Redfin Reports Second Quarter 2024 Financial Results

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

Second Quarter 2024

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

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

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

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

Second Quarter Highlights

•Secondquarter market share was 0.77% of U.S. existing home sales by units, compared to 0.75%in the second quarter of 2023.

•Redfin’s mobile apps and website reached nearly 52 million average monthly users, compared to 52 millionthe second quarter of 2023.

•Achieved a 28% mortgage attach rate in the second quarter of 2024, up 4 points from the second quarter of 2023.1

•Sequential step-up in loyalty sales, with 37% of sales coming from loyalty customers compared to 34% in the first quarter of 2024.

•Announced our Redfin Next agent pay plan will expand to 25 additional markets in August, bringing the program to markets accounting for approximately 74% of brokerage revenues. To date, Redfin has signed more than 200 top producing agents to join the brokerage under Redfin Next.

•Launched Redfin Redesign for homeowners, helping those who have claimed their home on Redfin use AI to redesign their spaces. We also partnered with five additional MLSs to make Redfin Redesign available for more than 240,000 for-sale listings.

•Launched products to help property managers connect with renters:

1

◦Self-service rental tools on Redfin.com that allow homeowners, investors, property managers and agents to list properties for rent on Redfin.

◦Rent.com photo optimization feature that uses machine learning to arrange rental listing photos to drive the most renter engagement.

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

Business Outlook

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

For the third quarter of 2024 we expect:

•Total revenue between $273 million and $285 million, representing a year-over-year growth between 1% and 6% compared to the third quarter of 2023. Included within total revenue are real estate services revenue between $171 million and $179 million, rentals revenue between $50 million and $51 million, mortgage revenue between $36 million and $39 million and other revenue between $15 million and $16 million.

•Total net loss is expected to be between $30 million and $22 million, compared to net loss of $19 million in the third quarter of 2023. This guidance includes approximately $29 million in total marketing expenses, $18 million of stock-based compensation, $9 million in depreciation and amortization, and $6 million in net interest expense. Adjusted EBITDA is expected to be between $4 million and $12 million. Furthermore, we expect to pay a quarterly dividend of 30,640 shares of common stock to our preferred stockholder.

Conference Call

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

Forward-Looking Statements

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

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Non-GAAP Financial Measure

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

About Redfin

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

Redfin-F

Contacts

Investor Relations

Meg Nunnally

ir@redfin.com

Public Relations

Mariam Sughayer

press@redfin.com

3

Redfin Corporation and Subsidiaries

Consolidated Balance Sheets

(in thousands, except share and per share amounts, unaudited)

	June 30, 2024		December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	201,812	$	149,759
Restricted cash	756		1,241
Short-term investments	—		41,952
Accounts receivable, net of allowances for credit losses of $4,677 and $3,234	75,522		51,738
Loans held for sale	208,460		159,587
Prepaid expenses	28,002		33,296
Other current assets	9,872		7,472
Total current assets	524,424		445,045
Property and equipment, net	45,303		46,431
Right-of-use assets, net	28,389		31,763
Mortgage servicing rights, at fair value	2,695		32,171
Long-term investments	—		3,149
Goodwill	461,349		461,349
Intangible assets, net	108,832		123,284
Other assets, noncurrent	10,492		10,456
Total assets	$	1,181,484	$	1,153,648
Liabilities, mezzanine equity, and stockholders' (deficit) equity
Current liabilities
Accounts payable	$	11,612	$	10,507
Accrued and other liabilities	125,082		90,360
Warehouse credit facilities	202,559		151,964
Lease liabilities	14,123		15,609
Total current liabilities	353,376		268,440
Lease liabilities, noncurrent	25,193		29,084
Convertible senior notes, net, noncurrent	571,077		688,737
Term loan	243,961		124,416
Deferred tax liabilities	642		264
Total liabilities	1,194,249		1,110,941
Series A convertible preferred stock—par value $0.001 per share; 10,000,000 shares authorized; 40,000 shares issued and outstanding at June 30, 2024 and December 31, 2023	39,981		39,959
Stockholders’ (deficit) equity
Common stock—par value $0.001 per share; 500,000,000 shares authorized; 121,743,620 and 117,372,171 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively	122		117
Additional paid-in capital	865,263		826,146
Accumulated other comprehensive loss	(144)		(182)
Accumulated deficit	(917,987)		(823,333)
Total stockholders’ (deficit) equity	(52,746)		2,748
Total liabilities, mezzanine equity, and stockholders’ (deficit) equity	$	1,181,484	$	1,153,648

4

Redfin Corporation and Subsidiaries

Consolidated Statements of Comprehensive Loss

(in thousands, except share and per share amounts, unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Revenue	$	295,203	$	275,556	$	520,682	$	489,639
Cost of revenue(1)	185,617		175,366		340,284		331,311
Gross profit	109,586		100,190		180,398		158,328
Operating expenses
Technology and development(1)	42,215		47,141		88,644		94,804
Marketing(1)	40,260		33,033		65,138		73,436
General and administrative(1)	54,705		61,765		122,578		131,204
Restructuring and reorganization	1,334		6,106		2,223		7,159
Total operating expenses	138,514		148,045		278,583		306,603
Loss from continuing operations	(28,928)		(47,855)		(98,185)		(148,275)
Interest income	1,461		2,704		3,293		6,110
Interest expense	(6,086)		(1,766)		(10,960)		(3,688)
Income tax expense	(559)		(233)		(387)		(643)
Gain on extinguishment of convertible senior notes	6,314		20,083		12,000		62,353
Other expense, net	(82)		(145)		(415)		(379)
Net loss from continuing operations	(27,880)		(27,212)		(94,654)		(84,522)
Net loss from discontinued operations	—		(146)		—		(3,634)
Net loss	$	(27,880)	$	(27,358)	$	(94,654)	$	(88,156)
Dividends on convertible preferred stock	(191)		(297)		(424)		(523)
Net loss from continuing operations attributable to common stock—basic and diluted	$	(28,071)	$	(27,509)	$	(95,078)	$	(85,045)
Net loss attributable to common stock—basic and diluted	$	(28,071)	$	(27,655)	$	(95,078)	$	(88,679)
Net loss from continuing operations per share attributable to common stock—basic and diluted	$	(0.23)	$	(0.25)	$	(0.80)	$	(0.77)
Net loss attributable to common stock per share—basic and diluted	$	(0.23)	$	(0.25)	$	(0.80)	$	(0.80)
Weighted-average shares to compute net loss per share attributable to common stock—basic and diluted	120,393,897		111,678,417		119,379,082		110,895,358
Net loss	$	(27,880)	$	(27,358)	$	(94,654)	$	(88,156)
Other comprehensive income (loss)
Foreign currency translation adjustments	1		—		(2)		(58)
Unrealized (loss) gain on available-for-sale debt securities	—		(17)		40		407
Comprehensive loss	$	(27,879)	$	(27,375)	$	(94,616)	$	(87,807)

(1) Includes stock-based compensation as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cost of revenue	$	3,045	$	3,001	$	5,784	$	7,136
Technology and development	8,718		8,241		16,957		16,368
Marketing	1,349		1,254		2,780		2,499
General and administrative	5,119		5,025		10,119		10,345
Total	$	18,231	$	17,521	$	35,640	$	36,348

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Redfin Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands, unaudited)

	Six Months Ended June 30,
	2024		2023
Operating Activities
Net loss	$	(94,654)	$	(88,156)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	23,855		34,146
Stock-based compensation	35,640		36,582
Amortization of debt discount and issuance costs	1,372		2,029
Non-cash lease expense	6,164		9,578
Impairment costs	—		113
Net gain on IRLCs, forward sales commitments, and loans held for sale	(2,196)		(4,565)
Change in fair value of mortgage servicing rights, net	(944)		599
Gain on extinguishment of convertible senior notes	(12,000)		(62,353)
Other	380		(1,794)
Change in assets and liabilities:
Accounts receivable, net	(23,928)		(14,069)
Inventory	—		114,232
Prepaid expenses and other assets	2,100		8,868
Accounts payable	1,135		2,812
Accrued and other liabilities, deferred tax liabilities, and payroll tax liabilities, noncurrent	35,360		(4,522)
Lease liabilities	(8,116)		(10,790)
Origination of mortgage servicing rights	(84)		(579)
Proceeds from sale of mortgage servicing rights	30,503		738
Origination of loans held for sale	(1,989,240)		(1,922,690)
Proceeds from sale of loans originated as held for sale	1,940,725		1,888,706
Net cash used in operating activities	(53,928)		(11,115)
Investing activities
Purchases of property and equipment	(6,795)		(6,213)
Purchases of investments	—		(76,866)
Sales of investments	39,225		65,099
Maturities of investments	6,395		59,383
Net cash provided by investing activities	38,825		41,403
Financing activities
Proceeds from the issuance of common stock pursuant to employee equity plans	2,158		5,665
Tax payments related to net share settlements on restricted stock units	(940)		(11,096)
Borrowings from warehouse credit facilities	1,987,822		1,920,487
Repayments to warehouse credit facilities	(1,937,227)		(1,883,196)
Principal payments under finance lease obligations	(46)		(53)
Repurchases of convertible senior notes	(106,953)		(183,019)
Repayment of term loan principal	(938)		—
Payments of debt issuance costs	(2,203)		—
Proceeds from term loan	125,000		—
Net cash provided by (used in) financing activities	66,673		(151,212)
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(2)		(58)
Net change in cash, cash equivalents, and restricted cash	51,568		(120,982)
Cash, cash equivalents, and restricted cash:
Beginning of period	151,000		242,246
End of period	$	202,568	$	121,264

6

Redfin Corporation and Subsidiaries

Supplemental Financial Information and Business Metrics

(unaudited)

	Three Months Ended
	Jun. 30, 2024			Mar. 31, 2024			Dec. 31, 2023			Sep. 30, 2023			Jun. 30, 2023			Mar. 31, 2023			Dec. 31, 2022			Sep. 30, 2022
Monthly average visitors (in thousands)	51,619			48,803			43,861			51,309			52,308			50,440			43,847			50,785
Real estate services transactions
Brokerage	14,178			10,039			10,152			13,075			13,716			10,301			12,743			18,245
Partner	3,395			2,691			3,186			4,351			3,952			3,187			2,742			3,507
Total	17,573			12,730			13,338			17,426			17,668			13,488			15,485			21,752
Real estate services revenue per transaction
Brokerage	$	12,545		$	12,433		$	12,248		$	12,704		$	12,376		$	11,556		$	10,914		$	11,103
Partner	2,859			2,367			2,684			2,677			2,756			2,592			2,611			2,556
Aggregate	10,674			10,305			9,963			10,200			10,224			9,438			9,444			9,725
U.S. market share by units	0.77		%	0.77		%	0.72		%	0.78		%	0.75		%	0.79		%	0.76		%	0.80		%
Revenue from top-10 Redfin markets as a percentage of real estate services revenue	56		%	55		%	55		%	56		%	55		%	53		%	57		%	58		%
Average number of lead agents	1,719			1,658			1,692			1,744			1,792			1,876			2,022			2,293
Mortgage originations by dollars (in millions)	$	1,338		$	969		$	885		$	1,110		$	1,282		$	991		$	1,036		$	1,557
Mortgage originations by units (in ones)	3,192			2,365			2,293			2,786			3,131			2,444			2,631			3,720

7

Redfin Corporation and Subsidiaries

Supplemental Financial Information

(unaudited, in thousands)

	Three Months Ended June 30, 2024
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
	(in thousands)
Revenue	$	187,569	$	50,927	$	40,179	$	16,528	$	—	$	295,203
Cost of revenue	133,863		11,630		32,528		7,596		—		185,617
Gross profit	53,706		39,297		7,651		8,932		—		109,586
Operating expenses
Technology and development	28,920		10,417		700		965		1,213		42,215
Marketing	23,855		15,749		648		8		—		40,260
General and administrative	19,140		20,242		6,519		910		7,894		54,705
Restructuring and reorganization	—		—		—		—		1,334		1,334
Total operating expenses	71,915		46,408		7,867		1,883		10,441		138,514
(Loss) income from continuing operations	(18,209)		(7,111)		(216)		7,049		(10,441)		(28,928)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	14		(42)		1		180		895		1,048
Net (loss) income from continuing operations	$	(18,195)	$	(7,153)	$	(215)	$	7,229	$	(9,546)	$	(27,880)

	Three Months Ended June 30, 2024
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
	(in thousands)
Net (loss) income from continuing operations	$	(18,195)	$	(7,153)	$	(215)	$	7,229	$	(9,546)	$	(27,880)
Interest income(1)	(14)		(51)		(2,990)		(180)		(1,217)		(4,452)
Interest expense(2)	—		—		2,953		—		6,084		9,037
Income tax expense	—		38		—		—		521		559
Depreciation and amortization	3,116		4,972		920		242		207		9,457
Stock-based compensation(3)	11,525		3,125		476		600		2,505		18,231
Restructuring and reorganization(4)	—		—		—		—		1,334		1,334
Gain on extinguishment of convertible senior notes	—		—		—		—		(6,314)		(6,314)
Adjusted EBITDA	$	(3,568)	$	931	$	1,144	$	7,891	$	(6,426)	$	(28)

(1) Interest income includes $3.0 million of interest income related to originated mortgage loans for the three months ended June 30, 2024.

(2) Interest expense includes $3.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2024.

(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.

(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.

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	Three Months Ended June 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
	(in thousands)
Revenue(1)	$	180,641	$	45,356	$	38,426	$	11,133	$	—	$	275,556
Cost of revenue	124,447		10,427		34,266		6,226		—		175,366
Gross profit	56,194		34,929		4,160		4,907		—		100,190
Operating expenses
Technology and development	28,044		16,304		734		1,118		941		47,141
Marketing	16,004		15,938		1,054		16		21		33,033
General and administrative	20,961		25,305		6,724		1,044		7,731		61,765
Restructuring and reorganization	—		—		—		—		6,106		6,106
Total operating expenses	65,009		57,547		8,512		2,178		14,799		148,045
(Loss) income from continuing operations	(8,815)		(22,618)		(4,352)		2,729		(14,799)		(47,855)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	—		28		(91)		153		20,553		20,643
Net (loss) income from continuing operations	$	(8,815)	$	(22,590)	$	(4,443)	$	2,882	$	5,754	$	(27,212)

(1) Included in revenue is $0.1 million from providing services to our discontinued properties segment.

	Three Months Ended June 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
	(in thousands)
Net (loss) income from continuing operations	$	(8,815)	$	(22,590)	$	(4,443)	$	2,882	$	5,754	$	(27,212)
Interest income(1)	—		(77)		(3,686)		(153)		(2,467)		(6,383)
Interest expense(2)	—		—		3,990		—		1,766		5,756
Income tax expense	—		43		83		—		107		233
Depreciation and amortization	5,264		10,235		994		307		329		17,129
Stock-based compensation(3)	12,297		3,709		823		561		131		17,521
Acquisition-related costs(4)	—		—		—		—		8		8
Restructuring and reorganization(5)	—		—		—		—		6,106		6,106
Gain on extinguishment of convertible senior notes	—		—		—		—		(20,083)		(20,083)
Adjusted EBITDA	$	8,746	$	(8,680)	$	(2,239)	$	3,597	$	(8,349)	$	(6,925)

(1) Interest income includes $3.7 million of interest income related to originated mortgage loans for the three months ended June 30, 2023.

(2) Interest expense includes $4.0 million of interest expense related to our warehouse credit facilities for the three months ended June 30, 2023.

(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.

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	Six Months Ended June 30, 2024
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
	(in thousands)
Revenue	$	318,749	$	100,445	$	73,998	$	27,490	$	—	$	520,682
Cost of revenue	244,777		23,087		58,432		13,988		—		340,284
Gross profit	73,972		77,358		15,566		13,502		—		180,398
Operating expenses
Technology and development	57,427		25,929		1,356		1,797		2,135		88,644
Marketing	35,032		28,537		1,554		15		—		65,138
General and administrative	38,915		42,720		13,202		2,064		25,677		122,578
Restructuring and reorganization	—		—		—		—		2,223		2,223
Total operating expenses	131,374		97,186		16,112		3,876		30,035		278,583
(Loss) income from continuing operations	(57,402)		(19,828)		(546)		9,626		(30,035)		(98,185)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	(32)		(35)		4		424		3,170		3,531
Net (loss) income from continuing operations	$	(57,434)	$	(19,863)	$	(542)	$	10,050	$	(26,865)	$	(94,654)

	Six Months Ended June 30, 2024
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
	(in thousands)
Net (loss) income from continuing operations	$	(57,434)	$	(19,863)	$	(542)	$	10,050	$	(26,865)	$	(94,654)
Interest income(1)	(30)		(122)		(5,024)		(424)		(2,718)		(8,318)
Interest expense(2)	—		—		5,038		—		10,957		15,995
Income tax expense	—		98		—		—		289		387
Depreciation and amortization	6,300		14,811		1,884		440		420		23,855
Stock-based compensation(3)	22,913		6,463		752		1,100		4,412		35,640
Restructuring and reorganization(4)	—		—		—		—		2,223		2,223
Gain on extinguishment of convertible senior notes	—		—		—		—		(12,000)		(12,000)
Legal contingencies(5)	—		—		—		—		9,250		9,250
Adjusted EBITDA	$	(28,251)	$	1,387	$	2,108	$	11,166	$	(14,032)	$	(27,622)

(1) Interest income includes $5.0 million of interest income related to originated mortgage loans for the six months ended June 30, 2024.

(2) Interest expense includes $5.0 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2024.

(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.

(4) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.

(5) Legal contingencies includes expenses related to material contingent liabilities resulting from litigation or other legal proceedings.

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	Six Months Ended June 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
	(in thousands)
Revenue(1)	$	307,937	$	88,226	$	74,915	$	18,561	$	—	$	489,639
Cost of revenue	235,941		20,192		63,479		11,699		—		331,311
Gross profit	71,996		68,034		11,436		6,862		—		158,328
Operating expenses
Technology and development	56,939		32,268		1,377		2,342		1,878		94,804
Marketing	41,064		30,264		2,034		26		48		73,436
General and administrative	40,579		51,607		13,653		2,097		23,268		131,204
Restructuring and reorganization	—		—		—		—		7,159		7,159
Total operating expenses	138,582		114,139		17,064		4,465		32,353		306,603
(Loss) income from continuing operations	(66,586)		(46,105)		(5,628)		2,397		(32,353)		(148,275)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net	—		73		(151)		268		63,563		63,753
Net (loss) income from continuing operations	$	(66,586)	$	(46,032)	$	(5,779)	$	2,665	$	31,210	$	(84,522)

(1) Included in revenue is $1.2 million from providing services to our discontinued properties segment.

	Six Months Ended June 30, 2023
	Real estate services		Rentals		Mortgage		Other		Corporate overhead		Total
	(in thousands)
Net (loss) income from continuing operations	$	(66,586)	$	(46,032)	$	(5,779)	$	2,665	$	31,210	$	(84,522)
Interest income(1)	—		(157)		(6,176)		(268)		(5,668)		(12,269)
Interest expense(2)	—		—		6,605		—		3,687		10,292
Income tax expense	—		86		151		—		406		643
Depreciation and amortization	9,696		20,387		1,982		523		1,432		34,020
Stock-based compensation(3)	21,890		7,325		2,081		1,122		3,930		36,348
Acquisition-related costs(4)	—		—		—		—		8		8
Restructuring and reorganization(5)	—		—		—		—		7,159		7,159
Impairment(6)	—		—		—		—		113		113
Gain on extinguishment of convertible senior notes	—		—		—		—		(62,353)		(62,353)
Adjusted EBITDA	$	(35,000)	$	(18,391)	$	(1,136)	$	4,042	$	(20,076)	$	(70,561)

(1) Interest income includes $6.2 million of interest income related to originated mortgage loans for the six months ended June 30, 2023.

(2) Interest expense includes $6.6 million of interest expense related to our warehouse credit facilities for the six months ended June 30, 2023.

(3) Stock-based compensation consists of expenses related to restricted stock units and our employee stock purchase program. See Note 11 to our consolidated financial statements for more information.

(4) Acquisition-related costs consist of fees for external advisory, legal, and other professional services incurred in connection with our acquisition of other companies.

(5) Restructuring and reorganization expenses primarily consist of personnel-related costs associated with employee terminations, furloughs, or retention due to the restructuring and reorganization activities.

(6) Impairment consists of an impairment loss due to subleasing one of our operating leases.

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Reconciliation of Adjusted EBITDA Guidance to Net Loss Guidance

(unaudited, in millions)

	Three months ending September 30, 2024
	Low	High
Net loss	(30)	(22)
Net interest expense	6	6
Depreciation and amortization	9	9
Stock-based compensation	18	18
Adjusted EBITDA	4	12

Note: Figures may not sum due to rounding.

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