Kaz Nejatian says Opendoor has fixed its 'fatal flaw'

"Q4 2025 and January 2026 acquisition cohorts have the best combination of margin, margin stability and resale velocity of any corresponding cohort in company history (excluding the COVID-era), and each of those four cohorts are selling faster than any corresponding cohort since COVID."

"Nejatian highlighted the October 2025 homes purchased as an example of what Opendoor 2.0 was capable of doing. Although this was not Opendoor's largest cohort of properties by volume, it was double the size of those a few months prior. Nejatian argues that by continuing this trend during the rest of Q4 and into Q1, it shows that October was not just luck, but rather a trend illustrating that Opendoor is on track to increase its acquisition size."

"We've now sold through over 80% of the October cohort and our trends have continued. Margins for our core cash products have come down only 90 basis points from where they were at 10% sold to over 80% sold. Last year, that same journey cost us over 260 basis points. So we've seen about a 3x improvement."

"During the firm's last earnings call with investors and analysts, Nejatian highlighted the October 2025 homes purchased as an example of what Opendoor 2.0 was capable of doing. Despite the improvements highlighted by Opendoor's executives, the financial results aren't painting the same picture. During the first quarter of 2026 Opendoor recorded $720 million in revenue, down $433 million from a year prior, while net loss jumped from $85 million in Q1"

Q4 2025 and January 2026 acquisition cohorts are claimed to deliver the strongest combination of margin, margin stability, and resale velocity in company history, excluding the COVID era. Each of these cohorts is said to sell faster than any corresponding cohort since COVID. Acquisition contracts are reported to have doubled quarter over quarter and returned to 2022 levels. Aged inventory is described as reduced from half of the inventory book to one-tenth of total inventory. October 2025 homes are cited as an example of Opendoor 2.0 performance, with sales through over 80% of the cohort and margins for core cash products declining only 90 basis points from 10% sold to over 80% sold, versus over 260 basis points last year. Despite these operational improvements, Q1 2026 revenue is reported at $720 million, down $433 million year over year, and net loss increased from $85 million in Q1.

Read at www.housingwire.com