Latest news with #Opendoor
Yahoo
4 days ago
- Business
- Yahoo
Opendoor Announces Preliminary Proxy Filing Seeking Approval for Discretionary Reverse Stock Split
SAN FRANCISCO, June 06, 2025 (GLOBE NEWSWIRE) -- Opendoor Technologies Inc. (Nasdaq: OPEN) (the 'Company,' 'Opendoor,' 'we,' 'our' or 'us'), a leading e-commerce platform for residential real estate transactions, filed a preliminary proxy statement. The proxy statement was furnished in connection with the solicitation of proxies by Opendoor's Board of Directors (the 'Board') for use at the Company's Special Meeting of Stockholders to be held on Monday, July 28, 2025, at 9:30 a.m. Pacific Time. Our Board has adopted and is recommending that our stockholders approve amendments to our Certificate of Incorporation, to effect a reverse stock split of our common stock ('Common Stock') at a ratio ranging from any whole number between 1‑for‑10 and 1‑for‑50, with the exact ratio within such range to be determined by the Board in its discretion (the 'Reverse Stock Split'), subject to the Board's authority to determine when to file the amendment and to abandon the other amendments notwithstanding prior stockholder approval of such amendments. 'This proposal is intended to support long-term shareholder value and give us optionality in preserving our listing on Nasdaq,' said Selim Freiha, CFO of Opendoor. 'We're grateful for the continued support of our shareholders, and remain focused on building a durable, technology-driven platform that powers life's progress, one move at a time.' The Board's decision as to whether and when to effect the Reverse Stock Split will be based on a number of factors, including market conditions, the historical, then‑existing and expected trading price of our Common Stock, the anticipated impact of the Reverse Stock Split on the trading price of our Common Stock and on the number of holders of our Common Stock, and the continued listing requirements of The Nasdaq Global Select Market. Although our stockholders may approve the Reverse Stock Split, we will not effect the Reverse Stock Split if the Board does not deem it to be in the best interests of the Company and its stockholders. For additional information regarding the Company's Special Meeting of Stockholders, please see the Company's preliminary proxy statement on Schedule 14A, filed with the Securities and Exchange Commission on June 6, 2025. 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 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 implementation of any Reverse Stock Split, if approved by stockholders, our compliance with listing requirements for the Nasdaq Global Select Market, our efforts to support long-term stockholder value and the Company's business strategy and mission. 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 Company's ability to comply with the continued listing requirements of the Nasdaq Global Select Market; risks associated with the Company's indebtedness and capital structure; 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 impact demand for the Company's products and services, lower the Company's profitability or reduce its access to future financings; actual or anticipated fluctuations in the Company's financial condition and results of operations; the Company's ability to access sources of capital, including debt financing and securitization funding to finance its real estate inventories and other sources of capital to finance operations and growth. 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 the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the 'SEC') on February 27, 2025, as updated by its 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, the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. The Company does not give any assurance that it will achieve its expectations. Additional Information and Where to Find It The Company intends to file with the SEC a definitive proxy statement on Schedule 14A with respect to its solicitation of proxies for the Special Meeting of Stockholders described above. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ CAREFULLY AND IN THEIR ENTIRETY THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) FILED BY THE COMPANY AND ANY OTHER RELEVANT DOCUMENTS TO BE FILED WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE SOLICITATION. Investors and security holders may obtain copies of these documents and other documents filed with the SEC by the Company free of charge through the website maintained by the SEC at Copies of the documents filed by the Company are also available free of charge by accessing the Company's website at Participants in the Solicitation The Company, its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies with respect to a solicitation by the Company. Information about the Company's executive officers and directors is available in the Company's Definitive Proxy Statement for its 2025 Annual Meeting of Stockholders, which was filed with the SEC on April 25, 2025. To the extent holdings by our directors and executive officers of the Company securities reported in the Definitive Proxy Statement for the 2025 Annual Meeting of Stockholders have changed, such changes have been or will be reflected on Statements of Change in Ownership on Forms 3, 4 or 5 filed with the SEC. These documents are available free of charge at the SEC's website at Copies of the documents filed by the Company are also available free of charge by accessing the Company's website at Contact Information Investors:investors@ Media:press@
Yahoo
26-05-2025
- Business
- Yahoo
3 Out-of-Favor Stocks Facing Headwinds
Hitting a new 52-week low can be a pivotal moment for any stock. These floors often mark either the beginning of a turnaround story or confirmation that a company faces serious headwinds. Price charts only tell part of the story. Our team at StockStory evaluates each company's underlying fundamentals to separate temporary setbacks from structural declines. That said, here are three stocks where the skepticism is well-placed and some better opportunities to consider. One-Month Return: -12.3% Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes. Why Do We Steer Clear of OPEN? Number of homes purchased has disappointed over the past two years, indicating weak demand for its offerings Cash-burning history makes us doubt the long-term viability of its business model Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders At $0.68 per share, Opendoor trades at 0.1x forward price-to-sales. To fully understand why you should be careful with OPEN, check out our full research report (it's free). One-Month Return: -13.6% Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ:LANC) sells bread, dressing, and dips to the retail and food service channels. Why Does LANC Fall Short? Muted 5.4% annual revenue growth over the last three years shows its demand lagged behind its consumer staples peers Smaller revenue base of $1.89 billion means it hasn't achieved the economies of scale that some industry juggernauts enjoy Estimated sales growth of 1.7% for the next 12 months implies demand will slow from its three-year trend Lancaster Colony's stock price of $164 implies a valuation ratio of 23.2x forward P/E. Check out our free in-depth research report to learn more about why LANC doesn't pass our bar. One-Month Return: -1.4% Originally a pioneering technology publisher founded in 1927 that became famous for PC Magazine, Ziff Davis (NASDAQ:ZD) operates a portfolio of digital media brands and subscription services across technology, shopping, gaming, healthcare, and cybersecurity markets. Why Should You Sell ZD? Sales stagnated over the last five years and signal the need for new growth strategies Sales over the last five years were less profitable as its earnings per share fell by 1.6% annually while its revenue was flat Free cash flow margin dropped by 17.6 percentage points over the last five years, implying the company became more capital intensive as competition picked up Ziff Davis is trading at $30.41 per share, or 4.3x forward P/E. Read our free research report to see why you should think twice about including ZD in your portfolio, it's free. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-05-2025
- Business
- Yahoo
OPEN Q1 Earnings Call: Asset-Light Expansion and Cost Discipline Amid Housing Headwinds
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. On the other hand, next quarter's revenue guidance of $1.49 billion was less impressive, coming in 0.8% below analysts' estimates. Its non-GAAP loss of $0.09 per share was 15.9% above analysts' consensus estimates. Is now the time to buy OPEN? Find out in our full research report (it's free). Revenue: $1.15 billion vs analyst estimates of $1.05 billion (2.4% year-on-year decline, 9.3% beat) Adjusted EPS: -$0.09 vs analyst estimates of -$0.10 (15.9% 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, below analyst estimates of $1.5 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: $571.7 million Opendoor's first quarter results were shaped by persistent challenges in the U.S. housing market, including elevated mortgage rates and reduced transaction volumes. Management pointed to increased caution among both buyers and sellers, with CEO Carrie Wheeler citing a 25% drop in clearance rates and a 30% increase in home delistings. Despite these headwinds, the company focused on driving profitability through operational efficiency and disciplined pricing, while also investing in product improvements and technology to enhance customer experience. Looking ahead, management acknowledged continued macroeconomic uncertainty and signaled a cautious approach for the remainder of the year. CFO Selim Freiha highlighted plans to prioritize margin improvement over top-line growth, with expectations of lower acquisitions and a sharp reduction in marketing spend in the next quarter. Wheeler described the current strategy as 'a prudent approach' given market volatility, emphasizing readiness to adjust should conditions improve. Opendoor's leadership identified several operational shifts and market trends that influenced Q1 results, as well as strategic changes designed to support long-term growth and profitability. Channel strategy evolution: The company is piloting an expanded agent partnership model in 11 markets, transitioning from a primarily direct-to-consumer approach to one that integrates agents earlier in the seller journey. This aims to improve conversion rates by providing sellers with more tailored advice and potentially driving more asset-light revenue streams. Pricing discipline in uncertain markets: Management increased transaction spreads—a measure of pricing risk—despite a resulting slowdown in home acquisitions. This move was made to protect contribution margins in the face of ongoing market volatility. Product and technology enhancements: Opendoor refined its pricing algorithms with new features, such as incorporating school district quality and local competition, to improve the accuracy of offers and conversion performance. Cost structure optimization: Fixed operating expenses were reduced by $19 million year over year, reflecting a 33% reduction as part of a broader effort to align the business with lower housing market activity. Additional efficiency opportunities are under review. Marketing spend realignment: The company shifted its advertising strategy to better match seasonal housing trends and higher spread levels, resulting in a planned significant decline in marketing expenses for Q2. This is intended to preserve capital and drive spend efficiency. Management's outlook for the next quarter and the year is anchored in continued macroeconomic caution, with a focus on margin improvement, operational efficiency, and expanding asset-light revenue streams. Market uncertainty and demand: Persistently high mortgage rates and seller hesitation are expected to limit housing activity, influencing acquisition pace and inventory management decisions. Asset-light channel expansion: The pilot agent partnership program is designed to drive incremental revenue with lower capital requirements, though its full impact will depend on conversion rates and customer adoption. Cost control as a priority: Management indicated further cost discipline, particularly in marketing and fixed operating expenses, as a key lever to support margin improvements even if revenue growth slows. Dae Lee (J.P. Morgan): Asked whether the reduced acquisition pace in Q2 represents a new normal or is temporary. Management expects typical seasonal patterns, with a sequential decline in Q2 and a potential ramp-up in Q4. Ygal Arounian (Citigroup): Inquired about the health and valuation of older inventory under current market softness. Management responded that margin degradation for older homes is factored into outlooks, with newer acquisitions starting at higher margins. Ygal Arounian (Citigroup): Sought clarity on the agent partnership model's differences versus past products and its intended mix. CEO Carrie Wheeler emphasized the pilot's early stage and flexibility in serving different customer preferences. Ryan Tomasello (KBW): Asked about the breakdown of operating expense reductions, specifically the role of lower marketing spend. Management confirmed that most of the reduction is intentional and seasonal in nature, with some ongoing fixed-cost savings. Benjamin Black (Deutsche Bank): Questioned the signals Opendoor is monitoring for a broader rollout of agent partnerships and the readiness of infrastructure. Management cited conversion rates and customer engagement as key signals and described the company as prepared for scaling. In coming quarters, the StockStory team will watch (1) the impact of the agent partnership pilot on conversion rates and revenue mix, (2) Opendoor's ability to sustain margin improvements through disciplined pricing and cost control, and (3) how the company manages inventory and acquisitions amid ongoing housing market volatility. The success of new asset-light revenue streams and continued operational efficiency will be critical indicators. Opendoor currently trades at a forward price-to-sales ratio of 0.1×. Should you load up, cash out, or stay put? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-05-2025
- Business
- Yahoo
Why Opendoor Technologies Stock Was Tumbling Today
Opendoor is refinancing and taking on new convertible debt. The company appears to be a long way from profitability. It burned nearly $700 million in operating cash flow over the last four quarters. 10 stocks we like better than Opendoor Technologies › Shares of Opendoor Technologies (NASDAQ: OPEN), the leading online home flipper, were falling today after the company said it was refinancing convertible debt and taking on new debt, which seems to confirm that the company is struggling to turn profitable, as we saw in its first-quarter earnings report. As of 1:57 p.m. ET, the stock was down 18.9%. In a filing, the company said it was refinancing $245.8 million in 2026 notes with notes due in 2030, with an interest rate of 7%. It's also raising an additional $79.2 million in new debt at 7% as well. The conversion price will be $1.57 per share, an 80% premium to its closing price yesterday, meaning that the debt can be converted at a price equivalent to $1.57, though the bondholders would only convert if Opendoor's price went above that. Such a conversion would lead to substantial dilution for Opendoor, as its current market cap is just $515.8 million. The debt refinancing isn't necessarily a bad thing for Opendoor, as it gives the company more financial flexibility and capital, and pushes out the 2026 debt repayment. However, it does show that the company is operating from a weak financial position, and a profitable future increasingly seems distant, given its inability to generate a profit so far and the weakness in the housing market. The company finished its first quarter with $559 million in cash and has lost $696 million in operating cash flow in the last four quarters, showing its cash burn rate is substantial. Despite its low price, the stock could easily head lower. Before you buy stock in Opendoor Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Opendoor Technologies wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $617,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $719,371!* Now, it's worth noting Stock Advisor's total average return is 909% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 5, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Opendoor Technologies Stock Was Tumbling Today was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-05-2025
- Business
- Yahoo
Opendoor Technologies Inc. (OPEN): A Bull Case Theory
We came across a bullish thesis on Opendoor Technologies Inc. (OPEN) on Substack by LongYield. In this article, we will summarize the bulls' thesis on OPEN. Opendoor Technologies Inc. (OPEN)'s share was trading at $0.872 as of May 7th. A real estate agent overviewing a portfolio of houses in the city. Opendoor Technologies Inc. (OPEN), a pioneer in e-commerce for residential real estate, reported its Q1 2025 results amid a tough housing environment defined by high mortgage rates, weak buyer demand, and elevated delistings. Operating in 50 U.S. markets since 2014, Opendoor has retooled its strategy to maintain stability and edge closer to profitability. With mortgage rates nearing 7%, transaction volumes have slowed, forcing the company to adapt. Opendoor responded by increasing spreads to preserve margins, even if it meant acquiring fewer homes. This discipline is underpinned by refined pricing algorithms and targeted marketing, helping the company adjust to seasonal and regional market conditions. At the same time, Opendoor is piloting an agent partnership model in 11 markets, referring sellers to vetted agents who can offer both cash and traditional listings. This initiative is designed to improve conversion rates and drive asset-light commission-based revenue, reducing inventory risk while broadening the company's service offerings. This strategic evolution marks Opendoor's shift from a cash-offer platform to a broader selling options platform. Leadership emphasized adaptability on the earnings call, striking a balance between caution and long-term optimism. Financially, Q1 2025 showed signs of resilience: revenue held steady at $1.2 billion, up 6% sequentially, while home acquisitions rose 4% year-over-year to 3,609. Contribution profit landed at $54 million (4.7% margin), down slightly from the prior year, but the adjusted EBITDA loss narrowed to $30 million from $50 million, driven by reduced operating expenses. Fixed costs fell 33% year-over-year, from $58 million to $39 million, reflecting the company's focus on lean operations. Opendoor's liquidity remains strong, with $559 million in unrestricted cash and $1 billion in total capital. Its $7.9 billion in nonrecourse asset-backed borrowing capacity—$2.3 billion of which is committed—offers significant financial flexibility, bolstered by recently renewed facilities running through at least 2027. Looking ahead, Opendoor's Q2 2025 guidance reflects cautious progress. It expects $1.45–$1.525 billion in revenue and positive adjusted EBITDA of $10–$20 million—its first in three years. Contribution profit is forecast at $65–$75 million with stable margins. However, home acquisitions will fall to ~1,700, reflecting wider spreads and reduced marketing spend, measures intended to protect capital but which may limit top-line growth later in the year. Still, Opendoor's post-earnings stock surge of 9.37% signals investor confidence in its path to profitability. Analysts offered mixed reviews: some, like Citi, cut price targets due to persistent macro headwinds and a 69% year-over-year stock decline, while others acknowledged the company's cost discipline and strategic adaptability. The agent partnership pilot and continued technology investment—including faster offer delivery and better user interfaces—position Opendoor to scale more efficiently. Yet risks remain: elevated rates, potential home price declines (especially in the South), and economic policy changes could challenge execution. Nevertheless, Opendoor's strategic realignment, robust liquidity, and operational tightening paint a picture of a company that, while cautious, is actively positioning itself for long-term relevance. As the U.S. housing market finds its footing, Opendoor stands out as a leaner, smarter platform well-poised to capitalize on future recovery. Opendoor Technologies Inc. (OPEN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 20 hedge fund portfolios held OPEN at the end of the fourth quarter which was 13 in the previous quarter. While we acknowledge the risk and potential of OPEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than OPEN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
