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Compass had a positive cash flow in the last Q 2023

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Compass had a positive cash flow in the last Q 2023

Compass Stays Cash Flow Positive In Third Quarter. Compass’ third quarter earnings said the residential brokerage was cash-flow positive for the second period.

My thoughts:

It looks looks like I under estimated the strength Compass is pulling in the residential market. Good job Compass. I wish you more luck, but your my competition.

Compass stock shot up from $1.90 to $2.14 on the good news.

Click here for Compass Real Estate Q Report

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Updated: Boston condo for sale website 2023


Compass reported a net inflow of $51 million in the second quarter, making it the first time since the public launch in 2021 that the residential brokerage has achieved positive cash flow.

Despite taking a hit of $48 million, which is inclusive of allowances for stock awards and other expenses, the enterprise witnessed a striking increase in profitability compared to the $101 million deficit in the corresponding quarter of the previous year.

Achieving financial stability was a primary goal the organization set for itself in the prior year, and as reported in its financial statement, Compass demonstrated that it attained this objective while also expanding its customer base and personnel. Its revised EBITDA (earnings before interest, taxes, depreciation and amortization) increased from $4 million to $30 million from the previous year.

Kalani Reelitz, the CFO of Compass, declared that they had almost made up their shortage in free cash flow from the first quarter of 2023 and believed that they would be able to accomplish their ambition of earning positive free cash flow in 2023.

The operating expenditures during the second three-month period were $1.5 billion, a drop of roughly $600 million from twelve months prior. Compass strives to reach the goal of $900 million in operating expenses by the fourth quarter of this year, shared Reelitz.

The organization’s commissions due amplified to $98 million during the last three months, a hike of $41 million from the past quarter but consistent with the $96 million figure twelve months ago.

The company’s profit dropped 26% compared to the previous year, totaling $1.5 billion, with transactions diminishing by one fifth and fewer deals in expensive real estate markets such as California.

Compass had amassed $335 million in cash and cash equivalents at the conclusion of the second quarter, yet returned the $150 million drawn from its revolving credit line in July.

The data exemplifies the labor placed in a twelve-month cost diminishing initiative declared during the financial report one year ago, when Compass attested to cut $320 million from its expenses. As part of this promise, it stopped giving new realtors monetary and stock bonuses, which were among its most powerful recruitment approaches.

RealTrends reported that Compass was the highest-grossing housing brokerage across the nation in 2022. As losses increased drastically – climbing from half a billion dollars in 2021 to over six hundred million dollars last year – its adversaries and critics expressed pleasure in referencing its distress and doubting its endurance.

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