Opendoor Technologies (OPEN) investor relations material

Executive summary

• Achieved the highest acquisition contract volume since 2022, with Q1 2026 marking the strongest contract quarter since Q2 2022 and a 45% quarter-over-quarter increase in homes purchased.

• Margins improved for six consecutive months, with Q1 closing at a 4.4% contribution margin, up 3.4 points quarter-over-quarter, and gross margin rising to 10.0% from 8.6% year-over-year.

• Aged inventory reduced from 51% in Q3 2025 to 10% in Q1 2026, indicating faster resale velocity and improved inventory health.

• Net loss widened to $173 million from $85 million year-over-year, reflecting higher stock-based compensation and lower transaction volumes.

• The company is executing a strategy focused on speed, operational discipline, and AI-driven process enhancements, resulting in healthier inventory and faster resale velocity.

Financial highlights

• Q1 2026 revenue was $720 million, down 38% year-over-year due to lower sales volumes and inventory entering the quarter.

• Contribution margin reached 4.4%, down from 4.7% year-over-year, mainly due to higher direct selling costs.

• Adjusted EBITDA was $(31) million, with an adjusted EBITDA margin of (4.3)%.

• Fixed operating expenses were $33 million in Q1, down $2 million quarter-over-quarter and $6 million year-over-year.

• Ended Q1 with $999 million in unrestricted cash and $1.1 billion in net inventory.

Outlook and guidance

• Expect to be Adjusted EBITDA profitable on a 12-month go-forward basis starting in Q2 2026, with Q2 revenue projected to grow approximately 25% quarter-over-quarter.

• Contribution margin for Q2 expected in the 5%-7% target range.

• Q2 Adjusted EBITDA expected to be break-even, plus or minus a few million dollars.

• Targeting adjusted net income positive by end of 2026 on a 12-month forward basis.

• Management expects continued market uncertainty due to elevated mortgage rates and affordability challenges.