Redfin Reports $221M Revenue in Q1 2025, Net Loss Widens to $92.5M

Redfin Corporation reported a revenue of $221.0 million for the first quarter of 2025, a decrease of 2% from $225.5 million in the same period of 2024. The company's net loss widened to $92.5 million, compared to a loss of $66.8 million in the prior year. This resulted in a net loss per share of $0.73, up from $0.57 per share in the previous year. The decline in revenue was primarily driven by a decrease in real estate services revenue, which fell by $4.9 million, and a $4.5 million drop in mortgage revenue. However, rentals revenue increased by $2.8 million, and title revenue rose by $2.1 million.

In terms of operational metrics, Redfin's brokerage revenue decreased by 4% to $119.2 million, attributed to a 2% decline in brokerage transactions and a 3% decrease in revenue per transaction. Partner revenue, however, saw an increase of 11%, reaching $7.1 million. The company reported a gross profit of $70.6 million, slightly down from $70.8 million in the previous year, resulting in a gross margin of 32.0%, an increase of 60 basis points year-over-year.

Strategically, Redfin announced a merger agreement with Rocket Companies on March 9, 2025, which is expected to close in the second or third quarter of 2025, subject to regulatory approvals. Additionally, the company entered into a partnership with Zillow, which includes a Content License Agreement that will allow Zillow to display its rental listings on Redfin's platforms. This partnership is anticipated to generate a minimum payment of $75,000 for lead generation services in the first year and includes an upfront payment of $100,000.

Operationally, Redfin's total employee count has decreased by 39% since April 2022, reflecting adjustments made in response to changing market conditions. The company reported a total of 2,190 lead agents as of March 31, 2025. The number of monthly average visitors to Redfin's website and mobile applications was approximately 45.7 million, indicating a growing interest in its services despite the challenging macroeconomic environment characterized by high mortgage rates and inflation.

Looking ahead, Redfin's management expressed cautious optimism, noting that the company is focused on aligning its operations with consumer demand while pursuing profitability. The company anticipates additional restructuring costs related to the Zillow partnership and is committed to enhancing its service offerings to capture a larger market share in the competitive real estate landscape.