iBuyer Opendoor is continuing to hold its positive view as it pushed forward with its Opendoor 2.0 initiative to bring the company back to significant profitability, as executives expressed in its Q1 Open House.
The company’s Q1 earnings report outlined another mixed quarter for the iBuyer, with several goals met while other metrics remained less positive.
For the goals met, Opendoor stated it has continued to reduce fixed operating expenses ($33 million in Q1, down from $35 million last quarter and $39 million last year), and trailing 12-month operations expenses as a percentage of revenue held steady at 1.3% quarter-over-quarter. The contribution margin (revenue remaining after deducting variable costs) in March 2026 was also the highest seen since Q2 2024.
Opendoor also purchased 45% more homes in Q1 (from 1,706 homes in Q4 to 2,474 homes in Q1), but this metric was down 31% from Q1 2025 (3,609 homes). The company noted that its acquisition contracts doubled from Q4 to over 5,000, which is the highest level since 2022. Additionally, the percentage of homes on the market over 120 days fell from 33% in Q4 to 10% in Q1.
The rest of the company’s financial results paint a mixed picture.
Revenue was down in Q1, clocking in at $720 million (down from $736 million in Q4 and $1.15 billion in Q1 2025). On the other hand, gross profit was up quarter-over-quarter, from $57 million in Q4 to $72 million in Q1. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) also improved, shrinking from a loss of $43 million last quarter to a loss of $31 million in Q1.
While some results remain more in the negative, the company’s outlook is bright. Kaz Nejatian, CEO of Opendoor, said during the company’s earnings call that the “machine is working,” and the company’s “structural shift” requires a “different model than the legacy framework most people are still using for this company…Better acquisitions, faster turns, stronger margins.”
In a “housing market that was supposed to break us,” he said, Opendoor is “on track to significantly increase our acquisition size as we said we would do.”
Nejatian also noted that as of April 1, Opendoor’s adjusted EBITDA is “profitable on a forward 12-month basis.”
“We expect Opendoor to be break-even or profitable, adjusted net income profitable by the end of this year on a 12-month go forward basis,” he continued. “If we keep moving the way we move this quarter, then the machine is doing exactly what we said it would do.”
Christy Schwartz, Opendoor’s chief financial officer, also celebrated the upward movement the company has been seeing, noting that Opendoor has “gone from our lowest contract volume since COVID to our highest since 2022.”
“This is the tempo required to achieve the goals we’ve set for ourselves, and we’re building the volume and the discipline at the same time,” she continued.
As with last quarter, Nejatian and Schwartz called out AI as a reason for growth, as Opendoor continues to expand its usage of AI throughout its operations.
“We’re going all in on AI, and we’re doing it responsibly,” said Schwartz, mentioning the company’s use of AI in underwriting, an audit tool, title intake and more.
As for Q2, Opendoor stated it expects a revenue growth of 25% quarter-over-quarter, a contribution margin in the middle of the targeted 5%-7% range, and for adjusted EBITDA to break-even (plus or minus a few million).
“We will have a lot left to prove, and we always will,” concluded Nejatian. “When we reach profitability, the next part is how much? It just won’t stop, right? We’re going to keep shipping. We’re going to keep showing you the data, and we’re going to keep moving faster because families matter.”
