Opendoor Technologies Inc. (NASDAQ:OPEN) shares are climbing Friday premarket after the company reported fourth-quarter financial results that outpaced analyst expectations.

Q4 Earnings Performance

For the quarter ended December, Opendoor reported revenue of $736 million, significantly exceeding the analyst estimate of $594.02 million. The company posted an adjusted loss of seven cents per share, beating the consensus estimate for a loss of 10 cents per share.

Operationally, the company purchased 1,706 homes during the quarter, representing a 46% increase compared to the previous quarter. Inventory velocity also improved, with the percentage of homes on the market for over 120 days dropping from 51% to 33% sequentially.

Management Commentary

CEO Kaz Nejatian attributed the performance to the company’s revamped operational strategy. “These results reflect structural improvements in how we operate with more accurate pricing, faster inventory turns, and disciplined selection,” Nejatian stated.

The company highlighted that its October 2025 acquisition cohort is on track to be the most profitable in company history, demonstrating improved contribution margins.

Future Outlook

Looking ahead to the first quarter of 2026, Opendoor expects revenue to decrease approximately 10% year-over-year. Management anticipates an adjusted EBITDA loss in the low to mid $30 million range.

“Our contribution margin bottomed out in September and has been improving every month since. We expect to exit Q1 2026 with the highest contribution margin we’ve posted since Q2 2024,” the company said.

Short Interest Data

According to the most recent reporting period, short interest in Opendoor decreased from 119.12 million to 118.17 million shares. This represents 13.83% of the company’s float. Given the average daily trading volume of 49.24 million shares, the current short-to-cover ratio stands at 2.4 days.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the May 5, earnings report. Here’s what to expect:

• EPS Estimate: Loss of 9 cents (same as the previous year)
• Revenue Estimate: $594.97 million (down from $1.15 billion YoY)

Analyst Consensus & Recent Actions: The stock carries a Hold Rating with an average price target of $2.59. Recent analyst moves include:

• Citigroup: Sell (Raises Target to $1.40) (Nov. 12, 2025)
• Keefe, Bruyette & Woods: Underperform (Raises Target to $2.00) (Nov. 10, 2025)

OPEN Price Action: Opendoor Technologies shares were up 17.42% at $5.46 during premarket trading on Friday, according to Benzinga Pro data.

Photo by PJ McDonnell via Shutterstock

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