Opendoor Q3 Revenues Beat, Earnings Miss Amid Transition to AI Model

Opendoor Technologies Inc. OPEN reported mixed third-quarter 2025 results with the topline beating the Zacks Consensus Estimate but missing on the bottom line, reflecting a soft housing backdrop and lower resale volumes.

The company, now under new CEO Kaz Nejatian, is pivoting toward a software and AI-driven operating model to chart a path toward profitability by the end of 2026.

Shares of Opendoor lost 14.8% in the after-hour trading session yesterday following the earnings release.

Revenues & Earnings

Opendoor posted third-quarter revenues of $915 million, down 33.6% year over year from $1.38 billion but above the Zacks Consensus Estimate of $851.7 million. The decline reflected sharply lower home sales volume (2,568 homes sold compared with 3,615 a year ago) amid subdued acquisition activity and clearing of older inventory.

The company reported an adjusted loss of 8 cents per share, wider than the Zacks Consensus Estimate’s loss of 7 cents per share. Opendoor reported a loss of 1 cent a year earlier.

On a non-GAAP basis, adjusted EBITDA stood at negative $33 million compared with negative $38 million a year earlier, translating to an adjusted EBITDA margin of negative 3.6%, slightly weaker than last year’s 2.8%.

Opendoor Technologies Inc. Price, Consensus and EPS Surprise

Opendoor Technologies Inc. price-consensus-eps-surprise-chart | Opendoor Technologies Inc. Quote

Margins & Profitability of Opendoor

Gross profit fell to $66 million from $105 million a year ago, with gross margin slipping modestly to 7.2% from 7.6%.

Contribution profit declined to $20 million from $52 million, with the contribution margin narrowing to 2.2% from 3.8% last year. The company attributed near-term margin pressure to the clearance of older inventory and lower resale velocity, though management emphasized improving pricing and automation efforts to enhance unit economics going forward.

Balance Sheet & Liquidity

As of Sept. 30, 2025, cash and cash equivalents totaled $962 million, up from $671 million at year-end 2024, supported by financing and equity raises. Including restricted cash, total liquidity stood at $1.45 billion. Long-term debt, including asset-backed facilities and convertible notes, declined to $1.34 billion from $2.30 billion a year ago, reflecting deleveraging and refinancing. Shareholders’ equity rose to $811 million from $713 million, while the company did not report any share repurchases during the quarter.

Opendoor’s Outlook

Management refrained from providing traditional quarterly guidance as it restructures operations but expects the fourth quarter of 2025 revenue to decline roughly 35% sequentially amid low inventory levels, while contribution margins are projected to dip below the third quarter before improving through year-end. Opendoor reaffirmed its target to achieve breakeven adjusted net income by the end of 2026 on a 12-month forward basis, with a focus on scaling acquisitions, strengthening unit economics, and driving operating leverage.

Opendoor’s Stock’s Zacks Rank & Peer Releases

Opendoor currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CACI International Inc. CACI reported better-than-expected results for the first quarter of fiscal 2026. It reported first-quarter non-GAAP earnings of $6.85 per share, which beat the Zacks Consensus Estimate by 10.48%. The bottom line increased 15.5% on a year-over-year basis, primarily driven by higher revenues and efficient cost management.
 
CACI surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 16.67%. In the first quarter of fiscal 2026, contract awards totaled $5 billion, with approximately 60% for new business. For fiscal 2026, CACI continues to anticipate revenues between $9.2 billion and $9.4 billion.
 
Sabre Corporation SABR reported mixed results for the third quarter of 2025, wherein the top line surpassed the Zacks Consensus Estimate, while the bottom line missed the same. During the quarter, Distribution revenues increased 4% to $575 million, primarily driven by an increase in air and hotel distribution bookings, a favorable travel supplier mix and rate impacts, while IT Solutions’ revenues were $140 million, flat on a year-over-year basis.
 
For 2025, Sabre now expects its pro-forma revenues (which excludes the recently divested Hospitality Solutions business) to be flat year over year, down from the earlier prediction of a low single-digit percentage increase. For the fourth quarter, Sabre anticipates pro-forma revenue growth in the low single-digit percentage range.
 
Paycom Software, Inc. PAYC reported lower-than-expected third-quarter 2025 results. The online payroll and human resource technology provider reported non-GAAP earnings of $1.94 per share, which missed the Zacks Consensus Estimate of $1.96.
 
Paycom reported revenues of $493.3 million, which outpaced the consensus mark of $492.4 million. The top line increased 9.1% year over year, primarily benefiting from increased sales momentum, international expansion and artificial intelligence (AI) integration in its products. Paycom reiterated its revenue guidance for 2025, with revenues expected in the band of $2.045-$2.055 billion and adjusted EBITDA between $872 million and $882 million.

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