Wait, is Compass on the right track?
The New York City-headquartered residential brokerage lost money again in the second quarter. But its net loss of $7.1 million more than favorably compared to not just a deficit of $84.2 million in the second quarter of 2020 – when the real estate market faced its pandemic low point – but $212 million of negative income in this year’s first quarter.
Meanwhile, the eight-year-old brokerage’s gross revenue soared to $2.0 billion. Granted, 81% of that revenue goes back to Compass agents, mostly as their cut of sales commissions. But the $361 million in revenue – after the deduction of commissions and other related expenses – compares to $151 million revenue for the first quarter.
“We are in the strongest position we have ever been as a company,” declared Compass CEO Robert Reffkin during an earnings call Monday.