Opendoor postpones reverse stock split meeting amid Nasdaq compliance issues

Published 28/07/2025, 12:16
Opendoor postpones reverse stock split meeting amid Nasdaq compliance issues

SAN FRANCISCO - Opendoor Technologies Inc. (NASDAQ:OPEN), a prominent player in the Real Estate Management & Development industry with a market capitalization of $1.85 billion, announced Monday it will adjourn its Special Meeting of Stockholders scheduled for July 28 until August 27, 2025, without conducting any business.

The meeting was originally called to consider proposals for a discretionary reverse stock split of the company’s common stock. The adjournment comes as Opendoor attempts to address its Nasdaq listing compliance issues. According to InvestingPro data, the stock has experienced significant volatility, with a notable decline of 20.87% in the past week despite trading at $2.54 currently.

In May, Opendoor received notice from Nasdaq that it had failed to comply with listing requirements after its stock price remained below $1.00 per share for 30 consecutive business days. The company has until November 24, 2025, to regain compliance by maintaining a closing price of at least $1.00 per share for a minimum of 10 consecutive business days.

The company’s board cited recent stock price volatility as the reason for postponing the meeting, stating it needed "additional time to assess market conditions" before proceeding with the special meeting. InvestingPro analysis reveals over 20 key insights about Opendoor’s financial health, which is currently rated as FAIR, helping investors better understand the company’s position amid market uncertainties.

If approved, the reverse stock split proposals would not mandate immediate action but would provide the board with the option to implement a split if deemed necessary to maintain Nasdaq listing.

The record date for stockholders entitled to vote remains June 4, 2025. The company continues to accept votes during the adjournment period and encourages stockholders who haven’t voted to do so.

Opendoor, which operates an e-commerce platform for residential real estate transactions, made the announcement in a press release statement. The company is scheduled to report its next earnings on August 5, 2025. For comprehensive analysis and detailed insights, investors can access the full Pro Research Report available on InvestingPro, which covers what really matters about Opendoor’s financial position and future prospects.

In other recent news, Opendoor Technologies announced a proposal for a reverse stock split, aiming to maintain its Nasdaq listing and enhance long-term shareholder value. The company’s Board of Directors recommended a split ratio between 1-for-10 and 1-for-50, with the final decision pending. This move is part of Opendoor’s strategy to support its listing requirements and provide flexibility for shareholders. Additionally, Opendoor has issued $325 million in new convertible senior notes, replacing $245.8 million of existing notes and selling $79.2 million for cash. These notes are set to mature in 2030, with an annual interest rate of 7.000%.

On the analyst front, Citizens JMP downgraded Opendoor’s stock rating from Market Outperform to Market Perform, reflecting the firm’s view of Opendoor’s evolving role in the real estate market. Meanwhile, Citi analysts have revised their price target for Opendoor stock to $0.80, maintaining a Neutral rating. This adjustment follows Opendoor’s first-quarter results and second-quarter guidance, which highlight a slowdown due to housing market pressures. Opendoor plans to reduce marketing expenditures and home acquisitions, signaling a cautious approach amid macroeconomic uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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