Compass(US:COMP)2025-05-08 20:08Financial Performance - Revenue in Q1 2025 increased by 28.7% year-over-year to $1.4 billion, with organic revenue growth of 14.6%[5] - GAAP net loss for Q1 2025 was $50.7 million, an improvement of $82.2 million from a net loss of $132.9 million in Q1 2024[5] - Net loss attributable to Compass, Inc. for Q1 2025 was $50.7 million, compared to a net loss of $132.9 million in Q1 2024, indicating improved financial performance[29] - Net loss for Q1 2025 was $50.8 million, a significant improvement from a net loss of $133.0 million in Q1 2024, representing a reduction of approximately 62%[31] - Adjusted EBITDA for Q1 2025 was $15.6 million, a significant improvement from a loss of $20.1 million in Q1 2024[5] - Adjusted EBITDA for Q1 2025 was $15.6 million, compared to a negative $20.1 million in Q1 2024, indicating a turnaround in operational performance[33] Cash Flow and Expenses - Operating cash flow grew 169% year-over-year to a record $23.1 million, marking the fifth consecutive quarter of positive free cash flow at $19.5 million[1][5] - Free cash flow for Q1 2025 was $19.5 million, up from $5.9 million in Q1 2024, reflecting improved cash generation from operations[35] - Cash and cash equivalents at the end of Q1 2025 were $127.0 million, down from $165.9 million at the end of Q1 2024, showing a decrease of approximately 23%[31] - Operating expenses totaled $1,409.9 million in Q1 2025, up from $1,186.2 million in Q1 2024, reflecting a significant increase in commissions and related expenses[29] - Non-GAAP operations and support expenses increased to $92.0 million in Q1 2025 from $75.3 million in Q1 2024, highlighting a focus on operational efficiency[37] - The company incurred restructuring costs of $9.2 million in Q1 2025, compared to $1.5 million in Q1 2024, indicating ongoing adjustments to improve business structure[33] Growth and Market Position - Total transactions closed by Compass agents in Q1 2025 reached 49,121, an increase of 27.8% compared to Q1 2024, while organic transactions grew by 7.3%[9] - Quarterly market share rose to 6.0%, an increase of 125 basis points year-over-year, with organic market share growing by 82 basis points[9] - The number of principal agents increased by 41.6% year-over-year to 20,656, with a strong retention rate of 96.6%[9] - Gross Transaction Value (GTV) was $52.4 billion in Q1 2025, up 31% from $40.1 billion in Q1 2024[9] - The Christie's International Real Estate acquisition contributed 9.2% to revenue growth in the quarter[5] - Payments for acquisitions in Q1 2025 totaled $160.9 million, a substantial increase from $0.4 million in Q1 2024, reflecting aggressive growth through acquisitions[31] Future Projections - Q2 2025 revenue guidance is projected between $2.0 billion and $2.15 billion, with Adjusted EBITDA expected to be between $115 million and $135 million[12] - Non-GAAP OPEX is projected to be between $1.017 billion and $1.042 billion for 2025, including a 3-4% increase in OPEX from 2024[19] - Free cash flow is expected to be positive for the full year 2025[19] Assets and Goodwill - Total assets increased to $1,542.6 million as of March 31, 2025, up from $1,178.0 million at the end of 2024[27] - Goodwill rose to $472.3 million as of March 31, 2025, compared to $233.6 million at the end of 2024, reflecting recent acquisitions[27] Operational Efficiency - Compass aims to continuously innovate and expand its platform to enhance value for agents and improve operational efficiency[20] - GAAP sales and marketing expenses for Q1 2025 were $91.7 million, slightly down from $93.4 million in Q1 2024, reflecting cost management efforts[37] - Total capital expenditures for Q1 2025 were $3.6 million, compared to $2.7 million in Q1 2024, indicating increased investment in growth initiatives[35]