Opendoor revenue rises 12% to $1.022 billion in third quarter
Key Facts
Opendoor reported on November 5, 2026, results for the quarter ended September 30, posting revenue of $1.022 billion, up 12% year over year and 16% quarter over quarter. Revenue compared with $915 million in the third quarter of 2025 and $883 million in the second quarter of 2026, according to the company’s statement. Sales growth coincided with a sharp increase in the number of homes the company purchased, while gross margin fell and net loss widened from a year earlier. The company said a slowing housing market put it behind its target, and that its outlook for the coming period takes current market conditions and existing inventory into account. The statement did not include figures substantiating analyst estimates or loss per share; the company’s results instead focus on revenue, inventory and operating profitability.
Opendoor purchased 4,865 homes during the quarter, compared with 1,169 in the same period a year earlier, an increase of 316%, according to company data. Its estimated share of the U.S. addressable market rose to 0.56% from 0.13% a year earlier, or about 4.4 times the previous level. The figures show an expansion in purchasing activity and market presence over the year, alongside year-over-year and quarter-over-quarter revenue growth. But the increase in purchase volume did not prevent gross margin from declining, highlighting the divergence between business volume and profitability measures in the quarter. The available data did not provide a separate numerical explanation linking the increase in purchases directly to changes in margins or the loss.
In terms of inventory, homes listed for sale for more than 120 days accounted for 18% of Opendoor’s listed inventory on September 30, 2026, compared with 51% on the same date a year earlier. The comparable figure for the overall market was 30% in the third quarter, according to the company. This measure puts the share of the company’s inventory taking longer to sell below the market figure and far below its level a year earlier. The comparison comes alongside an increase in the number of homes the company purchased, offering an indicator of the age of part of its listed inventory as activity expanded. Inventory data, however, do not change the picture of quarterly profitability, as gross margin declined and net loss widened year over year.
Gross margin under accounting standards fell to 3.7% in the third quarter of 2026 from 7.2% a year earlier, while net loss increased to $218 million from $90 million. On another measure, contribution profit rose to $34 million, compared with $20 million in the third quarter of 2025. Adjusted EBITDA loss was $31 million, versus a loss of $33 million a year earlier. The results therefore combine an improvement in contribution profit and a smaller adjusted EBITDA loss, on the one hand, with a decline in gross margin and a wider net loss, on the other. The different measures show that improvement in some operating indicators was not accompanied by a similar improvement in net results or gross margin during the period.
Opendoor said it is targeting positive adjusted net income by the end of 2026, measured on a trailing 12-month basis, but acknowledged that it is behind its stated path. The company said in its statement: "We are working toward positive adjusted net income by the end of 2026, measured on a trailing 12-month basis. We are currently behind, but intend to catch up to the target." It attributed the delay to a slowing market, saying that "a slower market put us behind our target." The acknowledgment puts the profitability target at the center of scrutiny of the fourth-quarter results, after the company posted a larger net loss than a year earlier despite higher revenue and contribution profit. The stated plan remains contingent on the trajectory of activity and housing market conditions, which the company said are factored into its outlook.
The company expects fourth-quarter revenue to grow at least 40% year over year and adjusted EBITDA loss to be between $70 million and $85 million, with stock-based compensation of about $90 million. It said its guidance indicators for the period reflect "current housing market conditions and our existing inventory." The outlook pairs a targeted annual increase in revenue with an expected adjusted operating loss, while the positive adjusted net income target remains set for the end of 2026 on a trailing 12-month basis. The coming period’s results will test whether growth in sales and purchases will be accompanied by progress toward the profitability target the company said it is currently behind on.