Compass reports Q3 EPS (0c), consensus (3c)

Reports Q3 revenue $1.5B, consensus $1.5B. “In what remains a challenging environment for the real estate market, we grew Adjusted EBITDA significantly year-over-year and delivered a substantial improvement in free cash flow. Our results this quarter put Compass (COMP) in a position to deliver meaningful Adjusted EBITDA for 2024 and to be free cash flow positive for the full year despite a multi-decade low for existing home sales, demonstrating our ability to generate significant free cash flow as the market makes its way to mid-cycle levels,” said CEO Robert Reffkin. “When the market recovers, we believe the combination of our cost discipline and structural advantages, which include our end-to-end proprietary technology platform, national scale, network of top agents and depth of inventory, positions Compass to capture significant upside at attractive unit economics.” CFO Kalani Reelitz said, “We continue to fortify our balance sheet and ended the quarter with a cash balance of $211.2M. In Q3 2024, we generated positive operating cash flow of $37.4M and free cash flow of $32.8M. We reduced OPEX in Q3 to $215.0M, an improvement of $3.8M from Q3 2023 OPEX of $218.8M…These results exhibit our commitment to control costs as we continue to outpace market growth”.