Fri, May 9, 11:09 AM (14 days ago)
**Compass, Inc. (COMP) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $1,356.2 million, up 28.7% YoY. - **Net Loss:** $50.7 million, improved from $132.9 million YoY. - **Operating Expenses:** $1,409.9 million, up 19.0% YoY. - **Cash Flow from Operations:** $23.1 million, improved from $8.6 million YoY. **Profit Margins:** - **Operating Margin:** -3.9% (improved from -12.5% YoY). - **Net Margin:** -3.7% (improved from -12.6% YoY). **Cash Flow:** - **Operating Cash Flow:** $23.1 million (improved from $8.6 million YoY). - **Investing Cash Flow:** -$164.5 million (due to acquisitions). - **Financing Cash Flow:** $44.6 million (due to revolving credit facility drawdown). **Earnings Changes:** - **EPS:** -$0.09 (improved from -$0.27 YoY). **Quarterly Performance Discussion:** - **Revenue Growth:** Driven by an increase in the number of agents and recent acquisitions. - **Expense Management:** Improved cost control, particularly in general and administrative expenses. - **Cash Flow:** Positive operating cash flow, but significant investing cash outflow due to acquisitions. **Trends & Uncertainties:** - **Market Conditions:** High mortgage interest rates and low home inventory impact the residential real estate market. - **Regulatory Changes:** Antitrust settlements and industry practice changes may affect operations. - **Acquisitions:** Recent acquisitions of Christie's International Real Estate and other brokerages expand market presence. **Future Operations Impact:** - **Growth Strategy:** Continued focus on agent recruitment, platform innovation, and market expansion. - **Financial Strategy:** Maintain liquidity through cash on hand and revolving credit facility. - **Risk Management:** Monitor macroeconomic conditions and regulatory environment.