Thanks for joining Ygal Arounian and on the Citi Internet team here with Chris Nielsen from Redfin, Redfin CFO. Really excited to have you here. Yeah, thanks so much for inviting us. Thanks. Appreciate it. Thanks for joining us. All right, let's. I have to ask a macro question. I don't know, I didn't really know, like, the best way to kind of formulate it, right? I mean, high rate environment, you're not gonna sit here and kind of prognosticate on where rates are gonna be a year from now. But, you know, we're in this weird environment where there's still demand, but there's not enough inventory, affordability is challenged. You know, in that context, you know, what do you see is your opportunity to kind of work around that and, you know, control the things that you can control? Sure. So just on the macro, I think you're highlighting the two most important things. That's that rates are up, that's pressing on affordability, and at the same time, inventory remains low. That's keeping transactional volume down, just generally. In terms of the what we can control portion of that, we do think of a couple things. One is just to be ready to serve customers really well today. That in that environment, there is still a lot of demand from consumers. People are interested in purchasing homes. Because of those two factors, they're having to navigate through it even more than they ever have. But that's the place where our agents can be helpful, well-positioned to help those customers today who are in the market, and the ones who are just one step behind, and will be expected to join that market here in the next few months. So delivering service is the most important thing in the business today. I think the second thing is to continue to have the business set up, even as we're reducing costs, being really careful about costs in every portion of the business, to have the business set up for growth going forward. That we do feel like there's a big opportunity as the market rebounds, whenever that is, and we wanna make sure that we're retaining the portions of the business that allow us to have that growth, and keeping the costs down wherever we can besides that. So those are the two biggest things: service delivery, and then managing cost structure in the right way to be poised for growth. Okay. So that goes into, you know, what was probably one of the most impactful things from 2Q, right? Which was you, you'd been targeting Adjusted EBITDA break even or positive this year. You pushed that out by 6 months. Yep. So just talk through kind of the factors and thought process to, you know, do kind of whatever it takes to meet that target versus, you know, push it out, given the current environment. Yeah. So, the top line, our market share gains haven't been what we were hoping for, what we expected, and as a result, we're not gonna get all the way to those original profit targets for this year. T he consideration we had was whether to further reduce expenses there. A s we thought about that, it would have us digging into areas that we think are performing really well right now. T hat includes top of the funnel activity on the website, converting website visitors on through to customers, and continuing to set up the business again for future growth. S o it just put us in a spot where we felt like we would have to dig into places that we think are really valuable for the company, for shareholders over time. A s a result, we decided to push that target out. Again, we think that was really the right decision, given where we are and the macro environment we're seeing. Okay. Let's kinda dig in on that a little bit. We'll talk about all these specific areas in more detail. You guys have gone back and forth on a lot of kind of building what makes Redfin, Redfin, right? Why, why... You know, what is it about now that you kind of see the all those pieces in place and kind of ready to go? You know, is there more to kind of tinker with, or are you kind of set? The answer is that we're set. We feel like we've put together the pieces really we've always wanted. Having brokerage capabilities, being able to deliver service to customers, doing that from a website that has 50 million monthly visitors, that really fuels the growth in that business. T o be able to augment those services with mortgage and title. We know there's a profit opportunity there, and we also know that customers want that set of combined services. It's better for the customer, and we can close on time better for the customer if we've got things set up that way. W e've been extremely pleased with how rentals have started to be a bigger portion of the business. What's happening there is that we are increasingly seeing customers consider buying a home, and then also think about renting for a period of time, given what I mentioned earlier, and that's just that inventory levels are so low. So this really is the combination we've been driving to, and we feel like it sets up well going forward. Okay. I think one of the—there's just been a lot of, you know, the macro is the macro, but there's been a ton of investor, let's say, excitement around technology kind of changing the transaction within real estate. You know, something that's kind of been hasn't seen this big technology revolution yet, right? We've seen it kind of at the portal level, at the informational level. One of the big focuses for you guys has been over time on the kind of end-to-end transaction. Right Y ou know, you got into iBuying with Redfin, now you exited, kind of some things have moved back and forth. You're not giving up on that. But talk about the, that kind of like, next leg of real estate, real estate tech. You know, why you still see that opportunity to kind of displace the transaction, the legacy players in the space, take share, you know, where we go from here on that? Sure. So I, I do think that the, the website is really where this starts, which is we're continuing to meet people from the mobile application, from the website itself, that really is what drives the business going forward. That's the funnel for the rest of it. Y ou know, just in terms of technology, we continue to be excited about lots of aspects of technology. I'm happy to talk about AI, a variety of things. But I think we've become just as convinced that some basic blocking and tackling is important in terms of helping customers get all the way from the beginning of a transaction to the end of a transaction. That, sure, technology can help with that, but things like introducing the customer to a loan officer, we've found that more important than the technology solution there, is a person-to-person solution. I think our learnings over the last couple of years have just highlighted that having these businesses together, being able to deliver them seamlessly, person to person, is just as important in terms of getting to the ultimate potential of the business as the raw technology itself. Okay, so let's kind of go to, I think, what's been the strongest part of the story, and that's been the, the Top of the Funnel, the traffic that you're seeing to the site. You've talked about taking share from your competitors, so maybe we could just elaborate on that. You know, the share gain you're seeing, what you think those key drivers are, that are allowing you to, to do that right now. Yeah, so this has mostly been traffic optimization, search engine optimization. We're competing really well for raw searches on Google, on various other platforms. There's no silver bullet, there's no magic in that. We mostly deliver that through a variety of tech-related initiatives, making sure the right information is available. We think we're getting a benefit, an extra benefit right now from having integrated that rentals information on redfin.com. That is further improving our search rankings and is driving just some raw searches. Because, again, people are flipping over from considering a for-sale property to also think about rentals. S o, again, there's been no one thing, but this is mostly about search engine optimization, about building the right capabilities for consumers and for the search engines themselves to see what we have. P eople seem to be responding to that really well. Our most important traffic franchise over time has been self-generated traffic. So these are searches that people set up, consumers set up after they've been on the website, after they've looked at a property in a neighborhood, or a city, or at a price point. It's very easy for that person then to receive more information from us about price changes, new homes that come on the market. S o, that technology has not been left stable. We're continuing to make it better as well. So those are probably the two most important things. Okay. T here's more to come on that front? We do feel like there's a good roadmap here. Just going back to my very earliest comments on growth, it's part of the reason we've been continuing to invest in our growth technology, our growth marketing teams, because we do feel like there's more potential where we've gotten this. Okay. How do you think about brand marketing and how that drives the ability to kind of gain share over time, too? Sure. So we'll continue to be a brand marketer, but we'll do it according to what's available in the market. Just as an example, earlier this year, we were running a television ad. We pulled back on that television ad because we could see the housing market was slow. W hen it's slow like that, no amount of advertising is going to convince someone to buy a home. S o that's a place where you've seen us be thoughtful about return on investment and pull back when the opportunities are less, and play into it when we think the opportunities are greater. So we'll continue to have that as part of our overall strategy and make use of it as we not only think it'll be most effective, but can see it'll be most effective. Okay. So that's been the good part. The challenge recently has been on the close rate side and bridging that lead to a closed transaction. So, you know, that's an area you've kind of tinkered with over time, too. You've increased customer loads and decreased them, and you kind of, you know, played around with the kind of, support agents that lead agents get. Right. Just talk to us where you are now in that path, and what are the things that you're focused on to improve that close rate? Sure. So that is probably the biggest challenge in the business right now. We're meeting customers, we're not getting those customers all the way through to close transactions at the rate we want to, and so it's a heavy area of focus. It's probably the top priority in the company right now. Some of this is about core blocking and tackling, make sure our agents are set up well to be able to meet customers early in their experience, to forge that relationship, even if it's going to be the case that the customer is searching for a home for a long time because inventory levels are so low. So that's been a big focus on the part of the team. S omething else that we talked about on the call is that we are interested in a change to our agent economics, to agent compensation, where we'll be running a pilot in a couple of markets. We think that that pilot will help attract agents who are interested in getting a little bit higher split if they've sourced the transaction, and a split similar to what we've always paid if Redfin has sourced that transaction. T he purpose of all of that is that we know that in some cases there are more expensive homes, where the customer would like to meet an agent who's got a little bit more experience. W e think one of the ways to be able to attract the agent who's got a little bit more experience is through this compensation program. It's a place where we're pretty interested. It's in these few markets because those markets also happen to have some of the more expensive homes, and so we can see that's a pressure point, and we want to continue to improve our service there. Okay. All right. So that, that's really important. That's, at least to me, at the quarter, when you guys spoke about this, that was, you know, your, your full-time employee agent model, was a kind of core to what Redfin stood for, historically. Right. So you're testing this in a couple of markets. Does that change how you operate in those markets broadly? Does this roll out kind of fully over time? You know, just a little bit more on the impact of that. Yeah. So you should think of this as really a similar model. No change in terms of the model. Still full-time employees, still entirely working with customers from the website, but then augmented in some cases, if these agents have customers they've worked with previously, where they're sourcing transactions. So really, this is a compensation change for the agents. It's a more dramatic one than we've sometimes made in those markets. But it's no more complicated than that. In terms of whether this rolls out more broadly, I think the first place to start is we'll need to assess the effectiveness of the pilot itself, whether we're getting the kinds of results that we want to, including the heart of what you were just saying, and that's that we would expect this. We do expect this to improve close rates, but we'll want to see that clearly in the data. I t is possible that there'll be more markets included with this program over time, but it'll depend on both those close rate improvements, but then also just the overall economics of the business. Mostly, we're pleased with how markets are operating, but we do think that in some of these places, there's a greater opportunity than we've been able to get to so far, and we think this is one of the ways to, to unlock that. Okay. We'll come back to that, I think, for a little bit more because it's important. But on the close rates and the challenge there, does the macro environment play a role in that at all? You know, there's still demand, but there's not- Yeah ... a lot of inventory. I know that's factored sometimes. No, there's no doubt that the macro environment is not helping things at all with regard to close rates. We'll have to power through that, though, and so, you know, we're not going to be satisfied until we make progress here. But just the raw lack of inventory is probably the thing that's holding back the market the most right now. S o even if customers are active, they're navigating through what's lower affordability now, it's hard to find a home, and that will be, you know, at least somewhat of a depressant on close rates. Okay. H istorically, were you, you know, before you just kind of switching or, you know, on your normal model, were you generating all the leads for your agents, or were you- was there a good amount of agents that were- Yeah ... bringing in their own leads, regardless, or? The vast majority- How does it involve? Right. The vast majority of transactions have always been sourced from redfin.com, but there's been a smallish portion, call it 5% or 10% of transactions that were sourced from agents' own networks. I expect that under this pilot model to be slightly higher. I'm not sure it will be dramatically different, though, in that it'll still be the case that our agents will mostly meet customers from the website. That, that's the thing that most agents want. Right. That's the thing that is actually appealing about this compensation program to the agents we've spoken with so far, where they say: "Yes, absolutely. I'm definitely interested in joining Redfin, but I've got a little bit of a hang-up right now, in that I do have some of my own sourced customers, and I feel like I should get more of the economics in that transaction." T his is a way to see if that turns out to be effective or not. Okay. The other big shift, this is not as recent, but still pretty recent in your, you know, agent kind of focus, is a little bit more around pushing a little bit more to partners. So you've got your full-time agents, and then you've got partners that kind of spill over on your leads, and you're changing how you approach that. I think, you know, one of the biggest challenges under the full-time model for you guys has been capacity planning, right? Market gets high, you have to hire agents. Market cools off, you have to let them go. Yeah. So, why is this so important, and how does it factor in? Yeah, so this is a little bit of a change where we are being somewhat more accommodating to volume going to partner agents going forward, and it is a recognition of the fixed costs that are associated with operating the brokerage business. S o, given the volatility of the market over the last few years, it's become clear to us that we would like to have somewhat more of the volume going to partner agents. That provides some more insulation for the company, for our own agents, against some of the ups and downs of the market. S o, you know, I would describe this as a turning of the dial. It's not a complete change from how we've always operated the business. It's maybe a little bit more of a return to how the business was four or five years ago. But we do expect about 45% of the volume, 45% of the customer introductions this year to go to partner agents. We expect it to be higher than that as we go into next year. S o we've been turning the dial here a little bit more towards partner agents, and I do think it creates some extra resiliency in the business, just as we continue to cycle through some of this macro environment. Okay. You've also noted it as a factor in helping profitability. How does that make a difference? Yeah, it goes a little bit to what I was talking about, which is we do have, you know, very low fixed costs on partner transactions. There aren't HR business professionals to support those partner agents. There's actually not a lot of infrastructure that's required to run that business going forward, and so, it, you know, it is a factor in terms of profitability. The reason that we're careful about this, though, is that we know that our own brokerage agents close at just a much higher rate than partner agents do. S o the way you should think about this is that we're turning the dial here on a marginal set of transactions, where the profitability is actually pretty similar between partner agents and brokerage agents. But for much more expensive homes, we feel really strongly that given that close rate difference, profitability is just much higher serving customer through the brokerage. S o you'll continue to see us do both, but just trying to give a little bit of a sense for, you know, where's the dial turning and all of that. Okay. In terms of the partner agents and their ability to close versus your own agents, and maybe speak to what the difference is, why your agents are so much better. Obviously, you know, they're your, your employees, and they've probably got a lot more access to your tools. Why is it so much better? C an you take some of that and give it to your partners so that they can close a little bit better, too? I don't know if you care to be compared to Zillow or not, but in the past or Zillow's over time also done a lot of these things to help- Right ... you know, their agents kind of do a better job at closing. Sure. So, our own agents close about 40% higher than partner agents do on average, and a lot of that does have to do with the technology and the handoff between the customer and the agent. What's a really powerful tool has been the ability for a customer to come onto the website, and with our own brokerage agent, schedule a tour tomorrow or tomorrow afternoon, or whenever it is. It's been more difficult for us to be able to put that together with partner agents, in part because those agents are not only working with Redfin customers, but a bunch of other customers who consume their calendar, who consume their time. So I do think that there are things that we can and will do to improve close rate with the partner agents. Those are... You know, some of them are technology related, some of them are just in how we work with those partner agents, and in particular, making sure that we're attracting the best teams to be able to serve our customers. So we'll keep working on that. T o the extent those two things close up, it will even more favor us sending transactions to partner agents because it'll get us just that much closer to similar kinds of economics. So, you know, in my mind, we want to keep working both sides of this equation. I s there a greater or lesser differences? We'll adjust the mix accordingly. Okay. So share gain, share loss has been a huge focus for investors, share part of the story. You've consistently been gaining share. Yeah, I remember been covering you guys for a while. There's always a kind of push for, you know, why not gain share faster? So and then over the past couple of quarters, you lost share, given you shut down RedfinNow, you laid off some agents. You're talking about potentially getting back. Well, you said 4Q, maybe in 3Q. Right. What are the factors to get back to share gain in 3Q? You know, what gets you a little bit higher or lower? Y ou know, in terms of that, like, bigger question of how do you get gain share faster, what are the dynamics? Is it just improving the close rate? What are the big things to look at? Right. Well, we are navigating through a bunch of changes. We do think as we get into the second half of this year, we will have lapped a lot of changes in the business last year that created headwinds on share gain. We made the right decision to lay off agents because we just had more capacity than we needed as the market turned down, but that was very disruptive. We can see now in the data to customer relationships. It's just important to remember that, you know, a customer we meet today, that person is not going to close on a home tomorrow. It'll be months from now before they close, and so that's one of the reasons share gain has been a little bit more challenging than we expected. That's water under the bridge as far as we're concerned, though. The focus right now really is on what I mentioned early, earlier, which is service delivery, showing up at the right time for the customer, making sure we're working against what those customer opportunities are. As we get later into the year, we can see, just as we're looking at the year-over-year comps, that we think we're in a little bit better position moving forward. There's nothing magical about what we need to do here in the short term. I think a little bit longer term than that, there are two important levers. There always have been two important levers to share gain for us. One is at the very top of the funnel. We talked about it earlier, but it'll be important to continue to gain website traffic, and at least as importantly as that, convert that website traffic into customers who want service. C ontinuing to address close rate, including through better service delivery, but also this pilot that I talked about. But those are the components that go into longer term share gains. But as I mentioned earlier, we do think of this as the top priority in the company, and, so it's getting the due attention as a result. Okay. One more on the kind of brokerage, the core brokerage. You know, we'll, we'll move on to some of the other areas. I'm not sure how important it is, but I feel like it's worth just hitting on. You entered into partnership with Zillow on kind of new home sales. How important is that? Is that something that can move the needle? Y ou exited iBuying, but partnered with Opendoor. Mm-hmm. Is that having an impact? What are you seeing there, and what do you think about those partnership opportunities in general? ... Sure. So maybe starting with Zillow, we are going to be accessing new construction inventory that Zillow has already accumulated. That's going to be great for our customers. Again, people are often now thinking about buying a home other than the existing homes that are on the market, and so that inventory is arguably even more valuable today than it was a year ago, because so many of the homes that are for sale now do come from new construction inventory. I do think this will end up being a material difference in the business in terms of the bottom line. The revenue will continue to be relatively small, but I think this is one of the most, you know, in the category, one of the most exciting opportunities in our business right now, which is we're continuing to get more advertising revenue all the time, and that was up in the most recent quarter, over 150% year-over-year. That's revenue, but it's also extremely lucrative, and so we've been really pleased with the kind of progress there. So I, I think that'll have an impact both for consumers and on the bottom line. Our relationship with Opendoor continues to be productive, but pretty small at this point. I think there are just relatively few purchases going through iBuyers at this point. So we're glad we have the relationship, but it's pretty small. Okay. A lso, glad you exited iBuying? We are glad we exited iBuying. You know, I think that there have been a variety of changes in the business over the last year plus, and that was a good one. That was important in terms of the capital consumption of that business and, the operational complexity associated with it, and I think it's really allowed us to focus on other aspects of the business that are just more valuable right now. Okay. The digital products, you mentioned advertising. So is the new homes, that, that's an advertising product, that partnership? That's right. Okay. So that'll end up being revenue that comes through. As reported, it's called our other segment, but that's where it'll come through. Okay. T here's other advertising, right? T here's other digital products, too, and those are all, like you mentioned, high margin, so important on the profitability path. Can you talk about that a little bit? Sure. So, all those are forms mostly of advertising revenue, where we run ads from a network on the website. We have some direct advertising partners who also run ads on the website and through other media. T he new construction partnership will be important. W e also have a mortgage marketplace for consumers to get quotes on a mortgage through Bay Equity, but also through a variety of other partners. That's been another form of that advertising. So those are all important initiatives, and, we do believe that there's more potential there. Right. S omething that might be more valuable when people start getting mortgages again. Yeah, and you know, it's the kind of thing also that helps us navigate through the ups and downs of the transactional volume that's in the business. Okay. So rents, you bought that out of bankruptcy. Bit of a turnaround effort. Can you talk about where you are there, especially around, like, the, the sales cycle and kind of the initiatives there? I think the, the rental market's a little bit healthier than the, the purchase market, given the, the dynamics, but what are you seeing there? Y ou spoke about, being Adjusted EBITDA profitable in 4Q. Are you on, on track, and what are the, the pieces to get you there? Sure. So I would describe that business as having turned around. The business, at the time we acquired it, needed to start getting positive revenue growth. The team has now achieved that. Actually, revenue growth is accelerating. It's been fantastic to see. That's been done in part through reorganizing how we go to market on the sales side of things, but also continuing to shore up the products that we offer. Here, just to describe it, this is mostly a set of advertising and other services that are provided to apartment buildings and to building owners to help them get eyeballs and ultimately customers to those properties, so they can go ahead and get them leased up. S o, again, the business turned around. We do think there's a lot more potential here. We are on target to get to Adjusted EBITDA break even, or profits by the fourth quarter of this year. It will be a combination of both continued revenue growth, but then also continuing to manage the cost structure there. Just generally, our marketing costs go down during the course of the year as marketing becomes more expensive going into the holidays, but also as there's less activity with consumers looking to move, typically the dollars come down. So that's, that's part of the change you'll continue to see in that business also, is managing our expenses. At the same time, we'll keep growing revenue. So really impressive turnaround on the part of that team. I do think that we're benefiting from some amount of a market tailwind here also, in that that market is one right now where more buildings are coming online. So those new buildings, as they come online, they're not fully leased up, and that encourages the building owners to want to advertise, and so I think at least in some part, we're benefiting from, from that market condition. Okay. You have a pretty big competitor in that space. How's the competitive environment been as you've gone through this turnaround? I think it's been everything that we expected it to be. So we have a couple of, couple formidable competitors there. We have a lot of respect for the businesses they run, and so, you know, we fight tooth and nail every day to show that we can deliver great results for those buildings. One extra arrow for us right now is that I mentioned earlier, but we've put that rentals inventory on redfin.com.... That's continuing to gain more traffic, and so it's an, yet another extra thing to be able to say to those building owners, which is, "Hey, it's, you know, the website traffic from Apartment Guide and the other properties we've long operated, plus there's this very large set of customers coming from redfin.com. That's just an extra benefit to advertising with us." S o that crossover of people who are potentially looking at for-sale properties and then deciding, actually, they may end up renting for a period of time, I think that's been, you know, it's been pretty interesting to building owners to see that. Okay. Are you seeing people, rental consumers, customers start shifting to the acquisition side as well? Like, do you see a steady flow back and forth? I think that's what we'll see over time. Right now, the dynamic has been a little bit more one-sided, given that inventory for for-sale properties has been so low. Right. It is part of the thesis for owning that business, is that it allows us to forge a customer relationship even earlier, that we do think ultimately ends up in a for-sale transaction. Okay, great. Another area that you made a bit of a pivot on is mortgage, where you were initially aiming to build that business out yourself. You acquired an established company there, Bay Equity, in 2022. Integrating those two businesses, it's also standalone, but, you know, the goal being to attach more mortgage more easily, maybe more cost-effectively. So how's that been going? I know the attach rate took a step back this quarter. I think it was more of a macro issue, but, can you expand on some of those puts and takes? Yeah, I think overall, we've been extremely pleased with how this acquisition has gone. The attach rates came up faster than we expected in the year or so right after acquisition. You're right, in the most recent quarter they were more flat to slightly down from the prior quarter. We do remain convinced that there's lots of opportunity to further drive attach rates there, just because we can see that there are markets that are pretty significantly above our overall attach rate. We have markets above 30%, and then as we dig into those markets, we can just see that they are operating better than the markets that are lower on attach rate. Right. M ost notably, and this goes back to a little bit of my earlier commentary, but there's just a really strong connection between the local brokerage agents, the local brokerage management team, and the loan officers in those markets that are doing really well. S o that's where there's just a really big focus right now, which is, hey, there are some places where we're not executing as well. What do we need to do differently in terms of getting those people together? Are there changes that we need to make, either in terms of the agent to loan officer assignments, or how those markets are managed, or really any other things? S o it does, again, have us optimistic that there's more growth there. But the other thing I'd say is that we do have our agents pretty focused right now on getting to closings, and so while we want to drive mortgage attach rate as well, I think it's, you know, even more important at this moment to make sure that we're not taking attention away from getting to those closings. Okay. We've got about five minutes left. I want to see if there's any questions from the room. Take a few. If not, I can keep going. Those are mic comings. Just to follow up on the rental business, I think, pre-bankruptcy, it was doing maybe $50 million or so of EBITDA. Can you talk about the path back there? Do you expect, you know, you'll be able to achieve that and, you know, maybe what... Maybe a little history, just what, what went wrong there prior to your ownership? Sure. So the, the business at various points has generated a lot of Adjusted EBITDA. What began to happen prior to our acquisition was that revenues were headed down. The business was just, frankly, not competing well on the street every day to win business from local apartment buildings. That basically, if you don't deliver enough leads and don't do it in a cost-efficient enough manner, it puts you in kind of an upside-down position. T hat's the business we acquired, that's the business we knew we were acquiring, and that it would take some amount of reorganizing, refocusing to get the customer growth side of things going, and then ultimately be able to deliver better value to the apartment buildings. S o that's what's happened, that we can just say with a lot more confidence now to those buildings that we're delivering, you know, more than your fair share of leads, and this is a valuable contract to have entered into. S o just as I think about that business going forward, you know, this would be the kind of statement that I wouldn't include in your models as of today, but we do think the business has a lot of significant Adjusted EBITDA potential over time to get back to, you know, really strong levels, and it will mostly be about continued revenue growth. That's a place where we're, you know, really seeing the results today, with revenue growth expected above 20% on a year-over-year basis, and good momentum on that front. Anyone else from the audience? Okay, on the tech side, you mentioned AI, so I have to follow up. Sure. What are you guys doing there? How meaningful is it for a product like yours? I think it's a pretty interesting opportunity in real estate, in that we know that real estate is inherently a data-intensive search. It's a complicated search for a consumer to do. The way we're thinking about it is that we are working closely with a variety of the providers of that technology to make our data available through their searches. I think that we'll want to do that to continue to compete effectively. T he second thing is, we do think that it can be effective to answer some customer questions that go right now to either our agents or to our support staff, that there's information available, it's just not necessarily organized in the way the customer is asking the question. S o when we see things like that, we'll want to use some of those AI tools to make that information available on Redfin. Just more generally, we've long used some of those models to provide things like the estimates we provide on the value of homes, recommendations for customers, those use those kinds of technologies. But the two that I mentioned are the ones that I think are coming to the forefront right now, that are a change in that space. So I think there's an opportunity. I think there's particularly an opportunity for us, in that there are only a few companies who have the kind of deep data that we have and technical expertise, and so we're not gonna build our own AI search tools or core infrastructure, but we will want to use those as best we can for customers. Okay. I want to end off on capital structure, capital allocation. Yeah. You know, it's been a focus for investors. Capital structure got a little complicated. You're starting to unwind some of that. You've got converts, you've got preferred, had some straight debt. You know, shutting down RedfinNow was a good start. You've bought in some of those converts, but there's still plenty left. The prefers are still there. You know, where, where do we go from here, and how do you think about the capital structure? Yeah, I think the path that we've been on, we've been really pleased with, taking dollars from RedfinNow, repurchasing our own convertible notes. That's already materially changed the capital structure. We're driving hard to profits in part for that very reason, and we'll keep paying attention to what the capital markets offer and be opportunistic that way. Okay, great. Thanks, Chris. Right on time. Thanks, everyone, for joining. Thanks again.