OPEN Stock Plunges 21% in Pre-Market After Opendoor’s Q3 Earnings Miss

OPEN stock plunged 21% in pre-market trading on Friday, falling to $5.17 following Opendoor’s disappointing third-quarter earnings report and downbeat guidance for the fourth quarter. The stock had already closed Thursday down 10.8% at $6.56, from an opening price of $7.36, as investor sentiment soured on the company’s trajectory.

Q3 earnings: Revenue beat, but losses widen

Opendoor reported third-quarter revenue of $915 million, exceeding consensus estimates of around $850 million and within its own guidance range of $800 million to $875 million. However, the company posted a loss of $0.12 per share, missing Wall Street expectations of a $0.07 loss. Adjusted EBITDA came in at -$33 million, also below the forecasted -$23.7 million.

$OPEN (Opendoor Technologies) #earnings are out: pic.twitter.com/sl2OVgTt6q

— The Earnings Correspondent (@earnings_guy) November 6, 2025

The quarter reflected continued operational challenges for the online real estate platform. Opendoor purchased just 1,169 homes, a steep drop from 3,504 homes in the same quarter last year, and sold 2,568 homes compared to 3,615 a year earlier.

Weak Q4 guidance and strategic overhaul under new CEO

CEO Kaz Nejatian, who took the helm in September, emphasized a shift in focus toward becoming a “software and AI company” in an effort to achieve sustainable profitability. The company is targeting break-even adjusted net income by the end of 2026, with Nejatian highlighting priorities such as expanding seller transactions, improving unit economics, and boosting operational efficiency.

For the fourth quarter, Opendoor expects revenue to decline approximately 35%, with an adjusted EBITDA loss projected between the high $40 million to mid $50 million range. This guidance is slightly more pessimistic than analyst forecasts of a $47.6 million loss. 

Nejatien commented on the company’s internal operational changes and the rollout of over a dozen AI-driven features:

“In my first month as CEO, we’ve made a decisive break from the past. Our business will succeed by building technology that makes selling, buying, and owning a home easier and more joyful.”

Investor sentiment sours amid broader volatility

The sharp decline in OPEN stock follows a period of significant volatility. The stock has been a favorite among retail traders and meme stock enthusiasts, experiencing both massive rallies and sharp pullbacks this year. Opendoor shares are up more than 300% year-to-date but have fallen over 26% in the past month.

The company’s recent leadership changes and renewed strategic focus briefly spurred optimism. However, concerns remain about its ability to reverse mounting losses and scale effectively in a challenging housing market. Hedge fund managers like George Noble have criticized Opendoor’s business model, pointing to “atrocious unit economics” and questioning its path to profitability.

Adding to the intrigue, Opendoor recently announced it would issue tradable warrants to shareholders of record as of November 18, allowing the purchase of shares at strike prices of $9, $13, and $17. While aimed at rewarding long-term holders, the move did little to assuage investor concerns amid the latest earnings miss.

With the stock now trading significantly below its September peak of $10.52, the pressure is on Nejatian and the revamped leadership team to deliver meaningful operational improvements in the quarters ahead.