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NEW YORK - Compass , Inc. (NYSE:COMP), the largest residential real estate brokerage in the United States by sales volume, saw its shares jump 9.9% after reporting better-than-expected fourth-quarter results and providing strong revenue guidance for the first quarter of 2025.
The tech-enabled real estate services company reported a Q4 adjusted loss of -$0.08 per share, beating analyst estimates by $0.01. Revenue for the quarter came in at $1.38 billion, surpassing the consensus estimate of $1.29 billion and representing a 25.9% increase YoY.
Compass’s Q4 revenue growth significantly outpaced the overall U.S. residential real estate market, which saw transaction volume increase by only 6.8% YoY. The company’s organic revenue growth, excluding acquisitions, was 20.9% YoY.
"Despite a year in which resale transactions experienced a 29-year low, Compass grew both Revenue and Adjusted EBITDA significantly," said Robert Reffkin, Founder and CEO of Compass. He added, "As the market recovers, we believe the combination of our cost discipline and structural advantages... positions Compass to capture significant upside."
The company’s market share expanded to 5.06% in Q4, an increase of 65 basis points YoY. Compass also reported positive operating cash flow of $30.5 million and free cash flow of $26.7 million for the quarter.
Looking ahead, Compass provided upbeat guidance for Q1 2025, projecting revenue between $1.35 billion and $1.475 billion, above the consensus estimate of $1.335 billion. The company also expects Q1 Adjusted EBITDA to range from $11 million to $25 million.
Compass ended the quarter with a cash balance of $223.8 million and no outstanding draws on its revolving credit facility. The company’s strong financial position and positive market outlook have contributed to investor optimism, as reflected in the stock’s significant post-earnings rally.
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