Redfin Corporation (NASDAQ:RDFN) today announced results for its third quarter ended September 30, 2024.

Third Quarter 2024

Third quarter revenue was $278.0 million, an increase of 3% compared to the third quarter of 2023. Gross profit was $101.9 million, an increase of 4% year-over-year. Real estate services gross profit was $48.7 million, a decrease of 10% year-over-year, and real estate services gross margin was 28%, compared to 30% in the third quarter of 2023.

Net loss was $33.8 million, compared to a net loss of $19.0 million in the third quarter of 2023. Net loss attributable to common stock was $34.1 million. Net loss per share attributable to common stock, diluted, was $0.28, compared to net loss per share, diluted, of $0.17 in the third quarter of 2023.

Adjusted EBITDA was $3.9 million, down from an adjusted EBITDA of $7.7 million in the third quarter of 2023.

"Redfin's third-quarter results were within our guidance range, and we're now forecasting fourth-quarter growth in market share and revenues," said Redfin CEO Glenn Kelman. "Already, shifting our real estate agents to a commissions-based model has improved close rates, with industry-leading attach rates for mortgage and title services. And now, the growth in our digital businesses and our reductions in headquarters costs will let us fund more demand-generation. With plans to hire hundreds of agents between now and next spring, we're emerging from a year of record low U.S. home sales ready to go on the attack."

Third Quarter Highlights

Third quarter market share was 0.76% of U.S. existing home sales by units, compared to 0.78% in the third quarter of 2023.
Average lead agents of 1,757, up 1 percent compared to the third quarter of 2023 and marking Redfin's second straight quarter of sequential agent growth.
Achieved a 27% mortgage attach rate in the third quarter of 2024, up from 22% in the third quarter of 2023.¹
Maintained momentum in loyalty sales, with 37% of sales coming from loyalty customers compared to 36% in the third quarter of 2023.
Announced the nationwide expansion of our Redfin Next agent pay plan and transitioned all existing agents to the plan on October 27. To date, Redfin has hired more than 500 agents to join the brokerage under Next.
Launched Redfin Teams nationwide, helping teams of up to five agents formally partner to expand their business and grow their career to a new level. More than 180 agents have joined the program since it launched in September, including over 50 who are new to the brokerage.
Extended Redfin Redesign's reach by partnering with five additional multiple listing services. The AI-powered home design tool is now available on more than 355,000 for-sale listings across the U.S. and to any U.S. homeowner who has claimed their home on Redfin.
Expanded Redfin's rental tools nationwide, which was announced on October 15. Property managers across the country can now use Redfin to list rental homes for free, connect with renters across Redfin's family of sites, and manage the application and renter screening process.
Supported agents and customers through the National Association of Realtors settlement changes by integrating a consumer-friendly fee agreement into our tour scheduling process and giving customers who commit to Redfin early a better deal through Sign & Save.

(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 21% in the third quarter of 2024, compared to 18% in the third quarter of 2023.

Business Outlook

The following forward-looking statements reflect Redfin's expectations as of November 7, 2024, and are subject to substantial uncertainty.

For the fourth quarter of 2024 we expect:

Total revenue between $237 million and $247 million, representing a year-over-year growth between 9% and 13% compared to the fourth quarter of 2023. Included within total revenue are real estate services revenue between $144 million and $150 million, rentals revenue of $51 million, mortgage revenue between $28 million and $32 million and other revenue between $13 million and $14 million.
Total net loss is expected to be between $32 million and $25 million, compared to net loss of $23 million in the fourth quarter of 2023. This guidance includes approximately $22 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $7 million in net interest expense. Adjusted EBITDA is expected to be between $1 million and $8 million. Furthermore, we expect to pay a final dividend of 20,427 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, each 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.

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 nine months ended September 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, and title insurance 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. 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 approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin-F

Redfin Corporation and Subsidiaries Consolidated Balance Sheets (in thousands, except share and per share amounts, unaudited)

	September 30, 2024			December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	165,660		$	149,759
Restricted cash		174			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 sale		212,921			159,587
Prepaid expenses		30,531			33,296
Other current assets		20,514			7,472
Total current assets		504,771			445,045
Property and equipment, net		43,312			46,431
Right-of-use assets, net		26,275			31,763
Mortgage servicing rights, at fair value		2,534			32,171
Long-term investments		—			3,149
Goodwill		461,349			461,349
Intangible assets, net		104,127			123,284
Other assets, noncurrent		8,705			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 liabilities		101,040			90,360
Warehouse credit facilities		208,817			151,964
Lease liabilities		13,347			15,609
Total current liabilities		337,484			268,440
Lease liabilities, noncurrent		22,853			29,084
Convertible senior notes, net, noncurrent		571,644			688,737
Term loan		243,646			124,416
Deferred tax liabilities		647			264
Total liabilities		1,176,274			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 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 capital		886,592			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

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,
	2024			2023			2024			2023
Revenue	$	278,015		$	268,956		$	798,697		$	758,595
Cost of revenue⁽¹⁾		176,152			170,616			516,436			501,927
Gross profit		101,863			98,340			282,261			256,668
Operating expenses
Technology and development⁽¹⁾		40,332			44,392			128,976			139,196
Marketing⁽¹⁾		27,186			24,095			92,324			97,531
General and administrative⁽¹⁾		58,788			55,380			181,366			186,584
Restructuring and reorganization		2,509			—			4,732			7,159
Total operating expenses		128,815			123,867			407,398			430,470
Loss from continuing operations		(26,952	)		(25,527	)		(125,137	)		(173,802	)
Interest income		1,839			2,060			5,132			8,170
Interest expense		(8,537	)		(1,603	)		(19,497	)		(5,291	)
Income tax expense		12			(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 diluted		122,876,102			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 adjustments		4			(15	)		2			(73	)
Unrealized gain on available-for-sale debt securities		—			210			40			617
Comprehensive loss	$	(33,778	)	$	(18,777	)	$	(128,394	)	$	(106,584	)

(1)

Includes stock-based compensation as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023			2024	2023
Cost of revenue	$	2,819	$	3,037	$	8,603	$	10,173
Technology and development		9,135		8,391		26,092		24,759
Marketing		1,131		1,337		3,911		3,836
General and administrative		5,217		6,035		15,336		16,380
Total	$	18,302	$	18,800	$	53,942	$	55,148

Redfin Corporation and Subsidiaries Consolidated Statements of Cash Flows (in thousands, unaudited)

	Nine Months Ended September 30,
	2024			2023
Operating Activities
Net loss	$	(128,436	)	$	(107,128	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		33,340			48,443
Stock-based compensation		53,942			55,382
Amortization of debt discount and issuance costs		2,280			2,873
Non-cash lease expense		9,046			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	)
Other		548			(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 payable		3,802			177
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent		11,772			(19,346	)
Lease liabilities		(11,993	)		(14,864	)
Origination of mortgage servicing rights		(170	)		(699	)
Proceeds from sale of mortgage servicing rights		30,549			1,122
Origination of loans held for sale		(3,071,291	)		(2,798,337	)
Proceeds from sale of loans originated as held for sale		3,018,634			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 investments		39,225			124,681
Maturities of investments		6,395			59,383
Net cash provided by investing activities		36,636			97,963
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans		4,757			5,790
Tax payments related to net share settlements on restricted stock units		(1,574	)		(15,961	)
Borrowings from warehouse credit facilities		3,088,179			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	)
Repayment of term loan principal		(1,563	)		—
Payments of debt issuance costs		(2,222	)		—
Proceeds from term loan		125,000			—
Net cash provided by (used in) financing activities		74,242			(304,347	)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash		2			(73	)
Net change in cash, cash equivalents, and restricted cash		14,834			(115,029	)
Cash, cash equivalents, and restricted cash:
Beginning of period		151,000			242,246
End of period	$	165,834		$	127,217

Redfin Corporation and Subsidiaries Supplemental Financial Information and Business Metrics (unaudited)

	Three Months Ended
	Sep. 30, 2024			Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022
Monthly average visitors (in thousands)		49,413			51,619			48,803			43,861			51,309			52,308			50,440			43,847
Real estate services transactions
Brokerage		13,324			14,178			10,039			10,152			13,075			13,716			10,301			12,743
Partner		3,440			3,395			2,691			3,186			4,351			3,952			3,187			2,742
Total		16,764			17,573			12,730			13,338			17,426			17,668			13,488			15,485
Real estate services revenue per transaction
Brokerage	$	12,363		$	12,545		$	12,433		$	12,248		$	12,704		$	12,376		$	11,556		$	10,914
Partner		3,025			2,859			2,367			2,684			2,677			2,756			2,592			2,611
Aggregate		10,447			10,674			10,305			9,963			10,200			10,224			9,438			9,444
U.S. market share by units		0.76	%		0.77	%		0.77	%		0.72	%		0.78	%		0.75	%		0.79	%		0.76	%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue		56	%		56	%		55	%		55	%		56	%		55	%		53	%		57	%
Average number of lead agents		1,757			1,719			1,658			1,692			1,744			1,792			1,876			2,022
Mortgage originations by dollars (in millions)	$	1,214		$	1,338		$	969		$	885		$	1,110		$	1,282		$	991		$	1,036
Mortgage originations by units (in ones)		2,900			3,192			2,365			2,293			2,786			3,131			2,444			2,631

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

	Three Months Ended September 30, 2024
	Real estate services			Rentals			Mortgage			Other		Corporate overhead			Total

	(in thousands)

Revenue	$	175,136		$	51,660		$	35,621		$	15,598	$	—		$	278,015
Cost of revenue		126,421			12,366			30,214			7,151		—			176,152
Gross profit		48,715			39,294			5,407			8,447		—			101,863
Operating expenses
Technology and development		26,927			10,648			675			889		1,193			40,332
Marketing		12,907			13,600			667			12		—			27,186
General and administrative		18,263			24,074			5,885			1,215		9,351			58,788
Restructuring and reorganization		—			—			—			—		2,509			2,509
Total operating expenses		58,097			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, net		38			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	)

	Three Months Ended September 30, 2024
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Net (loss) income from continuing operations	$	(9,344	)	$	(8,928	)	$	(4,786	)	$	6,597		$	(17,321	)	$	(33,782	)
Interest income⁽¹⁾		(10	)		(111	)		(3,392	)		(266	)		(1,451	)		(5,230	)
Interest expense⁽²⁾		—			—			6,208			—			5,565			11,773
Income tax expense		—			11			—			—			(23	)		(12	)
Depreciation and amortization		3,002			5,077			895			227			283			9,484
Stock-based compensation⁽³⁾		11,333			3,515			(89	)		588			2,955			18,302
Restructuring and reorganization⁽⁴⁾		—			—			—			—			2,509			2,509
Legal contingencies⁽⁵⁾		—			—			—			—			904			904
Adjusted EBITDA	$	4,981		$	(436	)	$	(1,164	)	$	7,146		$	(6,579	)	$	3,948

(1)		Interest income includes $3.4 million of interest income related to originated mortgage loans for the three months ended September 30, 2024.
(2)		Interest expense includes $3.2 million of interest expense related to our warehouse credit facilities for the three months ended September 30, 2024.
(3)		Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program.
(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 significant contingent liabilities resulting from litigation or other legal proceedings.

	Three Months Ended September 30, 2023
	Real estate services			Rentals			Mortgage			Other		Corporate overhead			Total

	(in thousands)

Revenue	$	177,750		$	47,410		$	32,923		$	10,873	$	—		$	268,956
Cost of revenue		123,684			10,824			29,629			6,479		—			170,616
Gross profit		54,066			36,586			3,294			4,394		—			98,340
Operating expenses
Technology and development		25,711			15,813			800			1,133		935			44,392
Marketing		10,785			12,245			1,088			20		(43	)		24,095
General and administrative		18,418			21,838			6,670			952		7,502			55,380
Restructuring and reorganization		—			—			—			—		—			—
Total operating expenses		54,914			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	)

	Three Months Ended September 30, 2023
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Net (loss) income from continuing operations	$	(807	)	$	(13,268	)	$	(5,337	)	$	2,496		$	(2,056	)	$	(18,972	)
Interest income⁽¹⁾		(41	)		(81	)		(2,886	)		(207	)		(1,732	)		(4,947	)
Interest expense⁽²⁾		—			—			3,132			—			1,598			4,730
Income tax expense		—			37			70			—			132			239
Depreciation and amortization		3,123			9,681			947			233			312			14,296
Stock-based compensation⁽³⁾		11,151			4,255			473			574			2,347			18,800
Gain on extinguishment of convertible senior notes		—			—			—			—			(6,495	)		(6,495	)
Adjusted EBITDA	$	13,426		$	624		$	(3,601	)	$	3,096		$	(5,894	)	$	7,651

(1)		Interest income includes $2.9 million of interest income related to originated mortgage loans for the three months ended September 30, 2023.
(2)		Interest expense includes $3.1 million of interest expense related to our warehouse credit facilities for the three months ended September 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.

	Nine Months Ended September 30, 2024
	Real estate services			Rentals			Mortgage			Other		Corporate overhead			Total

	(in thousands)

Revenue	$	493,885		$	152,105		$	109,619		$	43,088	$	—		$	798,697
Cost of revenue		371,198			35,453			88,646			21,139		—			516,436
Gross profit		122,687			116,652			20,973			21,949		—			282,261
Operating expenses
Technology and development		84,354			36,577			2,031			2,686		3,328			128,976
Marketing		47,939			42,137			2,221			27		—			92,324
General and administrative		57,178			66,794			19,087			3,279		35,028			181,366
Restructuring and reorganization		—			—			—			—		4,732			4,732
Total operating expenses		189,471			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, net		6			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	)

	Nine Months Ended September 30, 2024
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Net (loss) income from continuing operations	$	(66,778	)	$	(28,791	)	$	(5,328	)	$	16,647		$	(44,186	)	$	(128,436	)
Interest income⁽¹⁾		(40	)		(233	)		(8,416	)		(690	)		(4,169	)		(13,548	)
Interest expense⁽²⁾		—			—			11,246			—			16,522			27,768
Income tax expense		—			109			—			—			266			375
Depreciation and amortization		9,302			19,888			2,779			667			704			33,340
Stock-based compensation⁽³⁾		34,246			9,978			663			1,688			7,367			53,942
Restructuring and reorganization⁽⁴⁾		—			—			—			—			4,732			4,732
Gain on extinguishment of convertible senior notes		—			—			—			—			(12,000	)		(12,000	)
Legal contingencies⁽⁵⁾		—			—			—			—			10,154			10,154
Adjusted EBITDA	$	(23,270	)	$	951		$	944		$	18,312		$	(20,610	)	$	(23,673	)

(1)		Interest income includes $8.4 million of interest income related to originated mortgage loans for the nine months ended September 30, 2024.
(2)		Interest expense includes $8.3 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 2024.
(3)		Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program.
(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 significant contingent liabilities resulting from litigation or other legal proceedings.

	Nine Months Ended September 30, 2023
	Real estate services			Rentals			Mortgage			Other		Corporate overhead			Total

	(in thousands)

Revenue⁽¹⁾	$	485,687		$	135,636		$	107,838		$	29,434	$	—		$	758,595
Cost of revenue		359,625			31,016			93,108			18,178		—			501,927
Gross profit		126,062			104,620			14,730			11,256		—			256,668
Operating expenses
Technology and development		82,650			48,081			2,177			3,475		2,813			139,196
Marketing		51,849			42,509			3,122			46		5			97,531
General and administrative		58,997			73,445			20,323			3,049		30,770			186,584
Restructuring and reorganization		—			—			—			—		7,159			7,159
Total operating expenses		193,496			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 $1.2 million from providing services to our discontinued properties segment.

	Nine Months Ended September 30, 2023
	Real estate services			Rentals			Mortgage			Other			Corporate overhead			Total

	(in thousands)

Net (loss) income from continuing operations	$	(67,393	)	$	(59,300	)	$	(11,116	)	$	5,161		$	29,154		$	(103,494	)
Interest income⁽¹⁾		(41	)		(238	)		(9,062	)		(475	)		(7,400	)		(17,216	)
Interest expense⁽²⁾		—			—			9,737			—			5,285			15,022
Income tax expense		—			123			222			—			537			882
Depreciation and amortization		12,819			30,068			2,929			756			1,745			48,317
Stock-based compensation⁽³⁾		33,041			11,580			2,554			1,696			6,277			55,148
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		—			—			—			—			(68,848	)		(68,848	)
Adjusted EBITDA	$	(21,574	)	$	(17,767	)	$	(4,736	)	$	7,138		$	(25,970	)	$	(62,909	)

(1)		Interest income includes $9.0 million of interest income related to originated mortgage loans for the nine months ended September 30, 2023.
(2)		Interest expense includes $9.7 million of interest expense related to our warehouse credit facilities for the nine months ended September 30, 2023.
(3)		Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program.
(4)		Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.
(5)		Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.
(6)		Impairment consists of an impairment loss due to subleasing one of our operating leases.

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

	Three months ending December 31, 2024
	Low		High
Net loss	(32	)	(25	)
Net interest expense	6		6
Depreciation and amortization	9		9
Stock-based compensation	18		18
Adjusted EBITDA	1		8

Note: Figures may not sum due to rounding.

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Redfin Reports Third Quarter 2024 Financial Results