Opendoor Announces Fourth Quarter and Full Year 2024 Financial Results

SAN FRANCISCO, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Opendoor Technologies Inc. (Nasdaq: OPEN), a leading e-commerce platform for residential real estate transactions, today reported financial results for its fourth quarter and year ended December 31, 2024. Opendoor’s fourth quarter and year-end 2024 financial results and management commentary can be accessed through the Company’s shareholder letter on the “Quarterly Reports” page of Opendoor’s investor relations website at https://investor.opendoor.com/financials-filings/quarterly-reports.

"In 2024, we took decisive actions to streamline operations and optimize our cost structure to better position the Company to navigate the persistent housing market headwinds and drive toward our longer-term profitability target. As a result, we significantly reduced Adjusted Net Losses in the fourth quarter and for the year while delivering year-over-year revenue growth and improvements to Contribution Profit and Adjusted EBITDA," said Carrie Wheeler, CEO of Opendoor.

Wheeler continued, "We enter 2025 as a leaner, more efficient business, focused on reaching sustained profitability in the coming years as we further monetize our seller funnel and build a company that can thrive despite real estate headwinds. As the largest digital platform for home sellers, we remain committed to strengthening our position as the simplest, most certain way to sell a home."

Full Year 2024 Key Highlights

• Revenue of $5.2 billion, down (26)% versus 2023; with 13,593 total homes sold, down (27)% versus 2023

• Gross profit of $433 million, versus $487 million in 2023; Gross Margin of 8.4% versus 7.0% in 2023

• Net loss of $(392) million, versus $(275) million in 2023

• Purchased 14,684 homes, versus 11,246 homes in 2023 Non-GAAP Key Highlights*

• Contribution Profit (Loss) of $242 million, versus $(258) million in 2023Contribution Margin of 4.7%, versus (3.7)% in 2023

• Adjusted EBITDA of $(142) million, versus $(627) million in 2023; Adjusted EBITDA Margin of (2.8)%, versus (9.0)% in 2023

• Adjusted Net Loss of $(258) million, versus $(778) million in 2023 *See “—Use of Non-GAAP Financial Measures” below for further details and a reconciliation of such non-GAAP measures to their nearest comparable GAAP measures.

Fourth Quarter 2024 Key Highlights

• Revenue of $1.1 billion, up 25% versus 4Q23 and down (21)% versus 3Q24; with 2,822 total homes sold, up 19% versus 4Q23 and down (22)% versus 3Q24

• Gross profit of $85 million, versus $72 million in 4Q23 and $105 million in 3Q24; Gross Margin of 7.8%, versus 8.3% in 4Q23 and 7.6% in 3Q24

• Net loss of $(113) million, versus $(91) million in 4Q23 and $(78) million in 3Q2

• Inventory balance of $2.2 billion, representing 6,417 homes, up 22% versus 4Q23 and up 1% versus 3Q24

• Purchased 2,951 homes, down (20)% versus 4Q23 and down (16)% versus 3Q24

• Ended the quarter with 1,705 homes under contract for purchase, down (19)% versus 4Q23 and up 69% versus 3Q24 Non-GAAP Key Highlights*

• Contribution Profit of $38 million, versus $30 million in 4Q23 and $52 million in 3Q24; Contribution Margin of 3.5%, versus 3.4% in 4Q23 and 3.8% in 3Q24

• Adjusted EBITDA of $(49) million, versus $(69) million in 4Q23 and $(38) million in 3Q24; Adjusted EBITDA Margin of (4.5)%, versus (7.9)% in 4Q23 and (2.8)% in 3Q24

• Adjusted Net Loss of $(77) million, versus $(97) million in 4Q23 and $(70) million in 3Q24 *See “—Use of Non-GAAP Financial Measures” below for further details and a reconciliation of such non-GAAP measures to their nearest comparable GAAP measures.

First Quarter 2025 Financial Outlook

• 1Q25 revenue guidance of $1.0 billion to $1.075 billion

• 1Q25 Contribution Profit¹ guidance of $40 million to $50 million

• 1Q25 Adjusted EBITDA¹ guidance of $(50) million to $(40) million Conference Call and Webcast Details Opendoor will host a conference call to discuss its financial results on February 27, 2025, at 2:00 p.m. Pacific Time. A live webcast of the call can be accessed from Opendoor’s Investor Relations website at https://investor.opendoor.com. An archived version of the webcast will be available from the same website after the call.

About Opendoor Opendoor is a leading e-commerce platform for residential real estate transactions whose mission is to power life’s progress, one move at a time. Since 2014, Opendoor has provided people across the U.S. with a simple and certain way to sell and buy a home. Opendoor is a team of problem solvers, innovators, and operators who are leading the future of real estate. Opendoor currently operates in markets nationwide.

For more information, please visit www.opendoor.com

Forward Looking Statements This press release contains certain forward-looking statements within the meaning of Section 27A the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking, including statements regarding the current and future health and stability of the real estate housing market and general economy; anticipated future results of operations and financial performance, including our first quarter and full-year 2025 financial outlook; our ability to operate efficiently, optimize our cost structure, and drive sustained profitability in a challenging housing and macroeconomic market; our ability to realize cost savings as a result of certain streamlining initiatives; our product offerings and ability to monetize our seller funnel; the future health and status of our financial condition; our ability to strengthen our competitive position as the simplest, most certain way to sell a home; and our business strategy and plans, including plans to continue to invest in and enhance our products. These forward-looking statements generally are identified by the words “anticipate”, “believe”, “contemplate”, “continue”, “could”, “estimate”, “expect”, “forecast”, “future”, “guidance”, “intend”, “may”, “might”, “opportunity”, “outlook”, “plan”, “possible”, “potential”, “predict”, “project”, “should”, “strategy”, “strive”, “target”, “vision”, “will”, or “would”, any negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. The factors that could cause or contribute to actual future events to differ materially from the forward-looking statements in this press release include but are not limited to: the current and future health and stability of the economy, financial conditions and residential housing market, including any extended downturns or slowdowns; changes in general economic and financial conditions (including federal monetary policy, the imposition of tariffs and price or exchange controls, interest rates, inflation, actual or anticipated recession, home price fluctuations, and housing inventory), as well as the probability of such changes occurring, that may impact demand for our products and services, lower our profitability or reduce our access to future financings; actual or anticipated fluctuations in our financial condition and results of operations; changes in projected operational and financial results; our real estate assets and increased competition in the U.S. residential real estate industry; our ability to operate and grow our core business products, including the ability to obtain sufficient financing and resell purchased homes; investment of resources to pursue strategies and develop new products and services that may not prove effective or that are not attractive to customers and/or partners or that do not allow us to compete successfully; our ability to acquire and resell homes profitably; our ability to grow market share in our existing markets or any new markets we may enter; our ability to manage our growth effectively; our ability to expeditiously sell and appropriately price our inventory; our ability to access sources of capital, including debt financing and securitization funding to finance our real estate inventories and other sources of capital to finance operations and growth; our ability to maintain and enhance our products and brand, and to attract customers; our ability to manage, develop and refine our digital platform, including our automated pricing and valuation technology; our ability to realize expected benefits from our restructuring and cost reduction efforts; our ability to comply with multiple listing service rules and requirements to access and use listing data, and to maintain or establish relationships with listings and data providers; our ability to obtain or maintain licenses and permits to support our current and future business operations; acquisitions, strategic partnerships, joint ventures, capital-raising activities or other corporate transactions or commitments by us or our competitors; actual or anticipated changes in technology, products, markets or services by us or our competitors; our ability to protect our brand and intellectual property; our success in retaining or recruiting, or changes required in, our officers, key employees and/or directors; the impact of the regulatory environment and potential regulatory instability associated with the new U.S. presidential administration within our industry and complexities with compliance related to such environment; any future impact of pandemics, epidemics, or other public health crises on our ability to operate, demand for our products and services, or general economic conditions; changes in laws or government regulation affecting our business; and the impact of pending or future litigation or regulatory actions. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described under the caption “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on or about February 27, 2025, as updated by our periodic reports and other filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We do not give any assurance that we will achieve our expectations.

Contact Information

Investors: investors@opendoor.com

Media: press@opendoor.com