Opendoor (OPEN) stock rocketed higher on Friday after reporting strong Q4 earnings that beat revenue estimates. The real estate company reported Q4 revenue of $736 million, a 32% year-over-year decline, but above the $595 estimate. Adjusted EBITDA came in at a loss of $43 million. On a GAAP basis, Opendoor posted a net loss of $1.1 billion ($1.26 per share), which was heavily impacted by a $933 million loss on extinguishment of debt.
At press time, OPEN is up nearly 18%, one of the best performers on the market on Friday. Despite the miss in some areas, analysts and investors alike received the report positively. Chief Executive Officer Kaz Nejatian emphasized that the current results validate the company’s long-term roadmap toward sustainable profitability, and Wall Street agreed. He noted that structural improvements in pricing and inventory turns are now beginning to materialize in the financial data.
“These results reflect structural improvements in how we operate with more accurate pricing, faster inventory turns, and disciplined selection,” Nejatian said in the earnings release. “The evidence of progress is clear.”
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Looking ahead, management is prioritizing a return to positive adjusted net income by the end of 2026 on a rolling twelve-month basis. For the first quarter of 2026, the company anticipates an adjusted EBITDA loss between $30 million and $35 million. “We’re focused on making the right long-term decisions to rebuild Opendoor rather than managing to short-term guidance,” the company stated regarding its forward-looking guideposts. Revenue is expected to decline by approximately 10% in the upcoming quarter.
OPEN is trading in the middle of its 52-week range and above its 200-day simple moving average. While $10 remains a lofty goal, Wall Street analysts see the stock trading between $4 and $6 throughout the rest of 2026.