Opendoor (OPEN) Earnings Preview: Challenges Persist in Tough Housing Market
Opendoor Technologies (OPEN) faces a critical test as it prepares to report Q3 earnings on November 6. Analysts project an $0.08 per share loss on $849.6 million revenue—a marked improvement from last year's $0.11 loss but with significantly reduced top-line performance. The iBuying platform's first EBITDA-positive quarter in three years ($23M) contrasts sharply with its guidance for $21-$28M EBITDA losses this quarter.
Mortgage rates above 7% continue depressing homebuyer demand, forcing Opendoor to scale back acquisitions to just 1,200 homes. Management's 2.8-3.3% contribution margin target suggests razor-thin operational buffers. While the company has beaten earnings for 10 consecutive quarters, macroeconomic headwinds may outweigh execution improvements this cycle.
