Why Did Opendoor (OPEN) Stock Jump 18%? Strong Q4 Results Fuel Rally

Opendoor Technologies Inc. (NASDAQ: OPEN) shares surged roughly 18% in premarket trading on February 20, 2026, following the release of its fourth-quarter 2025 earnings after market close the prior evening. The San Francisco-based iBuyer delivered revenue and adjusted EBITDA results that exceeded Wall Street consensus estimates, convincing investors that its “Opendoor 2.0” transformation strategy is beginning to bear fruit.

Despite a steep GAAP net loss driven by a one-time debt extinguishment charge, the market focused on accelerating home acquisition volumes and meaningful operational improvements across the business.

Q4 Update: Higher Home Purchases and Better Execution

Opendoor reported Q4 2025 revenue of $736 million, comfortably beating the Wall Street consensus of approximately $577–$594 million, and adjusted EBITDA of -$43 million came in better than the -$49 million consensus estimate

. These headline beats provided the catalyst for the after-hours and premarket rally, with shares climbing 13% in Thursday after-hours trade before extending gains to roughly 18% in Friday premarket. The results signaled that the company’s pricing discipline and inventory management are beginning to translate into measurable financial improvement.

The GAAP EPS figure of -$1.26 per share was a significant miss against the -$0.11 consensus, but investors largely looked past it. The loss was inflated by a $933 million charge related to debt extinguishment, a non-recurring item tied to the company’s balance sheet restructuring. S

tripping out that charge, the underlying operational performance told a much more encouraging story. The company also reported contribution profit of $7 million for the quarter, though this lagged the $13 million Visible Alpha consensus.

Among the most closely watched operational metrics, total homes purchased rose 46% quarter-over-quarter, reflecting a renewed push to scale acquisitions after a prolonged period of caution. The percentage of homes sitting on the market for more than 120 days fell sharply to 33%, down from 51% in Q3 2025, a strong signal that inventory is turning faster and pricing has become more accurate.

CEO Kaz Nejatian credited structural improvements in how the company operates: “More accurate pricing, faster inventory turns, and disciplined selection. The evidence of progress is clear.”

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OPEN Stock Brief: Premarket Move and Key Metrics

As of the premarket session on February 20, 2026 at approximately 5:56 AM EST, OPEN was trading at $5.48, up $0.83 or roughly +17.85% from its prior close of $4.63. The stock closed February 19 at $4.65, up just 0.43% on the regular session before the earnings release ignited after-hours buying. The intraday range on February 19 was $4.48 to $4.84, and the 52-week range spans a wide $0.51 to $10.87, reflecting just how volatile this stock has been over the past year.

On a trailing one-year basis, OPEN has returned an impressive +201.95%, vastly outpacing the S&P 500’s +11.68% gain over the same period. However, the stock remains down about 20% year-to-date through February 19, and its five-year return of -85.28% is a reminder of how severely the iBuying model was punished during the post-pandemic housing downturn.

The market cap as of the close stood at approximately $4.44 billion, with an enterprise value of around $5.06 billion. Analyst price targets range from $1.00 on the low end to $8.00 on the high end, with the average sitting at $4.33, just below the current trading price, suggesting the post-earnings move has pushed shares slightly ahead of the consensus view.

Looking ahead, Opendoor guided for Q1 2026 revenue of approximately $662 million, about 10% below Q4’s $736 million, and an adjusted EBITDA loss in the low-to-mid $30 million range — an improvement from Q4’s -$43 million. The company also expects Q1 contribution margin to be its highest since Q2 2024.

Most critically, management reiterated its goal of achieving positive adjusted net income on a rolling 12-month basis by the end of 2026, a target that investors will be watching closely as the ultimate proof point of the Opendoor 2.0 transformation.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.