Redfin (RDFN) AI Stock Analysis

• Market Cap: $1.43B
• Dividend Yield: N/A
• Average Volume (3M): 6.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.92
• Revenue Growth: 5.11%
• EPS Growth: -29.67%
• Country: US
• Employees: 4,000
• Sector: Real Estate
• Sector Strength: 52
• Industry: Real Estate - Services
• EPS (TTM): -0.73
• Shares Outstanding: 128,031,000
• 10 Day Avg. Volume: 8,086,694
• 30 Day Avg. Volume: 6,876,237
• PEG Ratio: >-0.01
• Price to Book (P/B): 4.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 24.14
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 5.27
• Enterprise Value/Ebitda: -4.14
• 1Y Price Target: $10.70
• Price Target Upside: -4.38% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 55 Neutral
• Price Target: $11.50 ▲(2.77%Upside)

The overall stock score is impacted significantly by financial performance, highlighting Redfin's financial instability and ongoing losses. While technical analysis suggests short-term bullish momentum, valuation concerns and corporate legal challenges add substantial risk.

Positive Factors

Acquisition

Rocket Mortgage announced a definitive agreement to acquire RDFN in an all-stock transaction for $1.75BN in equity or $12.50 per share, a ~100%+ premium to the price of shares on Friday's close.

Strategic Partnership

Redfin will receive a guaranteed minimum payment of $75 million from Zillow for the first 12 months of lead generation services.

Synergies

Rocket management is projecting ~$200MM in combined synergies by 2027, split between $140MM in operational expenses and $60MM in revenue.

Negative Factors

Market Valuation Concerns

Redfin shares are currently trading at approximately 12% discount to the proposed acquisition price, reflecting concerns about regulatory scrutiny.

Profitability Challenges

The company has been unable to return to positive adjusted EBITDA after the pandemic-driven housing market boom.

Restructuring Costs

Redfin recorded an $18.9 million restructuring and reorganization expense during the quarter and expects additional restructuring costs in the next quarter.

Redfin Business Overview & Revenue Model

Company Description

Redfin Corporation (RDFN) is a technology-powered real estate brokerage that operates in the United States and Canada. It provides a range of real estate services, including home buying, selling, and rentals. Redfin leverages its proprietary software and technology to offer a customer-centric approach, featuring tools for online home search, virtual tours, and personalized service from Redfin agents. The company also provides ancillary services such as mortgage, title, and closing services to enhance the real estate transaction experience.

How the Company Makes Money

Redfin makes money primarily through commissions earned on real estate transactions facilitated by its agents. When a property is bought or sold through Redfin, the company receives a percentage of the sale price as a commission. Redfin charges a lower commission fee compared to traditional brokerages, which is part of its value proposition. Additionally, Redfin generates revenue from its ancillary services, including mortgage origination, title services, and closing services, which complement its core real estate brokerage operations. The company also makes money through advertising partnerships and fees associated with its rental marketplace. These diverse revenue streams are supported by Redfin's advanced technology platform, which enhances customer engagement and operational efficiency.

Redfin Financial Statement Overview

Summary

Redfin faces significant financial challenges, with persistent losses and negative equity indicating a stressed financial position. Despite some improvements in cash flow generation, the company struggles with profitability and high leverage, posing substantial risks. Sustainability of operations and financial health improvement are critical areas of focus moving forward.

Income Statement

The income statement reflects a challenging situation for Redfin, with declining revenue and persistent losses. Gross Profit Margin stands at 35.05% for TTM, indicating some efficiency in managing direct costs. However, the Net Profit Margin is negative, reflecting ongoing losses. Revenue growth has been declining, with a significant drop year-over-year from 2021 to 2022 and slight recovery thereafter, which poses a concern for sustainable growth. EBIT and EBITDA margins are negative, highlighting operational inefficiencies.

Balance Sheet

The balance sheet reveals a strained financial position with negative stockholders' equity in the TTM, indicating liabilities exceed assets. The Debt-to-Equity ratio is not meaningful due to negative equity, pointing to high leverage and potential risk. Return on Equity is negative, reflecting the company's inability to generate profits from shareholders' investments. The equity ratio is also negative, further emphasizing the financial instability.

Cash Flow

Cash flow analysis shows some positive aspects, with the TTM operating cash flow being positive, indicating an ability to generate cash from operations. Free Cash Flow has improved from negative in prior years to positive in the TTM, which is a positive sign. However, the Free Cash Flow to Net Income ratio is negative due to the negative net income, reflecting ongoing profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.04B	1.04B	976.67M	2.28B	1.92B	886.09M
Gross Profit	364.02M	364.20M	329.82M	286.05M	403.82M	232.11M
EBITDA	-129.82M	-106.80M	-53.04M	-175.89M	-42.93M	21.87M
Net Income	-190.55M	-164.80M	-130.03M	-321.14M	-109.61M	-36.12M
Balance Sheet
Total Assets	1.08B	1.01B	1.15B	1.57B	2.02B	1.36B
Cash, Cash Equivalents and Short-Term Investments	183.54M	124.74M	191.71M	362.10M	624.74M	1.06B
Total Debt	1.02B	994.90M	1.01B	1.35B	1.54B	635.04M
Total Liabilities	1.23B	1.10B	1.11B	1.47B	1.67B	730.14M
Stockholders Equity	-157.99M	-82.67M	42.71M	103.87M	349.72M	630.38M
Cash Flow
Free Cash Flow	40.67M	-43.52M	44.70M	18.96M	-329.06M	46.58M
Operating Cash Flow	51.55M	-32.31M	56.76M	40.49M	-301.57M	61.27M
Investing Cash Flow	-10.88M	34.41M	97.48M	-184.34M	-576.31M	-57.12M
Financing Cash Flow	34.64M	-28.11M	-245.41M	-332.09M	650.34M	694.23M

Redfin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RDFN, the sentiment is Positive. The current price of 11.19 is above the 20-day moving average (MA) of 10.70, above the 50-day MA of 9.96, and above the 200-day MA of 9.61, indicating a bullish trend. The MACD of 0.41 indicates Negative momentum. The RSI at 58.71 is Neutral, neither overbought nor oversold. The STOCH value of 63.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RDFN.

Redfin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REAX	70 Outperform	$880.47M	―	-52.95%	―	83.50%	8.45%
EXPI	67 Neutral	$1.49B	―	-6.44%	2.10%	6.69%	-137.52%
Sector *	63 Neutral	$6.99B	18.83	-1.16%	6.86%	4.65%	-25.28%
NMRK	60 Neutral	$2.31B	31.82	5.32%	0.96%	13.87%	90.42%
HOUS	59 Neutral	$424.86M	―	-6.84%	―	2.47%	-74.15%
RDFN	55 Neutral	$1.43B	―	199.35%	―	5.11%	-29.67%
OPEN	48 Neutral	$412.83M	―	-47.67%	―	2.36%	-23.60%

Redfin Corporate Events

Redfin Completes Merger with Rocket, Delists from Nasdaq

On July 1, 2025, Redfin completed a merger with Rocket, becoming a wholly owned subsidiary. As part of this merger, Redfin’s convertible senior notes due in 2025 and 2027 became convertible into Rocket’s Class A common stock. The merger also led to the issuance of Rocket’s senior notes, which are guaranteed by Rocket Mortgage and its subsidiaries, and will be further guaranteed by Mr. Cooper and its subsidiaries upon the completion of Rocket’s acquisition of Mr. Cooper Group Inc. Additionally, Redfin’s shares were delisted from Nasdaq, and its reporting obligations under the Securities Exchange Act were suspended.

The most recent analyst rating on (RDFN) stock is a Sell with a $6.00 price target. To see the full list of analyst forecasts on Redfin stock, see the RDFN Stock Forecast page.

Redfin Stockholders Approve Merger with Rocket Companies

On June 4, 2025, Redfin Corporation held a special meeting of stockholders to vote on two proposals related to a merger with Rocket Companies, Inc. The Merger Proposal and the Compensation Proposal were both approved, paving the way for Redfin to become a wholly owned subsidiary of Rocket. The merger is expected to close on or before July 1, 2025, following the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and the satisfaction of remaining conditions.

The most recent analyst rating on (RDFN) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Redfin stock, see the RDFN Stock Forecast page.

Redfin Faces Lawsuits Over Merger Proxy Statement

On May 5, 2025, Redfin Corporation filed a Definitive Proxy Statement with the SEC regarding a merger agreement with Rocket Companies, Inc. The merger proposal will be voted on by Redfin stockholders on June 4, 2025. Several lawsuits have been filed by Redfin stockholders alleging that the proxy statement is misleading and incomplete. Redfin denies these allegations but has issued supplemental disclosures to address the claims and avoid delays in the merger process. The company intends to defend against these lawsuits, which it considers without merit, and believes no additional disclosures are legally necessary.

The most recent analyst rating on (RDFN) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Redfin stock, see the RDFN Stock Forecast page.

Redfin Merger with Rocket Companies Advances

On March 9, 2025, Redfin Corporation entered into a Merger Agreement with Rocket Companies, Inc. and Neptune Merger Sub, Inc., where Redfin will merge with Neptune Merger Sub and become a wholly owned subsidiary of Rocket. The expiration of the Hart-Scott-Rodino Antitrust Improvements Act waiting period on May 8, 2025, marked a significant step towards closing the merger, which is anticipated to be finalized in the second or third quarter of 2025, pending shareholder approval and other conditions.