| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 50 | — | 17.8x | Around median | |
Growth | 14 | -37.2% | 7.1% | Bottom tier | |
Quality | 7 | -26.5% | 4.5% | Bottom tier | |
Safety | 20 | — | 2.6x | Bottom tier | |
Capital Return | 96 | — | 2.12% | Top tier | |
Momentum | 12 | -25.7% | 2.9% | Bottom tier | |
Sentiment | 44 | 6 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Opendoor Technologies operates as a digital marketplace for residential real estate; it provides the seller with a cash offer, then buys, renovates, and resells the home. Its core business equation is based on the number of homes transacted multiplied by the contribution margin, after deducting operating expenses and inventory financing costs. The platform also expands its relationship with the buyer through Opendoor Home Loans and title and warranty services, while the Cash Now, More Later product enables increased acquisitions with less capital and risk per home compared with the core cash offer.
In Q2 fiscal 2026, revenue reached $883 million, up 23% from the previous quarter and down 44% year over year. Contribution profit was $51 million, up 59% from the previous quarter, while contribution margin reached 5.8%, the highest reported level in two years and within the target range of 5% to 7%. The company purchased 4,378 homes, up 77% quarter over quarter and 149% year over year, increased acquisition contracts to 6,908, and ended the period with inventory of 5,459 homes plus 2,310 homes under contract to purchase.
The operational improvement remains separate from full accounting profitability. In Q1 fiscal 2026, the company recorded revenue of $720 million and gross profit of $72 million, for a calculated gross margin of 10%, but incurred a net loss of $173 million. In fiscal 2025, revenue reached $4.4 billion and gross profit was $350 million, compared with a net loss of $1.3 billion; trailing-twelve-month data within 2026 also show revenue of $3.9 billion and a net loss of $1.4 billion.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is Neutral, with an average price target of $5.92 and a wide range between $4.25 and $8; even the highest target is below the 52-week range high of $10.87, while the lowest target exceeds the range low of $3.15. No positive price-to-earnings ratio is available because of the losses, as the trailing-twelve-month loss within 2026 reached about $1.4 billion, making the valuation more dependent on the success of the turnaround and the achievement of adjusted net income profitability than on demonstrated earnings. The wide range of targets reflects the balance between improving contracts and margins on one hand, and the 44% year-over-year decline in Q2 fiscal 2026 revenue and the weak subsequent revenue outlook on the other.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
Opendoor purchases homes directly from sellers, then renovates and relists them for sale, so its revenue is linked to the number of homes sold and the average transaction value. The company determines the profitability of this activity through transaction volume and contribution margin, after operating expenses and inventory financing costs. In Q2 fiscal 2026, it purchased 4,378 homes and recorded revenue of $883 million and a contribution margin of 5.8%. Opendoor Home Loans, title and warranty services, and Cash Now, More Later also add tools to improve transaction economics and reduce friction between selling and buying.
The provided data did not record positive net income; in Q1 fiscal 2026, the net loss was $173 million, and in the trailing-twelve-month data within 2026, the loss was $1.4 billion. In contrast, Q2 fiscal 2026 generated contribution profit of $51 million and a contribution margin of 5.8%. Management targets adjusted net income profitability on a forward twelve-month basis by the end of 2026. Its framework is based on about 6,000 quarterly transactions, annual run-rate revenue of approximately $9 billion, and disciplined operating and financing expenses.
Q2 fiscal 2026 revenue reached about $883 million, down 44% year over year, while acquisition contracts increased to 6,908 from 5,136 in the previous quarter. Management explains that a contract converts into revenue after the home is purchased, renovated, listed, and then sold, so the increase in contracts appears in the financial statements after a time lag. The company also ended the period with inventory of 5,459 homes, plus 2,310 homes under contract to purchase. However, this timing difference alone does not guarantee a revenue recovery, particularly after the Q3 fiscal 2026 outlook came in below analysts' estimates.
Opendoor reengineered pricing, renovation, and operations around automation, and a pricing employee's capacity increased from about 20 valuations per day in Q3 fiscal 2025 to more than 50 by August 2026. A home project manager's capacity also increased from 3 renovations per month to about 10, with a target of 20 by the end of 2026. The share of homes requiring an employee visit before an offer was made declined from more than 80% several years ago to less than 20% by August 4, 2026. These changes were reflected in operating expenses per acquisition declining to $3,000 in Q2 fiscal 2026, compared with $8,400 a year ago.
Management views mortgages as an integrated part of the transaction rather than an ancillary service because they help the buyer complete the transaction and accelerate home inventory turnover. By August 4, 2026, the product financed more than half of scheduled closings in Colorado and about one in every five transactions in Texas after six weeks of launch. An Opendoor loan officer was able to process 50 mortgages per month compared with about 10 in the industry, according to management, without marketing spending for the product. However, FHA and VA loans and adjustable-rate loans were not available at that date, and the licensing target was to reach 35–40 states by the end of 2026.
On August 13, 2026, Opendoor executed its first share repurchase for $158 million, reducing the number of shares outstanding by 5%. On the same date, it raised $440 million from 0% convertible notes due in 2031. The repurchase reduces the number of shares sharing in the company's economic value, while the issuance strengthens liquidity without recurring cash interest expense. However, the convertible notes could lead to future ownership dilution if the conversion conditions are met, so the two effects should be evaluated together rather than each in isolation.
