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edfin CEO Glenn Kelman apologized to shareholders for the company's disappointing third-quarter earnings but expressed optimism about future growth. The brokerage reported a net loss of $33.8 million, significantly higher than the $19 million loss in the same period last year. Unexpected expenses, including costs associated with accelerating the expansion of its Redfin Next pay plan, contributed to the losses.

    Kelman attributed some of the decline to one-time expenses, such as replacing agent salaries with higher bonuses and restructuring operations for its Redfin Concierge service. However, he believes that the rapid switch to Redfin Next is resulting in a better sales force that will allow the company to "go on the attack" when the housing market improves.

    Redfin plans to increase its marketing and advertising spend to boost market share as the housing market recovers. Kelman said pairing the company's sales machine with more advertising should enable faster growth in 2025. The brokerage aims to hire hundreds of agents between now and next spring, further expanding its presence in the market.

    Industry rule changes required by the NAR settlement have had a minimal impact on commission fees so far, but Redfin expects this to change as the new home buying season begins. With its existing lower fee structure, Kelman believes the company may gain an advantage in increasing market share.

    Key statistics for the third quarter include revenue of $278 million, up 3% from the same period last year but down from $295.2 million in the second quarter. Cash and cash equivalents stood at $165.7 million, while net income/loss was a loss of $33.8 million. Adjusted EBITDA came in at $3.9 million, down from $7.7 million a year ago.

    Redfin also recently rolled out its free rental listing tool nationwide, allowing homeowners and property managers to connect with potential renters more easily.