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ompass reported a strong third quarter, despite a sluggish real estate market. Revenue reached $1.5 billion, an 11.7% increase from the same period last year, driven by a 20% growth in agent count to 17,542. Market share also expanded from 4.3% to 4.8%. CEO Robert Reffkin expressed confidence that Compass is well-equipped to navigate market fluctuations.

    Reffkin attributed the company's success to its technology and training infrastructure, which allows it to adapt quickly to changing circumstances. He noted that top agents are now able to negotiate better commissions due to increased flexibility in the market. This shift has led to a decline in part-time or less experienced agents, making it harder for them to compete.

    Reffkin also criticized NAR's Clear Cooperation Policy, arguing that it stifles competition and innovation. Shares of Compass stock surged after hours trading, rising from $5.56 to nearly $6.20 per share.

    Key highlights include:

    * Revenue: $1.5 billion in Q3, up 11.7% year-over-year

    * Cash and cash equivalents: $211.2 million

    * Net income/loss: A net loss of $1.7 million in Q3, improved from a $39.4 million loss in the same period last year

    * Adjusted EBITDA: $52 million in Q3, up from $21.8 million in Q3 2023

    * Transactions: 55,872 in Q3, up from 48,134 in the same period last year

    Compass expects revenue of between $1.225 billion to $1.325 billion and adjusted EBITDA of between zero and $10 million for the fourth quarter. The company has also made notable moves, including appointing a new head of investor relations and launching two product updates: reverse prospecting and Make-Me-Sell tools.