Opendoor Stock Surges as Strategic Pivot Drives Sharp Rise in Home Buying
San Francisco, Thursday, 19 February 2026.
Investors ignored a profit miss to rally shares 13% after Opendoor reported a 46% surge in home purchases, signaling its strategic turnaround is finally gaining momentum.
Accelerating Acquisitions Amid Mixed Financials
Opendoor Technologies (NASDAQ: OPEN) shares rallied 13.1% in after-hours trading following the release of its fourth-quarter results, as investors prioritized the company’s operational resurgence over a bottom-line miss [6]. While the digital real estate platform reported a loss of $1.26 per share—significantly wider than the analyst consensus of $0.12—revenue for the period reached $736 million, comfortably exceeding Wall Street’s expectations of approximately $576.94 million [6]. This revenue beat was driven by a sharp increase in activity; total homes purchased surged 46% quarter-over-quarter [1][6]. This marks a critical pivot from the third quarter of 2025, when acquisition volume had plummeted to 1,169 homes, the lowest level since 2017 excluding the pandemic era [5].
Operational Efficiency and Inventory Health
The earnings report highlighted substantial progress in Opendoor’s “2.0” strategy, which focuses on higher velocity and reduced capital intensity [6]. Internal metrics indicate a healthier balance sheet, with the percentage of homes on the market for more than 120 days falling to 33%, a marked improvement from 51% in the previous quarter [6]. Additionally, the company reduced its inventory days in possession by 23% during the fourth quarter, suggesting that older inventory is clearing effectively [6]. These efficiency gains were accompanied by disciplined cost management, as fixed operating expenses declined to $35 million [6]. CEO Kaz Nejatian described these results as evidence of “structural improvements” in pricing and inventory turns [6].
Future Outlook and Strategic Backing
Looking toward the long term, Opendoor’s management reaffirmed its commitment to reaching breakeven Adjusted Net Income by the end of 2026 [5][6]. For the first quarter of 2026, the company anticipates a revenue decline of approximately 10% sequentially, with an adjusted EBITDA loss projected between $30 million and $35 million [6]. Investor confidence was further bolstered by the disclosure that major homebuilder Lennar filed a stake of 18.8 million shares in the company on February 18 [5]. Furthermore, the “Cash Plus” program has expanded to account for 35% of weekly volume, serving as a key indicator of the platform’s evolving capital efficiency [6].