Opendoor Q2 Loss Widens to $162M as Inventory Builds and Cash Burns; Convertible Notes Loom

summarizeSummary

Opendoor reported a $162 million Q2 net loss, up from $29 million a year ago, as stock-based compensation spiked and inventory nearly doubled. Cash burn accelerated, and near-term convertible note maturities add urgency.

check_boxKey Events · Earnings and Guidance · OPEN

• Q2 Net Loss Widens to $162M

  Net loss increased to $162 million from $29 million in Q2 2025, driven by a $107 million jump in general and administrative expenses, including $100 million in stock-based compensation for market-condition RSUs.

• Inventory Nearly Doubles to $1.85B

  Real estate inventory rose to $1.845 billion from $925 million at year-end 2025, as the company purchased 4,378 homes in Q2, up from 1,757 a year ago.

• Operating Cash Burn Hits $964M in H1

  Cash used in operations was $964 million in the first half of 2026, driven by the inventory build and net losses, reducing cash and equivalents to $896 million from $962 million at year-end.

• Convertible Notes Mature or Become Convertible

  The $135 million 2026 Notes mature on August 15, 2026, and the $62 million 2030 Notes are currently convertible at the option of holders, both classified as current liabilities.

auto_awesomeAnalysis · OPEN · Real Estate & Construction

Opendoor's Q2 loss more than quintupled year-over-year to $162 million, driven by a surge in stock-based compensation tied to executive market-condition RSUs. While gross margins improved, the company aggressively expanded its home inventory to $1.85 billion, consuming $964 million in operating cash in the first half. With $896 million in cash remaining and $197 million in convertible notes due or convertible within months, the balance sheet is under pressure. The market will focus on whether the inventory bet pays off or leads to further cash strain.