Opendoor Technologies Inc. (NASDAQ: OPEN) saw continued share price volatility on Tuesday, extending a turbulent period following its second-quarter earnings release and heightened public criticism of CEO Carrie Wheeler. The stock, which has a 52-week high of $4.97 and a low of $0.51, is up roughly 45% year-to-date and trades about 83.6% above its 50-day simple moving average, , reflecting investor reactions to recent Opendoor profit figures.
Q2 Financial Performance
For the second quarter, Opendoor reported $1.6 billion in revenue, up 4% from the prior year and 36% from Q1. This marked the company’s first quarter of adjusted EBITDA profitability since 2022, despite Wheeler noting that U.S. housing market conditions “continued to deteriorate.”
The company sold 4,299 homes during the quarter, with Opendoor profit totaling $128 million—slightly below last year’s $129 million but ahead of the $99 million posted in Q1. Net loss narrowed to $29 million compared with $92 million a year ago. On a non-GAAP basis, contribution profit came in at $69 million, adjusted net loss at $9 million, and adjusted EBITDA at $23 million, compared with a $5 million loss last year.
Inventory and Market Trends
Opendoor ended the quarter with $1.5 billion in inventory, or 4,538 homes—down 32% year-over-year. Home purchases dropped 63% to 1,757, while homes under contract for purchase declined 78% to 393. The company continues to face a “very challenging” housing market, with lower clearance rates and record delistings impacting transaction volume.
Guidance and Strategic Shift
For Q3, Opendoor projects revenue between $800 million and $875 million, contribution profit of $22 million to $29 million, and adjusted EBITDA in the range of a $28 million to $21 million loss. Management has reiterated its focus on shifting toward a more capital-light, agent-led model to navigate market volatility.
Investor and Analyst Reaction
Ahead of the earnings release, investor Eric Jackson criticized Wheeler for comments made in a Bloomberg interview, claiming she was dismissive toward retail investors. He credited retail shareholder support with helping the company regain Nasdaq compliance and cancel a proposed 50-to-1 reverse stock split, emphasizing that sustained Opendoor profit is closely tied to retail investor confidence.
Co-founder Keith Rabois also voiced strong criticism, labeling Wheeler “utterly incompetent” and arguing that tech companies “should never be led by CFOs.”
Following the earnings report and public remarks, shares fell 24.6% to $1.90 last Wednesday before edging 0.01% higher in after-hours trading. On Tuesday, the stock gained 2.65% to $2.37 in midday trading. Analysts remain focused on whether Opendoor profit trends can be sustained as the company aims to maintain profitability while executing its strategic pivot in an unfavorable housing environment.
Visit Enterprise Wired for the most recent information.
