Opendoor Technologies Inc. Q1 FY2026 earnings call

Kasra Nejatian emphasized the importance of doing what was promised, and highlighted that Opendoor 2.0's structural changes are working. Cohorts from October to January have shown better performance with improved margins, margin stability, and resale velocity. They entered into over 5,000 contracts in Q1, which was 2x bigger than Q4 and 3x bigger than Q3. Product launches include expanding Cash Now, More Later coverage, rebuilding buyer apps, acquiring Doma's Escrow division, and various AI - related initiatives. Christy Schwartz mentioned reducing aged inventory from 51% to 10% in 2 quarters, margins improving every month for 6 months straight, acquisitions up 45% from Q4, and ending the quarter with $999 million in unrestricted cash.

Expect Q2 revenue growth of approximately 25% quarter - over - quarter. Contribution margin for Q2 2026 is expected to fall in the middle of the 5% to 7% goal. Q2 adjusted EBITDA is expected to be breakeven, plus or minus a few million dollars, and Opendoor is expected to be adjusted EBITDA profitable on a 12 - month go - forward basis starting in Q2. Committed to being ANI profitable on a go - forward 12 - month basis by the end of 2026.

Q: Do you believe Opendoor is well prepared for all the things that AI is likely to change about the way the real estate market operates in the coming years?

A: Kasra Nejatian said AI is important, software leverage story, AI as collaboration software, complexity as a structural advantage, and how AI dissolves information asymmetry in real estate.

Q: Is turning profitable by the end of the year still a realistic goal?

A: Christy Schwartz reconfirmed the goal and mentioned management objectives like acquisition closes up, contribution margin improving, long - held inventory reduced, and Kasra Nejatian talked about operating in a hard market and not using macro as an excuse.

Q: How are you ensuring underwriting quality remains high and won't need to raise equity to fund expansion?

A: Christy Schwartz said acquisition velocity is driven by tailored underwriting, product expansion, etc., and proof is in cohorts; cash position grew with inventory acquisition, and Kasra Nejatian rejected the myth that moving fast means being sloppy and wants to fund from cash flow.

Q: Are there plans to expand the 4.99% mortgage promotion to other regions or states?

A: Kasra Nejatian said they're in flight on licensing in about over 20 states, expect to roughly double by end of Q3, and it's not a promotion but building an AI - native mortgage platform to offer lower rates.

Q: Tokenization of real estate?

A: Kasra Nejatian talked about history of money, onchain settlement, title being behind, and Opendoor's work on reducing friction tax including acquisition of Doma's Escrow business.

Q: Which specific change is having the most measurable impact on seller conversion rates and acquisition volumes today?

A: Kasra Nejatian said Cash Now, More Later and new offer page allowing customers to make choices, and launching in every state with good underwriting model, product, and partner network helps; and about OpEx, more offer types mean more sellers without significant incremental headcount.