Compass didn’t remain entirely positive in the third quarter, but it continued to grow and generate cash in the face of a contracting domestic property market and announced plans to become a listing authority.

The company reported a net loss of $1.7 million in the third quarter, an improvement of $37.7 million from last year, according to its results released Wednesday. The results were down from the second quarter, when the company recorded its first positive net profit in its history as a public company.

Revenue grew nearly 12 percent to $1.5 billion in the third quarter and deals grew more than 16 percent. The company also reported free cash flow of $32.8 million, its fifth consecutive quarter with positive cash flow.

Compass reiterated its expectations for positive free cash flow for the full year and said it now expects to generate more than $100 million in adjusted EBITDA for 2024 after posting an EBITDA adjusted by $52 million in the third quarter. The company increased its free cash flow to more than $211 million, up from nearly $186 million.

CEO Robert Reffkin touted the results during Wednesday’s earnings conference call, noting “the challenging market environment with existing home sales at their lowest level in three decades.”

Existing home sales for the first nine months of the year were below 2023 levels, with home sales on track to hit their lowest total since 1995.

Reffkin also doubled down on his opposition to the National Association of Realtors’ clear cooperative policy and took aim at anonymous “real estate powerhouse websites” that he says are based on selling buyer leads.

“The future we’re creating is one where buyers know to search Compass.com because we’re known as the place where homeowners list their homes early,” Reffkin said.

He added that he sees the repeal of the PCC as a very positive, if likely, argument for the company, and believes that a rollback could occur either naturally as MLSs remove the policy or under pressure legality of a dispute between private parties.

The company is targeting a 30% market share in its top 30 markets by the end of 2026. This goal will be aided by the launch of its reverse prospecting tool, which allows seller agents to see which Compass buyer agents have participated to an announcement.

Compass increased its transactions by more than 4%, even excluding the recent acquisitions of Tennessee-based Parks Real Estate and Louisiana-based Latter & Blum.

The number of master agents also increased by 2,927 agents, thanks to acquisitions, but the company added 785 more master agents organically, its best quarter in three years, according to Reelitz.

Fee expenses increased to 82.2 percent from 82 percent last year, but Reelitz attributed its recent growth and M&A activity to more expensive markets.

Reffkin added that the company has yet to see “any significant changes” from the Aug. 17 rule changes stemming from the NAR antitrust settlement.

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The company also improved its operating expenses excluding commissions and stock-based compensation to $215 million, up from nearly $219 million year over year, which Reelitz attributed to the improvement of agent marketing effectiveness.

Reelitz said the company used some of the relatively strong operating expense performance to invest in its securities and escrow businesses, which increased its attach rate by 7 percent over the past three quarters. .