The tech-based brokerage’s losses were mounting in 2025 before it merged with Rocket in a deal valued at just under $1.8B, according to new documents
Redfin offered an in-depth look at its finances this week — the final look, in fact, before the company was acquired by Rocket Companies in a deal valued at $1.8 billion.
The acquisition closed on July 1. It marked one of two major moves (the other being an acquisition of Mr. Cooper) by Rocket to become a one-stop shop for real estate by bringing brokerage, lending and servicing enterprises all in-house.
The Monday filing, an unaudited review of Redfin’s finances before the merger closed, showed that in its final six months as a separate, publicly traded company, Redfin reported losing $130.8 million. That was up 38 percent compared to 2024.
Revenue was down about 3.7 percent in 2025 compared to a year earlier, and the larger net loss was partially the result of an increase in expenses such as marketing and restructuring.
Redfin earned $501 million in the first two quarters of the year, down from $520 million during the same time in 2024.
As of the date Rocket closed on the merger, Redfin reported having $292.4 million in total assets. That was up from $225.1 million at the end of last year.
According to the filing, Redfin had $974 million in debt as of June 30, with most of it due by 2028. Rocket paid off the remaining balance on a $250 million term loan on July 15. In total, Redfin had $1.2 billion in debts and other liabilities as of the date the Rocket purchase closed.
The financial filing also provided a look at what is known as goodwill, or the intangible value of Redfin’s various services. That portion gives some insight into the value of different aspects of Redfin.
According to the filing, Redfin’s real estate services are worth $250 million. Its rental arm is worth $159 million. And its mortgage services division is worth $51.9 million, for a total goodwill value of $461 million, the filing adds.
Rocket completed the acquisition by issuing $1.5 billion worth of shares to Redfin stockholders at a value of $14.48 each as well as the $252 million debt payoff.
The filing is significant because while Rocket will likely provide some insights into its brokerage operations during future earnings reports, the review may be the last look just at Redfin’s numbers after 21 years in business.
Redfin performance at Rocket
During Rocket’s second quarter earnings call late last month, CEO Varun Krishna also gave some insights into how Redfin has helped Rocket since the two merged, and since Redfin subsequently rebranded its site to highlight Rocket more prominently
“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,” Krishna said. “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.”
Zillow rental agreement
The new financial filing also discusses a deal between Redfin and Zillow. The two companies struck an agreement in February worth at least $100 million that will run for a minimum of five years and potentially up to nine years.
Under the terms of the agreement, Zillow will syndicate all rental listings for buildings with at least 26 units. Those listings will appear on Redfin, Rent.com and ApartmentGuide.com, and Zillow will buy the leads generated from them for an undisclosed amount of money.
“When visitors to our websites show interest in Zillow provided property content, we will send these potential customer leads to Zillow through an application programming interface,” the new filing states. “We have agreed to meet certain minimum thresholds for delivering these leads. Zillow will pay us for each valid potential customer we send them. The payment rates will vary depending on the type of property.”
Recent settlement
Redfin also settled a lawsuit filed by its co-founder and former CEO David Eraker, who left the company in 2006 and started his own firm, according to the filing. Eraker claimed Redfin was infringing on four separate patents filed by his new company.
Redfin marked two court victories, though Eraker vowed to appeal the case. Redfin and Eraker settled on July 28 for an unspecified amount, according to Law360.
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