Opendoor Technologies Inc Series A Warrants each whole warrant exercisable to purchase one share of Common Stock at an exercise price of $13.00 per warrant (OPENL)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

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

I look at this through a Graham and Buffett lens: is it a sound business, and is there a margin of safety? Opendoor buys and resells homes online, a capital-hungry, competitive business with no obvious moat. The filed numbers are discouraging. Revenue fell from $6.9B in FY2023 to $5.2B in FY2024 to $4.4B in FY2025, while net income went from -$275M to -$392M to -$1.3B. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $883.0M and net income was -$162.0M, much worse than the $1.6B revenue and -$29.0M net income in fiscal Q2 2025. Trailing free cash flow is -$474.0M, and FairStock calculates FCF yield of -650.8% and P/B of 0.08 at the 2026-10-13 close. A low P/B might look cheap, but negative returns and cash burn can erode book value quickly. Debt/equity is 2.15, Altman Z is -1.61, and Piotroski is 1/9—serious red flags. The computed Lynch category is none because it lost money in each of the last four years. The Series A warrant costs $0.08 and only has value if the common stock eventually exceeds the $13.00 exercise price. Given shrinking revenue, large losses, and negative cash flow, that looks like a lottery ticket, not a value investment. I would want evidence of durable profitability and a much stronger balance sheet before calling this a bargain.

In plain English: Opendoor buys and sells homes online and offers related real estate services. The business is losing money, burning cash, and revenue has been falling. The Series A warrant costs 8 cents and would only be worth something if the common stock someday trades above $13.00; at today’s numbers it looks very speculative rather than a safe bargain.

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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