Zillow’s capital-light model delivered net income while Opendoor’s asset-heavy approach deepened losses last quarter.
Zillow reported $46 million in net income for the quarter, contrasting sharply with Opendoor’s $246 million operating cash burn. The divergence highlights Zillow’s high-margin digital platform versus Opendoor’s cash-intensive house-flipping model.
Opendoor reduced aged inventory from 51% to 10% and signed 5,000 acquisition contracts, its highest since 2022, yet posted a $49 million adjusted net loss. Zillow’s revenue rose 18.4% year over year to $708 million, driven by 42% growth in rentals and a 56% jump in mortgage revenue.
Zillow trades at 14 times forward earnings after a 54% one-year decline, reinforcing its risk-adjusted appeal compared to Opendoor’s ongoing losses.