Zillow posted $46 million in net income last quarter while Opendoor burned $246 million in operating cash, highlighting their starkly opposite business models. Zillow’s revenue grew 18.4% to $708 million, driven by a 42% jump in rentals and a 56% surge in mortgage revenue, with purchase loan originations nearly doubling to $1.5 billion. Opendoor’s revenue fell 38% to $720 million as homes sold dropped to 1,921 units, though it slashed aged inventory over 120 days from 51% to 10% and signed over 5,000 acquisition contracts, its highest since 2022. Zillow’s 73.3% gross margin enabled aggressive share buybacks of $626 million, while Opendoor took a $105 million restricted stock unit charge tied to its new CEO and posted a $49 million adjusted net loss. With Zillow trading at 14 times forward earnings after a 54% one-year decline, its capital-light, high-margin platform is seen as the cleaner risk-adjusted investment compared to Opendoor’s asset-heavy turnaround story.
Opendoor Technologies IncBurned $246M operating cash, posted $49M adjusted net loss, and took $105M RSU charge
Zillow Group Inc Class CPosted $46M net income, 73.3% gross margin, aggressive $626M buybacks, and trades at 14x forward earnings
NVIDIA Corporation