Technology real estate company Opendoor (NASDAQ: OPEN) will be reporting results this Thursday after market close. Here’s what investors should know.
Opendoor beat analysts’ revenue expectations by 4.2% last quarter, reporting revenues of $1.57 billion, up 3.7% year on year. It was a slower quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates. It reported 4,299 homes sold, up 5.4% year on year.
Is Opendoor a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Opendoor’s revenue to decline 38.4% year on year to $848.7 million, a reversal from the 40.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Opendoor has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 5.8% on average.
Looking at Opendoor’s peers in the real estate services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. The Real Brokerage delivered year-on-year revenue growth of 52.6%, beating analysts’ expectations by 6.5%, and Compass reported revenues up 23.6%, topping estimates by 3.2%. The Real Brokerage traded up 3.9% following the results.
Read our full analysis of The Real Brokerage’s results here and Compass’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the real estate services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7% on average over the last month. Opendoor is down 27.2% during the same time and is heading into earnings with an average analyst price target of $1.87 (compared to the current share price of $6.76).
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