T
he iBuyer Opendoor is seeking shareholder approval for a reverse stock split, aiming to lift its stock price above the $1 threshold required by Nasdaq. This move comes after the company revealed it was at risk of being delisted from the index due to trading below $1 for over 30 business days. The proposed consolidation would combine shares to raise the per-share price, a strategy also employed by fellow iBuyer Offerpad in 2023.

    Opendoor's board recommends the reverse split to attract new investors, retain employees, and facilitate capital-raising opportunities. "This proposal is intended to support long-term shareholder value and give us optionality in preserving our listing on Nasdaq," said CFO Selim Freiha. If approved at a special meeting scheduled for July 28, the board would determine the final split ratio and timing.

    The iBuying model has faced significant challenges, with Opendoor and Offerpad pioneering algorithm-driven instant homebuying in the mid-2010s, only to see others like Zillow and Redfin enter and exit the space. After posting a $1.4 billion loss in 2022, Opendoor briefly returned to profitability under new CEO Carrie Wheeler but slipped back into the red in 2024.

    Opendoor has until November 24 to regain compliance with Nasdaq's listing requirements by trading above $1 for at least 10 consecutive business days. If it fails, the company may request a second 180-day compliance period if it meets all other listing criteria.