Redfin Corporation (NASDAQ:RDFN) today announced results for its second quarter ended June 30, 2024.

Second Quarter 2024

Second quarter revenue was $295.2 million, an increase of 7% compared to the second quarter of 2023. Gross profit was $109.6 million, an increase of 9% year-over-year. Real estate services gross profit was $53.7 million, a decrease of 4% year-over-year, and real estate services gross margin was 29%, compared to 31% in the second quarter of 2023.

Net loss was $27.9 million, compared to a net loss of $27.4 million in the second quarter of 2023. Net loss attributable to common stock was $28.1 million. Net loss per share attributable to common stock, diluted, was $0.23, compared to net loss per share, diluted, of $0.25 in the second quarter of 2023.

Adjusted EBITDA was flat, up from an adjusted EBITDA loss of $6.9 million in the second quarter of 2023.

"In a still-declining market, Redfin grew revenues, profits and market share," said Redfin CEO Glenn Kelman. "The restructuring of our brokerage sales force, and the integration of Rent and Redfin operations, cap a series of seismic changes to increase Redfin's profitability: we had already abandoned our own loan-origination system in 2022. In 2023, we closed our iBuying business, RedfinNow, and invested in digital businesses that immediately began contributing significant profits. Our adjusted EBITDA should be about break-even this year, and we plan to be significantly profitable in the years ahead."

Second Quarter Highlights

Second quarter market share was 0.77% of U.S. existing home sales by units, compared to 0.75% in the second quarter of 2023.
Redfin's mobile apps and website reached nearly 52 million average monthly users, compared to 52 million the second quarter of 2023.
Achieved a 28% mortgage attach rate in the second quarter of 2024, up 4 points from the second quarter of 2023.¹
Sequential step-up in loyalty sales, with 37% of sales coming from loyalty customers compared to 34% in the first quarter of 2024.
Announced our Redfin Next agent pay plan will expand to 25 additional markets in August, bringing the program to markets accounting for approximately 74% of brokerage revenues. To date, Redfin has signed more than 200 top producing agents to join the brokerage under Redfin Next.
Launched Redfin Redesign for homeowners, helping those who have claimed their home on Redfin use AI to redesign their spaces. We also partnered with five additional MLSs to make Redfin Redesign available for more than 240,000 for-sale listings.
Launched products to help property managers connect with renters:
- Self-service rental tools on Redfin.com that allow homeowners, investors, property managers and agents to list properties for rent on Redfin.
- Rent.com photo optimization feature that uses machine learning to arrange rental listing photos to drive the most renter engagement.

(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 the second quarter of 2024, compared to 19% in the second quarter of 2023.

Business Outlook

The following forward-looking statements reflect Redfin's expectations as of August 6, 2024, and are subject to substantial uncertainty.

For the third quarter of 2024 we expect:

Total revenue between $273 million and $285 million, representing a year-over-year growth between 1% and 6% compared to the third quarter of 2023. Included within total revenue are real estate services revenue between $171 million and $179 million, rentals revenue between $50 million and $51 million, mortgage revenue between $36 million and $39 million and other revenue between $15 million and $16 million.
Total net loss is expected to be between $30 million and $22 million, compared to net loss of $19 million in the third quarter of 2023. This guidance includes approximately $29 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $6 million in net interest expense. Adjusted EBITDA is expected to be between $4 million and $12 million. Furthermore, we expect to pay a quarterly dividend of 30,640 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, both 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.

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 six months ended June 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, title insurance, and renovations 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. Customers selling a home can have our renovations crew fix it up to sell for top dollar. 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 more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin-F

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

	June 30, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	201,812		$	149,759
Restricted cash		756			1,241
Short-term investments		—			41,952
Accounts receivable, net of allowances for credit losses of $4,677 and $3,234		75,522			51,738
Loans held for sale		208,460			159,587
Prepaid expenses		28,002			33,296
Other current assets		9,872			7,472
Total current assets		524,424			445,045
Property and equipment, net		45,303			46,431
Right-of-use assets, net		28,389			31,763
Mortgage servicing rights, at fair value		2,695			32,171
Long-term investments		—			3,149
Goodwill		461,349			461,349
Intangible assets, net		108,832			123,284
Other assets, noncurrent		10,492			10,456
Total assets	$	1,181,484		$	1,153,648
Liabilities, mezzanine equity, and stockholders' (deficit) equity
Current liabilities
Accounts payable	$	11,612		$	10,507
Accrued and other liabilities		125,082			90,360
Warehouse credit facilities		202,559			151,964
Lease liabilities		14,123			15,609
Total current liabilities		353,376			268,440
Lease liabilities, noncurrent		25,193			29,084
Convertible senior notes, net, noncurrent		571,077			688,737
Term loan		243,961			124,416
Deferred tax liabilities		642			264
Total liabilities		1,194,249			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 June 30, 2024 and December 31, 2023		39,981			39,959
Stockholders' (deficit) equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 121,743,620 and 117,372,171 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively		122			117
Additional paid-in capital		865,263			826,146
Accumulated other comprehensive loss		(144	)		(182	)
Accumulated deficit		(917,987	)		(823,333	)
Total stockholders' (deficit) equity		(52,746	)		2,748
Total liabilities, mezzanine equity, and stockholders' (deficit) equity	$	1,181,484		$	1,153,648

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
Revenue	$	295,203		$	275,556		$	520,682		$	489,639
Cost of revenue⁽¹⁾		185,617			175,366			340,284			331,311
Gross profit		109,586			100,190			180,398			158,328
Operating expenses
Technology and development⁽¹⁾		42,215			47,141			88,644			94,804
Marketing⁽¹⁾		40,260			33,033			65,138			73,436
General and administrative⁽¹⁾		54,705			61,765			122,578			131,204
Restructuring and reorganization		1,334			6,106			2,223			7,159
Total operating expenses		138,514			148,045			278,583			306,603
Loss from continuing operations		(28,928	)		(47,855	)		(98,185	)		(148,275	)
Interest income		1,461			2,704			3,293			6,110
Interest expense		(6,086	)		(1,766	)		(10,960	)		(3,688	)
Income tax expense		(559	)		(233	)		(387	)		(643	)
Gain on extinguishment of convertible senior notes		6,314			20,083			12,000			62,353
Other expense, net		(82	)		(145	)		(415	)		(379	)
Net loss from continuing operations		(27,880	)		(27,212	)		(94,654	)		(84,522	)
Net loss from discontinued operations		—			(146	)		—			(3,634	)
Net loss	$	(27,880	)	$	(27,358	)	$	(94,654	)	$	(88,156	)

Dividends on convertible preferred stock		(191	)		(297	)		(424	)		(523	)

Net loss from continuing operations attributable to common stock—basic and diluted	$	(28,071	)	$	(27,509	)	$	(95,078	)	$	(85,045	)
Net loss attributable to common stock—basic and diluted	$	(28,071	)	$	(27,655	)	$	(95,078	)	$	(88,679	)

Net loss from continuing operations per share attributable to common stock—basic and diluted	$	(0.23	)	$	(0.25	)	$	(0.80	)	$	(0.77	)
Net loss attributable to common stock per share—basic and diluted	$	(0.23	)	$	(0.25	)	$	(0.80	)	$	(0.80	)

Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted		120,393,897			111,678,417			119,379,082			110,895,358

Net loss	$	(27,880	)	$	(27,358	)	$	(94,654	)	$	(88,156	)
Other comprehensive income (loss)
Foreign currency translation adjustments		1			—			(2	)		(58	)
Unrealized (loss) gain on available-for-sale debt securities		—			(17	)		40			407
Comprehensive loss	$	(27,879	)	$	(27,375	)	$	(94,616	)	$	(87,807	)

(1) Includes stock-based compensation as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cost of revenue	$	3,045	$	3,001	$	5,784	$	7,136
Technology and development		8,718		8,241		16,957		16,368
Marketing		1,349		1,254		2,780		2,499
General and administrative		5,119		5,025		10,119		10,345
Total	$	18,231	$	17,521	$	35,640	$	36,348

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

	Six Months Ended June 30,
	2024			2023
Operating Activities
Net loss	$	(94,654	)	$	(88,156	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		23,855			34,146
Stock-based compensation		35,640			36,582
Amortization of debt discount and issuance costs		1,372			2,029
Non-cash lease expense		6,164			9,578
Impairment costs		—			113
Net gain on IRLCs, forward sales commitments, and loans held for sale		(2,196	)		(4,565	)
Change in fair value of mortgage servicing rights, net		(944	)		599
Gain on extinguishment of convertible senior notes		(12,000	)		(62,353	)
Other		380			(1,794	)
Change in assets and liabilities:
Accounts receivable, net		(23,928	)		(14,069	)
Inventory		—			114,232
Prepaid expenses and other assets		2,100			8,868
Accounts payable		1,135			2,812
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent		35,360			(4,522	)
Lease liabilities		(8,116	)		(10,790	)
Origination of mortgage servicing rights		(84	)		(579	)
Proceeds from sale of mortgage servicing rights		30,503			738
Origination of loans held for sale		(1,989,240	)		(1,922,690	)
Proceeds from sale of loans originated as held for sale		1,940,725			1,888,706
Net cash used in operating activities		(53,928	)		(11,115	)
Investing activities
Purchases of property and equipment		(6,795	)		(6,213	)
Purchases of investments		—			(76,866	)
Sales of investments		39,225			65,099
Maturities of investments		6,395			59,383
Net cash provided by investing activities		38,825			41,403
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans		2,158			5,665
Tax payments related to net share settlements on restricted stock units		(940	)		(11,096	)
Borrowings from warehouse credit facilities		1,987,822			1,920,487
Repayments to warehouse credit facilities		(1,937,227	)		(1,883,196	)
Principal payments under finance lease obligations		(46	)		(53	)
Repurchases of convertible senior notes		(106,953	)		(183,019	)
Repayment of term loan principal		(938	)		—
Payments of debt issuance costs		(2,203	)		—
Proceeds from term loan		125,000			—
Net cash provided by (used in) financing activities		66,673			(151,212	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		(2	)		(58	)
Net change in cash, cash equivalents, and restricted cash		51,568			(120,982	)
Cash, cash equivalents, and restricted cash:
Beginning of period		151,000			242,246
End of period	$	202,568		$	121,264

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

	Three Months Ended
	Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022
Monthly average visitors (in thousands)		51,619			48,803			43,861			51,309			52,308			50,440			43,847			50,785
Real estate services transactions
Brokerage		14,178			10,039			10,152			13,075			13,716			10,301			12,743			18,245
Partner		3,395			2,691			3,186			4,351			3,952			3,187			2,742			3,507
Total		17,573			12,730			13,338			17,426			17,668			13,488			15,485			21,752
Real estate services revenue per transaction
Brokerage	$	12,545		$	12,433		$	12,248		$	12,704		$	12,376		$	11,556		$	10,914		$	11,103
Partner		2,859			2,367			2,684			2,677			2,756			2,592			2,611			2,556
Aggregate		10,674			10,305			9,963			10,200			10,224			9,438			9,444			9,725
U.S. market share by units		0.77	%		0.77	%		0.72	%		0.78	%		0.75	%		0.79	%		0.76	%		0.80	%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue		56	%		55	%		55	%		56	%		55	%		53	%		57	%		58	%
Average number of lead agents		1,719			1,658			1,692			1,744			1,792			1,876			2,022			2,293
Mortgage originations by dollars (in millions)	$	1,338		$	969		$	885		$	1,110		$	1,282		$	991		$	1,036		$	1,557
Mortgage originations by units (in ones)		3,192			2,365			2,293			2,786			3,131			2,444			2,631			3,720

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

	Three Months Ended June 30, 2024
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Revenue	$	187,569		$	50,927		$	40,179		$	16,528		$	—		$	295,203
Cost of revenue		133,863			11,630			32,528			7,596			—			185,617
Gross profit		53,706			39,297			7,651			8,932			—			109,586
Operating expenses
Technology and development		28,920			10,417			700			965			1,213			42,215
Marketing		23,855			15,749			648			8			—			40,260
General and administrative		19,140			20,242			6,519			910			7,894			54,705
Restructuring and reorganization		—			—			—			—			1,334			1,334
Total operating expenses		71,915			46,408			7,867			1,883			10,441			138,514
(Loss) income from continuing operations		(18,209	)		(7,111	)		(216	)		7,049			(10,441	)		(28,928	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		14			(42	)		1			180			895			1,048
Net (loss) income from continuing operations	$	(18,195	)	$	(7,153	)	$	(215	)	$	7,229		$	(9,546	)	$	(27,880	)

	Three Months Ended June 30, 2024
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Net (loss) income from continuing operations	$	(18,195	)	$	(7,153	)	$	(215	)	$	7,229		$	(9,546	)	$	(27,880	)
Interest income⁽¹⁾		(14	)		(51	)		(2,990	)		(180	)		(1,217	)		(4,452	)
Interest expense⁽²⁾		—			—			2,953			—			6,084			9,037
Income tax expense		—			38			—			—			521			559
Depreciation and amortization		3,116			4,972			920			242			207			9,457
Stock-based compensation⁽³⁾		11,525			3,125			476			600			2,505			18,231
Restructuring and reorganization⁽⁴⁾		—			—			—			—			1,334			1,334
Gain on extinguishment of convertible senior notes		—			—			—			—			(6,314	)		(6,314	)
Adjusted EBITDA	$	(3,568	)	$	931		$	1,144		$	7,891		$	(6,426	)	$	(28	)
(1) Interest income includes $3.0 million of interest income related to originated mortgage loans for the three months ended June 30, 2024.
(2) Interest expense includes $3.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2024.
(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.
(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 June 30, 2023
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Revenue⁽¹⁾	$	180,641		$	45,356		$	38,426		$	11,133		$	—		$	275,556
Cost of revenue		124,447			10,427			34,266			6,226			—			175,366
Gross profit		56,194			34,929			4,160			4,907			—			100,190
Operating expenses
Technology and development		28,044			16,304			734			1,118			941			47,141
Marketing		16,004			15,938			1,054			16			21			33,033
General and administrative		20,961			25,305			6,724			1,044			7,731			61,765
Restructuring and reorganization		—			—			—			—			6,106			6,106
Total operating expenses		65,009			57,547			8,512			2,178			14,799			148,045
(Loss) income from continuing operations		(8,815	)		(22,618	)		(4,352	)		2,729			(14,799	)		(47,855	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		—			28			(91	)		153			20,553			20,643
Net (loss) income from continuing operations	$	(8,815	)	$	(22,590	)	$	(4,443	)	$	2,882		$	5,754		$	(27,212	)
(1) Included in revenue is $0.1 million from providing services to our discontinued properties segment.

	Three Months Ended June 30, 2023
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Net (loss) income from continuing operations	$	(8,815	)	$	(22,590	)	$	(4,443	)	$	2,882		$	5,754		$	(27,212	)
Interest income⁽¹⁾		—			(77	)		(3,686	)		(153	)		(2,467	)		(6,383	)
Interest expense⁽²⁾		—			—			3,990			—			1,766			5,756
Income tax expense		—			43			83			—			107			233
Depreciation and amortization		5,264			10,235			994			307			329			17,129
Stock-based compensation⁽³⁾		12,297			3,709			823			561			131			17,521
Acquisition-related costs⁽⁴⁾		—			—			—			—			8			8
Restructuring and reorganization⁽⁵⁾		—			—			—			—			6,106			6,106
Gain on extinguishment of convertible senior notes		—			—			—			—			(20,083	)		(20,083	)
Adjusted EBITDA	$	8,746		$	(8,680	)	$	(2,239	)	$	3,597		$	(8,349	)	$	(6,925	)
(1) Interest income includes $3.7 million of interest income related to originated mortgage loans for the three months ended June 30, 2023.
(2) Interest expense includes $4.0 million of interest expense related to our warehouse credit facilities for the three months ended June 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.
(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.

	Six Months Ended June 30, 2024
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Revenue	$	318,749		$	100,445		$	73,998		$	27,490		$	—		$	520,682
Cost of revenue		244,777			23,087			58,432			13,988			—			340,284
Gross profit		73,972			77,358			15,566			13,502			—			180,398
Operating expenses
Technology and development		57,427			25,929			1,356			1,797			2,135			88,644
Marketing		35,032			28,537			1,554			15			—			65,138
General and administrative		38,915			42,720			13,202			2,064			25,677			122,578
Restructuring and reorganization		—			—			—			—			2,223			2,223
Total operating expenses		131,374			97,186			16,112			3,876			30,035			278,583
(Loss) income from continuing operations		(57,402	)		(19,828	)		(546	)		9,626			(30,035	)		(98,185	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		(32	)		(35	)		4			424			3,170			3,531
Net (loss) income from continuing operations	$	(57,434	)	$	(19,863	)	$	(542	)	$	10,050		$	(26,865	)	$	(94,654	)

	Six Months Ended June 30, 2024
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Net (loss) income from continuing operations	$	(57,434	)	$	(19,863	)	$	(542	)	$	10,050		$	(26,865	)	$	(94,654	)
Interest income⁽¹⁾		(30	)		(122	)		(5,024	)		(424	)		(2,718	)		(8,318	)
Interest expense⁽²⁾		—			—			5,038			—			10,957			15,995
Income tax expense		—			98			—			—			289			387
Depreciation and amortization		6,300			14,811			1,884			440			420			23,855
Stock-based compensation⁽³⁾		22,913			6,463			752			1,100			4,412			35,640
Restructuring and reorganization⁽⁴⁾		—			—			—			—			2,223			2,223
Gain on extinguishment of convertible senior notes		—			—			—			—			(12,000	)		(12,000	)
Legal contingencies⁽⁵⁾		—			—			—			—			9,250			9,250
Adjusted EBITDA	$	(28,251	)	$	1,387		$	2,108		$	11,166		$	(14,032	)	$	(27,622	)
(1) Interest income includes $5.0 million of interest income related to originated mortgage loans for the six months ended June 30, 2024.
(2) Interest expense includes $5.0 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2024.
(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.
(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.

	Six Months Ended June 30, 2023
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Revenue⁽¹⁾	$	307,937		$	88,226		$	74,915		$	18,561		$	—		$	489,639
Cost of revenue		235,941			20,192			63,479			11,699			—			331,311
Gross profit		71,996			68,034			11,436			6,862			—			158,328
Operating expenses
Technology and development		56,939			32,268			1,377			2,342			1,878			94,804
Marketing		41,064			30,264			2,034			26			48			73,436
General and administrative		40,579			51,607			13,653			2,097			23,268			131,204
Restructuring and reorganization		—			—			—			—			7,159			7,159
Total operating expenses		138,582			114,139			17,064			4,465			32,353			306,603
(Loss) income from continuing operations		(66,586	)		(46,105	)		(5,628	)		2,397			(32,353	)		(148,275	)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net		—			73			(151	)		268			63,563			63,753
Net (loss) income from continuing operations	$	(66,586	)	$	(46,032	)	$	(5,779	)	$	2,665		$	31,210		$	(84,522	)
(1) Included in revenue is $1.2 million from providing services to our discontinued properties segment.

	Six Months Ended June 30, 2023
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Net (loss) income from continuing operations	$	(66,586	)	$	(46,032	)	$	(5,779	)	$	2,665		$	31,210		$	(84,522	)
Interest income⁽¹⁾		—			(157	)		(6,176	)		(268	)		(5,668	)		(12,269	)
Interest expense⁽²⁾		—			—			6,605			—			3,687			10,292
Income tax expense		—			86			151			—			406			643
Depreciation and amortization		9,696			20,387			1,982			523			1,432			34,020
Stock-based compensation⁽³⁾		21,890			7,325			2,081			1,122			3,930			36,348
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		—			—			—			—			(62,353	)		(62,353	)
Adjusted EBITDA	$	(35,000	)	$	(18,391	)	$	(1,136	)	$	4,042		$	(20,076	)	$	(70,561	)
(1) Interest income includes $6.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2023.
(2) Interest expense includes $6.6 million of interest expense related to our warehouse credit facilities for the six months ended June 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.
(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.

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

	Three months ending September 30, 2024
	Low		High
Net loss	(30	)	(22	)
Net interest expense	6		6
Depreciation and amortization	9		9
Stock-based compensation	18		18
Adjusted EBITDA	4		12
Note: Figures may not sum due to rounding.

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Redfin Reports Second Quarter 2024 Financial Results