Redfin (RDFN) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue grew 12% year-over-year to $244 million, marking the fourth consecutive quarter of growth, with real estate services and rentals leading segment gains.

• Net loss for Q4 was $36 million, with adjusted EBITDA loss improving to $3 million from a $13 million loss a year ago.

• Agent headcount rose 25% in six months, with the Redfin Next pay plan launched nationwide and a 25% increase in lead agent census to over 2,200.

• A $100 million upfront payment from a new rentals partnership with Zillow bolstered the balance sheet and will fund a 38% increase in 2025 advertising.

• Redfin remains the #1 brokerage website, with 7x the traffic of its next closest competitor.

Financial highlights

• Q4 gross profit was $82 million, up 12% year-over-year, with gross margin steady at 34%.

• Net loss per share for Q4 was $0.29, compared to $0.20 a year ago.

• Real estate services revenue was $149 million, up 12% year-over-year; brokerage revenue rose 13% on a 13% increase in transactions.

• Rentals segment posted $52 million in revenue (up 5%), mortgage $30 million (up 15%), title $9 million (up 58%), and monetization $4 million (up 9%).

• Title segment generated $2 million in net income, up from a $500,000 loss; monetization segment net income was $3 million.

Outlook and guidance

• Q1 2025 revenue expected between $214 million and $225 million, representing a year-over-year decline of 5% to flat.

• Real estate services gross margin expected to rise to 17–18%, up 150–290 basis points year-over-year.

• Q1 marketing expenses projected at $40 million, up $15 million year-over-year, with no similar increases expected for the rest of 2025.

• Q1 net loss expected between $94 million and $83 million; adjusted EBITDA loss between $39 million and $32 million.

• Management expects significant adjusted EBITDA profitability for full-year 2025.