Austin Luxury Real Estate Specialists reported that Compass, its parent company, announced its financial results for the third quarter ending September 30, 2024.
According to an October 29 press release issued by Austin Luxury Group, Compass head Robert Reffkin said that his company was placed 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.” Reffkin added that this demonstrates their ability to generate significant free cash flow as the market progresses to mid-cycle levels.
Reffkin further said, “We continue to grow faster than the market – third quarter transactions increased 16.1% year-over-year versus a market that declined 1.9% as we grew our Number of Principal Agents 20% year-over-year and increased our quarterly market share to 4.80% in Q3 2024 from 4.31% in Q3 2023.” He also noted that “the third quarter was also our strongest quarter in the last four quarters for quarterly principal agent retention at 97.8%.”
Compass Chief Financial Officer Kalani Reelitz said in the release that the company ended the quarter with a cash balance of $211.2 million, generating positive operating cash flow of $37.4 million and free cash flow of $32.8 million.
