Opendoor: Profitability Improvements on Display

Research evidence excerpt

Opendoor: Profitability Improvements on Display

Deutsche Bank

Research

Rating Company Date

Hold Opendoor 13 May 2026

Forecast Change

North America

United States

Reuters Bloomberg Exchange Ticker Price at 11 May 2026 (USD) 4.85

OPEN.OQ OPEN US NSM OPEN

Price target 4.00

TMT

52-week range 10.52 - 0.51

Internet

Profitability Improvements on Display

Valuation & Risks

Kunal Madhukar, CFA

Opendoor reported 1Q26 revenue of $720mn, a 2% q/q decline, meaningfully better

Research Analyst

than its guidance of a ~10% sequential decline. We view the results as providing +1-212-250-9357

a broader set of proof-points that the "Opendoor 2.0" strategy is taking hold, with

cohort-after-cohort improvements in margin, margin stability, and resale velocity Benjamin Black, CFA

demonstrating the structural shift management has been focused on since 3Q25.

+1-212-250-9218

Near-term results continue to reflect this transition, as management prioritizes

rapid product innovation, operational efficiency, increased resale velocity, and Jeff Seiner, CFA

improved unit economics to achieve sustainable profitability independent of Research Associate

housing market cycles. The two key metrics we are watching: 1) scaling home +1-212-250-8153

acquisitions, increasingly through the "Cash Now, More Later" product (now Benjamin Hui, Esq.

over one-third of 1Q26 acquisition contracts) and a buybox that spans the lower Research Associate

48 states, which enables additional scale without compromising on home quality, +1-212-250-2064

and 2) increasing resale velocity to insulate the company from macro swings and Raymond Wong

reduce holding costs in its push towards profitability. We come away Research Associate

incrementally more positive on the strategy, as we view 1Q26 as the first full +1-212-250-2060