The company posted profits of $98.3 million, up 8 percent from the third quarter of 2022, while tallying $269 million in revenue, a decrease of 12 percent from a year ago, according to third-quarter earnings Thursday.

The verdict is in — the old way of doing business is over. Join us at Inman Connect New York Jan. 23-25, when together we’ll conquer today’s market challenges and prepare for tomorrow’s opportunities. Defy the market and bet big on your future.

Coming off a challenging quarter, Redfin managed to post a year-over-year increase in profits Thursday despite a decline in revenue, according to third-quarter earnings released Thursday.

The Seattle-based company announced overall profits of $98.3 million, up 8 percent from the third quarter of 2022, while tallying $269 million in revenue, a decrease of 12 percent from a year ago, falling short of Wall Street expectations.

Profits for real estate services clocked in at $54.1 million, a decrease of 2 percent year over year according to the data, with gross margins improved by four points to 30 percent in the quarter. Net losses, meanwhile, fell to $19 million in the quarter, compared to a loss of $90.2 million in the third quarter of 2022.

“In a worsening housing market, Redfin earned an adjusted EBITDA profit, a $59 million improvement over the third quarter of 2022, all while growing traffic and gaining share,” Redfin CEO Glenn Kelman said during the call. “In October, we raised capital, began generating revenues from a new digital business, and launched all-variable agent pay in California. This downturn has only made us stronger.”

Among the third-quarter highlights, Kelman touted the company’s apps and website, which drew more than 51 million average monthly users, up 1 percent from a year earlier, and a rise in mortgage cross-selling despite strong headwinds with mortgage demand down. Sales from loyalty customers also rose modestly, from 33 percent in the third quarter of 2022 to 36 percent this quarter, according to the results.

The second quarter brought more of the same for Redfin. In early August, the Seattle-based company’s revenues fell 21 percent year over year to $275.6 million, down from $606.9 million a year earlier.

However, Redfin’s gross profits from real estate services suffered a far greater decline in the second quarter, falling 24 percent year over year to $56.2 million.

For the fourth quarter, which ends in December, Redfin projects revenue falling between $211 million to $216 million.

This story is developing. Check back later for more details.

Email Jotham Sederstrom

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription