OPEN · Opendoor Technologies Inc.

Opendoor's Q1 2026 results reflect a company in transition, with revenue declining 38% year-over-year to $720 million, but gross margin improving to 10.0% from 8.6% a year ago. The net loss widened to $173 million from $85 million, partly due to higher operating expenses, including a $137 million general and administrative line (which includes a CEO make-whole provision). On a non-GAAP basis, contribution margin was 4.4%, down slightly from 4.7% a year ago but up sharply from 1.0% in Q4 2025, as the company highlighted that contribution margin improved every month since September 2025. Management emphasized a structural shift in cohort performance: the 4Q25 and January 2026 cash acquisition cohorts are the best in company history (ex-COVID), with faster resale velocity and better margin stability. Aged inventory (homes on market over 120 days) fell from 33% to 10% quarter-over-quarter, while acquisition contracts doubled to over 5,000, the highest since 2022. Fixed operating expenses declined to $33 million from $35 million in Q4 2025 and $39 million a year ago. For Q2 2026, the company guided for revenue growth of approximately 25% quarter-over-quarter, contribution margin in the middle of its 5-7% target range, and adjusted EBITDA breakeven (plus or minus a few million). The company also reiterated its goal of achieving adjusted net income positive by the end of 2026 on a 12-month go-forward basis. The earnings release and supplemental materials were furnished under Items 2.02 and 7.01 and are not deemed filed for SEC purposes.