Opendoor (NASDAQ:OPEN) Surprises With Strong Q1, Stock Soars
Technology real estate company Opendoor (NASDAQ:OPEN) announced better-than-expected revenue in Q1 CY2025, but sales fell by 2.4% year on year to $1.15 billion. Guidance for next quarter's revenue was optimistic at $1.49 billion at the midpoint, 2.5% above analysts' estimates. Its GAAP loss of $0.12 per share was 7.7% above analysts' consensus estimates.
Is now the time to buy Opendoor? Find out in our full research report.
Opendoor (OPEN) Q1 CY2025 Highlights:
Revenue: $1.15 billion vs analyst estimates of $1.05 billion (2.4% year-on-year decline, 9.3% beat)
EPS (GAAP): -$0.12 vs analyst estimates of -$0.13 (7.7% beat)
Adjusted EBITDA: -$30 million vs analyst estimates of -$44.02 million (-2.6% margin, 31.8% beat)
Revenue Guidance for Q2 CY2025 is $1.49 billion at the midpoint, above analyst estimates of $1.45 billion
EBITDA guidance for Q2 CY2025 is $15 million at the midpoint, above analyst estimates of -$12.29 million
Operating Margin: -4.9%, up from -7.4% in the same quarter last year
Free Cash Flow was -$283 million compared to -$186 million in the same quarter last year
Homes Sold: 2,946, down 132 year on year
Market Capitalization: $538.7 million
'We've spent the last decade building a modern real estate platform—designed to deliver simplicity, certainty, and a customer-first experience. We entered 2025 with a clear plan to drive toward profitability while strengthening our product experience and platform. Our first-quarter results reflect disciplined execution: we improved Adjusted EBITDA and sharply reduced Adjusted Net Losses,' said Carrie Wheeler, CEO of Opendoor.
Company Overview
Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.
Sales Growth
A company's long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Opendoor struggled to consistently increase demand as its $5.13 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn't a great result and is a sign of poor business quality.
Opendoor Quarterly Revenue
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Opendoor's recent performance shows its demand remained suppressed as its revenue has declined by 38.5% annually over the last two years.
Opendoor Year-On-Year Revenue Growth
We can dig further into the company's revenue dynamics by analyzing its number of homes sold, which reached 2,946 in the latest quarter. Over the last two years, Opendoor's homes sold averaged 27.9% year-on-year declines. Because this number is higher than its revenue growth during the same period, we can see the company's monetization has fallen.

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