Opendoor’s First Profit Since 2022 Fails To Calm Investor Criticism Of CEO

Opendoor Technologies Inc. (NASDAQ:OPEN) shares remained choppy Tuesday, extending a volatile stretch fueled by earnings results and intensifying public criticism of CEO Carrie Wheeler.

The company has a 52-week high of $4.97 and a 52-week low of $0.51. Year-to-date, the stock is up roughly 45% and trades about 83.6% above its 50-day simple moving average.

Opendoor reported $1.6 billion in second-quarter revenue and its first quarter of adjusted EBITDA profitability since 2022, even as Wheeler acknowledged that housing market conditions “continued to deteriorate.”

Also Read: Opendoor Posts First Profit In 3 Years: Stock Plunges 25% After Hours As CFO Warns Of ‘Lower Clearance And Record Delistings’

Revenue rose 4% from a year earlier and 36% from the prior quarter, with 4,299 homes sold. Gross profit was $128 million, slightly lower than $129 million last year but above $99 million in the first quarter. Net loss narrowed to $29 million from $92 million a year ago.

The company ended the quarter with $1.5 billion in inventory, representing 4,538 homes, down 32% year over year. Home purchases fell 63% to 1,757, and homes under contract for purchase dropped 78% to 393. On a non-GAAP basis, contribution profit was $69 million, adjusted net loss was $9 million, and adjusted EBITDA came in at $23 million, compared with a $5 million loss last year.

View more earnings on OPEN

For the third quarter, Opendoor expects revenue of $800 million to $875 million, contribution profit of $22 million to $29 million, and adjusted EBITDA between a $28 million and $21 million loss.

Ahead of the earnings release, investor Eric Jackson publicly rebuked the company’s CEO, Carrie Wheeler, over remarks made in a Bloomberg interview, accusing her of being dismissive toward retail investors.

Jackson called for her replacement, arguing that retail support had pulled Opendoor “back from the brink” by helping it regain Nasdaq compliance and cancel a planned 50-to-1 reverse stock split.

Co-founder Keith Rabois echoed the criticism, calling Wheeler “utterly incompetent” and a “mediocre CFO”, before adding that tech companies “should never be led by CFOs.”

Shares dropped 24.6% to $1.90 last Wednesday after the earnings report and backlash, before edging up 0.01% after hours. Analysts and investors remain focused on whether Opendoor can navigate the “very challenging” housing market and execute its pivot toward a more capital-light, agent-led platform.

Price Action: OPEN shares are trading higher by 2.65% at 2.371 at Tuesday’s last check.

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