Opendoor Technologies Inc.

Q2 revenue was $883 million, up 23% quarter over quarter. Contribution profit was $51 million, up 59% quarter over quarter, and contribution margin was 5.8%, the highest in 2 years. Opendoor acquired 4,378 homes, up 77% quarter over quarter and 149% year over year, and ended the quarter with 2,310 homes under contract and 5,459 homes in inventory. Cash and cash equivalents were $896 million. For Q3, management guided to at least 20% year-over-year revenue growth, contribution profit dollars to more than double year over year, and contribution margin of about 4% to 4.5%. The company reiterated it expects to be adjusted net income positive on a 12-month forward basis by the end of 2026, and Christy Schwartz said adjusted EBITDA profitability is expected on a 12-month forward basis as of 2027.

Kasra Nejatian framed the quarter as proof that Opendoor’s turnaround is becoming “just math,” saying the company is converting more sellers without paying above fair prices and is now operating within its target contribution margin range. He emphasized a shift from being “a real estate company with a website” to a product company, with AI, software, and new mortgage capabilities reducing friction across the transaction. His tone was highly confident, but he repeatedly noted the work is still a turnaround and that seasonality and integration effects will continue to create uneven quarters.

Christy Schwartz highlighted the operating leverage progress: homes acquired rose to 4,378, revenue increased to $883 million, contribution profit was $51 million, and contribution margin was 5.8%. She said marketing spend fell from $19 million to $5 million quarter over quarter, operating expense was $51 million, fixed operating expense was $35 million, and trailing 12-month operations expense was 1.6% of revenue. She also said the company ended with $896 million in cash and had increased inventory by more than $700 million, largely through nonrecourse asset-backed facilities, while noting that cash now later products use less capital per home. On outlook, she guided to modestly higher adjusted operating expense in Q3 because of inventory holding costs and a small increase in marketing.

Analysts focused on whether Opendoor is still on track for profitability, the timing and economics of a direct buyer-seller marketplace, the rollout of mortgage, and how AI is changing scalability. Management reiterated that it expects adjusted net income positive on a 12-month forward basis by the end of this year, said the direct marketplace is a later-stage step after cash offers and cash now later, and refused to give revenue or profit targets for unlaunched products. On mortgage, management said it expects to be licensed in around 35 to 40 states by year-end and cited early traction in Colorado and Texas, while emphasizing the product is still intentionally simple and focused on vanilla loans. On AI, Schwartz said it is reducing manual work, improving leverage, and helping the company scale without linearly increasing headcount.