Opendoor Technologies Inc. stock research
FY2025 Q2
Opendoor Technologies (OPEN) Gross Margin — Quarter Ended Jun 30, 2025
Revenue increased compared to the prior quarter and the same quarter a year ago, while gross profit rose from the prior quarter but declined slightly from the year-ago period. The gross margin weakened relative to both prior periods, as cost of revenue grew at a faster pace than revenue on a sequential basis and remained stable year over year.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue increased compared to the prior quarter and the same quarter a year ago, while gross profit rose from the prior quarter but declined slightly from the year-ago period. The gross margin weakened relative to both prior periods, as cost of revenue grew at a faster pace than revenue on a sequential basis and remained stable year over year.
- The change in the relationship between revenue and cost of revenue was the primary observable driver of the margin movement. Sequentially, cost of revenue increased more than revenue, compressing the gross margin; year over year, cost of revenue was nearly flat while revenue edged higher, leading to a marginally lower margin.
- Compared to the prior quarter, revenue was higher and gross profit was higher, but gross margin weakened because the cost of revenue increased proportionally more. Versus the same quarter a year ago, revenue was slightly higher, gross profit was slightly lower, and gross margin weakened as cost of revenue remained essentially unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
8.2%
Gross profit
$128.0M
Revenue
$1.6B
Cost of revenue
$1.4B
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $1.4B | $105.0M | $1.3B | 7.6% |
| Dec 31, 2024 | $1.1B | $85.0M | $999.0M | 7.8% |
| Mar 31, 2025 | $1.2B | $99.0M | $1.1B | 8.6% |
| Jun 30, 2025 | $1.6B | $128.0M | $1.4B | 8.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
-0.4 pts
Year-over-year change
Jun 30, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The change in the relationship between revenue and cost of revenue was the primary observable driver of the margin movement. Sequentially, cost of revenue increased more than revenue, compressing the gross margin; year over year, cost of revenue was nearly flat while revenue edged higher, leading to a marginally lower margin.
Compared to the prior quarter, revenue was higher and gross profit was higher, but gross margin weakened because the cost of revenue increased proportionally more. Versus the same quarter a year ago, revenue was slightly higher, gross profit was slightly lower, and gross margin weakened as cost of revenue remained essentially unchanged.
Monitor the trend in cost of revenue relative to revenue, as the current quarter showed a sequential increase in the cost-to-revenue ratio that pressured gross margin.