The home-buying giant shifts its focus toward artificial intelligence after a disappointing earnings quarter.

Opendoor Falls Short of Expectations

November 6, 2025: Opendoor Technologies has reported weaker-than-expected third-quarter earnings, highlighting ongoing challenges in the real estate tech sector. The company brought in approximately $915 million in revenue, marking a significant decline compared to the previous year. Despite narrowly beating Wall Street estimates, Opendoor still posted a net loss of around $90 million — sparking a sharp drop in after-hours trading.

Investors reacted swiftly, with shares plunging more than 14% following the report. The results reflect continued difficulties in stabilizing the company’s business model amid high mortgage rates, reduced home sales, and tightening housing market conditions.

CEO Announces Major AI Transformation

In response to the ongoing losses, newly appointed CEO Kaz Nejatian announced a sweeping corporate overhaul centered around artificial intelligence. During the company’s earnings presentation, Nejatian declared that Opendoor would be “refounded as a software and AI company.”

The strategic pivot signals a major change for Opendoor, which built its name as an iBuying platform — purchasing homes directly from sellers, renovating them, and reselling them for profit. Under Nejatian’s new direction, the company plans to leverage AI-driven tools to optimize home pricing, streamline operations, and enhance acquisition speed.

He also told employees that the company’s new motto would be “AI obsessed,” indicating that traditional workflows such as manual spreadsheets and static analysis tools would be replaced by advanced machine learning systems.

Challenges and Market Reaction

While the AI transition has generated excitement, analysts warn that execution risks remain high. The company’s sharp revenue drop, continued net losses, and shrinking market share reflect structural issues that technology alone may not solve.

To achieve Nejatian’s goal of breaking even by the end of next year, Opendoor will need to deliver tangible cost reductions and stronger profit margins — without alienating customers or over-relying on automation.

Industry observers note that this overhaul could be a make-or-break moment for the company. If successful, Opendoor could redefine itself as a lean, tech-driven player in the property sector. If not, it risks falling further behind competitors who are adapting more cautiously to AI integration.

Looking Ahead

Investors and analysts alike will be watching several key factors:

Whether Opendoor’s AI-powered pricing tools can increase efficiency and profit margins.

How the company manages layoffs or workforce restructuring tied to the shift.

Whether Nejatian’s ambitious goal of achieving profitability by the end of next year is realistic in a cooling housing market.

HOLR breaks down the story here: Opendoor’s disappointing quarter may mark the end of its traditional iBuying identity and the beginning of its transformation into an AI-driven real estate platform. The company’s bold move underscores the growing influence of artificial intelligence in the housing market — but whether it leads to revival or further losses remains to be seen.