Q4 is a better quarter for them because of Christmas. And Q1 numbers are always lower than Q4. But no one would argue that Walmart's strategy has failed because January sales were lower than December sales. That would just be insane. The shape is just like the shape. The same general seasonal shape that shows up in housing in 2021 when the market was on fire, in 2022 when the rates spiked and in 2025, when delistings like hit record highs, that's the shape, the different macro environments, but the same calendar like since Pope Gregory invented it, I guess. Opendoor knows more about the shape of the curve than almost anyone else in the world, and we shape our underwriting engine around it, right? We underwrite homes based on when we plan to sell them. That's what our underwriting engine does. And I think it is working better and better every day. Look, I want to end this answer with what I said earlier. We committed to being ANI profitable on a go-forward 12-month basis at the end of this year. Hard macro or not, we will do that. Our floor model assumes this hard macro will continue. If there's an interest rate cut or the macro improves, our floor will be higher. So I think we're running out of time. So let me just close with this okay. Look, we're not asking you to believe in vibe here. We're asking you to watch the scoreboard, the cohort slope, acquisition contracts, inventory health. That's it. Those are the tells, right? If we keep moving the way we moved this quarter, then the machine is doing exactly what we said it would do. The market didn't bail us out here. Rates didn't save us. The team just did the work. They rebuilt the company's operating system. They shipped products. They cleaned up the book. They grew contracts, and they did it way more efficiently than anyone thought we could do it. That doesn't just give me optimism. It gives me confidence. we will have a lot left to prove, and we always will. When we reach profitability, the next part is how much? It just won't stop, right? We're going to keep shipping. We're going to keep showing you the data, and we're going to keep moving faster because families matter. Okay. That's it. Thank you. Thank you, and see you all next quarter. Before you buy stock in Opendoor Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Opendoor (OPEN) Q1 2026 Earnings Transcript was originally published by The Motley Fool