Opendoor Charts a New Course with Mortgage Product Relaunch

Opendoor launches new mortgage product, refocusing on financing to drive profitability. Q4 revenue beat expectations by 34% as inventory efficiency improves.

Opendoor Technologies Inc. is making a strategic pivot back to the financing sector, a move that sparked a notable market reaction. The company's shares climbed nearly six percent to close at $5.11 following the announcement, signaling cautious investor optimism about this shift in direction.

A Refocused Path to Profitability

The core of this strategic turn is the beta launch of a new, internally developed mortgage product. This marks a significant reversal after Opendoor exited the lending business in 2022. According to the company, a dedicated engineering team built the new platform from the ground up in under ten weeks. CEO Kaz Nejatian has tied this initiative to a clear financial target: achieving a positive adjusted net income on a trailing twelve-month basis by the end of 2026.

This operational refocus is attracting attention from institutional investors. Prentice Capital Management recently established a new position, purchasing 553,000 shares on Monday alone. This activity suggests growing confidence in the revised business model.

Operational Momentum Amidst Annual Loss

While Opendoor reported a substantial net loss of $1.3 billion for the full fiscal year 2025, recent quarterly performance indicates accelerating momentum. Fourth-quarter revenue reached $736 million, surpassing market expectations of $549 million by approximately 34 percent. However, the bottom line was impacted by a one-time charge of $933 million for the early extinguishment of debt, contributing to a loss per share of $1.26.

Management has demonstrated clear progress in inventory efficiency. The number of homes purchased increased by 46 percent quarter-over-quarter. Furthermore, the company successfully reduced the proportion of properties held in inventory for more than 120 days from 51 percent to 33 percent. Homes acquired in October 2025 achieved the highest contribution margin of any October cohort in the company's history.

Looking ahead, guidance for Q1 2026 projects an adjusted EBITDA loss in the range of $30 to $35 million. The broader housing market showed stability, with the FHFA House Price Index recording a 1.8 percent gain in the fourth quarter. Opendoor's future stock performance will likely hinge on its ability to maintain this operational efficiency in property turnover while successfully scaling its re-entered financing business.