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Redfin began the year at a loss, with its revenue and real estate gross profits declining as net losses widened.
The Seattle-based firm’s first-quarter revenue declined 2 percent year over year to $221 million, while net losses ballooned from $66.8 million to $92.5 million. Redfin’s Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) loss declined 9.4 percent year over year to $32 million.
Redfin’s overall gross profits remained flat at $70.6 million, while the real estate services gross profit declined 2 percent year-over-year to $19.9 million. Meanwhile, real estate services gross margin improved marginally, increasing from 15 percent in Q1 2024 to 16 percent in Q1 2025.
Despite the declines, Redfin CEO Glenn Kelman’s remarks were optimistic, focusing on outperforming profits and impressive increases in lead agents and loyalty sales.
Glenn Kelman | Credit: Redfin
“Redfin profits were at the high end of the guidance we gave investors in our last earnings call,” Kelman said in a statement. “The number of Redfin lead agents increased 32 percent year on year, and loyalty sales increased 40 percent year on year thanks to our new plan to pay agents entirely on commission.”
During Q1, the average number of lead agents increased 32 percent year over year to 2,190. Loyalty sales also increased during the quarter, jumping from 35 percent in 2024 to 40 percent in 2025, despite the company’s market share dropping from 0.77 percent to 0.75 percent. The company credited both gains to the continued success of Redfin Next, its commission-based payment model that launched nationwide in October.
In addition to increases in agent count and loyalty sales, Redfin saw its mortgage attach rate reach a quarterly best of 29 percent — likely buoyed by the pending merger with Rocket Companies, the owner of mortgage behemoth Rocket Mortgage. The pair entered into an agreement in March.
“And since the March 10th announcement of Redfin’s agreement to be bought by Rocket, many Redfin employees, from agents to engineers, have been over the moon about Rocket’s vision of a home-ownership platform,” Kelman said of the deal. “We can’t wait to join Rocket and build the future of homeownership.”
Redfin did not hold an earnings call due to Rocket Companies’ pending acquisition of the Seattle-based firm.
Ahead of earnings, Redfin filed a 284-page proxy statement with the U.S. Securities and Exchange Commission, which detailed the firm’s reasons for seeking a merger, explained the full merger agreement, disclosed risks associated with the merger, provided insights into Redfin and Rocket’s financial health and growth projections, and disclosed termination clause that allows Redfin to cancel the deal for $65.5 million, in the event they received a better offer.
The filing spurred several investor rights law firms, including Halper Sadeh LLC, Ademi & Fruchter LLP and at least three other firms to release statements offering to represent stockholders contesting the merger terms. Redfin has scheduled a stockholder vote for June 4, which is needed to finalize the $1.75 billion all-stock merger.
