The Orlando Magic have declined the $2.19 million team option on forward Caleb Houstan for the 2025–26 season, according to a report from Michael Scotto of HoopsHype.
The 22-year-old now becomes an unrestricted free agent after spending the first three seasons of his career with Orlando.
Houstan was a second-round pick in the 2022 NBA Draft and appeared in 168 regular-season games for the Magic. He averaged 4.1 points and 1.5 rebounds per game across his three years in the league.
Despite playing a limited role off the bench, Houstan showed improvement as a shooter, finishing the 2024–25 season with a 40.0 percent mark from beyond the arc. After the All-Star break, he hit 50.7 percent of his three-point attempts.
He played 13.6 minutes per game in 58 appearances this past season, mostly serving as a spot-up threat on the perimeter.
Orlando, which finished seventh in the Eastern Conference with a 41–41 record, made the playoffs but lost to the Boston Celtics in the first round. Houstan appeared in five postseason games and struggled with efficiency, shooting just 14.3 percent from the field.
His rookie contract was a four-year, $8.2 million deal. With the Magic opting not to pick up his final-year option, Houstan will now test the open market this summer.
