Financial Performance Summary

Recent financial filings from @properties offer a detailed overview of the firm’s profitability trajectory, reporting a commendable net income of $8.2 million in 2023. For the first nine months of 2024, the company significantly improved its performance with a net income totaling $20.7 million. This marks a solid achievement in a competitive real estate market where many firms, notably Compass, reported substantial net losses of $321 million in 2023 and $114 million in 2024.

Revenue Composition

@properties’ revenue streams heavily relied on owned-brokerage commissions, which constituted approximately 88% of total revenue during 2023 and 2024’s initial three quarters. Additionally, 20% of the revenue was attributed to Christie’s International Real Estate Sereno, following its acquisition in 2022. However, this asset was sold back to its founders before @properties joined forces with Compass.

Agent Commission Structure

The commission structure at @properties has proven favorable for its agents, with commission splits reaching 83.8% in 2024 and 84.2% in 2023. This approach underscores the firm’s commitment to retaining top talent while maintaining profitable operations.

Cash Reserves and Debt Management

As of early 2025, @properties reported a cash balance of $4.4 million, alongside long-term debt approximating $125 million, which included a balloon payment on the remaining balance. The company adeptly resolved its debt obligations prior to finalizing its acquisition deal with Compass.

Insights into Compass’ Financial Position

In light of the acquisition, pro forma statements revealed that the combined companies held a cash balance of $110 million as of September 2024, a reduction from Compass’s prior cash reserves of $211 million. This shift illustrates the financial implications of the acquisition on Compass’s overall liquidity.

Additionally, Compass has access to a $350 million revolving credit facility, from which it utilized $50 million to facilitate the acquisition of @properties.

Future Speculations and Rumors

Recently, Compass has been at the center of acquisition speculations involving HomeServices of America. While there have been numerous discussions, Compass has not formally addressed these rumors, and HomeServices has publicly denied the claims.