Compass Keeps Cash Flow Positive Streak, Eyes Listings Inventory

According to The Real Deal, In the third quarter, Compass reported a significant revenue increase of nearly 12%, reaching $1.5 billion, along with a remarkable transaction growth of over 16%. The company generated $32.8 million in free cash flow, marking its third consecutive quarter and fifth positive cash flow result in the last six quarters. 

The firm affirmed its expectation to remain free cash flow positive throughout the year, projecting to achieve over $100 million in adjusted EBITDA for 2024 after recording $52 million in the latest quarter. Additionally, Compass increased its cash reserves to more than $211 million, up from approximately $186 million.

Compass aims to capture 30% market share in its top 30 markets by the end of 2026, a goal supported by the introduction of its reverse prospecting tool, which enables seller agents to identify which Compass buyer agents have engaged with specific listings. Furthermore, the company achieved over 4% growth in transactions, even when excluding its recent acquisitions of Parks Real Estate in Tennessee and Latter & Blum in Louisiana. The number of principal agents rose by 2,927, fueled by these acquisitions, while 785 principal agents were added organically, marking Compass’s strongest quarter in three years, as noted by Reelitz.

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Source: therealdeal.com