The company currently has 17,752 major agents. Founder and CEO Robert Lefkin said in a new revenue report that he believes his company will move forward in 2025.
Inman on Tour: Increase the volume of real estate success in Nashville! Connect with industry pioneers and top speakers, gain insights, cutting-edge strategies and valuable connectivity. Increase your business and achieve your most audacious goals – all with Music City Magic. Sign up now.
Compass once again kept the housing market slower and revealed on Tuesday that it had grown all key metrics in the final three months of 2024.
Figures from the newly published fourth quarter revenue report show broker revenues reached $1.4 billion from October to December, an increase of 25.9% year-on-year. The company also reduced its net loss to $40 million in the quarter, improving beyond the $83.7 million lost during the same period in 2023.
Additionally, the company reported that it had achieved $26.7 million in free cash flow in the fourth quarter. This is important thanks to CEO Robert Levkin’s promise to make compass free cash flow positive. In fact, the report shows that for the first time, Compass had positive free cash flow for the first time in one year of 2024.
Join us in the February Inman Intel Index survey
But perhaps even greater interest for real estate professionals was the company’s agent count and market share count. Regarding the former, the report states that Compass had 17,752 main agents at the end of 2024. This is 20.9% year-on-year. Regarding the latter, the revenue report states that the market share of Compass is 5.06%, an increase of 0.65% from the last three months of 2023.
The broker also saw quarterly transactions increase 24.1% year-on-year to 50,411.
Robert Lefkin
In the report, Reffkin pointed out that his company outperforms the broader market.
“As the market recovers, a combination of cost discipline and structural advantages, including end-to-end proprietary technology platforms, national scale, top agent networks, and inventory depth, will capture key upsides. He believes that the compass will be positioned. In his report, Lefkin added that he believes “2025 will be a year when the gap between the compass and the industry will grow.”
In a call with investors Tuesday afternoon, Lefkin said the Compass’s recent performance was “clear evidence that our playbook is working.”
Compass shares were trading for just under $8, heading towards earnings on Tuesday. It lasted for the day and week, with a significant improvement that had stocks hovering in the $3 range over a year ago.
Stocks jumped after trading on Tuesday after the release of its fourth quarter earnings report.
Credit: Google
The compass’s market capitalization was around $4.6 billion as of Tuesday afternoon.
Tuesday’s report is the latest in a string of aggressive revenue from the brokerage. Compass last reported revenue in October. For example, in the third quarter of last year, it was revealed that revenues rose 11.7% year-on-year. Transactions also increased by 16.1% compared to the same period in 2023. Other reports from last year also showed continued growth in the face of a struggling market.
Compass’s strong revenues come as well as the company has taken over a unique and unique vocal position in the real estate industry. Since last summer, Reffkin has been one of the most vocal opponents of clear cooperation. This is the National Association of Real Estate Rules that require agents to enter a list into NAR-related MLS within a day of marketing beginning. Reffkin argues that the rules violate the Code of Ethics and limit consumer choices and more.
At the same time, Compass is open to efforts to create a private network of company agents and their clients available, at least initially.
As of February 16, Tuesday’s report said, “Homeowners are marketing more than 7,500 listings as Compass Private Exclusive or Compass is coming soon. Compass.com By searching for “
Approximately 55% of compasses are currently holding startups by the company either as “exclusive” or “coming soon,” the report says. The report cites internal companies’ surveys, which states that such listings are “related to an average close price 2.9% higher than compass properties for sale that are not on the market in 2024. There is.”
These findings are important as they come just days after Zillow released a report claiming that “sellers who traded MLS collectively left over $1 billion on the table.”
Zillow’s report was not particularly visible to Compass listings, and while Compass’s own findings only applied to properties that started outside the market, it did not necessarily mean that they would trade outside the market. In other words, despite the different findings, the two reports do not necessarily contradict each other. Still, they are likely to both promote a fierce and ongoing discussion in real estate now about the value of the out-of-market list.
Update: This story was updated after it was published with additional information from Compass reports, calls with analysts, and backgrounds from previous reports.
Please email Jim Dalrymple II
