Boston Real Estate for Sale

Compass strategy to survive 2023

What to watch: Like other brokerages, Compass only has so many levers to pull to reach breakeven.

  • On the revenue side, the company is considering franchising as a less-expensive growth strategy, and will be trying to accelerate its mortgage joint venture.

  • If the market remains soft and revenue drops, the only option is to cut even more costs out of the business.

The bottom line: Compass is not alone in needing to cut costs during a significant market downturn – its future depends on it.

  • The company dipped into its “emergency reserve” last quarter – $150 million from its revolving credit facility – for the home stretch to profitability.

  • It appears that Compass has made the deep cuts necessary to achieve breakeven this year, as long as nothing else unexpectedly goes wrong.


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