Opendoor is piloting a North Carolina co-ownership program that requires 2% down, while its core business rebuilds inventory turnover and aims for adjusted profitability despite a large net loss.
Opendoor is testing a co-ownership product that lowers the initial cash needed to buy a home. Its new Own program is taking a North Carolina waitlist and requires a 2% down payment, giving the company another route into a transaction beyond buying and reselling homes itself.
The idea could address a real affordability problem, but the economic details matter. Co-ownership changes how appreciation, maintenance costs, selling decisions and downside risk are shared. Until Opendoor publishes full customer terms and meaningful adoption data, the program should be viewed as a pilot rather than a proven growth engine.
The launch comes during a difficult turnaround. Second-quarter revenue was $883 million, down from $1.57 billion a year earlier, and the company recorded a $162 million net loss. Some operating indicators improved. Contribution margin rose to 5.8% from 4.4% a year earlier, while the share of homes listed for more than 120 days fell to 9% from 36%.
Opendoor also accelerated acquisitions. It purchased 4,378 homes in the quarter, up 149% from a year earlier, and ended June with 5,459 homes in inventory valued at $1.85 billion. The company generated 6,908 acquisition contracts on $5 million of marketing spending, compared with much higher marketing costs when it last exceeded 6,000 contracts in 2022.
Faster purchases create future revenue, but they also increase capital at risk if resale demand weakens or mortgage rates stay high. The improvement in aged inventory reduces one hazard, while the larger inventory balance creates another. This is why the path to profit depends on both volume and unit economics.
Management said it was targeting positive adjusted net income on a 12-month forward basis by the end of 2026. It also expected third-quarter revenue to grow at least 20% from a year earlier and contribution margin of roughly 4% to 4.5%. Those are company targets, not achieved results.
The 2% down pilot broadens Opendoor's attempt to earn revenue from more parts of the housing transaction. The investment case will strengthen only if the company can show that new products attract customers without adding disproportionate credit, funding or operational risk, while the core resale business moves toward sustained profitability.
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