Compass Real Estate makes a profit

Boston Condos for Sale and Apartments for Rent

Compass Real Estate makes a profit

Compass took a second quarter victory lap on Wednesday, reporting a profit for the first time as a publicly traded company and flipping the last period’s massive loss on its head.

The company generated a net income of $20.7 million in the second quarter, according to its earnings released Wednesday, a reversal from $133 million it reported in losses last quarter and its first profit since its 2021 public debut. The profit comes despite the residential giant having to pay out about $28.8 million of its $57.5 million deal to settle claims by home sellers in a series of class action lawsuits over broker commission guidelines. 

But the company’s cash on hand appears to have been aided by a jump in their commissions payable, which spiked $47 million from last quarter to almost $107 million. The Real Deal reported last year the liability can still factor into positive cash flow because Compass is holding it — but ultimately owes the same money to its agents. 

Peace be with you.

Ford Realty Beacon Hill – Condo for Sale Office

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