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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 March 31, 2023
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 110,805,182 shares of common stock outstanding as of May 1, 2023.



Redfin Corporation

Quarterly Report on Form 10-Q
For the Quarter Ended March 31, 2023

Table of Contents
PART I
Page
Item 1.
Item 2.
Item 3.
Item 4.
PART II
Item 1
Item 1A.
Item 6.



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, and (ii) each warehouse credit facility, the terms "we," "us," and "our" refer to Redfin Mortgage, LLC or Bay Equity LLC, as the context dictates.

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, 2022, 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

Table of Contents
PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

Redfin Corporation and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share amounts, unaudited)
March 31, 2023December 31, 2022
Assets
Current assets
Cash and cash equivalents$149,940 $239,840 
Restricted cash2,416 2,406 
Short-term investments140,531 122,259 
Accounts receivable, net of allowances for credit losses of $2,277 and $2,019
48,142 54,880 
Inventory10,685 114,273 
Loans held for sale192,622 199,604 
Prepaid expenses33,784 34,506 
Other current assets14,918 8,690 
Total current assets593,038 776,458 
Property and equipment, net52,551 55,105 
Right-of-use assets, net38,932 42,032 
Mortgage servicing rights, at fair value35,061 36,261 
Long-term investments9,572 29,480 
Goodwill461,349 461,349 
Intangible assets, net152,525 162,272 
Other assets, noncurrent11,413 11,247 
Total assets$1,354,441 $1,574,204 
Liabilities, mezzanine equity, and stockholders' equity
Current liabilities
Accounts payable$10,154 $11,819 
Accrued and other liabilities92,275 109,743 
Warehouse credit facilities185,283 190,509 
Convertible senior notes, net23,468 23,431 
Lease liabilities18,015 19,137 
Total current liabilities329,195 354,639 
Lease liabilities, noncurrent35,757 37,298 
Convertible senior notes, net, noncurrent928,651 1,078,157 
Deferred tax liabilities249 243 
Total liabilities1,293,852 1,470,337 
Commitments and contingencies (Note 8)
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively
39,925 39,914 
Stockholders’ equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 110,526,884 and 109,696,178 shares issued and outstanding at March 31, 2023 and December 31, 2022, respectively
110 110 
Additional paid-in capital775,094 757,951 
Accumulated other comprehensive loss(435)(801)
Accumulated deficit(754,105)(693,307)
Total stockholders’ equity20,664 63,953 
Total liabilities, mezzanine equity, and stockholders’ equity$1,354,441 $1,574,204 

See Notes to the consolidated financial statements.
1

Table of Contents
Redfin Corporation and Subsidiaries
Consolidated Statements of Comprehensive Loss
(in thousands, except share and per share amounts, unaudited)
Three Months Ended March 31,
20232022
Revenue
Service$212,934 $217,593 
Product112,727 379,753 
Total revenue325,661 597,346 
Cost of revenue
Service154,796 165,809 
Product114,658 358,999 
Total cost of revenue269,454 524,808 
Gross profit56,207 72,538 
Operating expenses
Technology and development48,192 49,640 
Marketing40,908 43,342 
General and administrative69,962 58,966 
Restructuring and reorganization1,053 5,710 
Total operating expenses160,115 157,658 
Loss from operations(103,908)(85,120)
Interest income3,406 220 
Interest expense(1,922)(3,861)
Income tax expense(410)(134)
Gain on extinguishment of convertible senior notes42,270  
Other expense, net(234)(1,911)
Net loss$(60,798)$(90,806)
Dividends on convertible preferred stock(226)(793)
Net loss attributable to common stock—basic and diluted$(61,024)$(91,599)
Net loss per share attributable to common stock—basic and diluted$(0.55)$(0.86)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted110,103,598 106,664,140 
Net loss$(60,798)$(90,806)
Other comprehensive (loss) income
Foreign currency translation adjustments58 4 
Unrealized (loss) gain on available-for-sale debt securities(424)561 
Comprehensive loss$(61,164)$(90,241)

See Notes to the consolidated financial statements.

2

Table of Contents
Redfin Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Three Months Ended March 31,
20232022
Operating Activities
Net loss
$(60,798)$(90,806)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization17,013 14,813 
Stock-based compensation19,028 16,788 
Amortization of debt discount and issuance costs1,087 1,440 
Non-cash lease expense4,816 3,169 
Impairment costs113  
Net (gain) loss on IRLCs, forward sales commitments, and loans held for sale(8,326)60 
Change in fair value of mortgage servicing rights, net1,208  
Gain on extinguishment of convertible senior notes(42,270) 
Other(1,174)2,290 
Change in assets and liabilities:
Accounts receivable, net6,738 17,312 
Inventory103,588 112,734 
Prepaid expenses and other assets1,110 (1,982)
Accounts payable(1,675)9,876 
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent(16,813)(14,442)
Lease liabilities(4,619)(3,642)
Origination of mortgage servicing rights(347) 
Proceeds from sale of mortgage servicing rights339  
Origination of loans held for sale(854,085)(159,186)
Proceeds from sale of loans originated as held for sale861,771 170,577 
Net cash provided by operating activities26,704 79,001 
Investing activities
Purchases of property and equipment(2,919)(7,442)
Purchases of investments(57,556)(77,596)
Sales of investments12,014 5,346 
Maturities of investments48,483 6,500 
Net cash provided by (used in) investing activities22 (73,192)
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans143 1,887 
Tax payments related to net share settlements on restricted stock units(3,161)(2,595)
Borrowings from warehouse credit facilities852,988 152,386 
Repayments to warehouse credit facilities(858,214)(163,144)
Borrowings from secured revolving credit facility 156,799 
Repayments to secured revolving credit facility (219,711)
Cash paid for secured revolving credit facility issuance costs (764)
Principal payments under finance lease obligations(40)(217)
Repurchases of convertible senior notes(108,274) 
Net cash used in financing activities(116,558)(75,359)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash(58)(4)
Net change in cash, cash equivalents, and restricted cash(89,890)(69,554)
Cash, cash equivalents, and restricted cash:
Beginning of period242,246 718,281 
End of period
$152,356 $648,727 
Supplemental disclosure of cash flow information
Cash paid for interest
$4,609 $3,377 
Non-cash transactions
Stock-based compensation capitalized in property and equipment1,134 1,134 
Property and equipment additions in accounts payable and accrued liabilities32 326 
As of March 31,
20232022
Reconciliation of cash, cash equivalents, and restricted cash
Cash and cash equivalents$149,940 $612,680 
Restricted cash2,416 36,047 
Total cash, cash equivalents, and restricted cash$152,356 $648,727 

See Notes to the consolidated financial statements.
3

Table of Contents
Redfin Corporation and Subsidiaries
Consolidated Statements of Changes in Mezzanine Equity and Stockholders’ Equity
(in thousands, except share amounts, unaudited)
Series A Convertible Preferred StockCommon StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive LossTotal Stockholders' Equity
SharesAmountSharesAmount
Balance, December 31, 2021
40,000 $39,868 106,308,767 $106 $682,084 $(372,164)$(174)$309,852 
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 exercise of stock options— — 208,499  1,815 — — 1,815 
Issuance of common stock pursuant to settlement of restricted stock units— — 684,357 1 (1)— — — 
Common stock surrendered for employees' tax liability upon settlement of restricted stock units— — (206,572)— (2,595)— — (2,595)
Stock-based compensation— — — — 17,922 — — 17,922 
Other comprehensive loss— — — — — — (565)(565)
Net loss— — — — — (90,806)— (90,806)
Balance, March 31, 2022
40,000 $39,879 107,025,691 $107 $699,225 $(462,970)$(739)$235,623 
Balance, December 31, 2022
40,000 $39,914 109,696,178 $110 $757,951 $(693,307)$(801)$63,953 
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 exercise of stock options— — 18,037  143 — — 143 
Issuance of common stock pursuant to settlement of restricted stock units— — 1,155,826 1 (1)— —  
Common stock surrendered for employees' tax liability upon settlement of restricted stock units— — (373,797)(1)(3,161)— — (3,162)
Stock-based compensation— — — — 20,162 — — 20,162 
Other comprehensive income— — — — — — 366 366 
Net loss— — — — — (60,798)— (60,798)
Balance, March 31, 2023
40,000 $39,925 110,526,884 $110 $775,094 $(754,105)$(435)$20,664 

See Notes to the consolidated financial statements.
4

Table of Contents
Index to Notes to Consolidated Financial Statements

Note 1:
Note 2:
Note 3:
Note 4:
Note 5:
Note 6:
Note 7:
Note 8:
Note 9:
Note 10:
Note 11:
Note 12:
Note 13:
Note 14:
Note 15:
5

Index to Notes to Financial Statements
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, 2022 that is included in this quarterly report is derived from the audited consolidated financial statements and notes for the year ended December 31, 2022 included in Item 8 in our annual report for the year ended December 31, 2022. 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 March 31, 2023, our statements of comprehensive loss, and statements of changes in mezzanine equity and stockholders’ equity for the three months ended March 31, 2023 and 2022, as well as our statements of cash flows for the three months ended March 31, 2023 and 2022. The results for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the year ending December 31, 2023 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 its wholly owned subsidiaries, including those entities in which we have a variable interest and of which we are the primary beneficiary. 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, net realizable value of inventory, 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—None applicable.

Recently Issued Accounting Pronouncements—None applicable.

Note 2: Business Combinations

On April 1, 2022, we acquired, for $139,671 in cash, all of the equity interests of Bay Equity, and Bay Equity became one of our wholly owned subsidiaries. We acquired Bay Equity to expand our mortgage business.

The results of operations and the fair values of the assets acquired and liabilities assumed have been included in our consolidated financial statements since the date of acquisition. The revenue from Bay Equity is reported in our mortgage segment in Note 3. The goodwill recognized in connection with our acquisition of Bay Equity is primarily attributable to the anticipated synergies from future growth of the combined business and is not expected to be deductible for tax purposes. We assigned the recognized goodwill of $51,967 to the mortgage segment.
6

Index to Notes to Financial Statements

The following table summarizes the fair value of assets acquired and liabilities assumed as a result of the Bay Equity acquisition:
Cash and cash equivalents$39,963 
Restricted cash2,367 
Accounts receivable9,697 
Prepaid expenses1,222 
Other current assets19,262 
Property and equipment, net897 
Operating lease right-of-use assets4,995 
Loans held for sale213,891 
Mortgage servicing rights, at fair value33,982 
Other assets, noncurrent294 
Intangible assets14,510 
Goodwill51,967 
Total assets acquired393,047 
Accounts payable1,747 
Accrued and other liabilities38,026 
Lease liabilities2,848 
Lease liabilities and deposits, noncurrent2,147 
Warehouse credit facilities208,608 
Total liabilities assumed253,376 
Total purchase consideration$139,671 

There were $0 and $917 acquisition-related costs associated with the Bay Equity Acquisition for the three months ended March 31, 2023 and 2022, respectively.

Identifiable Intangible AssetsThe following table provides the fair values of the Bay Equity intangible assets, along with their estimated useful lives:
Estimated Fair ValueEstimated Useful Life
(in years)
Trade names$11,650 5
Developed technology2,860 3
Total14,510 

The identifiable intangible assets include trade names and developed technology. Trade names primarily relate to the Bay Equity brand. Developed technology primarily relates to website functionality around data consolidation and optimization which helps drive efficiencies in loan origination and processing. The fair values of trade names and developed technology are derived by applying the relief from royalty method and replacement cost method, respectively. Critical estimates in valuing the intangible assets include revenue growth rate, royalty rate, discount rate, and number of months to recreate the underlying application.

7

Index to Notes to Financial Statements
Unaudited Pro Forma Financial Information—The following table presents unaudited pro forma financial information for the three months ended March 31, 2023 and 2022. The pro forma financial information combines our results of operations with that of Bay Equity as though the companies had been combined as of January 1, 2021. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the Bay Equity acquisition had taken place at such time.
Three Months Ended March 31,
20232022
Revenue$325,661 $653,214 
Net loss(60,798)(86,594)

There were no material non-recurring adjustments made in the pro forma financial information disclosed above.

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 and gross profit. 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 six operating segments and four reportable segments, real estate services, properties, rentals, and mortgage. As a result of our decision to wind-down RedfinNow operations in November 2022, we plan to report our properties segment as a discontinued operation beginning with the period during which we complete wind-down of the business.

We generate revenue primarily from commissions and fees charged on each real estate services transaction closed by our lead agents or partner agents, from the sale of homes, 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, properties revenue, rentals revenue, mortgage revenue, and other revenue.

8

Index to Notes to Financial Statements
Information on each of our reportable and other segments and reconciliation to consolidated net loss 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 March 31, 2023
Real estate servicesPropertiesRentalsMortgageOtherCorporate Overhead and Intercompany EliminationsTotal
Revenue$127,296 $112,727 $42,870 $36,489 $7,428 $(1,149)$325,661 
Cost of revenue111,494 114,658 9,765 29,213 5,473 (1,149)269,454 
Gross profit15,802 (1,931)33,105 7,276 1,955  56,207 
Operating expenses
Technology and development28,895 529 15,964 643 1,224 937 48,192 
Marketing25,060 505 14,326 980 10 27 40,908 
General and administrative19,618 523 26,302 6,929 1,053 15,537 69,962 
Restructuring and reorganization     1,053 1,053 
Total operating expenses73,573 1,557 56,592 8,552 2,287 17,554 160,115 
Loss from operations(57,771)(3,488)(23,487)(1,276)(332)(17,554)(103,908)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net 814 45 (60)115 42,196 43,110 
Net loss$(57,771)$(2,674)$(23,442)$(1,336)$(217)$24,642 $(60,798)
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)$597,346 
Cost of revenue153,784 358,866 7,193 5,517 4,671 (5,223)524,808 
Gross profit23,703 20,887 30,851 (2,600)(303) 72,538 
Operating expenses
Technology and development26,739 4,119 14,282 2,347 1,036 1,117 49,640 
Marketing30,844 1,153 11,042 28 53 222 43,342 
General and administrative22,992 2,825 24,192 1,524 712 6,721 58,966 
Restructuring and reorganization     5,710 5,710 
Total operating expenses80,575 8,097 49,516 3,899 1,801 13,770 157,658 
Income (loss) from operations(56,872)12,790 (18,665)(6,499)(2,104)(13,770)(85,120)
Interest income, interest expense, income tax expense, and other expense, net (1,624)469 1 1 (4,533)(5,686)
Net (loss) income$(56,872)$11,166 $(18,196)$(6,498)$(2,103)$(18,303)$(90,806)

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.

9

Index to Notes to Financial Statements
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.
Notional AmountsMarch 31, 2023December 31, 2022
Forward sales commitments$416,648 $301,548 
IRLCs384,007 210,787 

The locations and amounts of gains (losses) recognized in income related to our derivatives are as follows:
Three Months Ended March 31,
InstrumentClassification20232022
Forward sales commitmentsService revenue$(253)$1,503 
IRLCsService revenue7,874 (887)

10

Index to Notes to Financial Statements
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 March 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$123,762 $123,762 $ $ 
Total cash equivalents123,762 123,762   
Short-term investments
U.S. treasury securities108,326 108,326   
Agency bonds32,205 32,205   
Total short-term investments140,531 140,531 — — 
Loans held for sale192,622  192,622  
Other current assets
Forward sales commitments1,840  1,840  
IRLCs9,213   9,213 
Total other current assets11,053  1,840 9,213 
Mortgage servicing rights, at fair value35,061   35,061 
Long-term investments
U.S. treasury securities4,939 4,939   
Agency bonds4,633 4,633   
Total long-term investments9,572 9,572 — — 
Total assets$512,601 $273,865 $194,462 $44,274 
Liabilities
Accrued liabilities
Forward sales commitments$2,297 $ $2,297 $ 
IRLCs43   43 
Total liabilities$2,340 $ $2,297 $43 

11

Index to Notes to Financial Statements
Balance at December 31, 2022Quoted 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$186,410 $186,410 $ $ 
Total cash equivalents186,410 186,410   
Short-term investments
   U.S. treasury securities96,925 96,925   
Agency bonds25,334 25,334   
Total short-term investments122,259 122,259   
Loans held for sale199,604  199,604  
Other current assets
Forward sales commitments1,669  1,669  
IRLCs2,338   2,338 
Total other current assets4,007  1,669 2,338 
Mortgage servicing rights, at fair value36,261   36,261 
Long-term investments
U.S. treasury securities29,480