C
ompass navigated a challenging real estate market with a net loss of $1.7 million in the third quarter, a significant improvement from last year's $39.4 million loss. Despite this, revenue surged 12% to $1.5 billion, driven by a 16% increase in transactions. The company also reported $32.8 million in free cash flow, its fifth consecutive quarter of positive cash flow.

    CEO Robert Reffkin emphasized the company's resilience in the face of a declining national real estate market and existing home sales at three-decade lows. He reiterated Compass' goal to be a leading listing authority and expressed optimism about its future prospects. The company now expects to generate over $100 million in adjusted EBITDA for 2024, up from an initial projection.

    Compass has been expanding its agent base, adding 2,927 principal agents through acquisitions and organic growth. However, commission expenses increased slightly to 82.2% due to recent M&A activity in more costly markets. The company's operating expenses excluding commissions and stock-based compensation improved year-over-year, allowing it to invest in its title and escrow business.

    Reffkin also reiterated his opposition to the National Association of Realtors' Clear Cooperation Policy and expressed confidence that a repeal could have a positive impact on the company's growth prospects. Compass aims to achieve 30% market share in its top 30 markets by 2026, driven by initiatives such as its reverse prospecting tool.