Compass logo against Manhattan skyline
Compass, Inc. (NYSE: COMP), the largest independent U.S. real estate brokerage, has raised its financial outlook for the fourth quarter and full year of 2024. The company now anticipates fourth-quarter revenue between $1.36 billion and $1.39 billion, with adjusted EBITDA ranging from $15 million to $18 million, surpassing previous estimates. For the full year, Compass projects revenue between $5.61 billion and $5.64 billion, and adjusted EBITDA of $124 million to $127 million. Investors snapped up the stock in active trading in light of the company’s strengthened financial position and growth strategy
CEO Robert Reffkin attributed the improvement to effective cost management and a significant increase in staffing. In the fourth quarter, Compass organically recruited over 650 principal agents, marking a 50% increase from the same period last year.
Following this announcement, Compass’s stock surged nearly 20% to trade at $6.66 a share. Over the past year, Compass shares have nearly doubled in value.
Founded in 2012 as Urban Compass and headquartered in New York City, the brokerage had priced its initial public offering in 2021 at $18 per share and has since experienced notable volatility. Early optimism gave way to concerns about profitability, the impact of rising interest rates on the housing market, and competition in the real estate sector, but management appears to be taking steps to improve its growth story.
