Opendoor wrapped up 2024 with a mixed bag of financial results, reflecting the “persistent macro headwinds” of the housing market. At its fourth quarter and full year 2024 earnings call February 27, the report showed an increase in revenue, home acquisitions and net losses.
The iBuyer brought in $1.1 billion, up 25% from 2023’s final quarter. 2,822 homes were sold between October and December, up 19% year-over-year and down 22% from the previous quarter.
Despite the revenue increase, the company still reported a net loss of $113 million. That’s up from a $91 million loss in the final quarter of 2023 and $78 million from the third quarter.
Opendoor closed Q4 with 1,705 homes under contract for purchase, down 19% year-over-year and up 69% from the 2024’s third quarter.
For the full fiscal year, Opendoor’s revenue of $5.2 billion showed a 26% decrease from 2023. 13,593 total homes sold in 2024, down 27% year-over-year. The company had a gross profit of $433 million, down from $487 million in 2023. The yearly results also showed a net loss of $392 million, up from $275 million in 2023. Home acquisitions went up, ending the year with 14,684 homes purchased compared to the 11,246 homes purchased in 2023.
Selim Freiha, chief financial officer, attributed the decrease in annual revenue—$6.9 billion in 2023 to $5.2 billion in 2024—primarily to a lower starting inventory balance entering 2024.
Entering 2025, Opendoor’s Chief Executive Officer Carrie Wheeler said, the market is experiencing “additional macro pressures compared to last year.”
“On the supply side, clearance rates—meaning how quickly homes go under contract—are pacing 25% lower than last year. New listings are holding steady, but active listings are up nearly 20%, signaling a slowing market. On the demand side, visits to new listings are down 20-25% where delistings are up over 30%, hitting decade-highs as more sellers exit the market,” she said. “With little near-term rate relief in sight, the lock-in effect of low mortgage rates for sellers and affordability challenges for buyers will persist.”
Freiha predicts that the first quarter of 2025 will include the following:
- Revenue is expected to be between $1 billion and $1.075 billion
- Contribution profit between $40-50 million, which implies a contribution margin of 4% to 4.7%
- Home acquisitions of over 3,500 in the first quarter, up slightly year-over-year
Wheeler and Freiha shared a shift in Opendoor’s business strategy for 2025.
“We are evolving our home acquisition strategy to enable us to concentrate our selling activity in the spring and summer selling seasons—when buyer demand and home
price appreciation(s) are higher,” Freiha said. “This will also result in fewer homes acquired in the middle of the year relative to Q1 and Q4.”
Opendoor has been pushing its “Marketplace” initiative, allowing sellers to test listing their homes without committing to MLS exposure. Initially launched in Dallas, the program has since expanded to Charlotte and Raleigh.
This initiative mirrors other efforts by real estate companies—most notably Compass—to market listings on other platforms besides the MLS.
Touching on their newer markets, Wheeler outlined two reasons for the expansion of Marketplace—customers are saying yes to trial Marketplace and they are receiving a “pretty good clearance rate into Marketplace, notwithstanding the fact that we have a lot less visibility than you would have for that home on MLS.”
“What we think we’re creating in Marketplace is a different kind of seller who has some aspirations to sell, certainly, but is shy of wanting to put their home on the MLS—oftentimes because of home conditions. It’s not list ready, but they want to trial something and they can only fall back to the cash offer, but they don’t want to expose themselves to the taint of days on market and all that and they’re just not in a position to do that,” Wheeler added. “In this market, having those kinds of homes available to buyers given affordability pressures—it’s something we’re so focused on pursuing, so we’ll continue to iterate and test in a very measured investment way in the three markets we’ve got.”
Asked about “exclusive listings” and how “bypassing the MLS” fits into Opendoor’s business model, Wheeler said that the MLS model doesn’t work for everybody and that there should be room for evolution.
“At the highest level, we’re on the right side of consumers—consumer-first business. I think the Clear Cooperation Policy (CCP) is about giving consumers full access, transparency and availability. All those things are critical, but I also think, at the same time, there’s room for evolution. It doesn’t always work for everyone to expose their home to the MLS, and we think people should have choice,” she said. “So the extent that there’s innovation in traditional system, we’re all for it, so long as it’s in favor of consumer choice.”
