Compass (COMP) Q4 2024 earnings summary

Executive summary

• Achieved strong Q4 and full-year 2024 results, with revenue up 25.9% year-over-year to $1.38 billion in Q4 and full-year revenue reaching $5.63 billion, driven by significant market share gains and outperforming the broader real estate market.

• Adjusted EBITDA turned positive: $16.7 million in Q4 (up $40.4 million YoY) and $126 million for FY 2024 (up $165 million YoY).

• Free cash flow improved to $26.7 million in Q4 and $105.8 million for FY 2024, marking the first positive full-year free cash flow in company history.

• Principal agent count grew by 21% year-over-year in Q4, with agent retention at 96.9%.

• Structural industry changes post-NAR settlement are expected to accelerate market share gains for large brokerages and experienced agents.

Financial highlights

• Q4 2024 gross transaction value reached $54.0 billion, up 29% year-over-year; FY 2024 gross transaction value was $216.8 billion, up 16% year-over-year.

• Q4 Adjusted EBITDA was $16.7 million (or $20.9 million excluding $4.2 million in M&A costs); full-year Adjusted EBITDA hit a record $126 million.

• Q4 free cash flow was $26.7 million; full-year free cash flow was $105.8 million, positive every quarter in 2024.

• Q4 net loss narrowed to $40.5 million from $83.7 million a year ago; FY 2024 net loss was $154.4 million, improved from $321.3 million in FY 2023.

• Cash and cash equivalents increased to $223.8 million at year-end 2024 from $166.9 million at year-end 2023.

Outlook and guidance

• Q1 2025 revenue guidance: $1.35–$1.475 billion, including Christie's International Real Estate.

• Q1 2025 Adjusted EBITDA guidance: $11–$25 million.

• 2025 OpEx targeted at $1.005–$1.03 billion, with 3–4% organic growth plus $105 million from Christie's acquisition.

• Expect to remain free cash flow positive for full year 2025.