Opendoor Technologies Inc. (NASDAQ:OPEN) shares climbed sharply in after-hours trading Thursday, jumping 13.1%, as investors brushed aside a steep quarterly earnings miss and instead focused on accelerating momentum in the company’s home acquisition engine.
The San Francisco-based iBuyer, which purchases homes directly from sellers and resells them, has been working to reshape its business model amid one of the most unpredictable U.S. housing environments in more than a decade. Higher mortgage rates, constrained housing supply, and slowing transaction activity have pressured real estate technology firms across the sector — yet Opendoor’s latest operating metrics suggest the company may be regaining traction after a prolonged downturn.
Earnings miss overshadowed by revenue beat
Opendoor reported a fourth-quarter loss of $1.26 per share, far wider than analysts’ consensus forecast of a $0.12 loss, reflecting continued profitability challenges in a market where pricing volatility and resale risk remain elevated.
Still, revenue came in well ahead of expectations, reaching $736 million, compared with Wall Street estimates of $576.94 million. The top-line strength signaled that transaction volumes and platform activity are beginning to recover after a period of retrenchment.
Investors appeared willing to tolerate near-term losses in exchange for evidence that Opendoor’s operational reset — dubbed “Opendoor 2.0” — is starting to deliver measurable progress.
Home acquisition volume jumps 46%
The clearest driver behind the rally was a sharp increase in the company’s purchasing activity.
Opendoor disclosed that total homes purchased rose 46% quarter-over-quarter, reflecting a renewed push to scale acquisitions and restore marketplace liquidity.
The rebound comes as the broader housing market remains stuck in a slow-moving cycle. Existing home sales across the U.S. have struggled to recover meaningfully, with many homeowners unwilling to sell due to locked-in low mortgage rates from prior years.
Against this backdrop, Opendoor’s ability to expand acquisition volume suggests improving consumer engagement and stronger execution in pricing discipline — a key differentiator for iBuyers.
Inventory turnover improves as older listings decline
Opendoor also reported meaningful progress in clearing older inventory, one of the biggest risks for companies that hold homes on their balance sheets.
The percentage of homes listed for more than 120 days fell to 33%, down from 51% in the third quarter of 2025, indicating faster resale velocity and reduced carrying risk.
Investors were further encouraged by a 23% reduction in inventory days in possession, an operational metric closely watched as a proxy for capital efficiency.
If sustained, improved turnover could allow Opendoor to reduce its sensitivity to mortgage rate fluctuations — one of the major headwinds that has driven volatility in the stock.
Cost discipline supports restructuring narrative
Fixed operating expenses declined to $35 million, reinforcing management’s efforts to streamline the business and reduce capital intensity.
Chief Executive Officer Kaz Nejatian said the quarter’s results validate Opendoor’s longer-term turnaround roadmap, emphasizing structural improvements in pricing accuracy and inventory selection.
“These results reflect structural improvements in how we operate with more accurate pricing, faster inventory turns, and disciplined selection,” Nejatian said. “The evidence of progress is clear.”
Real estate tech peers face similar pressures
Opendoor’s rally also comes as real estate technology stocks broadly attempt to stabilize after years of disruption.
Traditional listing platforms like Zillow Group (NASDAQ:ZG) — which famously exited the iBuying business in 2021 after suffering heavy losses — have shifted back toward asset-light models focused on advertising and marketplace services.
Meanwhile, companies such as Redfin (NASDAQ:RDFN) have faced continued transaction weakness, cutting costs and adjusting strategy as housing demand remains uneven.
Unlike Zillow, which abandoned direct home purchasing entirely, Opendoor has doubled down on refining its model rather than exiting the category. Investors appear increasingly optimistic that Opendoor can succeed where earlier iBuying efforts struggled, provided the company maintains pricing discipline and faster inventory turnover.
Cash Plus program emerges as capital-efficiency lever
A major area of investor focus remains Opendoor’s “Cash Plus” program, which now accounts for 35% of weekly volume.
The initiative is designed to reduce balance sheet exposure while still capturing transaction flow, offering sellers flexibility without requiring Opendoor to hold every home as inventory.
Analysts view the program as a potential pathway toward a more sustainable, lower-risk operating structure.
Profitability target set for 2026
Looking ahead, Opendoor reiterated that management is prioritizing a return to positive adjusted net income by the end of 2026 on a rolling twelve-month basis.
For the first quarter of 2026, the company expects an adjusted EBITDA loss between $30 million and $35 million, while revenue is projected to decline by about 10%.
Still, Thursday’s after-hours surge suggests shareholders are increasingly focused on operational momentum rather than near-term earnings volatility.
If Opendoor can sustain higher acquisition volumes, reduce holding periods, and scale programs like Cash Plus, the company may strengthen its long-term valuation case — even as the housing market remains constrained by affordability challenges and uncertain interest rate trajectories.
