Great. Good afternoon, everyone. Thanks for joining. My name is Bernie McTernan, and I am the internet analyst here at Needham & Company. My pleasure to introduce Redfin. We have CFO, Chris Nielsen. Chris, thank you so much for joining. Thanks for hosting us, Bernie. Really, really appreciate it. Great. Well, in pretty short turnaround from earnings, I guess maybe just to start, what are, what were some of the key takeaways from earnings? Would love to just get your perspective. Yeah, from our standpoint, we've been making a lot of operational progress in the business. We're excited about where the business stands right now. Over the last couple of years, we've taken a lot of costs out, made a lot of improvements. We're turning the corner to profitability in what's a pretty slow housing market, and so that has us excited for the future as we continue to drive the operations forward. We think there's just an awful lot of profit opportunity in the business. So that's been the main message, and we're glad to be able to deliver those results in Q1. What are some of the drivers to be able to get that you think can get you the EBITDA profitability this year? Sure. So we provided guidance specifically around our expenses for the rest of the year on marketing, where we spent more marketing dollars in Q2 than we did in Q1, but that'll come back down in Q3 and Q4. So it's important to get a sense for the operating expenses that way. We also think there'll continue to be operating expenses that'll come out of the business. We've been working on a variety of back office integrations, and that'll bring down some costs and actually deliver better service as well. On top of that, we expect our digital businesses to continue to grow and perform better as the year goes on. Our rentals business has been growing revenue nicely, and that's starting to make a big difference for the overall bottom line. Plus, we've been adding advertising. And then maybe just lastly, and perhaps most importantly, in our real estate services segment, where we help customers buy and sell homes, we typically see a little bit more revenue in Q3 than we do in Q2, and maybe a little bit more gross margin as well. And you kind of put all those things together with what we delivered in Q1, which is a significant improvement in Adjusted EBITDA year-over-year, about $40 million, along with the guidance that we gave for Q2. And we feel really good about the way the rest of the year shapes up. Great. I know this is a loaded question, but how does the macro feel right now? I think it feels okay. So you know, good news on a relative basis today that inflation continued to be in line with people's expectations. I think the most challenging thing for us, maybe over the last year or so, has been volatile mortgage interest rates, and it's been nice to see those maybe stabilize here just a little bit. So there are still an awful lot of buyers who are interested in purchasing homes. At this point, they're getting through some of the sticker shock on affordability, both from higher mortgage interest rates, but also home prices that are up. So buyers are in the market, they're serious, they want to get deals done. Inventory has continued to be relatively tight, although maybe there are a few signs of a bit more coming to the market now. So, you know, I think we're medium encouraged. As I said earlier, it's still a low transaction market relative to all the historical figures. You know, we're expecting maybe 4.2 million existing home sales this year. That's way down from pre-pandemic levels, where there were 5.2, 5.3 million homes sold on an annual basis, and certainly way, way down from the existing home sales that ticked up in the middle of the pandemic. So in a pretty slow housing market, again, it does feel to us like there should be room for improvement over the next couple of years. Got it. And that 4.2, what's that on a year-over-year basis? That'll be kind of flat, maybe up a little bit- Okay. Maybe down a little bit, just depending- Okay ... on how the rest of the year shakes out. How sensitive is that guidance of EBITDA sensitivity to the market? I mean, I know guiding to flat, but like, if you know... Are there other areas where you could save costs if the market does continue to come in worse? Sure. So our guidance doesn't expect that the housing market gets materially better or materially worse. Mm-hmm. If it gets better, of course, that'll be good to the bottom line for us. And if things slow down a little bit, then we would pull back on costs. But mostly, we don't expect that the market could be much below the kinds of levels we've seen more recently. At this point, the number of transactions getting done are really the ones where people need to move. Mm-hmm. And so there just aren't a lot of, I guess I would call them discretionary moves happening at this point. Yep. That does just feel to us like it's pretty hard to see how it comes down a lot from here, unless there was something, you know, really dramatic from a macro standpoint, and we just don't... You know, we don't have visibility of that. We don't see that. Okay, got it. We're still just watching mortgage rates for the unlock for, you know, where this industry can get back to growth? I think it's some combination of that, as well as on the inventory side of things. Mm-hmm. Those two things are, of course, related, that part of what has held back inventory is that some existing owners of homes would like to put their home on the market, and yet they don't want to trade in their existing mortgage interest rate of 3% for one that's 7%. And so rates coming down a little bit should provide some more inventory, but also, you know, it is just the case that now some people have been wanting to sell for a couple of years. They've deferred doing that, but they now realize, "Hey, I, you know, I'm now a half an hour farther away from my office, and at some point here, I'm going to need to move," and that should provide some catalyst. Okay. And so for going down to real estate services, took 5 basis points of market share from 4Q into 1Q to 0.77% of existing home sales by units. What's the driver of the share gains, in your view? Yeah. So, one contributor, which I'm sure we'll talk about, is the progress we've made in a new compensation program for some agents in our markets, Redfin Next, where we just saw outsized share gain in the markets that have that Next program. But just more generally, it does go back to the basics of our business, which is we're continuing to take market share at the top of the funnel, meaning we're gaining website visits well against our competitors, and we're then turning those into closed sales better this year than last year. That's exciting for us. Again, I'm sure we'll talk some more about these programs, but an example is Sign & Save, where we've really seen that asking the customer for a signed buyer's agency agreement early in the transaction has really improved close rate for us. We start putting these things together, and they can really make a big difference in terms of market share gains. Yeah, maybe let's stick on Sign & Save. Yeah. Maybe just to level set, can you remind us on where that commission rebate has been? 'Cause, you know, it's been swinging around a little bit just to, you know, get that history to start. Sure. So, this program works with agents who are working with us to buy homes, so where Redfin is representing them as a buyer of a transaction. And it used to be we would provide a refund to many customers as part of a program. We discontinued that in 2023 because we found that many buyers weren't influenced by the savings that we were able to provide to them. What we're doing differently this year is that we are offering 25 basis point refund to customers if they sign a buyer's agency agreement before their second tour. What's powerful about that is that it really makes our agents connect with the customer, ask for the business, and convince the customer that we should work with them. Sometimes the customer says, "Well, actually, I'm not really interested in buying a home quite yet." That's super important information for us to have. On the other side of things, many customers do sign up for that, and when they do, we've got a real sense that the customer is serious about concluding a transaction. And so what we've seen is that when we ask for the business in that way, close rates have improved dramatically in the markets with Sign & Save. And so at this point, again, most customers do not end up taking us up on this offer, so the cost of the program is relatively small. But for the people- Yeah ... who do want it, who do sign up, they go through to close at a much higher rate. And so at this point, again, the cost is relatively small compared to the benefit we're getting on close rate. Why isn't the uptake higher? Yeah, it is just because many people are not quite ready to move forward with a transaction at that point in their- Okay ... shopping experience. Again, that's important for information for us to know that if they're not quite ready to go on a transaction, if they're still thinking about now is the right time for them to move or not, it's better for us to know that, and we can then, you know, gear the service with the agent provides to the customer according to that. Right. Exactly, make agents more efficient. So then, as we're thinking about revenue per transaction, you know, should we be going back to 22 levels, is 20...? Like, thinking about the impact of this program. Yeah. What we said last time on the earnings call is that we didn't expect a material impact on revenue per transaction as the result of this program, and that's the way it's played out. So this should look a lot more like 2023 revenue per transaction. Yeah, the higher 20 level. That's exactly right. Okay. It, you know, part of the reason that you don't see a lot of impact from this program is that home prices are continuing to be up. There are various other components, including the market mix across the U.S., that influences that revenue per transaction. You put all those things together, and we don't expect a material change in that. Okay, great. And then the other one of the drivers of market share in the quarter, Redfin Next. May fifth, you extend the program to Chicago, Connecticut, Dallas, New York, Palm Beach, Washington, D.C., and first started the launch in Southern California. What are you seeing in the existing markets? Maybe what did you see in Southern California that gives you the confidence to keep expanding this program? So sure. So this is a program where rather than providing a salary to our agents, used to be salaries were about a quarter of the agent's total compensation, we've moved to an entirely commission-based variable model for agent pay, and that's been really successful. So these four markets in California all grew market share, loyalty sales, sales of more expensive homes faster than the rest of Redfin. And we've been able to hire the kinds of agents we've wanted to in these markets, who come with experience and are able to deliver for customers, particularly at higher price points. On top of that, what we saw was that there was, in fact, an overall increase in gross margin percentage year-over-year in these four markets. So great to see the business results, and then great to see what we had expected come through, and that's that really we were trading salary dollars for commission dollars. And we were excited to again see that pull through to sales. So we have now expanded the program from these first four markets, which we chose specifically because they had higher price points, and we believed that's where we needed to put, you know, really our best foot forward in terms of experienced agents. And we've now expanded to some additional markets, which will allow us to continue building on the experience with those more expensive markets. But then also, we've wanted to test that program in some different kinds of markets. Yeah. ... to see its applicability more broadly across the U.S. So, again, I think we've been really pleased with how this has gone so far. Great. And then the commentary on the call was more launches scheduled for this summer, a much larger wave. You know, as we're thinking about what, what percentage of your transactions or markets, you know, will this be available, and how widespread will Redfin Next be relative to the old way of commissions? Yeah, I think this will be the piece that we'll be paying the most attention to over the second half of the year, where this has gone from a test in some markets. It's been super successful. I think in the most optimistic view, this becomes our standard compensation scheme across all of the U.S. We'll need to see that the tests in this next group of markets are just as successful as the first ones. But we've been encouraged enough to wanna push the pace of expansion, and that's what you see us doing right now, which is, again, to this, second grouping of markets, and then more expansion as the summer goes on. Okay. You took market share in the first quarter with Redfin Next. Now you're expanding to more markets. It's the expectation that market share should continue to increase, and then maybe what was contemplated in the guidance as it relates to that? Right. So we, we did say that we expect year-over-year market share to increase in the second quarter. It fits with what we were just talking about, which is we think we're putting enough, you know, good progress from a close rate standpoint, from an agent capacity standpoint, into Redfin to allow for that kind of share growth. And so that's what we were expecting as the quarter started. And we'll continue to drive it forward from there the rest of the year. Okay. And then just lastly, on Redfin Next, there's a difference in commission split, right, based on where that lead is coming from, if it's coming from your website or if the agent's bringing it themselves. How has that been trending relative to your expectations? Sure. That's exactly the right way to describe this, which is, if Redfin has provided the customer from redfin.com, from our application, we do pay a lower commission split, and then we pay a much higher commission split if the customer comes from the agent's own network. The mix of those two things has been almost exactly what we expected when we started this, with really good pull-through of these extra sales coming from what the agents have been able to deliver. This is probably the thing that we're paying the most attention to as the year goes on, which is, it is really important to us, and to the economics of our business, that the agents met from redfin.com, or the customers met from redfin.com close at a high rate. Mm-hmm. That is part of what makes the economics of the overall business work, and so we'll be paying a lot of attention to how that pulls through the rest of the year. Okay. And then, another area of focus is All-You-Can-Meet. And so it's aimed at driving efficiency, working on more qualified leads. But can you just talk about this program and what you're seeing so far with early results? Yeah. So this is a little bit of a change for us, where previously we would be focused on meeting the customer at the time the customer wanted to go on a tour. So Saturday, 10:00 A.M., we'd say: "Great, we're going to meet you Saturday at 10:00 A.M." We've now moved the focus a little bit to making sure that it is our lead agent, so the person who is ultimately responsible for the transaction, who meets that customer on a first tour. We think it's critical to build that relationship on the right basis, where the lead agent is meeting with the customer, so they can begin to talk about what the customer needs, what the customer wants. And so we have moved to over 90% of the time now, that lead agent, the person most responsible, is meeting the customer on the first tour. The agents have been great about opening up their calendars to make that happen. And then, after that relationship is started, it allows us to have other members of the agent's team take a customer out on a tour. That's fine. The customer can see the house in that situation, but it allows our lead agent, the main person responsible, to be able to then check back in with that customer and really have a basis for a relationship and a conversation about that home. And so we think this has made a difference also just in terms of the close rate and the ability that we have to serve customers well. Right, 'cause wasn't it something like a 60%-65% retention before off that first tour, and now it's closer to 90%? Yeah, it was in the 60s. About 2/3 of the time, our lead agent would meet the customer on the first tour, and we have concluded that it's just really important to start the relationship from the beginning with the main salesperson meeting with the customer. Okay. And when did this roll out? So the program began about October of last year- Okay. but it has expanded to more of the U.S. in the first quarter of this year. Okay, understood. You touched... I wanted to move over to the financials of the brokerage business. Right. So starting at gross margins, you spoke about how Redfin Next is a positive year-over-year impact to gross margins. But how should we think about generally the gross margins of this business trending, especially if we do, at some point, hit an upcycle in either, A, market share, or the housing market? Sure. So really, over the last several quarters, we've been up 300, 200 basis points year-over-year on gross margin. It was 300 basis points year-over-year in Q1. We provided guidance for the second quarter that's up not quite as much year-over-year. But we're seeing efficiency in two areas right now. One is what I talked about earlier, which is agent productivity has been up. And then the second is somewhat related to All-You-Can-Meet and some of our other operational changes, which is the percentage of revenue that we're spending on home touring has been headed down, and that's because we've just been much more efficient at connecting with the customer early and knowing what the customer needs, and not having as many kind of wasted tours along the way. ... Yep, that makes sense. And how do you feel about just the number of agents you have right now on the platform? I know that number's been swinging around a lot. Is it the one you feel good about now? We do. I think you'll see us continue to be acquisitive about agents, particularly in our next markets, where the fixed cost per agent is lower. So when the fixed cost is lower, it's a little bit easier- It's doing, yeah. to hire into things, and so that's probably the place where we'll be a little bit more aggressive about hiring. But more generally, we feel like we really have matched up our agent count, our agent supply with the kind of demand that we're seeing from the website. So, you know, this is the main part of the year. From now through about July or August is when the greatest number of transactions will get done, and we're set up almost exactly in the place we would wanna be, given what we're seeing from a housing market standpoint. Okay. Let's pivot over to the, the NAR settlement. What's the latest in terms of your thinking, in terms of just what it could mean for the industry, and really focus on what that buy-side brokerage commission might be? Yeah. So, there was a settlement announced a few months ago, where the National Association of Realtors has settled a case, and then there were a couple of changes from a rule standpoint in terms of how realtors need to operate. They both have to do with commissions on the buy side of the transaction. And, you know, just as we're seeing it right now, those rules are still coming into focus. We're still trying to get our best sense in terms of exactly what that looks like, although it does seem, with every day that passes, it's more likely that there won't be as much disruption early on with the customer as we might have expected when we first heard about that settlement. So one important point related to the settlement is that we have to work with the customer and disclose what our fees will be for the service that we'll be providing to the customer. Again, the rules are still getting sorted out in terms of exactly what that looks like, but it's probably lighter weight than one might have expected at the time that the settlement was originally announced. So near term, as the rules go into effect later on this summer, there will be some change in terms of how we interact with customers early on, but most of this will just build off of what we've already built for Sign & Save- Yeah. ... where we're already asking customers for a commitment and displaying the contract that ultimately they'll sign with us early on. And so we'll just build on top of that. I think that longer term, there will be more transparency in terms of fees, and I... That, you know, does make sense to us that that will provide some pressure down in terms of fee structure, but exactly the timing of that, exactly how much, you know, ultimately that'll be up to consumers. The point on less disruption than earlier anticipated, was that just everyone went up in arms when this first got announced, so we all just thought of the most draconian scenario possible? Now that the dust has settled, more, you know, rational heads are prevailing, or has something actually changed? I think that really what's going on here is just that the settlement was announced relatively quickly. People didn't really understand exactly what it would look like, and ultimately, it'll be up to the NAR and the Multiple Listing Services to put in place the rules that local real estate agents will need to follow. And just as they're doing that, it's becoming clearer and clearer what we'll ultimately all be responsible for. So mostly, it's just the process playing out. Okay. And so if we do have a scenario that over time there is commission deflation, just how do you think Redfin is positioned relative to other brokerages? We've always offered lower fees, both for sellers and buyers, than our competition, and we do fundamentally think we have a more efficient structure than our competitors. We feel like we're really well-positioned in an environment, in an industry where there's even more pressure on fees. Again, we're focused on operating the business today, but we'll be ready for, you know, different ways that the market may turn and different eventualities along the way. Is there a scenario where your fees stay the same, and the industry comes down to you? Or if there is, you know, or is it kind of happening on both? You know, you're lower on both sides, so it, that net effect might not be happening. I think it's really hard to tell exactly how that plays out. I think our overall view is that most buyers will still want representation of a buyer's agent- Mm-hmm. ... and will be happy to pay for that because they're making an important purchase. But we also think it's really important to provide alternatives for consumers, and and we'll be ready to do that as well. Okay. Pivoting over to mortgage, record 28% attach rate in the quarter, that included 30% in March. So just really strong results in attach, and that's especially something that everyone in the industry is trying to do, and it seems like you're doing a terrific job at it. So what is driving the success there? Mostly, this is core blocking and tackling, where our ability to drive attach rate has so far been mostly dependent on our agents introducing the customer to a Bay Equity loan officer. That person-to-person relationship we've found to be the most powerful component of building attach rate. And so we've made changes in terms of loan officer relationships to agents. We've made sure that there's a good connection between those people. In some markets, we've had to be more active than others to get that matched up, and that's the main thing that's been driving here. The second thing that has started to become more impactful is that in the event that one of our agents doesn't make an introduction to the Bay Equity loan officer, we have kind of a backup system electronically to make sure that introduction happens through email, happens on the website. We're kind of taking an additional opportunity to make the interaction happen if, if our lead agent hasn't picked it up at that point. How would you know if the agent didn't? ... Yeah, so we can tell in the system what connection's been made, and we can tell from the loan officer also. Okay. So we've got some good triggers in the system that way to be able to pick up on it. And so again, we think that that's starting to make a difference here. Okay. And so as the industry, you know, knock on wood, does get back to unit growth, is there anything about, like, low levels of units why the attach is so high? Or do you think, you know, as the housing volume scales, so can, you know, attach can stay at these levels, if not go higher? Our view is that this is actually the most competitive kind of mortgage market because other lenders are light on business, and so they're hustling for every potential lead. You know, it does make sense to me that over time, as those lenders get busier, we'll probably be in even a little bit better position in terms of driving attach rate. Interesting. Okay. And just the unit economics of a mortgage, too. I mean, it's a higher margin, but, like, what does that do to the whole revenue per transaction? Yeah. When we're able to attach a mortgage, it nearly doubles the gross profit dollars- Yeah ... of a transaction. And so, you know, that's part of the reason we're so excited about this, that there's just an extra opportunity. After already working with a customer, we feel like we can serve them better by providing the mortgage as well, but then there's this extra profit opportunity that comes with it. Okay. Let's move over to rentals. Maybe, so RentPath was an acquisition you guys made a couple years ago. How would you, you know, characterize the supply on your platform, whether it's, you know, MDU, single family houses, and maybe how does that compare to what other competitors offer? Sure. So we have mostly apartment buildings. We have fewer single-family homes than apartment buildings. The buildings tend to be of, you know, small to medium to large sizes, and, you know, we're geographically dispersed in that way, so really all across the U.S. And, you know, I think that we, we think a lot about inventory. We believe that that's an important driver because it's that inventory that then encourages customers to wanna look at the website. Yeah. And then, the more customers who are on the website, it drives a virtuous cycle back to the apartment buildings to wanna advertise where there are a lot of eyeballs. And so, that is a key focus area for us right now, is continuing to build inventory on those websites. Got it. And, I mean, maybe let's just frame it this way. Yeah. What are some of the major changes you've made to RentPath since acquiring it in 2021? Sure. So I think the most important thing is what happened early on, which is getting the product set kind of cleaned up, making it clearer for advertisers to know what they were buying, how they were buying it. The sales team has been fantastic about presenting that to customers in a really clear, consolidated way. Mostly, these were things that we just knew we needed to do from the beginning, and that's set the stage for the kinds of progress that we're now able to make. A second key step was taking all of that inventory and making it available on redfin.com. So where someone who's thinking about buying a home can now flip over a tab or, on the same tab, take a look at the rentals that might be available in that market. Because we know many people on redfin.com at this point, are not quite ready to buy, and so it's great that they have the opportunity to take a look at the rental listings that we have as well. That's, again, put more eyeballs on those listings and then compelling to the apartment buildings who are thinking about advertising with us. Got it. And just as you're, you know, talking about eyeballs and portals, how does just, like, the broader competitive environment of the industry feel right now? You know, I mean, both rentals, but probably more importantly, what's going on with, with homes as well, with the Homes.com and, and Zillow? Yeah, I think it's really competitive right now. So on the rental side of things, we compete with Apartments and Zillow. Both of those organizations are growing their rental segments nicely, and we feel like really the three of us are the ones who are kind of largest. And I do think that there's more pressure on smaller players in the space. That's our impression from looking at it. So I think the competition is intense there, and I expect it to continue to be that way, both on the rental side, but you mentioned also on the for-sale side of things with Homes.com. That's another place where there's a lot of competition right now. Okay. You mentioned, you know, in terms of, you know, what you expect to unlock EBITDA this year, you know, other revenue or digital is a nice source of growth. Can you just remind us what's in that bucket, and what's, you know, what are the largest contributors there? Right. So, included in our other segment are two businesses. One is our title business, where we help customers settle their transactions, just in a similar kind of way to mortgage. We think this is a really helpful service for the customer. Here, the attach rate is even higher than the 30% that we talked about in mortgage, where it's around 60% attach rate for our title business. That business is growing nicely at this point. And then, the second business is important, is an advertising one, where on redfin.com, we have both ads for mortgage providers, but then also for other kinds of general purpose advertising. That's been growing even faster than our title business. And as you can imagine from a profitability standpoint, that's a very high-margin business, you know, 90%+, just because the cost to serve is so low. And so, you know, every extra advertising dollar that way really, you know, drops an important way to the bottom line. Yep. And then you also spoke about allowing non-Redfin listing brokers to be contacted through your own website. Seems pretty interesting. Can Can you just talk about this opportunity and, you know, maybe test it, or, like, how long the test is gonna last when it's rolling out then? Sure. So this is another form of advertising on the website. It's something we expect to roll out, you know, call it this summer, where in part, because we think there may be changes in the industry that we talked about related to the NAR settlement, we've wanted to allow for an agent representing a seller, but if that agent is from another brokerage, we wanna give them the chance to advertise on the Redfin platform, that listing that they have available. We think some of those sell side agents will wanna meet those customers, potentially serve them directly, and this will just be a chance for us to participate economically in that transaction. So we'll launch it. We'll take a look at the, you know, relative pull-through of that as compared with providing brokerage services and kind of adjust the offering from there. But this goes all the way back to an idea from late last year, that we thought this could be an opportunity, and so I'm glad we started the development when we did. Great. Maybe moving over to technology. Redfin just has access to a ton of data, whether it's, you know, through their brokers or through the website. How are you leveraging this data to, you know, improve your business and make your agents more efficient? We do think this is a big advantage. The most important part for us is that it allows us to manage the business better because we've got information, not just from the website, but all the way through the transaction flow, and we can adjust our business based on what we see pulling through. So if it turns out a lot of people touring homes, but not quite yet not quite ready to make offers, that influences the staffing we need to have on the touring side of things, and it reduces the staffing we need to have for our agents. Mostly, we're using this information, again, to help manage the business itself, but we're also providing it to the agents so they can then pass it on to customers. Trends on what's happening with buyers, what's happening with sellers, what's happening with markdowns on homes, this is all information that we make sure it gets passed on to our agents so that they can advise customers well. Okay. And you launched a Redfin chat tool that went nationwide in April of this year. Can you provide some examples of just the potential user experience with this? Where is it helpful, where it isn't, but and how it's just being used? Sure. So still pretty early days here, but something we're pretty excited about, which is making use of some AI technologies to answer some of the basic questions that consumers have about the home. In some cases, this information will be available on redfin.com, in other cases, it'd be available more broadly across the internet, but it pulls it together in a really nice way for the consumer. So I, I was playing around with this technology, and you can take a look at how close are you to... how close is this home to certain schools that you might be interested in, even if it's not in that school district. Right. How far is the commute from this home to other locations? What's the relative prevalence of swimming pools in this kind of neighborhood? Mm-hmm. Again, this is information that is often part of an early set of questions a consumer might have to an agent, and we still want our agents to answer those questions, but if we can help the customer along in their journey early on- Right ... and become even more of a valuable source for that consumer, we do think this technology can help that way. Great. Anything else interesting on the product roadmap to highlight? I think you've highlighted the things that we've talked the most about, for sure. Yeah. No, that's great. All right, well, I wanna move over to the financials before we go to audience questions. Maybe just to start, if as investors are, you know, thinking about, you know, free cash flow generation of the business, how should we think about, you know, I think there's been a working capital tailwind in the past, but how should we think about just the conversion of EBITDA to free cash flow, and is it a percentage basis we should think about? Is it just like a dollar amount? What's the best way? Yeah, the best way to think about it is that there's not much difference between Adjusted EBITDA and free cash flow. There are two important components. Mm. One is that every quarter, we have a little bit of software capitalization, a few million dollars, and then we have some interest payments on a term loan that we have due in 2028. But those are the two big drivers. Working capital tends to be neutral over a longer period of time, so there's a little bit of seasonality here. You're right, it's been a little bit of a tailwind, but more generally, I think about it, it's about neutral. And so those are the two components to think about, and when you consider it in that way, it's more dollar-based rather than percentage based. Right. That, it should just be Adjusted EBITDA minus dollars as opposed to anything else. Right. Okay, and as you guys think about capital allocation, just what's the latest on the converts, how you're thinking, you know, doing 2025 and 2027? Yeah. So we've been repurchasing 2025 notes. We're down to about $145 million outstanding at the end of Q1. We have capital available against that, including an undrawn $125 million of this term loan due in 2028, and so we're continuing to work our way against that, and to the extent that, you know, we see good opportunities, we'll continue to repurchase those notes, and if we don't, we'll allow them to go to maturity. And then beyond 2025, we're building the business to generate significant profits, and that should put us in good shape against those 2027 notes. So we feel like we've made a lot of progress in terms of the economics of the business over the last year. Trailing twelve-month Adjusted EBITDA is around $40 million, and we expect to continue to make progress against that in the second half of the year. And so, that's the way we're approaching this, which is drive to profit, and then keep managing the capital structure from there. Great. Just wanna see if there's any questions, from the audience at this time. Yeah? Are the Redfin Next agents like W-2 employees, or are they independent contractors? Sure. So Redfin Next agents are also employees of the company. The way we're approaching this is that when we move a market over to Redfin Next, we're taking all the agents in that market and moving them into this new compensation approach. And, you know, we really like the way this has worked so far. What it delivers for agents we're hiring this way is that they wanna meet a lot of customers, and we have a lot of customers on redfin.com. The agents also value what we're able to deliver for them in terms of medical benefits. We take care of their licensing. Our team talks about it as business in a box, and that comes along with being a W-2 employee, and so that's the way we've approached it. Sorry. Is there anything you're doing to bring on teams, bigger teams of agents into Redfin Next? And like, how do you get over the line? They've built a brand. Maybe they don't wanna change all their marketing stuff, and, you know, they're the best ones to go after. Sure. So the question is about teams under a Redfin Next approach. We've done a little bit on that front, and it's something we're talking a lot with our local teams about at this point, our local agent teams, which is whether there's more that we can do on that front. So I think that's at least a possibility, but so far we haven't brought over wholesale teams as part of Redfin Next hiring. Anything else from the audience? Well, let's leave it there, Chris. Thank you so much for joining us and everyone in the audience today.