Opendoor (NASDAQ:OPEN) reported a Q3 revenue of $915 million, beating analyst estimates by 7.8% but showing a 33.6% decline year-on-year. Adjusted EPS was -$0.08, missing estimates by 19.6%. The company’s EBITDA was -$33 million, a 70.2% miss.

CEO Nejatian acknowledged Opendoor’s shift from a risk-averse strategy to a product-driven approach, resulting in margin pressures. The company aims for positive adjusted net income next year through cost reductions and new services like mortgages. The focus is on long-term decisions over short-term guidance.

Opendoor is undergoing a leadership overhaul, shifting back to a product-led approach. Nejatian emphasized the importance of software and AI in decision-making. The company is integrating AI to streamline operations and improve the user experience, expecting cost savings and faster transactions.

To address liquidity risks and fund growth, Opendoor executed a $200 million equity raise and refinanced convertible notes. The company introduced new products like mortgages and warranties to diversify revenue streams. Management is focused on reducing fixed expenses and reinvesting in automation.

Opendoor plans to increase home acquisitions by 35% in the next quarter, aiming for higher volumes to attract more buyers and sellers. The company expects margin improvement as legacy inventory is replaced and is focusing on cost discipline and product rollout for future progress.

Read more at Yahoo Finance: Opendoor Drives Operational Overhaul and Product Expansion Amid Housing Slowdown