Residential real estate e-commerce platform Opendoor Technologies Inc. has reported its Q2 financial results, with the company posting revenue of $1.6 billion, up 5% compared to 2Q24.
Opendoor also issued its Q3 revenue guidance of $800 million to $875 million, which falls short of Wall Street expectations and represents a decline of at least 36% from the previous year.
Opendoor said it expects to acquire just 1,200 homes in the third quarter, down from 1,757 in the second quarter.
The company stated, “With mortgage rates hovering in the high 6% range and affordability near all-time lows, buyer demand remains persistently weak. Only 12% of consumers expressed that it is a good time to buy a home, and sellers currently outnumber buyers by the widest margin in over a decade. This has led to low clearance rates, decade high delistings, and gave rise to the slowest spring selling season in thirteen years. We expect these trends to continue to weigh on the housing market through the second half of the year.”
In a letter to shareholders, Carrie Wheeler, Chair and CEO of Opendoor, addressed investors:
“This performance reflects deliberate choices: heavier marketing spend in 4Q24 and 1Q25 to align with resale seasonality, and wider offer spreads in 2Q25 to manage risk in a volatile market… While our full quarter performance was strong, we observed a consistent slowing of the housing market as the quarter progressed. In response, we further raised spreads, exiting the quarter with a materially lower acquisition pace than we entered, which will impact our second half outlook.”
Looking ahead, Wheeler said: “We believe housing market weakness will persist, and we are not assuming any near-term catalyst for improvement. We expect to see sequential acquisition and resale volume declines driven by a combination of macro dynamics, typical seasonal patterns in our cash offer business, and the early-stage nature of our platform pivot, which will take time to mature. We are transitioning our business model during a historically difficult macro environment – the benefits of this evolution will take time to materialize.”
After the announcement, the company’s stock fell by 20%, driven by the lowered Q3 outlook, which did not support the turnaround story that investors, who had recently boosted the stock, were expecting.
By CEO NA Editorial Staff
