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Redfin Reports Second Quarter 2024 Financial Results

SEATTLE - August 6, 2024 - Redfin Corporation (NASDAQ: RDFN) today announced results for its second quarter ended June 30, 2024.

Second Quarter 2024
Second quarter revenue was $295.2 million, an increase of 7% compared to the second quarter of 2023. Gross profit was $109.6 million, an increase of 9% year-over-year. Real estate services gross profit was $53.7 million, a decrease of 4% year-over-year, and real estate services gross margin was 29%, compared to 31% in the second quarter of 2023.

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

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

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

Second Quarter Highlights
•Second quarter market share was 0.77% of U.S. existing home sales by units, compared to 0.75% in the second quarter of 2023.
•Redfin’s mobile apps and website reached nearly 52 million average monthly users, compared to 52 million the second quarter of 2023.
•Achieved a 28% mortgage attach rate in the second quarter of 2024, up 4 points from the second quarter of 2023.1
•Sequential step-up in loyalty sales, with 37% of sales coming from loyalty customers compared to 34% in the first quarter of 2024.
•Announced our Redfin Next agent pay plan will expand to 25 additional markets in August, bringing the program to markets accounting for approximately 74% of brokerage revenues. To date, Redfin has signed more than 200 top producing agents to join the brokerage under Redfin Next.
•Launched Redfin Redesign for homeowners, helping those who have claimed their home on Redfin use AI to redesign their spaces. We also partnered with five additional MLSs to make Redfin Redesign available for more than 240,000 for-sale listings.
•Launched products to help property managers connect with renters:
1

◦Self-service rental tools on Redfin.com that allow homeowners, investors, property managers and agents to list properties for rent on Redfin.
◦Rent.com photo optimization feature that uses machine learning to arrange rental listing photos to drive the most renter engagement.

(1) Attach rate reflects total closed loans for Redfin buy-side customers divided by Redfin buy-side transactions with a mortgage (excluding cash transactions) for the period. We previously reported only the inclusive attach rate (includes cash transactions in the denominator), which was 22% in the second quarter of 2024, compared to 19% in the second quarter of 2023.

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

For the third quarter of 2024 we expect:
•Total revenue between $273 million and $285 million, representing a year-over-year growth between 1% and 6% compared to the third quarter of 2023. Included within total revenue are real estate services revenue between $171 million and $179 million, rentals revenue between $50 million and $51 million, mortgage revenue between $36 million and $39 million and other revenue between $15 million and $16 million.
•Total net loss is expected to be between $30 million and $22 million, compared to net loss of $19 million in the third quarter of 2023. This guidance includes approximately $29 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $6 million in net interest expense. Adjusted EBITDA is expected to be between $4 million and $12 million. Furthermore, we expect to pay a quarterly dividend of 30,640 shares of common stock to our preferred stockholder.

Conference Call
Redfin will webcast a conference call to discuss the results at 1:30 p.m. Pacific Time today. The webcast will be open to the public at http://investors.redfin.com. The webcast will remain available on the investor relations website for at least three months following the conference call.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, including our future operating results, as described under Business Outlook. We believe our expectations related to these forward-looking statements are reasonable, but actual results may turn out to be materially different. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our annual report for the year ended December 31, 2023, as supplemented by our quarterly report for the quarter ended March 31, 2024, both of which are available on our Investor Relations website at http://investors.redfin.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.

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

About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Customers selling a home can have our renovations crew fix it up to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.6 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin-F

Contacts

Investor Relations
Meg Nunnally
ir@redfin.com

Public Relations
Mariam Sughayer
press@redfin.com


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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 $3,23475,522 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 
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, 202339,981 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, respectively122 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 
4

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 $489,639 
Cost of revenue(1)
185,617 175,366 340,284 331,311 
Gross profit109,586 100,190 180,398 158,328 
Operating expenses
Technology and development(1)
42,215 47,141 88,644 94,804 
Marketing(1)
40,260 33,033 65,138 73,436 
General and administrative(1)
54,705 61,765 122,578 131,204 
Restructuring and reorganization1,334 6,106 2,223 7,159 
Total operating expenses138,514 148,045 278,583 306,603 
Loss from continuing operations(28,928)(47,855)(98,185)(148,275)
Interest income1,461 2,704 3,293 6,110 
Interest expense(6,086)(1,766)(10,960)(3,688)
Income tax expense(559)(233)(387)(643)
Gain on extinguishment of convertible senior notes6,314 20,083 12,000 62,353 
Other expense, net(82)(145)(415)(379)
Net loss from continuing operations(27,880)(27,212)(94,654)(84,522)
Net loss from discontinued operations— (146)— (3,634)
Net loss$(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)

(1) Includes stock-based compensation as follows:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Cost of revenue$3,045 $3,001 $5,784 $7,136 
Technology and development8,718 8,241 16,957 16,368 
Marketing1,349 1,254 2,780 2,499 
General and administrative5,119 5,025 10,119 10,345 
Total$18,231 $17,521 $35,640 $36,348 

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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 period151,000 242,246 
End of period
$202,568 $121,264 






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Redfin Corporation and Subsidiaries
Supplemental Financial Information and Business Metrics
(unaudited)
Three Months Ended
Jun. 30, 2024Mar. 31, 2024Dec. 31, 2023Sep. 30, 2023Jun. 30, 2023Mar. 31, 2023Dec. 31, 2022Sep. 30, 2022
Monthly average visitors (in thousands)51,619 48,803 43,861 51,309 52,308 50,440 43,847 50,785 
Real estate services transactions
Brokerage14,178 10,039 10,152 13,075 13,716 10,301 12,743 18,245 
Partner3,395 2,691 3,186 4,351 3,952 3,187 2,742 3,507 
Total17,573 12,730 13,338 17,426 17,668 13,488 15,485 21,752 
Real estate services revenue per transaction
Brokerage$12,545 $12,433 $12,248 $12,704 $12,376 $11,556 $10,914 $11,103 
Partner2,859 2,367 2,684 2,677 2,756 2,592 2,611 2,556 
Aggregate10,674 10,305 9,963 10,200 10,224 9,438 9,444 9,725 
U.S. market share by units
0.77 %0.77 %0.72 %0.78 %0.75 %0.79 %0.76 %0.80 %
Revenue from top-10 Redfin markets as a percentage of real estate services revenue56 %55 %55 %56 %55 %53 %57 %58 %
Average number of lead agents
1,719 1,658 1,692 1,744 1,792 1,876 2,022 2,293 
Mortgage originations by dollars (in millions)$1,338 $969 $885 $1,110 $1,282 $991 $1,036 $1,557 
Mortgage originations by units (in ones)3,192 2,365 2,293 2,786 3,131 2,444 2,631 3,720 













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Redfin Corporation and Subsidiaries
Supplemental Financial Information
(unaudited, in thousands)
Three Months Ended June 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
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)

Three Months Ended June 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Net (loss) income from continuing operations$(18,195)$(7,153)$(215)$7,229 $(9,546)$(27,880)
Interest income(1)
(14)(51)(2,990)(180)(1,217)(4,452)
Interest expense(2)
— — 2,953 — 6,084 9,037 
Income tax expense— 38 — — 521 559 
Depreciation and amortization3,116 4,972 920 242 207 9,457 
Stock-based compensation(3)
11,525 3,125 476 600 2,505 18,231 
Restructuring and reorganization(4)
— — — — 1,334 1,334 
Gain on extinguishment of convertible senior notes— — — — (6,314)(6,314)
Adjusted EBITDA$(3,568)$931 $1,144 $7,891 $(6,426)$(28)
(1) Interest income includes $3.0 million of interest income related to originated mortgage loans for the three months ended June 30, 2024.
(2) Interest expense includes $3.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2024.
(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.
(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.

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Three Months Ended June 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
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 $0.1 million from providing services to our discontinued properties segment.
Three Months Ended June 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Net (loss) income from continuing operations$(8,815)$(22,590)$(4,443)$2,882 $5,754 $(27,212)
Interest income(1)
— (77)(3,686)(153)(2,467)(6,383)
Interest expense(2)
— — 3,990 — 1,766 5,756 
Income tax expense— 43 83 — 107 233 
Depreciation and amortization5,264 10,235 994 307 329 17,129 
Stock-based compensation(3)
12,297 3,709 823 561 131 17,521 
Acquisition-related costs(4)
— — — — 8 8 
Restructuring and reorganization(5)
— — — — 6,106 6,106 
Gain on extinguishment of convertible senior notes— — — — (20,083)(20,083)
Adjusted EBITDA$8,746 $(8,680)$(2,239)$3,597 $(8,349)$(6,925)
(1) Interest income includes $3.7 million of interest income related to originated mortgage loans for the three months ended June 30, 2023.
(2) Interest expense includes $4.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2023.
(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.









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Six Months Ended June 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
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)

Six Months Ended June 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Net (loss) income from continuing operations$(57,434)$(19,863)$(542)$10,050 $(26,865)$(94,654)
Interest income(1)
(30)(122)(5,024)(424)(2,718)(8,318)
Interest expense(2)
— — 5,038 — 10,957 15,995 
Income tax expense— 98 — — 289 387 
Depreciation and amortization6,300 14,811 1,884 440 420 23,855 
Stock-based compensation(3)
22,913 6,463 752 1,100 4,412 35,640 
Restructuring and reorganization(4)
— — — — 2,223 2,223 
Gain on extinguishment of convertible senior notes— — — — (12,000)(12,000)
Legal contingencies(5)
— — — — 9,250 9,250 
Adjusted EBITDA$(28,251)$1,387 $2,108 $11,166 $(14,032)$(27,622)
(1) Interest income includes $5.0 million of interest income related to originated mortgage loans for the six months ended June 30, 2024.
(2) Interest expense includes $5.0 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2024.
(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.
(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.
(5) Legal contingencies includes expenses related to material contingent liabilities resulting from litigation or other legal proceedings.

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Six Months Ended June 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
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 $1.2 million from providing services to our discontinued properties segment.
Six Months Ended June 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Net (loss) income from continuing operations
$(66,586)$(46,032)$(5,779)$2,665 $31,210 $(84,522)
Interest income(1)
— (157)(6,176)(268)(5,668)(12,269)
Interest expense(2)
— — 6,605 — 3,687 10,292 
Income tax expense— 86 151 — 406 643 
Depreciation and amortization9,696 20,387 1,982 523 1,432 34,020 
Stock-based compensation(3)
21,890 7,325 2,081 1,122 3,930 36,348 
Acquisition-related costs(4)
— — — — 8 8 
Restructuring and reorganization(5)
— — — — 7,159 7,159 
Impairment(6)
— — — — 113 113 
Gain on extinguishment of convertible senior notes— — — — (62,353)(62,353)
Adjusted EBITDA$(35,000)$(18,391)$(1,136)$4,042 $(20,076)$(70,561)
(1) Interest income includes $6.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2023.
(2) Interest expense includes $6.6 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2023.
(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.
(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.
(6) Impairment consists of an impairment loss due to subleasing one of our operating leases.

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

Three months ending September 30, 2024
LowHigh
Net loss(30)(22)
Net interest expense6 6 
Depreciation and amortization9 9 
Stock-based compensation18 18 
Adjusted EBITDA4 12 
Note: Figures may not sum due to rounding.
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