Redfin Corp (RDFN) experienced a significant pre-market plunge of 9.82% on Friday, February 28, 2025, following the release of its disappointing fourth-quarter 2024 earnings results and concerns over the worsening housing market conditions in Florida, one of its key markets.
The online real estate brokerage reported a wider-than-expected adjusted loss of 29 cents per share for the fourth quarter, missing analyst estimates of a 24-cent loss. While revenue came in slightly above expectations at $244.3 million, Redfin's adjusted EBITDA of $2.9 million fell short of the consensus estimate of $4.75 million.
Exacerbating the earnings miss was Redfin's report that Florida experienced a record high level of homes for sale in January 2025, with inventory surging 22.7% year-over-year to 172,209 homes. This surge was attributed to several factors, including:
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