Opendoor Technologies Inc. (OPEN) Cash Flow Statement

AFFO has been negative for all ten quarters shown, with the most recent quarter at -$162M. The absence of a dividend is consistent with a company that is not generating distributable cash. The gap between FFO and AFFO is minimal, suggesting that recurring capex is not the primary driver of the cash burn; rather, it is the core operating losses. Investors should monitor whether management's stated path to Adjusted Net Income positivity by year-end can reverse this trend, as the current trajectory suggests continued cash consumption.

The low capex figures are misleading for a company like Opendoor, whose primary 'capital expenditure' is the acquisition of homes for resale. These purchases are reflected in working capital changes, which drive the massive swings in operating cash flow. For instance, OCF swung from +$823M in 2025Q2 to -$718M in 2026Q2, reflecting the timing of inventory purchases and sales. This suggests that the company's cash flow is highly sensitive to inventory turnover, and the reported capex understates the true capital requirements of the business.

The wide swings in OCF are not due to rent collections or receivables, but rather to the purchase and sale of residential inventory. The positive OCF in 2025Q2 and 2025Q3 likely reflects a period of high sales volume, while the negative OCF in 2026Q2 suggests heavy inventory accumulation or slower sales. This volatility makes it difficult to assess the underlying cash generation, but it underscores the company's dependence on efficient inventory turnover. The negative FCF margin of -81.9% in 2026Q2 highlights the cash drain during periods of inventory build-up.

The company's cash balance provides a buffer, but the negative FFO and AFFO across all quarters suggest that the business is not self-funding. The lack of dividends and minimal capex means that the cash burn is primarily from operating losses. While the low debt-to-equity ratio suggests a conservative capital structure, the company may need to rely on its cash reserves or raise additional capital if the path to profitability is delayed. The recent revenue contraction and negative margins indicate that external funding could become necessary to sustain operations.

The FFO/NI ratio of 4.43 in 2026Q2 indicates that FFO is less negative than net income, but the difference is not due to depreciation, which is typically the main adjustment for REITs. Instead, the gap is driven by other items, including SBC. The $239M SBC in 2026Q2 is a significant non-cash charge that reduces net income but does not affect cash flow. However, it does dilute shareholders. The close alignment between FFO and AFFO suggests that the company's cash flow is not being distorted by large non-cash items, but the underlying operational losses are the primary concern.