Compass reports Q2 EPS 4c, consensus 2c

Reports Q2 revenue $1.7B, consensus $1.64B. “In light of a quarter where the real estate market saw historically low volume, I am particularly pleased that we achieved all-time high net income, all-time high Adjusted EBITDA, and generated positive free cash flow for the quarter, making the Company free cash flow positive in 4 of the last 5 quarters,” said CEO Robert Reffkin. “Q2 revenue grew 14% year-over-year and we significantly grew the Number of Principal Agents with the addition of over 2,000 principal agents from the acquisitions of Latter & Blum and Parks Real Estate and over 500 principal agents organically. Capitalizing on the structural advantages created by our end-to-end proprietary technology platform, national scale, top agent network and exclusive inventory, we have positioned Compass for what we believe will be significant upside when the market begins to recover.” CFO Kalani Reelitz said, “Our cash balance increased to $185.8M at the end of Q2 and includes reductions for the $28.75M antitrust litigation settlement payment and cash used in our strategic acquisitions of Latter & Blum and Parks Real Estate. In Q2 2024, we generated positive operating cash flow of $45.0 million and free cash flow3 of $40.4M. We reduced OPEX4 in Q2 to $217.4M, an improvement of $20.9M from Q2 2023 OPEX of $238.3M.”