Redfin Lost Market Share, Missed Estimates and Cut Its Outlook. Its Stock Is Falling

Core Insights - Redfin missed profit and sales estimates, leading to a decline in its U.S. market share [1] - The company reduced its full-year adjusted EBITDA guidance significantly [1] Financial Performance - Redfin reported a third-quarter loss of $33.8 million, or $0.28 per share, compared to a loss of $19 million, or $0.17 per share a year ago [1] - Revenue increased by 3.4% to $278 million, but this was below expectations [1] - Adjusted EBITDA fell to $3.9 million from $7.7 million in 2023, a reduction of nearly 50% [1] Market Share and Sales - Redfin's market share of U.S. existing home sales by units decreased to 0.76% from 0.78% a year ago [1] - CEO Glenn Kelman indicated that August and September sales were $7 million below expectations [1] Guidance and Costs - The company revised its full-year adjusted EBITDA loss forecast to between $15 million and $22 million, down from a previous expectation of breakeven [1] - Redfin incurred unexpected costs of $2 million related to changes in agent compensation and an additional $1 million for integrating its rental property program [1]