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

Three Months Ended
March 31, 2022
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Revenue$177,487 $379,753 $38,044 $2,917 $4,368 $(5,223)$597,346 
Cost of revenue153,784 358,866 7,193 5,517 4,671 (5,223)524,808 
Gross profit23,703 20,887 30,851 (2,600)(303)— 72,538 
Operating expenses
Technology and development26,739 4,119 14,282 2,347 1,036 1,117 49,640 
Marketing30,844 1,153 11,042 28 53 222 43,342 
General and administrative22,992 2,825 24,192 1,524 712 6,721 58,966 
Restructuring and reorganization(5)
— — — — — 5,710 5,710 
Total operating expenses80,575 8,097 49,516 3,899 1,801 13,770 157,658 
Income (loss) from operations(56,872)12,790 (18,665)(6,499)(2,104)(13,770)(85,120)
Interest income, interest expense, income tax expense, and other expense, net— (1,624)469 (4,533)(5,686)
Net (loss) income$(56,872)$11,166 $(18,196)$(6,498)$(2,103)$(18,303)$(90,806)

Three Months Ended
March 31, 2022
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Net (loss) income$(56,872)$11,166 $(18,196)$(6,498)$(2,103)$(18,303)$(90,806)
Interest income(1)
— (25)— (318)(1)(194)(538)
Interest expense(2)
— 1,649 — 277 — 2,212 4,138 
Income tax expense— — (203)— — 337 134 
Depreciation and amortization4,018 537 9,356 302 255 345 14,813 
Stock-based compensation(3)
10,140 1,537 2,240 601 369 1,901 16,788 
Acquisition-related costs(4)
— — — — — 917 917 
Restructuring and reorganization(5)
— — — — — 5,710 5,710 
Adjusted EBITDA$(42,714)$14,864 $(6,803)$(5,636)$(1,480)$(7,075)$(48,844)

(1) Interest income includes $0.3 million of interest income related to originated mortgage loans for the three months ended March 31, 2022.
(2) Interest expense includes $0.3 million of interest expense related to our warehouse credit facilities for the three months ended March 31, 2022.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention for our mortgage and rentals segments due to the restructuring and reorganization activities from our acquisitions of Bay Equity and RentPath, respectively.

1


Three Months Ended
December 31, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Revenue$224,732 $377,065 $38,923 $3,996 $3,347 $(5,006)$643,057 
Cost of revenue149,529 373,105 6,774 6,690 3,941 (5,006)535,033 
Gross profit75,203 3,960 32,149 (2,694)(594)— 108,024 
Operating expenses
Technology and development20,727 3,724 13,876 2,582 990 1,995 43,894 
Marketing11,923 466 9,450 149 104 305 22,397 
General and administrative23,842 2,828 25,530 2,620 823 11,319 66,962 
Total operating expenses56,492 7,018 48,856 5,351 1,917 13,619 133,253 
Income (loss) from operations18,711 (3,058)(16,707)(8,045)(2,511)(13,619)(25,229)
Interest income, interest expense, income tax expense, and other expense, net— (1,723)2,777 (2,829)(1,773)
Net income (loss)$18,711 $(4,781)$(13,930)$(8,044)$(2,510)$(16,448)$(27,002)

Three Months Ended
December 31, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Net income (loss)$18,711 $(4,781)$(13,930)$(8,044)$(2,510)$(16,448)$(27,002)
Interest income(1)
— (2)— (424)(1)(159)(586)
Interest expense(2)
— 1,725 — 431 — 2,214 4,370 
Income tax expense— — (2,177)— — 1,433 (744)
Depreciation and amortization3,583 554 9,307 387 247 525 14,603 
Stock-based compensation(3)
8,963 1,492 994 820 348 2,669 15,286 
Adjusted EBITDA$31,257 $(1,012)$(5,806)$(6,830)$(1,916)$(9,766)$5,927 

(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended December 31, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended December 31, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.



2


Three Months Ended
September 30, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Revenue$257,795 $238,417 $40,406 $5,013 $3,193 $(4,750)$540,074 
Cost of revenue161,449 238,397 7,395 6,705 3,576 (4,750)412,772 
Gross profit96,346 20 33,011 (1,692)(383)— 127,302 
Operating expenses
Technology and development20,732 3,602 13,849 2,910 586 1,979 43,658 
Marketing33,894 645 14,113 149 42 300 49,143 
General and administrative18,383 2,258 23,264 2,334 533 7,623 54,395 
Total operating expenses73,009 6,505 51,226 5,393 1,161 9,902 147,196 
Income (loss) from operations23,337 (6,485)(18,215)(7,085)(1,544)(9,902)(19,894)
Interest income, interest expense, income tax expense, and other expense, net(56)(1,456)311 2,144 945 
Net income (loss)$23,281 $(7,941)$(17,904)$(7,084)$(1,543)$(7,758)$(18,949)

Three Months Ended
September 30, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Net income (loss)$23,281 $(7,941)$(17,904)$(7,084)$(1,543)$(7,758)$(18,949)
Interest income(1)
— (1)— (402)(1)(176)(580)
Interest expense(2)
— 1,456 — 399 — 2,216 4,071 
Income tax expense— — (311)— — — (311)
Depreciation and amortization3,470 530 9,189 427 181 488 14,285 
Stock-based compensation(3)
8,138 1,312 143 721 167 2,629 13,110 
Acquisition-related costs(4)
— — — — — 202 202 
Adjusted EBITDA$34,889 $(4,644)$(8,883)$(5,939)$(1,196)$(2,399)$11,828 

(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended September 30, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

3


Three Months Ended
June 30, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Revenue$252,199 $172,445 $42,548 $5,099 $3,422 $(4,398)$471,315 
Cost of revenue164,125 167,420 7,570 6,832 3,630 (4,398)345,179 
Gross profit88,074 5,025 34,978 (1,733)(208)— 126,136 
Operating expenses
Technology and development20,010 3,080 13,568 2,536 479 1,815 41,488 
Marketing41,746 572 12,607 130 30 313 55,398 
General and administrative18,498 2,078 23,116 1,927 416 13,532 59,567 
Total operating expenses80,254 5,730 49,291 4,593 925 15,660 156,453 
Income (loss) from operations7,820 (705)(14,313)(6,326)(1,133)(15,660)(30,317)
Interest income, interest expense, income tax expense, and other expense, net(3)(662)212 2,890 2,439 
Net income (loss)$7,817 $(1,367)$(14,101)$(6,325)$(1,132)$(12,770)$(27,878)

Three Months Ended
June 30, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Net income (loss)$7,817 $(1,367)$(14,101)$(6,325)$(1,132)$(12,770)$(27,878)
Interest income(1)
— (2)— (414)(1)(131)(548)
Interest expense(2)
— 664 — 407 — 2,149 3,220 
Income tax expense— — (212)— — (4,840)(5,052)
Depreciation and amortization3,180 412 9,110 313 167 495 13,677 
Stock-based compensation(3)
9,042 1,239 113 770 191 2,388 13,743 
Acquisition-related costs(4)
— — — — — 5,616 5,616 
Adjusted EBITDA$20,039 $946 $(5,090)$(5,249)$(775)$(7,093)$2,778 

(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended June 30, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

4


Three Months Ended
March 31, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Revenue$168,609 $92,726 $— $5,711 $3,646 $(2,373)$268,319 
Cost of revenue128,216 91,130 — 5,869 3,119 (2,373)225,961 
Gross profit40,393 1,596 — (158)527 — 42,358 
Operating expenses
Technology and development20,119 2,830 199 2,367 473 1,690 27,678 
Marketing11,182 207 134 34 240 11,802 
General and administrative23,932 2,429 33 1,426 517 9,054 37,391 
Total operating expenses55,233 5,466 237 3,927 1,024 10,984 76,871 
Loss from operations(14,840)(3,870)(237)(4,085)(497)(10,984)(34,513)
Interest income, interest expense, income tax expense, and other expense, net(28)(420)— (825)(1,271)
Net loss$(14,868)$(4,290)$(237)$(4,084)$(496)$(11,809)$(35,784)

Three Months Ended
March 31, 2021
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Net loss$(14,868)$(4,290)$(237)$(4,084)$(496)$(11,809)$(35,784)
Interest income(1)
— (5)— (357)(1)(152)(515)
Interest expense(2)
— 425 — 429 — 913 1,767 
Income tax expense— — — — — — — 
Depreciation and amortization3,049 391 279 167 454 4,341 
Stock-based compensation(3)
8,518 1,135 61 674 150 2,045 12,583 
Acquisition-related costs(4)
— — — — — 2,107 2,107 
Adjusted EBITDA$(3,301)$(2,344)$(175)$(3,059)$(180)$(6,442)$(15,501)

(1) Interest income includes $0.4 million of interest income related to originated mortgage loans for the three months ended March 31, 2021.
(2) Interest expense includes $0.4 million of interest expense related to our warehouse credit facilities for the three months ended March 31, 2021.
(3) Stock-based compensation consists of expenses related to stock options, restricted stock units, and our employee stock purchase program.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

5