“Given the challenges the real-estate market has faced so far this year and the likelihood that this difficult environment will continue for the foreseeable future, we are announcing a significant cost-reduction program,” Chief Executive Robert Reffkin said in a statement. “We have line of sight into each area that will drive these savings to our expenses, which we believe will enable us to be free-cash-flow positive in 2023. We expect to complete all targeted cost reductions by the end of this calendar year.”

Compass stock plunged 11% in after-hours trading immediately following the release of the results. Shares have already declined 48.5% so far this year, as the S&P 500 index
SPX,
+0.40%
has dropped 10.2%.

For the second quarter, Compass reported a net loss of $101.2 million, or 24 cents a share, up from a loss of 2 cents a share a year ago. Revenue increased to $2.02 billion from $1.95 billion a year ago, but missed expectations. Analysts on average were projecting a loss of 17 cents a share on sales of $2.11 billion, according to FactSet.

For the third quarter, Compass executives’ forecast was way off from Wall Street’s expectations. Executives expect an adjusted-Ebitda loss of $65 million to $80 million on revenue of $1.4 billion to $1.5 billion, while analysts on average were modeling positive adjusted Ebitda of $45 million and revenue of $2.11 billion, according to FactSet.

Compass executives planned a conference call at 4:30 p.m. Eastern to further discuss the results.