Redfin Loses $130 Million in H1 2025 Ahead of Rocket Takeover

Redfin has released its final unaudited review of its finances before it merges with Rocket Companies, revealing that the brokerage's losses widened to $130 million in H1 2025.

Highlights include:

• Revenues were $280 million, down 5% from the period in Q2 2024
• Losses widened to $37.5 million for the quarter, a 34% increase YoY
• H1 2025 revenues were $501 million, down from $520 million in H1 2024
• H1 2025 losses were $130.8 million, up from $94.7 million in H1 2024
• Assets increased to $292.4 million, up from $225.1 million
• Final public results before privatisation

Redfin has faced significant financial struggles for some time, recording net losses for 18 consecutive quarters before Rocket Companies closed its acquisition of the brokerage in July.

According to the filing, Redfin’s real estate services are worth $250 million, while the company had $974 million in debt as of June 30—$252 million of which was paid off by Rocket in July. Rocket previously announced that 2% of its workforce was made redundant after the acquisition.

Rocket CEO Varun Krishna highlighted Redfin in the company's earnings call in July, saying:

"Since July 1, we’ve seen over 65 Redfin clients close on their dream home with Rocket Mortgage. Plus, in the first three weeks, there’s been a nice jump at the top of the funnel. Nearly 200,000 people have clicked on the get pre-qualified button within Redfin, indicating interest in home financing. Of those users with a Redfin account, 23 percent became a contactable lead at Rocket and 12 percent of all users who enter the funnel go on to start an application, taking a significant step toward homeownership.”

Redfin is now merged with the largest mortgage retailer in the United States. It now sees itself, however, as part of what has been branded "anticompetitive acquisition spree" as Rocket also pursues a major acquisition of another mortgage company, Mr Cooper.

The brokerage is also on the side of Zillow in the ongoing "listings ban" controversy, and Redfin will start blocking non-MLS listings from its site starting in September, with CEO Glenn Kelman on the record saying:

"We believe that all buyers should be able to see all listings. Redfin.com will not publish any listings that have been publicly marketed before being shared with all real estate websites via the MLS. Redfin is also asking MLSs to create a 'coming soon' designation for listings that precludes search sites from showing how long a home has been for sale and at what prices."

Meanwhile, Redfin also finds itself indirectly embroiled in a major lawsuit launched by CoStar Group against Zillow. As part of a five-year, $100 million rentals syndication agreement, Zillow's rentals listings will also appear on Redfin's site. The annoyance for Redfin is that several thousand alleged copyright-infringing images have potentially appeared on its portal via Zillow's "rampant" infringements, with Redfin warned that it could be named in a similar case if CoStar-branded images are found on its site.

Finally, Redfin announced that it integrated CubiCasa's interactive floor plans into its consumer search experience in July.

Ariel Dos Santos, SVP of Product and Design, said:

"A home’s layout can make or break whether it’s the right fit, and buyers want to have that information up front. By integrating CubiCasa’s media into our active listings, we’re helping buyers move forward with confidence and find homes that truly match their lifestyle.”