Third Quarter 2026
Filed Nov 5, 2026Revenue increased 12% year-over-year; homes purchased more than quadrupled; TTM marketing efficiency improved 57% and operations efficiency improved 36%.
Revenue and acquisition volumes grew sharply, but gross margin declined, net loss widened, inventory increased, and the company guided to a larger Adjusted EBITDA loss in Q4.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $1.02B | up 16% quarter-over-quarter | up 12% year-over-year |
| Cost of revenueGAAP | $984M | – | – |
| Gross profitGAAP | $38M | – | – |
| Gross marginGAAP | 3.7% | – | – |
| Sales, marketing and operations expenseGAAP | $80M | – | – |
| General and administrative expenseGAAP | $121M | – | – |
| Technology and development expenseGAAP | $24M | – | – |
| Restructuring expenseGAAP | — | – | – |
| Total operating expensesGAAP | $225M | – | – |
| Loss from operationsGAAP | −$187M | – | – |
| Interest expenseGAAP | −$38M | – | – |
| Other income, netGAAP | $8M | – | – |
| Net lossGAAP | −$218M | – | – |
| Net loss per share attributable to common shareholders, basicGAAP | $(0.23) | – | – |
| Net loss per share attributable to common shareholders, dilutedGAAP | $(0.23) | – | – |
| Homes soldother | 2,728 | – | – |
| Homes purchasedother | 4,865 | – | up 316% |
| Homes in inventory (at period end)other | 7,596 | – | – |
| Inventory (at period end)other | $2.57B | – | – |
| Percentage of homes on the market for greater than 120 days (at period end)other | 18% | increased from 9% to 18% quarter-over-quarter | – |
| Contribution Profitnon-GAAP | $34M | – | – |
| Contribution Marginnon-GAAP | 3.3% | – | – |
| Contribution Profit per Home Soldnon-GAAP | $12K | – | – |
| Adjusted Gross Profitnon-GAAP | $80M | – | – |
| Adjusted Gross Marginnon-GAAP | 7.8% | – | – |
| Adjusted Net Lossnon-GAAP | −$66M | – | – |
| Adjusted EBITDAnon-GAAP | −$31M | – | – |
| Adjusted EBITDA Marginnon-GAAP | (3.0)% | – | – |
| Nine months revenueGAAP | $2.63B | – | – |
| Nine months gross profitGAAP | $196M | – | – |
| Nine months net lossGAAP | −$553M | – | – |
| Nine months net cash used in operating activitiesGAAP | −$1.80B | – | – |
| Nine months net cash used in investing activitiesGAAP | −$28M | – | – |
| Nine months net cash provided by financing activitiesGAAP | $1.53B | – | – |
Q4 2026 Outlook outlook
- RevenueWe expect revenue to grow at least 40% year-over-year.
- NoteAcquisitions: You can track our acquisition contracts on accountable.opendoor.com.
- NoteContribution Margin: We expect Contribution Profit dollars to decline sequentially as we continue selling into a difficult market. Our focus is moving homes.
- NoteAdjusted EBITDA: We expect an Adjusted EBITDA loss of $70 million to $85 million.
- NoteStock-Based Compensation: We expect approximately $90 million.
- NoteWe are driving to Adjusted Net Income positive by the end of 2026, measured on a twelve-month go-forward basis.
Capital returns
- Repurchase and retirement of common stock: $161 million for the nine months ended September 30, 2026.
What drove it
- Homes purchased increased to 4,865 from 1,169 in Q3 2025, up 316%.
- Signed acquisition volume represented an estimated 0.56% of market share in the addressable U.S. market in Q3 2026, compared with estimated 0.13% in Q3 2025.
- Cash Now, More Later accounted for more home purchases in Q3 2026 than all products combined in Q3 2025.
- For the twelve months ended September 30, 2026, marketing expense per acquired home decreased to $2.8 thousand from $6.5 thousand in the prior-year period.
- For the twelve months ended September 30, 2026, operations expense per acquired home decreased to $4.0 thousand from $6.3 thousand in the prior-year period.
- Mortgage originations increased over 400% quarter-over-quarter.
Concerns
- Gross profit was $38 million and gross margin was 3.7%, compared with $66 million and 7.2% in Q3 2025 and $86 million and 9.7% in Q2 2026.
- Net loss was $(218) million, compared with $(90) million in Q3 2025 and $(162) million in Q2 2026.
- The percentage of homes on the market for greater than 120 days increased from 9% to 18% quarter-over-quarter.
- The company stated it is currently behind its objective of reaching Adjusted Net Income positive by the end of 2026, measured on a twelve-month go-forward basis.
- Q4 guideposts call for Contribution Profit dollars to decline sequentially and an Adjusted EBITDA loss of $70 million to $85 million.
What to watch
- Q4 2026 revenue growth of at least 40% year-over-year.
- Q4 2026 Adjusted EBITDA loss of $70 million to $85 million.
- Whether Contribution Profit dollars decline sequentially as the company sells homes into what it described as a difficult market.
- Acquisition contract volume and resale closes reported through accountable.opendoor.com.
- Resale demand, pricing, and the pace at which homes go under contract.
- Progress toward Adjusted Net Income positive by the end of 2026, measured on a twelve-month go-forward basis.
Balance sheet and cash flow
- Cash and cash equivalents: $910 million at September 30, 2026, compared with $962 million at December 31, 2025.
- Restricted cash: $98 million at September 30, 2026, compared with $339 million at December 31, 2025.
- Cash, cash equivalents, and restricted cash: $1,008 million at September 30, 2026, compared with $1,301 million at the beginning of the period.
- Real estate inventory, net: $2,568 million at September 30, 2026, compared with $925 million at December 31, 2025.
- Asset-backed debt, current portion: $2,016 million at September 30, 2026, compared with $52 million at December 31, 2025.
- Asset-backed debt, net of current portion: $348 million at September 30, 2026, compared with $1,068 million at December 31, 2025.
- Convertible senior notes, current portion: $59 million at September 30, 2026, compared with $193 million at December 31, 2025.
- Convertible senior notes, net of current portion: $639 million at September 30, 2026, compared with $— at December 31, 2025.
- Net cash used in operating activities was $(1,796) million for the nine months ended September 30, 2026, including a $(1,703) million change in real estate inventory.
- Proceeds from asset-backed debt were $1,766 million and principal payments on asset-backed debt were $(526) million for the nine months ended September 30, 2026.
- Proceeds from issuance of convertible senior notes, net of discount were $650 million for the nine months ended September 30, 2026.
Analysis
Opendoor reported a sharp acceleration in Q3 acquisition activity. Revenue was $1,022 million, up 12% year-over-year and 16% quarter-over-quarter, while homes purchased rose 316% to 4,865. Homes sold increased to 2,728 from 2,568 a year earlier and 2,339 in Q2. Signed-acquisition market share was estimated at 0.56%, compared with 0.13% in Q3 2025. Management attributed acquisition growth to broader product choices, reduced friction, customer education, and Cash Now, More Later, which it said requires less capital upfront per home.
The growth came with significantly weaker reported gross economics. GAAP gross profit fell to $38 million from $66 million in Q3 2025 and $86 million in Q2, while GAAP gross margin fell to 3.7% from 7.2% and 9.7%, respectively. Contribution Profit improved year over year to $34 million from $20 million, but declined from $51 million in Q2. Contribution Margin was 3.3%, above 2.2% a year ago but below 5.8% in the prior quarter. The company expects Contribution Profit dollars to decline sequentially in Q4 as it prioritizes moving homes in a difficult market.
Operating leverage indicators improved on a trailing-twelve-month per-home basis. Marketing expense per acquired home fell to $2.8 thousand from $6.5 thousand, and operations expense per acquired home declined to $4.0 thousand from $6.3 thousand. Fixed operating expenses were $37 million, compared with $35 million in Q2 2026. However, total operating expenses were $225 million in Q3, and GAAP net loss widened to $(218) million from $(90) million a year earlier. Adjusted EBITDA was $(31) million, compared with $(33) million in Q3 2025 but $(4) million in Q2.
Inventory expansion and resale velocity remain central. Homes in inventory reached 7,596 and inventory reached $2,568 million at September 30, 2026, versus 3,139 homes and $1,053 million a year earlier. Homes listed for more than 120 days represented 18% of listed inventory, better than 51% a year earlier but up from 9% in Q2 and below the 30% level cited for the overall market. The nine-month cash flow statement showed $(1,796) million of cash used in operating activities, including a $(1,703) million change in real estate inventory, supported by $1,531 million of cash provided by financing activities.
For Q4, management expects revenue to grow at least 40% year-over-year and expects an Adjusted EBITDA loss of $70 million to $85 million, alongside approximately $90 million of stock-based compensation. The company said it is currently behind its objective of reaching Adjusted Net Income positive by the end of 2026 on a twelve-month go-forward basis. The key reported tension is that acquisition scale and per-home efficiency are improving while margin pressure, increasing inventory, negative operating cash flow, and a weaker Q4 Adjusted EBITDA outlook show the cost of selling through existing inventory in current market conditions.
Management, verbatim
It’s been one year since we embarked on Opendoor 2.0 and I’m more confident in this company today than I was a year ago. We’re building a stronger, more capable company for the long term.
Kaz Nejatian, CEO of Opendoor
We are handling that growth more efficiently. We’re automating more of the work, bringing more of the transaction together and making improvements to shared systems that carry across the business.
Kaz Nejatian, CEO of Opendoor
We’ve shown what focused execution can do for our seller funnel and our efficiency. We’re betting on ourselves to deliver the same change in resale.
Kaz Nejatian, CEO of Opendoor
Not in the filing
stated, not guessed- Prior outlook was not provided; no comparison of reported results with prior guidance is available.
- Free cash flow was not reported.
- Quarterly operating cash flow was not reported.
- No numerical Q4 acquisitions guidance was provided.
- No numerical Q4 Contribution Margin or Contribution Profit guidance was provided.
- No Q4 GAAP gross margin guidance was provided.
- No Q4 operating expense guidance was provided.
- No Q4 tax-rate guidance was provided.
- No GAAP reconciliation was provided for forecasted Contribution Profit, Contribution Margin, or Adjusted EBITDA.
- No individual reportable segment revenues were provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.