Opendoor: Our Path Forward

A Note to Our Shareholders and Community

In recent days, we’ve received questions about our strategy, our business model and our long-term vision. To respond, we want to bring our story together in one place for shareholders, customers, agents, and anyone interested in what we’re building. We’re confident in the evolution we’ve embarked on as a business, and we want to bring everyone along on the Opendoor journey.

Ultimately, our primary goal remains unchanged: to make selling a home simple, certain, and fast. Our vision is bigger than ever: to be the most trusted and most effective place to sell a home.

Why We Exist

Selling a home is one of the most important – and most stressful – transactions most people will ever make. The process is slow, fragmented, and unpredictable, often leaving sellers feeling powerless. It hasn’t meaningfully improved in decades. 

Opendoor changed that by pioneering the instant cash offer: lock in the price for your home, skip showings and repairs, and close on your timeline. A simple idea – but one that is not easy to deliver at scale.

To make it possible, we’ve built unique capabilities over the past decade:

• A trusted brand and marketing engine that consistently attracts ready-to-act sellers.

• Pricing intelligence powered by the richest proprietary dataset in the industry.

• Operational excellence in assessing, repairing, maintaining, and selling homes.

• Capital markets expertise to fund transactions at scale.

• Integrated title and escrow for a seamless close.

Our data moat is central to the differentiated experience we offer. Every home visit, repair assessment, and offer generates rich, unstructured data – photos, videos, agent commentary, and customer feedback – much of it collected in the physical world by walking homes every day. This proprietary data powers our AI, which drives pricing accuracy, reduces inventory costs, and improves margins. Data and AI are not side projects – they are our DNA and our competitive advantage.

Why We’re Evolving

Customers love our cash offer product. Our NPS of nearly 80 over the last four years speaks for itself. 

But building the residential real estate platform of the future requires vision, urgency, and a bias toward action. We know we must continue to push forward in service of our goal.

The cash offer business is capital-intensive and exposes us to economic and housing market cycles. In tougher markets, like we’ve been navigating over the last three years, spreads widen, fewer customers accept, and volumes drop. 

To build a business that can serve more sellers with more resilient financial performance, we must offer consumers and agents additional solutions that complement our core cash offer. Practically, this means:

• Offering a wider set of solutions so we can convert far more of the sellers who come to us.

• Reducing reliance on capital-heavy revenue.

• Building steadier, capital‑light earnings streams with stronger margins that perform in up markets and down.

This evolution requires building on our current capabilities – our “cash offer superpowers” – and then amplifying them. It means empowering agents to bring a broader set of Opendoor solutions directly to their clients and making our platform distributable to serve even more sellers, while introducing lower-risk products that improve economics.

Expanding Our Platform: A Step Toward Our Vision

As part of our vision to be bigger and better, we are evolving from a single-product operator into a more comprehensive platform. As the next step, we are introducing two solutions that meet sellers at the moment they decide to move:

1. Opening our platform to qualified agents through Key Connections. These partner agents can leverage our pricing intelligence, operational capabilities, and high-intent seller funnel to win and convert more sellers. This builds deeper partnerships and gives sellers more flexible options.

2. Expanding our product suite with Cash Plus. Cash Plus is a hybrid product that combines the certainty and simplicity of a cash offer with the potential upside of a market listing. For sellers, it’s the best of both worlds.

These solutions will reshape our business: serve more sellers, capture more value from existing leads, generate even more proprietary data to strengthen our AI, and help us build a more balanced, capital-light, profitable company.

This isn’t the end state of our strategic evolution. It is a waypoint as we continue to innovate and explore new and novel ways to serve consumers and agents with solutions that meet their needs. We see a clear future path to attaching additional revenue via agents, expanding into adjacent seller services to provide a more seamless move, and generating incremental income via areas such as mortgages, home insurance, home warranty, and other moving services.

The Flywheel Effect: Value for All

I’ll share more on Key Connections and Cash Plus in the coming weeks, but the TL;DR is that they will enhance the value proposition of our platform:

• Sellers get more choice, more certainty, and tailored, expert guidance.

• Agents get the best leads in the industry and a suite of differentiated solutions to win business in competitive markets. Agents can expand their business knowing that they can rely on Opendoor. 

• Opendoor expands its reach, increases conversion, grows capital‑light revenue streams, and builds a more resilient business. We go from serving a one-time seller to building a vibrant ecosystem with professionals, the people who are in the trenches each day. Over time, we can expand the range of products and services we can distribute via our agent partners.

The more agents we enable, the more sellers we serve. The more transactions we handle, the more data we generate. The more data we generate, the smarter our AI becomes. Smarter AI improves offers, conversion, and service, which attracts even more customers. This flywheel compounds value for customers, agents, and shareholders alike.

Value Creation – Near-Term and Long-Term 

Today’s challenging real estate market conditions – with high spreads and low volumes – won’t last forever. We are making strides nonetheless. When the market recovers, Opendoor will capture the pent-up demand to move with a stronger, more efficient model. Our focus now is on what we can control:

• Increasing cash-backed conversion by giving sellers more than one selling option, with expert guidance from trusted agents and advisors.

• Capturing incremental margin from sellers who previously walked away.

• Improving product mix to protect margins, reduce capital needs, and increase inventory quality.

• Using AI to sharpen pricing, automate workflows, and improve the customer experience.

• Expanding into adjacent services – mortgage, insurance, home warranty, moving, etc. – to create additional revenue streams.

The Path Forward

Our objective to make Opendoor the undisputed best place to sell a home is unwavering. Achieving this requires becoming the indispensable platform for every home seller and for the agents who serve them.

This is the next chapter in our promise to transform how homes are sold. But it’s not the final chapter – nowhere close to it.

Here’s the vision: with a national footprint and unmatched trust, sellers will start with Opendoor knowing they’ll find the best path to sell on their terms. Great listing agents will work with us daily, using our high-intent leads, tools, and products to grow their business, making their success inseparable from ours.

We will have then transformed from a single product company into a scaled platform fulfilled by Opendoor, capturing a larger share of the market. We will leverage all our capabilities – our data moat, AI advantage, pricing edge, operational muscle, and marketing reach – to reach more sellers, in more channels, and generate more durable financial performance.

We know the value we bring to the residential real estate market, and will prove it each day. As we do, we are confident that we are building a platform that will be more valuable in the future than it is today.

We are committed to ongoing, transparent communications. This blog is just one in a series of posts designed to address questions and provide deeper insights into where we’re going. Our next post will cover our AI roadmap and product innovation that will drive the future of Opendoor. 

Stay tuned.

Forward Looking Statements

This blog post contains certain forward-looking statements within the meaning of Section 27A the Private Securities Litigation Reform Act of 1995, as amended. All statements contained in this blog post that do not relate to matters of historical fact should be considered forward-looking, including statements regarding the current and future health and stability of the real estate housing market and general economy; whether we are able to reshape our business by serving more sellers, capturing more value from existing leads, generating more proprietary data to strengthen our AI, and building a more balanced, capital-light, profitable company; our ability to build a business that can serve more sellers and agents with more resilient financial performance and capital-light revenue streams as we build the best place to sell; our ability to generate incremental income via areas such as mortgages, home insurance, home warranty, and other moving services; whether Cash Plus and Key Connections enable us to enhance the value proposition of our platform and to expand our reach, increase conversion, grow capital‑light revenue streams, and build a more resilient business; our ability to capture pent-up demand to move with a stronger, more efficient model if and when the real estate market recovers; our ability to transform from a 1P-focused operator into a scaled platform by capturing a larger share of the market; and our business strategy and plans, including plans to continue to invest in and enhance our products. These forward-looking statements generally are identified by the words “anticipate”, “believe”, “contemplate”, “continue”, “could”, “estimate”, “expect”, “forecast”, “future”, “guidance”, “intend”, “may”, “might”, “opportunity”, “outlook”, “plan”, “possible”, “potential”, “predict”, “project”, “should”, “strategy”, “strive”, “target”, “vision”, “will”, or “would”, any negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties that can cause actual results to differ materially from those in such forward-looking statements. The factors that could cause or contribute to actual future events to differ materially from the forward-looking statements in this blog post include but are not limited to: the current and future health and stability of the economy, financial conditions and residential housing market, including any extended downturns or slowdowns; changes in general economic and financial conditions (including federal monetary policy, the imposition of tariffs and price or exchange controls, interest rates, inflation, actual or anticipated recession, home price fluctuations, and housing inventory), as well as the probability of such changes occurring, that impact demand for our products and services, lower our profitability or reduce our access to future financings; actual or anticipated fluctuations in our financial condition and results of operations; changes in projected operational and financial results; our real estate assets and increased competition in the U.S. residential real estate industry; our ability to operate and grow our core business products, including the ability to obtain sufficient financing and resell purchased homes; investment of resources to pursue strategies and develop new products and services that may not prove effective or that are not attractive to customers and/or partners or that do not allow us to compete successfully; our ability to acquire and resell homes profitably; our ability to grow market share in our existing markets or any new markets we may enter; our ability to manage our growth effectively; our ability to expeditiously sell and appropriately price our inventory; our ability to access sources of capital, including debt financing and securitization funding to finance our real estate inventories and other sources of capital to finance operations and growth; our ability to maintain and enhance our products and brand, and to attract customers; our ability to manage, develop and refine our digital platform, including our automated pricing and valuation technology; our ability to realize expected benefits from our restructuring and cost reduction efforts; our ability to comply with multiple listing service rules and requirements to access and use listing data, and to maintain or establish relationships with listings and data providers; our ability to obtain or maintain licenses and permits to support our current and future business operations; acquisitions, strategic partnerships, joint ventures, capital-raising activities or other corporate transactions or commitments by us or our competitors; actual or anticipated changes in technology, products, markets or services by us or our competitors; our ability to protect our brand and intellectual property; our success in retaining or recruiting, or changes required in, our officers, key employees and/or directors; the impact of the regulatory environment and potential regulatory instability within our industry and complexities with compliance related to such environment; any future impact of pandemics, epidemics, or other public health crises on our ability to operate, demand for our products and services, or general economic conditions; our ability to maintain our listing on the Nasdaq Global Select Market; changes in laws or government regulation affecting our business; the impact of pending or future litigation or regulatory actions; and the volatility in the price of our common stock. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described under the caption “Risk Factors” in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2025, as updated by our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 and other filings with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and, except as required by law, we assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. We do not give any assurance that we will achieve our expectations.