Opendoor Technologies Inc Common Stock (OPEN)

FairStock Score: 25/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business bought at a sensible price. Opendoor is not that today. It buys and resells homes through a digital platform, a capital-intensive, competitive trade with no obvious moat. The filed record shows deterioration: in fiscal Q3 2025, the quarter ended 2025-09-30, revenue was $915.0M and net income was -$90.0M; in fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $720.0M and net loss was $173.0M; in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $883.0M and net loss was $162.0M. For full-year 2025, revenue was $4.4B and net loss was $1.3B, worse than FY2024 revenue of $5.2B and net loss of $392.0M. The direction is wrong. The computed Lynch category is none because it has lost money in each of the last four years. FairStock's price-based ratios, at the 2026-10-13 close of $2.11, show a negative P/E of -1.12, P/B of 2.24, ROE of -196.89%, ROCE of -10.91%, and negative FCF yield of -23.1%. Piotroski 1/9 and Altman -1.03 confirm weak financial health, while D/E of 2.15 adds risk. Revenue growth of -43.65% and profit growth of -458.62% are not the marks of a compounder. The 52-week range of $2.04-$9.45 and beta of 3.56 suggest the market has violently repriced it. A $2.0B market cap on shrinking, cash-burning revenue is not Graham's bargain; it is a speculation on a turnaround. I would need evidence of sustainable positive cash flow and a balance sheet that can survive the housing cycle before calling it an investment.

In plain English: Opendoor runs a website that buys and sells homes and offers related real estate services. The business is weak right now: it has lost money for years, revenue is falling, and it spends more cash than it brings in. At $2.11 a share, the price does not look like a clear bargain against those numbers; it looks more like a bet that the company can turn itself around.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer