Shares in real estate broker Compass ended the week 47% higher after it reported that it had gained market share in the first fiscal quarter of the year. This unexpected news comes as raised interest rates and a lack of homes for sale beat down buyer sentiment.
Compass reported that its free cash flow improved to negative $59 million in the first quarter, thereby backtracking from a negative $131.8 million a year earlier. The company added that it expected to become cash flow positive in the second quarter.
“When the market improves in the future, we will be well-positioned for generating significant long-term profits,” CEO Robert Refkin stated on the company earnings call. “As the No. 1 real estate brokerage by sales volume for the past two years in the United States, we have built a highly desirable company for attracting and retaining the best agents in the industry.”
The company’s market share was expanded by 17 basis points to 4.5%.