In a Q1 2025 earnings report May 6, Opendoor Technologies Inc., an e-commerce platform for residential real estate transactions, reported revenue of $1.2 billion, down 2% versus Q1 2024 and up 6% versus Q4 2024; with 2,946 total homes sold, down 4% versus Q1 2024 and up 4% versus Q4 2024.
“We’ve spent the last decade building a modern real estate platform—designed to deliver simplicity, certainty and a customer-first experience,” said Opendoor CEO Carrie Wheeler. “We entered 2025 with a clear plan to drive toward profitability while strengthening our product experience and platform. Our first-quarter results reflect disciplined execution: we improved Adjusted EBITDA and sharply reduced Adjusted Net Losses.”
Wheeler noted that she feels this is a challenging macro-economic environment, with heightened uncertainty, shifting economic policies and an evolving tariffs landscape.
“Home sellers and buyers are taking a pause,” she said. “Mortgage rates are back up over 7%, clearance rates are down nearly 25% year-over-year, and delistings are up over 30% as sellers continue to exit the market. Despite these headwinds, our focus hasn’t changed. We’re here to give customers certainty, convenience and choice, especially when they need it most.”
Wheeler also explained that the iBuyer plans to slow acquisition growth in response to market uncertainties, following a seasonal pattern with more acquisitions in Q1 and Q4. Contribution margins are expected to decline due to older inventory but show potential improvement with newer acquisitions.
Marketing expenses are expected to decrease due to seasonal dynamics and inventory adjustments. The company is evaluating the potential for broader rollout of the agent partnership based on conversion rates and is well-positioned with existing infrastructure to support this expansion.
Opendoor is piloting an agent partnership program in 11 markets, aiming to enhance conversion rates and drive asset-light revenue by leveraging agent relationships earlier in the customer engagement process. Cost-saving measures have been implemented, resulting in significant fixed-cost reductions, with further efficiency opportunities being explored.
Detailing the agent partnership program, Wheeler said it would give sellers more options.
“Over the past decade, we’ve built a trusted category-defining platform that gives sellers a certainty of a cash offer,” she said. “Now, we’re evolving into a platform where every seller can explore all their selling options, whether that’s through cash offer or listing with an agent. We are expanding how we go to market, leveraging our unique platform and relationships. Today, a meaningful percentage of our acquisitions come to us through an agent who is bringing their customer to Opendoor and requesting a cash offer.”
Opendoor’s platform will now send customer referrals to embedded agent partners. The agents can then talk through the options that a customer has, selling from an Opendoor cash offer to a full listing.
“We are piloting this experience in select markets and are encouraged by the early indicators we’re seeing,” said Wheeler. “Customers are receptive to having a local expert explain their options. Agents benefit from high intense seller referrals from our marketing engine and are able to bring all options to the table and assess the smartest move for the customer. Moreover, we’re able to deliver final underwritten offers faster by allowing agents to do an in-home assessment in their first meeting by leveraging our platform.”
After the report, Opendoor’s stock price shot up more than 20% Wednesday morning.
Q1 2025 highlights:
- Gross profit of $99 million versus $114 million in Q1 2024 and $85 million in Q4 2024; gross margin of 8.6% versus 9.7% in Q1 2024 and 7.8% in Q4 2024
- Net loss of $85 million versus $109 million in Q1 2024 and $113 million in Q4 2024
- Inventory balance of $2.4 billion, representing 7,080 homes, up 26% versus Q1 2024 and up 9% versus Q4 2024
- Purchased 3,609 homes, up 4% versus Q1 2024 and up 22% versus Q4 2024
- Ended the quarter with 1,051 homes under contract for purchase, down 60% versus Q1 2024 and down 38% versus Q4 2024
