Redfin’s Final Earnings Report as Standalone Company: Mixed Results Amid Growing Workforce and Upcoming Acquisition by Rocket Companies
Seattle-based real estate company Redfin released what will be its final quarterly earnings report as a standalone company, ahead of its upcoming acquisition by Rocket Companies. The report showed mixed results, with declines in several key metrics but also some bright spots in specific business segments.
The company reported revenue of $221 million for the first quarter of 2025, marking a decrease from $244.3 million in the previous quarter. This figure represented a modest 2% decline compared to the $225.5 million generated in the same period last year. Net losses widened to $92.5 million, significantly higher than both the $66.8 million loss recorded in Q1 2024 and the $36.4 million loss from the fourth quarter of 2024.
Despite these challenges, Redfin’s CEO Glenn Kelman highlighted several positive developments, particularly the company’s success in growing its agent workforce. The brokerage reported a 32%
year-over-year increase in lead agents, reaching 2,265 by the end of March. This growth was attributed to the company’s new
commission-based compensation structure, known as Redfin Next, which was implemented nationwide in October.
The company’s loyalty program showed strong performance, with 40% of sales coming from repeat customers during the first quarter. Website traffic remained robust, with 46 million monthly average visitors, showing a slight decline from the 49 million recorded in Q1 2024 but an improvement from the 43 million reported in the previous quarter.
Transaction volume totaled 12,255 deals across brokerage and partner operations, down from 14,363 in the previous quarter but nearly matching the 12,730 transactions completed in the first quarter of 2024. The company’s financial position showed improvement with cash and cash equivalents of $183.5 million, up from $124.7 million at the end of 2024.
Earlier in the quarter, Redfin entered into a significant partnership with Zillow, securing a $100 million agreement making Zillow the exclusive provider of multifamily rental listings on Redfin’s platforms, including Rent.com and ApartmentGuide.com. This rentals division proved to be one of the company’s successful segments, generating a net profit of $3.6 million, while other divisions like real estate services and mortgage operations reported losses.
Kelman expressed enthusiasm about the pending acquisition by Rocket, noting that employees across all departments, from agents to engineers, have responded positively to Rocket’s vision for creating a comprehensive homeownership platform. The acquisition is expected to be completed later this summer.
The company’s adjusted EBITDA showed a loss of $32 million for the first quarter, compared to a loss of $27.6 million in the same period last year. While the real estate services division and corporate overhead contributed to the increased losses, the rentals and title divisions maintained profitability.
Due to the pending acquisition, Redfin departed from its usual practice of hosting an investor call to discuss the quarterly results. The report serves as a snapshot of the company’s operations as it prepares to transition into its new chapter as part of Rocket Companies, marking the end of its journey as an independent entity in the real estate technology sector.
