Opendoor's Agent-Led Platform Gains Traction: Can Margins Keep Up?

Opendoor Technologies OPEN is executing its strategic shift — transforming from a single-product iBuyer into a distributed platform that empowers agents to deliver its offerings directly to sellers. The model introduces multiple selling paths: a cash offer, a traditional listing, or a hybrid “Cash Plus” option. Early pilots are showing traction, with 2x more customers reaching a final underwritten cash offer compared to the company’s traditional funnel and listing conversion rates 5x higher.

Opendoor is of the opinion that this platform approach is a win-win: sellers gain flexibility, agents earn commissions, and the company monetizes more leads while leaning into capital-light, high-margin revenue streams. Its new Key Agent iOS app allows for in-home assessments that enrich pricing intelligence while reinforcing trust with sellers. Cash Plus stands out as a risk-adjusted product that provides immediate liquidity to homeowners while reducing Opendoor’s capital exposure. 

While the company warns of macro headwinds and seasonality pressuring volumes in the near term, management is positioning this platform as the flywheel that could scale its business model for long term growth.

How It Stacks Up to Competitors

Offerpad Solutions Inc. OPAD is pursuing a disciplined, inventory-focused model that prioritizes profitability over rapid expansion. In the second quarter of 2025, the company reported $285 million in revenues, down 24% year over year, but maintained contribution margins at 7.3% — above its targeted range. Offerpad’s strategy centers on tighter spreads and selective acquisitions, with less emphasis on external distribution. This conservative approach positions Offerpad to weather macro headwinds, though it lacks the scalable agent-led reach Opendoor is piloting.

Zillow Group Inc. Z, in contrast, has moved away from direct home acquisitions and doubled down on its Premier Agent marketplace. In the second quarter of 2025, Premier Agent revenues rose 12% year over year, supported by AI-driven tools that improve lead conversion and agent productivity. Zillow leverages its unmatched consumer traffic to funnel high-quality leads into its agent ecosystem, creating a capital-light model with durable monetization. While Zillow’s strategy shares similarities with Opendoor’s distributed platform — particularly in its agent-first orientation — its edge lies in audience scale rather than transaction infrastructure.

OPEN’s Stock Price Performance, Valuation & Estimates

Shares of Opendoor have skyrocketed 573.1% in the past three months compared with the industry’s growth of 10.5%.

From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 0.62X, significantly below the industry’s average of 5.65X.

The Zacks Consensus Estimate for OPEN’s 2025 earnings per share (EPS) implies a year-over-year uptick of 35.1%, while the same for 2026 EPS indicates a decline of 10.4%. The EPS estimate for 2025 has declined 14.3%, while that for 2026 has increased 3.7% in the past 60 days.

OPEN stock currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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