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美國
證券交易委員會
華盛頓特區 20549
表格 10-Q
（標記一）

☒ 根據1934年證券交易法第13或15(d)節的季度報告
截至季度結束日期的財務報告2024年9月30日
or

☐ 根據1934年證券交易法第13或15(d)節的轉型報告書
過渡期從___到___
佣金文件號 001-38160
Redfin公司
(根據其章程規定的註冊人準確名稱)

特拉華州
74-3064240
（設立或組織的其他管轄區域）
（納稅人識別號碼）
1099 Stewart Street
600室
西雅圖
大單
98101
(主要領導機構的地址)
(郵政編碼)
(206)
576-8333
公司電話號碼，包括區號
（前名稱、地址及財政年度，如果自上次報告以來有更改）

根據法案第12（b）條註冊的證券：
每一類的名稱交易代碼在其上註冊的交易所的名稱
普通股，每股面值0.001美元redfin納斯達克全球精選市場

請在檢查標記處註明註冊人（1）是否已在證券交易法第13或15（d）條所規定的過去12個月（或註冊人需要提交此類報告的較短期間）內提交了所有必須提交的報告，並且（2）自過去90天以來一直受到此類提交要求的限制。
☒
Yes
☐
 否

在檢查標記中表明註冊人是否已經在過去的12個月內（或者爲註冊人需要提交這些文件的較短期間）根據S-T法規405規定，遞交了每個互動數據文件。
☒
Yes
☐
 否

請勾選以下選項，以表明註冊公司是否爲大型快速報告公司、加速報告公司、非加速報告公司或小型報告公司。請參閱《交易所法案》第12b-2條中「大型快速彙報公司」、「加速彙報公司」和「小型報告公司」的定義。(選擇一個):
大型加速報告人
☒
加速文件提交人
☐
非加速股票交易所申報人
☐
較小的報告公司
☐
新興成長公司
☐

如果是新興成長型公司，請在複選框中打勾，以確定註冊人是否選擇不使用在1934年證券交易法第13(a)條項下提供的任何新的或修訂的財務會計準準則的延長過渡期。
☐

用複選標記表明註冊人是否爲空殼公司（定義見《交易法》第12b-2條）。
☐
是的
☒
沒有

截至2024年5月17日，申報人共有 123,980,474 2024年11月1日現有普通股股份


Redfin公司

第10-Q表的季度報告
2024年9月30日季度結束

目錄
第一部分
項目1。
事項二
第3項。
事項4。
第II部分
項目1
項目1A。
項目5。
項目6。


根據本季度報告中的用語，「redfin」，「我們」，「我們」，「我們」是指Redfin公司及其全部子公司，除非另有說明或上下文另有所指。但是，在提及2023年票據，2025年票據和2027年票據時，「我們」，「我們」和「我們」只指Redfin公司，而不是整體的Redfin公司及其子公司，(ii)阿波羅貸款， 「我們」，「我們」和「我們」只涉及Redfin公司及其除Bay Equity LLC以外的全部子公司，整體而言，(ii)每筆庫存信貸工具，「我們」，「我們」和「我們」指的是Bay Equity LLC。

關於前瞻性聲明的說明

這份季度報告包含前瞻性聲明。除歷史事實陳述外，本報告中的所有陳述，包括關於我們未來經營業績和財務狀況、業務策略和計劃、市場增長和趨勢以及未來業務運營目標的陳述，均爲前瞻性聲明。「相信」、「可能」、「將」、「估計」、「持續」、「預期」、「打算」、「期望」、「可能」、「願景」、「希望」、「可能」、「初步」、「有可能」、「很可能」等表達旨在識別前瞻性聲明。我們在很大程度上基於我們目前對可能影響我們財務狀況、經營業績、業務策略、短期和長期業務運營及目標以及財務需求的未來事件和趨勢的預期和投影。這些前瞻性聲明受到許多風險、不確定性和假設的影響，包括我們年報2023年12月31日止年度第1A項目和我們2024年3月31日止季度報告第II，第1A項目中描述的風險。此外，我們處於競爭激烈且快速變化的環境中。新的風險不時出現。我們的管理層無法預測所有風險，也不能評估所有因素對我們業務的影響或任何因素，或任何組合因素可能導致實際結果與我們可能提出的任何前瞻性聲明中所包含的結果實質上不同的程度。鑑於這些風險、不確定性和假設，本報告中討論的未來事件和趨勢可能不會發生，實際結果可能會有重大不同並對前瞻性聲明中暗示的情況產生不利影響。因此，您不應該將前瞻性聲明視爲未來事件的預測。儘管我們認爲前瞻性聲明中反映的預期是合理的，但我們不能保證前瞻性聲明中反映的未來結果、表現、事件和情形將會實現或發生。我們不承擔在本報告日期之後出於任何原因更新任何這些前瞻性聲明或調整這些聲明以符合實際結果或修訂預期的義務。

關於行業和市場數據的注意事項

這份季度報告包含了使用行業出版物的信息，通常這些出版物會聲明所含信息來源可靠，但該信息可能不準確或完整。雖然我們不知道這些行業出版物所述信息有任何錯誤，但我們並未獨立驗證任何第三方來源的數據，也未核實其中所依賴的基礎經濟假設。
i
目錄
第一部分 - 財務信息

項目1.基本報表。

redfin公司及其子公司
合併資產負債表
(以千爲單位，除每股和每股金額外，未經審計)
2024年9月30日2023年12月31日
資產
流動資產
現金及現金等價物$165,660 $149,759 
受限現金174 1,241 
短期投資— 41,952 
應收賬款，減去$的信貸損失3,945 和 $3,234
74,971 51,738 
待售貸款212,921 159,587 
預付費用30,531 33,296 
其他資產20,514 7,472 
總流動資產504,771 445,045 
資產和設備，淨值43,312 46,431 
使用權資產，淨額26,275 31,763 
按公允價值計量的抵押服務權2,534 32,171 
所有基金類型投資— 3,149 
商譽461,349 461,349 
無形資產, 淨額104,127 123,284 
其他資產，非流動資產8,705 10,456 
資產總額$1,151,073 $1,153,648 
688,737
流動負債
應付賬款$14,280 $10,507 
應計負債及其他負債101,040 90,360 
Series A可轉換優先股 - 每股面值0.001美元；擁有10,000,000股授權；截至2024年6月30日和2023年12月31日，發行並已發行40,000股208,817 151,964 
租賃負債13,347 15,609 
流動負債合計337,484 268,440 
非流動租賃負債22,853 29,084 
可轉換的高級票據淨額，非流動571,644 688,737 
期限貸款243,646 124,416 
遞延稅款負債647 264 
負債合計1,176,274 1,110,941 
承諾和 contingencies（注 7）
A輪可轉換優先股—面值$0.001；10,000,000 40,000 2024年9月30日和2023年12月31日發行和流通的股份
39,992 39,959 
(in thousands, except share and per share amounts, unaudited)
普通股—面值$0.001 每股; 500,000,000 123,945,380 和 117,372,171 而9月30日和2023年12月31日分別發行和流通的股份
124 117 
額外實收資本886,592 826,146 
累計其他綜合損失(140)(182)
累積赤字(951,769)(823,333)
3660(65,193)2,748 
Cost of revenue(1)$1,151,073 $1,153,648 

請參閱合併基本報表附註。
1
目錄
redfin公司及其子公司
綜合損益表
(以千爲單位，除每股和每股金額外，未經審計)
截至9月30日的三個月截至9月30日的九個月
2024202320242023
收入$278,015 $268,956 $798,697 $758,595 
收入成本176,152 170,616 516,436 501,927 
毛利潤101,863 98,340 282,261 256,668 
運營費用
技術和開發40,332 44,392 128,976 139,196 
市場營銷27,186 24,095 92,324 97,531 
一般和行政58,788 55,380 181,366 186,584 
重組和重組2,509 — 4,732 7,159 
運營費用總額128,815 123,867 407,398 430,470 
持續經營造成的損失(26,952)(25,527)(125,137)(173,802)
利息收入1,839 2,060 5,132 8,170 
利息支出(8,537)(1,603)(19,497)(5,291)
所得稅支出12 (239)(375)(882)
可轉換優先票據的註銷收益— 6,495 12,000 68,848 
其他費用，淨額(144)(158)(559)(537)
持續經營業務的淨虧損(33,782)(18,972)(128,436)(103,494)
已終止業務的淨虧損— — — (3,634)
淨虧損$(33,782)$(18,972)$(128,436)$(107,128)
可轉換優先股的分紅(282)(335)(706)(858)
歸屬於普通股的持續經營業務淨虧損——基本虧損和攤薄後虧損$(34,064)$(19,307)$(129,142)$(104,352)
歸屬於普通股的淨虧損——基本虧損和攤薄後$(34,064)$(19,307)$(129,142)$(107,986)
歸屬於普通股的每股持續經營業務淨虧損——基本虧損和攤薄後$(0.28)$(0.17)$(1.07)$(0.93)
歸屬於每股普通股的淨虧損——基本虧損和攤薄後$(0.28)$(0.17)$(1.07)$(0.96)
加權平均股數，用於計算歸屬於普通股的每股淨虧損——基本和攤薄後122,876,102 114,592,679 120,553,264 112,141,342 
淨虧損$(33,782)$(18,972)$(128,436)$(107,128)
其他綜合收入
外幣折算調整4 (15)2 (73)
可供出售債務證券的未實現收益
— 210 40 617 
綜合損失$(33,778)$(18,777)$(128,394)$(106,584)

請參閱合併基本報表附註。

2
目錄
redfin公司及其子公司
合併現金流量表
(以千爲單位，未經審計)
截至9月30日的九個月
20242023
運營活動
淨虧損
$(128,436)$(107,128)
爲使淨虧損與經營活動提供的淨現金保持一致而進行的調整：
折舊和攤銷33,340 48,443 
基於股票的薪酬53,942 55,382 
債務折扣和發行成本的攤銷2,280 2,873 
非現金租賃費用9,046 12,909 
減值成本— 113 
IRLC、遠期銷售承諾和待售貸款的淨收益(1,809)(1,767)
抵押貸款還本付息權公允價值的變化，淨額(742)1,065 
可轉換優先票據的註銷收益(12,000)(68,848)
其他548 (2,013)
資產和負債的變化：
應收賬款，淨額(23,377)(238)
庫存— 114,232 
預付費用和其他資產(10,141)9,696 
應付賬款3,802 177 
應計負債和其他負債、遞延所得稅負債和工資稅負債，非流動11,772 (19,346)
租賃負債(11,993)(14,864)
抵押貸款還本付息權的起源(170)(699)
出售抵押貸款還本付息權的收益30,549 1,122 
待售貸款的發放(3,071,291)(2,798,337)
出售貸款的收益來源於待售貸款3,018,634 2,858,656 
經營活動提供的（用於）淨現金(96,046)91,428 
投資活動
購買財產和設備(8,984)(9,235)
購買投資— (76,866)
投資的銷售39,225 124,681 
投資的到期日6,395 59,383 
投資活動提供的淨現金36,636 97,963 
融資活動
根據員工權益計劃發行普通股的收益4,757 5,790 
與限制性股票單位淨股結算相關的納稅(1,574)(15,961)
從倉庫信貸機構借款3,088,179 2,803,589 
向倉庫信貸額度還款(3,031,326)(2,861,779)
融資租賃債務項下的本金付款(56)(73)
回購可轉換優先票據(106,953)(212,401)
可轉換優先票據的償還— (23,512)
償還定期貸款本金(1,563)— 
債務發行成本的支付(2,222)— 
定期貸款的收益125,000 — 
由（用於）融資活動提供的淨現金74,242 (304,347)
匯率變動對現金、現金等價物和限制性現金的影響2 (73)
現金、現金等價物和限制性現金的淨變化14,834 (115,029)
現金、現金等價物和限制性現金：
期初(1)
151,000 242,246 
期末(2)
$165,834 $127,217 
現金流信息的補充披露
支付利息的現金
$24,939 $13,540 
非現金交易
以財產和設備爲資本的股票薪酬3,327 3,173 

(1) 現金、現金等價物和受限制的現金如下（期初）：
截至12月31日，
20232022
持續運營
現金和現金等價物$149,759 $232,200 
受限制的現金1,241 2,406 
總計 151,000 234,606 
已停止的業務
現金和現金等價物— 7,640 
受限制的現金— — 
總計— 7,640 
現金、現金等價物和限制性現金總額$151,000 $242,246 

(2)現金及現金等價物、受限制現金的明細如下（期末）：
截至9月30日，
20242023
持續運營
現金和現金等價物$165,660 $125,803 
受限制的現金174 1,414 
總計165,834 127,217 
已停止的業務
現金和現金等價物— — 
受限制的現金— — 
總計— — 
現金、現金等價物和限制性現金總額$165,834 $127,217 

請參閱合併基本報表附註。
3
目錄
redfin公司及其子公司
綜述權益及股東（赤字）權益變動表
（以千爲單位，除股份數外未經審計）

轉換優先股A系列普通股股本外溢價累計赤字累計其他綜合損失
股東總數
（遞延）權益
股份數量股份數量
2024年6月30日結餘40,000 $39,981 121,743,620 $122 $865,263 $(917,987)$(144)$(52,746)
可轉換優先股淨髮行— 11 — — — — — — 
發行普通股作爲可轉換優先股的股利— — 30,640 — — — — — 
按員工股票購買計劃發行普通股— — — — — — — — 
根據行使股票期權發行普通股— — 281,420 — 2,598 — — 2,598 
根據限制性股票單位結算髮行普通股— — 1,960,792 2 (2)— — — 
在限制性股票單位結算時，爲員工的稅負而放棄的普通股— — (71,092)— (633)— — (633)
股票補償— — — — 19,366 — — 19,366 
其他綜合收益
— — — — — — 4 4 
淨損失— — — — — (33,782)— (33,782)
2024年9月30日餘額
40,000 $39,992 123,945,380 $124 $886,592 $(951,769)$(140)$(65,193)
2023年6月30日，餘額40,000 $39,936 113,934,673 $114 $791,302 $(781,463)$(452)$9,501 
發行可轉換優先股，淨額— 11 — — — — — — 
將普通股發行爲可轉換優先股股利— — 30,640 — — — — — 
根據期權行使發行普通股— — 15,836 — 123 — — 123 
根據限制性股票單位結算髮行普通股— — 1,761,678 2 (2)— — — 
在限制性股票單位結算時爲員工的稅務責任而放棄的普通股— — (531,829)(1)(4,862)— — (4,863)
股票補償— — — — 19,769 — — 19,769 
其他綜合收益
— — — — — — 195 195 
淨損失— — — — — (18,972)— (18,972)
2023年9月30日餘額40,000 $39,947 115,210,998 $115 $806,330 $(800,435)$(257)$5,753 
4
目錄

轉換優先股A系列普通股股本外溢價累計赤字累計其他綜合損失
股東總數
（遞延）權益
股份數量股份數量
2023年12月31日餘額40,000 $39,959 117,372,171 $117 $826,146 $(823,333)$(182)$2,748 
可轉換優先股的發行，淨額— 33 — — — — — — 
將普通股作爲可轉換優先股的股息發行— — 91,920 — — — — — 
根據員工股票購買計劃發行普通股— — 386,301 — 1,975 — — 1,975 
根據行使股票期權發行普通股— — 310,968 — 2,783 — — 2,783 
根據限制性股票單位的結算髮行普通股— — 5,990,918 7 (7)— — — 
普通股被交出用於僱員的稅務責任在限制性股票單位結算時— — (206,898)— (1,574)— — (1,574)
股票補償— — — — 57,269 — — 57,269 
其他綜合收益— — — — — — 42 42 
淨損失— — — — — (128,436)— (128,436)
2024年9月30日餘額
40,000 $39,992 123,945,380 $124 $886,592 $(951,769)$(140)$(65,193)
2022年12月31日的餘額40,000 $39,914 109,696,178 $110 $757,951 $(693,307)$(801)$63,953 
發行可轉換優先股，淨額— 33 — — — — — — 
將普通股作爲可轉換優先股的股息發行— — 91,920 — — — — — 
根據員工股票購買計劃發行普通股— — 1,150,703 1 4,214 — — 4,215 
根據期權行使發行普通股— — 579,000 1 1,574 — — 1,575 
根據受限制股單位結算髮行普通股— — 5,330,317 5 (5)— — — 
在受限制股單位結算時，爲員工的稅負交付普通股— — (1,637,120)(2)(15,959)— — (15,961)
股票補償— — — — 58,555 — — 58,555 
其他綜合收益— — — — — — 544 544 
淨損失— — — — — (107,128)— (107,128)
2023年9月30日結餘
40,000 $39,947 115,210,998 $115 $806,330 $(800,435)$(257)$5,753 

請參閱合併基本報表附註。
5
目錄
基本報表附註索引

注1：
注2：
註釋3：
註釋4：
註釋5：
註釋6：
註解7：
註解8：
註解9：
註解10：
註解11：
注：第12條。
註釋13:
附註14：
附註15：
6
基本報表註釋指數
redfin公司及其子公司
合併財務報表註釋
(以千爲單位，除每股和每股金額外，未經審計)

注1：計劃的財務報表按照美國通用會計準則（「GAAP」）編制。

報告範圍綜合財務報表及附註已根據美國通用會計準則（「GAAP」）編制。

本季度報告中包含截至2023年12月31日的財務信息，這些信息來源於截至2023年12月31日的經審計的合併基本報表和附註，該基本報表和附註包含在截至2023年12月31日的年度報告第8項中。這些財務信息應與我們年度報告中包含的合併基本報表的附註一同閱讀。

未經審計的合併中期財務報表，據管理層意見，反映出所有調整，僅包括正常循環調整，必要的爲了公允展示我們截至2024年9月30日的財務狀況，以及截至2024年9月30日和2023年的綜合損益表、權益變動表和股東（赤字）權益表，以及截至2024年9月30日和2023年的現金流量表。截至2024年9月30日的三個月和九個月的結果未必預示着截至2024年12月31日或任何中期期間或任何其他未來年度的結果。

合併原則未經審計的合併中期基本報表包括redfin公司及其全資子公司的帳戶。公司間交易和餘額已予以消除。

使用估計按照GAAP的要求編制合併基本報表需要我們的管理層做出影響資產和負債以及在各期間經營業績報告金額的估計和假設。我們的估計包括但不限於遞延所得稅的計價、以股票爲基礎的薪酬、網站和軟件開發成本的資本化、用於確定租賃付款現值的增量借貸利率、有限生命週期無形資產的收回能力、持售房按揭貸款和按揭服務權的公允價值、無形資產的估計有用生命週期、爲了分配和評估商譽減值而進行報告單位的公允價值，以及對某些金融資產目前預期信用損失的估計。最終從受影響資產實現的金額或作爲負債最終確認的金額將取決於，等等因素，一般的業務條件，並且可能與在短期內在合併基本報表中反映的賬面價值有實質差異。

最近採用的會計準則—無相關內容。

最近發佈的會計聲明—2023年9月，財務會計準則委員會（"FASB"）根據ASU 2023-07發佈了具有權威性的指導意見，即《報告分部多元化 - 有關可報告分部披露的改進》。 該ASU通過對重要分部費用的增強披露，改善了可報告分部的披露要求。 本ASU中的修訂將於2023年12月15日後開始的財政年度和2024年12月15日後開始的財政年度內的中間期生效。 我們目前正在評估這一標準對我們分部披露的影響。

2023年12月，FASB根據ASU 2023-09發佈了權威指導，涉及所得稅 - 改進所得稅披露。該ASU增強了年度所得稅披露，以滿足投資者對有關實體全球運營中存在的稅務風險和機會的更多信息的請求。這兩項主要增強措施對現有的有關有效稅率協調和已繳所得稅的所得稅披露進行了分解。本ASU的修正案將於2024年12月15日後的年度週期生效，允許提前採納。我們目前正在評估這項指導對我們財務報表披露的潛在影響。

7
基本報表註釋指數
注2：停產業務

2022年11月，我方管理層和董事會做出決定，逐步停止RedfinNow的業務。由於RedfinNow的財務業績歷來包含在我們的房地產部門中。逐步停止RedfinNow是我們做出的戰略決策，旨在應對資本成本不斷上升，將資源集中於我們的核心業務。房地產部門的逐步停止工作截至2023年6月30日完成，此時符合我們合併財務報表中已停止經營業務的標準。

截至2024年9月30日和2023年12月31日，我們已終止運營的主要資產和負債類別已全部清零。

終止運營的重大類別行項目包括2023年9月30日結束的三個和九個月份的綜合損益表。
2023年9月30日止三個月
2023年9月30日止九個月
營業收入$— $122,576 
營業收入成本
— 124,422 
毛利潤
— (1,846)
營業費用
科技及研發
— 552 
市場營銷
— 523 
一般行政
— 638 
重組和重新組織— 75 
營業費用總計
— 1,788 
來自終止經營的損失
— (3,634)
利息收入、利息支出、所得稅費用和其他費用淨額
— — 
已停止運營業務的淨虧損$— $(3,634)
按基本和稀釋每股分掉的停止運營淨損失$0.00 $(0.03)

2023年9月30日結束的九個月中，停止運營的重大非現金項目和資本支出如下：
股票補償$234 
折舊和攤銷89 

與我們物業部門逐步清算相關的費用如下：
費用類型財務報表項目2023年9月30日止九個月
截至2023年9月30日已認定的累積金額
員工解僱費用重組和重新組織$539 $8,587 
資產減值損失重組和重新組織— 493 
其他重組和重新組織(465)(890)
債務發行成本加速利息支出— 481 
總計$74 $8,671 

8
基本報表註釋指數
注3：分部報告和營業收入

在業務操作中，我們的管理層，包括我們的首席經營決策者（"CODM"），也是我們的首席執行官，根據營業收入、毛利潤、營業收入和淨（虧損）收入評估我們的經營板塊的表現。我們不分析與長期資產相關的離散板塊資產負債表信息，其中幾乎所有資產均位於美國。我們有所報告的板塊，房地產服務、租賃和抵押。 五個營運部門：獵鷹創意集團、PDP、Sierra Parima、目的地運營和Falcon's Beyond Brands，所有這些板塊均爲可報告板塊。公司的首席營運決策者是執行主席和首席執行官，他們評估財務信息以做出營運決策、評估財務表現和分配資源。營運板塊基於產品線組織，對於我們的基於位置的娛樂板塊，根據地理位置組織。營運板塊的結果包括直接歸屬於板塊的成本，包括項目成本、工資和與工資有關的開支以及與業務板塊運營直接相關的間接費用。未分配的企業費用，包括高管、會計、財務、市場營銷、人力資源、法律和信息技術支持服務、審計、稅收企業法律開支的工資和相關福利，作爲未分配的企業開銷呈現，成爲報告板塊的總收入（虧損）和公司未經審計的彙總財務報表結果之間的調節項。個運營板塊和三 可報告板塊包括，房地產服務、租賃和抵押。

我們主要通過房地產服務交易產生營業收入，包括我們的首席經紀人或合作伙伴代理完成的手續費和佣金、面向租賃業務的訂閱產品收費，以及抵押貸款的起始、銷售和服務來實現。我們的主要營業收入包括券商收入、合作伙伴收入、租賃收入、抵押貸款收入和其他收入。

我們在下表中提供了每個報告業務和其他業務部分的信息，以及與持續經營的淨（虧損）收入的對賬。我們已經將某些先前報告的費用分配到每個部分，以符合我們內部管理和監控業務的方式。在這些費用對業務績效衡量具有重大影響時，我們根據合理的分配方法將間接成本分配給每個部分。
截至2024年9月30日的三個月
房地產服務租金抵押其他公司開銷總計
收入
$175,136 $51,660 $35,621 $15,598 $— $278,015 
收入成本126,421 12,366 30,214 7,151 — 176,152 
毛利潤48,715 39,294 5,407 8,447 — 101,863 
運營費用
技術和開發26,927 10,648 675 889 1,193 40,332 
市場營銷12,907 13,600 667 12 — 27,186 
一般和行政18,263 24,074 5,885 1,215 9,351 58,788 
重組和重組— — — — 2,509 2,509 
運營費用總額58,097 48,322 7,227 2,116 13,053 128,815 
來自持續經營業務的（虧損）收入(9,382)(9,028)(1,820)6,331 (13,053)(26,952)
利息收入、利息支出、所得稅支出、可轉換優先票據的清償收益和其他支出，淨額38 100 (2,966)266 (4,268)(6,830)
來自持續經營業務的淨（虧損）收入$(9,344)$(8,928)$(4,786)$6,597 $(17,321)$(33,782)
9
基本報表註釋指數
截至2023年9月30日的三個月
房地產服務租金抵押其他公司開銷總計
收入
$177,750 $47,410 $32,923 $10,873 $— $268,956 
收入成本123,684 10,824 29,629 6,479 — 170,616 
毛利潤54,066 36,586 3,294 4,394 — 98,340 
運營費用
技術和開發25,711 15,813 800 1,133 935 44,392 
市場營銷10,785 12,245 1,088 20 (43)24,095 
一般和行政18,418 21,838 6,670 952 7,502 55,380 
運營費用總額54,914 49,896 8,558 2,105 8,394 123,867 
來自持續經營業務的（虧損）收入
(848)(13,310)(5,264)2,289 (8,394)(25,527)
利息收入、利息支出、所得稅支出、可轉換優先票據的清償收益和其他支出，淨額
41 42 (73)207 6,338 6,555 
來自持續經營業務的淨（虧損）收入
$(807)$(13,268)$(5,337)$2,496 $(2,056)$(18,972)

截至2024年9月30日的九個月
房地產服務租金抵押其他公司開銷總計
收入
$493,885 $152,105 $109,619 $43,088 $— $798,697 
收入成本371,198 35,453 88,646 21,139 — 516,436 
毛利潤122,687 116,652 20,973 21,949 — 282,261 
運營費用
技術和開發84,354 36,577 2,031 2,686 3,328 128,976 
市場營銷47,939 42,137 2,221 27 — 92,324 
一般和行政57,178 66,794 19,087 3,279 35,028 181,366 
重組和重組— — — — 4,732 4,732 
運營費用總額189,471 145,508 23,339 5,992 43,088 407,398 
來自持續經營業務的（虧損）收入(66,784)(28,856)(2,366)15,957 (43,088)(125,137)
利息收入、利息支出、所得稅支出、可轉換優先票據的清償收益和其他支出，淨額6 65 (2,962)690 (1,098)(3,299)
來自持續經營業務的淨（虧損）收入$(66,778)$(28,791)$(5,328)$16,647 $(44,186)$(128,436)
10
基本報表註釋指數
截至2023年9月30日的九個月
房地產服務租金抵押其他公司開銷總計
收入(1)
$485,687 $135,636 $107,838 $29,434 $— $758,595 
收入成本359,625 31,016 93,108 18,178 — 501,927 
毛利潤126,062 104,620 14,730 11,256 — 256,668 
運營費用
技術和開發82,650 48,081 2,177 3,475 2,813 139,196 
市場營銷51,849 42,509 3,122 46 5 97,531 
一般和行政58,997 73,445 20,323 3,049 30,770 186,584 
重組和重組— — — — 7,159 7,159 
運營費用總額193,496 164,035 25,622 6,570 40,747 430,470 
來自持續經營業務的（虧損）收入
(67,434)(59,415)(10,892)4,686 (40,747)(173,802)
利息收入、利息支出、所得稅支出、可轉換優先票據的清償收益和其他支出，淨額
41 115 (224)475 69,901 70,308 
來自持續經營業務的淨（虧損）收入
$(67,393)$(59,300)$(11,116)$5,161 $29,154 $(103,494)
(1) 營業收入中包含了$1,244 用於向我們停止運營物業部門提供服務。

注4：合作和其他安排 金融工具

衍生品

我們主要市場風險敞口是利率期貨風險，特別是美國國債和抵押貸款利率，因爲它們對抵押貸款相關資產和承諾的影響。我們使用遠期銷售承諾來管理和減少這種風險。我們沒有任何指定爲套期保值工具的衍生工具。

向前銷售承諾我們在貸款從資金日期持有到貸款出售日期之間暴露於利率和價格風險。使用對整個貸款和抵押支持證券的向前銷售承諾來確定將在每筆貸款出售時實現的向前銷售價格。

利率鎖定承諾利率鎖定承諾（"IRLCs"）代表着向抵押貸款申請人提供信貸的協議。我們承諾（在貸款獲批的前提下）按照指定利率撥款，不受承諾日期和撥款日期之間市場利率變動的影響。未了結的IRLCs在從承諾日期到貸款撥款日期或到期日期的期間面臨利率風險和相關的價格風險。貸款承諾通常在 30 和 90 天之間變化，借款人無需獲得貸款。因此，IRLCs面臨着棄單風險，即批准的借款人選擇不關閉相關貸款時發生的風險。我們將我們的承諾到關閉比率（"通過率"）作爲估計將按照IRLCs進行撥款的抵押貸款數量的一部分進行審查。

我們遠期銷售承諾和IRLC的名義金額如下：
樂器2024 年 9 月 30 日2023 年 12 月 31 日
遠期銷售承諾$384,797 $274,400 
IRLCs276,572 188,554 

11
基本報表註釋指數
與我們的衍生工具相關的收益（損失）的地點和金額如下：
截至9月30日的三個月截至9月30日的九個月
工具分類2024202320242023
向前銷售承諾營業收入$(792)$335 $1,144 $2,367 
IRLCs營業收入86 (1,567)(13)1,005 

金融工具的公允價值

以下是關於我們金融工具的資產和負債摘要，根據公允價值定期衡量，並反映在我們的合併資產負債表中：
2024年9月30日的餘額對於相同資產的活躍市場中報價（一級）重要的其他觀察的輸入（2級）具有重大未觀察到的輸入參數（第3級）
資產
現金等價物
貨幣市場基金$114,617 $114,617 $— $— 
現金等價物總計114,617 114,617 — — 
待售貸款212,921 — 212,921 — 
其他資產
向前銷售承諾469 — 469 — 
IRLCs4,691 — — 4,691 
其他流動資產合計5,160 — 469 4,691 
按公允價值計量的抵押服務權2,534 — — 2,534 
資產總額$335,232 $114,617 $213,390 $7,225 
負債
應計負債
遠期銷售承諾$1,755 $— $1,755 $— 
IRLCs252 — — 252 
負債合計$2,007 $— $1,755 $252 

12
基本報表註釋指數
2023年12月31日結餘爲對於相同資產的活躍市場中報價（一級）重要的其他觀察的輸入（2級）具有重大未觀察到的輸入參數（第3級）
資產
現金等價物
貨幣市場基金$115,276 $115,276 $— $— 
現金等價物總計115,276 115,276 — — 
短期投資
美國國債證券10,720 10,720 — — 
機構債券31,232 31,232 — — 
所有短期投資41,952 41,952 — — 
待售貸款159,587 — 159,587 — 
其他資產
IRLCs4,600 — — 4,600 
其他流動資產合計4,600 — — 4,600 
按公允價值計量的抵押服務權32,171 — — 32,171 
所有基金類型投資
美國國庫債券3,149 3,149 — — 
資產總額$356,735 $160,377 $159,587 $36,771 
負債
應計負債
向前銷售承諾$2,429 $— $2,429 $— 
IRLCs147 — — 147 
負債合計$2,576 $— $2,429 $147 

在所示期間，沒有向或從三級財務工具進行轉移。

在確定IRLCs公允價值的重要不可觀察輸入是拉動率。輸入發生顯著變化可能導致公允價值測量發生顯著變化。

以下是用於評估IRLCs和按揭服務權（"MSRs"）價值的關鍵不可觀測輸入的定量摘要：
2024年9月30日2023年12月31日
關鍵輸入估值技巧區間平均區間平均
IRLCs
Pull-through rate
市場定價
68.0% - 100.0%
90.5%
67.2% - 100.0%
87.7%
MSRs
預付速度貼現現金流
6.0% - 25.0%
8.5%
 6.0% - 19.0%
6.8%
違約率貼現現金流
0.1% - 1.2%
0.2%
0.1% - 1.2%
0.2%
折現率貼現現金流
10.0% - 18.0%
10.3%
10.0% - 17.0%
10.2%
13
基本報表註釋指數

以下是IRLC公允價值變化摘要：
截至9月30日的三個月截至9月30日的九個月
2024202320242023
期初淨額餘額$4,353 $3,870 $4,453 $1,297 
IRLCs發行14,245 10,638 43,569 39,769 
IRLCs結算(14,616)(11,650)(44,025)(38,241)
公允價值變動計入收益457 (556)442 (523)
期末淨額餘額$4,439 $2,302 $4,439 $2,302 

以下是抵押服務權（MSRs）公允價值變動摘要：
截至9月30日的三個月截至9月30日的九個月
2024202320242023
期初餘額$2,695 $35,503 $32,171 $36,261 
MSRs的起源86 120 170 699 
MSRs的銷售(1)
(46)(384)(30,549)(1,122)
公允價值變動影響利潤
(201)(466)742 (1,065)
期末淨餘額$2,534 $34,773 $2,534 $34,773 
(1) 我們在2024年5月31日將$的MSR出售給Freedom Mortgage Corporation。30,038 我們將$的MSR出售給Freedom Mortgage Corporation。

以下表格顯示了我們可轉換高級票據的預估公允價值，這些價值未在我們的合併資產負債表中記錄。
2024 年 9 月 30 日2023 年 12 月 31 日
2025 年筆記$70,269 $164,113 
2027 年筆記367,896 325,927 

我們可轉股高級債券的估計公允價值是基於該期間最後一個交易日債券的收盤交易價格，並由於該債券的交易活動有限，被分類爲公允價值層次中的二級。有關我們可轉股高級債券的更多詳細信息，請參閱附註14。

請參閱註釋10，了解我們可轉換優先股的賬面價值。

非定期基礎上確認或披露的資產和負債包括諸如房地產和設備、商譽及其他無形資產以及其他資產。如果確定存在減值，這些資產將按公允價值重新計量。

14
基本報表註釋指數
我們現金、貨幣市場基金、限制性現金和可供出售投資的成本或攤銷成本、未實現收益和損失、以及估計公允市場價值如下：
2024年9月30日
公允價值層次結構成本或攤銷成本未實現收益未實現虧損估算公允價值現金、現金等價物和受限制的現金短期投資開多期投資
現金N/A$51,043 $— $— $51,043 $51,043 $— $— 
貨幣市場基金一級114,617 — — 114,617 114,617 — — 
受限現金N/A174 — — 174 174 — — 
總計$165,834 $— $— $165,834 $165,834 $— $— 
2023年12月31日
公允價值層次結構成本或攤銷成本未實現收益未實現虧損估算公允價值現金、現金等價物和受限制的現金短期投資開多期投資
現金N/A$34,483 $— $— $34,483 $34,483 $— $— 
貨幣市場基金一級115,276 — — 115,276 115,276 — — 
受限現金N/A1,241 — — 1,241 1,241 — — 
美國國庫債券一級13,895 1 (27)13,869 — 10,720 3,149 
機構債券一級31,246 — (14)31,232 — 31,232 — 
總計$196,141 $1 $(41)$196,101 $151,000 $41,952 $3,149 

截至2024年9月30日和2023年12月31日，我們持有 no 應計利息和應計利息的資產爲$332，分別針對我們可供出售的投資，在我們已記錄了 no 預計信用損失。應計利息應收款項記錄在我們的綜合資產負債表中的其他流動資產中。

註釋5: 資產和設備

房地產和設備的元件如下：
有用壽命（年）2024年9月30日2023年12月31日
租賃改良租約期限或經濟壽命較短者$27,712 $28,789 
網站和軟件開發成本
3 - 5
86,839 75,573 
計算機及辦公設備
3 - 5
14,758 16,175 
軟件31,607 1,869 
傢俱77,320 7,754 
234,036138,236 130,160 
累計折舊及攤銷費用(99,178)(89,275)
施工進度4,254 5,546 
資產和設備，淨值$43,312 $46,431 

The following table summarizes depreciation and amortization and capitalized software development costs:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Depreciation and amortization for property and equipment$4,779 $4,550 $14,182 $19,113 
Capitalized software development costs, including stock-based compensation3,082 3,854 11,647 12,700 

15
Index to Notes to Financial Statements
Note 6: Leases

We lease office space under noncancelable operating leases with original terms ranging from one to 11 years, and prior to September 30, 2024, vehicles under noncancelable finance leases with terms of four years. Generally, the operating leases require a fixed minimum rent with contractual minimum rent increases over the lease term. The components of lease expense were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
Lease Cost2024202320242023
Operating lease cost:
Operating lease cost (cost of revenue)
$2,069 $2,586 $6,658 $8,279 
Operating lease cost (operating expenses)
1,210 1,269 3,639 6,247 
Short-term lease cost
573 751 1,908 2,339 
Sublease income
(435)(370)(1,370)(1,057)
Total operating lease cost$3,417 $4,236 $10,835 $15,808 
Finance lease cost:
Amortization of right-of-use assets$11 $17 $59 $48 
Interest on lease liabilities1 1 6 4 
Total finance lease cost$12 $18 $65 $52 
操作
租賃義務總額
租賃負債到期日
租賃負債(2)
其他租賃
2024年，不包括截至2024年9月30日的九個月
$4,066 $433 $4,499 
202513,970 499 14,469 
202611,393 37 11,430 
20276,436 — 6,436 
20281,859 — 1,859 
此後882 — 882 
總租賃支付$38,606 $969 $39,575 
減：利息(1)
2,406 
租賃負債的現值$36,200 
(1) 包括未來十二個月內到期的經營租賃利息 $1,267 。
(2) 不包括轉租收入。截至2024年9月30日，我們預計2024財年剩餘將收到約$的轉租收入。455 以收到相應的租金。
租賃期限和貼現率2024年9月30日2023年12月31日
經權重平均後的剩餘營業租賃期限（年）
2.93.2
融資租賃剩餘加權平均期限（年）
N/A2.5
經營租賃的加權平均貼現率
4.5 %4.5 %
融資租賃的折現率的加權平均值
N/A5.4 %
截至9月30日的九個月
補充現金流信息20242023
爲計量租賃負債所含金額支付的現金
來自經營租賃的運營現金流$13,270 $16,539 
來自融資租賃的運營現金流6 4 
爲來自融資租賃的現金流融資49 39 
使用權資產以換取租賃負債
經營租賃
$4,329 $7,490 
融資租賃69 59 

16
基本報表註釋指數
註釋 7： 承諾和事後約定

法律訴訟

以下是我們的材料討論，有待法律訴訟。除非另有說明，鑑於這些訴訟仍處於初步階段，以及所涉及的索賠和問題，我們無法估計可能損失的區間。

此外，我們定期面臨訴訟、訴訟和其他訴訟，包括可能涉及就業、知識產權、隱私和數據保護、消費者保護、競爭和反壟斷法律以及商業或合同爭議等領域的監管程序，以及其他事項。我們法律程序和其他不確定因素的結果本質上是不可預測的，受到重大不確定性的影響，並且可能對我們某個特定時期的經營業績和現金流量產生重大影響。我們定期評估我們法律程序和其他不確定因素的進展，這可能影響責任金額，包括超過任何先前計提的金額和已披露的合理可能損失，並根據情況對我們的計提和披露進行調整和更改。對於我們披露但不包括損失金額或損失範圍估計的事項，這樣的估計是不可能的或不重要的，我們可能無法估計可能因應用非貨幣補救措施而可能產生的損失金額或損失範圍。在此類事項最終解決之前，如果我們的任何估計和假設發生變化或被證明是不正確的，我們可能會遭受超過記錄金額的損失，這可能會對我們的業務、合併財務狀況、經營業績或現金流產生重大影響。除下文所述事項外，我們認爲我們未決訴訟、索賠和其他訴訟均不會對我們的業務產生重大影響。

大衛·埃雷克提起的訴訟— 2020年5月11日，我們的聯合創始人兼前首席執行官大衛·埃雷克通過美國德克薩斯州西區地方法院韋科分院（d/b/a Surefield）（「Surefield」）（「Surefield」）提起申訴，該公司由埃拉克創立，我們認爲由他控制。投訴指控我們侵權 四 專利聲稱歸Surefield所有，未經其授權或許可。Surefield要求賠償金額不詳的賠償金，並對我們提供涉嫌侵犯相關專利的產品和服務發佈禁令。2022年5月17日，陪審團作出了有利於我們的裁決，認定我們沒有侵犯聲稱由Surefield擁有的專利的任何索賠，因此，我們不欠Surefield任何損害賠償。陪審團還裁定，對Surefield主張的專利的所有主張均無效。法院於2022年8月15日作出最終判決。2022年9月12日，蘇爾菲爾德作爲法律問題提出了判決動議，並提出了重新審判的動議。Surefield在動議中斷言，除其他外，任何陪審團都不可能根據審判記錄認定不侵權。我們於2022年10月3日對議案提出了異議，蘇爾菲爾德於2022年10月21日提交了答覆。2024年10月7日，法院任命了一名技術顧問，協助法院處理未決的審後動議。

關於被錯分類的訴訟—2019年8月28日，我們的前獨立承包授權銷售助理之一Devin Cook（我們稱之爲助理代理人）在加利福尼亞州舊金山縣超級法院對我們提起訴訟。原告最初將訴訟申述爲集體訴訟，並聲稱我們錯誤地將其定性爲獨立承包商而不是僱員。原告還根據加州《私人律師總檢察官法案》提出了索賠請求。2020年1月30日，原告提交第一次修改訴狀，撤銷了她的集體訴訟訴訟請求，僅主張《PAGA》下的索賠。

2020年11月20日，我們的前首席代理之一Jason Bell和前副代理向美國加利福尼亞州南區聯邦地區法院提起了訴訟。 該訴狀被提起爲集體訴訟，並聲稱：（1）在他擔任副代理期間，我們錯誤將其錯認爲獨立承包商而非正式僱員；（2）在他擔任首席代理期間，我們錯誤將其錯認爲exempt免受最低工資和加班法律約束的員工。 原告還聲稱根據《私人訴訟法》提起代表性索賠。 原告尋求未指定金額的未支付加班工資、正常工資、膳食和休息時間補償、等待時間和其他罰款、禁令和其他衡平救濟、以及原告律師費和成本。

17
Index to Notes to Financial Statements
On May 23, 2022, pursuant to a combined mediation, we settled the lawsuits brought by Ms. Cook and Mr. Bell for an aggregate of $3,000. On April 7, 2023, plaintiffs filed a motion for preliminary approval of the class settlements. The motion for preliminary approval of the class settlement was granted by the court on May 4, 2023. The motion for final approval of the class settlement was granted on November 28, 2023. The settlement funds have been paid and are being distributed to class members. The Court entered an order closing the case on July 19, 2024.

Lawsuits Alleging Antitrust Violations—Since October 2023, a number of class action lawsuits have been filed on behalf of putative classes of home buyers and home sellers against the National Association of Realtors, local real estate associations, multiple listing services, and various residential real estate brokerages in various federal districts in the United States. Some of these lawsuits name Redfin as a defendant, including:
•Don Gibson, et al. v. National Association of Realtors, et al., Case no. 4:23-cv-00788-SRB, filed on October 31, 2023 in United States District Court for the Western District of Missouri (the “Gibson Action”).
•Mya Batton et al. v. Compass, Inc., et al., Case no. 1:23-cv-15618, filed on November 2, 2023 in United States District Court for the Northern District of Illinois.
•1925 Hooper LLC, et al. v. The National Association of Realtors, et al., Case no. 1:23-cv-05392-SEG, filed on December 6, 2023 in the United States District Court for the Northern District of Georgia.
•Daniel Umpa v. The National Association of Realtors, et al., Case no. 4:23-cv-00945-FJG, filed on December 27, 2023 in the United States District Court for the Western District of Missouri (the “Umpa Action”).
•Nathaniel Whaley v. National Association of Realtors, et al., Case no. 2:24-cv-00105-GMN-MDC, filed on January 25, 2024 in the United States District Court for the District of Nevada.
•Angela Boykin v. National Association of Realtors, et al., Case No. 2:24-cv-00340, filed on February 16, 2024 in the United States District Court for the District of Nevada.
•Freedlund v. Redfin Corporation, et al., Case No. 2:24-cv-01561, filed on February 26, 2024 in the United States District Court for the Central District of California.
•Rajninder (Raven) Jutla, et al. v. Redfin Corporation, et al., Case No. 2:24-cv-00464, filed on April 1, 2024 in the United States District Court for the Eastern District of California and transferred on April 5, 2024, to the United States District Court for the Western District of Washington.

These lawsuits variously allege a conspiracy to fix prices stemming from a National Association of Realtors rule, which allegedly requires brokers to make a blanket, non-negotiable offer of buyer broker compensation when listing a property on a multiple listing service. The plaintiffs generally seek injunctive relief, unspecified damages under federal antitrust law, and unspecified damages under various state laws. The Judicial Panel on Multidistrict Litigation denied a motion to consolidate some of these cases as In re Real Estate Commission Antitrust Litigation, MDL No. 3100 on April 12, 2024. At this time, except as set forth below, we are unable to predict the potential outcome of these lawsuits.

On May 3, 2024, we entered into a settlement term sheet (the “Proposed Settlement”) and on June 26, 2024, we executed a settlement agreement (the “Settlement Agreement”) to resolve, on a nationwide basis, all claims asserted in the Gibson Action and the Umpa Action, each pending in the United States District Court for the Western District of Missouri. These two cases are collectively referred to as “The Lawsuits.” The Settlement Agreement resolves all claims in the Lawsuits and similar claims on behalf of home sellers on a nationwide basis against Redfin (the “Claims”) and releases Redfin, its subsidiaries and its employees and contractors from the Claims. Neither the Proposed Settlement nor the Settlement Agreement include any admissions of liability.

根據和解協議，redfin於2024年8月26日支付了$9,250 （"和解金額"），存入了一個合格的解決基金。和解金額包括在我們的綜合資產和負債表中的其他流動資產和應計及其他負債中。2024年第一季度，我們在綜合損益表中記錄了和解金額的一般行政費用。redfin也同意實施或繼續執行和解協議中概述的某些做法。

18
基本報表註釋指數
2024年7月15日，密蘇里州西區聯邦地區法院發佈了一項關於和解協議的初步批准令，並於2024年11月4日發佈了最終批准令。和解協議將在申訴期限屆滿且未提出任何上訴的情況下生效，或者如果有上訴提出，則在最終法院通過上訴程序批准和解協議時生效。上訴的截止日期爲2024年12月4日，截至2024年11月6日尚未提出上訴。

隱私侵犯訴訟——我們在網站運營中使用不斷髮展的工具和技術，如像素。我們不時涉及，並可能在將來面臨聲稱消費者數據隱私侵犯的第三方索賠。2024年6月25日，redfin被指控參與一起集體訴訟。 Mata v. redfin，案件編號24-cv-1094L，提交給美國加利福尼亞南區地方法院。控訴稱redfin在其網站上使用跟蹤技術，與第三方分享訪客在網站上的活動和觀看的導覽視頻，違反了《聯邦視頻隱私保護法》（VPPA）和《加利福尼亞侵犯隱私法》（CIPA）。控訴要求進行陪審團審判，並尋求：（i）在控訴中概述的類別和子類別認證的命令；（ii）裁定我們被指控的行爲違反VPAA和CIPA；（iii）給予VPAA下的類別和CPAA下的子類別的法定賠償金；（iv）懲罰性賠償金；（v）預判利息；以及（vi）禁令救濟。2024年10月30日，法院發佈了一項命令，批准暫停該案件，等待原告個人仲裁的完成。各方需要在2025年2月5日或之前提交一份聯合進展報告，報告仲裁的進展情況。

指控違反薪酬透明度法的訴訟— 2024 年 7 月 24 日，雷德芬在一項假定的集體訴訟中被點名， 漢考克訴雷德芬案，華盛頓州金郡高等法院審理的第24-2-16685-8 SEA號案件。該投訴稱，雷德芬未能在每份招聘信息中披露工資表或薪資範圍，從而未能遵守華盛頓的薪酬透明度法。原告個人或代表該集體尋求 (i) 美元的法定賠償5 向原告和每位集體成員提供，（ii）費用和律師費，（iii）初步和禁令救濟，（iv）宣告性救濟，（v）判決前和判決後的利息。目前，我們無法預測這起訴訟的潛在結果。

其他承諾

我們的標題和結算業務以及我們的抵押業務分別代表購房者和賣房者在第三方金融機構持有存款。截至2024年9月30日，我們持有$44,724 的存款，並未將此金額記錄在我們的合併資產負債表上。我們可能需要就我們持有的存款的處置而承擔有條件的責任。

註釋 8: 已取得的無形資產和商認

已獲取的無形資產—以下表格顯示了無形資產的總賬面價值和累積攤銷額：
2024年9月30日2023年12月31日
加權平均使用年限（年）毛利累計攤銷淨利毛利累計攤銷淨利
商標名稱9.3$82,690 $(31,365)$51,325 $82,690 $(24,290)$58,400 
開發的科技資產
3.3
66,340 (65,863)477 66,340 (59,883)6,457 
客戶關係1081,360 (29,035)52,325 81,360 (22,933)58,427 
總計$230,390 $(126,263)$104,127 $230,390 $(107,106)$123,284 

攤銷費用爲$106,602和$50,178，分別對應於2023年6月30日止的三個月和六個月攤銷。未來五年及以後的攤銷費用分別爲：$107,909（2024年餘下六個月），$215,817（2025-2028）和$1,148,284（以後）。4,705 和 $9,747 截至2024年和2023年9月30日的三個月，分別爲$19,158 和 $29,241 截至2024年和2023年9月30日九個月的淨收入分別爲

19
基本報表註釋指數
下表顯示了我們對截至2024年9月30日存在的無形資產剩餘攤銷費用的估計：
2024年，不包括截至2024年9月30日的九個月
$4,583 
202517,618 
202617,380 
202715,633 
202815,050 
此後33,863 
預計剩餘攤銷費用$104,127 

商譽—以下表格顯示了各報告部門商譽的賬面價值:
一家公司的長期表現是其總體業務質量的指標。雖然任何企業都可能經歷短期成功，但表現最佳的企業可以持續增長多年。幸運的是，Compass在過去五年中的年化收入增長率達到25.6％，非常出色。這表明它迅速擴張，有助於我們的分析。出租
抵押貸款
總計
截至2024年9月30日和2023年12月31日的餘額
$250,231 $159,151 $51,967 $461,349 

註釋 9： 應計費用及其他負債

應計及其他負債的元件如下：
2024年9月30日2023年12月31日
應計的薪酬和福利
$60,432 $58,836 
其他應計負債
22,249 26,037 
法律訴訟11,500 — 
客戶合同負債6,859 5,487 
已計應付及其他負債總額
$101,040 $90,360 

注10： 夾層權益

在2020年4月1日，我們發行了 4,484,305 股普通股，價格爲$15.61每股的價格爲40,000 股優先股，價格爲$1,000每份售價爲$，包括$的12%次級票據和110,000。我們將這些優先股指定爲A系列可轉換優先股（我們的"可轉換優先股"）。我們在合併基本報表中將我們的可轉換優先股分類爲中間權益，因爲持有人選擇行使的實質性轉換特徵排除了負債分類。我們已確定沒有需要確認爲衍生資產或負債的重大內含特徵。

我們根據發行的公平價值，將總收益分配給普通股發行和可轉換優先股發行。110,000 基於各自獨立的公允價值，我們分配了這籌款項，得到了關於可轉換優先股的公允估值爲$40,000 而可轉換優先股的公允估值也是強制贖回金額的規定價值，爲$。

截至2024年9月30日，我們可轉換優先股的賬面價值淨額，減去發行成本，爲$39,992，持有人已賺取未支付的股票分紅，金額爲 30,640 股普通股。這一股票股利於2024年10月1日發放。這些股票包含在歸因於普通股的基本和攤薄持續經營虧損每股淨額中，詳見附註12。截至2024年9月30日，有 no 股優先股已轉換，優先股不可贖回，未來亦不太可能贖回，因爲股份在強制贖回日期前自動轉換的可能性遠大於遠未發生的機會。由於分紅、轉換或贖回有關優先股而保留用於未來發行的普通股數目爲 2,622,177 截至發行日期。

20
基本報表註釋指數
股息我們可轉換優先股的持有人有權獲得分紅。分紅基於每日積累，按照% 360一日財政年度的比例，每年% 5.5支付週期爲每個日曆季度結束後的第一個工作日。假設我們滿足某些條件，我們將按照每可支付的分紅比率以普通股股票形式支付。如果我們未能滿足這些條件，我們將以現金金額支付分紅，金額等於（i）除以$的分紅可發行的股份數乘以（ii）我們普通股在前17.95交易日成交量加權平均收盤價 票的投票權。 天的日期前發放分紅。

參與權持有我們可轉換優先股的股東有權獲得支付的分紅派息以及向我們普通股股東支付分紅派息，其權利範圍與如果這些優先股股東已將其優先股轉換爲普通股並在分紅和分紅派息的登記日期持有這些股份的股東相同。

轉換持有人可以根據每股優先股的發行價格除以 $ 的比率隨時將可轉換優先股轉換爲普通股19.51 （轉換價格）。轉換人也將獲得因累積股息產生的任何股息股份。

我們的可轉換優先股也可以自動轉換爲我們的普通股。如果我們普通股的收盤價超過美元27.32 每股直到 30 2024 年 11 月 30 日之前的交易日，任何一天的交易日 30 連續交易日，每股已發行的優先股將自動轉換爲我們的多股普通股，每股優先股的利率等於發行價格除以轉換價格。自動轉換後，持有人還將獲得應計股息產生的任何股息份額。

贖回——2024年11月30日，我們將被要求贖回所有未償還的可轉換優先股，每位持有人可以選擇獲得現金、普通股或現金和股份的組合。如果持有人選擇獲得現金，我們將支付每股優先股的金額，相當於發行價加上任何已發生的分紅派息。如果持有人選擇獲得股份，我們將根據轉換價格加上任何由累積股息所產生的分紅股份，爲每股優先股發行一定數量的普通股。

持有我們可轉換優先股的持有人有權要求我們在規定的文件中概述的某些事件發生後贖回其持有的所有優先股。如果持有人由於此類事件而贖回，該持有人可以選擇按照上述強制贖回所述的相同方式計算現金或普通股。此外，該持有人還將以持有人選擇的現金或普通股，獲得相當於自持有人發出贖回通知之日起剩餘股息期間所有預定股息支付金額。

清算權在我們清算、解散或清算時，可轉換優先股持有人將有權先於普通股持有人從我們的資產中獲得現金。

注11: 股本和股權報酬計劃

普通股截至2024年9月30日和2023年12月31日，我們修訂後的公司章程授權我們發行 500,000,000$的普通股份爲0.001每股.

優先股截至2024年9月30日和2023年12月31日，我們修訂後的公司章程授權我們發行 10,000,000每股面值爲$的優先股股份。截至2023年12月31日和2024年3月31日，沒有發行或流通的優先股股份。0.001每股.

修訂和重新表述 2004股權激勵計劃—我們根據我們的2004年股權激勵計劃（經修改，以下簡稱"2004年計劃"）授予了期權，直至2017年7月26日，在我們的首次公開募股中終止該計劃。因此， no 股份可用於未來根據我們的2004年計劃發行。我們的2004年計劃繼續管理在其下授予的尚未行權的股權獎勵。該計劃下每個股票期權的期限不超過 10 年，每個股票期權通常在 四年期。期限爲四年。

21
基本報表註釋指數
2017年股權激勵計劃我們的2017年股權激勵計劃(我們的"2017 EIP")於2017年7月26日生效，爲員工、董事和顧問提供期權和限制性股票單位的發行。最初爲發行的普通股股票數量是 7,898,159。我們的2017 EIP預留的發行股票數量將自2018年1月1日開始，每年自1月1日自動增加，直至2028年1月1日，增加的股票數量爲不超過 5%我公司上一個12月31日出色普通股數量的比例，或由我們董事會確定的金額中的較小者。根據計劃的每一支股票期權和限制股票單位的期限都不會超過 10 年，每項獎勵一般在 兩個 和 公司使用資產和負債的會計方法來計算所得稅。根據這種方法，根據資產和負債的金融報表及稅基之間的暫時區別，使用實施稅率來決定遞延稅資產和遞延稅負債，該稅率適用於預期差異將反轉的年份。稅法的任何修改對遞延稅資產和負債的影響將於生效日期在財務報告期內確認在彙總的綜合收益報表上。.

我們已經根據我們2017年EIP爲將來發行而預留了普通股。
2024年9月30日2023年12月31日
已發行且尚未行權的期權2,035,795 2,406,453 
未行權的受限股票單位13,367,819 15,947,173 
未來股權授予的股票數量。10,700,678 7,991,532 
爲將來發行而保留的總股份數26,104,292 26,345,158 

2017員工股票購買計劃——我們的2017年員工股票購買計劃（我們的"ESPP"）於2017年7月27日獲得董事會批准，使符合條件的員工以折扣價購買我們普通股。購買將通過參與不同的報價期間完成。我們最初保留 1,600,000 每日爲我們的ESPP發行而保留的普通股數量將自動增加，開始日期爲首次報價日期後的每年1月1日，持續至2028年1月1日，增加數量爲以下兩者之較少值： 1我們的董事會決定的總流通普通股數的%，即之前年度12月31日當日的每股普通股市值較小值或董事會確定的金額。在每個購買日期，符合條件的員工將以每股價格購買我們的普通股，每股價格等於 85（i）報價期間首個交易日我們普通股公允市場價值和（ii）購買日期當天我們普通股公允市場價值兩者的較小值的%購買我們的普通股。

我們已經爲未來根據我們的員工股票購買計劃發行的普通股份保留了如下：
2024年9月30日止九個月
截至2023年12月31日的一年
期初可發行股份4,378,0424,695,361
期間發行股數(386,301)(1,491,040)
期末可發行股份總數3,991,7413,204,321

股票期權—2024年9月30日結束的九個月期權活動如下:
期權數量加權平均行使價加權平均剩餘合同期限（年）聚合內在價值
截至 2024 年 1 月 1 日的未繳稅款
2,406,453$11.14 2.63$3,355 
行使的期權(310,968)8.83 
期權已過期(59,690)7.76 
截至 2024 年 9 月 30 日的未繳款項
2,035,79511.59 2.006,410 
截至 2024 年 9 月 30 日可行使的期權
2,035,79511.59 2.006,410 

我們股票期權的授予日期公平價值按照股票期權的歸屬期進行股權補償確認。截至2024年9月30日，所有未行使的期權已完全歸屬。在截至2024年9月30日的九個月中，我們沒有確認任何與期權相關的支出。

22
基本報表註釋指數
受限股票單位—2024年9月30日結束的九個月內，限制性股票單位的活動如下：
受限股票單位加權平均授予日公允價值
2024年1月1日持有量15,947,173 $9.64 
已行權5,627,462 6.89 
34,105(5,990,918)9.22 
4,114,834(2,215,898)10.88 
截至目前未完成或推遲。 2024年9月30日(1)
13,367,819 8.46 
(1) 從2019年6月獲授的受限股票單位開始，我們的非僱員董事有權選擇延遲領取公共股票，直到這些受限股票單位解禁後，直到 60 不提供服務給我們之日或者更早的365天后，或在發生控制權變更交易時，他們的股票被認定爲解禁的數量，不包括解禁但延遲兌現爲股份的受限股票單位。截至2024年9月30日，作爲未解禁或延遲解禁的數量包括這些受限股票單位。由於不再存在阻止發行這些受限股票單位基礎上的普通股的進一步條件，這些股份包括在用於計算歸屬於普通股的每股淨虧損的基本和稀釋帶權股份中。已延遲發行的股份數量不被視爲重要內容，並未單獨報告，而是包括在我們的綜合中間期權和股東權益（赤字）資產負債表中的股權報酬。

受限制股票單位的授予日期公允價值將在役權期內記錄爲股權補償。截至2024年9月30日，未認領的與受限制股票單位相關的總補償成本爲$84,126 ，預計將在加權平均期內確認。 1.84年。

截至2024年9月30日， 2,484,058 受限制股份單位受限於績效和市場條件（「PSUs」）爲 100目標水平的%，根據我們對績效和市場條件的實際完成情況，PSUs到期後股票的實際數量將從%的目標金額區間內選擇。 0可以降低至0.75%每年200目標金額的%。對於每個PSU接收者，只有在接收者在我們的董事會或其薪酬委員會證明我們已經實現了PSU相關的績效或市場條件，並繼續爲我們提供服務時，授予的股票才會到期。基於績效條件的PSU的股票補償費用是在可能實現績效條件時確認的。對於具有市場條件的PSUs，市場條件反映在授予日公允價值的獎勵中，並且費用在獎勵的期間內確認。

與PSUs相關的股票補償費用如下：
截至9月30日的三個月截至9月30日的九個月
2024202320242023
PSU費用$1,500 $1,224 $2,946 $4,405 
重新評估績效條件的達成(696)(588)(759)(780)
總費用$804 $636 $2,187 $3,625 

補償成本—以如下方式列示的股票補償，扣除棄權以及資本化在網站和軟件開發成本中的金額：
截至9月30日的三個月截至9月30日的九個月
2024202320242023
營業收入成本$2,819 $3,037 $8,603 $10,173 
科技及研發(1)
9,135 8,391 26,092 24,759 
市場營銷1,131 1,337 3,911 3,836 
一般行政5,217 6,035 15,336 16,380 
來自持續經營的股份補償18,302 18,800 53,942 55,148 
來自已停止經營的股份補償(1)
— — — 234 
股權報酬總額$18,302 $18,800 $53,942 $55,382 
（1）扣除2024年6月30日和2023年6月30日三個月結束的租賃修改和終止的租賃合同的$1,064 和 $969 在2024年9月30日和2023年各自資本化的股權補償爲$3,327 和 $3,173 在2024年9月30日和2023年各自的九個月內。

23
基本報表註釋指數
附註12: 歸屬於普通股的持續經營淨虧損每股

普通股每股持續經營淨損失按普通股持續經營淨損失除以普通股權平均持續未競賽數計算。我們有未行權期權，受限制的股票單位，通過我們的ESPP購買股票的期權，可轉換優先股和可轉換的高級票據，這些在計算按摩打臉表時被視爲稀釋的持續運營淨虧損。

我們按照參與證券公司所要求的兩類法分別計算普通股歸屬於每股連續經營基本和攤薄淨虧損。我們認爲我們的可轉換優先股是參與證券。根據兩類法，歸屬於普通股的連續經營淨虧損不分配給優先股，因爲其持有人沒有在損失中分享的合同義務，如第10條所述。

基本和攤薄每股持續經營淨虧損歸屬普通股的計算如下：
截至9月30日的三個月截至9月30日的九個月
2024202320242023
分子：
持續經營的淨虧損$(33,782)$(18,972)$(128,436)$(103,494)
可轉換優先股的分紅(282)(335)(706)(858)
$$(34,064)$(19,307)$(129,142)$(104,352)
分母：
加權平均每股－基本和稀釋(1)
122,876,102 114,592,679 120,553,264 112,141,342 
Other comprehensive income (loss)$(0.28)$(0.17)$(1.07)$(0.93)
(1)基本和攤薄後的加權平均股份包括（i）普通股已獲但尚未發行的，與我們可轉換優先股分紅派息有關的，和（ii）尚未轉換爲普通股但被延遲解決的已獲授的限制性股票單位，由一些非僱員董事自行選擇。

由於其影響會產生反稀釋效應，因此在給定期間未包括在計算每股普通股當期稀釋淨損失中的以下優先股股票。
截至9月30日的三個月截至9月30日的九個月
2024202320242023
2025年的票據好像被轉換了(1)
1,017,284 3,234,293 1,017,284 3,234,293 
2027年的票據好像被轉換了(1)
5,379,209 6,147,900 5,379,209 6,147,900 
可轉換優先股好像被轉換了2,040,000 2,040,000 2,040,000 2,040,000 
未行權股票期權2,035,795 2,653,619 2,035,795 2,653,619 
未行權的受限股票單位(2)(3)
13,276,376 13,605,240 13,276,376 13,605,240 
員工股票購買計劃302,869 333,131 302,869 333,131 
總計24,051,533 28,014,183 24,051,533 28,014,183 
(1) Based on the closing price of our common stock of $12.53 on September 30, 2024, the if-converted values of both convertible notes were less than the principal amounts.
(2) Excludes 2,484,058 incremental PSUs that could vest, assuming applicable performance criteria and market conditions are achieved at 200% of target, which is the maximum achievement level. See Note 11 for additional information regarding PSUs.
(3) Excludes 91,443 restricted stock units that have vested but whose settlement into common stock were deferred at the option of certain non-employee directors as of September 30, 2024.

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Index to Notes to Financial Statements
Note 13: Income Taxes

During the nine months ended September 30, 2024, we recorded an income tax expense of $375 resulting in an effective tax rate of (0.29)%, which is primarily a result of current state income taxes. Our current income tax expense was supplemented by deferred tax expenses associated with increases to indefinite-lived deferred tax liabilities created through the Company’s April 2, 2021 acquisition of Rent., and April 1, 2022 acquisition of Bay Equity. Our September 30, 2023 effective tax rate of (0.85%) with respect to continuing operations, and (0.82)% with respect to our total net loss from both continuing and discontinued operations, is primarily a result of current state taxes which are supplemented by deferred tax expenses associated with increases to indefinite-lived deferred tax liabilities created through the Company’s April 2, 2021 acquisition of Rent., and April 1, 2022 acquisition of Bay Equity.

In determining the realizability of the net U.S. federal and state deferred tax assets, we consider numerous factors including historical profitability, estimated future taxable income, prudent and feasible tax planning strategies, and the industry in which we operate. Management reassesses the realization of the deferred tax assets each reporting period, which resulted in a valuation allowance against the full amount of our U.S. deferred tax assets for the nine months ended September 30, 2024 and 2023. To the extent that the financial results of our U.S. operations improve in the future and the deferred tax assets become realizable, we will reduce the valuation allowance through earnings.

Under Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, substantial changes in our ownership may limit the amount of net operating loss ("NOL") and income tax credit carryforwards that could be utilized annually in the future to offset taxable income and income tax liabilities. Any such annual limitation may significantly reduce the utilization of the NOLs and income tax credits before they expire. A Section 382 limitation study performed as of March 31, 2017 determined that we experienced an ownership change in 2006 with $1,506 of the 2006 NOL and $32 of the 2006 research and development tax credit unavailable for future use. Furthermore, in connection with our acquisition of Rent., Rent. experienced an ownership change that triggered Section 382. As of September 30, 2021, Rent. completed a Section 382 limitation study and, based on this analysis, we do not expect a reduction in the availability of Rent.'s pre-change NOLs.

As of December 31, 2023, we had accumulated approximately $642,212 of federal net operating losses, approximately $32,234 (tax effected) of state net operating losses, and approximately $5,363 of foreign net operating losses. Federal net operating losses are available to offset federal taxable income and begin to expire in 2024, with net operating loss carryforwards of $449,434 generated after 2017 available to offset future U.S. federal taxable income over an indefinite period.

Net research and development credit carryforwards of $23,968 and $23,240 are available as of December 31, 2023 and 2022, respectively, to reduce future liabilities. The research and development credit carryforwards begin to expire in 2026.

Deductible but limited federal business interest expense carryforwards of $149,464 and $145,296 are available as of December 31, 2023 and 2022, respectively, to offset future U.S. federal taxable income over an indefinite period.

Our material income tax jurisdiction is the United States (federal) and Canada (foreign). As a result of NOL carryforwards, we are subject to audit for all tax years for federal and foreign purposes. All tax years remain subject to examination in various other jurisdictions that are not material to our consolidated financial statements.

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Index to Notes to Financial Statements
Note 14: Debt

As of September 30, 2024, outstanding borrowings of our debt are as follows:
Maturity of Debt
Lender
2024
2025
2026
2027
2028
Thereafter
Warehouse Credit Facilities
City National Bank$45,374 $— $— $— $— $— 
Origin Bank48,577 — — — — — 
M&T Bank42,385 — — — — — 
Prosperity Bank72,481 — — — — — 
Term Loan
— — — — 243,646 — 
Convertible Senior Notes
2025 notes— 73,439 — — — — 
2027 notes— — — 498,205 — — 
Total borrowings
$208,817 $73,439 $— $498,205 $243,646 $— 

Warehouse Credit Facilities—To provide capital for the mortgage loans that it originates, our mortgage segment utilizes warehouse credit facilities that are classified as current liabilities on our consolidated balance sheets. Borrowings under each warehouse credit facility are secured by the related mortgage loan, and rights and income related to the loans.

Each warehouse credit facility contains various restrictive and financial covenants and provides that a breach or failure to satisfy these covenants constitutes an event of default.

The following table summarizes borrowings under these facilities as of the periods presented:
September 30, 2024December 31, 2023
LenderBorrowing CapacityOutstanding BorrowingsWeighted-Average Interest Rate on Outstanding BorrowingsBorrowing CapacityOutstanding BorrowingsWeighted-Average Interest Rate on Outstanding Borrowings
City National Bank$50,000 $45,374 6.72 %$50,000 $20,046 7.24 %
Origin Bank75,000 48,577 6.83 %75,000 30,110 7.25 %
M&T Bank50,000 42,385 6.83 %50,000 18,870 7.39 %
Prosperity Bank100,000 72,481 6.75 %75,000 29,358 7.23 %
Republic Bank & Trust CompanyN/AN/AN/A45,000 23,415 7.28 %
Wells Fargo Bank, N.A.N/AN/AN/A100,000 30,165 7.36 %
Total$275,000 $208,817 $395,000 $151,964 

Term Loan—On October 20, 2023, we entered into a definitive agreement with Apollo Capital Management, L.P. and its affiliates (“Apollo”) whereby Apollo agreed to commit up to $250,000 of financing for us in the form of a first lien term loan facility (the “facility”). We borrowed the first half of the facility on October 20, 2023, and the remaining $125,000 was available as a delayed draw term loan. On May 31, 2024, we drew down the remaining $125,000 of the facility.

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Index to Notes to Financial Statements
The facility is pre-payable at par, after 12 months of call protection (during which prepayment would be at 101% of par), or with respect to prepayments made with respect to a change of control, at 101% of par, and carries a five-year term, maturing October 20, 2028. Interest will be charged at the Secured Overnight Financing Rate (“SOFR”) +575 basis points for the first five full fiscal quarters after closing, with step-downs to SOFR +550 basis points and SOFR +525 basis points thereafter upon achieving agreed performance metrics. The facility requires that we maintain cash and cash equivalents of $75,000 which is tested on a quarterly basis. The negative covenants include restrictions on the incurrence of liens and indebtedness, investments, certain merger transactions, and other matters, all subject to certain exceptions. The effective interest rate for our term loan is 12.13%.

The facility includes customary events of default that, include among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of certain covenants, cross default to certain other indebtedness, bankruptcy and insolvency events, material judgments, change of control, and certain material ERISA events. The occurrence of an event of default could result in the acceleration of the obligations under the facility. In addition, the facility prohibits us from making any cash payments on the conversion or repurchase of our notes if an event of default exists under our term loan facility, or if, after giving effect to such conversion or repurchase, we would not be in compliance with the financial covenants under our term loan facility.

As security for our obligations under the facility, we granted Apollo a first priority security interest on substantially all of our assets and the assets of our material subsidiaries, subject to certain exceptions. Therefore, in a bankruptcy, Apollo first, and the holders of our convertible senior notes second, would have a claim to our assets senior to the claims of holders of our common stock.

As part of the transaction, we repurchased $5,000 principal amount of our 2025 convertible notes held by Apollo and $71,894 principal amount of 2027 convertible notes held by Apollo for an aggregate repurchase price of $57,075 using cash on our balance sheet. Additionally, we paid $2,471 in debt issuance costs in connection with the Apollo term loan, which is currently recorded in prepaid expenses on our consolidated balance sheet.

The components of the term loan were as follows:
September 30, 2024
Aggregate Principal AmountUnamortized Debt DiscountUnamortized Debt Issuance CostsNet Carrying Amount
$248,125 $2,745 $1,734 $243,646 
December 31, 2023
Aggregate Principal AmountUnamortized Debt DiscountUnamortized Debt Issuance CostsNet Carrying Amount
$124,688 $— $272 $124,416 

Convertible Senior Notes—We have issued convertible senior notes with the following characteristics:
IssuanceMaturity DateStated Cash Interest RateEffective Interest RateFirst Interest Payment DateSemi-Annual Interest Payment DatesConversion Rate
2025 notesOctober 15, 2025— %0.42 %——13.7920
2027 notesApril 1, 20270.50 %0.90 %October 1, 2021April 1; October 110.6920

We issued our 2025 notes on October 20, 2020, with an aggregate principal amount of $661,250. In the three months ended September 30, 2024, we did not repurchase any of our 2025 notes. In the nine months ended September 30, 2024, we repurchased and retired approximately $119,686 in aggregate principal amount of our 2025 notes at a price of $106,953 using available cash. In connection with these repurchases, we recorded a gain on extinguishment of debt of $12,000 for the nine months ended September 30, 2024.

We issued our 2027 notes on March 25, 2021 and April 5, 2021, with an aggregate principal amount of $575,000.
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Index to Notes to Financial Statements

The components of our convertible senior notes were as follows:
September 30, 2024
IssuanceAggregate Principal Amount Unamortized Debt Issuance CostsNet Carrying Amount
2025 notes$73,759 $320 $73,439 
2027 notes503,106 4,901 498,205 
December 31, 2023
IssuanceAggregate Principal AmountUnamortized Debt Issuance CostsNet Carrying Amount
2025 notes$193,445 $1,443 $192,002 
2027 notes503,106 6,371 496,735 
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
2023 notes
Contractual interest expense$— $17 $— $223 
Amortization of debt issuance costs— 5 — 81 
Total interest expense$— $22 $— $304 
2025 notes
Contractual interest expense— — — — 
Amortization of debt issuance costs76 590 1,123 4,052 
Total interest expense$76 $590 $1,123 $4,052 
2027 notes
Contractual interest expense629 719 1,887 2,156 
Amortization of debt issuance costs490 560 1,470 1,680 
Total interest expense$1,119 $1,279 $3,357 $3,836 
Total
Contractual interest expense629 736 1,887 2,379 
Amortization of debt issuance costs566 1,155 2,593 5,813 
Total interest expense$1,195 $1,891 $4,480 $8,192 

Conversion of Our Convertible Senior Notes

Prior to the free conversion date, a holder of each tranche of our convertible senior notes may convert its notes in multiples of $1,000 principal amount only if one or more of the conditions described below is satisfied. On or after the free conversion date, a holder may convert its notes in such multiples without any conditions. The free conversion date is July 15, 2025 for our 2025 notes and January 1, 2027 for our 2027 notes.

The conditions are:
•during any calendar quarter (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day;
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Index to Notes to Financial Statements
•during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the applicable notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the applicable conversion rate on each such trading day;
•if we call any or all of the applicable notes for redemption, at any time prior to the close of business on the scheduled trading day prior to the redemption date; or
•upon the occurrence of specified corporate events.

We intend to settle any future conversions of our convertible senior notes by paying or delivering, as the case may be, cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election. We apply the if-converted method to calculate diluted earnings per share when applicable. Under the if-converted method, the denominator of the diluted earnings per share calculation is adjusted to reflect the full number of common shares issuable upon conversion, while the numerator is adjusted to add back interest expense for the period. None of the above conditions were satisfied during the three months ended September 30, 2024.

Classification of Our Convertible Senior Notes

All of our convertible senior notes are accounted for as liabilities. The difference between the principal amount of the notes and the net carrying amount represents the unamortized debt discount, which we record as a deduction from the debt liability in our consolidated balance sheets. This discount is amortized to interest expense using the effective interest method over the term of the notes.

See Note 4 for fair value information related to our convertible senior notes.

Cross-acceleration and Cross-default Provisions of our Convertible Senior Notes, Term Loan, and Warehouse Credit Facilities—The indentures governing our 2025 and 2027 convertible senior notes contain cross-acceleration and cross-default provisions. These provisions could have the effect of creating an event of default under the indenture for either our 2025 or 2027 convertible senior notes, despite our compliance with that agreement, due solely to an event of default or failure to pay amounts owed under the indenture for the other tranche of convertible senior notes. Accordingly, all or a significant portion of our outstanding convertible senior notes could become immediately payable due solely to our failure to comply with the terms of a single agreement governing either our 2025 or 2027 convertible senior notes. In addition, each of our warehouse credit facilities and term loan facility contain cross-acceleration and cross-default provisions. These provisions could have the effect of creating an event of default under the agreement for any such facility, despite our compliance with that agreement, due solely to an event of default or failure to pay amounts owed under the agreement for another facility. Accordingly, all or a significant portion of our outstanding warehouse indebtedness or outstanding term loan indebtedness could become immediately payable due solely to our failure to comply with the terms of a single agreement governing one of our facilities. While the cross-default provisions in our existing warehouse credit facilities do not pick up defaults under our convertible senior notes and our existing warehouse credit facilities are carved out of the cross-payment default provisions in our 2025 and 2027 senior notes given that they constitute non-recourse debt, any default under our convertible senior notes would trigger an event of default under our term loan facility and, similarly, any default under our term loan facility would trigger the cross-payment default provisions in our 2025 and 2027 senior notes.

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Index to Notes to Financial Statements
2027 Capped Calls—In 2021, and in connection with the pricing of our 2027 notes, we entered into capped call transactions with certain counterparties (the “2027 capped calls”). The 2027 capped calls have initial strike prices of $93.53 per share and initial cap prices of $138.56 per share, in each case subject to certain adjustments. Conditions that cause adjustments to the initial strike price and initial cap price of the 2027 capped calls are similar to the conditions that result in corresponding adjustments to the conversion rate for our 2027 notes. The 2027 capped calls cover, subject to anti-dilution adjustments, 6,147,900 shares of our common stock and are generally intended to reduce or offset the potential dilution to our common stock upon any conversion of the 2027 notes, with such reduction or offset, as the case may be, subject to a cap based on the cap price. The 2027 capped calls are separate transactions, and not part of the terms of our 2027 notes. As these instruments meet certain accounting criteria, the 2027 capped calls are recorded in stockholders’ (deficit) equity and are not accounted for as derivatives. The cost of $62,647 incurred in connection with the 2027 capped calls was recorded as a reduction to additional paid-in capital.

Note 15: Subsequent Events

On October 29th, 2024 we entered into a seven year contract with Amazon Web Services, Inc. for cloud computing services. The contract contains a minimum spend commitment of $240,000 over the contract period and replaces our existing contract with Amazon Web Services, Inc.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements, the accompanying notes, and other information included in this quarterly report and our annual report for the year ended December 31, 2023. In particular, the disclosure contained in Item 1A in our annual report, as updated by Part II, Item 1A in our quarterly report for the quarter ended March 31, 2024, may reflect trends, demands, commitments, events, or uncertainties that could materially impact our results of operations and liquidity and capital resources.

The following discussion contains forward-looking statements, such as 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. Please see "Note Regarding Forward-Looking Statements" for more information about relying on these forward-looking statements. The following discussion also contains information using industry publications. Please see "Note Regarding Industry and Market Data" for more information about relying on these industry publications.

When we use the term "basis points" in the following discussion, we refer to units of one-hundredth of one percent.

Overview

We help people buy and sell homes. Representing customers in approximately 100 markets in the United States and Canada, we are a residential real estate brokerage. We pair our own agents with our own technology to create a service that is faster, better, and costs less. We meet customers through our listings-search website and mobile application.

We use the same combination of technology and local service to originate and service mortgage loans and offer title and settlement services. We use digital platforms to connect consumers with available apartments and houses for rent.

Our mission is to redefine real estate in the consumer’s favor.

Adverse Macroeconomic Conditions and Our Associated Actions

Beginning in the second quarter of 2022 and continuing through the third quarter of 2024, a number of economic factors adversely impacted the residential real estate market, including higher mortgage interest rates, lower consumer sentiment, and increased inflation. This shift in the macroeconomic backdrop adversely impacted consumer demand for our services, as consumers weighed the financial implications of selling or purchasing a home and taking out a mortgage.

In response to these macroeconomic and consumer demand developments, we took action to adjust our operations and manage our business towards longer-term profitability despite these adverse macroeconomic factors.

From April 2022, after completing the acquisition of Bay Equity, through December 2023, through involuntary reductions and attrition, we reduced our total number of employees by 40%, including a reduction in lead agents of 40%. These workforce reductions were intended to align the size of our operations with the level of consumer demand for our services at that time.

In November of 2022, we decided to wind-down our properties segment, which included RedfinNow. This was a strategic decision we made in order to focus our resources on our core business in the face of the rising cost of capital. We completed the wind-down of our properties segment in the second quarter of 2023. Results for the properties segment are now reported in discontinued operations for all periods presented. The following discussion and analysis of our financial condition and results of operations include our continued operations for all periods presented.

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Numerous lawsuits have been filed on behalf of putative classes of homebuyers and home sellers against the National Association of Realtors (“NAR”), local real estate associations, multiple listing services, and various residential real estate brokerages in various federal districts in the United States. Some of these lawsuits name Redfin as a defendant.

On March 15, 2024, NAR entered a settlement agreement to resolve, on a class wide basis, the claims filed against NAR on behalf of putative classes of home sellers. In addition to a monetary payment of $418 million, NAR agreed to change certain business practices, including changes to cooperative compensation and buyer agreements. The NAR settlement agreement: (1) prohibits NAR and REALTOR® MLSs from requiring that listing brokers or sellers make offers of compensation to buyer brokers or other buyer representatives; (2) prohibits NAR, REALTOR® MLSs and MLS participants from making an offer of compensation on the MLS; and (3) requires all REALTOR® MLS participants to enter into a written buyer agreement specifying compensation before taking a buyer on tour.

These practice changes were implemented by August 17, 2024. It is unclear what impact these practice changes will have on our industry. It is possible that these changes, combined with increasing consumer awareness, may put downward pressure on the percentage commissions paid to buyers’ agents.

On May 3, 2024, we entered into a Proposed Settlement and on June 26, 2024, we signed the Settlement Agreement for a total of $9.25 million to resolve the Gibson Action and the Umpa Action and similar claims on behalf of home sellers against Redfin on a nationwide basis. Redfin paid the $9.25 million into a qualified settlement fund on August 26, 2024. On July 15, 2024, the United States District Court for the Western District of Missouri issued an Order Granting Preliminary Approval of the Settlement Agreement and the court entered an Order granting final approval of the Settlement Agreement on November 4, 2024. The Settlement Agreement will become effective when the time period for filing an appeal expires without any appeals having been filed or, if an appeal is filed, when the Settlement Agreement is ultimately approved by the court of last resort through that appeal process. The deadline to file an appeal is December 4, 2024, and no appeal has been filed as of November 6, 2024.

See Note 7 to our consolidated financial statements for descriptions of these cases and their potential impact.

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Key Business Metrics

In addition to the measures presented in our consolidated financial statements, we use the following key metrics to evaluate our business, develop financial forecasts, and make strategic decisions.
Three Months Ended
Sep. 30, 2024Jun. 30, 2024Mar. 31, 2024Dec. 31, 2023Sep. 30, 2023Jun. 30, 2023Mar. 31, 2023Dec. 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
Brokerage13,324 14,178 10,039 10,152 13,075 13,716 10,301 12,743 
Partner3,440 3,395 2,691 3,186 4,351 3,952 3,187 2,742 
Total16,764 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 
Partner3,025 2,859 2,367 2,684 2,677 2,756 2,592 2,611 
Aggregate10,447 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 revenue56 %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 

Monthly Average Visitors

The number of, and growth in, visitors to our website and mobile application are important leading indicators of our business activity because these channels are the primary ways we meet customers. The number of visitors is influenced by, among other things, market conditions that affect interest in buying or selling homes, the level and success of our marketing programs, seasonality, and how our website appears in search results. We believe we can continue to increase visitors, which helps our growth.

Given the lengthy process to buy or sell a home, a visitor during one month may not convert to a revenue-generating customer until many months later, if at all.

When we refer to "monthly average visitors" for a particular period, we are referring to the average number of unique visitors to our website and our mobile applications for each of the months in that period, as measured by Google Analytics, a product that provides digital marketing intelligence. Google Analytics tracks visitors using cookies, with a unique cookie being assigned to each browser or mobile application on a device. For any given month, Google Analytics counts all of the unique cookies that visited our website and mobile applications during that month. Google Analytics considers each unique cookie as a unique visitor. Due to third-party technological limitations, user software settings, or user behavior, it is possible that Google Analytics may assign a unique cookie to different visits by the same person to our website or mobile application. In such instances, Google Analytics would count different visits by the same person as separate visits by unique visitors. Accordingly, reliance on the number of unique cookies counted by Google Analytics may overstate the actual number of unique persons who visit our website or our mobile applications for a given month.

Our monthly average visitors exclude visitors to Rent.'s websites and mobile applications.

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Real Estate Services Transactions

We record a brokerage real estate services transaction when one of our lead agents represented the homebuyer or home seller in the purchase or sale, respectively, of a home. We record a partner real estate services transaction (i) when one of our partner agents represented the homebuyer or home seller in the purchase or sale, respectively, of a home or (ii) when a Redfin customer sold his or her home to a third-party institutional buyer following our introduction of that customer to the buyer. We include a single transaction twice when our lead agents or our partner agents serve both the homebuyer and the home seller of the transaction. Additionally, when one of our lead agents represents RedfinNow in its sale of a home, we include that transaction as a brokerage real estate services transaction. We completed the wind-down of our RedfinNow business in the second quarter of 2023.

Increasing the number of real estate services transactions is critical to increasing our revenue and, in turn, to achieving profitability. Real estate services transaction volume is influenced by, among other things, the pricing and quality of our services as well as market conditions that affect home sales, such as local inventory levels and mortgage interest rates. Real estate services transaction volume is also affected by seasonality and macroeconomic factors.

Real Estate Services Revenue per Transaction

Real estate services revenue per transaction, together with the number of real estate services transactions, is a factor in evaluating revenue growth. We also use this metric to evaluate pricing changes. Changes in real estate services revenue per transaction can be affected by, among other things, our pricing, the mix of transactions from homebuyers and home sellers, changes in the value of homes in the markets we serve, the geographic mix of our transactions, and the transactions we refer to partner agents and any third-party institutional buyer. We calculate real estate services revenue per transaction by dividing brokerage, partner, or aggregate revenue, as applicable, by the corresponding number of real estate services transactions in any period.

We generally generate more real estate services revenue per transaction from representing homebuyers than home sellers. However, we believe that representing home sellers has unique strategic value, including the marketing power of yard signs and other campaigns, and the market effect of controlling listing inventory.

Prior to July 2022, homebuyers who purchased their home using our brokerage services would receive a commission refund in a substantial majority of our markets. In July 2022, we began a pilot program in certain of those markets to eliminate our commission refund. Since this pilot was successful, we eliminated the standard commission refund we had historically provided in all markets in December 2022. The average refund per transaction for a homebuyer was $1,336 in 2022. The elimination of this commission refund increased our real estate services revenue per transaction in 2023, although this metric is also impacted by the factors discussed above. In September 2023, we began a pilot program in certain markets to provide a refund to homebuyers who sign a buyer agency agreement with us before their second home tour. We expanded this pilot program to more markets in the first quarter of 2024.

Beginning in August 2024, we set our fees for homebuyers based on prevailing competitive dynamics and customer response in the geographical regions where we operate. We further offer a discount to homebuyers who agree to work with our lead agents early in their home buying process. These direct fees are reflected in our real estate revenue per transaction for homebuyers.

U.S. Market Share by Units

Increasing our U.S. market share by units is critical to our ability to grow our business and achieve profitability over the long term. We believe there is a significant opportunity to increase our share in the markets we currently serve.

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We calculate our market share by aggregating the number of brokerage and partner real estate services transactions. We then divide that number by two times the aggregate number of U.S. home sales, in order to account for both the sell- and buy-side components of each home sale. We obtain the aggregate number of U.S. home sales from the National Association of REALTORS® ("NAR"). NAR data for the most recent period is preliminary and may subsequently be updated.

Revenue from Top-10 Markets as a Percentage of Real Estate Services Revenue

Our top-10 markets by real estate services revenue are the metropolitan areas of Boston, Chicago, Denver, Los Angeles (including Santa Barbara), Maryland, Northern Virginia, Portland (including Bend), San Diego, San Francisco, and Seattle. This metric is an indicator of the geographic concentration of our real estate services segment. We expect our revenue from top-10 markets to decline as a percentage of our total real estate services revenue over time.

Average Number of Lead Agents

The average number of lead agents, in combination with our other key metrics such as the number of brokerage transactions, is a basis for calculating agent productivity and is one indicator of the potential future growth of our business. We systematically evaluate traffic to our website and mobile application and customer activity to anticipate changes in customer demand, helping determine when and where to hire lead agents.

We calculate the average number of lead agents by taking the average of the number of lead agents at the end of each month included in the period.

Mortgage Originations

Mortgage originations is the volume of mortgage loans originated by our mortgage business, measured by both dollar value of loans and number of loans. This volume is an indicator for the growth of our mortgage business. Mortgage originations, including refinancings, are affected by mortgage interest rates, the ability of our mortgage loan officers to close loans, and the number of our homebuyer customers who use our mortgage business for a mortgage loan, among other factors.

Components of Our Results of Operations

Revenue

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.

Real Estate Services Revenue

Brokerage Revenue—Brokerage revenue includes our offer and listing services, where our lead agents represent homebuyers and home sellers. We recognize commission-based brokerage revenue upon closing of a brokerage transaction, less the amount of any commission refunds, closing-cost reductions, or promotional offers that may result in a material right. Brokerage revenue is affected by the number of brokerage transactions we close, the mix of brokerage transactions, home-sale prices, commission rates, and the amount we give to customers.

Partner Revenue—Partner revenue consists of fees paid to us from partner agents or under other referral agreements, less the amount of any payments we make to homebuyers and home sellers. We recognize these fees as revenue on the closing of a transaction. Partner revenue is affected by the number of partner transactions closed, home-sale prices, commission rates, and the amount we refund to customers. If the portion of customers we introduce to our own lead agents increases, we expect the portion of revenue closed by partner agents to decrease.

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Rentals Revenue

Rentals Revenue—Rentals revenue is primarily composed of subscription-based product offerings for internet listing services, as well as lead management and digital marketing solutions. Rentals revenue is affected by the number of product offerings sold, pricing for each product, customer retention, and the mix of product offerings sold to our customers.

Mortgage Revenue

Mortgage Revenue—Mortgage revenue includes fees from the origination and subsequent sale of loans, loan servicing income, interest income on loans held for sale, origination of IRLCs, and the changes in fair value of our IRLCs, forward sales commitments, loans held for sale, and MSRs. Mortgage revenue is affected by loan volume, loan pricing, and market factors that impact the fair value of our MSRs and loans held for sale.

Other Revenue

Other Revenue—Other services revenue includes fees earned from title settlement services, Walk Score data services, and advertising. Substantially all fees and revenue from other services are recognized when the service is provided.

Cost of Revenue and Gross Margin

Cost of revenue consists primarily of personnel costs (including base pay, benefits, and stock-based compensation), transaction bonuses, home-touring and field expenses, listing expenses, customer fulfillment costs related to our rentals segment, office and occupancy expenses, interest expense on our mortgage related warehouse facilities, and depreciation and amortization related to fixed assets and acquired intangible assets.

Gross profit is revenue less cost of revenue. Gross margin is gross profit expressed as a percentage of revenue. Our gross margin has and will continue to be affected by a number of factors, but the most important are the mix of revenue from our segments, real estate services revenue per transaction, agent and support-staff productivity, and personnel costs and transaction bonuses.

Operating Expenses

Technology and Development

Our primary technology and development expenses are building software for our customers, lead agents, and support staff to work together on a transaction, and building a website and mobile application to meet customers looking to move. These expenses primarily include personnel costs (including base pay, bonuses, benefits, and stock-based compensation), data licenses, software and equipment, and infrastructure such as for data centers and hosted services. The expenses also include amortization of capitalized internal-use software and website and mobile application development costs as well as amortization of acquired intangible assets. We expense research and development costs as incurred and record them in technology and development expenses.

Marketing

Marketing expenses consist primarily of media costs for online and offline advertising, as well as personnel costs (including base pay, benefits, and stock-based compensation).

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General and Administrative

General and administrative expenses consist primarily of personnel costs (including base pay, benefits, and stock-based compensation), facilities costs and related expenses for our executive, finance, human resources, and legal organizations, depreciation related to our fixed assets, and fees for outside services. Outside services are principally composed of external legal, audit, and tax services. For our rentals business, personnel costs include employees in the sales department. These employees are responsible for attracting potential rental properties and agreeing to contract terms, but they are not responsible for delivering a service to the rental property.

Restructuring and Reorganization

Restructuring and reorganization expenses consist primarily of personnel-related costs associated with employee terminations, furloughs, or retention payments associated with wind-down activities.

Interest Income, Interest Expense, Income Tax Expense, Gain on Extinguishment of Convertible Senior Notes, and Other Expense, Net

Interest Income

Interest income consists primarily of interest earned on our cash, cash equivalents, and investments, and interest income related to originated mortgage loans.

Interest Expense

Interest expense consists primarily of interest payable and the amortization of debt discounts and issuance costs related to our convertible senior notes and term loan. See Note 14 to our consolidated financial statements for information regarding interest on our convertible senior notes.

Interest expense also includes interest on borrowings and the amortization of debt issuance costs related to our warehouse credit facilities. See Note 14 to our consolidated financial statements for information regarding interest for the facility.

Income Tax Expense

Income tax expense primarily relates to federal, state, and local taxes recorded.

Gain on Extinguishment of Convertible Senior Notes

Gain on extinguishment of convertible senior notes relates to gains recognized on the repurchase of our convertible senior notes. See Note 14 to our consolidated financial statements for information regarding our convertible senior notes.

Other Expense, Net

Other expense, net consists primarily of realized and unrealized gains and losses on investments and other assets, including impairment costs on our subleases. See Note 4 to our consolidated financial statements for information regarding unrealized gains and losses on our investments.

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Results of Operations

The following tables set forth our results of operations for the periods presented and as a percentage of our revenue for those periods.
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(in thousands)
Revenue$278,015 $268,956 $798,697 $758,595 
Cost of revenue(1)
176,152 170,616 516,436 501,927 
Gross profit101,863 98,340 282,261 256,668 
Operating expenses
Technology and development(1)
40,332 44,392 128,976 139,196 
Marketing(1)
27,186 24,095 92,324 97,531 
General and administrative(1)
58,788 55,380 181,366 186,584 
Restructuring and reorganization2,509 — 4,732 7,159 
Total operating expenses
128,815 123,867 407,398 430,470 
Loss from continuing operations(26,952)(25,527)(125,137)(173,802)
Interest income
1,839 2,060 5,132 8,170 
Interest expense
(8,537)(1,603)(19,497)(5,291)
Income tax expense12 (239)(375)(882)
Gain on extinguishment of convertible senior notes— 6,495 12,000 68,848 
Other expense, net(144)(158)(559)(537)
Net loss from continuing operations$(33,782)$(18,972)$(128,436)$(103,494)

(1) Includes stock-based compensation as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(in thousands)
Cost of revenue$2,819 $3,037 $8,603 $10,173 
Technology and development9,135 8,391 26,092 24,759 
Marketing1,131 1,337 3,911 3,836 
General and administrative5,217 6,035 15,336 16,380 
Total stock-based compensation from continuing operations$18,302 $18,800 $53,942 $55,148 
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(as a percentage of revenue)
Revenue100.0 %100.0 %100.0 %100.0 %
Cost of revenue(1)
63.4 63.4 64.7 66.2 
Gross profit36.6 36.6 35.3 33.8 
Operating expenses
Technology and development(1)
14.5 16.5 16.1 18.3 
Marketing(1)
9.8 9.0 11.6 12.9 
General and administrative(1)
21.1 20.6 22.7 24.6 
Restructuring0.9 0.0 0.6 0.9 
Total operating expenses46.3 46.1 51.0 56.7 
Loss from continuing operations(9.7)(9.5)(15.7)(22.9)
Interest income
0.7 0.8 0.6 1.1 
Interest expense
(3.1)(0.6)(2.4)(0.7)
Income tax expense— (0.1)— (0.1)
Gain on extinguishment of convertible senior notes— 2.4 1.5 9.1 
Other expense, net(0.1)(0.1)(0.1)(0.1)
Net loss from continuing operations(12.2)%(7.1)%(16.1)%(13.6)%
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(1) Includes stock-based compensation as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
(as a percentage of revenue)
Cost of revenue1.0 %1.1 %1.1 %1.3 %
Technology and development3.3 3.1 3.3 3.3 
Marketing0.4 0.5 0.5 0.5 
General and administrative1.9 2.3 1.9 2.2 
Total6.6 %7.0 %6.8 %7.3 %

Comparison of the Three Months Ended September 30, 2024 and 2023

Revenue
Three Months Ended September 30,Change
20242023DollarsPercentage
(in thousands, except percentages)
Real estate services
Brokerage$164,729 $166,104 $(1,375)(1)%
Partner10,407 11,646 (1,239)(11)
Total real estate services175,136 177,750 (2,614)(1)
Rentals51,660 47,410 4,250 9 
Mortgage35,621 32,923 2,698 8 
Other15,598 10,873 4,725 43 
Total revenue$278,015 $268,956 $9,059 3 
Percentage of revenue
Real estate services
Brokerage59.3 %61.8 %
Partner3.7 4.3 
Total real estate services63.0 66.1 
Rentals18.6 17.6 
Mortgage12.8 12.2 
Other5.6 4.1 
Total revenue100.0 %100.0 %

In the three months ended September 30, 2024, revenue increased by $9.1 million, or 3%, as compared with the same period in 2023. This increase in revenue was primarily attributable to a $4.7 million increase in other segment revenue, a $4.3 million increase in rentals revenue, and a $2.7 million increase in mortgage revenue. This was partially offset by a $2.6 million decrease in real estate services revenue. Brokerage revenue decreased by $1.4 million, and partner revenue decreased by $1.2 million. Brokerage revenue decreased 1% during the period, driven by a 2% increase in brokerage transactions and a 3% decrease in brokerage revenue per transaction.

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Cost of Revenue and Gross Margin
Three Months Ended September 30,
Change
20242023
Dollars
Percentage
(in thousands, except percentages)
Cost of revenue
Real estate services$126,421 $123,684 $2,737 2 %
Rentals12,366 10,824 1,542 14 
Mortgage30,214 29,629 585 2 
Other7,151 6,479 672 10 
Total cost of revenue$176,152 $170,616 $5,536 3 
Gross profit
Real estate services$48,715 $54,066 $(5,351)(10)%
Rentals39,294 36,586 2,708 7 
Mortgage5,407 3,294 2,113 64 
Other8,447 4,394 4,053 92 
Total gross profit$101,863 $98,340 $3,523 4 
Gross margin (percentage of revenue)
Real estate services27.8 %30.4 %
Rentals76.1 77.2 
Mortgage15.2 10.0 
Other54.2 40.4 
Total gross margin36.6 36.6 

In the three months ended September 30, 2024, total cost of revenue increased by $5.5 million, or 3%, as compared with the same period in 2023. This increase in cost of revenue was primarily attributable to a $5.0 million increase in personnel costs, transaction bonuses, and home-touring and field expenses.

In the three months ended September 30, 2024, total gross margin was unchanged as compared with the same period in 2023, driven primarily by increases in mortgage and other gross margins, and the relative growth of our rentals business compared to our other businesses. This was partially offset by a decrease in real estate services and rentals gross margins.

In the three months ended September 30, 2024, real estate services gross margin decreased 260 basis points as compared with the same period in 2023. This was primarily attributable to a 500 basis point increase in personnel costs and transaction bonuses, partially offset by a 220 basis point decrease in home-touring and field expenses, each as a percentage of revenue, as we have eliminated compensation for home-touring and field expenses and replaced it with transaction bonuses for some employee agents.

In the three months ended September 30, 2024, rentals gross margin decreased 110 basis points as compared with the same period in 2023.

In the three months ended September 30, 2024, mortgage gross margin increased 520 basis points as compared with the same period in 2023. This was primarily attributable to a 360 basis point decrease in personnel costs and transaction bonuses and a 150 basis point decrease in office and occupancy expenses, each as a percentage of revenue.

In the three months ended September 30, 2024, other gross margin increased 1,380 basis points as compared with the same period in 2023. This was primarily attributable to a 690 basis point decrease in personnel costs and transaction bonuses as a percentage of revenue, driven by revenue growth.

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Operating Expenses
Three Months Ended September 30,
Change
20242023DollarsPercentage
(in thousands, except percentages)
Technology and development$40,332 $44,392 $(4,060)(9)%
Marketing27,186 24,095 3,091 13 
General and administrative58,788 55,380 3,408 6 
Restructuring2,509 — 2,509 N/A
Total operating expenses$128,815 $123,867 $4,948 4 
Percentage of revenue
Technology and development14.5 %16.5 %
Marketing9.8 9.0 
General and administrative21.1 20.6 
Restructuring and reorganization0.9 0.0 
Total operating expenses46.3 %46.1 %

In the three months ended September 30, 2024, technology and development expenses decreased by $4.1 million, or 9%, as compared with the same period in 2023. The decrease was primarily attributable to a $4.3 million decrease in amortization expense, as the intangible technology assets acquired with Rent. completed their amortization.

In the three months ended September 30, 2024, marketing expenses increased by $3.1 million, or 13%, as compared with the same period in 2023. The increase was primarily attributable to a $3.7 million increase in marketing media costs. This was partially offset by a $0.7 million decrease in personnel costs.

In the three months ended September 30, 2024, general and administrative expenses increased by $3.4 million, or 6%, as compared with the same period in 2023. This was primarily attributable to a $1.0 million increase in legal settlements, and a $1.1 million increase in legal services expenses.

In the three months ended September 30, 2024, restructuring and reorganization expenses increased by $2.5 million as compared with the same period in 2023.

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Interest Income, Interest Expense, Income Tax Expense, Gain on Extinguishment of Convertible Senior Notes, and Other Expense, Net
Three Months Ended September 30,Change
20242023DollarsPercentage
(in thousands, except percentages)
Interest income$1,839 $2,060 $(221)(11)%
Interest expense(8,537)(1,603)(6,934)433 
Income tax expense12 (239)251 (105)
Gain on extinguishment of convertible senior notes— 6,495 (6,495)(100)
Other expense, net(144)(158)14 (9)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible notes, and other expense, net$(6,830)$6,555 $(13,385)(204)
Percentage of revenue
Interest income0.7 %0.8 %
Interest expense(3.1)(0.6)
Income tax expense0.0 (0.1)
Gain on extinguishment of convertible senior notes0.0 2.4 
Other expense, net(0.1)(0.1)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible notes, and other expense, net(2.5)%2.4 %

In the three months ended September 30, 2024, interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net decreased by $13.4 million as compared to the same period in 2023.

Interest expense increased by $6.9 million due primarily to interest on our term loan, which we did not have in the same period in 2023. See Note 14 to our consolidated financial statements for further information.

Gain on extinguishment of convertible senior notes decreased by $6.5 million, as we did not pay down any portion of our 2025 notes at a discount in the current period, where we had such activity in the same period in 2023. See Note 14 to our consolidated financial statements for further information on these transactions.

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Comparison of the Nine Months Ended September 30, 2024 and 2023

Revenue

Nine Months Ended September 30,Change
20242023DollarsPercentage
(in thousands, except percentages)
Real estate services
Brokerage$467,402 $454,888 $12,514 3 %
Partner26,483 30,799 (4,316)(14)
Total real estate services493,885 485,687 8,198 2 
Rentals152,105 135,636 16,469 12 
Mortgage109,619 107,838 1,781 2 
Other43,088 29,434 13,654 46 
Total revenue$798,697 $758,595 $40,102 5 
Percentage of revenue
Real estate services
Brokerage58.5 %60.0 %
Partner3.3 4.1 
Total real estate services61.8 64.1 
Rentals19.0 17.9 
Mortgage13.7 14.2 
Other5.5 3.8 
Total revenue100.0 %100.0 %

In the nine months ended September 30, 2024, revenue increased by $40.1 million, or 5%, as compared with the same period in 2023. This increase in revenue was primarily attributable to a $16.5 million increase in rentals revenue, a $13.7 million increase in other segment revenue, and an $8.2 million increase in real estate services revenue. Brokerage revenue increased by $12.5 million, and partner revenue decreased by $4.3 million. Brokerage revenue increased 3% during the period, driven by a 1% increase in brokerage transactions and a 2% increase in brokerage revenue per transaction.

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Cost of Revenue and Gross Margin
Nine Months Ended September 30,
Change
20242023
Dollars
Percentage
(in thousands, except percentages)
Cost of revenue
Real estate services$371,198 $359,625 $11,573 3 %
Rentals35,453 31,016 4,437 14 
Mortgage88,646 93,108 (4,462)(5)
Other21,139 18,178 2,961 16 
Total cost of revenue$516,436 $501,927 $14,509 3 
Gross profit
Real estate services$122,687 $126,062 $(3,375)(3)%
Rentals116,652 104,620 12,032 12 
Mortgage20,973 14,730 6,243 42 
Other21,949 11,256 10,693 95 
Total gross profit$282,261 $256,668 $25,593 10 
Gross margin (percentage of revenue)
Real estate services24.8 %26.0 %
Rentals76.7 77.1 
Mortgage19.1 13.7 
Other50.9 38.2 
Total gross margin35.3 33.8 

In the nine months ended September 30, 2024, total cost of revenue increased by $14.5 million, or 3%, as compared with the same period in 2023. This increase in cost of revenue was primarily attributable to a $9.6 million increase in personnel costs, transactions bonuses, and home-touring and field expenses, and a $4.4 million increase in home improvement costs incurred on behalf of home sellers.

In the nine months ended September 30, 2024, total gross margin increased 150 basis points as compared with the same period in 2023, driven primarily by increases in mortgage, and other gross margins, and the relative growth of our rentals business compared to our other businesses. This was partially offset by decreases in real estate services and rentals gross margins.

In the nine months ended September 30, 2024, real estate services gross margin decreased 120 basis points as compared with the same period in 2023. This was primarily attributable to a 280 basis point increase in personnel costs and transaction bonuses, partially offset by a 230 basis point decrease in home-touring and field expenses, each as a percentage of revenue, as we have eliminated compensation for home-touring and field expenses and replaced it with transaction bonuses for some employee agents. In addition, the increase was attributable to a 90 basis point increase in home improvement costs incurred on behalf of home sellers as a percentage of revenue. This was partially offset by a 70 basis point decrease in costs from our in-person company event, which we did not conduct in 2024.

In the nine months ended September 30, 2024, rentals gross margin decreased 40 basis points as compared with the same period in 2023.

In the nine months ended September 30, 2024, mortgage gross margin increased 540 basis points as compared with the same period in 2023. This was primarily attributable to a 230 basis point decrease in personnel costs and transaction bonuses and a 180 basis point decrease in production costs, each as a percentage of revenue.

In the nine months ended September 30, 2024, other gross margin increased 1,270 basis points as compared with the same period in 2023. This was primarily attributable to a 730 basis point decrease in personnel costs and transaction bonuses as a percentage of revenue, driven by revenue growth.
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Operating Expenses
Nine Months Ended September 30,
Change
20242023DollarsPercentage
(in thousands, except percentages)
Technology and development$128,976 $139,196 $(10,220)(7)%
Marketing92,324 97,531 (5,207)(5)
General and administrative181,366 186,584 (5,218)(3)
Restructuring4,732 7,159 (2,427)(34)
Total operating expenses$407,398 $430,470 $(23,072)(5)
Percentage of revenue
Technology and development16.1 %18.3 %
Marketing11.6 12.9 
General and administrative22.7 24.6 
Restructuring and reorganization0.6 0.9 
Total operating expenses51.0 %56.7 %

In the nine months ended September 30, 2024, technology and development expenses decreased by $10.2 million, or 7%, as compared with the same period in 2023. This was primarily attributable to a $9.3 million decrease in amortization expense, as the intangible technology assets acquired with Rent. completed their amortization.

In the nine months ended September 30, 2024, marketing expenses decreased by $5.2 million, or 5%, as compared with the same period in 2023. This was primarily attributable to a $4.0 million decrease in marketing media costs as we increased advertising.

In the nine months ended September 30, 2024, general and administrative expenses decreased by $5.2 million, or 3%, as compared with the same period in 2023. This was primarily attributable to a $5.3 million decrease in personnel costs, a $5.9 million decrease in costs from our annual, in-person company event, which we did not conduct in 2024, and a $3.8 million decrease in office and occupancy expenses. This was partially offset by an $9.6 million increase in legal settlements. See Note 7 to our consolidated financial statements for information on these legal matters.

In the nine months ended September 30, 2024, restructuring and reorganization expenses decreased by $2.4 million, or 34%, as compared with the same period in 2023.

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Interest Income, Interest Expense, Income Tax Expense, Gain on Extinguishment of Convertible Senior Notes, and Other Expense, Net
Nine Months Ended September 30,Change
20242023DollarsPercentage
(in thousands, except percentages)
Interest income$5,132 $8,170 $(3,038)(37)%
Interest expense(19,497)(5,291)(14,206)268 
Income tax expense(375)(882)507 (57)
Gain on extinguishment of convertible senior notes12,000 68,848 (56,848)(83)
Other expense, net(559)(537)(22)4 
Interest income, interest expense, income tax expense, gain on extinguishment of convertible notes, and other expense, net$(3,299)$70,308 $(73,607)(105)
Percentage of revenue
Interest income0.6 %1.1 %
Interest expense(2.4)(0.7)
Income tax expense0.0 (0.1)
Gain on extinguishment of convertible senior notes1.5 9.1 
Other expense, net(0.1)(0.1)
Interest income, interest expense, income tax expense, gain on extinguishment of convertible notes, and other expense, net(0.4)%9.3 %

In the nine months ended September 30, 2024, interest income, interest expense, income tax expense, gain on extinguishment of convertible senior notes, and other expense, net decreased by $73.6 million as compared to the same period in 2023.

Interest expense increased by $14.2 million due primarily to interest on our term loan, which we did not have in the same period in 2023. See Note 14 to our consolidated financial statements for further information.

Gain on extinguishment of convertible senior notes decreased by $56.8 million, due to our paying down a smaller portion of our 2025 notes at a discount as compared to the same period in 2023. See Note 14 to our consolidated financial statements for further information on these transactions.

Segment Financial Information

The following tables present, for each of our reportable and other segments, financial information on a GAAP basis and adjusted EBITDA, which is a non-GAAP financial measure, for the three and nine months ended September 30, 2024 and 2023.

See Note 3 to our consolidated financial statements for more information regarding our GAAP segment reporting.

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) income from continuing operations.
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Three Months Ended September 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
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)

Three Months Ended September 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(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 amortization3,002 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. 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 significant contingent liabilities resulting from litigation or other legal proceedings.

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Three Months Ended September 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
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)
Three Months Ended September 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(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 amortization3,123 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.


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Nine Months Ended September 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
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)

Nine Months Ended September 30, 2024
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(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 amortization9,302 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. 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 significant contingent liabilities resulting from litigation or other legal proceedings.

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Nine Months Ended September 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
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 $1.2 million from providing services to our discontinued properties segment.
Nine Months Ended September 30, 2023
Real estate servicesRentalsMortgageOtherCorporate overheadTotal
(in thousands)
Net (loss) income from continuing operations
$(67,393)$(59,300)$(11,116)$5,161 $29,154 $(103,494)
Interest income(1)
(41)(238)(9,062)(475)(7,400)(17,216)
Interest expense(2)
— — 9,737 — 5,285 15,022 
Income tax expense— 123 222 — 537 882 
Depreciation and amortization12,819 30,068 2,929 756 1,745 48,317 
Stock-based compensation(3)
33,041 11,580 2,554 1,696 6,277 55,148 
Acquisition-related costs(4)
— — — — 8 8 
Restructuring and reorganization(5)
— — — — 7,159 7,159 
Impairment(6)
— — — — 113 113 
Gain on extinguishment of convertible senior notes— — — — (68,848)(68,848)
Adjusted EBITDA$(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. 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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Liquidity and Capital Resources

As of September 30, 2024, we had cash and cash equivalents of $165.7 million.

As of September 30, 2024, we had $576.9 million of convertible senior notes outstanding across two issuances, maturing between October 15, 2025 and April 1, 2027. See Note 14 to our consolidated financial statements for our obligations to pay semi-annual interest and to repay any outstanding amounts at the notes’ maturity. During the three months ended September 30, 2024, we did not repurchase any of our 2025 convertible senior notes. As of September 30, 2024, we have repurchased a total of $582.5 million of our 2025 convertible senior notes, using $432.4 million in cash. As of September 30, 2024, we have $17.6 million remaining under the repurchase program for future repurchases.

In addition, as of September 30, 2024 we had $248.1 million principal amount of our term loan, maturing on October 20, 2028.

As of September 30, 2024, we had 40,000 shares of convertible preferred stock outstanding. We are required to settle these shares in the fourth quarter of 2024 by either paying $40,000, which is the mandatory redemption amount, or through a conversion into shares of our common stock. While not at our discretion, we anticipate settling in cash. See Note 10 to our consolidated financial statements for more information regarding our convertible preferred stock.

Our mortgage business has significant cash requirements due to the period of time between its origination of a mortgage loan and the sale of that loan. We have relied on warehouse credit facilities with different lenders to fund substantially the entire portion of the mortgage loans that our mortgage business originates. Once our mortgage business sells a loan in the secondary mortgage market, we use the proceeds to reduce the outstanding balance under the related facility. See Note 14 to our consolidated financial statements for more information regarding our warehouse credit facilities.

We believe that our existing cash and cash equivalents and investments, together with cash we expect to generate from future operations, and borrowings from our mortgage warehouse credit facilities, will provide sufficient liquidity to meet our operational needs and our growth, and fulfill our payment obligations. However, our liquidity assumptions may change or prove to be incorrect, and we could exhaust our available financial resources sooner than we currently expect. As a result, we may seek new sources of credit financing or elect to raise additional funds through equity, equity-linked, or debt financing arrangements. We cannot assure you that any additional financing will be available to us on acceptable terms or at all.

Our title and settlement business holds cash in escrow that we do not record on our consolidated balance sheets. See Note 7 to our consolidated financial statements for more information regarding these amounts.

Cash Flows

The following table summarizes our cash flows for the periods presented:
Nine Months Ended September 30,
20242023
(in thousands)
Net cash (used in) provided by operating activities$(96,046)$91,428 
Net cash provided by investing activities36,636 97,963 
Net cash provided by (used in) financing activities74,242 (304,347)

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Net Cash (Used In) Provided By Operating Activities

Our operating cash flows result primarily from cash generated by commissions paid to us from our real estate services business, sales of homes from our properties business, and subscription-based product offerings from our rentals business. Our primary uses of cash from operating activities include payments for personnel-related costs, including employee benefits and bonus programs, marketing and advertising activities, purchases of homes for our properties business, office and occupancy costs, and outside services costs. Additionally, our mortgage business generates a significant amount operating cash flow activity from the origination and sale of loans held for sale.

Net cash used in operating activities was $96.0 million for the nine months ended September 30, 2024, primarily attributable to our net loss of $128.4 million. This decrease was partially offset by a net increase of $84.6 million from non-cash items related to stock-based compensation, depreciation and amortization, amortization of debt discounts and issuances costs, lease expense related to right-of-use assets, changes in the fair value of and sale of mortgage servicing rights, gain on extinguishment of our convertible senior notes, and other non-cash items. The primary use of cash related to changes in our assets and liabilities was $52.7 million in net originations of loans held for sale.

Net cash provided by operating activities was $91.4 million for the nine months ended September 30, 2023, primarily attributable to changes in assets and liabilities, which increased cash provided by operating activities by $150.4 million. This increase was partially offset by our net loss of $107.1 million. In addition, there was a net increase of $48.2 million from non-cash items related to stock-based compensation, depreciation and amortization, amortization of debt discounts and issuances costs, lease expense related to right-of-use assets, changes in the fair value of mortgage servicing rights, gain on extinguishment of our convertible senior notes, and other non-cash items. The primary source of cash related to changes in our assets and liabilities was a $114.2 million decrease in inventory related to our properties business.

Net Cash Provided by Investing Activities

Our primary investing activities include the purchase, sale, and maturity of investments and purchases of property and equipment, primarily related to capitalized software development expenses and computer equipment and software.

Net cash provided by investing activities was $36.6 million for the nine months ended September 30, 2024, primarily attributable to $45.6 million in net sales and maturities of our investments in U.S. government securities, partially offset by $9.0 million in purchases of property and equipment.

Net cash provided by investing activities was $98.0 million for the nine months ended September 30, 2023, primarily attributable to $107.2 million in net maturities in U.S. government securities, partially offset by $9.2 million in purchases of property and equipment.

Net Cash Provided By (Used In) Financing Activities

Our primary financing activities have come from (i) our initial public offering in August 2017, (ii) sales of our common stock and 2023 notes in July 2018, our common stock and convertible preferred stock in April 2020, our 2025 notes in October 2020, and our 2027 notes in March 2021, (iii) our term loan entered into in October 2023, and (iv) the sale of our common stock pursuant to stock option exercises and our ESPP. Additionally, we generate a significant amount of financing cash flow activity due to borrowings from and repayments to our warehouse credit facilities and, historically, our secured revolving credit facility, which we terminated on December 29, 2022.

Net cash provided by financing activities was $74.2 million for the nine months ended September 30, 2024, attributable to $125.0 million in proceeds from the additional draw on our term loan and a $56.9 million increase in net borrowings under our warehouse credit facilities. This was partially offset by $107.0 million used in connection with repurchases of our 2025 notes.

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Net cash used in financing activities was $304.3 million for the nine months ended September 30, 2023, attributable to $212.4 million used in connection with repurchases of our 2025 notes and $23.5 million used in connection with the repayment of our 2023 notes. This was partially offset by a $58.2 million decrease in net borrowings under our warehouse credit facilities.

Critical Accounting Policies and Estimates

Discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities and related disclosure of contingent assets and liabilities, revenue, and expenses at the date of the financial statements. Generally, we base our estimates on historical experience and on various other assumptions in accordance with GAAP that we believe to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions or conditions.

Critical accounting policies and estimates are those that we consider the most important to the portrayal of our financial condition and results of operations because they require our most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Based on this definition, we have identified the critical accounting policies and estimates addressed below. In addition, we have other key accounting policies and estimates that are described in Note 1 to our consolidated financial statements.

Revenue Recognition

Our key revenue components are brokerage revenue, partner revenue, rentals revenue, mortgage revenue, and other revenue. Of these, we consider the most critical of our revenue recognition policies to be those related to commissions and fees charged on brokerage transactions closed by our lead agents, and from the sale of homes. We recognize commission-based brokerage revenue upon closing of a brokerage transaction, less the amount of any commission refunds, closing-cost reductions, or promotional offers that may result in a material right. We determined that brokerage revenue primarily contains a single performance obligation that is satisfied upon the closing of a transaction, at which point the entire transaction price is earned. We evaluate our brokerage contracts and promotional pricing to determine if there are any additional material rights and allocate the transaction price based on standalone selling prices.

Rentals revenue is primarily recognized on a straight-line basis over the term of the contract, which is generally less than one year. Revenue is presented net of sales allowances, which are not material.

Mortgage revenue is recognized (1) when an interest rate lock commitment is made to a customer, adjusted for a pull-through percentage, (2) for origination fees, when the purchase or refinance of a loan is complete, and (3) when the fair value of our interest rate lock commitments, forward sale commitments, and loans held for sale are recorded at current market quotes.

We have utilized the practical expedient in ASC 606, Revenue from Contracts with Customers, and elected not to capitalize contract costs for contracts with customers with durations less than one year. We do not have significant remaining performance obligations or contract balances.

Acquired Intangible Assets and Goodwill

We recognize separately identifiable intangible assets acquired in a business combination. Determining the fair value of the intangible assets acquired requires management’s judgment, often utilizes third-party valuation specialists, and involves the use of significant estimates and assumptions with respect to the timing and amounts of future cash flows, discount rates, replacement costs, and asset lives, among other estimates.

The judgments made in the determination of the estimated fair value assigned to the intangible assets acquired and the estimated useful life of each asset could significantly impact our consolidated financial statements in periods after the acquisition, such as through depreciation and amortization expense, as well as impairment charges, if applicable.

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We evaluate intangible assets for impairment whenever events or circumstances indicate that they may not be recoverable. We measure recoverability by comparing the carrying amount of an asset group to future undiscounted net cash flows expected to be generated with such asset group.

Goodwill represents the excess of the purchase price over the fair value of the net tangible assets and identifiable intangible assets acquired in a business combination. Goodwill is not amortized, but is subject to impairment testing. We assess the impairment of goodwill on an annual basis, during the fourth quarter, or whenever events or changes in circumstances indicate that goodwill may be impaired. Based on our annual goodwill impairment test performed in the fourth quarter of 2023, the estimated fair values of all reporting units substantially exceeded their carrying values. No goodwill impairment charges were recorded in the third quarter of 2024 or 2023.

We assess goodwill for possible impairment by performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If we qualitatively determine that it is not more likely than not that the fair value is less than its carrying amount, then no additional impairment steps are necessary. When utilizing a quantitative assessment, we determine fair value at the reporting unit level based on a combination of an income approach and market approach. The income approach is based on estimated future cash flows, discounted at a rate that approximates the cost of capital of a similar market participant, while the market approach is based on guideline public company multiples and adjusted for the specific size and risk profile of each reporting units.

Debt Issuances

On October 20, 2023, we entered into a definitive agreement with Apollo Capital Management, L.P. and its affiliates (“Apollo”) whereby Apollo agreed to commit up to $250.0 million of financing for us in the form of a first lien term loan facility. We borrowed the first half of the facility on October 20, 2023, and the remaining $125.0 million was available as a delayed draw term loan. On May 31, 2024, we drew down the remaining $125.0 million of the facility. As part of the transaction, we repurchased a $5.0 million principal amount of our 2025 convertible notes held by Apollo and $71.9 million principal amount of 2027 convertible notes held by Apollo for an aggregate repurchase price of $57.1 million using cash on our balance sheet. See Note 14 to our consolidated financial statements for a further description of this transaction.

We considered the nature of this debt issuance, the associated fees, and the associated gains or losses on the repurchases of convertible notes as part of our recording of this transaction.

Recent Accounting Standards

For information on recent accounting standards, see Note 1 to our consolidated financial statements.

Item 3. Qualitative and Quantitative Disclosures About Market Risk.

Our primary operations are within the United States and Canada. We are exposed to market risks in the ordinary course of our business. These risks primarily consist of fluctuations in interest rates.

Interest Rate Risk

Our investment policy allows us to maintain a portfolio of cash equivalents and investments in a variety of securities, including U.S. treasury and agency issues, bank certificates of deposit that are 100% insured by the Federal Deposit Insurance Corporation, and SEC-registered money market funds that consist of a minimum of $1 billion in assets and meet the above requirements. The goals of our investment policy are liquidity and capital preservation. We do not enter into investments for trading or speculative purposes.

As of September 30, 2024, we had cash and cash equivalents of $165.7 million. Declines in interest rates would reduce future investment income. Assuming no change in our outstanding cash and cash equivalents during the fourth quarter of 2024, a hypothetical 10% change in interest rates, occurring during and sustained throughout that quarter, would not have a material impact on our financial results for that quarter.

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We are exposed to interest rate risk on our mortgage loans held for sale and IRLCs associated with our mortgage loan origination services. We manage this interest rate risk through the use of forward sales commitments on both a best effort whole loans basis and on a mandatory basis. Forward sales commitments entered into on a mandatory basis are done through the use of commitments to sell mortgage-backed securities. We do not enter into or hold derivatives for trading or speculative purposes. The fair value of our IRLCs and forward sales commitments are reflected in other current assets and accrued liabilities, as applicable, with changes in the fair value of these commitments recognized as revenue. The net fair value change for the periods presented were not material. See Note 4 to our consolidated financial statements for a summary of the fair value of our forward sales commitments and our IRLCs as of September 30, 2024.

Foreign Currency Exchange Risk

As our operations in Canada have been limited, and we do not maintain a significant balance of foreign currency, we do not currently face significant foreign currency exchange rate risk.

Item 4. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive and principal financial officers, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934), as of the end of the period covered by this quarterly report. Based on such evaluation, our principal executive and principal financial officers have concluded that as of such date, our disclosure controls and procedures were effective at the reasonable assurance level described below.

Changes in Internal Control

In connection with the evaluation required by Rule 13a-15(d) under the Securities Exchange Act of 1934, there were no changes in our internal control over financial reporting that occurred during the quarter ended September 30, 2024 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within our company have been detected. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions, or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.
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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

See "Legal Proceedings" under Note 7 to our consolidated financial statements for a discussion of our material, pending legal proceedings.

Item 1A. Risk Factors.

There have not been any material changes from the risk factors included in Item 1A of our annual report for the year ended December 31, 2023, as supplemented by Part II, Item 1A of our quarterly report on Form 10-Q for the quarter ended March 31, 2024. You should carefully consider the risks described in our annual report for the year ended December 31, 2023 and our quarterly report for the quarter ended March 31, 2024, together with all other information in this quarterly report, before investing in any of our securities. The occurrence of any single risk or any combination of risks could materially and adversely affect our business, operating results, financial condition, liquidity, or competitive position, and consequently, the value of our securities. The material adverse effects include, but are not limited to, not growing our revenue or market share at the pace that they have grown historically or at all, our revenue and market share fluctuating on a quarterly and annual basis, an extension of our history of losses and a failure to become profitable, not achieving the revenue and net income (loss) guidance that we provide, and harm to our reputation and brand.

Item 5. Other Information.

Rule 10b5-1 Trading Plans

During the quarter ended September 30, 2024, the following directors and Section 16 officers adopted contracts, instructions, or written plans for the purchase or sale of our securities. Each of these intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934 (“10b5-1 Plan”). None of our other directors or Section 16 officers adopted or terminated a “non-Rule 10b5-1 trading arrangement” as defined in Item 408 of Regulation S-K during the covered period.

The 10b5-1 Plan included a representation from each officer to the broker administering the plan that they were not in possession of any material nonpublic information regarding the company or the securities subject to the plan. A similar representation was made to the company in connection with the adoption of the 10b5-1 Plan under the company’s insider trading policy. Those representations were made as of the date of adoption of each 10b5-1 Plan.
NameTitleActionDate AdoptedExpiration DateAggregate # of Securities to be Bought/Sold
Christian Taubman(1)
Chief Growth Officer
Adoption
August 8, 2024
June 30, 2025
44,437
(1) Christian Taubman, our Chief Growth Officer, entered into a Rule 10b5-1 Plan on August 8, 2024. Mr. Taubman’s 10b5-1 Plan provides for the potential sale of 44,437 shares of our common stock.
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Item 6. Exhibits.

The exhibits required to be filed or furnished as part of this Quarterly Report are listed below. Notwithstanding any language to the contrary, exhibits 32.1, 32.2, 101, and 104 shall not be deemed to be filed as part of this Quarterly Report for purposes of Section 18 of the Securities Exchange Act of 1934.

Incorporated by Reference
Exhibit Number
Exhibit DescriptionFormExhibitFiling DateFiled or Furnished Herewith
31.1X
31.2X
32.1X
32.2X
101Interactive data filesX
104Cover page interactive data file, submitted using inline XBRL (contained in Exhibit 101)X
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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Redfin Corporation
(Registrant)
November 7, 2024/s/ Glenn Kelman
(Date)
Glenn Kelman
President and Chief Executive Officer
(Duly Authorized Officer)
November 7, 2024/s/ Chris Nielsen
(Date)
Chris Nielsen
Chief Financial Officer
(Principal Financial Officer)