Photo: compass.com | Founder & CEO Robert Reffkin
As noted in The Real Deal, Compass achieved a nearly 12% revenue increase in the third quarter, reaching $1.5 billion, with transaction growth exceeding 16%. The company reported $32.8 million in free cash flow, marking its third consecutive positive quarter and its fifth positive cash flow result in the past six quarters.
Compass expects to sustain positive cash flow throughout the year, projecting over $100 million in adjusted EBITDA for 2024, following a $52 million result in the latest quarter. Its cash reserves also rose to more than $211 million, up from about $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.
The company also achieved over 4% transaction growth excluding recent acquisitions of Parks Real Estate in Tennessee and Latter & Blum in Louisiana. These acquisitions contributed to a net increase of 2,927 principal agents, while an additional 785 agents joined organically, marking Compass’s strongest quarter in three years, as noted by Reelitz.
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Source: therealdeal.com
