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The call emphasizes meaningful operational and product progress: cohort margin stability, faster resale velocity, sharp reductions in aged inventory, accelerating contract and acquisition volumes, clear AI-driven efficiency gains, strong liquidity and a path to adjusted EBITDA/ANI profitability. Management acknowledges macro headwinds, early-stage products that require further validation, and execution risks that must be monitored. On balance the update contains substantially more concrete positive developments and measurable improvements than negatives, while also transparently calling out what remains unproven.
Management guided that Q2 2026 should be an inflection quarter: they expect adjusted EBITDA to be roughly breakeven (± a few million) and to be adjusted EBITDA‑profitable on a 12‑month go‑forward basis starting in Q2, with adjusted net income positive on a forward 12‑month basis by year‑end; revenue is expected to rise about 25% QoQ as Q1’s higher acquisitions (2,474 purchases, up 45% QoQ) and over 5,000 signed contracts begin to flow to resale, contribution margin for Q2 is guided to the middle of the 5%–7% target (Q1 resale contribution margin closed at 4.4%, +3.4 ppts QoQ), inventory aged >120 days has fallen to 10% (from 51% in Q3), fixed OpEx was $33M (−$2M QoQ, −$6M YoY), unrestricted cash totaled $999M, net inventory was $1.1B (3,420 homes), and non‑recourse ABL capacity is $7.1B with $1.5B committed.
October–January cohorts show materially improved margin stability: margins for core cash products fell only ~90 basis points from 10% sold to >80% sold vs ~260 bps last year (≈3x improvement). Q4'25 and Jan'26 cohorts have best combination of margin, margin stability and resale velocity in company history (ex-COVID).
Q1 entered into contract on over 5,000 homes (2x Q4, 3x Q3). Q1 DTC acquisition contracts are >4x vs Q3'25. Q1 purchases were 2,474 homes, up 45% from Q4; Q1 was the strongest signed-contract quarter since Q2 2022.
Resale contribution margin improved every month since September 2025 and closed Q1 at 4.4%, up 3.4 percentage points quarter-over-quarter. Management expects Q2 contribution margin in the middle of the 5%–7% target range.
Aged inventory (>120 days) fell from 51% to 10% in two quarters (a 41 percentage-point improvement). Company held 3,420 homes (~$1.1B net inventory) and reports the freshest book in nearly four years.
As of April 1, Opendoor is adjusted EBITDA profitable on a forward 12-month basis. Management expects Q2 adjusted EBITDA to be breakeven (± a few million) and to be adjusted net income (ANI) positive on a 12-month go-forward basis by year-end 2026.
Ended Q1 with $999 million in unrestricted cash (highest in years). Nonrecourse asset-backed borrowing capacity of $7.1 billion with $1.5 billion committed; warehouse capacity and warrant structures provide optionality to fund growth.
Multiple AI/operator-led improvements reduced friction and cost: title intake cut from up to 5 hours to ~15 minutes; AI repair negotiation cut buyer fall-through by double digits; pilot renovation scoping reduced pre-list renovation spend by ~10%–20% per home; fixed operating expenses $33M in Q1, down $2M QoQ and $6M YoY while TTM ops expense/revenue held at 1.3%.
Cash Now, More Later rapidly scaled to >1/3 of Q1 acquisition contracts (was 0 a year ago). Seller-led assessments exceed 50% (6,000 in March). Opendoor Mortgage launched in Colorado with attach rates above expectations and mortgage pricing ~100 basis points below market average.
[Presentation] Hi, everyone. Welcome to Opendoor's Q1 2026 Financial Open House Earnings Live Stream. I'm Michael Judd, Opendoor's Head of Investor Relations. A few quick housekeeping guidance before we get started. Like all things Opendoor, we're going to do this faster. Details of our results and additional management commentary are available in our earnings release, which can be found at investor.opendoor.com. The following discussion contains forward-looking statements within the meaning of the federal securities laws. All statements other than statements of historical fact are statements that could be deemed forward-looking, including, but not limited to, statements regarding Opendoor's financial condition, anticipated financial performance, business strategy and plans, market opportunity and expansion and management objectives for future operations.
These statements are neither promises nor guarantees, and undue reliance should not be placed on them. Such forward-looking statements involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Additional information that could cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Opendoor's most recent annual report on Form 10-K for the year ended December 31, 2025, as updated by our quarterly report on Form 10-Q for the quarter ended March 31, 2026, and other filings with the SEC. Any forward-looking statements made on this webcast, including responses to your questions, are based on management's reasonable current ex...