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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) November 7, 2024
Redfin Corporation
(Exact name of registrant as specified in its charter)
Delaware
001-3816074-3064240
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
1099 Stewart Street
Suite 600
Seattle
WA
98101
(Address of principal executive offices)
(Zip Code)
(206)576-8333
Registrant's telephone number, including area code
(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, $0.001 par value per shareRDFNThe Nasdaq Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.☐


Item 2.02 Results of Operations and Financial Condition.

On November 7, 2024, we reported our financial results for the quarter ended September 30, 2024. A copy of our earnings release is furnished as exhibit 99.1 to this report.

Item 9.01 Financial Statements and Exhibits.
Exhibit Number
Description
99.1
104
Cover page interactive data file, submitted using inline XBRL

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Redfin Corporation
(Registrant)
Date: November 7, 2024
/s/ Chris Nielsen
Chris Nielsen
Chief Financial Officer



redfinlogoa14.jpg

Redfin Reports Third Quarter 2024 Financial Results

SEATTLE - November 7, 2024 - Redfin Corporation (NASDAQ: RDFN) today announced results for its third quarter ended September 30, 2024.

Third Quarter 2024
Third quarter revenue was $278.0 million, an increase of 3% compared to the third quarter of 2023. Gross profit was $101.9 million, an increase of 4% year-over-year. Real estate services gross profit was $48.7 million, a decrease of 10% year-over-year, and real estate services gross margin was 28%, compared to 30% in the third quarter of 2023.

Net loss was $33.8 million, compared to a net loss of $19.0 million in the third quarter of 2023. Net loss attributable to common stock was $34.1 million. Net loss per share attributable to common stock, diluted, was $0.28, compared to net loss per share, diluted, of $0.17 in the third quarter of 2023.

Adjusted EBITDA was $3.9 million, down from an adjusted EBITDA of $7.7 million in the third quarter of 2023.

“Redfin’s third-quarter results were within our guidance range, and we’re now forecasting fourth-quarter growth in market share and revenues,” said Redfin CEO Glenn Kelman. “Already, shifting our real estate agents to a commissions-based model has improved close rates, with industry-leading attach rates for mortgage and title services. And now, the growth in our digital businesses and our reductions in headquarters costs will let us fund more demand-generation. With plans to hire hundreds of agents between now and next spring, we’re emerging from a year of record low U.S. home sales ready to go on the attack.”

Third Quarter Highlights
•Third quarter market share was 0.76% of U.S. existing home sales by units, compared to 0.78% in the third quarter of 2023.
•Average lead agents of 1,757, up 1 percent compared to the third quarter of 2023 and marking Redfin’s second straight quarter of sequential agent growth.
•Achieved a 27% mortgage attach rate in the third quarter of 2024, up from 22% in the third quarter of 2023.1
•Maintained momentum in loyalty sales, with 37% of sales coming from loyalty customers compared to 36% in the third quarter of 2023.
•Announced the nationwide expansion of our Redfin Next agent pay plan and transitioned all existing agents to the plan on October 27. To date, Redfin has hired more than 500 agents to join the brokerage under Next.
•Launched Redfin Teams nationwide, helping teams of up to five agents formally partner to expand their business and grow their career to a new level. More than 180 agents have joined the program since it launched in September, including over 50 who are new to the brokerage.
1

•Extended Redfin Redesign’s reach by partnering with five additional multiple listing services. The AI-powered home design tool is now available on more than 355,000 for-sale listings across the U.S. and to any U.S. homeowner who has claimed their home on Redfin.
•Expanded Redfin’s rental tools nationwide, which was announced on October 15. Property managers across the country can now use Redfin to list rental homes for free, connect with renters across Redfin’s family of sites, and manage the application and renter screening process.
•Supported agents and customers through the National Association of Realtors settlement changes by integrating a consumer-friendly fee agreement into our tour scheduling process and giving customers who commit to Redfin early a better deal through Sign & Save.

(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 21% in the third quarter of 2024, compared to 18% in the third quarter of 2023.

Business Outlook
The following forward-looking statements reflect Redfin's expectations as of November 7, 2024, and are subject to substantial uncertainty.

For the fourth quarter of 2024 we expect:
•Total revenue between $237 million and $247 million, representing a year-over-year growth between 9% and 13% compared to the fourth quarter of 2023. Included within total revenue are real estate services revenue between $144 million and $150 million, rentals revenue of $51 million, mortgage revenue between $28 million and $32 million and other revenue between $13 million and $14 million.
•Total net loss is expected to be between $32 million and $25 million, compared to net loss of $23 million in the fourth quarter of 2023. This guidance includes approximately $22 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $7 million in net interest expense. Adjusted EBITDA is expected to be between $1 million and $8 million. Furthermore, we expect to pay a final dividend of 20,427 shares of common stock to our preferred stockholder.

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, 2023, as supplemented by our quarterly report for the quarter ended March 31, 2024, each of which are 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.

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Non-GAAP Financial Measure
To supplement our consolidated financial statements that are prepared and presented in accordance with GAAP, we also compute and present adjusted EBITDA, which is a non-GAAP financial measure. We believe adjusted EBITDA is useful for investors because it enhances period-to-period comparability of our financial statements on a consistent basis and provides investors with useful insight into the underlying trends of the business. The presentation of this financial measure is not intended to be considered in isolation or as a substitute of, or superior to, our financial information prepared and presented in accordance with GAAP. Our calculation of adjusted EBITDA may be different from adjusted EBITDA or similar non-GAAP financial measures used by other companies, limiting its usefulness for comparison purposes. Our adjusted EBITDA for the three and nine months ended September 30, 2024 and 2023 is presented below, along with a reconciliation of adjusted EBITDA to net loss.

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 $1.6 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin-F

Contacts

Investor Relations
Meg Nunnally
ir@redfin.com

Public Relations
Mariam Sughayer
press@redfin.com


3

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

September 30, 2024December 31, 2023
Assets
Current assets
Cash and cash equivalents$165,660 $149,759 
Restricted cash174 1,241 
Short-term investments— 41,952 
Accounts receivable, net of allowances for credit losses of $3,945 and $3,234
74,971 51,738 
Loans held for sale212,921 159,587 
Prepaid expenses30,531 33,296 
Other current assets20,514 7,472 
Total current assets504,771 445,045 
Property and equipment, net43,312 46,431 
Right-of-use assets, net26,275 31,763 
Mortgage servicing rights, at fair value2,534 32,171 
Long-term investments— 3,149 
Goodwill461,349 461,349 
Intangible assets, net104,127 123,284 
Other assets, noncurrent8,705 10,456 
Total assets$1,151,073 $1,153,648 
Liabilities, mezzanine equity, and stockholders' (deficit) equity
Current liabilities
Accounts payable$14,280 $10,507 
Accrued and other liabilities101,040 90,360 
Warehouse credit facilities208,817 151,964 
Lease liabilities13,347 15,609 
Total current liabilities337,484 268,440 
Lease liabilities, noncurrent22,853 29,084 
Convertible senior notes, net, noncurrent571,644 688,737 
Term loan243,646 124,416 
Deferred tax liabilities647 264 
Total liabilities1,176,274 1,110,941 
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding at September 30, 2024 and December 31, 202339,992 39,959 
Stockholders’ (deficit) equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 123,945,380 and 117,372,171 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively124 117 
Additional paid-in capital886,592 826,146 
Accumulated other comprehensive loss(140)(182)
Accumulated deficit(951,769)(823,333)
Total stockholders’ (deficit) equity(65,193)2,748 
Total liabilities, mezzanine equity, and stockholders’ (deficit) equity$1,151,073 $1,153,648 
4

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

Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Revenue$278,015 $268,956 $798,697 $758,595 
Cost of revenue(1)
176,152 170,616 516,436 501,927 
Gross profit101,863 98,340 282,261 256,668 
Operating expenses
Technology and development(1)
40,332 44,392 128,976 139,196 
Marketing(1)
27,186 24,095 92,324 97,531 
General and administrative(1)
58,788 55,380 181,366 186,584 
Restructuring and reorganization2,509 — 4,732 7,159 
Total operating expenses128,815 123,867 407,398 430,470 
Loss from continuing operations(26,952)(25,527)(125,137)(173,802)
Interest income1,839 2,060 5,132 8,170 
Interest expense(8,537)(1,603)(19,497)(5,291)
Income tax expense12 (239)(375)(882)
Gain on extinguishment of convertible senior notes— 6,495 12,000 68,848 
Other expense, net(144)(158)(559)(537)
Net loss from continuing operations(33,782)(18,972)(128,436)(103,494)
Net loss from discontinued operations— — — (3,634)
Net loss$(33,782)$(18,972)$(128,436)$(107,128)
Dividends on convertible preferred stock(282)(335)(706)(858)
Net loss from continuing operations attributable to common stock—basic and diluted$(34,064)$(19,307)$(129,142)$(104,352)
Net loss attributable to common stock—basic and diluted$(34,064)$(19,307)$(129,142)$(107,986)
Net loss from continuing operations per share attributable to common stock—basic and diluted$(0.28)$(0.17)$(1.07)$(0.93)
Net loss attributable to common stock per share—basic and diluted$(0.28)$(0.17)$(1.07)$(0.96)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted122,876,102 114,592,679 120,553,264 112,141,342 
Net loss$(33,782)$(18,972)$(128,436)$(107,128)
Other comprehensive income
Foreign currency translation adjustments4 (15)2 (73)
Unrealized gain on available-for-sale debt securities
— 210 40 617 
Comprehensive loss$(33,778)$(18,777)$(128,394)$(106,584)

(1) Includes stock-based compensation as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Cost of revenue$2,819 $3,037 $8,603 $10,173 
Technology and development9,135 8,391 26,092 24,759 
Marketing1,131 1,337 3,911 3,836 
General and administrative5,217 6,035 15,336 16,380 
Total$18,302 $18,800 $53,942 $55,148 


5

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

Nine Months Ended September 30,
20242023
Operating Activities
Net loss
$(128,436)$(107,128)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization33,340 48,443 
Stock-based compensation53,942 55,382 
Amortization of debt discount and issuance costs2,280 2,873 
Non-cash lease expense9,046 12,909 
Impairment costs— 113 
Net gain on IRLCs, forward sales commitments, and loans held for sale(1,809)(1,767)
Change in fair value of mortgage servicing rights, net(742)1,065 
Gain on extinguishment of convertible senior notes(12,000)(68,848)
Other548 (2,013)
Change in assets and liabilities:
Accounts receivable, net(23,377)(238)
Inventory— 114,232 
Prepaid expenses and other assets(10,141)9,696 
Accounts payable3,802 177 
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent11,772 (19,346)
Lease liabilities(11,993)(14,864)
Origination of mortgage servicing rights(170)(699)
Proceeds from sale of mortgage servicing rights30,549 1,122 
Origination of loans held for sale(3,071,291)(2,798,337)
Proceeds from sale of loans originated as held for sale3,018,634 2,858,656 
Net cash (used in) provided by operating activities(96,046)91,428 
Investing activities
Purchases of property and equipment(8,984)(9,235)
Purchases of investments— (76,866)
Sales of investments39,225 124,681 
Maturities of investments6,395 59,383 
Net cash provided by investing activities36,636 97,963 
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans4,757 5,790 
Tax payments related to net share settlements on restricted stock units(1,574)(15,961)
Borrowings from warehouse credit facilities3,088,179 2,803,589 
Repayments to warehouse credit facilities(3,031,326)(2,861,779)
Principal payments under finance lease obligations(56)(73)
Repurchases of convertible senior notes(106,953)(212,401)
Repayment of term loan principal(1,563)— 
Payments of debt issuance costs(2,222)— 
Proceeds from term loan125,000 — 
Net cash provided by (used in) financing activities74,242 (304,347)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash2 (73)
Net change in cash, cash equivalents, and restricted cash14,834 (115,029)
Cash, cash equivalents, and restricted cash:
Beginning of period151,000 242,246 
End of period
$165,834 $127,217 
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Redfin Corporation and Subsidiaries
Supplemental Financial Information and Business Metrics
(unaudited)

Three Months Ended
Sep. 30, 2024Jun. 30, 2024Mar. 31, 2024Dec. 31, 2023Sep. 30, 2023Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022
Monthly average visitors (in thousands)49,413 51,619 48,803 43,861 51,309 52,308 50,440 43,847 
Real estate services transactions
Brokerage13,324 14,178 10,039 10,152 13,075 13,716 10,301 12,743 
Partner3,440 3,395 2,691 3,186 4,351 3,952 3,187 2,742 
Total16,764 17,573 12,730 13,338 17,426 17,668 13,488 15,485 
Real estate services revenue per transaction
Brokerage$12,363 $12,545 $12,433 $12,248 $12,704 $12,376 $11,556 $10,914 
Partner3,025 2,859 2,367 2,684 2,677 2,756 2,592 2,611 
Aggregate10,447 10,674 10,305 9,963 10,200 10,224 9,438 9,444 
U.S. market share by units
0.76 %0.77 %0.77 %0.72 %0.78 %0.75 %0.79 %0.76 %
Revenue from top-10 Redfin markets as a percentage of real estate services revenue56 %56 %55 %55 %56 %55 %53 %57 %
Average number of lead agents
1,757 1,719 1,658 1,692 1,744 1,792 1,876 2,022 
Mortgage originations by dollars (in millions)$1,214 $1,338 $969 $885 $1,110 $1,282 $991 $1,036 
Mortgage originations by units (in ones)2,900 3,192 2,365 2,293 2,786 3,131 2,444 2,631 













7

Redfin Corporation and Subsidiaries
Supplemental Financial Information
(unaudited, in thousands)

Three Months Ended September 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Revenue
$175,136 $51,660 $35,621 $15,598 $— $278,015 
Cost of revenue126,421 12,366 30,214 7,151 — 176,152 
Gross profit48,715 39,294 5,407 8,447 — 101,863 
Operating expenses
Technology and development26,927 10,648 675 889 1,193 40,332 
Marketing12,907 13,600 667 12 — 27,186 
General and administrative18,263 24,074 5,885 1,215 9,351 58,788 
Restructuring and reorganization— — — — 2,509 2,509 
Total operating expenses58,097 48,322 7,227 2,116 13,053 128,815 
(Loss) income from continuing operations(9,382)(9,028)(1,820)6,331 (13,053)(26,952)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net38 100 (2,966)266 (4,268)(6,830)
Net (loss) income from continuing operations$(9,344)$(8,928)$(4,786)$6,597 $(17,321)$(33,782)

Three Months Ended September 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Net (loss) income from continuing operations$(9,344)$(8,928)$(4,786)$6,597 $(17,321)$(33,782)
Interest income(1)
(10)(111)(3,392)(266)(1,451)(5,230)
Interest expense(2)
— — 6,208 — 5,565 11,773 
Income tax expense— 11 — — (23)(12)
Depreciation and amortization3,002 5,077 895 227 283 9,484 
Stock-based compensation(3)
11,333 3,515 (89)588 2,955 18,302 
Restructuring and reorganization(4)
— — — — 2,509 2,509 
Legal contingencies(5)
— — — — 904 904 
Adjusted EBITDA$4,981 $(436)$(1,164)$7,146 $(6,579)$3,948 
(1) Interest income includes $3.4 million of interest income related to originated mortgage loans for the three months ended September 30, 2024.
(2) Interest expense includes $3.2 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 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.
(5) Legal contingencies includes expenses related to significant contingent liabilities resulting from litigation or other legal proceedings.
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Three Months Ended September 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Revenue$177,750 $47,410 $32,923 $10,873 $— $268,956 
Cost of revenue123,684 10,824 29,629 6,479 — 170,616 
Gross profit54,066 36,586 3,294 4,394 — 98,340 
Operating expenses
Technology and development25,711 15,813 800 1,133 935 44,392 
Marketing10,785 12,245 1,088 20 (43)24,095 
General and administrative18,418 21,838 6,670 952 7,502 55,380 
Restructuring and reorganization— — — — — — 
Total operating expenses54,914 49,896 8,558 2,105 8,394 123,867 
(Loss) income from continuing operations
(848)(13,310)(5,264)2,289 (8,394)(25,527)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net
41 42 (73)207 6,338 6,555 
Net (loss) income from continuing operations
$(807)$(13,268)$(5,337)$2,496 $(2,056)$(18,972)
Three Months Ended September 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Net (loss) income from continuing operations$(807)$(13,268)$(5,337)$2,496 $(2,056)$(18,972)
Interest income(1)
(41)(81)(2,886)(207)(1,732)(4,947)
Interest expense(2)
— — 3,132 — 1,598 4,730 
Income tax expense— 37 70 — 132 239 
Depreciation and amortization3,123 9,681 947 233 312 14,296 
Stock-based compensation(3)
11,151 4,255 473 574 2,347 18,800 
Gain on extinguishment of convertible senior notes— — — — (6,495)(6,495)
Adjusted EBITDA$13,426 $624 $(3,601)$3,096 $(5,894)$7,651 
(1) Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended September 30, 2023.
(2) Interest expense includes $3.1 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 2023.
(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.



9

Nine Months Ended September 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Revenue
$493,885 $152,105 $109,619 $43,088 $— $798,697 
Cost of revenue371,198 35,453 88,646 21,139 — 516,436 
Gross profit122,687 116,652 20,973 21,949 — 282,261 
Operating expenses
Technology and development84,354 36,577 2,031 2,686 3,328 128,976 
Marketing47,939 42,137 2,221 27 — 92,324 
General and administrative57,178 66,794 19,087 3,279 35,028 181,366 
Restructuring and reorganization— — — — 4,732 4,732 
Total operating expenses189,471 145,508 23,339 5,992 43,088 407,398 
(Loss) income from continuing operations(66,784)(28,856)(2,366)15,957 (43,088)(125,137)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net6 65 (2,962)690 (1,098)(3,299)
Net (loss) income from continuing operations$(66,778)$(28,791)$(5,328)$16,647 $(44,186)$(128,436)

Nine Months Ended September 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Net (loss) income from continuing operations$(66,778)$(28,791)$(5,328)$16,647 $(44,186)$(128,436)
Interest income(1)
(40)(233)(8,416)(690)(4,169)(13,548)
Interest expense(2)
— — 11,246 — 16,522 27,768 
Income tax expense— 109 — — 266 375 
Depreciation and amortization9,302 19,888 2,779 667 704 33,340 
Stock-based compensation(3)
34,246 9,978 663 1,688 7,367 53,942 
Restructuring and reorganization(4)
— — — — 4,732 4,732 
Gain on extinguishment of convertible senior notes— — — — (12,000)(12,000)
Legal contingencies(5)
— — — — 10,154 10,154 
Adjusted EBITDA$(23,270)$951 $944 $18,312 $(20,610)$(23,673)
(1) Interest income includes $8.4 million of interest income related to originated mortgage loans for the nine months ended September 30, 2024.
(2) Interest expense includes $8.3 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 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.
(5) Legal contingencies includes expenses related to significant contingent liabilities resulting from litigation or other legal proceedings.
10

Nine Months Ended September 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Revenue(1)
$485,687 $135,636 $107,838 $29,434 $— $758,595 
Cost of revenue359,625 31,016 93,108 18,178 — 501,927 
Gross profit126,062 104,620 14,730 11,256 — 256,668 
Operating expenses
Technology and development82,650 48,081 2,177 3,475 2,813 139,196 
Marketing51,849 42,509 3,122 46 5 97,531 
General and administrative58,997 73,445 20,323 3,049 30,770 186,584 
Restructuring and reorganization— — — — 7,159 7,159 
Total operating expenses193,496 164,035 25,622 6,570 40,747 430,470 
(Loss) income from continuing operations
(67,434)(59,415)(10,892)4,686 (40,747)(173,802)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net
41 115 (224)475 69,901 70,308 
Net (loss) income from continuing operations
$(67,393)$(59,300)$(11,116)$5,161 $29,154 $(103,494)
(1) Included in revenue is $1.2 million from providing services to our discontinued properties segment.
Nine Months Ended September 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Net (loss) income from continuing operations
$(67,393)$(59,300)$(11,116)$5,161 $29,154 $(103,494)
Interest income(1)
(41)(238)(9,062)(475)(7,400)(17,216)
Interest expense(2)
— — 9,737 — 5,285 15,022 
Income tax expense— 123 222 — 537 882 
Depreciation and amortization12,819 30,068 2,929 756 1,745 48,317 
Stock-based compensation(3)
33,041 11,580 2,554 1,696 6,277 55,148 
Acquisition-related costs(4)
— — — — 8 8 
Restructuring and reorganization(5)
— — — — 7,159 7,159 
Impairment(6)
— — — — 113 113 
Gain on extinguishment of convertible senior notes— — — — (68,848)(68,848)
Adjusted EBITDA$(21,574)$(17,767)$(4,736)$7,138 $(25,970)$(62,909)
(1) Interest income includes $9.0 million of interest income related to originated mortgage loans for the nine months ended September 30, 2023.
(2) Interest expense includes $9.7 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 2023.
(3) Stock-based compensation consists of expenses related to 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 an impairment loss due to subleasing one of our operating leases.

11

Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance
(unaudited, in millions)

Three months ending December 31, 2024
LowHigh
Net loss(32)(25)
Net interest expense6 6 
Depreciation and amortization9 9 
Stock-based compensation18 18 
Adjusted EBITDA1 8 
Note: Figures may not sum due to rounding.
12
v3.24.3
Cover Page
Nov. 07, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Nov. 07, 2024
Entity Registrant Name Redfin Corporation
Entity Incorporation, State or Country Code DE
Entity File Number 001-38160
Entity Tax Identification Number 74-3064240
Entity Address, Address Line One 1099 Stewart Street
Entity Address, Address Line Two Suite 600
Entity Address, City or Town Seattle
Entity Address, State or Province WA
Entity Address, Postal Zip Code 98101
City Area Code (206)
Local Phone Number 576-8333
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.001 par value per share
Trading Symbol RDFN
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001382821
Amendment Flag false
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