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 up 15% to $5.63 billion, alongside significant Adjusted EBITDA and free cash flow growth.

• 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 full year of positive free cash flow.

• Outperformed the broader market in transaction growth and agent retention, with transactions up 24% YoY in Q4 and principal agent count up 21%.

• Successfully executed on cost discipline, agent growth, and strategic M&A, including the Christie's International Real Estate acquisition.

Financial highlights

• Q4 2024 revenue was $1.38 billion, up 25.9% year-over-year, exceeding guidance.

• Q4 Adjusted EBITDA reached $16.7 million; full-year Adjusted EBITDA was $126 million.

• 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.

• Q4 2024 gross transaction value was $54.0 billion, up 29% YoY; FY 2024 gross transaction value was $216.8 billion, up 16% YoY.

• Ended 2024 with $223.8 million in cash and no outstanding draws on the revolving credit facility.

Outlook and guidance

• Q1 2025 revenue expected between $1.35 billion and $1.475 billion, including Christie's acquisition.

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

• 2025 non-GAAP operating expenses expected at $1.005–$1.03 billion, including $105 million from Christie's acquisition.

• Free cash flow positive expected for full year 2025.