0001382821--12-312024Q3falseP1YP10DP2YChristian Taubman326xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesrdfn:segmentxbrli:purerdfn:patentrdfn:tradingDayrdfn:businessDay00013828212024-01-012024-09-3000013828212024-07-012024-09-3000013828212024-11-0100013828212024-09-3000013828212023-12-3100013828212023-07-012023-09-3000013828212023-01-012023-09-3000013828212022-12-3100013828212023-09-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-12-310001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2022-12-310001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2024-09-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-09-300001382821us-gaap:PreferredStockMember2024-06-300001382821us-gaap:CommonStockMember2024-06-300001382821us-gaap:AdditionalPaidInCapitalMember2024-06-300001382821us-gaap:RetainedEarningsMember2024-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-3000013828212024-06-300001382821us-gaap:PreferredStockMember2024-07-012024-09-300001382821us-gaap:CommonStockMember2024-07-012024-09-300001382821us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300001382821us-gaap:RetainedEarningsMember2024-07-012024-09-300001382821us-gaap:PreferredStockMember2024-09-300001382821us-gaap:CommonStockMember2024-09-300001382821us-gaap:AdditionalPaidInCapitalMember2024-09-300001382821us-gaap:RetainedEarningsMember2024-09-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300001382821us-gaap:PreferredStockMember2023-06-300001382821us-gaap:CommonStockMember2023-06-300001382821us-gaap:AdditionalPaidInCapitalMember2023-06-300001382821us-gaap:RetainedEarningsMember2023-06-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-3000013828212023-06-300001382821us-gaap:PreferredStockMember2023-07-012023-09-300001382821us-gaap:CommonStockMember2023-07-012023-09-300001382821us-gaap:AdditionalPaidInCapitalMember2023-07-012023-09-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-012023-09-300001382821us-gaap:RetainedEarningsMember2023-07-012023-09-300001382821us-gaap:PreferredStockMember2023-09-300001382821us-gaap:CommonStockMember2023-09-300001382821us-gaap:AdditionalPaidInCapitalMember2023-09-300001382821us-gaap:RetainedEarningsMember2023-09-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300001382821us-gaap:PreferredStockMember2023-12-310001382821us-gaap:CommonStockMember2023-12-310001382821us-gaap:AdditionalPaidInCapitalMember2023-12-310001382821us-gaap:RetainedEarningsMember2023-12-310001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001382821us-gaap:PreferredStockMember2024-01-012024-09-300001382821us-gaap:CommonStockMember2024-01-012024-09-300001382821us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300001382821us-gaap:RetainedEarningsMember2024-01-012024-09-300001382821us-gaap:PreferredStockMember2022-12-310001382821us-gaap:CommonStockMember2022-12-310001382821us-gaap:AdditionalPaidInCapitalMember2022-12-310001382821us-gaap:RetainedEarningsMember2022-12-310001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001382821us-gaap:PreferredStockMember2023-01-012023-09-300001382821us-gaap:CommonStockMember2023-01-012023-09-300001382821us-gaap:AdditionalPaidInCapitalMember2023-01-012023-09-300001382821us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300001382821us-gaap:RetainedEarningsMember2023-01-012023-09-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-07-012023-09-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-01-012023-09-300001382821rdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2024-01-012024-09-300001382821us-gaap:EmployeeSeveranceMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-01-012023-09-300001382821us-gaap:EmployeeSeveranceMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-09-300001382821rdfn:AssetWriteOffsMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-01-012023-09-300001382821rdfn:AssetWriteOffsMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-09-300001382821us-gaap:OtherRestructuringMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-01-012023-09-300001382821us-gaap:OtherRestructuringMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-09-300001382821rdfn:AcceleratedAmortizationOfDebtIssuanceCostsMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-01-012023-09-300001382821rdfn:AcceleratedAmortizationOfDebtIssuanceCostsMemberrdfn:PropertiesSegmentMemberus-gaap:DiscontinuedOperationsDisposedOfByMeansOtherThanSaleMember2023-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:RealEstateSegmentMember2024-07-012024-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:RentalsSegmentMember2024-07-012024-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:MortgageSegmentsMember2024-07-012024-09-300001382821us-gaap:CorporateNonSegmentMemberus-gaap:CorporateMember2024-07-012024-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:CorporateOverheadSegmentMember2024-07-012024-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:RealEstateSegmentMember2023-07-012023-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:RentalsSegmentMember2023-07-012023-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:MortgageSegmentsMember2023-07-012023-09-300001382821us-gaap:CorporateNonSegmentMemberus-gaap:CorporateMember2023-07-012023-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:CorporateOverheadSegmentMember2023-07-012023-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:RealEstateSegmentMember2024-01-012024-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:RentalsSegmentMember2024-01-012024-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:MortgageSegmentsMember2024-01-012024-09-300001382821us-gaap:CorporateNonSegmentMemberus-gaap:CorporateMember2024-01-012024-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:CorporateOverheadSegmentMember2024-01-012024-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:RealEstateSegmentMember2023-01-012023-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:RentalsSegmentMember2023-01-012023-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:MortgageSegmentsMember2023-01-012023-09-300001382821us-gaap:CorporateNonSegmentMemberus-gaap:CorporateMember2023-01-012023-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:CorporateOverheadSegmentMember2023-01-012023-09-300001382821us-gaap:OperatingSegmentsMemberrdfn:DiscontinuedPropertiesSegmentMember2023-01-012023-09-300001382821srt:MinimumMemberus-gaap:InterestRateLockCommitmentsMember2024-01-012024-09-300001382821srt:MaximumMemberus-gaap:InterestRateLockCommitmentsMember2024-01-012024-09-300001382821us-gaap:ForwardContractsMember2024-09-300001382821us-gaap:ForwardContractsMember2023-12-310001382821us-gaap:InterestRateLockCommitmentsMember2024-09-300001382821us-gaap:InterestRateLockCommitmentsMember2023-12-310001382821us-gaap:ForwardContractsMember2024-07-012024-09-300001382821us-gaap:ForwardContractsMember2023-07-012023-09-300001382821us-gaap:ForwardContractsMember2024-01-012024-09-300001382821us-gaap:ForwardContractsMember2023-01-012023-09-300001382821us-gaap:InterestRateLockCommitmentsMember2024-07-012024-09-300001382821us-gaap:InterestRateLockCommitmentsMember2023-07-012023-09-300001382821us-gaap:InterestRateLockCommitmentsMember2024-01-012024-09-300001382821us-gaap:InterestRateLockCommitmentsMember2023-01-012023-09-300001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001382821us-gaap:FairValueMeasurementsRecurringMember2024-09-300001382821us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001382821us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001382821us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMember2024-09-300001382821us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMember2024-09-300001382821us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMember2024-09-300001382821us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMember2024-09-300001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2024-09-300001382821us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2024-09-300001382821us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2024-09-300001382821us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2024-09-300001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001382821us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMember2023-12-310001382821us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001382821us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001382821us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-12-310001382821us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-12-310001382821us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-12-310001382821us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberrdfn:AgencyBondsMember2023-12-310001382821us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberrdfn:AgencyBondsMember2023-12-310001382821us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberrdfn:AgencyBondsMember2023-12-310001382821us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberrdfn:AgencyBondsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2023-12-310001382821us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2023-12-310001382821us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2023-12-310001382821us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:InterestRateLockCommitmentsMember2023-12-310001382821us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMember2023-12-310001382821us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMember2023-12-310001382821us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMember2023-12-310001382821us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForwardContractsMember2023-12-310001382821us-gaap:InterestRateLockCommitmentsMemberrdfn:MeasurementInputPullThroughRateMemberrdfn:MarketingpricingMembersrt:MinimumMember2024-09-300001382821us-gaap:InterestRateLockCommitmentsMemberrdfn:MeasurementInputPullThroughRateMemberrdfn:MarketingpricingMembersrt:MaximumMember2024-09-300001382821us-gaap:InterestRateLockCommitmentsMemberrdfn:MeasurementInputPullThroughRateMemberrdfn:MarketingpricingMember2024-09-300001382821us-gaap:InterestRateLockCommitmentsMemberrdfn:MeasurementInputPullThroughRateMemberrdfn:MarketingpricingMembersrt:MinimumMember2023-12-310001382821us-gaap:InterestRateLockCommitmentsMemberrdfn:MeasurementInputPullThroughRateMemberrdfn:MarketingpricingMembersrt:MaximumMember2023-12-310001382821us-gaap:InterestRateLockCommitmentsMemberrdfn:MeasurementInputPullThroughRateMemberrdfn:MarketingpricingMember2023-12-310001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-09-300001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-09-300001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-09-300001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2023-12-310001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2023-12-310001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputPrepaymentRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-09-300001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-09-300001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-09-300001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2023-12-310001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2023-12-310001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDefaultRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-310001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2024-09-300001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2024-09-300001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2024-09-300001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MinimumMember2023-12-310001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMembersrt:MaximumMember2023-12-310001382821rdfn:MortgageServicingRightsMemberus-gaap:MeasurementInputDiscountRateMemberus-gaap:ValuationTechniqueDiscountedCashFlowMember2023-12-3100013828212024-04-0100013828212023-04-010001382821rdfn:MortgageServicingRightsMember2024-04-010001382821rdfn:MortgageServicingRightsMember2023-04-010001382821rdfn:MortgageServicingRightsMember2023-12-310001382821rdfn:MortgageServicingRightsMember2022-12-310001382821rdfn:MortgageServicingRightsMember2024-07-012024-09-300001382821rdfn:MortgageServicingRightsMember2023-07-012023-09-300001382821rdfn:MortgageServicingRightsMember2024-01-012024-09-300001382821rdfn:MortgageServicingRightsMember2023-01-012023-09-300001382821rdfn:MortgageServicingRightsMember2024-09-300001382821rdfn:MortgageServicingRightsMember2023-09-300001382821rdfn:MortgageServicingRightsMember2024-04-012024-06-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2024-09-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2023-12-310001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2024-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2023-12-310001382821us-gaap:CashMemberus-gaap:FairValueMeasurementsRecurringMember2024-09-300001382821us-gaap:CashMemberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001382821us-gaap:LeaseholdImprovementsMember2024-09-300001382821us-gaap:LeaseholdImprovementsMember2023-12-310001382821srt:MinimumMemberus-gaap:SoftwareDevelopmentMember2024-09-300001382821srt:MaximumMemberus-gaap:SoftwareDevelopmentMember2024-09-300001382821us-gaap:SoftwareDevelopmentMember2024-09-300001382821us-gaap:SoftwareDevelopmentMember2023-12-310001382821srt:MinimumMemberus-gaap:OfficeEquipmentMember2024-09-300001382821srt:MaximumMemberus-gaap:OfficeEquipmentMember2024-09-300001382821us-gaap:OfficeEquipmentMember2024-09-300001382821us-gaap:OfficeEquipmentMember2023-12-310001382821rdfn:SoftwareMember2024-09-300001382821rdfn:SoftwareMember2023-12-310001382821us-gaap:FurnitureAndFixturesMember2024-09-300001382821us-gaap:FurnitureAndFixturesMember2023-12-310001382821rdfn:PropertyPlantAndEquipmentGrossExcludingConstructionInProgressMember2024-09-300001382821rdfn:PropertyPlantAndEquipmentGrossExcludingConstructionInProgressMember2023-12-310001382821us-gaap:ConstructionInProgressMember2024-09-300001382821us-gaap:ConstructionInProgressMember2023-12-310001382821srt:MinimumMember2024-09-300001382821srt:MaximumMember2024-09-300001382821us-gaap:VehiclesMember2024-09-300001382821us-gaap:CostOfSalesMember2024-07-012024-09-300001382821us-gaap:CostOfSalesMember2023-07-012023-09-300001382821us-gaap:CostOfSalesMember2024-01-012024-09-300001382821us-gaap:CostOfSalesMember2023-01-012023-09-300001382821us-gaap:OperatingExpenseMember2024-07-012024-09-300001382821us-gaap:OperatingExpenseMember2023-07-012023-09-300001382821us-gaap:OperatingExpenseMember2024-01-012024-09-300001382821us-gaap:OperatingExpenseMember2023-01-012023-09-300001382821srt:ScenarioForecastMember2025-01-012025-06-3000013828212020-05-112020-05-1100013828212022-05-232022-05-2300013828212024-07-242024-07-240001382821rdfn:OtherCommitmentsMember2024-09-300001382821us-gaap:TradeNamesMember2024-09-300001382821us-gaap:TradeNamesMember2023-12-310001382821us-gaap:DevelopedTechnologyRightsMembersrt:MinimumMember2024-09-300001382821us-gaap:DevelopedTechnologyRightsMember2024-09-300001382821us-gaap:DevelopedTechnologyRightsMember2023-12-310001382821us-gaap:CustomerRelationshipsMember2024-09-300001382821us-gaap:CustomerRelationshipsMember2023-12-310001382821rdfn:RealEstateServicesSegmentMember2024-09-300001382821rdfn:RealEstateServicesSegmentMember2023-12-310001382821rdfn:RentalsSegmentMember2024-09-300001382821rdfn:RentalsSegmentMember2023-12-310001382821rdfn:MortgageSegmentsMember2024-09-300001382821rdfn: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:A2004EquityIncentivePlanMember2024-09-300001382821rdfn:A2004EquityIncentivePlanMember2024-01-012024-09-300001382821rdfn:A2017EquityIncentivePlanMember2017-07-260001382821rdfn:A2017EquityIncentivePlanMember2024-01-012024-09-300001382821rdfn:A2017EquityIncentivePlanMembersrt:MinimumMember2024-01-012024-09-300001382821rdfn:A2017EquityIncentivePlanMembersrt:MaximumMember2024-01-012024-09-300001382821rdfn:A2017EquityIncentivePlanMember2024-09-300001382821rdfn:A2017EquityIncentivePlanMember2023-12-310001382821us-gaap:EmployeeStockMemberrdfn:A2017EmployeeStockPurchasePlanMember2017-07-270001382821us-gaap:EmployeeStockMemberrdfn:A2017EmployeeStockPurchasePlanMember2017-07-272017-07-270001382821us-gaap:EmployeeStockMemberrdfn:A2017EmployeeStockPurchasePlanMember2024-01-012024-09-300001382821rdfn:A2017EmployeeStockPurchasePlanMember2024-09-300001382821rdfn:A2017EmployeeStockPurchasePlanMember2023-12-3100013828212024-01-012024-03-310001382821us-gaap:RestrictedStockUnitsRSUMember2023-12-310001382821us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300001382821us-gaap:RestrictedStockUnitsRSUMember2024-09-300001382821us-gaap:PerformanceSharesMember2024-09-300001382821us-gaap:PerformanceSharesMember2024-01-012024-09-300001382821us-gaap:PerformanceSharesMembersrt:MinimumMember2024-01-012024-09-300001382821us-gaap:PerformanceSharesMembersrt:MaximumMember2024-01-012024-09-300001382821us-gaap:PerformanceSharesMemberrdfn:CurrentPeriodMember2024-07-012024-09-300001382821us-gaap:PerformanceSharesMemberrdfn:CurrentPeriodMember2023-07-012023-09-300001382821us-gaap:PerformanceSharesMemberrdfn:CurrentPeriodMember2024-01-012024-09-300001382821us-gaap:PerformanceSharesMemberrdfn:CurrentPeriodMember2023-01-012023-09-300001382821us-gaap:PerformanceSharesMemberrdfn:PriorPeriodsMember2024-07-012024-09-300001382821us-gaap:PerformanceSharesMemberrdfn:PriorPeriodsMember2023-07-012023-09-300001382821us-gaap:PerformanceSharesMemberrdfn:PriorPeriodsMember2024-01-012024-09-300001382821us-gaap:PerformanceSharesMemberrdfn:PriorPeriodsMember2023-01-012023-09-300001382821us-gaap:PerformanceSharesMember2024-07-012024-09-300001382821us-gaap:PerformanceSharesMember2023-07-012023-09-300001382821us-gaap:PerformanceSharesMember2023-01-012023-09-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2024-07-012024-09-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2023-07-012023-09-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-09-300001382821us-gaap:ResearchAndDevelopmentExpenseMember2023-01-012023-09-300001382821us-gaap:SellingAndMarketingExpenseMember2024-07-012024-09-300001382821us-gaap:SellingAndMarketingExpenseMember2023-07-012023-09-300001382821us-gaap:SellingAndMarketingExpenseMember2024-01-012024-09-300001382821us-gaap:SellingAndMarketingExpenseMember2023-01-012023-09-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2024-07-012024-09-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2023-07-012023-09-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2024-01-012024-09-300001382821us-gaap:GeneralAndAdministrativeExpenseMember2023-01-012023-09-300001382821us-gaap:SegmentContinuingOperationsMember2024-07-012024-09-300001382821us-gaap:SegmentContinuingOperationsMember2023-07-012023-09-300001382821us-gaap:SegmentContinuingOperationsMember2024-01-012024-09-300001382821us-gaap:SegmentContinuingOperationsMember2023-01-012023-09-300001382821us-gaap:SegmentDiscontinuedOperationsMember2024-07-012024-09-300001382821us-gaap:SegmentDiscontinuedOperationsMember2023-07-012023-09-300001382821us-gaap:SegmentDiscontinuedOperationsMember2024-01-012024-09-300001382821us-gaap:SegmentDiscontinuedOperationsMember2023-01-012023-09-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2024-07-012024-09-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2023-07-012023-09-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2024-01-012024-09-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Member2023-01-012023-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2024-07-012024-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2023-07-012023-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2024-01-012024-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Member2023-01-012023-09-300001382821us-gaap:ConvertiblePreferredStockMember2024-07-012024-09-300001382821us-gaap:ConvertiblePreferredStockMember2023-07-012023-09-300001382821us-gaap:ConvertiblePreferredStockMember2024-01-012024-09-300001382821us-gaap:ConvertiblePreferredStockMember2023-01-012023-09-300001382821us-gaap:EmployeeStockOptionMember2024-07-012024-09-300001382821us-gaap:EmployeeStockOptionMember2023-07-012023-09-300001382821us-gaap:EmployeeStockOptionMember2024-01-012024-09-300001382821us-gaap:EmployeeStockOptionMember2023-01-012023-09-300001382821us-gaap:RestrictedStockUnitsRSUMember2024-07-012024-09-300001382821us-gaap:RestrictedStockUnitsRSUMember2023-07-012023-09-300001382821us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-09-300001382821us-gaap:RestrictedStockUnitsRSUMember2023-01-012023-09-300001382821us-gaap:EmployeeStockMember2024-07-012024-09-300001382821us-gaap:EmployeeStockMember2023-07-012023-09-300001382821us-gaap:EmployeeStockMember2024-01-012024-09-300001382821us-gaap:EmployeeStockMember2023-01-012023-09-300001382821us-gaap:RestrictedStockUnitsRSUMemberrdfn:NonEmployeeDirectorsMember2024-01-012024-09-3000013828212019-09-300001382821us-gaap:DomesticCountryMember2023-12-310001382821us-gaap:StateAndLocalJurisdictionMember2023-12-310001382821us-gaap:ForeignCountryMember2023-12-310001382821rdfn:RentPathHoldingsMemberus-gaap:DomesticCountryMember2024-01-012024-03-310001382821rdfn:RentPathHoldingsMemberus-gaap:DomesticCountryMember2022-01-012022-12-310001382821rdfn:RentPathHoldingsMemberus-gaap:DomesticCountryMember2023-12-310001382821rdfn:RentPathHoldingsMemberus-gaap:DomesticCountryMember2022-12-310001382821rdfn:CityNationalBankMemberus-gaap:WarehouseAgreementBorrowingsMember2024-09-300001382821rdfn:OriginBankMemberus-gaap:WarehouseAgreementBorrowingsMember2024-09-300001382821rdfn:MTBankMemberus-gaap:WarehouseAgreementBorrowingsMember2024-09-300001382821rdfn:ProsperityBankMemberus-gaap:WarehouseAgreementBorrowingsMember2024-09-300001382821rdfn:TermLoanMemberus-gaap:SecuredDebtMember2024-09-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2024-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2024-09-300001382821us-gaap:WarehouseAgreementBorrowingsMember2024-09-300001382821rdfn:CityNationalBankMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821rdfn:OriginBankMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821rdfn:MTBankMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821rdfn:ProsperityBankMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821rdfn:RepublicBankTrustCompanyMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821rdfn:WellsFargoBankNAMemberus-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821us-gaap:WarehouseAgreementBorrowingsMember2023-12-310001382821rdfn:FirstLienTermLoanFacilityMemberus-gaap:LineOfCreditMember2023-10-200001382821rdfn:FirstLienTermLoanFacilityMemberus-gaap:LineOfCreditMember2024-04-012024-06-300001382821rdfn:FirstLienTermLoanFacilityMemberus-gaap:LineOfCreditMember2023-10-202023-10-200001382821rdfn:FirstLienTermLoanFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberrdfn:Period1Member2023-10-202023-10-200001382821rdfn:FirstLienTermLoanFacilityMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMemberrdfn:Period3Member2023-10-202023-10-200001382821rdfn:A0ConvertibleSeniorNotesDue2025Memberus-gaap:LineOfCreditMember2023-10-200001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:LineOfCreditMember2023-10-200001382821us-gaap:LineOfCreditMember2023-10-202023-10-200001382821rdfn:TermLoanMemberus-gaap:SecuredDebtMember2023-12-310001382821rdfn:A0ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2024-01-012024-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2024-01-012024-09-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2020-10-200001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2021-03-250001382821rdfn:A0ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2023-12-310001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2023-12-310001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Memberus-gaap:SeniorNotesMember2024-07-012024-09-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Memberus-gaap:SeniorNotesMember2023-07-012023-09-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Memberus-gaap:SeniorNotesMember2024-01-012024-09-300001382821rdfn:A1.75ConvertibleSeniorNotesdue2023Memberus-gaap:SeniorNotesMember2023-01-012023-09-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2024-07-012024-09-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2023-07-012023-09-300001382821rdfn:A0ConvertibleSeniorNotesDue2025Memberus-gaap:SeniorNotesMember2023-01-012023-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2024-07-012024-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2023-07-012023-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2023-01-012023-09-300001382821us-gaap:SeniorNotesMember2024-07-012024-09-300001382821us-gaap:SeniorNotesMember2023-07-012023-09-300001382821us-gaap:SeniorNotesMember2024-01-012024-09-300001382821us-gaap:SeniorNotesMember2023-01-012023-09-300001382821rdfn:ConvertibleSeniorNotesMemberus-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodOneMember2024-01-012024-09-300001382821rdfn:ConvertibleSeniorNotesMemberus-gaap:SeniorNotesMemberus-gaap:DebtInstrumentRedemptionPeriodTwoMember2024-01-012024-09-300001382821us-gaap:DebtInstrumentRedemptionPeriodTwoMember2024-01-012024-09-300001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:CallOptionMemberrdfn:CappedCallTransactionMembersrt:MinimumMember2021-03-252021-04-050001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMemberus-gaap:CallOptionMemberrdfn:CappedCallTransactionMembersrt:MaximumMember2021-03-252021-04-050001382821rdfn:A05ConvertibleSeniorNotesDue2027Memberus-gaap:SeniorNotesMember2021-03-252021-04-050001382821us-gaap:SubsequentEventMember2024-10-292024-10-290001382821rdfn:BridgetFreyMember2024-01-012024-09-300001382821rdfn:ChristianTaubmanMember2024-07-012024-09-300001382821rdfn:ChristianTaubmanMember2024-09-30

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 September 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 123,980,474 shares of common stock outstanding as of November 1, 2024.


Redfin Corporation

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

Table of Contents
PART I
Page
Item 1.
Item 2.
Item 3.
Item 4.
PART II
Item 1
Item 1A.
Item 5.
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, (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 and Part II, Item 1A of our quarterly report for the quarter ended March 31, 2024. 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)
September 30, 2024December 31, 2023
Assets
Current assets
Cash and cash equivalents$165,660 $149,759 
Restricted cash174 1,241 
Short-term investments— 41,952 
Accounts receivable, net of allowances for credit losses of $3,945 and $3,234
74,971 51,738 
Loans held for sale212,921 159,587 
Prepaid expenses30,531 33,296 
Other current assets20,514 7,472 
Total current assets504,771 445,045 
Property and equipment, net43,312 46,431 
Right-of-use assets, net26,275 31,763 
Mortgage servicing rights, at fair value2,534 32,171 
Long-term investments— 3,149 
Goodwill461,349 461,349 
Intangible assets, net104,127 123,284 
Other assets, noncurrent8,705 10,456 
Total assets$1,151,073 $1,153,648 
Liabilities, mezzanine equity, and stockholders' (deficit) equity
Current liabilities
Accounts payable$14,280 $10,507 
Accrued and other liabilities101,040 90,360 
Warehouse credit facilities208,817 151,964 
Lease liabilities13,347 15,609 
Total current liabilities337,484 268,440 
Lease liabilities, noncurrent22,853 29,084 
Convertible senior notes, net, noncurrent571,644 688,737 
Term loan243,646 124,416 
Deferred tax liabilities647 264 
Total liabilities1,176,274 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 September 30, 2024 and December 31, 2023
39,992 39,959 
Stockholders’ (deficit) equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 123,945,380 and 117,372,171 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively
124 117 
Additional paid-in capital886,592 826,146 
Accumulated other comprehensive loss(140)(182)
Accumulated deficit(951,769)(823,333)
Total stockholders’ (deficit) equity(65,193)2,748 
Total liabilities, mezzanine equity, and stockholders’ (deficit) equity$1,151,073 $1,153,648 

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 September 30,Nine Months Ended September 30,
2024202320242023
Revenue$278,015 $268,956 $798,697 $758,595 
Cost of revenue176,152 170,616 516,436 501,927 
Gross profit101,863 98,340 282,261 256,668 
Operating expenses
Technology and development40,332 44,392 128,976 139,196 
Marketing27,186 24,095 92,324 97,531 
General and administrative58,788 55,380 181,366 186,584 
Restructuring and reorganization2,509 — 4,732 7,159 
Total operating expenses128,815 123,867 407,398 430,470 
Loss from continuing operations(26,952)(25,527)(125,137)(173,802)
Interest income1,839 2,060 5,132 8,170 
Interest expense(8,537)(1,603)(19,497)(5,291)
Income tax expense12 (239)(375)(882)
Gain on extinguishment of convertible senior notes— 6,495 12,000 68,848 
Other expense, net(144)(158)(559)(537)
Net loss from continuing operations(33,782)(18,972)(128,436)(103,494)
Net loss from discontinued operations— — — (3,634)
Net loss$(33,782)$(18,972)$(128,436)$(107,128)
Dividends on convertible preferred stock(282)(335)(706)(858)
Net loss from continuing operations attributable to common stock—basic and diluted$(34,064)$(19,307)$(129,142)$(104,352)
Net loss attributable to common stock—basic and diluted$(34,064)$(19,307)$(129,142)$(107,986)
Net loss from continuing operations per share attributable to common stock—basic and diluted$(0.28)$(0.17)$(1.07)$(0.93)
Net loss attributable to common stock per share—basic and diluted$(0.28)$(0.17)$(1.07)$(0.96)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted122,876,102 114,592,679 120,553,264 112,141,342 
Net loss$(33,782)$(18,972)$(128,436)$(107,128)
Other comprehensive income
Foreign currency translation adjustments4 (15)2 (73)
Unrealized gain on available-for-sale debt securities
— 210 40 617 
Comprehensive loss$(33,778)$(18,777)$(128,394)$(106,584)

See Notes to the consolidated financial statements.

2
Table of Contents
Redfin Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(in thousands, unaudited)
Nine Months Ended September 30,
20242023
Operating Activities
Net loss
$(128,436)$(107,128)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization33,340 48,443 
Stock-based compensation53,942 55,382 
Amortization of debt discount and issuance costs2,280 2,873 
Non-cash lease expense9,046 12,909 
Impairment costs— 113 
Net gain on IRLCs, forward sales commitments, and loans held for sale(1,809)(1,767)
Change in fair value of mortgage servicing rights, net(742)1,065 
Gain on extinguishment of convertible senior notes(12,000)(68,848)
Other548 (2,013)
Change in assets and liabilities:
Accounts receivable, net(23,377)(238)
Inventory— 114,232 
Prepaid expenses and other assets(10,141)9,696 
Accounts payable3,802 177 
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent11,772 (19,346)
Lease liabilities(11,993)(14,864)
Origination of mortgage servicing rights(170)(699)
Proceeds from sale of mortgage servicing rights30,549 1,122 
Origination of loans held for sale(3,071,291)(2,798,337)
Proceeds from sale of loans originated as held for sale3,018,634 2,858,656 
Net cash (used in) provided by operating activities(96,046)91,428 
Investing activities
Purchases of property and equipment(8,984)(9,235)
Purchases of investments— (76,866)
Sales of investments39,225 124,681 
Maturities of investments6,395 59,383 
Net cash provided by investing activities36,636 97,963 
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans4,757 5,790 
Tax payments related to net share settlements on restricted stock units(1,574)(15,961)
Borrowings from warehouse credit facilities3,088,179 2,803,589 
Repayments to warehouse credit facilities(3,031,326)(2,861,779)
Principal payments under finance lease obligations(56)(73)
Repurchases of convertible senior notes(106,953)(212,401)
Repayments of convertible senior notes— (23,512)
Repayment of term loan principal(1,563)— 
Payments of debt issuance costs(2,222)— 
Proceeds from term loan125,000 — 
Net cash provided by (used in) financing activities74,242 (304,347)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash2 (73)
Net change in cash, cash equivalents, and restricted cash14,834 (115,029)
Cash, cash equivalents, and restricted cash:
Beginning of period(1)
151,000 242,246 
End of period(2)
$165,834 $127,217 
Supplemental disclosure of cash flow information
Cash paid for interest
$24,939 $13,540 
Non-cash transactions
Stock-based compensation capitalized in property and equipment3,327 3,173 

(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 September 30,
20242023
Continuing operations
Cash and cash equivalents$165,660 $125,803 
Restricted cash174 1,414 
Total165,834 127,217 
Discontinued operations
Cash and cash equivalents— — 
Restricted cash— — 
Total— — 
Total cash, cash equivalents, and restricted cash$165,834 $127,217 

See Notes to the consolidated financial statements.
3
Table of Contents
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, June 30, 202440,000 $39,981 121,743,620 $122 $865,263 $(917,987)$(144)$(52,746)
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— — — — — — — — 
Issuance of common stock pursuant to exercise of stock options— — 281,420 — 2,598 — — 2,598 
Issuance of common stock pursuant to settlement of restricted stock units— — 1,960,792 2 (2)— — — 
Common stock surrendered for employees' tax liability upon settlement of restricted stock units— — (71,092)— (633)— — (633)
Stock-based compensation— — — — 19,366 — — 19,366 
Other comprehensive income
— — — — — — 4 4 
Net loss— — — — — (33,782)— (33,782)
Balance, September 30, 2024
40,000 $39,992 123,945,380 $124 $886,592 $(951,769)$(140)$(65,193)
Balance, June 30, 202340,000 $39,936 113,934,673 $114 $791,302 $(781,463)$(452)$9,501 
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— — 15,836 — 123 — — 123 
Issuance of common stock pursuant to settlement of restricted stock units— — 1,761,678 2 (2)— — — 
Common stock surrendered for employees' tax liability upon settlement of restricted stock units— — (531,829)(1)(4,862)— — (4,863)
Stock-based compensation— — — — 19,769 — — 19,769 
Other comprehensive income
— — — — — — 195 195 
Net loss— — — — — (18,972)— (18,972)
Balance, September 30, 202340,000 $39,947 115,210,998 $115 $806,330 $(800,435)$(257)$5,753 
4
Table of Contents

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— 33 — — — — — — 
Issuance of common stock as dividend on convertible preferred stock— — 91,920 — — — — — 
Issuance of common stock pursuant to employee stock purchase program— — 386,301 — 1,975 — — 1,975 
Issuance of common stock pursuant to exercise of stock options— — 310,968 — 2,783 — — 2,783 
Issuance of common stock pursuant to settlement of restricted stock units— — 5,990,918 7 (7)— — — 
Common stock surrendered for employees' tax liability upon settlement of restricted stock units— — (206,898)— (1,574)— — (1,574)
Stock-based compensation— — — — 57,269 — — 57,269 
Other comprehensive income— — — — — — 42 42 
Net loss— — — — — (128,436)— (128,436)
Balance, September 30, 2024
40,000 $39,992 123,945,380 $124 $886,592 $(951,769)$(140)$(65,193)
Balance, December 31, 202240,000 $39,914 109,696,178 $110 $757,951 $(693,307)$(801)$63,953 
Issuance of convertible preferred stock, net— 33 — — — — — — 
Issuance of common stock as dividend on convertible preferred stock— — 91,920 — — — — — 
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— — 579,000 1 1,574 — — 1,575 
Issuance of common stock pursuant to settlement of restricted stock units— — 5,330,317 5 (5)— — — 
Common stock surrendered for employees' tax liability upon settlement of restricted stock units— — (1,637,120)(2)(15,959)— — (15,961)
Stock-based compensation— — — — 58,555 — — 58,555 
Other comprehensive income— — — — — — 544 544 
Net loss— — — — — (107,128)— (107,128)
Balance, September 30, 2023
40,000 $39,947 115,210,998 $115 $806,330 $(800,435)$(257)$5,753 

See Notes to the consolidated financial statements.
5
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:
6
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, 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 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 September 30, 2024, our statements of comprehensive loss, and statements of changes in mezzanine equity and stockholders’ (deficit) equity for the three and nine months ended September 30, 2024 and 2023, as well as our statements of cash flows for the nine months ended September 30, 2024 and 2023. The results for the three and nine months ended September 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—None applicable.

Recently Issued 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.

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
Index to Notes to Financial Statements
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 September 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 nine months ended September 30, 2023:
Three Months Ended September 30, 2023
Nine Months Ended September 30, 2023
Revenue$— $122,576 
Cost of revenue
— 124,422 
Gross profit
— (1,846)
Operating expenses
Technology and development
— 552 
Marketing
— 523 
General and administrative
— 638 
Restructuring and reorganization— 75 
Total operating expenses
— 1,788 
Loss from discontinued operations
— (3,634)
Interest income, interest expense, income tax expense, and other expense, net
— — 
Net loss from discontinued operations$— $(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 nine months ended September 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 itemNine Months Ended September 30, 2023
Cumulative amount recognized as of September 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
Index to Notes to Financial Statements
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 (loss) 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 September 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue
$175,136 $51,660 $35,621 $15,598 $— $278,015 
Cost of revenue126,421 12,366 30,214 7,151 — 176,152 
Gross profit48,715 39,294 5,407 8,447 — 101,863 
Operating expenses
Technology and development26,927 10,648 675 889 1,193 40,332 
Marketing12,907 13,600 667 12 — 27,186 
General and administrative18,263 24,074 5,885 1,215 9,351 58,788 
Restructuring and reorganization— — — — 2,509 2,509 
Total operating expenses58,097 48,322 7,227 2,116 13,053 128,815 
(Loss) income from continuing operations(9,382)(9,028)(1,820)6,331 (13,053)(26,952)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net38 100 (2,966)266 (4,268)(6,830)
Net (loss) income from continuing operations$(9,344)$(8,928)$(4,786)$6,597 $(17,321)$(33,782)
9
Index to Notes to Financial Statements
Three Months Ended September 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue
$177,750 $47,410 $32,923 $10,873 $— $268,956 
Cost of revenue123,684 10,824 29,629 6,479 — 170,616 
Gross profit54,066 36,586 3,294 4,394 — 98,340 
Operating expenses
Technology and development25,711 15,813 800 1,133 935 44,392 
Marketing10,785 12,245 1,088 20 (43)24,095 
General and administrative18,418 21,838 6,670 952 7,502 55,380 
Total operating expenses54,914 49,896 8,558 2,105 8,394 123,867 
(Loss) income from continuing operations
(848)(13,310)(5,264)2,289 (8,394)(25,527)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net
41 42 (73)207 6,338 6,555 
Net (loss) income from continuing operations
$(807)$(13,268)$(5,337)$2,496 $(2,056)$(18,972)

Nine Months Ended September 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue
$493,885 $152,105 $109,619 $43,088 $— $798,697 
Cost of revenue371,198 35,453 88,646 21,139 — 516,436 
Gross profit122,687 116,652 20,973 21,949 — 282,261 
Operating expenses
Technology and development84,354 36,577 2,031 2,686 3,328 128,976 
Marketing47,939 42,137 2,221 27 — 92,324 
General and administrative57,178 66,794 19,087 3,279 35,028 181,366 
Restructuring and reorganization— — — — 4,732 4,732 
Total operating expenses189,471 145,508 23,339 5,992 43,088 407,398 
(Loss) income from continuing operations(66,784)(28,856)(2,366)15,957 (43,088)(125,137)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net6 65 (2,962)690 (1,098)(3,299)
Net (loss) income from continuing operations$(66,778)$(28,791)$(5,328)$16,647 $(44,186)$(128,436)
10
Index to Notes to Financial Statements
Nine Months Ended September 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
Revenue(1)
$485,687 $135,636 $107,838 $29,434 $— $758,595 
Cost of revenue359,625 31,016 93,108 18,178 — 501,927 
Gross profit126,062 104,620 14,730 11,256 — 256,668 
Operating expenses
Technology and development82,650 48,081 2,177 3,475 2,813 139,196 
Marketing51,849 42,509 3,122 46 5 97,531 
General and administrative58,997 73,445 20,323 3,049 30,770 186,584 
Restructuring and reorganization— — — — 7,159 7,159 
Total operating expenses193,496 164,035 25,622 6,570 40,747 430,470 
(Loss) income from continuing operations
(67,434)(59,415)(10,892)4,686 (40,747)(173,802)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net
41 115 (224)475 69,901 70,308 
Net (loss) income from continuing operations
$(67,393)$(59,300)$(11,116)$5,161 $29,154 $(103,494)
(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:
InstrumentSeptember 30, 2024December 31, 2023
Forward sales commitments$384,797 $274,400 
IRLCs276,572 188,554 

11
Index to Notes to Financial Statements
The locations and amounts of gains (losses) recognized in income related to our derivatives were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
InstrumentClassification2024202320242023
Forward sales commitmentsRevenue$(792)$335 $1,144 $2,367 
IRLCsRevenue86 (1,567)(13)1,005 

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 September 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$114,617 $114,617 $— $— 
Total cash equivalents114,617 114,617 — — 
Loans held for sale212,921 — 212,921 — 
Other current assets
Forward sales commitments469 — 469 — 
IRLCs4,691 — — 4,691 
Total other current assets5,160 — 469 4,691 
Mortgage servicing rights, at fair value2,534 — — 2,534 
Total assets$335,232 $114,617 $213,390 $7,225 
Liabilities
Accrued liabilities
Forward sales commitments$1,755 $— $1,755 $— 
IRLCs252 — — 252 
Total liabilities$2,007 $— $1,755 $252 

12
Index to Notes to Financial Statements
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 $— $— 
Total cash equivalents115,276 115,276 — — 
Short-term investments
   U.S. treasury securities10,720 10,720 — — 
Agency bonds31,232 31,232 — — 
Total short-term investments41,952 41,952 — — 
Loans held for sale159,587 — 159,587 — 
Other current assets
IRLCs4,600 — — 4,600 
Total other current assets4,600 — — 4,600 
Mortgage servicing rights, at fair value32,171 — — 32,171