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Opendoor's AI-Powered Pivot: Charting a Path to Profitability?
16 Nov
Summary
- Opendoor leveraging AI to improve margins and financial health
- Company still struggling with low gross margins and profitability
- Adjusted earnings metrics may not tell the full story
As of November 16th, 2025, Opendoor Technologies (NASDAQ: OPEN) has been making efforts to improve its financial health and profitability through the use of artificial intelligence (AI). The company, which is in the business of flipping houses, recently reported its third-quarter earnings, with its new CEO Kaz Nejatian highlighting the launch of over a dozen AI-powered products that should help reduce the company's reliance on consultants and lower its costs.
However, Opendoor still has a long way to go to achieve profitability. For the period ended September 30th, 2025, the company's revenue declined by 34% year-over-year, and its gross profit margin stood at just 7.2%, down from 7.6% in the prior-year period. While the company says it is on track to hit breakeven on a 12-month go-forward basis by the end of next year, this will be based on adjusted net income, which can involve various adjustments and may not reflect the company's true accounting earnings.
Investors should remain cautious about Opendoor's progress, as the company still faces significant challenges in improving its margins and achieving sustainable profitability. The use of AI may help, but the company will need to demonstrate tangible results in the coming quarters to convince investors of its long-term viability.
