Item 1. Business
Item 1. Business.
Mission
Our mission is to tilt the world in favor of homeowners, by making homeownership simpler, faster, and fairer for everyone.
Our Company
We are a leading e-commerce platform for residential real estate transactions and the largest U.S. iBuyer. Since founding Opendoor in 2014, our goal has been to reinvent one of life's most important transactions by enabling homeowners to buy, sell, and move through a simple, certain, and largely digital experience. By leveraging artificial intelligence, data science and purpose-built software, we enable consumers to transact directly with Opendoor, eliminating traditional friction and intermediaries. Our platform combines product design and operations to create what we believe will be the future of how people buy or sell a home.
Residential real estate is the largest consumer category in the United States. In 2025 alone, more than four million existing homes were sold, representing approximately $1.7 trillion in transactions. Additionally, with approximately two-thirds of Americans living in a home they own, housing is the single largest consumer expenditure in the United States, ahead of transportation, food, insurance, and healthcare.
Yet, in a world where purchases are increasingly migrating online, the real estate transaction has largely remained unchanged. The typical process of buying or selling a home is complex, uncertain, time consuming, and primarily offline. A traditional home sale requires countless decisions and an average of six intermediaries, often brings unexpected costs, and takes approximately three months from start to finish. Ultimately, the consumer is left dissatisfied with a broken, disjointed experience.
Opendoor transforms the home selling and buying process into a simple and certain online experience. Since launch, customers have demonstrated their desire for our digital, on-demand real estate solution with over 294,000 homes bought and sold by Opendoor across the United States. In 2025, we sold over 11,700 homes and generated $4.4 billion in revenue while continuing to delight customers, maintaining an average Net Promoter Score (“NPS”) of nearly 80 from our sellers since 2021.
Since our initial market launch in Phoenix in 2014, we have expanded across the United States and operated in 50 markets going into 2025. In late 2025, we began expanding our buybox from a limited set of geographies to effectively nationwide coverage across the contiguous United States, with the ability to make offers in substantially all residential zip codes.
We believe we are still in the early stages of the digital transformation of real estate. Powered by artificial intelligence and advanced technology, we are building a real estate platform that enables buyers and sellers to transact with Opendoor digitally, with fewer intermediaries and with simplicity, certainty, and control over the entire process. We're creating an experience where consumers can buy or sell a home as easily as they book travel or shop online today.
Market Overview
Residential real estate is a massive offline market. Of the $1.7 trillion residential real estate transactions in 2025, the vast majority remain offline, channeled through traditional agents and brokers. Digital-first platforms like Opendoor that enable direct transactions captured less than 1% of the market, representing a significant opportunity to bring this category online.
The current landscape is highly fragmented. Today, nearly 90% of residential real estate transactions in the United States involve an agent. There are over two million licensed real estate agents in the United States, who each complete approximately four transactions on average per year, and many of whom do not solely work in real estate. Without appropriate support, this can lead to an inconsistent experience for consumers looking for guidance in what is typically the largest financial decision of their lives. Consumer satisfaction reflects this broken experience, with traditional real estate transactions generating Net Promoter Scores around 30, significantly below other major consumer categories and well below Opendoor's average NPS of nearly 80.
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Traditional transactions involve multiple value-capturing intermediaries . In a typical transaction, separate parties provide mortgage origination, title and escrow services, home warranties, insurance, and other related services, each capturing fees and adding complexity. By establishing direct relationships with consumers through a digital platform, Opendoor can offer these services seamlessly within a single integrated experience. This broader residential real estate ecosystem represents a substantial incremental market opportunity for a comprehensive digital platform.
Real estate is migrating online. Consumers are shifting their spend online and demanding digital-first experiences for greater efficiency, certainty, and speed. E-commerce now represents over 15% of total retail spending, and over 70% of travel bookings are completed online, yet less than 1% of residential real estate transactions are completed digitally, highlighting the significant transformation opportunity ahead. While the vast majority of home buyers browse for homes online, the transaction itself is still largely offline, creating an opportunity to eliminate traditional intermediaries and enable consumers to transact with simplicity and control.
The Problem
The traditional offline, intermediated process of selling or buying a home creates uncertainty, complexity, and lack of control for consumers. For nearly 90% of United States sellers that list their home on the market using an agent, the typical experience involves coordinating with multiple parties over several months, with significant risk of delays or deal failure. This broken process stems from reliance on fragmented intermediaries and analog systems, creating pain points at every stage:
• Find a listing agent. Before the seller can list, they must find a qualified agent. Approximately 80% of sellers contact only one real estate agent before listing.
• Prepare the home for listing. The seller often needs to get the home “sale ready.” This preparation, including cleaning, staging and any necessary upgrades, typically involves a lot of guesswork, time, and money.
• List the home. A home typically needs to be listed for over 50 days on average before it goes into contract.
• Host open houses and home visits . During the process, the seller will typically host dozens of strangers walking through their home, and deal with the hassle of cleaning up and clearing out, often on short notice and during inconvenient times.
• Receive an offer. Over 35% of home sellers reduce their asking price at least once, while over 20% of sellers offer incentives to attract buyers. Once an offer is received, the seller has to negotiate the offer, negotiate the closing date, and deal with any contingencies the buyer may have.
• Negotiate repairs or fix issues identified by buyers. After the offer is accepted, the buyer typically conducts an inspection, which often forces the seller to renegotiate the offer or fix issues, increasing the homeowner’s costs and potentially delaying closing.
• Wait for closing. Once the contract is signed, it still takes 35 days on average to close. The seller is reliant on the home buyer and a disparate set of counterparties — such as their agent, mortgage broker and escrow officer — to coordinate and complete the closing process.
• Fall-through risk. Finally, there is nearly a 20% chance the contract falls through between signing and closing (based on average multiple listing services (“MLS”) contract fall-through rates in our markets in 2025), forcing the home seller to start the entire process all over again.
• Risk of delisting . Even after enduring the listing process, there is no guarantee of a sale. In 2025, the ratio of homes being delisted relative to contracts has reached historical highs, frequently exceeding 25% on a monthly basis. This means a significant portion of sellers invest time and money only to remove their home from the market without a successful transaction.
Additionally, we estimate over one-half of home sellers are also home buyers. These customers face an additional set of challenges to line up their home purchase with their sale:
• Contingencies. Many Americans are reluctant to sell or cannot purchase their next home until they know with certainty what they can afford. Few Americans can qualify for two mortgages and few have enough money for two down payments. These buyers often have to submit offers contingent on selling their current home, putting them at a disadvantage versus other buyers.
• The “double move.” Alternatively, homeowners can sell their current home, move into a rental or hotel, and then buy a new home, forcing them to move twice and bear those costs.
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Our Solution
Opendoor is an end-to-end real estate platform enabling customers to sell and buy a home online. We offer a number of products designed to meet different seller and buyer needs while leveraging a common technology, pricing, and operations platform. By centralizing underwriting, home operations, and closing services, and by applying software, data science, and artificial intelligence to key decision points, we aim to deliver a transaction that is faster, more certain, and more transparent than the traditional process. Today, our primary product offerings include:
• Cash Offer. Launched in 2014, our core product enables homeowners to sell their home directly to Opendoor for cash. We then resell the home to a subsequent home buyer. By selling to Opendoor, homeowners can avoid the stress of open houses, preparing the home for market, overlapping mortgages, and the uncertainty that can come with listing a home on the open market. Using our website or mobile app, sellers can receive an estimated offer online. Eligible sellers may then be prompted to download our mobile application and complete a guided self-assessment of their home. Based on information provided and our internal valuation models, we present an offer. If a seller accepts the offer, a physical inspection is conducted to validate the home’s condition and key attributes. Material discrepancies may result in an adjustment to the offer. Sellers can then select their preferred closing date and, in many cases, close electronically.
For customers who sell directly to us, we charge a service fee. Our final purchase price also reflects expected repairs and home quality improvements that relate to our assessment of home condition and the expectations of buyers in the market. Our offering compares favorably to the traditional listing process, which can include a broker fee and a number of additional costs, such as resale concessions, inspection costs, staging costs, mortgage payments on two homes, and additional moving and storage costs. Many of these expenses may be unforeseen by the homeowner at the outset. Our final offer, inclusive of purchase price, service fee, and condition pricing adjustment, is intended to provide the homeowner with more certainty and transparency as to their expected sale proceeds, while removing the hassle of doing repairs and other work to get the home “sale ready.”
• Cash Plus Offer . Cash Plus is a variant of our core cash offer for existing homeowners who want the convenience and certainty of selling directly to Opendoor while retaining the potential to participate in resale upside. In a Cash Plus transaction, the homeowner sells to Opendoor, and typically receives a large portion of their expected net proceeds upfront. We complete any necessary repairs, list and resell the home, and, after recovering certain costs and our service fee, remit the remaining sale proceeds, if any, to the seller (subject to certain program restrictions). Cash Plus is designed for sellers who value a simple, certain sale and single move, but also want the opportunity to benefit if the home ultimately sells for more on the open market.
In addition to these products, we also offer customers integrated title insurance and escrow services through our subsidiaries. Currently, we offer title insurance services in a majority of our markets and on both the acquisition and resale side of the transaction. In the markets where our title services are offered, we provided these services for over 80% of Opendoor home transactions that closed in 2025. Our title and escrow companies charge buyers and/or sellers fees related to settlement and escrow services. Additionally, as agents for national title insurance underwriters, they charge title insurance premiums, which may be based on promulgated rates or rates filed by national title insurance companies. The fees charged by our title and escrow companies vary by market.
Our Business Model
We generate revenue primarily by acquiring homes directly from sellers and reselling them to buyers. Unlike traditional real estate brokers who earn commissions by facilitating transactions between third parties, we act as principal, purchasing and taking ownership of homes. This distinction shapes our revenue model, cost structure, and capital requirements.
Revenue Generation . We earn revenue through:
Home sales. We acquire homes from sellers at a purchase price that incorporates our expected unit economics and a condition‑based pricing adjustment for expected repairs and improvements. We then resell homes to buyers at market prices.
Service revenue. Our title and escrow subsidiaries provide settlement services for the majority of our transactions. We also earn limited revenue from capital-light products including referrals.
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Cost Structure .
Variable operating expenses tied to transaction volume include home acquisition costs, renovation and repair expenses, holding costs during ownership (property taxes, utilities, insurance, maintenance), financing costs on inventory, and selling costs.
Fixed and semi-fixed operating expenses include technology and development expenses, sales and marketing, general and administrative costs, and corporate overhead, which do not vary proportionally with transaction volume.
Our gross profit on a home sale reflects the difference between our resale price, net of buyer concessions, and our cost of revenue, which includes the property purchase price, acquisition costs, direct costs to renovate or repair the home and inventory valuation adjustments, if any. Contribution Profit on a home sale is similar to gross profit, but excludes valuation adjustments, if any, and includes holding costs and selling costs. Contribution Profit (Loss) is a non-GAAP financial measure. See “ Part II – Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Non-GAAP Financial Measures ” for further details and a reconciliation of Contribution Profit (Loss) to its nearest comparable GAAP measure.
Capital Requirements . We purchase homes and hold them as inventory on our balance sheet until resale. We primarily use non-recourse asset-backed debt to provide financing for our real estate purchases and renovations. See “Part II — Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources” for further detail.
Offers
AI-Powered Pricing at Scale. We generate demand for our products and services primarily through organic awareness, word-of-mouth, targeted paid media spend, and partnership channels such as our relationships with homebuilders, real estate agents, and online real estate portals. Home sellers visit our website or mobile app and answer a few questions about their home’s condition, features, and upgrades. Over 20% of all sellers who listed or sold their homes across our 21 oldest markets have previously entered their home address on Opendoor.com, indicating that roughly one in five sellers in these markets considers Opendoor when assessing their selling options. This high consideration rate reflects strong brand recognition and positions us to capture increasing market share as we continue to improve our product and customer experience. While it will take time for brand awareness in our newer markets to reach the levels of our more established markets, over time we anticipate being top-of-mind for a growing base of those sellers.
For eligible homes, customers receive an offer typically within minutes, which can be refreshed at any time through their personalized seller dashboard. As of December 31, 2025, our offers are algorithmically generated using our proprietary AI models with limited human intervention.
Data-Driven Home Assessment. To finalize our offer, we may conduct home assessments to verify the home's condition and determine necessary repairs or improvements. Customers can choose to complete self-guided assessments by uploading videos and photos through our app or we offer in-person home assessments. We typically apply a condition pricing adjustment informed by our assessment of the home and the estimated work needed to bring and maintain it in “sale‑ready” condition consistent with local buyer expectations. We have developed purpose-built software to guide these assessments and collect over 150 unique data points on average regarding a home’s condition and quality. This proprietary data feeds directly back into our pricing algorithms, creating a continuous learning loop that improves accuracy over time. After all the data has been collected and incorporated, each offer is reviewed and finalized by members of our pricing team, combining algorithmic precision with strategic judgment.
Offer Conversion. We closely track our “true seller” conversion rate, meaning the percentage of unique leads who either accept an Opendoor offer or list their home on the MLS within 60 days of receiving our offer. We believe this is an important measure of the strength of our value proposition.
Home acquisition and repairs
Once a seller accepts our purchase offer, we enable flexible closing timelines to meet their specific needs. This flexibility is particularly valuable for the majority of sellers who are also buyers, allowing them to coordinate both transactions and avoid double moves or carrying two mortgages simultaneously, a significant advantage over traditional sales where timing is controlled by multiple parties and uncertain closing dates. Prior to closing, we conduct a structured inspection of major systems to finalize repair scopes and condition-based pricing adjustments.
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Following acquisition, we conduct repairs and home quality improvements to ensure each property is in "sale ready" condition for resale. We engage third-party contractors within each market and leverage proprietary data from thousands of transactions to continuously optimize our repair strategies and cost estimates. Our AI-powered systems analyze neighborhood-level resale outcomes and repair performance data to improve accuracy and efficiency over time, enabling us to manage renovation scope and budget effectively at scale.
Home resale
After preparing homes for market, we leverage multiple distribution channels to generate buyer demand, including the Opendoor website and mobile app, local MLS, syndication across real estate portals, and property signage.
As the principal in the transaction rather than an intermediary, we operate from a structurally advantageous position. Our proprietary AI-powered pricing engine enables data-driven decisions across a large, diversified portfolio of homes, incorporating granular demand signals to optimize pricing and sell-through velocity. We manage inventory performance by listing cohort and by market, with our pricing models designed to achieve target margins while maintaining appropriate transaction velocity and portfolio health. This systematic, technology-driven approach to resale contrasts with traditional agent-led pricing, which relies primarily on individual judgment and limited comparable data.
Efficient inventory turnover, from acquisition through preparation, listing, and resale, is critical to our financial performance, as we bear holding costs (utilities, property taxes, maintenance, and insurance) and financing costs during our ownership period. Our technology platform and operational scale enable us to optimize this cycle systematically.
When we receive an acceptable offer, we enter into a resale contract. Buyers typically conduct inspections, finalize their mortgage application process and take possession of the home upon closing.
Industry-Leading Pricing Capabilities
Our ability to price homes competitively is fundamental to our business model. Since inception, we have prioritized investment in proprietary data collection, machine learning models, and systematic pricing operations that enable us to deliver competitive offers to customers while managing acquisition volumes and resale policy decisions to meet our margin and risk management objectives.
To create our final home offers, we algorithmically produce both an estimated valuation and an assessment of our confidence level in that estimate, and we then may further validate that estimate with a combination of virtual and in person assessments of the home, as well as additional review from our in-house pricing analysts, to finalize the offer. We dynamically adjust our offers to account for the level of certainty in pricing each home. This degree of certainty can be impacted by factors such as macro conditions, local market dynamics, the condition or attributes of a home, and the depth of home comparables. We recalibrate our view of pricing and where market values are trending using high-frequency detailed metrics across all aspects of our business, including inputs related to the dynamics of market demand and supply across markets, home types, and time periods. These factors are reflected in our spreads, which we define as total discount to our home valuation at the time of offer, less our 5% service fee.
While the real estate industry generates a wealth of publicly sourceable data, much of this data lacks the quality and specificity essential to price individual homes. Since our inception, we have invested in our research and data science teams, modeling capabilities, and systematized tooling to gather, aggregate, correct, and synthesize an expanding catalog of proprietary, hyper-local data in order to enhance and automate pricing decisions. We have also acquired third-party data to improve our pricing models and forecast quality. Our proprietary models are informed by millions of data points that have been collected and synthesized in a structured way.
• Proprietary offline data. We have conducted roughly one million assessments during which we collect over 150 data points on average for each home and its surroundings using custom inspection and operator tooling to systematically source and translate home features into a robust data library. These proprietary data points allow us to make annotations and adjustments to MLS and tax assessor data, as well as build out unique geospatial data assets, such as power line and busy road proximity. We also use AI to extract and automatically categorize data on the condition of homes from customer-provided inputs, such as chat conversations, images, and videos. Once we list a home for resale, we collect additional home-level demand data such as home visits and visitor feedback, which enable us to calibrate our resale strategy and acquisition home pricing.
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• Responsive feedback loop. Advancements in model sophistication and the integration of systematic modeling and human insights have accelerated our feedback loops, such that our pricing system can dynamically adjust and react to macro- and micro-economic conditions.
• Pricing competitiveness. Our unique data works in concert with our pricing algorithms. These algorithms use machine learning to drive pricing decisions through modeling of observed home sale prices, demand forecasting, outlier detection, risk assessment, and inventory management. Over time, we have added new data inputs and refined model logic, the benefits of which compound with experience and scale. In addition, our in-house pricing analysts review many of our homes to validate algorithmic outputs and incorporate local market expertise, generating feedback that continuously improves our models.
Robust Risk Management Framework
Forecasting and managing our business to seasonal and macro market changes is important for our overall results and balance sheet health. As noted above, since our inception, we have prioritized investment in our pricing capabilities across our home acquisition processes and our forecasting and resale systems, and we expect to continue to do so. These investments pair with a strong risk management focus that is embedded in our pricing, finance and operations teams. We evaluate the quality of our pricing models and processes using high-frequency detailed metrics across all segments of our business, including home acquisition, resale strategy and inventory health . All of our pricing decisions are managed centrally, giving us a high degree of control over our overall growth and margin objectives. While residential real estate markets are subject to fluctuations, as with any market, we believe we are well-positioned to manage our risk exposure due to the following:
• A critical component of our business model is managing inventory exposure and balancing growth, margin, risk, liquidity, and capital. Transaction velocity and hold times are important inputs into how we manage our inventory exposure and overall risk. We have historically concentrated our home purchases on those segments of the residential real estate market with the highest transaction volumes, which helps lower the risk of involuntarily holding a home for longer than anticipated.
• Our pricing models and inventory management systems are designed to recalibrate to market signals on a daily basis. In addition, we employ sophisticated resale pricing management systems that are designed to allow us to optimize sell-through and margin using real-time, local market demand information, including down to an individual home level. We believe that the quality and scale of information we utilize in our inventory management decisions and our ability to manage these decisions across a scaled, diversified portfolio provides us with a structural advantage over individual sellers or agents in the traditional home selling process.
• Our nationwide operations across a range of price points and home types allow us to benefit from significant diversification effects. Individual buyers and sellers are exposed to price and behavioral effects that are associated with specific markets or home segments. Our scale and diverse coverage allow us to mitigate such exposures across a wider range of markets and home segments so that our overall risk per home should decrease as we increase the breadth of markets, price points and home types across which we operate.
• Our listed homes are not occupied and are in sale-ready condition given the repairs and renovations we perform. We believe that this increases the liquidity of our portfolio.
• At any moment in time, a portion of our inventory is under resale contract; this means we have already found buyers for those homes and are in the process of closing the resale transactions. This further limits the exposure of our inventory portfolio to macro market changes.
Efficient Digital Platform
We continue to invest in a technology platform that underpins how we price homes, make offers, and run our operations. The platform combines proprietary data, software, and AI-driven tools to give sellers a simple, primarily digital experience while allowing us to respond quickly to changing market conditions. Our AI models and computer-vision tools help us assess home condition, and estimate the cost and time required to bring a home to “sale-ready” condition. By centralizing these workflows and using AI and automation to handle many of the steps required to price, purchase, prepare, and resell a home, we are replacing traditionally manual and fragmented processes with standardized, repeatable systems that are designed to operate at scale.
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AI‑Powered Operations and Centralization. Our proprietary operations technology, powered by AI and machine learning, drives efficiencies across home servicing functions, tying together pre‑acquisition assessments, pricing, repair scoping, centralized back‑office operations, renovation project management, and listed home maintenance. Our systems increasingly automate tasks that have historically required local, manual work, with centralized teams supervising exceptions and judgment‑driven decisions. This approach delivers cost efficiencies, quality improvements, and faster turnaround times. Critically, this centralized, AI‑enabled model underpins our expanded buybox initiative, allowing us to scale coverage across the contiguous United States without proportional increases in local market infrastructure.
One example is our virtual home assessment capability, where home sellers or their agents conduct guided virtual tours using our tools. Our systems apply computer vision and other AI models to extract home condition and feature data from the tour, and to compare the subject property to nearby recently sold homes. By combining these models with proprietary technology, industry best practices, and extensive data sets, we can underwrite many homes with minimal manual intervention and provide sellers with fast, competitive offers from centralized teams.
Scalable Trade Partner Network . We have established a network of over 450 trade partners and local service providers who utilize our proprietary technology to complete inspections, home repairs and maintenance. By integrating our technology platform directly with trade partners, we reduce delays, eliminate waste, and improve repair quality while capturing data at every step to continuously improve the system. This scalable third-party capacity model gives us flexibility to adapt to volume fluctuations and adjust operating expenses dynamically. Due to our scale, we have secured volume discounts on materials used in home repairs, creating further cost advantages.
Proactive Inventory Management. Our home inventory management systems and access technology ensure properties remain clean, well-maintained, and safe, enabling our on-demand self-tour experience for buyers. We receive timely home condition updates from our trade partners and service providers who visit properties multiple times per month, as well as from home shoppers and agents who provide feedback through our mobile application after tours. This continuous feedback loop enables rapid response to potential issues, ensuring listed inventory remains in optimal condition to maximize resale probability and transaction velocity.
Strategic Growth Priorities
Our growth strategy is to innovate and execute on the following key strategic priorities:
Increase penetration across our nationwide footprint. With the expansion of our buybox in late 2025, from a limited set of geographies to effectively nationwide coverage across the contiguous United States, we now have the ability to make offers in substantially all residential zip codes. We are focused on growing market share across this expanded footprint, as we believe greater scale improves awareness, trust and adoption, operational cost efficiencies, and pricing competitiveness and provides more data. We have historically demonstrated our ability to capture over 4% market share in multiple markets, with our oldest market cohorts showing deeper penetration over time. Our nationwide expansion enables us to serve customers wherever they are located, while we continue to drive deeper penetration in our core markets through partnerships and marketing campaigns that increase awareness and engage customers early in their home selling and buying research.
Expand product offerings. Our north star is to build the best end-to-end digital experience for every home seller and buyer. We are focused on continuing to refine our best-in-class seller experience, expand integrated services that capture additional transaction value, invest in enhancing the buyer experience, and create a seamless, vertically-integrated platform. We continually evaluate opportunities for additional products and ancillary services that strengthen our competitive moat and improve customer experience. For example, in February 2026, we became licensed to provide mortgage products and plan to expand these offerings.
Marketing
We utilize a diversified, multichannel approach in marketing, with a focus on efficient growth. Our marketing engine is powered by proprietary data, analytics, and AI that enable us to measure performance across channels, optimize spend allocation, and continuously improve customer acquisition efficiency. In addition to earned media and online real estate partnerships with leading industry brands, we leverage a diverse range of channels and platforms within paid advertising, including paid online channels, direct mail, television, radio, social media, and outdoor advertising. Our marketing efforts are amplified by a flywheel: our consistently high Net Promoter Scores generate word-of-mouth referrals, and our listed properties serve as physical touchpoints that drive neighborhood awareness and organic demand. We also continue to build our prospective customer base by maintaining relationships and re-engaging with homeowners who might not have been ready to
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sell during their first interaction with Opendoor. With the majority of sellers also being buyers, these homeowners represent a large part of our customer base that we are focused on converting when they are ready to transact. As more consumers start their home journey with Opendoor, we expect this prospective customer base to continue to expand over time.
Competition
The U.S. housing market is highly fragmented, with over four million residential real estate transactions per year. We view our primary competition as the approximately 99% of transactions that remain offline. As such, we compete directly with traditional, offline real estate brokers and agents. In addition, we also compete with other iBuyers, and our adjacent services compete with industry service providers, including title and escrow companies and mortgage originators. We believe our singular focus on an end-to-end digital solution, our best-in-class pricing engine, and our low-cost operational platform differentiate us from our competitors and provide a meaningful and sustainable competitive advantage.
Human Capital Resources
As of December 31, 2025, we employed 1,042 individuals, including 858 in the United States. None of our employees are currently represented by a labor organization or are party to any collective bargaining.
Our human capital resources objectives include, as applicable, identifying, recruiting, retaining, incentivizing, and integrating our existing and additional employees. The principal purposes of our equity incentive plans are to attract, retain, and motivate selected employees, consultants, and directors through the granting of stock-based compensation awards.
Technology
Our business is driven by proprietary systems that integrate AI models, data, and software across the entire home transaction lifecycle. We have assembled a team of engineers, machine learning specialists, research scientists, data scientists, designers, and product managers whose expertise spans a broad range of technical areas. Our technology portfolio includes:
Pricing systems that use centralized data infrastructure and machine learning models to appraise and price the homes we buy and sell, incorporating factors such as time of possession, seasonality, macroeconomic and local market conditions, expected renovation and holding costs, transaction costs, and anticipated resale proceeds.
Home assessment and inspection tools that guide pre‑acquisition and post‑acquisition workflows, standardize data collection on home condition and quality, and feed this information back into our AI-powered pricing and forecasting models.
Construction and renovation management software that centralizes repair scoping, project management, work order routing, and coordination with our network of trade partners and local service providers, with the goal of improving cost, quality, and cycle times.
Inventory and portfolio management systems that monitor sell‑through, holding periods, and unit economics at the home, cohort, and market level, and support data‑driven decisions about acquisition volumes, resale strategy, and pricing.
Consumer‑facing web and mobile applications that enable sellers to request offers, select closing dates, upload home information, and complete many aspects of the sale digitally, and enable buyers to discover, self‑tour, and purchase homes online.
We currently use third-party cloud computing services to allow us to quickly and efficiently scale up our services without upfront infrastructure costs, allowing us to maintain our focus on building great products. We also use third-party services to allow customers to digitally sign contracts, upload videos of their home and manage customer support services.
Intellectual Property
We rely on trademarks, domain names, patents, copyrights, trade secrets, contractual provisions and restrictions on access and use to establish and protect our proprietary rights. As of December 31, 2025, we had 11 trademark registrations and 13 patent registrations.
We are the registered holder of a variety of domestic domain names, including “opendoor.com.”
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In addition to the protection provided by our intellectual property rights, we enter into confidentiality and proprietary rights agreements with certain of our employees, consultants, contractors and business partners. Certain of our employees and contractors are also subject to invention assignment agreements. We further control the use of our proprietary technology and intellectual property through provisions in both our general and product-specific terms of use on our website.
Government Regulation
We operate in highly regulated businesses through a number of different channels across the United States. As a result, we are currently subject to a variety of, and may in the future become subject to additional, federal, state and local statutes and regulations in various jurisdictions (as well as judicial and administrative decisions and state common law), which are subject to change at any time, including laws regarding the real estate and mortgage industries, settlement services, mobile and internet based businesses and other businesses that rely on advertising, as well as data privacy, consumer protection, and employment laws.
In particular, the advertising and sale of homes is highly regulated by states in which we do business, as well as the U.S. federal government. Regulatory bodies include the Consumer Financial Protection Bureau (“CFPB”), the Federal Trade Commission (“FTC”), the Department of Justice (“DOJ”), the Department of Housing and Urban Development (“HUD”), and various state licensing authorities, consumer protection agencies, financial regulatory agencies and insurance agencies. We are subject to compliance audits of our operations by many of these authorities. For further discussion of the various risks we face from existing and potential regulation and compliance matters, see “Part I – Item 1A. Risk Factors — Risks Related to Regulatory Compliance and Legal Matters . ”
Additionally, laws, regulations, and standards covering marketing and advertising activities conducted by telephone, email, mobile devices, and the internet, as well as laws governing data privacy, security, and the processing of personal information, may be applicable to our business, such as the Telephone Consumer Protection Act (“TCPA”), the Telemarketing Sales Rule, the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (the “CAN-SPAM Act”), the the California Consumer Privacy Act, as amended by California Privacy Rights Act (the “CCPA”), and similar state consumer protection laws. Through our various subsidiaries, we also buy and sell homes, provide real estate brokerage, title insurance and settlement services, operate a mortgage business, and provide other product offerings, which results in us receiving or facilitating transmission of personal information. This information is increasingly subject to legislation and regulation in the United States. These laws and regulations are generally intended to protect the privacy and security of personal information, including customer Social Security numbers and credit card information that is collected, processed and transmitted. These laws also can restrict our use of this personal information for other commercial purposes, including advertising. For a discussion of the various risks we face with respect to the collection and processing of personal information, see “Part I – Item 1A. Risk Factors — Risks Related to Our Intellectual Property and Technology . ”
To provide the broad range of products and services that we offer customers, certain of our subsidiaries maintain real estate brokerage, title insurance and escrow, mortgage and general contractor licenses, and we may in the future apply for additional licenses as our business grows and develops. These entities are subject to stringent state and federal laws and regulations, including, but not limited to, the Real Estate Settlement Procedures Act (“RESPA”) and those administered by applicable state departments of real estate, banking, and consumer services. These entities are also subject to the scrutiny of state and federal government agencies as licensed businesses as noted above. As of December 31, 2025:
• Opendoor Brokerage LLC and Opendoor Brokerage Inc., collectively, hold real estate brokerage licenses in 44 states and the District of Columbia.
• OS National LLC, and its subsidiaries, OSN Texas LLC, OS National Alabama LLC, and OSN Title Company are licensed as title agents in 28 states. In addition, OS National LLC, and its subsidiary, OSN Escrow Inc., are licensed as escrow agents in six states and OS National LLC is authorized to conduct the business of title insurance in five additional states that do not require entity and/or individual licensing.
• Tremont Realty LLC (dba Opendoor Connect), holds real estate brokerage licenses in Texas and North Carolina.
In addition, as of February 13, 2026, our wholly-owned mortgage subsidiary holds a mortgage license in Colorado.
For certain licenses, we are required to designate individual licensed brokers of record, qualified individuals and control persons.
Mortgage products are regulated at the state level by licensing authorities and administrative agencies, with additional oversight from the CFPB and other federal agencies. These laws generally regulate the manner in which lending and lending-
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related activities, including mortgage brokering, are marketed or made available to consumers, including, but not limited to, advertising, finding and qualifying applicants, the provision of consumer disclosures, payments for services, and record keeping requirements; these laws include, at the federal level, RESPA, the Fair Credit Reporting Act (as amended by the Fair and Accurate Credit Transactions Act), the Truth in Lending Act (including the Home Ownership and Equity Protection Act of 1994), the Equal Credit Opportunity Act, the Fair Housing Act, the Gramm-Leach-Bliley Act, the Electronic Fund Transfer Act, the Servicemembers Civil Relief Act, the Military Lending Act, the Homeowners Protection Act, the Home Mortgage Disclosure Act, the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, the Federal Trade Commission Act, the Dodd Frank Wall Street Reform and Consumer Protection Act of 2010, the Bank Secrecy Act (including the Office of Foreign Assets Control and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act), the TCPA, the Mortgage Acts and Practices Advertising Rule (Regulation N), the CARES Act, all implementing regulations, and various other federal, state and local laws. The CFPB also has broad authority to enforce prohibitions on practices that it deems to be unfair, deceptive or abusive. Additionally, state and local laws may restrict the amount and nature of interest and fees that may be charged by a lender or mortgage broker, impose more stringent privacy requirements and protections for servicemembers, and/or otherwise regulate the manner in which lenders or mortgage brokers operate or advertise.
Seasonality
For information regarding the seasonality of our business, please see “ Part II – Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations – Factors Affecting our Business Performance.”
Corporate History and Background
Opendoor Technologies Inc. was formed through a business combination with Social Capital Hedosophia Holdings Corp. II (“SCH”), a Cayman Islands exempted company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Business Combination, pursuant to which Opendoor Labs Inc. became a wholly owned subsidiary of SCH and SCH changed its name from “Social Capital Hedosophia Holdings Corp. II” to “Opendoor Technologies Inc.,” was completed on December 18, 2020 (the “Closing”), and was accounted for as a reverse recapitalization, in accordance with accounting principles generally accepted in the United States of America (“GAAP”).
Available Information
Our website is www.opendoor.com. At our Investor Relations website, investor.opendoor.com, we make available, free of charge, a variety of information for investors, including our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports, proxy statements, and other information, as soon as reasonably practicable after we electronically file that material with, or furnish it to, the Securities and Exchange Commission (“SEC”). We also use the Investor Relations page of our website for purposes of compliance with Regulation FD and as a routine channel for distribution of important information, including blogs, news releases, analyst presentations, financial information and corporate governance practices. The information found on our website is not part of this or any other report we file with, or furnish to, the SEC. Our SEC filings are also available to the public at the SEC's website at http://www.sec.gov.
Our investors and others should note that we have used, and intend to continue to use, our website, press releases, Securities and Exchange Commission (“SEC”) filings, blogs, community hub and social media accounts, as well as the X (formerly known as Twitter) accounts of our Chief Executive Officer, @Nejatian, and @Opendoor, as means of disclosing material non-public information and for complying with our disclosure obligations under Regulation FD. We encourage investors and others to review the information we make public in the foregoing locations as such information could be deemed to be material information. Please note that this list may be updated from time to time. Investors should subscribe to these social media accounts and our investor alerts, in addition to following our press releases, SEC filings, public conference calls and webcasts.