Can Opendoor's AI Turnaround Drive Profitability by 2026?

Opendoor Technologies Inc. OPEN is undergoing a sweeping transformation under new CEO Kaz Nejatian, positioning itself less as a housing flipper and more as a software-driven e-commerce platform for residential real estate. The company’s “Opendoor 2.0” vision hinges on AI and automation to accelerate transactions, improve unit economics, and cut fixed costs — the pillars of its plan to reach adjusted net income breakeven by the end of 2026.

The third quarter of 2025 reflected the legacy model’s hangover. Revenue fell 33.6% year over year to $915 million as acquisition volumes shrank, while gross margin slipped to 7.2% from 7.6%. Yet the new playbook is taking shape: home assessments now take minutes instead of hours, the company has launched over a dozen AI-powered tools, and acquisitions have rebounded nearly 90% in just seven weeks. Opendoor is also reducing consultant dependence, consolidating software vendors, and redeploying savings into engineering talent and automation.

The near-term outlook remains pressured as old inventory clears, but sequential improvement in resale velocity, tighter spreads, and leaner operations could restore contribution margins by mid-2026. With $962 million in cash, reduced debt obligations, and new D2C and Checkout initiatives broadening engagement, Opendoor is rebuilding both efficiency and trust.

If management sustains its AI-led execution and avoids over-reliance on macro housing cycles, Opendoor’s pivot could indeed turn its software ambition into profitability — marking one of the most compelling turnaround stories in proptech.

Zillow and Offerpad’s AI Push Heats Up the Market

Opendoor faces rising competition from Zillow Group ZG and Offerpad Solutions OPAD, both of which are intensifying their use of AI to streamline residential transactions. 

Zillow, mentioned repeatedly as Opendoor’s closest peer, is leveraging advanced AI-driven valuation models and integrated mortgage tools to strengthen its platform efficiency and user engagement. Zillow’s scale and data network provide a distinct edge in home discovery and pricing accuracy. 

Offerpad, meanwhile, continues to refine its operational model with predictive analytics and automation to enhance offer precision and resale speed. Offerpad’s focus on smaller, high-velocity markets mirrors Opendoor’s strategy but with a leaner asset footprint, making its AI-driven scalability a real competitive threat. 

As Opendoor doubles down on automation and AI-powered home assessments, sustaining execution speed and cost efficiency will be essential for the company to stay ahead of both Zillow and Offerpad in the evolving proptech landscape.

OPEN Stock's Price Performance, Valuation & Estimates

Shares of Opendoor have surged 1,026.7% over the past six months, outperforming the industry’s 2.9% rise.

OPEN’s 6-Month Price Performance

From a valuation standpoint, OPEN trades at a forward price-to-sales (P/S) multiple of 1.44, significantly below the industry’s average of 4.95X.

OPEN Stock’s Valuation

The Zacks Consensus Estimate for OPEN’s 2025 loss per share has remained unchanged at 24 cents in the past 30 days. However, the estimated figure indicates a narrower loss from the year-ago loss of 37 cents per share.
 

OPEN stock currently has a Zacks Rank #3 (Hold). 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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