10-Q 1 rdfn-20240630.htm 10-Q rdfn-20240630
0001382821--12-312024Q2falseP1YP10DP2Y287xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesrdfn:segmentxbrli:purerdfn:patentrdfn:tradingDayrdfn:businessDay00013828212024-01-012024-06-3000013828212024-04-012024-06-3000013828212024-08-0100013828212024-06-3000013828212023-12-3100013828212023-04-012023-06-3000013828212023-01-012023-06-3000013828212022-12-3100013828212023-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-12-310001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2022-12-310001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2024-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-06-300001382821us-gaap:PreferredStockMember2024-03-310001382821us-gaap:CommonStockMember2024-03-310001382821us-gaap:AdditionalPaidInCapitalMember2024-03-310001382821us-gaap:RetainedEarningsMember2024-03-310001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-3100013828212024-03-310001382821us-gaap:PreferredStockMember2024-04-012024-06-300001382821us-gaap:CommonStockMember2024-04-012024-06-300001382821us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001382821us-gaap:RetainedEarningsMember2024-04-012024-06-300001382821us-gaap:PreferredStockMember2024-06-300001382821us-gaap:CommonStockMember2024-06-300001382821us-gaap:AdditionalPaidInCapitalMember2024-06-300001382821us-gaap:RetainedEarningsMember2024-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001382821us-gaap:PreferredStockMember2023-03-310001382821us-gaap:CommonStockMember2023-03-310001382821us-gaap:AdditionalPaidInCapitalMember2023-03-310001382821us-gaap:RetainedEarningsMember2023-03-310001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-3100013828212023-03-310001382821us-gaap:PreferredStockMember2023-04-012023-06-300001382821us-gaap:CommonStockMember2023-04-012023-06-300001382821us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001382821us-gaap:RetainedEarningsMember2023-04-012023-06-300001382821us-gaap:PreferredStockMember2023-06-300001382821us-gaap:CommonStockMember2023-06-300001382821us-gaap:AdditionalPaidInCapitalMember2023-06-300001382821us-gaap:RetainedEarningsMember2023-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001382821us-gaap:PreferredStockMember2023-12-310001382821us-gaap:CommonStockMember2023-12-310001382821us-gaap:AdditionalPaidInCapitalMember2023-12-310001382821us-gaap:RetainedEarningsMember2023-12-310001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001382821us-gaap:PreferredStockMember2024-01-012024-06-300001382821us-gaap:CommonStockMember2024-01-012024-06-300001382821us-gaap:AdditionalPaidInCapitalMember2024-01-012024-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-06-300001382821us-gaap:RetainedEarningsMember2024-01-012024-06-300001382821us-gaap:PreferredStockMember2022-12-310001382821us-gaap:CommonStockMember2022-12-310001382821us-gaap:AdditionalPaidInCapitalMember2022-12-310001382821us-gaap:RetainedEarningsMember2022-12-310001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001382821us-gaap:PreferredStockMember2023-01-012023-06-300001382821us-gaap:CommonStockMember2023-01-012023-06-300001382821us-gaap:AdditionalPaidInCapitalMember2023-01-012023-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300001382821us-gaap:RetainedEarningsMember2023-01-012023-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-04-012023-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-01-012023-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2024-01-012024-06-300001382821us-gaap:EmployeeSeveranceMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-01-012023-06-300001382821us-gaap:EmployeeSeveranceMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-06-300001382821rdfn:AssetWriteOffsMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-01-012023-06-300001382821rdfn:AssetWriteOffsMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMemberus-gaap:OtherRestructuringMember2023-01-012023-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMemberus-gaap:OtherRestructuringMember2023-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMemberrdfn:AcceleratedAmortizationOfDebtIssuanceCostsMember2023-01-012023-06-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMemberrdfn:AcceleratedAmortizationOfDebtIssuanceCostsMember2023-06-300001382821us-gaap:OperatingSegmentsMemberrdfn:RealEstateSegmentMember2024-04-012024-06-300001382821us-gaap:OperatingSegmentsMemberrdfn:RentalsSegmentMember2024-04-012024-06-300001382821rdfn:MortgageSegmentsMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001382821us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2024-04-012024-06-300001382821us-gaap:IntersegmentEliminationMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001382821us-gaap:CorporateNonSegmentMember2024-04-012024-06-300001382821us-gaap:IntersegmentEliminationMember2024-04-012024-06-300001382821us-gaap:OperatingSegmentsMemberrdfn:RealEstateSegmentMember2023-04-012023-06-300001382821us-gaap:OperatingSegmentsMemberrdfn:RentalsSegmentMember2023-04-012023-06-300001382821rdfn:MortgageSegmentsMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001382821us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2023-04-012023-06-300001382821us-gaap:IntersegmentEliminationMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001382821us-gaap:CorporateNonSegmentMember2023-04-012023-06-300001382821us-gaap:IntersegmentEliminationMember2023-04-012023-06-300001382821us-gaap:OperatingSegmentsMemberrdfn:DiscontinuedPropertiesSegmentMember2023-04-012023-06-300001382821us-gaap:OperatingSegmentsMemberrdfn:RealEstateSegmentMember2024-01-012024-06-300001382821us-gaap:OperatingSegmentsMemberrdfn:RentalsSegmentMember2024-01-012024-06-300001382821rdfn:MortgageSegmentsMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001382821us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2024-01-012024-06-300001382821us-gaap:CorporateNonSegmentMember2024-01-012024-06-300001382821us-gaap:IntersegmentEliminationMember2024-01-012024-06-300001382821us-gaap:IntersegmentEliminationMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001382821us-gaap:OperatingSegmentsMemberrdfn:RealEstateSegmentMember2023-01-012023-06-300001382821us-gaap:OperatingSegmentsMemberrdfn:RentalsSegmentMember2023-01-012023-06-300001382821rdfn:MortgageSegmentsMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001382821us-gaap:OperatingSegmentsMemberus-gaap:CorporateMember2023-01-012023-06-300001382821us-gaap:IntersegmentEliminationMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001382821us-gaap:CorporateNonSegmentMember2023-01-012023-06-300001382821us-gaap:IntersegmentEliminationMember2023-01-012023-06-300001382821us-gaap:OperatingSegmentsMemberrdfn:DiscontinuedPropertiesSegmentMember2023-01-012023-06-300001382821us-gaap:InterestRateLockCommitmentsMembersrt:MinimumMember2024-01-012024-06-300001382821us-gaap:InterestRateLockCommitmentsMembersrt:MaximumMember2024-01-012024-06-300001382821us-gaap:ForwardContractsMember2024-06-300001382821us-gaap:ForwardContractsMember2023-12-310001382821us-gaap:InterestRateLockCommitmentsMember2024-06-300001382821us-gaap:InterestRateLockCommitmentsMember2023-12-310001382821us-gaap:ForwardContractsMember2024-04-012024-06-300001382821us-gaap:ForwardContractsMember2023-04-012023-06-300001382821us-gaap:ForwardContractsMember2024-01-012024-06-300001382821us-gaap:ForwardContractsMember2023-01-012023-06-300001382821us-gaap:InterestRateLockCommitmentsMember2024-04-012024-06-300001382821us-gaap:InterestRateLockCommitmentsMember2023-04-012023-06-300001382821us-gaap:InterestRateLockCommitmentsMember2024-01-012024-06-300001382821us-gaap:InterestRateLockCommitmentsMember2023-01-012023-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMember2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMember2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForwardContractsMember2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForwardContractsMember2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel3Member2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel1Member2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel2Member2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Member2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel1Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberrdfn:AgencyBondsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberrdfn:AgencyBondsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberrdfn:AgencyBondsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberrdfn:AgencyBondsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel1Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel2Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMemberus-gaap:FairValueInputsLevel3Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:ForwardContractsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Memberus-gaap:ForwardContractsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMemberus-gaap:FairValueInputsLevel3Member2023-12-310001382821srt:MinimumMemberrdfn:MeasurementInputPullThroughRateMemberus-gaap:InterestRateLockCommitmentsMemberrdfn:MarketingpricingMember2024-06-300001382821rdfn:MeasurementInputPullThroughRateMemberus-gaap:InterestRateLockCommitmentsMemberrdfn:MarketingpricingMembersrt:MaximumMember2024-06-300001382821rdfn:MeasurementInputPullThroughRateMemberus-gaap:InterestRateLockCommitmentsMemberrdfn:MarketingpricingMember2024-06-300001382821srt:MinimumMemberrdfn:MeasurementInputPullThroughRateMemberus-gaap:InterestRateLockCommitmentsMemberrdfn:MarketingpricingMember2023-12-310001382821rdfn:MeasurementInputPullThroughRateMemberus-gaap:InterestRateLockCommitmentsMemberrdfn:MarketingpricingMembersrt:MaximumMember2023-12-310001382821rdfn:MeasurementInputPullThroughRateMemberus-gaap:InterestRateLockCommitmentsMemberrdfn:MarketingpricingMember2023-12-310001382821srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2024-06-300001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMembersrt:MaximumMember2024-06-300001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2024-06-300001382821srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2023-12-310001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMembersrt:MaximumMember2023-12-310001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMember2023-12-310001382821srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMember2024-06-300001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMembersrt:MaximumMember2024-06-300001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMember2024-06-300001382821srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMember2023-12-310001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMembersrt:MaximumMember2023-12-310001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMember2023-12-310001382821srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMember2024-06-300001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2024-06-300001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMember2024-06-300001382821srt:MinimumMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMember2023-12-310001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMembersrt:MaximumMember2023-12-310001382821us-gaap:ValuationTechniqueDiscountedCashFlowMemberrdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMember2023-12-3100013828212024-04-0100013828212023-04-010001382821rdfn:MortgageServicingRightsMember2024-04-010001382821rdfn:MortgageServicingRightsMember2023-04-010001382821rdfn:MortgageServicingRightsMember2023-12-310001382821rdfn:MortgageServicingRightsMember2022-12-310001382821rdfn:MortgageServicingRightsMember2024-04-012024-06-300001382821rdfn:MortgageServicingRightsMember2023-04-012023-06-300001382821rdfn:MortgageServicingRightsMember2024-01-012024-06-300001382821rdfn:MortgageServicingRightsMember2023-01-012023-06-300001382821rdfn:MortgageServicingRightsMember2024-06-300001382821rdfn:MortgageServicingRightsMember2023-06-300001382821rdfn:MortgageServicingRightsMember2024-01-012024-03-310001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2024-06-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2023-12-310001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2024-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashMember2024-06-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CashMember2023-12-310001382821us-gaap:LeaseholdImprovementsMember2024-06-300001382821us-gaap:LeaseholdImprovementsMember2023-12-310001382821srt:MinimumMemberus-gaap:SoftwareDevelopmentMember2024-06-300001382821us-gaap:SoftwareDevelopmentMembersrt:MaximumMember2024-06-300001382821us-gaap:SoftwareDevelopmentMember2024-06-300001382821us-gaap:SoftwareDevelopmentMember2023-12-310001382821srt:MinimumMemberus-gaap:OfficeEquipmentMember2024-06-300001382821srt:MaximumMemberus-gaap:OfficeEquipmentMember2024-06-300001382821us-gaap:OfficeEquipmentMember2024-06-300001382821us-gaap:OfficeEquipmentMember2023-12-310001382821rdfn:SoftwareMember2024-06-300001382821rdfn:SoftwareMember2023-12-310001382821us-gaap:FurnitureAndFixturesMember2024-06-300001382821us-gaap:FurnitureAndFixturesMember2023-12-310001382821rdfn:PropertyPlantAndEquipmentGrossExcludingConstructionInProgressMember2024-06-300001382821rdfn:PropertyPlantAndEquipmentGrossExcludingConstructionInProgressMember2023-12-310001382821us-gaap:ConstructionInProgressMember2024-06-300001382821us-gaap:ConstructionInProgressMember2023-12-310001382821srt:MinimumMember2024-06-300001382821srt:MaximumMember2024-06-300001382821us-gaap:VehiclesMember2024-06-300001382821us-gaap:CostOfSalesMember2024-04-012024-06-300001382821us-gaap:CostOfSalesMember2023-04-012023-06-300001382821us-gaap:CostOfSalesMember2024-01-012024-06-300001382821us-gaap:CostOfSalesMember2023-01-012023-06-300001382821us-gaap:OperatingExpenseMember2024-04-012024-06-300001382821us-gaap:OperatingExpenseMember2023-04-012023-06-300001382821us-gaap:OperatingExpenseMember2024-01-012024-06-300001382821us-gaap:OperatingExpenseMember2023-01-012023-06-300001382821srt:ScenarioForecastMember2025-01-012025-03-3100013828212020-05-112020-05-1100013828212022-05-232022-05-230001382821us-gaap:SubsequentEventMember2024-07-242024-07-240001382821rdfn:OtherCommitmentsMember2024-06-300001382821us-gaap:TradeNamesMember2024-06-300001382821us-gaap:TradeNamesMember2023-12-310001382821srt:MinimumMemberus-gaap:DevelopedTechnologyRightsMember2024-06-300001382821us-gaap:DevelopedTechnologyRightsMember2024-06-300001382821us-gaap:DevelopedTechnologyRightsMember2023-12-310001382821us-gaap:CustomerRelationshipsMember2024-06-300001382821us-gaap:CustomerRelationshipsMember2023-12-310001382821rdfn:RealEstateServicesSegmentMember2024-06-300001382821rdfn:RealEstateServicesSegmentMember2023-12-310001382821rdfn:RentalsSegmentMember2024-06-300001382821rdfn:RentalsSegmentMember2023-12-310001382821rdfn:MortgageSegmentsMember2024-06-300001382821rdfn:MortgageSegmentsMember2023-12-310001382821us-gaap:CommonStockMember2020-04-012020-04-010001382821us-gaap:CommonStockMember2020-04-010001382821us-gaap:PreferredStockMember2020-04-012020-04-010001382821us-gaap:PreferredStockMember2020-04-0100013828212020-04-012020-04-0100013828212020-04-010001382821us-gaap:EmployeeStockMemberrdfn:A2004EquityIncentivePlanMember2024-06-300001382821rdfn:A2004EquityIncentivePlanMember2024-01-012024-06-300001382821rdfn:A2017EquityIncentivePlanMember2017-07-260001382821rdfn:A2017EquityIncentivePlanMember2024-01-012024-06-300001382821rdfn:A2017EquityIncentivePlanMembersrt:MinimumMember2024-01-012024-06-300001382821rdfn:A2017EquityIncentivePlanMembersrt:MaximumMember2024-01-012024-06-300001382821rdfn:A2017EquityIncentivePlanMember2024-06-300001382821rdfn:A2017EquityIncentivePlanMember2023-12-310001382821us-gaap:EmployeeStockMemberrdfn:A2017EmployeeStockPurchasePlanMember2017-07-270001382821us-gaap:EmployeeStockMemberrdfn:A2017EmployeeStockPurchasePlanMember2017-07-272017-07-270001382821us-gaap:EmployeeStockMemberrdfn:A2017EmployeeStockPurchasePlanMember2024-01-012024-06-300001382821rdfn:A2017EmployeeStockPurchasePlanMember2024-06-300001382821rdfn:A2017EmployeeStockPurchasePlanMember2023-12-3100013828212023-01-012023-12-310001382821us-gaap:RestrictedStockUnitsRSUMember2023-12-310001382821us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001382821us-gaap:RestrictedStockUnitsRSUMember2024-06-300001382821us-gaap:PerformanceSharesMember2024-06-300001382821us-gaap:PerformanceSharesMember2024-01-012024-06-300001382821srt:MinimumMemberus-gaap:PerformanceSharesMember2024-01-012024-06-300001382821srt:MaximumMemberus-gaap:PerformanceSharesMember2024-01-012024-06-300001382821rdfn:CurrentPeriodMemberus-gaap:PerformanceSharesMember2024-04-012024-06-300001382821rdfn:CurrentPeriodMemberus-gaap:PerformanceSharesMember2023-04-012023-06-300001382821rdfn:CurrentPeriodMemberus-gaap:PerformanceSharesMember2024-01-012024-06-300001382821rdfn:CurrentPeriodMemberus-gaap:PerformanceSharesMember2023-01-012023-06-300001382821rdfn:PriorPeriodsMemberus-gaap:PerformanceSharesMember2024-04-012024-06-300001382821rdfn:PriorPeriodsMemberus-gaap:PerformanceSharesMember2023-04-012023-06-300001382821rdfn:PriorPeriodsMemberus-gaap:PerformanceSharesMember2024-01-012024-06-300001382821rdfn:PriorPeriodsMemberus-gaap:PerformanceSharesMember2023-01-012023-06-300001382821us-gaap:PerformanceSharesMember2024-04-012024-06-300001382821us-gaap:PerformanceSharesMember2023-04-012023-06-300001382821us-gaap:PerformanceSharesMember2023-01-012023-06-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2024-04-012024-06-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2023-04-012023-06-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-06-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-06-300001382821us-gaap:SellingAndMarketingExpenseMember2024-04-012024-06-300001382821us-gaap:SellingAndMarketingExpenseMember2023-04-012023-06-300001382821us-gaap:SellingAndMarketingExpenseMember2024-01-012024-06-300001382821us-gaap:SellingAndMarketingExpenseMember2023-01-012023-06-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2024-04-012024-06-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2023-04-012023-06-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2024-01-012024-06-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-06-300001382821us-gaap:SegmentContinuingOperationsMember2024-04-012024-06-300001382821us-gaap:SegmentContinuingOperationsMember2023-04-012023-06-300001382821us-gaap:SegmentContinuingOperationsMember2024-01-012024-06-300001382821us-gaap:SegmentContinuingOperationsMember2023-01-012023-06-300001382821us-gaap:SegmentDiscontinuedOperationsMember2024-04-012024-06-300001382821us-gaap:SegmentDiscontinuedOperationsMember2023-04-012023-06-300001382821us-gaap:SegmentDiscontinuedOperationsMember2024-01-012024-06-300001382821us-gaap:SegmentDiscontinuedOperationsMember2023-01-012023-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2024-04-012024-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2023-04-012023-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2024-01-012024-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Member2023-01-012023-06-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2024-04-012024-06-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2023-04-012023-06-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2024-01-012024-06-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2023-01-012023-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2024-04-012024-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2023-04-012023-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2024-01-012024-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2023-01-012023-06-300001382821us-gaap:ConvertiblePreferredStockMember2024-04-012024-06-300001382821us-gaap:ConvertiblePreferredStockMember2023-04-012023-06-300001382821us-gaap:ConvertiblePreferredStockMember2024-01-012024-06-300001382821us-gaap:ConvertiblePreferredStockMember2023-01-012023-06-300001382821us-gaap:EmployeeStockOptionMember2024-04-012024-06-300001382821us-gaap:EmployeeStockOptionMember2023-04-012023-06-300001382821us-gaap:EmployeeStockOptionMember2024-01-012024-06-300001382821us-gaap:EmployeeStockOptionMember2023-01-012023-06-300001382821us-gaap:RestrictedStockUnitsRSUMember2024-04-012024-06-300001382821us-gaap:RestrictedStockUnitsRSUMember2023-04-012023-06-300001382821us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-300001382821us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-06-300001382821rdfn:NonEmployeeDirectorsMemberus-gaap:RestrictedStockUnitsRSUMember2024-01-012024-06-3000013828212019-06-300001382821us-gaap:DomesticCountryMember2023-12-310001382821us-gaap:StateAndLocalJurisdictionMember2023-12-310001382821us-gaap:ForeignCountryMember2023-12-310001382821rdfn:RentPathHoldingsMemberus-gaap:DomesticCountryMember2023-01-012023-12-310001382821rdfn:RentPathHoldingsMemberus-gaap:DomesticCountryMember2022-01-012022-12-310001382821rdfn:RentPathHoldingsMemberus-gaap:DomesticCountryMember2023-12-310001382821rdfn:RentPathHoldingsMemberus-gaap:DomesticCountryMember2022-12-310001382821rdfn:CityNationalBankMemberus-gaap:WarehouseAgreementBorrowingsMember2024-06-300001382821rdfn:OriginBankMemberus-gaap:WarehouseAgreementBorrowingsMember2024-06-300001382821rdfn:MTBankMemberus-gaap:WarehouseAgreementBorrowingsMember2024-06-300001382821us-gaap:WarehouseAgreementBorrowingsMemberrdfn:ProsperityBankMember2024-06-300001382821rdfn:RepublicBankTrustCompanyMemberus-gaap:WarehouseAgreementBorrowingsMember2024-06-300001382821rdfn:TermLoanMemberus-gaap:SecuredDebtMember2024-06-300001382821us-gaap:SeniorNotesMemberrdfn:A0ConvertibleSeniorNotesDue2025Member2024-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2024-06-300001382821us-gaap:WarehouseAgreementBorrowingsMember2024-06-300001382821rdfn:CityNationalBankMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821rdfn:OriginBankMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821rdfn:MTBankMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821us-gaap:WarehouseAgreementBorrowingsMemberrdfn:ProsperityBankMember2023-12-310001382821rdfn:RepublicBankTrustCompanyMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821rdfn:WellsFargoBankNAMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821us-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821rdfn:FirstLienTermLoanFacilityMemberus-gaap:LineOfCreditMember2023-10-200001382821rdfn:FirstLienTermLoanFacilityMemberus-gaap:LineOfCreditMember2024-01-012024-03-310001382821rdfn:FirstLienTermLoanFacilityMemberus-gaap:LineOfCreditMember2023-10-202023-10-200001382821rdfn:FirstLienTermLoanFacilityMemberus-gaap:RevolvingCreditFacilityMemberrdfn:Period1Memberus-gaap:LineOfCreditMember2023-10-202023-10-200001382821rdfn:FirstLienTermLoanFacilityMemberus-gaap:RevolvingCreditFacilityMemberrdfn:Period3Memberus-gaap:LineOfCreditMember2023-10-202023-10-200001382821us-gaap:LineOfCreditMemberrdfn:A0ConvertibleSeniorNotesDue2025Member2023-10-200001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:LineOfCreditMember2023-10-200001382821us-gaap:LineOfCreditMember2023-10-202023-10-200001382821rdfn:TermLoanMemberus-gaap:SecuredDebtMember2023-12-310001382821us-gaap:SeniorNotesMemberrdfn:A0ConvertibleSeniorNotesDue2025Member2024-01-012024-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2024-01-012024-06-300001382821us-gaap:SeniorNotesMemberrdfn:A0ConvertibleSeniorNotesDue2025Member2020-10-200001382821us-gaap:SeniorNotesMemberrdfn:A0ConvertibleSeniorNotesDue2025Member2024-04-012024-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2021-03-250001382821us-gaap:SeniorNotesMemberrdfn:A0ConvertibleSeniorNotesDue2025Member2023-12-310001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2023-12-310001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Memberus-gaap:SeniorNotesMember2024-04-012024-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Memberus-gaap:SeniorNotesMember2023-04-012023-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Memberus-gaap:SeniorNotesMember2024-01-012024-06-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Memberus-gaap:SeniorNotesMember2023-01-012023-06-300001382821us-gaap:SeniorNotesMemberrdfn:A0ConvertibleSeniorNotesDue2025Member2023-04-012023-06-300001382821us-gaap:SeniorNotesMemberrdfn:A0ConvertibleSeniorNotesDue2025Member2023-01-012023-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2024-04-012024-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2023-04-012023-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2023-01-012023-06-300001382821us-gaap:SeniorNotesMember2024-04-012024-06-300001382821us-gaap:SeniorNotesMember2023-04-012023-06-300001382821us-gaap:SeniorNotesMember2024-01-012024-06-300001382821us-gaap:SeniorNotesMember2023-01-012023-06-300001382821rdfn:ConvertibleSeniorNotesMemberus-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2024-01-012024-06-300001382821rdfn:ConvertibleSeniorNotesMemberus-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2024-01-012024-06-300001382821us-gaap:DebtInstrumentRedemptionPeriodTwoMember2024-01-012024-06-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:CallOptionMembersrt:MinimumMemberrdfn:CappedCallTransactionMemberus-gaap:SeniorNotesMember2021-03-252021-04-050001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:CallOptionMemberrdfn:CappedCallTransactionMemberus-gaap:SeniorNotesMembersrt:MaximumMember2021-03-252021-04-050001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2021-03-252021-04-050001382821rdfn:BridgetFreyMember2024-01-012024-06-300001382821rdfn:BridgetFreyMember2024-04-012024-06-300001382821rdfn:BridgetFreyMember2024-06-30

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___ to ___
Commission file number 001-38160
Redfin Corporation
(Exact name of registrant as specified in its charter)

Delaware
74-3064240
(State or other jurisdiction of incorporation or organization)
(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)

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 (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes
 No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes
 No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
Accelerated filer
Non-accelerated filer  
Smaller reporting company
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.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 Yes
 No

The registrant had 121,774,260 shares of common stock outstanding as of August 1, 2024.



Redfin Corporation

Quarterly Report on Form 10-Q
For the Quarter Ended June 30, 2024

Table of Contents



As used in this quarterly report, the terms "Redfin," "we," "us," and "our" refer to Redfin Corporation and its subsidiaries taken as a whole, unless otherwise noted or unless the context indicates otherwise. However, when referencing (i) the 2023 notes, the 2025 notes, and the 2027 notes, the terms “we,” “us,” and “our” refer only to Redfin Corporation and not to Redfin Corporation and its subsidiaries taken as a whole, (ii) the Apollo term loan, the terms “we,” “us,” and “our” refer only to Redfin Corporation and its subsidiaries except for Bay Equity LLC, taken as a whole, and (ii) each warehouse credit facility, the terms "we," "us," and "our" refer to Bay Equity LLC.

Note Regarding Forward-Looking Statements

This quarterly report contains forward-looking statements. All statements contained in this report other than statements of historical fact, including statements regarding our future operating results and financial position, our business strategy and plans, our market growth and trends, and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” "hope,” “potentially,” “preliminary,” “likely,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including those described under Item 1A of our annual report for the year ended December 31, 2023, as supplemented by Part II, Item 1A of this report. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the effect of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, the future events and trends discussed in this report may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Accordingly, you should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, performance, or events and circumstances reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this report or to conform these statements to actual results or revised expectations.

Note Regarding Industry and Market Data

This quarterly report contains information using industry publications that generally state that the information contained therein has been obtained from sources believed to be reliable, but such information may not be accurate or complete. While we are not aware of any misstatements regarding the information from these industry publications, we have not independently verified any of the data from third-party sources nor have we ascertained the underlying economic assumptions relied on therein.
i

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Redfin Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share amounts, unaudited)
June 30, 2024December 31, 2023
Assets
Current assets
Cash and cash equivalents$201,812 $149,759 
Restricted cash756 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 sale208,460 159,587 
Prepaid expenses28,002 33,296 
Other current assets9,872 7,472 
Total current assets524,424 445,045 
Property and equipment, net45,303 46,431 
Right-of-use assets, net28,389 31,763 
Mortgage servicing rights, at fair value2,695 32,171 
Long-term investments 3,149 
Goodwill461,349 461,349 
Intangible assets, net108,832 123,284 
Other assets, noncurrent10,492 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 liabilities125,082 90,360 
Warehouse credit facilities202,559 151,964 
Lease liabilities14,123 15,609 
Total current liabilities353,376 268,440 
Lease liabilities, noncurrent25,193 29,084 
Convertible senior notes, net, noncurrent571,077 688,737 
Term loan243,961 124,416 
Deferred tax liabilities642 264 
Total liabilities1,194,249 1,110,941 
Commitments and contingencies (Note 7)
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 capital865,263 826,146 
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 

See Notes to the consolidated financial statements.
1

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,
2024202320242023
Revenue$295,203 $275,556 $520,682 $489,639 
Cost of revenue185,617 175,366 340,284 331,311 
Gross profit109,586 100,190 180,398 158,328 
Operating expenses
Technology and development42,215 47,141 88,644 94,804 
Marketing40,260 33,033 65,138 73,436 
General and administrative54,705 61,765 122,578 131,204 
Restructuring and reorganization1,334 6,106 2,223 7,159 
Total operating expenses138,514 148,045 278,583 306,603 
Loss from continuing operations(28,928)(47,855)(98,185)(148,275)
Interest income1,461 2,704 3,293 6,110 
Interest expense(6,086)(1,766)(10,960)(3,688)
Income tax expense(559)(233)(387)(643)
Gain on extinguishment of convertible senior notes6,314 20,083 12,000 62,353 
Other expense, net(82)(145)(415)(379)
Net loss from continuing operations(27,880)(27,212)(94,654)(84,522)
Net loss from discontinued operations (146) (3,634)
Net loss$(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)$(0.80)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted120,393,897 111,678,417 119,379,082 110,895,358 
Net loss$(27,880)$(27,358)$(94,654)$(88,156)
Other comprehensive income (loss)
Foreign currency translation adjustments1  (2)(58)
Unrealized (loss) gain on available-for-sale debt securities
 (17)40 407 
Comprehensive loss$(27,879)$(27,375)$(94,616)$(87,807)

See Notes to the consolidated financial statements.

2

Redfin Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Six Months Ended June 30,
20242023
Operating Activities
Net loss
$(94,654)$(88,156)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization23,855 34,146 
Stock-based compensation35,640 36,582 
Amortization of debt discount and issuance costs1,372 2,029 
Non-cash lease expense6,164 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)
Other380 (1,794)
Change in assets and liabilities:
Accounts receivable, net(23,928)(14,069)
Inventory 114,232 
Prepaid expenses and other assets2,100 8,868 
Accounts payable1,135 2,812 
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent35,360 (4,522)
Lease liabilities(8,116)(10,790)
Origination of mortgage servicing rights(84)(579)
Proceeds from sale of mortgage servicing rights30,503 738 
Origination of loans held for sale(1,989,240)(1,922,690)
Proceeds from sale of loans originated as held for sale1,940,725 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 investments39,225 65,099 
Maturities of investments6,395 59,383 
Net cash provided by investing activities38,825 41,403 
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans2,158 5,665 
Tax payments related to net share settlements on restricted stock units(940)(11,096)
Borrowings from warehouse credit facilities1,987,822 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 loan125,000  
Net cash provided by (used in) financing activities66,673 (151,212)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(2)(58)
Net change in cash, cash equivalents, and restricted cash51,568 (120,982)
Cash, cash equivalents, and restricted cash:
Beginning of period(1)
151,000 242,246 
End of period(2)
$202,568 $121,264 
Supplemental disclosure of cash flow information
Cash paid for interest
$13,417 $8,370 
Non-cash transactions
Stock-based compensation capitalized in property and equipment2,263 2,204 
Property and equipment additions in accounts payable and accrued liabilities23 64 

(1) Cash, cash equivalents, and restricted cash consisted of the following (beginning of period):
As of December 31,
20232022
Continuing operations
Cash and cash equivalents$149,759 $232,200 
Restricted cash1,241 2,406 
Total 151,000 234,606 
Discontinued operations
Cash and cash equivalents 7,640 
Restricted cash  
Total 7,640 
Total cash, cash equivalents, and restricted cash$151,000 $242,246 

(2) Cash, cash equivalents, and restricted cash consisted of the following (end of period):
As of June 30,
20242023
Continuing operations
Cash and cash equivalents$201,812 $118,776 
Restricted cash756 2,377 
Total202,568 121,153 
Discontinued operations
Cash and cash equivalents 111 
Restricted cash  
Total 111 
Total cash, cash equivalents, and restricted cash$202,568 $121,264 

See Notes to the consolidated financial statements.
3

Redfin Corporation and Subsidiaries
Consolidated Statements of Changes in Mezzanine Equity and Stockholders’ (Deficit) Equity
(in thousands, except share amounts, unaudited)

Series A Convertible Preferred StockCommon StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive Loss
Total Stockholders'
(Deficit) Equity
SharesAmountSharesAmount
Balance, March 31, 202440,000 $39,970 119,440,241 $119 $844,383 $(890,107)$(145)$(45,750)
Issuance of convertible preferred stock, net— 11 — — — — — — 
Issuance of common stock as dividend on convertible preferred stock— — 30,640 — — — — — 
Issuance of common stock pursuant to employee stock purchase program— — 386,301  1,974 — — 1,974 
Issuance of common stock pursuant to exercise of stock options— — 14,215 — 91 — — 91 
Issuance of common stock pursuant to settlement of restricted stock units— — 1,930,743 3 (3)— —  
Common stock surrendered for employees' tax liability upon settlement of restricted stock units— — (58,520)— (411)— — (411)
Stock-based compensation— — — — 19,229 — — 19,229 
Other comprehensive income
— — — — — — 1 1 
Net loss— — — — — (27,880)— (27,880)
Balance, June 30, 2024
40,000 $39,981 121,743,620 $122 $865,263 $(917,987)$(144)$(52,746)
Balance, March 31, 202340,000 $39,925 110,526,884 $110 $775,094 $(754,105)$(435)$20,664 
Issuance of convertible preferred stock, net— 11 — — — — — — 
Issuance of common stock as dividend on convertible preferred stock— — 30,640 — — — — — 
Issuance of common stock pursuant to employee stock purchase program— — 1,150,703 1 4,214 — — 4,215 
Issuance of common stock pursuant to exercise of stock options— — 545,127 2 1,310 — — 1,312 
Issuance of common stock pursuant to settlement of restricted stock units— — 2,412,813 2 (2)— —  
Common stock surrendered for employees' tax liability upon settlement of restricted stock units— — (731,494)(1)(7,936)— — (7,937)
Stock-based compensation— — — — 18,622 — — 18,622 
Other comprehensive loss
— — — — — — (17)(17)
Net loss— — — — — (27,358)— (27,358)
Balance, June 30, 202340,000 $39,936 113,934,673 $114 $791,302 $(781,463)$(452)$9,501 
4


Series A Convertible Preferred StockCommon StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive Loss
Total Stockholders'
(Deficit) Equity
SharesAmountSharesAmount
Balance, December 31, 202340,000 $39,959 117,372,171 $117 $826,146 $(823,333)$(182)$2,748 
Issuance of convertible preferred stock, net— 22 — — — — — — 
Issuance of common stock as dividend on convertible preferred stock— — 61,280 — — — — — 
Issuance of common stock pursuant to employee stock purchase program— — 386,301  1,974 — — 1,974 
Issuance of common stock pursuant to exercise of stock options— — 29,548 — 185 — — 185 
Issuance of common stock pursuant to settlement of restricted stock units— — 4,030,126 5 (5)— —  
Common stock surrendered for employees' tax liability upon settlement of restricted stock units— — (135,806)— (940)— — (940)
Stock-based compensation— — — — 37,903 — — 37,903 
Other comprehensive income— — — — — — 38 38 
Net loss— — — — — (94,654)— (94,654)
Balance, June 30, 202440,000 $39,981 121,743,620 $122 $865,263 $(917,987)$(144)$(52,746)
Balance, December 31, 202240,000 $39,914 109,696,178 $110 $757,951 $(693,307)$(801)$63,953 
Issuance of convertible preferred stock, net— 22 — — — — — — 
Issuance of common stock as dividend on convertible preferred stock— — 61,280 — — — — — 
Issuance of common stock pursuant to employee stock purchase program— — 1,150,703 1 4,214 — — 4,215 
Issuance of common stock pursuant to exercise of stock options— — 563,164 — 1,450 — — 1,450 
Issuance of common stock pursuant to settlement of restricted stock units— — 3,568,639 4 (4)— —  
Common stock surrendered for employees' tax liability upon settlement of restricted stock units— — (1,105,291)(1)(11,095)— — (11,096)
Stock-based compensation— — — — 38,786 — — 38,786 
Other comprehensive income— — — — — — 349 349 
Net loss— — — — — (88,156)— (88,156)
Balance, June 30, 202340,000 $39,936 113,934,673 $114 $791,302 $(781,463)$(452)$9,501 

See Notes to the consolidated financial statements.
5

Index to Notes to Consolidated Financial Statements

6

Redfin Corporation and Subsidiaries
Notes to Consolidated Financial Statements
(in thousands, except share and per share amounts, unaudited)

Note 1: Summary of Accounting Policies

Basis of Presentation—The consolidated financial statements and accompanying notes have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”).

The financial information as of December 31, 2023 that is included in this quarterly report is derived from the audited consolidated financial statements and notes for the year ended December 31, 2023 included in Item 8 in our annual report for the year ended December 31, 2023. Such financial information should be read in conjunction with the notes and management’s discussion and analysis of the consolidated financial statements included in our annual report.

The unaudited consolidated interim financial statements, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2024, our statements of comprehensive loss, and statements of changes in mezzanine equity and stockholders’ (deficit) equity for the three and six months ended June 30, 2024 and 2023, as well as our statements of cash flows for the six months ended June 30, 2024 and 2023. The results for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the year ending December 31, 2024 or for any interim period or for any other future year.

Principles of Consolidation—The unaudited consolidated interim financial statements include the accounts of Redfin Corporation and our wholly owned subsidiaries. Intercompany transactions and balances have been eliminated.

Use of Estimates—The preparation of consolidated financial statements, in conformity with GAAP, requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and results of operations during the respective periods. Our estimates include, but are not limited to, valuation of deferred income taxes, stock-based compensation, capitalization of website and software development costs, the incremental borrowing rate for the determination of the present value of lease payments, recoverability of intangible assets with finite lives, fair value of our mortgage loans held for sale (“LHFS”) and mortgage servicing rights, estimated useful life of intangible assets, fair value of reporting units for purposes of allocating and evaluating goodwill for impairment, and current expected credit losses on certain financial assets. The amounts ultimately realized from the affected assets or ultimately recognized as liabilities will depend on, among other factors, general business conditions and could differ materially in the near term from the carrying amounts reflected in the consolidated financial statements.

Recently Adopted Accounting Pronouncements—In September 2023, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance under ASU 2023-07, Segment Reporting - Improvements to Reportable Segment Disclosures. The ASU improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the impact of this standard on our segment disclosures.

Recently Issued Accounting Pronouncements—In December 2023, the FASB issued authoritative guidance under ASU 2023-09, Income Taxes - Improvements to Income Tax Disclosures. The ASU enhances annual income tax disclosures to address investor requests for more information about the tax risks and opportunities present in an entity’s worldwide operations. The two primary enhancements disaggregate existing income tax disclosures related to the effective tax rate reconciliation and income taxes paid. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, with early adoption permitted. We are currently evaluating the potential impact of the guidance on our financial statement disclosures.

7

Note 2: Discontinued Operations

In November 2022, our management and board of directors made the decision to wind down RedfinNow. The financial results of RedfinNow have historically been included in our properties segment. Winding-down RedfinNow was a strategic decision we made in order to focus our resources on our core businesses in the face of the rising cost of capital. The wind-down of our properties segment was complete as of June 30, 2023, at which time it met the criteria for discontinued operations in our consolidated financial statements.

As of June 30, 2024 and December 31, 2023 there were no major classes of assets and liabilities of our discontinued operations remaining.

The major classes of line items of the discontinued operations included in our consolidated statement of comprehensive loss were as follows for the three and six months ended June 30, 2023:
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
Revenue$10,998 $122,576 
Cost of revenue
10,913 124,422 
Gross profit
85 (1,846)
Operating expenses
Technology and development
23 552 
Marketing
18 523 
General and administrative
115 638 
Restructuring and reorganization75 75 
Total operating expenses
231 1,788 
Loss from discontinued operations
(146)(3,634)
Interest income, interest expense, income tax expense, and other expense, net
  
Net loss from discontinued operations$(146)$(3,634)
Net loss from discontinued operations per share—basic and diluted$0.00 $(0.03)

Significant non-cash items and capital expenditures of the discontinued operations were as follows for the six months ended June 30, 2023:
Stock-based compensation$234 
Depreciation and amortization89 

Charges specifically relating to the wind-down of our properties segment were as follows:
Cost typeFinancial statement line item
Six Months Ended June 30, 2023
Cumulative amount recognized as of June 30, 2023
Employee termination costsRestructuring and reorganization$539 $8,587 
Asset write-offsRestructuring and reorganization 493 
OtherRestructuring and reorganization(465)(890)
Acceleration of debt issuance costsInterest expense 481 
Total$74 $8,671 

8

Note 3: Segment Reporting and Revenue

In its operation of our business, our management, including our chief operating decision maker ("CODM"), who is also our chief executive officer, evaluates the performance of our operating segments based on revenue, gross profit, operating income, and net income. We do not analyze discrete segment balance sheet information related to long-term assets, substantially all of which are located in the United States. We have five operating segments and three reportable segments, real estate services, rentals, and mortgage.

We generate revenue primarily from commissions and fees charged on each real estate services transaction closed by our lead agents or partner agents, from subscription-based product offerings for our rentals business, and from the origination, sales, and servicing of mortgages. Our key revenue components are brokerage revenue, partner revenue, rentals revenue, mortgage revenue, and other revenue.

Information on each of our reportable and other segments and reconciliation to net (loss) income from continuing operations is presented in the tables below. We have assigned certain previously reported expenses to each segment to conform to the way we internally manage and monitor our business. We allocated indirect costs to each segment based on a reasonable allocation methodology, when such costs are significant to the performance measures of the segments.
Three Months Ended June 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue
$187,569 $50,927 $40,179 $16,528 $ $295,203 
Cost of revenue133,863 11,630 32,528 7,596  185,617 
Gross profit53,706 39,297 7,651 8,932  109,586 
Operating expenses
Technology and development28,920 10,417 700 965 1,213 42,215 
Marketing23,855 15,749 648 8  40,260 
General and administrative19,140 20,242 6,519 910 7,894 54,705 
Restructuring and reorganization    1,334 1,334 
Total operating expenses71,915 46,408 7,867 1,883 10,441 138,514 
(Loss) income from continuing operations(18,209)(7,111)(216)7,049 (10,441)(28,928)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net14 (42)1 180 895 1,048 
Net (loss) income from continuing operations$(18,195)$(7,153)$(215)$7,229 $(9,546)$(27,880)
9

Three Months Ended June 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue(1)
$180,641 $45,356 $38,426 $11,133 $ $275,556 
Cost of revenue124,447 10,427 34,266 6,226  175,366 
Gross profit56,194 34,929 4,160 4,907  100,190 
Operating expenses
Technology and development28,044 16,304 734 1,118 941 47,141 
Marketing16,004 15,938 1,054 16 21 33,033 
General and administrative20,961 25,305 6,724 1,044 7,731 61,765 
Restructuring and reorganization    6,106 6,106 
Total operating expenses65,009 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 $95 from providing services to our discontinued properties segment.
Six Months Ended June 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue
$318,749 $100,445 $73,998 $27,490 $ $520,682 
Cost of revenue244,777 23,087 58,432 13,988  340,284 
Gross profit73,972 77,358 15,566 13,502  180,398 
Operating expenses
Technology and development57,427 25,929 1,356 1,797 2,135 88,644 
Marketing35,032 28,537 1,554 15  65,138 
General and administrative38,915 42,720 13,202 2,064 25,677 122,578 
Restructuring and reorganization    2,223 2,223 
Total operating expenses131,374 97,186 16,112 3,876 30,035 278,583 
(Loss) income from continuing operations(57,402)(19,828)(546)9,626 (30,035)(98,185)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net(32)(35)4 424 3,170 3,531 
Net (loss) income from continuing operations$(57,434)$(19,863)$(542)$10,050 $(26,865)$(94,654)
10

Six Months Ended June 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue(1)
$307,937 $88,226 $74,915 $18,561 $ $489,639 
Cost of revenue235,941 20,192 63,479 11,699  331,311 
Gross profit71,996 68,034 11,436 6,862  158,328 
Operating expenses
Technology and development56,939 32,268 1,377 2,342 1,878 94,804 
Marketing41,064 30,264 2,034 26 48 73,436 
General and administrative40,579 51,607 13,653 2,097 23,268 131,204 
Restructuring and reorganization    7,159 7,159 
Total operating expenses138,582 114,139 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 $1,244 from providing services to our discontinued properties segment.

Note 4: Financial Instruments

Derivatives

Our primary market exposure is to interest rate risk, specifically U.S. treasury and mortgage interest rates, due to their impact on mortgage-related assets and commitments. We use forward sales commitments on whole loans and mortgage-backed securities to manage and reduce this risk. We do not have any derivative instruments designated as hedging instruments.

Forward Sales Commitments—We are exposed to interest rate and price risk on loans held for sale from the funding date until the date the loan is sold. Forward sales commitments on whole loans and mortgage-backed securities are used to fix the forward sales price that will be realized at the sale of each loan.

Interest Rate Lock Commitments—Interest rate lock commitments ("IRLCs") represent an agreement to extend credit to a mortgage loan applicant. We commit (subject to loan approval) to fund the loan at the specified rate, regardless of changes in market interest rates between the commitment date and the funding date. Outstanding IRLCs are subject to interest rate risk and related price risk during the period from the date of commitment through the loan funding date or expiration date. Loan commitments generally range between 30 and 90 days and the borrower is not obligated to obtain the loan. Therefore, IRLCs are subject to fallout risk, which occurs when approved borrowers choose not to close on the underlying loans. We review our commitment-to-closing ratio ("pull-through rate") as part of an estimate of the number of mortgage loans that will fund according to the IRLCs.

The notional amounts of our forward sales commitments and IRLCs were as follows:
InstrumentJune 30, 2024December 31, 2023
Forward sales commitments$435,861 $274,400 
IRLCs350,852 188,554 

11

The locations and amounts of gains (losses) recognized in income related to our derivatives were as follows:
Three Months Ended June 30,Six Months Ended June 30,
InstrumentClassification2024202320242023
Forward sales commitmentsRevenue$(470)$2,285 $1,936 $2,032 
IRLCsRevenue(2,624)(5,302)(99)2,572 

Fair Value of Financial Instruments

A summary of assets and liabilities related to our financial instruments, measured at fair value on a recurring basis and as reflected in our consolidated balance sheets, is set forth below:
Balance at June 30, 2024Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Assets
Cash equivalents
Money market funds$148,890 $148,890 $ $ 
Total cash equivalents148,890 148,890   
Loans held for sale208,460  208,460  
Other current assets
Forward sales commitments1,392  1,392  
IRLCs4,901   4,901 
Total other current assets6,293  1,392 4,901 
Mortgage servicing rights, at fair value2,695   2,695 
Total assets$366,338 $148,890 $209,852 $7,596 
Liabilities
Accrued liabilities
Forward sales commitments$1,884 $ $1,884 $ 
IRLCs548   548 
Total liabilities$2,432 $ $1,884 $548 

12

Balance at December 31, 2023Quoted Prices in Active Markets for Identical Assets (Level 1)Significant Other Observable Inputs (Level 2)Significant Unobservable Inputs (Level 3)
Assets
Cash equivalents
        Money market funds$115,276 $115,276 $ $