COMP - Compass: Back To Growth Mode

2024-05-10 23:37:27 ET

Summary

• Compass is showing signs of growth and gaining market share in the real estate industry. It recently acquired a leading brokerage in the Southeast, adding 1,000 agents to its pool.
• After declining in 2023, Compass returned to 10% y/y revenue and transactions growth in Q1.
• It's expecting to continue growing in Q2 while also flipping to positive adjusted EBITDA.
• Compass has a strong balance sheet and is well-positioned to consolidate brokerages and expand its market share.

It's often said that a crisis is the best time to build a powerful, lasting business. And few could argue that the real estate industry, plagued by the twin problems of high interest rates and insufficient supply, have been in a true crisis over the past few years as transactions slowed. Furthermore, the continued uncertainty over the outcomes of the NAR lawsuit ruling which threatens to upend buyers' agent fees continues to hang a long shadow over the industry....

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