The Company
Opendoor is a U.S. “iBuyer” that uses data models and on‑platform operations to give homeowners an instant, cash offer, renovate as needed, and resell the home; it also offers adjacent services like agent partnerships, title/escrow and financing integrations.
Financials
- Scale & trend: FY2024 revenue was $5.2B with a $(392)M net loss; 13,593 homes sold. In Q2 2025, revenue was $1.6B, 4,299 homes sold, and 1,757 homes acquired, with guidance for Q3 2025 revenue of $0.8–$0.875B.
- Margins & cash: FY2024 gross profit $433M (8.4% margin). Management continues to prioritize contribution margin discipline and lower operating expense intensity.
- Business activity context: 2024 existing‑home transactions were at multi‑decade lows; 2025 volumes/prices remain constrained though stabilizing.
TAM / CAGR
- TAM framing (U.S. existing‑home resale market): As of June 2025, existing‑home sales ran at a 3.93M SAAR with a $435,300 median price, implying an annualized resale GMV of roughly ~$1.7T (3.93M × $435k).
- Near‑term growth outlook: NAR projects a rebound in 2025–2026 as mortgage rates ease, with ~6% sales growth in 2025 and home prices up ~3–4%, suggesting a ~9–10% nominal TAM uplift across 2025–2026; beyond that, most U.S. residential/brokerage forecasts point to low‑ to mid‑single‑digit CAGR.
Products
| Product / Service | What it is | FY2024 Revenue Mix* | Notes |
|---|---|---|---|
| Home Sales (iBuying) | Instant cash offer, light repairs, resale | ~98–99% | Dominant line; adjacent revenues bundled with home transactions. |
| Services & Other | Title/escrow facilitation, agent/partner programs, other fees/interest | ~1–2% | Reported as “other/ancillary,” described as an insignificant share of total revenue. |
Business Model
Opendoor sources seller leads, prices homes using automated valuation and underwriting rules, makes cash offers (typically with a service fee), performs targeted renovations, and resells inventory, managing price risk and holding periods. It funds inventory through asset‑backed facilities and continues to build an agent‑led distribution channel so partner agents can present Opendoor offers alongside listing options. Key levers are acquisition spreads, renovation efficiency, resale velocity, and cost of capital.
Customers
Core customers are U.S. homeowners seeking speed, certainty, and convenience (e.g., relocating, timing a buy/sell, or needing a non‑contingent close). Increasingly, real‑estate agents act as a distribution channel, presenting Opendoor as one option among multiple sale paths for their clients.
Competitors
- Offerpad (OPAD): Direct iBuyer offering instant cash offers and resale operations in overlapping U.S. metros.
- Clever Offers (Anytime Estimate/Clever Real Estate): Marketplace that delivers instant cash offers from vetted investors; competes for the same “sell‑my‑home fast/certain” demand even though it’s marketplace vs. principal.
- HomeLight Simple Sale / cash‑offer programs: Provides instant sale pathways via investor networks and power‑buyer products; competes at the point of seller lead with quick‑close offers.
Note: Zillow Offers and RedfinNow exited iBuying; today Zillow partners with Opendoor rather than competing in principal home purchases.
Founding History
Founded in 2014 by Eric Wu, Ian Wong, and JD Ross to bring one‑click simplicity to selling a home. Opendoor went public in December 2020 via a merger with Social Capital Hedosophia Holdings Corp. II (IPOB). Leadership has since evolved, with Carrie Wheeler (former CFO) becoming CEO in Dec 2022, as the company emphasized profitable growth and tighter risk management through the cycle.
Invest Alpha 