Technology real estate company Opendoor (NASDAQ:OPEN) fell short of the market’s revenue expectations in Q2 CY2026, with sales falling 43.7% year on year to $883 million. Its GAAP loss of $0.17 per share was significantly below analysts’ consensus estimates.
Is now the time to buy Opendoor? Find out by accessing our full research report, it’s free.
Opendoor (OPEN) Q2 CY2026 Highlights:
- Revenue: $883 million vs analyst estimates of $899.9 million (43.7% year-on-year decline, 1.9% miss)
- EPS (GAAP): -$0.17 vs analyst estimates of -$0.07 (significant miss)
- Adjusted EBITDA: -$4 million (-0.5% margin, 117% year-on-year decline)
- Operating Margin: -16.3%, down from -0.8% in the same quarter last year
- Free Cash Flow was -$723 million, down from $821 million in the same quarter last year
- Homes Sold: down 1,960 year on year
- Market Capitalization: $3.80 billion
Company Overview
Founded by real estate guru Eric Wu, Opendoor (NASDAQ:OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Regrettably, Opendoor’s sales grew at a weak 5.2% compounded annual growth rate over the last five years. This fell short of our benchmark for the consumer discretionary sector and is a tough starting point for our analysis.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Opendoor’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 15.4% annually. 
We can dig further into the company’s revenue dynamics by analyzing its number of homes sold, which reached 2,339 in the latest quarter. Over the last two years, Opendoor’s homes sold averaged 17% year-on-year declines. Because this number is lower than its revenue growth during the same period, we can see the company’s monetization has risen. 
This quarter, Opendoor missed Wall Street’s estimates and reported a rather uninspiring 43.7% year-on-year revenue decline, generating $883 million of revenue.
Looking ahead, sell-side analysts expect revenue to grow 76.5% over the next 12 months, an improvement versus the last two years. This projection is eye-popping and suggests its newer products and services will catalyze better top-line performance.
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
Operating Margin
Opendoor’s operating margin has been trending down over the last 12 months and averaged negative 8.9% over the last two years. Unprofitable consumer discretionary companies with falling margins deserve extra scrutiny because they’re spending loads of money to stay relevant, an unsustainable practice.
In Q2, Opendoor generated a negative 16.3% operating margin. The company’s consistent lack of profits raises a flag.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Although Opendoor’s full-year earnings are still negative, it reduced its losses and improved its EPS by 2.2% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability.
In Q2, Opendoor reported EPS of negative $0.17, down from negative $0.04 in the same quarter last year. This print missed analysts’ estimates. Over the next 12 months, Wall Street expects Opendoor to improve its earnings losses. Analysts forecast its full-year EPS will improve from negative $1.73 to negative $0.31.
Key Takeaways from Opendoor’s Q2 Results
We struggled to find many positives in these results. Its EBITDA missed and its EPS fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 7.7% to $3.85 immediately after reporting.
The latest quarter from Opendoor’s wasn’t that good. One earnings report doesn’t define a company’s quality, though, so let’s explore whether the stock is a buy at the current price. We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).