Opendoor Technologies Inc.

1. DESCRIPTION OF BUSINESS AND ACCOUNTING POLICIES

Description of Business

Opendoor Technologies Inc. (the “Company” and “Opendoor”), including its consolidated subsidiaries and certain variable interest entities (“VIEs”), is a leading e-commerce platform for residential real estate transactions. By leveraging its data-driven pricing models and integrated local operations, Opendoor is working towards a future that enables sellers and buyers of residential real estate to experience a simple and certain transaction that is dramatically improved from the traditional process. The Company was incorporated in Delaware on December 30, 2013.

The Company completed a business combination with Social Capital Hedosophia Holdings Corp. II (“SCH”), a Cayman Islands exempted company formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (the “Business Combination”). The Business Combination, pursuant to which Opendoor Labs Inc. became a wholly owned subsidiary of SCH and SCH changed its name from “Social Capital Hedosophia Holdings Corp. II” to “Opendoor Technologies Inc.”, was completed on December 18, 2020, and was accounted for as a reverse recapitalization, in accordance with GAAP.

Basis of Presentation and Principles of Consolidation

The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to generally accepted accounting principles in the United States of America (“GAAP”). The condensed consolidated financial statements as of September 30, 2026 and December 31, 2025 and for the three- and nine-month periods ended September 30, 2026 and 2025 include the accounts of Opendoor, its wholly owned subsidiaries and VIEs where the Company is the primary beneficiary. The accompanying unaudited condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of the results for the interim periods presented. Intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements herein.

The accompanying interim condensed consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “Annual Report”) filed on February 19, 2026.

Repurchase and Retirement of Common Stock

In August 2026, the Company repurchased 45,272,209 shares of its common stock in privately-negotiated transactions through a financial intermediary at the last reported sale price of the common stock on August 12, 2026, which was $3.49 per share, for approximately $158 million, excluding transaction costs. The Company elected to recognize the excess of the repurchase price over par value entirely as a reduction of additional paid-in capital, provided that additional paid-in capital remains positive. The Company also incurred $3 million in direct and incremental transaction costs to repurchase the shares, which are recorded as a reduction of additional paid-in capital. See“Note 9. Shareholders’ Equity” for further discussion regarding the Company’s repurchase activity.

At-The-Market Equity Offering

During the three and nine months ended September 30, 2025, the Company issued and sold an aggregate of 21,587,667 shares at a weighted-average price of $9.26 per share, under the Company’s at-the-market equity offering sales agreement (the “ATM Agreement”) for total cash proceeds, after commissions, of approximately $198 million, and Net Proceeds, as defined in the ATM Agreement, of approximately $195 million. As of September 30, 2025, there wereno shares available for issuance under the ATM agreement.

Private Investment in Public Equity Offerings

In September 2025, the Company closed certain private investment in public equity (“PIPE”) offerings and entered into purchase agreements with accredited investors, includingtwo related party investors whose investments accounted for the majority of the aggregate $41 million in gross cash proceeds, resulting in the issuance of an aggregate of 6,165,412 shares of common stock. The shares were issued in a private placement under Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D thereunder, and were not registered under the Securities Act of 1933.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that have a material impact on the amounts reported in the financial statements and accompanying notes. Significant estimates, assumptions and judgments made by management include, among others, share-based awards and inventory valuation adjustments. Management believes that the estimates and judgments upon which management relies are reasonable based upon information available to management at the time that these estimates and judgments are made. To the extent there are material differences between these estimates, assumptions and judgments and actual results, the carrying values of the Company’s assets and liabilities and the results of operations will be affected. The health of the residential housing market and interest rate environment have introduced additional uncertainty with respect to judgments, estimates, and assumptions, which may materially impact the estimates previously listed, among others.

Significant Risks and Uncertainties

The Company operates in a dynamic industry and, accordingly, can be affected by a variety of factors. For example, the Company believes that changes in any of the following factors could have a significant negative effect on the Company in terms of its future financial position, results of operations or cash flows: its rates of revenue growth; its ability to manage inventory; engagement and usage of its products; the effectiveness of its investment of resources to pursue strategies; competition in its market; the stability of the residential real estate market; the impact of interest rate changes on demand for and pricing of its products and on the cost of capital; its ability to leverage artificial intelligence (“AI”) to drive operational efficiency; impacts to its business from political and regulatory activity, including trade policies and potential increased tariffs; changes in technology, products, markets or services by the Company or its competitors; its ability to maintain or establish relationships with listings and data providers; its ability to obtain or maintain licenses and permits to support its current and future businesses; actual or anticipated changes to its products and services; changes in government regulation affecting its business; the outcomes of legal proceedings; natural disasters and catastrophic events, such as pandemics or epidemics; scaling and adaptation of existing technology and network infrastructure; its management of its growth; its ability to attract and retain qualified employees and key personnel; its ability to successfully integrate and realize the benefits of its past or future strategic acquisitions or investments; the protection of customers’ information and other privacy concerns; the protection of its brand and intellectual property; and intellectual property infringement and other claims, among other things.

Concentrations of Credit Risk

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents, and restricted cash. The Company places cash and cash equivalents with major financial institutions, which management assesses to be of high credit quality, in order to limit the Company’s exposure to potential losses.

Summary of Significant Accounting Policies

The Company’s significant accounting policies are discussed in“Part II – Item 8 – Financial Statements and Supplementary Data – Note 1. Description of Business and Accounting Policies” in the Annual Report. There have been no changes to these significant accounting policies for the nine-month period ended September 30, 2026, except as noted below.

Impairment of Long-Lived Assets

Long-lived assets, such as property and equipment and definite-lived intangible assets, among other long-lived assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment loss is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. The impairment loss recognized for the periods presented is primarily related to abandonment of certain internally developed software projects. The impairment loss recognized during the periods presented is as follows (in millions):

Capped Calls

In August 2026, the Company issued 0.00% convertible senior notes due 2030 (the “2030-B Notes”). In connection with the issuance, the Company purchased certain capped calls (the “2030-B Capped Calls”), which it expects to reduce potential dilution from conversion of the 2030-B Notes, subject to a cap. The capped calls were determined to be freestanding financial instruments that meet the criteria for classification in equity; as such, the capped calls were recorded as a reduction of additional paid-in capital within shareholders’ equity and will not be subsequently remeasured.

Recently Issued Accounting Standards

Recently Adopted Accounting Standards

For the nine months ended September 30, 2026, the Company did not adopt any material new accounting standards.

Recently Issued Accounting Standards Not Yet Adopted

In October 2023, the FASB issued ASU 2023-06, which is intended to clarify or improve disclosure and presentation requirements of a variety of topics. It will allow users to more easily compare entities subject to the U.S. Securities and Exchange Commission’s (“SEC”) existing disclosures with those entities that were not previously subject to the requirements and align the requirements in the FASB accounting standard codification with the SEC’s regulations. The effective date for each amendment will be the date on which the SEC’s removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective, or if the SEC has not removed the applicable disclosure requirement by June 30, 2027, the amendment will not be effective for any entity. Early adoption is prohibited. The Company is currently assessing the impact on the Company’s disclosures.

In November 2024, the FASB issued ASU 2024-03, Reporting Comprehensive Income—Expense Disaggregation Disclosures, which is intended to improve the disclosures about a public business entity’s expenses and provide detailed information about the types of expenses in commonly presented expense captions. The new guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027, and early adoption is permitted. The Company is currently assessing the impact on the Company’s condensed consolidated financial statements and disclosures.

In September 2025, the FASB issued ASU 2025-06, Intangibles – Goodwill and Other – Internal-Use Software, to modernize the outdated guidance for accounting for software costs by aligning the accounting with how software is developed today. This guidance is effective for fiscal years beginning after December 15, 2027 and interim periods within those fiscal years. Early adoption is permitted. The amendments in ASU 2025-06 should be applied either prospectively, retrospectively, or utilizing a modified transition approach. The Company is currently assessing the impact on the Company’s condensed consolidated financial statements and disclosures.

In September 2025, the FASB issued ASU 2025-07. This update clarifies the application of derivative accounting to certain contracts and refines the guidance for share-based noncash consideration received from customers. Specifically, ASU 2025-07 introduces a scope exception for contracts that are not exchange-traded and whose underlying is tied to operations or activities specific to one party. It also clarifies that share-based noncash consideration from a customer should initially be accounted for under Topic 606 until the right to receive or retain such consideration becomes unconditional, at which point financial instruments guidance may apply. The effective date for the standard is for fiscal years beginning after December 15, 2026 and interim periods within those fiscal years. Early adoption is permitted. The amendments in

ASU 2025-07 should be applied either prospectively or by utilizing a modified retrospective approach. The Company is currently assessing the impact on the Company’s condensed consolidated financial statements and disclosures.

In December 2025, the FASB issued ASU 2025‑11, Interim Reporting (Topic 270): Narrow‑Scope Improvements. This update clarifies interim disclosure requirements and centralizes such requirements within Topic 270. Among other changes, ASU 2025‑11 introduces a disclosure principle requiring entities to provide information about significant events or changes since the end of the last annual reporting period that have a material impact, clarifies when duplicative annual disclosures may be omitted from interim reports, and aligns interim reporting requirements with applicable SEC guidance for registrants. This guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in ASU 2025‑11 should be applied prospectively. The Company is currently assessing the impact on the Company’s condensed consolidated financial statements and disclosures.

In December 2025, the FASB issued ASU 2025‑12, Codification Improvements. This update addresses shareholder suggestions on the Accounting Standards Codification and makes other incremental improvements to U.S. GAAP. The amendments make codification updates to a broad range of topics arising from technical corrections, unintended application of the codification, clarifications, and other minor improvements. This guidance is effective for annual reporting periods beginning after December 15, 2026 and interim reporting periods within those annual periods. Early adoption is permitted and may be elected on an issue‑by‑issue basis. The amendments in ASU 2025‑12 are to be applied prospectively. The Company is currently assessing the impact on the Company’s condensed consolidated financial statements and disclosures.

2. REAL ESTATE INVENTORY

The following table presents the components of inventory, net of applicable inventory valuation adjustments of $63 million and $20 million, as of September 30, 2026 and December 31, 2025, respectively (in millions):

As of September 30, 2026, the Company was in contract to purchase 1,780 homes for an aggregate purchase price of $620 million.

During the three and nine months ended September 30, 2026, the Company recorded valuation adjustments for real estate inventory of $53 million and $76 million, respectively, in Cost of revenue in the condensed consolidated statements of operations. During the three and nine months ended September 30, 2025, the Company recorded valuation adjustments for real estate inventory of $15 million and $48 million, respectively, in Cost of revenue in the condensed consolidated statements of operations.

3. CASH, CASH EQUIVALENTS, AND INVESTMENTS

The amortized cost, gross unrealized gains and losses, and fair value of cash and cash equivalents, as of September 30, 2026 and December 31, 2025, were as follows (in millions):

A summary of equity method investments and non-marketable equity securities as of September 30, 2026 and December 31, 2025 were as follows (in millions):

In May 2026, a subsidiary of the Company entered into a Simple Agreement for Future Equity (“SAFE”) with a private company for an aggregate amount of $5 million, which is accounted for as a non-marketable equity security under the measurement alternative. The SAFE converts into preferred equity upon a qualifying financing at a predetermined valuation cap. No losses, whether from impairment or other observable price changes, were recognized in the condensed consolidated statements of operations for both the three and nine months ended September 30, 2026 and 2025 related to non-marketable equity securities held as of those dates.

4. VARIABLE INTEREST ENTITIES

The Company utilizes VIEs in the normal course of business to support the Company’s financing needs. The Company determines whether the Company is the primary beneficiary of a VIE at the time it becomes involved with the VIE and reconsiders that conclusion on an on-going basis.

The Company established certain special purpose entities (“SPEs”) for the purpose of financing the Company’s purchase and renovation of real estate inventory through the issuance of asset-backed debt. The Company is the primary beneficiary of the various VIEs within these financing structures and consolidates these VIEs. The Company is determined to be the primary beneficiary based on its power to direct the activities that most significantly impact the economic outcomes of the SPEs through its role in designing the SPEs and managing the real estate inventory they purchase and sell. The Company has a potentially significant variable interest in the entities based upon the equity interest the Company holds in the VIEs.

The following table summarizes the assets and liabilities related to the VIEs consolidated by the Company as of September 30, 2026 and December 31, 2025 (in millions):

(1)Includes escrow receivable and other current assets.

(2)Includes accounts payable and other accrued liabilities and interest payable.

The creditors of the VIEs generally do not have recourse to the Company’s general credit solely by virtue of being creditors of the VIEs. However, certain of the financial covenants included in the inventory financing facilities to which the VIEs are party are calculated by reference to Opendoor Labs Inc. and its consolidated subsidiaries’ assets and liabilities. As a result, under certain circumstances, this may limit the Company’s flexibility to transfer assets from Opendoor subsidiaries to the Parent Company. See“Note 5. Credit Facilities, Long-Term Debt, and Convertible Notes” for further discussion of the recourse obligations of an Opendoor subsidiary with respect to the VIEs.

5. CREDIT FACILITIES, LONG-TERM DEBT, AND CONVERTIBLE NOTES

The following tables summarize certain details related to the Company’s asset-backed debt as of September 30, 2026 and December 31, 2025 (in millions, except interest rates):

Asset-backed Debt

The Company utilizes inventory financing facilities consisting of asset-backed senior debt facilities and asset-backed mezzanine term debt facilities to provide financing for the Company’s real estate inventory purchases and renovation. These inventory financing facilities are typically secured by some combination of restricted cash, equity in real estate owning subsidiaries and related holding companies, and, for senior facilities, the real estate inventory financed by the relevant facility and/or beneficial interests in such inventory.

Each of the borrowers under the inventory financing facilities is a consolidated subsidiary of Opendoor and a separate legal entity. Neither the assets nor credit of any such borrower subsidiaries are generally available to satisfy the debts and other obligations of any other Opendoor entities. The inventory financing facilities are non-recourse to the Company and are generally non-recourse to Opendoor subsidiaries not party to the relevant facilities, except for limited guarantees provided by an Opendoor subsidiary for certain obligations involving “bad acts” by an Opendoor entity and certain other limited circumstances. These limited guarantees apply only to specified obligations or upon specified triggering events and are not unconditional guarantees of repayment of the inventory financing facilities.

As of September 30, 2026, the Company had total borrowing capacity with respect to its asset-backed debt of $7.5 billion. Borrowing capacity amounts under asset-backed debt as reflected in the table above are in some cases not fully committed and any borrowings above the committed amounts are subject to the applicable lender’s discretion. Any amounts repaid for senior term and mezzanine term debt facilities reduce total borrowing capacity as repaid amounts are not available to be reborrowed. As of September 30, 2026, the Company had committed borrowing capacity with respect to the Company’s asset-backed debt of $1.6 billion; this committed borrowing capacity is comprised of $572 million for senior revolving credit facilities, $725 million for senior term debt facilities, and $350 million for mezzanine term debt facilities.

Asset-backed Senior Revolving Credit Facilities

The Company classifies the senior revolving credit facilities as current liabilities on the Company’s condensed consolidated balance sheets as amounts drawn to acquire and renovate homes are required to be repaid as the related real estate inventory is sold, which the Company expects to occur within 12 months.

The senior revolving credit facilities are typically structured with an initial revolving period of up to 24 months, as may be amended and extended from time to time, during which time amounts can be borrowed, repaid and borrowed again. The borrowing capacity is generally available until the end of the applicable revolving period as reflected in the table above. Outstanding amounts drawn under each senior revolving credit facility are required to be repaid on the facility maturity date or earlier if accelerated due to an event of default or other mandatory repayment event. The final maturity dates and revolving period end dates reflected in the table above are inclusive of any extensions that are at the sole discretion of the Company. These facilities may also have extensions subject to lender discretion that are not reflected in the table above.

Borrowings under the senior revolving credit facilities accrue interest at various floating rates based on a secured overnight financing rate (“SOFR”), plus a margin that varies by facility. The Company may also pay fees on certain unused portions of committed borrowing capacity. The Company’s senior revolving credit facility arrangements typically include upfront fees that may be paid at execution of the applicable agreements or be earned at execution and payable over time. These facilities are generally fully prepayable at any time without penalty other than customary breakage costs.

The senior revolving credit facilities have aggregated borrowing bases, which increase or decrease based on the cost and value of the properties financed under a given facility and the time that those properties are in the Company’s possession. When the Company resells a home, the proceeds are used to reduce the outstanding balance under the related senior revolving credit facility. The borrowing base for a given facility may be reduced as properties age beyond certain thresholds or the performance of the properties financed under that facility declines, and any borrowing base deficiencies may be satisfied through contributions of additional properties or partial repayment of the facility.

Asset-backed Senior Term Debt Facilities

The Company classifies its senior term debt facilities as current or non-current liabilities on the Company’s condensed consolidated balance sheets based on the applicable final maturity date.

The senior term debt facilities are typically structured with an initial withdrawal period up to 60 months, as may be amended and extended from time to time, during which the outstanding principal amounts are generally not required to be repaid when homes financed through those facilities are sold and instead are intended to remain outstanding until final maturity for each facility. Outstanding amounts drawn under each senior term debt facility are required to be repaid on the facility maturity date or earlier if accelerated due to an event of default or other mandatory repayment event. The final maturity dates and withdrawal period end dates reflected in the table above are inclusive of any extensions that are at the sole discretion of the Company. These facilities may also have extensions subject to lender discretion that are not reflected in the table above.

Borrowings under the senior term debt facilities accrue interest at a fixed rate or at a floating rate based on SOFR, plus a margin. The Company’s senior term debt facilities may include upfront issuance costs that are capitalized as part of the facilities’ respective carrying values. These facilities are fully prepayable at any time but may be subject to certain customary prepayment penalties.

The senior term debt facilities have aggregated property borrowing bases, which increase or decrease based on the cost and value of the properties financed under a given facility, the time those properties are in the Company’s possession and the amount of cash collateral pledged by the relevant borrowers. The borrowing base for a given facility may be reduced as properties age or collateral performance declines beyond certain thresholds, and any borrowing base deficiencies may be satisfied through contributions of additional properties, cash or through partial repayment of the facility.

Asset-backed Mezzanine Term Debt Facilities

The Company classifies its mezzanine term debt facilities as current or non-current liabilities on the Company’s condensed consolidated balance sheets based on the applicable final maturity date. These facilities are structurally and contractually subordinated to the related asset-backed senior debt facilities.

The mezzanine term debt facilities have been structured with an initial withdrawal period of up to 42 months, as may be amended and extended from time to time, during which the outstanding principal amounts are generally not required to be repaid when homes financed through those facilities are sold and instead are intended to remain outstanding until final maturity. Outstanding amounts drawn under the mezzanine term debt facilities are required to be repaid on the facility maturity date or earlier if accelerated due to an event of default or other mandatory repayment event. The final maturity date and withdrawal period end date reflected in the table above are inclusive of any extensions that are at the sole discretion of the Company. These facilities may also have extensions subject to lender discretion that are not reflected in the table above.

Borrowings under a given mezzanine term debt facility accrue interest at a fixed rate. The Company’s mezzanine term debt facilities include upfront issuance costs that are capitalized as part of the facilities’ respective carrying values. These facilities are fully prepayable at any time but may be subject to certain prepayment penalties.

The mezzanine term debt facilities have aggregated property borrowing bases, which increase or decrease based on the cost and value of the properties financed under a given facility and time in the Company’s possession of those properties and the amount of cash collateral pledged by the relevant borrowers. The borrowing base for a given facility may be reduced as properties age or collateral performance declines beyond certain thresholds, and any borrowing base deficiencies may be satisfied through contributions of additional properties, cash or through partial repayment of the facility.

Covenants

The Company’s inventory financing facilities include customary representations and warranties, covenants and events of default. Financed properties are subject to customary eligibility criteria and concentration limits.

The terms of these inventory financing facilities and related financing documents require an Opendoor subsidiary to comply with customary financial covenants, such as maintaining certain levels of liquidity, tangible net worth or leverage (ratio of debt to tangible net worth). Certain of these financial covenants are calculated by reference to Opendoor Labs Inc. and its consolidated subsidiaries’ assets and liabilities. As a result, under certain circumstances, this may limit the Company’s flexibility to transfer assets from Opendoor subsidiaries to the Parent Company. At September 30, 2026 and December 31, 2025, $305 million and $200 million, respectively, of the Company’s net assets were restricted as they reflect minimum net asset requirements at Opendoor Labs Inc. As of September 30, 2026, the Company was in compliance with all financial covenants and no event of default had occurred.

Convertible Senior Notes

In August 2021, the Company issued 0.25% convertible senior notes due 2026 (the “2026 Notes”) which matured on August 15, 2026, and were repaid in full in cash. In May 2025, the Company issued 7.00% convertible senior notes due 2030 (the “2030-A Notes”), and in August 2026, the Company issued 0.00% convertible senior notes also due 2030 (the “2030-B Notes”). The 2026 Notes, 2030-A Notes and 2030-B Notes are collectively termed “Convertible Senior Notes”. The following tables summarize certain details related to the Convertible Senior Notes (in millions, except interest rates):

2026 Notes

The 2026 Notes matured on August 15, 2026, and the Company paid $135 million to settle the outstanding aggregate principal amount and accrued and unpaid interest. No 2026 Notes were converted prior to maturity, andno gain or loss was recognized on repayment.

2030-A Notes

In May 2025, the Company entered into privately negotiated transactions with certain holders of the 2026 Notes and new investors, pursuant to which the Company issued $325 million aggregate principal amount of 2030-A Notes consisting of (i) $246 million aggregate principal amount of 2030-A Notes issued in exchange for $246 million principal amount of 2026 Notes (the “Debt Exchange") and (ii) $79 million aggregate principal amount of 2030-A Notes issued for cash. Such transactions resulted in gross cash proceeds of $75 million, excluding certain fees and other offering expenses, and represent an issue price of 95%. The Company accounted for the Debt Exchange of the 2026 Notes as a debt extinguishment and recorded $10 million of gain on debt extinguishment, included within the Company’s condensed consolidated statements of operations.

The 2030-A Notes are convertible at the option of the holders of the 2030-A Notes before November 15, 2029 only upon the occurrence of certain events. In addition, the holders of the 2030-A Notes have the right to require the Company to repurchase all or part of their 2030-A Notes (i) if certain corporate events occur that constitute a fundamental change or (ii) for a one-time optional repurchase on May 15, 2028. Beginning on May 22, 2028, the Company has the option to redeem the 2030-A Notes, in whole or in part, upon meeting certain conditions related to the price of the Company’s common stock. The redemption or repurchase price will be paid in cash equal to 100% of the principal amount of the 2030-A Notes to be redeemed or repurchased, plus accrued and unpaid interest, if any. Beginning on November 15, 2029, and until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2030-A Notes are convertible at any time at the election of each noteholder. The conversion rate and conversion price are subject to customary adjustments under certain circumstances. In addition, if certain corporate events that constitute a make-whole fundamental change occur, then the conversion rate will, under certain circumstances, be increased for a specified period of time. Upon conversion, the Company may satisfy its obligation by paying cash for the outstanding principal balance, and, a combination of cash and the Company’s common stock, at the Company’s election, for the remaining amount, if any, based on the applicable conversion rate.

The 2030-A Notes become convertible during any calendar quarter if the last reported sale price of the Company’s common stock exceeds 130% of the conversion price for at least 20 of the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter. This condition was first met during the quarter ended September 30, 2025, and has been met in each subsequent quarter through September 30, 2026. Accordingly, the 2030-A Notes became convertible at the option of the noteholders on October 1, 2025, remain convertible through December 31, 2026, and are classified as a current liability in the condensed consolidated balance sheets as of September 30, 2026 and December 31, 2025.

2030-B Notes

In August 2026, the Company issued $650 million aggregate principal amount of 2030-B Notes in privately negotiated subscription transactions with certain investors. Gross proceeds were $650 million, before placement agent fees and other offering expenses of $11 million.

The 2030-B Notes are senior, unsecured obligations of the Company and mature on August 15, 2030, unless earlier converted, redeemed or repurchased. The 2030-B Notes are convertible at the option of the holders before February 15, 2030, only upon the occurrence of certain events. Beginning on February 15, 2030, and until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2030-B Notes are convertible at any time at the election of each noteholder. In addition, the holders have the right to require the Company to repurchase all or part of their 2030-B Notes if certain corporate events occur that constitute a fundamental change.

Beginning on February 22, 2029, the Company has the option to redeem the 2030-B Notes, in whole or in part, upon meeting certain conditions related to the price of the Company’s common stock and certain liquidity conditions, provided that the Company may not redeem fewer than all of the 2030-B Notes unless at least $100 million aggregate principal amount remains outstanding and not called for redemption. The Company may also redeem all, but not less than all, of the 2030-B Notes at any time, including prior to February 22, 2029, if less than $75 million aggregate principal amount remains outstanding and certain liquidity conditions have been satisfied. The redemption or repurchase price will be paid in cash equal to 100% of the principal amount to be redeemed or repurchased, plus accrued and unpaid special interest and additional interest, if any. The conversion rate and conversion price are subject to customary adjustments under certain circumstances. In addition, if certain corporate events that constitute a make-whole fundamental change occur, then the conversion rate will, under certain circumstances, be increased for a specified period, subject to a maximum conversion rate. Upon conversion, the Company may satisfy its obligation by paying or delivering cash, shares of its common stock, or a combination of cash and shares, at the Company’s election, and holders may not require settlement in any particular form.

The following table summarizes the interest expense related to the Convertible Senior Notes (in millions):

Capped Calls

In August 2026, in connection with the issuance of the 2030-B Notes, the Company purchased the 2030-B Capped Calls from certain financial institutions for an aggregate premium of $52 million and incurred approximately $1 million of related transaction costs. The premium and transaction costs were recorded as a reduction of additional paid-in capital. The 2030-B Capped Calls cover, subject to customary adjustments, approximately 138 million shares of the Company’s common stock. By entering into the 2030-B Capped Calls, the Company expects to reduce the potential dilution to its common stock (or, in the event of a conversion of the 2030-B Notes settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the 2030-B Notes its common stock price exceeds the conversion price. The 2030-B Capped Calls have an initial strike price of $4.7115 per share, which corresponds to the initial conversion price of the 2030-B Notes, and an initial cap price of $6.98 per share, representing a 100% premium over the $3.49 closing price of the Company’s common stock on August 12, 2026. The 2030-B Capped Calls were entered into separately from the 2030-B Notes and holders of the 2030-B Notes do not have any rights with respect to the 2030-B Capped Calls.

6. FAIR VALUE DISCLOSURES

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures.

The following is the fair value hierarchy used for assets and liabilities recorded at fair value on a recurring and nonrecurring basis and for estimating fair value for financial instruments not recorded at fair value.

Fair Value Hierarchy

Fair value measurements of assets and liabilities are categorized based on the following hierarchy:

Level 1 — Fair value determined based on quoted prices in active markets for identical assets or liabilities.

Level 2 — Fair value determined using significant observable inputs, such as quoted prices for similar assets or liabilities or quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs that are derived principally from or corroborated by observable market data, by correlation or other means.

Level 3 — Fair value determined using significant unobservable inputs, such as pricing models, discounted cash flows, or similar techniques.

Estimation of Fair Value

The following table summarizes the fair value measurement methodologies, including significant inputs and assumptions, and classification of the Company’s assets and liabilities recorded at fair value on a recurring basis.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

As of December 31, 2025, the Company did not have any assets or liabilities measured at fair value on a recurring basis. The following table presents the levels of the fair value hierarchy for the Company’s assets measured at fair value on a recurring basis as of September 30, 2026 (in millions):

Fair Value of Financial Instruments

The following presents the carrying value, estimated fair value and the levels of the fair value hierarchy for the Company’s financial instruments other than assets and liabilities measured at fair value on a recurring basis (in millions):

7. PROPERTY AND EQUIPMENT

Property and equipment as of September 30, 2026 and December 31, 2025, consisted of the following (in millions):

Depreciation and amortization expense of $6 million and $17 million was recorded for the three and nine months ended September 30, 2026, respectively. Depreciation and amortization expense of $8 million and $24 million was recorded for the three and nine months ended September 30, 2025, respectively.

8. GOODWILL AND INTANGIBLE ASSETS

For the nine months ended September 30, 2026 the carrying amount of goodwill increased by $4 million in connection with the acquisition of certain subsidiaries of Doma Technology LLC. For further information on the acquisition, see “Note 16.

Business Acquisitions.” There wereno additions to goodwill for the year ended December 31, 2025. No impairment of goodwill was identified for the three and nine months ended September 30, 2026 and 2025.

As of September 30, 2026, the Company’s intangible assets subject to amortization have a gross carrying amount of $6 million, accumulated amortization of $1 million, net carrying amount of $5 million, and a remaining weighted-average useful life of 2.4 years. There wereno intangible assets that were subject to amortization as of December 31, 2025.

Amortization expense for intangible assets is recognized on the condensed consolidated statement of operations and was $1 million for both the three and nine months ended September 30, 2026. There wasno amortization expense for the three and nine months ended September 30, 2025.

As of September 30, 2026, expected amortization of intangible assets is as follows:

9. SHAREHOLDERS’ EQUITY

The Company retires shares of common stock immediately upon repurchase. Upon retirement, the Company reduces the common stock component of shareholders’ equity by the par value of the repurchased shares and records the excess of the repurchase price over par value entirely as a reduction of additional paid-in capital. The repurchase price includes direct and incremental transaction costs incurred to repurchase the shares.

In August 2026, the Company’s board of directors authorized the repurchase of shares of the Company’s common stock. During the three months ended September 30, 2026, the Company repurchased 45,272,209 shares of its common stock in privately negotiated transactions through a financial intermediary for an aggregate purchase price of $158 million at an average price of $3.49 per share, excluding transaction costs of $3 million with an aggregate $161 million recognized in additional paid-in capital.

10. SHARE-BASED AWARDS

Stock options and RSUs

A summary of the stock option activity for the nine months ended September 30, 2026, is as follows:

A summary of the RSU activity for the nine months ended September 30, 2026, is as follows:

A summary of the market condition RSU activity for the nine months ended September 30, 2026, is as follows:

The fair value of market condition RSUs is estimated at the date of grant using a Monte Carlo simulation model, with assumptions consistent with those disclosed in “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 12. Share-based Awards,” in our Annual Report on Form 10-K for the year ended December 31, 2025.

Stock-based compensation expense

Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. The following table summarizes total stock-based compensation expense by function as presented in the condensed consolidated statements of operations for the three and nine months ended September 30, 2026 and 2025 (in millions):

The Company recognized $96 million and $301 million of compensation expense related to market condition awards during the three and nine months ended September 30, 2026, respectively, with $14 million of comparable expense during the three and nine months ended September 30, 2025. As of September 30, 2026, there was $466 million of unamortized stock-based compensation costs related to unvested market condition RSUs, which are expected to be recognized over a weighted-average period of approximately 2.2 years. As of September 30, 2026 and December 31, 2025, no market conditions were satisfied.

As of September 30, 2026, there was $106 million of unamortized stock-based compensation costs related to unvested RSUs, which are expected to be recognized over a weighted-average period of approximately 2.4 years.

11. WARRANTS

Marketing Warrants

On July 28, 2022, the Company entered into a warrant agreement with Zillow, Inc. (“Zillow”) in connection with a partnership arrangement that allows for Zillow to purchase up to 6 million shares of common stock that will vest in tranches (each, a “Tranche”) upon Zillow providing resale marketing services to the Company. As of September 30, 2026, one Tranche of 300,000 shares of common stock underlying the warrant has vested, with an exercise price of $15 per share, and none have been exercised.

Warrant Dividends

On November 6, 2025, our board of directors declared a distribution of a dividend in the form of warrants to purchase shares of our common stock. On November 21, 2025, a total of 99,295,146 Warrants were issued and distributed to the holders of record of common stock and 2030-A Notes as of the November 18, 2025 record date. There was no material activity during the nine months ended September 30, 2026 related to the Warrant Dividends. Refer to “Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements – Note 11. Shareholders’ Equity,” in our Annual Report on Form 10-K for the year ended December 31, 2025 for additional information regarding the Warrant Dividends.

12. INCOME TAXES

The Company’s tax provision and the resulting effective tax rate for interim periods are determined based upon its estimated annual effective tax rate adjusted for the effect of discrete items arising in that quarter.

The Company’s provision for income taxes, which consisted of state taxes in the United States and foreign income taxes in Canada and India was nominal and $1 million for the three and nine months ended September 30, 2026, respectively, with an effective tax rate of (0.14)% and (0.09)%, respectively. The Company's provision for income taxes was nominal and $1 million for the three and nine months ended September 30, 2025, respectively, with an effective tax rate of (0.11)% and (0.25)%, respectively. The effective tax rate differs from the U.S. statutory tax rate primarily due to the recording of a full valuation allowance against the net deferred tax assets.

The Company evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets by jurisdiction. Based on the Company’s history of operating losses, including a three-year cumulative loss position, the Company believes that based on the weight of available evidence, it is more likely than not that all of the deferred tax assets in the U.S. will not be realized and recorded a full valuation allowance of its federal and state net deferred tax assets as of September 30, 2026 and December 31, 2025.

In December 2021, the Organization for Economic Co-operation and Development (“OECD”) Inclusive Framework on Base Erosion and Profit Shifting released Model Global Anti-Base Erosion rules (“Model Rules”) under Pillar Two. The Model Rules set forth the “common approach” for a Global Minimum Tax at 15 percent for multinational enterprises with a turnover of more than 750 million Euros. Certain aspects of Pillar Two were effective January 1, 2024 and other aspects were effective January 1, 2025. Various countries have adopted legislation and other countries are in the process of introducing legislation to implement Pillar Two. On January 5, 2026, the OECD announced changes to the Model Rules to include the “side-by-side” arrangement, which contains simplification measures as well as an exemption for U.S.-parented companies from certain aspects of the Pillar Two regime. The updated Model Rules will need to be enacted into local legislation to become effective. Pillar Two did not have a material impact on the Company’s condensed consolidated financial statements as of September 30, 2026. The Company continues to monitor developments and administrative guidance and to evaluate the potential impact of Pillar Two on its condensed consolidated financial statements for future periods.

On July 4, 2025, the One Big Beautiful Bill Act (the “Act”) was enacted into law. The Act includes significant changes to the U.S. tax code, including restoration of immediate recognition of domestic research and development expenditures and reinstatement of 100% bonus depreciation for qualifying property. The Company has evaluated the impact of the Act on its condensed consolidated financial statements, including the effects on its deferred tax assets and liabilities and has not identified any material impact on its condensed consolidated financial statements.

13. NET LOSS PER SHARE

Basic net loss per share is computed based on the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed based on the weighted-average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. During the periods when there is a net loss, potentially dilutive common stock equivalents have been excluded from the calculation of diluted net loss per share as their effect is anti-dilutive. No dividends, including preferred dividends, were declared, paid, or accumulated for the three and nine months ended September 30, 2026 or 2025.

The Company uses the two-class method to calculate net loss per share and applies the more dilutive of the two-class method, treasury stock method or if-converted method to calculate diluted net loss per share. Undistributed earnings for each period are allocated to participating securities, based on the contractual participation rights of the security to share in the current earnings as if all current period earnings had been distributed. As there is no contractual obligation for participating securities to share in losses, the Company’s basic net loss per share is computed by dividing the net loss attributable to common shareholders by the weighted-average shares of common stock outstanding during periods with undistributed losses.

The following table sets forth the computation of the Company’s basic and diluted net loss per share attributable to common shareholders for the three and nine months ended September 30, 2026 and 2025 (in millions, except share amounts which are presented in thousands, and per share amounts):

The following securities were not included in the computation of diluted shares outstanding because the effect would be anti-dilutive, or issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the period (in thousands):

(1)Inclusive of the 2030-A Notes and 2030-B Notes. The 2030-B Notes may be settled, at the Company’s election, in cash, shares of common stock, or a combination thereof; the shares presented assume full settlement in shares of common stock.

14. RELATED PARTIES

As of September 30, 2026, the retained interest in Mainstay Labs Inc. (“Mainstay”), a formerly consolidated subsidiary of the Company, that was deconsolidated on July 31, 2024 (the “Deconsolidation”), was $48 million, which is presented in Other assets in the condensed consolidated balance sheets. The investment is recognized as a non-marketable equity security investment under ASC 321, Investments - Equity Securities, and is measured at fair value on a non-recurring basis, with the fair value initially determined as of the transaction date. As of September 30, 2026, there has been no impairment or other observable price changes. As a result of the Company’s continued investment in Mainstay, transactions between the Company and Mainstay subsequent to the Deconsolidation are considered to be related-party transactions. Prior to the Deconsolidation, transactions between Mainstay and Opendoor were eliminated upon consolidation.

In connection with the Deconsolidation, the Company entered into a contractual agreement to provide Mainstay with certain transition administrative services for a limited period of time (“Transition Services”) and to fulfill certain funding obligations to be paid in the form of Mainstay Series A Preferred Stock at the original Series A Preferred Stock issuance price. In September 2025, the Company received $9 million of Series A Preferred Stock as consideration for the Transition Services and related funding requirements. The Company continued to fund bonuses for certain Mainstay employees, other than Mainstay Management, through November 2025. Amounts paid during the three and nine months ended September 30, 2025 were $2 million and $5 million, respectively.

Subsequent to the Deconsolidation, the Company has no compensation arrangements with the management of Mainstay who are responsible for directing the activities that most significantly impact the economics of Mainstay (“Mainstay Management”). As of the Deconsolidation, outstanding Opendoor RSUs held by Mainstay employees, other than Mainstay Management, were modified so that the service-based vesting requirement will be satisfied as long as the Mainstay employee continues to provide services to Mainstay (“Post Deconsolidation RSUs”). During the three and nine months ended September 30, 2026, zero and 21,307 shares of common stock, respectively, were issued to Mainstay employees for the settlement of RSUs, net of shares withheld for participant taxes. As of June 30, 2026, all RSUs had vested.

In April 2025, the Company entered into an agreement with Mainstay to create Mainstay National Title LLC, which provides title and escrow services to institutional customers. The Company has a 25% interest in and provides certain services to Mainstay National Title LLC. The initial investment is recognized as an equity method investment under ASC 323, Investments – Equity Method and Joint Ventures. As of September 30, 2026, the carrying value of the equity method investment wasnominal and is presented in Other assets on the condensed consolidated balance sheets. During the three and nine months ended September 30, 2026, the Company recognized revenue of $3 million and $8 million, respectively. During the three and nine months ended September 30, 2025, the Company recognized revenue of $3 million and $7 million, respectively. This revenue is presented within the condensed consolidated statement of operations related to services provided to Mainstay National Title LLC.

There have been no other material changes to the related party transactions disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025. For a full description of those arrangements, see “Part II – Item 8. Financial Statements and Supplementary Data – Note 17. Related Parties” of our Annual Report on Form 10-K.

15. SEGMENT INFORMATION

The Company is managed as a single operating and reportable segment on a consolidated basis, reflecting how the Company’s Chief Operating Decision Maker (“CODM”) allocates resources and evaluates the Company’s financial information. The operating segment is the Company’s residential real estate product and service offerings. The Company determined that the Chief Executive Officer is the CODM, given their responsibility for making resource allocation decisions, assessing performance, making strategic operational decisions and managing the organization at a consolidated level.

As the Company is managed as a single operating and reportable segment, the measure of segment profit or loss is consolidated net loss. The CODM utilizes the financial information below in assessing the segment’s performance and allocating resources. The measure of segment assets is reported on the Company’s condensed consolidated balance sheets as total assets.

The table below highlights the Company’s reportable segment’s expenses and net loss for the three and nine months ended September 30, 2026 and 2025 (in millions):

(1)Represents selling costs incurred related to homes sold in the relevant period. This primarily includes broker commissions, external title and escrow-related fees and transfer taxes and are included in Sales, marketing and operations.

(2)Represents holding costs incurred both in the period presented and in prior periods on homes sold in the period presented (“Resale Cohort Holding Costs”). Holding costs include mainly property taxes, insurance, utilities, homeowners association dues and maintenance costs. Holding costs are included in Sales, marketing and operations in the period in which they are incurred (“GAAP Holding Costs”).

(3)Advertising expenses are included in Sales, marketing and operations. Other marketing expenses include non-advertising marketing expenses such as acquisition leads and referrals and public relations services and are included in Sales, marketing and operations.

(4)Represents operating expenses that are generally related to the volume of homes transacted during the period and tend to be variable in nature. This primarily includes workforce expenses in support of sales, and real estate operations.

(5)Represents operating expenses that are not directly correlated with home transaction volumes. These expenses generally include costs related to salaries and benefits for our executive, finance, technology, human resources, legal, marketing and administrative personnel, as well as third-party professional services fees, rent expense and third-party software.

(6)In connection with the appointment of the Company’s new Chief Executive Officer in September 2025, the Company granted two make-whole awards related to compensation forfeited from his former employer. The awards consisted of (i) a $15 million cash award and (ii) a restricted stock unit award with a grant date value of $15 million. Both awards vested nine months after his start date and were expensed over the requisite service period. The CEO make-whole provision adjustment reflects only the expense associated with the cash make-whole award. The expense associated with the restricted stock unit make-whole award is included in the stock-based compensation line item presented separately in the reconciliation above.

(7)Other segment income (expenses) are primarily made up of depreciation and amortization, restructuring, and amortization of stock-based compensation capitalized to internally developed software. This also includes the elimination of holding costs incurred in prior periods on homes sold in the periods presented, and includes holding costs incurred in the current period on homes remaining in inventory at period end.

16. BUSINESS ACQUISITIONS

On July 20, 2026, the Company completed the acquisition of asset and equity interests of certain subsidiaries of Doma Technology LLC in exchange for $10 million in cash consideration (the “Acquisition”). The Company entered into the Acquisition to expand its title and escrow services, including the right to participate in Fannie Mae’s Title Acceptance Program.

The Acquisition has been accounted for as a business combination under ASC 805, Business Combinations, using the acquisition method of accounting. The Company recognized fair value amounts of assets acquired and liabilities assumed at the acquisition date, primarily related to goodwill of $4 million and intangible assets of $6 million. Intangible assets recognized were related to customer relationships, developed technology, and the Company’s right to participate in Fannie Mae’s Title Acceptance Program, and have useful lives ranging from 1 to 5 years.

17. COMMITMENTS AND CONTINGENCIES

Legal Matters

From time to time, the Company may be subject to potential liability relating to the ownership and operations of the Company’s properties. Accruals are recorded when the outcome is probable and can be reasonably estimated.

There are various claims and lawsuits arising in the normal course of business pending against the Company, some of which seek damages and other relief which, if granted, may require future cash expenditures. In addition, from time to time the Company receives inquiries and audit requests from various government agencies and fully cooperates with these requests. The Company does not believe that it is reasonably possible that the resolution of these matters would result in any liability that would materially affect the Company’s condensed consolidated results of operations or financial condition.

18. RESTRUCTURING

Restructuring costs for ongoing employee benefit arrangements, inclusive of statutory requirements, are recognized in accordance with ASC 712, Compensation - Non-retirement Post-employment Benefits when it becomes probable that an obligation has been incurred and the amount can be reasonably estimated. If applicable, the Company recognizes restructuring costs over the terminated employees’ remaining service period. The liabilities for restructuring costs are recognized in Accounts payable and other accrued liabilities on the condensed consolidated balance sheets.

During the quarter ended June 30, 2026, the Company initiated the closure of its Indian subsidiary. The Company recognized $3 million of restructuring expenses related to post-employment benefits for approximately 150 employees, as well as other costs associated with the closure, including $1 million related to the early termination of a lease. Payments for restructuring costs incurred during the quarter ended June 30, 2026 were substantially completed by the third quarter of 2026.

During the nine months ended September 30, 2025, the Company recognized $6 million of restructuring expenses related to post-employment benefits for approximately 125 employees, as well as other cost reduction efforts. Additionally, the Company incurred $4 million of costs related to the early termination oftwo leases. Payments for restructuring costs incurred during the nine months ended September 30, 2025 were substantially completed by the third quarter of 2025.

As of September 30, 2026 and December 31, 2025, the restructuring liability balance was $1 million and $1 million, respectively.

19. SUBSEQUENT EVENTS

Subsequent to quarter end, the Company entered intotwo senior term credit facilities, which have final maturity dates of October 29, 2030 and November 4, 2030, respectively. As a result of these transactions, the Company has an aggregate borrowing capacity of $8.5 billion and fully committed borrowing capacity of $2.1 billion for its senior credit facilities.