Ignore, if you can, all the spin — the talk about “path to profitability,” “principal agents,” “end-to-end tech platform” and “disruption.” If you look at Compass as a business, here’s what you’ve got, according to its own numbers: a company that lost $500M in 2021 and did even worse in 2022, losing $600 million.
In this episode of Resi Rundown, The Real Deal‘s Hiten Samtani gives the key takeaways from Compass’ quarterly earnings and earnings call, in which the company predicted it would be cash-flow positive by the second quarter of 2023, despite a slow market, rising mortgage rates, and multiple consecutive quarters of heavy losses.
“The firm isn’t losing money in a vacuum,” Samtani notes, pointing out that Anywhere Real Estate also had a nightmare fourth quarter. Many of the private firms are thought to have been in the red as well.
Watch the episode above and stay tuned for more analysis of the most important news and trends in residential brokerage.
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