The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | — | 20.8x | Top tier | |
Growth | 8 | -23.2% | 6.1% | Bottom tier | |
Quality | 6 | -27.8% | 6.6% | Bottom tier | |
Safety | 56 | 2.2x | 0.7x | Around median | |
Capital Return | 96 | — | 2.02% | Top tier | |
Momentum | 42 | 392.9% | 4.1% | Around median | |
Sentiment | 78 | 6 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Opendoor Technologies Inc. (OPEN) is a pioneer in the digital real estate and real estate transaction monetization space, operating as a market maker that buys residential homes directly from sellers and resells them to buyers to facilitate transactions and reduce waiting periods. The company generates its revenue primarily from selling the residential properties it owns in its portfolio, alongside offering integrated ancillary services such as mortgage financing through Opendoor Mortgage, and escrow and title services following the strategic acquisition of Doma's escrow division.
During the first quarter of 2026, the company recorded revenue of $720.0 million, with a gross profit of $72.0 million, and a net loss of $173.0 million, which equates to a loss per share of $0.18. Despite the continuation of net losses, the company showed a tangible improvement in its resale contribution margin, which rose by 3.4 percentage points compared to the previous quarter to reach 4.4% in the first quarter of 2026, driven by improved inventory pricing efficiency and operational cost management under its new strategy.
Analysts consensus rates Opendoor Technologies Inc. (OPEN) stock as a Hold, with the average analyst price target at $6.17, an optimistic ceiling of up to $8, and a minimum target of $5. Considering the company's current market capitalization of $3.5 billion and comparing it to the stock's 52-week trading range of $0.508 to $10.87, the stock trades at levels reflecting market anticipation of the success of the Velocity OS operating model and the company's ability to reach the estimated financial break-even by the end of 2026 without the need for additional external financing.
Figures in the text are as of 2026-06-15; the live price is shown at the top of the page.
The 'Cash Now, More Later' product represents a flexible option that allows sellers to receive a portion of their home's value in cash immediately while deferring the remaining portion for later, giving them greater flexibility in managing residential moves. This product has achieved extremely rapid growth, representing more than one-third of the acquisition contracts signed by the company in the first quarter of 2026, compared to zero percent in the same period of 2025. The company continues to adjust and develop this product to achieve the optimal balance between the payouts received by sellers and the margins retained by Opendoor to boost its profitability.
Opendoor's management has set a clear roadmap focused on achieving Adjusted EBITDA profitability on a forward 12-month basis starting from the second quarter of 2026. Additionally, the company aims to reach break-even in adjusted net income by the end of 2026 through improving contribution margins and reducing fixed costs. These targets are supported by positive indicators, such as the contribution margin improving for six consecutive months to reach 4.4% in the first quarter of 2026, with expectations to reach the midpoint of the target range of 5% to 7% in the second quarter.
Automated analysis for informational purposes only — not investment advice.
Opendoor successfully reduced the percentage of homes that remained listed on the market for more than 120 days significantly from 51% at the end of the third quarter of 2025 to just 10% by the end of the first quarter of 2026. This 41 percentage point improvement was achieved through implementing customized insurance coverage tools, accelerating inspection and renovation processes, and developing pricing algorithms that rely on turnover speed rather than forecasting future prices. As a result, the company now possesses an inventory book that is its freshest and most active in nearly four years, reducing carrying costs and market risks.
The company adopts a strategy based on integrating artificial intelligence into the core of its daily operations, successfully reducing fixed operating expenses to $33 million in the first quarter of 2026 compared to approximately $35 million in the previous quarter. These applications include using the AI-powered automated underwriter Noah for property pricing in markets like Phoenix, alongside activating repair negotiation tools that reduced the buyer drop-off rate by double digits. AI systems also helped field operations managers reduce renovation expenses by 10% to 20% per home in pilot markets.
The company currently offers the Opendoor Mortgage service in the state of Colorado at a promotional interest rate of 4.99%, which is approximately 100 basis points lower than the traditional market average, providing buyers with a 10% to 15% reduction in monthly payments. This pricing advantage is due to building a fully digital, AI-driven mortgage platform that avoids the high costs of physical branches and traditional commissions. The company is currently working on finalizing licensing procedures in more than 20 additional states, with plans to double this number by the end of the third quarter of 2026 to expand the service's geographic reach.