Opendoor Technologies Inc Series Z Warrants each whole warrant exercisable to purchase one share of Common Stock at an exercise price of $17.00 per warrant (OPENZ)

FairStock Score: 40/100 — MIXED

Key Financials

AI Analysis

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

As a value investor in the Graham and Buffett tradition, I begin with business quality, not with the option-like wrapper. Opendoor buys and resells homes through a digital platform. It has reported losses in each of the last four years; the Lynch category is none for that reason. In fiscal 2025, the year ended 2025-12-31, revenue was $4.4 billion and net income was negative $1.3 billion, with diluted EPS of negative $1.70. In fiscal 2024, revenue was $5.2 billion and net income was negative $392.0 million; in fiscal 2023, revenue was $6.9 billion and net income was negative $275.0 million. The trend is not a growing moat but a shrinking top line and continuing losses. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $883.0 million and net income was negative $162.0 million. Trailing free cash flow was negative $474.0 million, and as of the 2026-10-13 close, FairStock's FCF yield was -887.5% against the $53.4 million market cap. FairStock's P/B was 0.06 at the 2026-10-13 close, but book value can be impaired by continuing losses. FairStock also shows debt/equity of 2.15, ROE of -196.89%, ROCE of -10.91%, Piotroski F-Score 1/9, and Altman Z-Score -1.62. Those are not signs of safety. The Series Z warrants require $17.00 to receive one share. With the warrant at $0.05, the market is assigning almost no value to that right. Unless the common stock rises far above $17.00 and the company fixes its cash burn, the warrant's intrinsic value is zero. I prefer to demand a substantial margin of safety, and here I see none.

In plain English: This is a special right to buy Opendoor shares later at $17 each, not the shares themselves. Opendoor buys and sells homes online, but it has been losing money and revenue has been shrinking, so the business looks weak. At 5 cents on 2026-10-13, the warrant looks very cheap, but it is far below the $17 needed to make it worth using; cheap does not make it safe or valuable.

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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