Redfin Corporation (NASDAQ:RDFN) today announced results for its fourth quarter and full year ended December 31, 2024.

Fourth Quarter 2024

Fourth quarter revenue was $244.3 million, an increase of 12% compared to the fourth quarter of 2023. Gross profit was $81.9 million, an increase of 12% year-over-year. Real estate services gross profit was $32.7 million, an increase of 9% year-over-year, and real estate services gross margin was 21.9%, compared to 22.5% in the fourth quarter of 2023.

Net loss was $36.4 million, compared to a net loss of $22.9 million in the fourth quarter of 2023. Net loss attributable to common stock was $36.7 million. Net loss per share attributable to common stock, diluted, was $0.29, compared to net loss per share, diluted, of $0.20 in the fourth quarter of 2023.

Adjusted EBITDA was $2.9 million, compared to adjusted EBITDA loss of $13.5 million in the fourth quarter of 2023.

Full Year 2024

Full year revenue was $1,043.0 million, an increase of 7% year-over-year. Gross profit was $364.2 million, an increase of 10% year-over-year. Real estate services gross profit was $155.4 million, flat year-over-year, and real estate services gross margin was 24.2%, compared to 25.2% in 2023.

Total net loss was $164.8 million, compared to a net loss of $130.0 million in 2023. Total net loss attributable to common stock was $165.9 million. Net loss per share attributable to common stock, diluted, was $1.36, compared to a net loss per share, diluted, of $1.16 in 2023.

Adjusted EBITDA loss was $26.5 million, compared to adjusted EBITDA loss of $76.4 million in 2023.

"After recording our fourth straight quarter of revenue growth, with profits improving year-over-year in every business segment, we're headed into 2025 with more demand, and a bigger and better sales force," said Redfin CEO Glenn Kelman. "We incurred one-time costs from the transition to paying Redfin agents entirely on commissions, but our agent census is now 25% higher than it was just six months ago, and the new hires are out-performing tenured Redfin agents at meeting customers and winning offers. We now expect real-estate-services gross margins to improve year-over-year throughout 2025, starting in the first quarter. And we expect to connect our agents with significantly more demand in 2025. A Zillow rentals partnership will let us compete better for traffic, by doubling the number of high-quality apartment listings on our sites. The $100 million we got from that partnership, coupled with further cost savings from restructurings, will let us increase advertising 38% while still earning a full-year adjusted-EBITDA profit. Already January demand for our agents is up 5%, setting us up for our best year in many years."

Fourth Quarter and Full Year Highlights

#1 brokerage website for 2024, with 7x the traffic of our next closest brokerage competitor.
Our agents and partners helped approximately 61,000 customers buy or sell a home in 2024, resulting in a market share of 0.76% of U.S. existing home sales.
Achieved mortgage attach rate (excluding cash transactions) of 27% for 2024, up from 24% in 2023.¹
Maintained momentum in loyalty sales, with 38% of sales coming from loyalty customers in the fourth quarter, compared to 36% in the fourth quarter of 2023.
Welcomed 399 new Redfin agents in the fourth quarter following the nationwide expansion of Redfin Next. Redfin Next continues to attract high-quality talent and help existing Redfin agents thrive.
Average lead agents of 1,927 in the fourth quarter, up 14% compared to the fourth quarter of 2023 and marking Redfin's third straight quarter of sequential agent growth.
Increased participation in Redfin Teams, with more than 250 active teams nationwide and 31% of Redfin agents now belonging to a team. The program has improved agent performance in our pilot markets, including a 13% lift in the number of web contacts who go on to close with Redfin within 90 days.

(1) Attach rate reflects total closed loans for Redfin buy-side customers divided by Redfin buy-side transactions with a mortgage (excluding cash transactions) for the period. We previously reported only the inclusive attach rate (includes cash transactions in the denominator), which was 22% in 2024, compared to 19% in 2023.

Business Outlook

The following forward-looking statements reflect Redfin's expectations as of February 27, 2025, and are subject to substantial uncertainty.

For the first quarter of 2025 we expect:

Total revenue between $214 million and $225 million, representing a year-over-year change between (5)% and 0% compared to the first quarter of 2024. Included within total revenue are real estate services revenue between $126 million and $131 million, rentals revenue between $49 million and $51 million, mortgage revenue between $27 million and $30 million, title revenue of approximately $8 million and monetization revenue of approximately $4 million.
Total net loss is expected to be between $94 million and $83 million. This guidance includes approximately $40 million in total marketing expenses, $21 million to $24 million in restructuring expense, $15 million in stock-based compensation, $9 million in depreciation and amortization, and $6 million in net interest expense. Adjusted EBITDA loss is expected to be between $39 million and $32 million.

Conference Call

Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2024, which is available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

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Redfin Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share amounts, unaudited)

	December 31,
		2024			2023
Assets
Current assets
Cash and cash equivalents	$	124,743		$	149,759
Restricted cash		229			1,241
Short-term investments		—			41,952
Accounts receivable, net of allowances for credit losses of $4,571 and $3,234		48,730			51,738
Loans held for sale		152,426			159,587
Prepaid expenses		26,853			33,296
Other current assets		22,457			7,472
Total current assets		375,438			445,045
Property and equipment, net		41,302			46,431
Right-of-use assets, net		23,713			31,763
Mortgage servicing rights, at fair value		2,736			32,171
Long-term investments		—			3,149
Goodwill		461,349			461,349
Intangible assets, net		99,543			123,284
Other assets, noncurrent		8,376			10,456
Total assets	$	1,012,457		$	1,153,648
Liabilities, mezzanine equity, and stockholders' (deficit) equity
Current liabilities
Accounts payable	$	16,847		$	10,507
Accrued and other liabilities		82,709			90,360
Warehouse credit facilities		146,629			151,964
Convertible senior notes, net		73,516			—
Lease liabilities		12,862			15,609
Total current liabilities		332,563			268,440
Lease liabilities, noncurrent		19,855			29,084
Convertible senior notes, net, noncurrent		498,691			688,737
Term loan		243,344			124,416
Deferred tax liabilities		672			264
Total liabilities		1,095,125			1,110,941
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 0 and 40,000 shares issued and outstanding at December 31, 2024 and 2023, respectively		—			39,959
Stockholders' (deficit) equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 126,389,289 and 117,372,171 shares issued and outstanding at December 31, 2024 and 2023, respectively		126			117
Additional paid-in capital		905,506			826,146
Accumulated other comprehensive loss		(166	)		(182	)
Accumulated deficit		(988,134	)		(823,333	)
Total stockholders' (deficit) equity		(82,668	)		2,748
Total liabilities, mezzanine equity, and stockholders' (deficit) equity	$	1,012,457		$	1,153,648

Redfin Corporation and Subsidiaries Consolidated Statements of Comprehensive Loss (in thousands, except share and per share amounts, unaudited)

	Three Months Ended December 31,						Year Ended December 31,
		2024			2023			2024			2023
Revenue		244,282			218,077			1,042,979			976,672
Cost of revenue⁽¹⁾		162,342			144,926			678,778			646,853
Gross profit		81,940			73,151			364,201			329,819
Operating expenses
Technology and development⁽¹⁾		34,951			44,098			163,927			183,294
Marketing⁽¹⁾		22,157			20,332			114,481			117,863
General and administrative⁽¹⁾		53,998			52,206			235,364			238,790
Restructuring and reorganization		952			768			5,684			7,927
Total operating expenses		112,058			117,404			519,456			547,874
Loss from continuing operations		(30,118	)		(44,253	)		(155,255	)		(218,055	)
Interest income		1,216			2,362			6,348			10,532
Interest expense		(8,283	)		(4,233	)		(27,780	)		(9,524	)
Income tax benefit (expense)		905			(97	)		530			(979	)
Gain on extinguishment of convertible senior notes		—			25,171			12,000			94,019
Other expense, net		(85	)		(1,848	)		(644	)		(2,385	)
Net loss from continuing operations		(36,365	)		(22,898	)		(164,801	)		(126,392	)
Net loss from discontinued operations		—			—			—			(3,634	)
Net loss	$	(36,365	)	$	(22,898	)	$	(164,801	)	$	(130,026	)

Dividends on convertible preferred stock		(367	)		(216	)		(1,073	)		(1,074	)

Net loss from continuing operations attributable to common stock—basic and diluted	$	(36,732	)	$	(23,114	)	$	(165,874	)	$	(127,466	)
Net loss attributable to common stock—basic and diluted	$	(36,732	)	$	(23,114	)	$	(165,874	)	$	(131,100	)

Net loss from continuing operations per share attributable to common stock—basic and diluted	$	(0.29	)	$	(0.20	)	$	(1.36	)	$	(1.13	)
Net loss per share attributable to common stock—basic and diluted	$	(0.29	)	$	(0.20	)	$	(1.36	)	$	(1.16	)

Weighted average shares of common stock—basic and diluted		125,027,643			116,154,001			121,677,971			113,152,752

Net loss	$	(36,365	)	$	(22,898	)	$	(164,801	)	$	(130,026	)
Other comprehensive (loss) income
Foreign currency translation adjustments		(27	)		2			(24	)		(71	)
Unrealized gain on available-for-sale securities		—			73			40			690
Comprehensive loss	$	(36,392	)	$	(22,823	)	$	(164,785	)	$	(129,407	)

(1) Includes stock-based compensation as follows:

	Three Months Ended December 31,				Year Ended December 31,
	2024		2023		2024		2023
Cost of revenue	$	2,577	$	2,741	$	11,180	$	12,914
Technology and development		8,247		8,352		34,339		33,111
Marketing		1,116		1,312		5,027		5,148
General and administrative		5,277		3,148		20,613		19,528
Total	$	17,217	$	15,553	$	71,159	$	70,701

Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited)

	Year Ended December 31,
		2024			2023
Operating Activities
Net loss	$	(164,801	)	$	(130,026	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		42,768			62,851
Stock-based compensation		71,159			70,935
Amortization of debt discount and issuance costs		3,116			3,620
Non-cash lease expense		11,815			16,269
Impairment costs		—			1,948
Net (gain) loss on IRLCs, forward sales commitments, and loans held for sale		(19	)		(1,992	)
Change in fair value of mortgage servicing rights, net		(892	)		3,198
Gain on extinguishment of convertible senior notes		(12,000	)		(94,019	)
Other		644			(2,113	)
Change in assets and liabilities:
Accounts receivable, net		2,864			3,286
Inventory		—			114,232
Prepaid expenses and other assets		(8,229	)		6,004
Accounts payable		6,371			(1,323	)
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent		(5,401	)		(19,085	)
Lease liabilities		(15,682	)		(18,998	)
Origination of mortgage servicing rights		(255	)		(565	)
Proceeds from sale of mortgage servicing rights		30,582			1,457
Origination of loans held for sale		(3,979,765	)		(3,525,987	)
Proceeds from sale of loans originated as held for sale		3,985,418			3,567,066
Net cash (used in) provided by operating activities		(32,307	)		56,758
Investing activities
Purchases of property and equipment		(11,209	)		(12,056	)
Purchases of investments		—			(76,866	)
Sales of investments		39,225			124,681
Maturities of investments		6,395			61,723
Net cash provided by investing activities		34,411			97,482
Financing activities
Redemption of convertible preferred stock, net of issuance costs		(40,000	)		—
Payment of dividends on convertible preferred stock		(367	)		—
Proceeds from the issuance of common stock pursuant to employee equity plans		6,558			9,613
Tax payments related to net share settlements on restricted stock units		(2,284	)		(16,348	)
Borrowings from warehouse credit facilities		4,016,909			3,532,119
Repayments to warehouse credit facilities		(4,022,245	)		(3,570,664	)
Principal payments under finance lease obligations		(56	)		(89	)
Repurchases of convertible senior notes		(106,953	)		(241,808	)
Repayments of convertible senior notes		—			(23,512	)
Repayment of term loan principal		(2,188	)		(313	)
Extinguishment of convertible senior notes associated with closing of term loan		—			(57,075	)
Payments of debt issuance costs		(2,482	)		(2,338	)
Proceeds from term loan		125,000			125,000
Net cash used in financing activities		(28,108	)		(245,415	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(24	)		(71	)
Net change in cash, cash equivalents, and restricted cash		(26,028	)		(91,246	)
Cash, cash equivalents, and restricted cash:
Beginning of period		151,000			242,246
End of period	$	124,972		$	151,000

Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited)

	Three Months Ended
	Dec. 31, 2024			Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023
Monthly average visitors (in thousands)		42,680			49,413			51,619			48,803			43,861			51,309			52,308			50,440
Real estate services transactions
Brokerage		11,441			13,324			14,178			10,039			10,152			13,075			13,716			10,301
Partner		2,922			3,440			3,395			2,691			3,186			4,351			3,952			3,187
Total		14,363			16,764			17,573			12,730			13,338			17,426			17,668			13,488
Real estate services revenue per transaction
Brokerage	$	12,249		$	12,363		$	12,545		$	12,433		$	12,248		$	12,704		$	12,376		$	11,556
Partner		3,027			3,025			2,859			2,367			2,684			2,677			2,756			2,592
Aggregate		10,373			10,447			10,674			10,305			9,963			10,200			10,224			9,438
U.S. market share by units⁽¹⁾		0.72	%		0.76	%		0.77	%		0.77	%		0.72	%		0.78	%		0.75	%		0.79	%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue		56	%		56	%		56	%		55	%		55	%		56	%		55	%		53	%
Average number of lead agents		1,927			1,757			1,719			1,658			1,692			1,744			1,792			1,876
Mortgage originations by dollars (in millions)	$	1,035		$	1,214		$	1,338		$	969		$	885		$	1,110		$	1,282		$	991
Mortgage originations by units (in ones)		2,434			2,900			3,192			2,365			2,293			2,786			3,131			2,444

	Year Ended December 31,
		2024			2023
Monthly average visitors (in thousands)		48,129			49,479
Real estate services transactions
Brokerage		48,982			47,244
Partner		12,448			14,676
Total		61,430			61,920
Real estate services revenue per transaction
Brokerage	$	12,403		$	12,260
Partner		2,838			2,681
Aggregate		10,465			9,990
U.S. market share by units⁽¹⁾		0.76	%		0.76	%
Revenue from top-10 markets as a percentage of real estate services revenue		56	%		55	%
Average number of lead agents		1,765			1,776
Mortgage originations by dollars (in millions)	$	4,556		$	4,268
Mortgage originations by units (in ones)		10,891			10,654
(1) Prior to the second quarter of 2022, we reported our U.S. market share based on the aggregate home value of our real estate services transactions, relative to the aggregate value of all U.S. home sales, which we computed based on the mean sale price of U.S. homes provided by the National Association of REALTORS® ("NAR"). Beginning in the second quarter of 2022, NAR (1) revised its methodology of computing the mean sale price, (2) restated its previously reported mean sale price beginning from January 2020 (and indicated that previously reported mean sale price prior to January 2020 is not comparable), and (3) discontinued publication of the mean sale price as part of its primary data set. Due to these changes, as of the second quarter of 2022, we report our U.S. market share based on the number of homes sold, rather than the dollar value of homes sold. Our market share by number of homes sold has historically been lower than our market share by dollar value of homes sold. We also stopped reporting the aggregate home value of our real estate services transactions.

Redfin Corporation and Subsidiaries Segment Reporting and Reconciliation of Adjusted EBITDA to Net Income (Loss) (unaudited, in thousands)

	Three Months Ended December 31, 2024
	Real estate services			Rentals			Mortgage			Title		Monetization		Corporate overhead			Total
Revenue	$	148,982		$	51,634		$	30,210		$	9,097	$	4,359	$	—		$	244,282
Cost of revenue		116,315			12,271			26,910			6,718		128		—			162,342
Gross profit		32,667			39,363			3,300			2,379		4,231		—			81,940
Operating expenses
Technology and development		20,914			11,438			696			114		755		1,034			34,951
Marketing		10,022			11,353			767			14		—		1			22,157
General and administrative		17,616			21,653			6,341			794		662		6,932			53,998
Restructuring and reorganization		—			—			—			—		—		952			952
Total operating expenses		48,552			44,444			7,804			922		1,417		8,919			112,058
(Loss) income from continuing operations		(15,885	)		(5,081	)		(4,504	)		1,457		2,814		(8,919	)		(30,118	)
Interest income, interest expense, income tax benefit, gain on extinguishment of convertible senior notes, and other expense, net		(31	)		132			(6	)		220		63		(6,625	)		(6,247	)
Net (loss) income from continuing operations	$	(15,916	)	$	(4,949	)	$	(4,510	)	$	1,677	$	2,877	$	(15,544	)	$	(36,365	)

	Three Months Ended December 31, 2024
	Real estate services			Rentals			Mortgage			Title			Monetization			Corporate overhead			Total
Net (loss) income from continuing operations	$	(15,916	)	$	(4,949	)	$	(4,510	)	$	1,677		$	2,877		$	(15,544	)	$	(36,365	)
Interest income⁽¹⁾		(27	)		(132	)		(3,199	)		(220	)		(63	)		(775	)		(4,416	)
Interest expense⁽²⁾		—			—			2,962			—			—			8,276			11,238
Income tax expense		—			—			—			—			—			(905	)		(905	)
Depreciation and amortization		3,143			5,150			881			28			87			140			9,429
Stock-based compensation⁽³⁾		10,177			3,465			375			284			304			2,612			17,217
Restructuring and reorganization⁽⁴⁾		—			—			—			—			—			952			952
Adjusted EBITDA	$	(2,623	)	$	3,534		$	(3,491	)	$	1,769		$	3,205		$	(5,244	)	$	(2,850	)
(1) Interest income includes $3.2 million of interest income related to originated mortgage loans for the three months ended December 31, 2024.
(2) Interest expense includes $3.0 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2024.
(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program.
(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.

	Three Months Ended December 31, 2023
	Real estate services			Rentals			Mortgage			Title			Monetization		Corporate overhead			Total
Revenue	$	132,890		$	49,176		$	26,270		$	5,759		$	3,982	$	—		$	218,077
Cost of revenue		103,000			11,070			25,070			5,633			153		—			144,926
Gross profit		29,890			38,106			1,200			126			3,829		—			73,151
Operating expenses
Technology and development		25,551			15,853			694			91			938		971			44,098
Marketing		7,897			11,443			942			13			1		36			20,332
General and administrative		17,854			20,807			4,689			672			296		7,888			52,206
Restructuring and reorganization		—			503			—			—			—		265			768
Total operating expenses		51,302			48,606			6,325			776			1,235		9,160			117,404
(Loss) income from continuing operations		(21,412	)		(10,500	)		(5,125	)		(650	)		2,594		(9,160	)		(44,253	)
Interest income, interest expense, income tax benefit, gain on extinguishment of convertible senior notes, and other expense, net		18			100			(168	)		131			106		21,168			21,355
Net (loss) income from continuing operations	$	(21,394	)	$	(10,400	)	$	(5,293	)	$	(519	)	$	2,700	$	12,008		$	(22,898	)

	Three Months Ended December 31, 2023
	Real estate services			Rentals			Mortgage			Title			Monetization			Corporate overhead			Total
Net (loss) income from continuing operations	$	(21,394	)	$	(10,400	)	$	(5,293	)	$	(519	)	$	2,700		$	12,008		$	(22,898	)
Interest income⁽¹⁾		(18	)		(100	)		(2,176	)		(131	)		(106	)		(2,007	)		(4,538	)
Interest expense⁽²⁾		—			—			2,318			—			—			4,132			6,450
Income tax expense		—			—			68			—			—			29			97
Depreciation and amortization		3,201			9,808			935			28			218			255			14,445
Stock-based compensation⁽³⁾		10,961			3,073			(1,088	)		217			333			2,057			15,553
Restructuring and reorganization⁽⁴⁾		—			503			—			—			—			265			768
Impairment⁽⁵⁾		—			—			—			—			—			1,835			1,835
Gain on extinguishment of convertible senior notes		—			—			—			—			—			(25,171	)		(25,171	)
Adjusted EBITDA	$	(7,250	)	$	2,884		$	(5,236	)	$	(405	)	$	3,145		$	(6,597	)	$	(13,459	)
(1) Interest income includes $2.2 million of interest income related to originated mortgage loans for the three months ended December 31, 2023.
(2) Interest expense includes $2.2 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2023.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.
(5) Impairment consists of an impairment loss due to subleasing one of our operating leases.

	Year Ended December 31, 2024
	Real estate services			Rentals			Mortgage			Title		Monetization		Corporate overhead			Total
Revenue	$	642,867		$	203,739		$	139,829		$	37,509	$	19,035	$	—		$	1,042,979
Cost of revenue		487,513			47,724			115,556			27,024		961		—			678,778
Gross profit		155,354			156,015			24,273			10,485		18,074		—			364,201
Operating expenses
Technology and development		105,268			48,015			2,727			448		3,107		4,362			163,927
Marketing		57,961			53,490			2,988			37		4		1			114,481
General and administrative		74,794			88,447			25,428			3,215		1,520		41,960			235,364
Restructuring and reorganization		—			—			—			—		—		5,684			5,684
Total operating expenses		238,023			189,952			31,143			3,700		4,631		52,007			519,456
(Loss) income from continuing operations		(82,669	)		(33,937	)		(6,870	)		6,785		13,443		(52,007	)		(155,255	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		(25	)		197			(2,968	)		690		283		(7,723	)		(9,546	)
Net (loss) income from continuing operations	$	(82,694	)	$	(33,740	)	$	(9,838	)	$	7,475	$	13,726	$	(59,730	)	$	(164,801	)

	Year ended December 31, 2024
	Real estate services			Rentals			Mortgage			Title			Monetization			Corporate overhead			Total
Net (loss) income from continuing operations	$	(82,694	)	$	(33,740	)	$	(9,838	)	$	7,475		$	13,726		$	(59,730	)	$	(164,801	)
Interest income⁽¹⁾		(67	)		(365	)		(11,615	)		(690	)		(283	)		(4,944	)		(17,964	)
Interest expense⁽²⁾		—			—			14,208			—			—			24,798			39,006
Income tax expense		—			109			—			—			—			(639	)		(530	)
Depreciation and amortization		12,445			25,038			3,660			109			673			843			42,768
Stock-based compensation⁽³⁾		44,423			13,443			1,038			1,119			1,157			9,979			71,159
Restructuring and reorganization⁽⁴⁾		—			—			—			—			—			5,684			5,684
Gain on extinguishment of convertible senior notes		—			—			—			—			—			(12,000	)		(12,000	)
Legal contingencies⁽⁵⁾		—			—			—			—			—			10,154			10,154
Adjusted EBITDA	$	(25,893	)	$	4,485		$	(2,547	)	$	8,013		$	15,273		$	(25,855	)	$	(26,524	)
(1) Interest income includes $11.6 million of interest income related to originated mortgage loans for the year ended December 31, 2024.
(2) Interest expense includes $11.2 million of interest expense related to our warehouse credit facilities for the year ended December 31, 2024.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.
(5) Legal contingencies includes expenses related to material contingent liabilities resulting from litigation or other legal proceedings.

	Year Ended December 31, 2023
	Real estate services			Rentals			Mortgage			Title			Monetization		Corporate overhead			Total
Revenue⁽¹⁾	$	618,577		$	184,812		$	134,108		$	25,095		$	14,080	$	—		$	976,672
Cost of revenue		462,625			42,086			118,178			23,335			629		—			646,853
Gross profit		155,952			142,726			15,930			1,760			13,451		—			329,819
Operating expenses
Technology and development		108,201			63,934			2,871			510			3,994		3,784			183,294
Marketing		59,746			53,952			4,064			54			6		41			117,863
General and administrative		76,851			94,252			25,012			2,776			1,241		38,658			238,790
Restructuring and reorganization		—			503			—			—			—		7,424			7,927
Total operating expenses		244,798			212,641			31,947			3,340			5,241		49,907			547,874
(Loss) income from continuing operations		(88,846	)		(69,915	)		(16,017	)		(1,580	)		8,210		(49,907	)		(218,055	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		59			215			(392	)		348			364		91,069			91,663
Net (loss) income from continuing operations	$	(88,787	)	$	(69,700	)	$	(16,409	)	$	(1,232	)	$	8,574	$	41,162		$	(126,392	)
(1) Included in revenue is $1.2 million from providing services to our discontinued properties segment.

	Year ended December 31, 2023
	Real estate services			Rentals			Mortgage			Title			Monetization			Corporate overhead			Total
Net (loss) income from continuing operations	$	(88,787	)	$	(69,700	)	$	(16,409	)	$	(1,232	)	$	8,574		$	41,162		$	(126,392	)
Interest income⁽¹⁾		(59	)		(338	)		(11,238	)		(348	)		(364	)		(9,407	)		(21,754	)
Interest expense⁽²⁾		—			—			12,055			—			—			9,417			21,472
Income tax expense		—			123			289			—			—			567			979
Depreciation and amortization		16,020			39,876			3,864			137			865			2,000			62,762
Stock-based compensation⁽³⁾		44,002			14,653			1,466			885			1,361			8,334			70,701
Acquisition-related costs⁽⁴⁾		—			—			—			—			—			8			8
Restructuring and reorganization⁽⁵⁾		—			503			—			—			—			7,424			7,927
Impairment⁽⁶⁾		—			—			—			—			—			1,948			1,948
Gain on extinguishment of convertible senior notes		—			—			—			—			—			(94,019	)		(94,019	)
Adjusted EBITDA		(28,824	)		(14,883	)		(9,973	)		(558	)		10,436			(32,566	)		(76,368	)
(1) Interest income includes $11.2 million of interest income related to originated mortgage loans for the year ended December 31, 2023.
(2) Interest expense includes $11.9 million of interest expense related to our warehouse credit facilities for the year ended December 31, 2023.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.
(6) Impairment consists of impairment losses due to subleasing two of our operating leases.

Redfin Corporation and Subsidiaries Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance (unaudited, in millions)

	Three Months Ended March 31, 2025
	Low			High
Net loss	$	(94	)	$	(83	)
Net interest expense		6			6
Depreciation and amortization		9			9
Stock-based compensation		15			15
Restructuring and reorganization		24			21
Adjusted EBITDA	$	(39	)	$	(32	)

View source version on businesswire.com: https://www.businesswire.com/news/home/20250227416933/en/

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Meg Nunnally

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Alina Ptaszynski

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Redfin Reports Fourth Quarter and Full Year 2024 Financial Results