Opendoor Technologies Inc's stock plummeted 8.74% in pre-market trading on Friday, February 28, 2025, after the company reported a wider net loss of $113 million for the fourth quarter of 2024, compared to a loss of $78 million in the same period last year. This disappointing performance came despite a 25% increase in revenue to $1.08 billion, exceeding analyst estimates.

The online real estate platform attributed the larger loss to the ongoing challenges faced by the housing market, including elevated mortgage rates and low inventory levels, which impacted buyer affordability and transaction volumes. Opendoor also struggled with inventory management, as a significant portion of homes remained on the market for an extended period.

In response to the challenging environment, Opendoor unveiled a strategy to optimize profitability and drive sustainable growth. The key elements of this strategy include:

1. Setting spreads to optimize for contribution margin, with a bias towards managing risk in the depressed housing backdrop.

2. Enhancing the customer experience and improving pricing models to drive higher conversion rates.

3. Aligning marketing efforts with seasonal buying and selling patterns to maximize the value of each transaction.

4. Continued focus on operational discipline and driving efficiencies throughout the year.