Opendoor Technologies reported strong fourth-quarter earnings with a 46% sequential increase in homes bought and improved profitability. The most impressive metric was the reduction of homes on market for over 120 days from 51% to 33%, indicating faster sales velocity. Under new CEO Kaz Nejatian's growth strategy, October was the company's most profitable October on record, suggesting a potential recovery trajectory.

Prentice Capital Management established a new position in Opendoor Technologies by acquiring 552,981 shares worth approximately $3.22 million during Q4 2025. The stake represents 5.1% of the fund's $63.47 million in U.S. equity holdings. Opendoor shares have surged 179.4% over the past year, though the company remains unprofitable with a net loss of $1.30 billion (TTM).

Opendoor Technologies stock rose 7.42% after reporting strong fourth-quarter results showing progress toward profitability. The company increased home purchases by 46% quarter-over-quarter, reduced inventory holding times, and cut fixed operating expenses to $35 million. CEO Kaz Nejatian's turnaround strategy is demonstrating structural improvements in pricing, inventory turns, and cost discipline, with the company on track to achieve positive adjusted net income by end of 2026.

SRx Health Solutions increased its ownership stake in Opendoor Technologies by 30% and reduced its cryptocurrency short positions across Bitcoin and Ethereum to become net long. The company also announced receiving a warning letter from NYSE American and reported Q1 2026 results while executing a definitive agreement to acquire EMJ Crypto Technologies.

Opendoor Technologies (NASDAQ: OPEN) shares surged approximately 18% in premarket trading on February 20, 2026, following strong Q4 2025 earnings that beat Wall Street consensus estimates. The company reported Q4 revenue of $736 million (vs. $577-594M consensus) and adjusted EBITDA of -$43 million (vs. -$49M consensus). Despite a significant GAAP net loss driven by a one-time $933 million debt extinguishment charge, operational metrics showed improvement with home acquisitions up 46% quarter-over-quarter and inventory turnover accelerating. Management reiterated its goal of achieving positive adjusted net income on a rolling 12-month basis by end of 2026.

Fourth-quarter earnings season continues this week with major reports from retail giant Walmart, tech company Palo Alto Networks, and online car dealers Carvana and Opendoor. Walmart is expected to report $190.24 billion in revenue, while investors will watch for momentum in advertising and e-commerce. Carvana faces scrutiny following a short-seller report alleging accounting irregularities, while Opendoor will provide updates on its turnaround plans and path to 2026 profitability.

Opendoor Technologies, under new CEO Kaz Nejatian, is attempting a turnaround with cost-cutting, AI integration, and volume focus. While the company shows early progress with increasing homes under contract, it still faces headwinds with declining revenue (-34% YoY), reduced inventory, and operating losses. The stock is highly volatile and only suitable for risk-tolerant investors awaiting Feb. 19 earnings results.

Opendoor's stock has collapsed from a 2021 high of $35.88 to $4.97, driven by rising interest rates that chilled the housing market. While the company shows signs of recovery with new leadership (former Shopify COO Kaz Nejatian as CEO), institutional support, and AI improvements, it currently faces declining revenue and negative EBITDA margins. Analysts project 27% revenue growth from 2025-2027 with positive EBITDA by 2027, suggesting the stock could be undervalued ahead of a housing market recovery.

Opendoor Technologies stock fell 12% in January as investors grew cautious ahead of the company's fourth-quarter earnings report. Despite a new CEO's turnaround plan focused on scaling acquisitions and operational efficiency, the company continues to struggle in a challenging real estate market with declining revenue, home sales, and margins. The stock remains cheap at 0.9x trailing sales but reflects significant underlying business risks.

The article recommends three sub-$10 stocks for 2026: Archer Aviation (ACHR), a pre-revenue eVTOL aircraft company expected to reach nearly $1 billion in revenue by 2028 with a secured Olympic Games contract; Snap (SNAP), a social media platform with 943 million users and accelerating revenue growth despite a 39% annual decline; and Opendoor Technologies (OPEN), a home-flipping company positioned to benefit when the residential real estate market recovers.

Opendoor Technologies, a money-losing home-flipping startup, is undergoing a dramatic business transformation under new CEO Kaz Nejatian, who is pivoting toward artificial intelligence. However, the company faces significant challenges: its core home-flipping model has proven unprofitable at scale, and the shift to AI could result in staff reductions with uncertain outcomes. Investors should wait for the company to hit performance milestones before investing, as the turnaround could take over a year to evaluate and the company risks becoming a going concern if losses continue.

Opendoor Technologies announced it will report its Q4 and full year 2025 financial results on February 19, 2026. The company will host a 'Financial Open House' video livestream at 2:00 p.m. PT, replacing the traditional earnings conference call format. Shareholders can submit and upvote questions through Robinhood's Say Technologies platform, with management addressing top-voted questions live during the broadcast.