By Nate Wolf

Shares of Opendoor Technologies plummeted Friday after the online homebuying platform's first earnings report under new leadership.

The company posted an adjusted loss of 8 cents for the third quarter, wider than the loss of 7 cents analysts had anticipated. Revenue totaled $915 million, down roughly 34% from last year but ahead of Wall Street's call for $850 million.

Adjusted earnings before interest, taxes, depreciation, and amortization, or Ebitda, came in at a negative $33 million, worse than analysts' forecast of a $24.4 Ebitda loss.

Opendoor stock fell 23% to $5.02 in premarket trading Friday. Shares have gained more than 300% this year as of Thursday's close, having attracted meme-like support from a loose group of retail investors dubbed the Open Army.

Those shareholders got their wish in September, when co-founders Keith Rabois and Eric Wu returned to the Opendoor board and Kaz Nejatian, the former Spotify chief operating officer, took over as CEO. The new leaders have promised wholesale changes at the company, including greater use of artificial intelligence, an increase in transaction volume, and "ruthless" cost cutting.

"We are re-founding Opendoor as a software and AI company," Nejatian said in a statement. "Our business will succeed by building technology that makes selling, buying, and owning a home easier and more joyful -- not from charging high spreads and hoping the macro saves us."

Opendoor is targeting positive adjusted income on a 12-month forward basis by the end of 2026, Nejatian said. The company last reported an adjusted profit in the second quarter of 2022, at the tail end of the pandemic-era homebuying boom. It has never broken even over a fiscal or calendar year.

"Our path to profitability is clear: transact with more sellers, strengthen our unit economics through better pricing and resale speed, and drive operational efficiency by being ruthless on expenses," Nejatian said.

Getting there may take some short-term pain. Opendoor forecast an adjusted Ebitda loss in the high $40 millions to mid $50 millions next quarter -- in line with a $49 million loss in the same quarter last year. The company said it was focused on clearing inventory and replenishing its home stock through a surge in acquisitions.

"Our results in the upcoming quarter are largely the outcome of us managing decisions that were made several months ago," the company said, referring to the prior regime. "We're focused on making the right long-term decisions for the business, not managing to short-term guidance."

Write to Nate Wolf at nate.wolf@barrons.com

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November 07, 2025 09:03 ET (14:03 GMT)

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