Opendoor: Q1 2026 Earnings - [Business Breakdowns, EP.245]
Today, we are breaking down Opendoor, and this is a unique episode. We recorded with Kaz Nejatian, the CEO of Opendoor, shortly after the company reported its first quarter 2026 earnings, and we covered both what is happening inside the business right now and how he is thinking about Opendoor from the seat after coming over from Shopify.
The core of the conversation is how Kaz frames the company. He argues that Opendoor is a market maker rather than a prop desk or an asset manager, and that the model only works when you optimize for velocity instead of spread. Buying lots of homes and selling them quickly gives Opendoor a live information advantage over the rest of the housing market that no other participant has, and that advantage compounds as the customer base broadens beyond people who simply need to move fast.
Please enjoy this Breakdown of Opendoor.
For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.
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Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).
Timestamps
(00:00:00) Welcome to Business Breakdowns
(00:02:24) Thesis Since Joining OPEN
(00:04:49) OPEN is a Market Maker, not a Prop Desk
(00:04:53) Opendoor's Advantages
(00:07:37) Spread vs. Velocity
(00:11:25) Customer Base
(00:13:16) Attachment Profit Pool
(00:15:45) Order of Product Rollouts
(00:18:47) Friction from Attachments?
(00:19:03) Lessons from Shopify: Solving for Friction
(00:21:45) Investing vs. Profitability Balance
(00:23:58) AI Inside Opendoor
How to Build a Real Estate Marketplace - Kaz Nejatian, Opendoor CEO
Opendoor is trying to make it easier to buy a home. Kaz Nejatian just joined as CEO to help them succeed.
In this episode, a16z General Partners Alex Rampell and Erik Torenberg sit down with Kaz to cover all things real estate and marketplaces. They cover Kaz’s vision for Opendoor, the problem with copying the hedge fund model, how to build through economic downturns, and the importance of ambition and long-term thinking.
Resources:
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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
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Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
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20VC: Lessons from Mark Zuckerberg, Keith Rabois & Tobi Lütke | Why Remote is a Bad Idea for 90% of Companies | The Framework for How Shopify Builds Product Today | What Humans Get Wrong About Marriage and Kids with Kaz Nejatian, COO @ Shopify
Kaz Nejatian is Shopify's VP of Product & Chief Operating Officer. Before Shopify, Kaz founded Kash, a payment technology company which was acquired in 2017 by one of the largest fintech companies in the U.S. Kaz then served as Product Lead for Payments and Billing at Facebook, reducing the barriers for businesses in cash-dependent markets to purchase digital ads without a credit card.
In Today's Episode with Kaz Nejatian We Discuss:
1. Learnings From the Greats:
Mark Zuckerberg: What are Kaz's biggest lessons from working with Zuck? Why does Kaz believe Zuck is massively under-appreciated?
Keith Rabois: What are Kaz's biggest lessons from working with Keith? How did it change how he operates on a day to day basis?
Tobi Lütke: What have been Kaz's biggest lessons from working with Tobi? What has he changed most significantly since working with Tobi?
2. Shopify: Why We Build Our Own Tools:
Why does Kaz believe it is crucial for Shopify to build their own tools?
When did he doubt this strategy most? What caused him to question it?
Why does Kaz believe the Stripe <> Shopify partnership is the most important in business?
What is the role of a PM at Shopify?
Why do Shopify focus on how not what product is built?
3. Eight Truths The Startup World Gets Wrong:
Why does Kaz believe "The Lean Startup" has done more damage than any other startup book?
Why does Kaz believe that 90% of companies do not know what they want when they hire?
Why does Kaz believe the way that companies pay their staff is totally wrong?
Why does Kaz believe that most companies pick fights they do not need to pick?
Why does Kaz believe that for 90% of companies remote work is a terrible idea?
Why does Kaz believe that everyone in sales and marketing should be able to code?
Why does Kaz believe that married people with kids are more, not less productive?
Why does Kaz believe that we totally misunderstand divorce rates?
