Opendoor Revenue Rises 12% to $1.022 Billion Despite Wider Quarterly Loss
Key Facts
Opendoor reported on November 5, 2026, results for the quarter ended September 30, posting revenue of $1.022 billion, up 12% from the third quarter of 2025 and 16% from the second quarter of 2026. The results showed net loss widening to $218 million, compared with $90 million in the year-earlier period. Gross profit also fell to $38 million from $66 million, while its margin declined to 3.7% from 7.2%. The figures combine revenue growth and expanded activity on one hand with clear pressure on profitability on the other. The company’s statement did not include a documented move in its stock during the session when results were announced.
The company’s purchases rose to 4,865 homes during the quarter, from 1,169 homes in the third quarter of 2025, an annual increase of 316%, according to its statement. Opendoor estimated its share of signed acquisitions in its addressable U.S. market at 0.56%, versus 0.13% a year earlier, or about 4.4 times the previous level. These indicators reflect an expansion in the number of homes entering the company’s business and its estimated share of the target market. But purchase growth was not accompanied by an improvement in gross profit measures; gross profit and its margin declined year over year in the same quarter. This places operational expansion alongside the challenge of generating greater returns from buying and reselling homes.
Among inventory listed for sale, homes that had remained listed for more than 120 days accounted for 18% of total inventory on September 30, 2026, according to the company. The figure was 51% a year earlier, while the overall market stood at 30%, based on the comparison in its statement. The year-over-year comparison indicates that the share of long-listed homes in Opendoor’s inventory fell from its previous level and was also below the cited market-wide figure. Still, the data place the time homes remain listed among the performance indicators the company tracks alongside acquisition volume. The statement did not link these percentages to any single factor explaining the quarterly movement in profit or loss.
Marketing expense per home acquired was $2,800 during the twelve months ended September 30, 2026, down 57% from $6,500 in the previous twelve-month period, according to the company’s statement. This figure measures marketing cost per home purchased over the twelve-month period, not marketing expense per transaction in the quarter alone. The decline comes as the number of homes purchased in the quarter rose to 4,865, compared with 1,169 a year earlier. By contrast, the comparable annual gross profit margin fell to 3.7% from 7.2%, highlighting the different direction of marketing cost per home and gross profit margin. Contribution margin also declined to 3.3% in the third quarter from 5.8% in the second quarter, while contribution profit dollars fell to $34 million from $51 million.
In its guidance for the fourth quarter of 2026, Opendoor forecast annual revenue growth of at least 40%, but expected an adjusted loss before interest, taxes, depreciation and amortization of between $70 million and $85 million. The company also said contribution profit dollars would decline quarter over quarter. The guidance thus places expected revenue growth alongside continued adjusted losses and pressure on contribution profit, rather than indicating a simultaneous improvement in the metrics. The fourth quarter is the next milestone for assessing whether the revenue growth the company forecast will be accompanied by an improvement in profitability measures. The figures in the guidance are the company’s forecasts for the period, not reported results.
The company said it is targeting positive adjusted net income by the end of 2026, measured on a next-twelve-month basis, but is currently behind that goal, while stating its intention to catch up. It attributed the shortfall to a slowing market, without citing a figure for the financial impact in the quote. On the earnings call, Chief Executive Kaz Nejatian said the pace of home liquidations in the market began to collapse in the third quarter and had not recovered, linking this to difficult market conditions. He said: "In the third quarter, home liquidations started to collapse, and they didn't recover." The description places the challenge of reselling homes in the context of the difficult market conditions discussed by management, while the goal of positive adjusted net income by year-end serves as its stated benchmark for the next phase.