Compass, Inc. Reports Record Second Quarter 2026 Results
Rhea-AI Summary
Compass (NYSE: COMP) reported Q2 2026 Revenue of $4.31 billion, up 109% year-over-year and 14.3% versus pro forma 2025, with GAAP net income of $92 million and record Adjusted EBITDA of $363 million. Operating cash flow was $191 million and free cash flow $180 million, lifting cash to $694 million with no revolver balance and long-term debt of $3.14 billion.
The company has already actioned its full $300 million Year 1 net cost synergy target from the Anywhere integration five months early, raising the Year 1 actioned target to $330 million and 2026 realized net cost synergies to $220 million. Brokerage and franchise GTV and transactions grew faster than the U.S. housing market, agent retention improved to 95.5%, and Compass reiterated plans to redeem its $500 million 9.75% notes when first callable in Q2 2027. Guidance calls for Q3 Revenue of $3.85–$4.05 billion, Q3 Adjusted EBITDA of $275–$305 million, and full‑year 2026 non‑GAAP OPEX of $2.75–$2.80 billion, with free cash flow positive for the year.
Positive
- Revenue $4.31B, up 109% YoY and 14.3% vs pro forma in Q2 2026
- GAAP net income $92M in Q2 2026 vs $39M in Q2 2025
- Adjusted EBITDA $363M in Q2 2026, a record second quarter level
- Operating cash flow $191M and free cash flow $180M; cash balance up $210M QoQ to $694M
- Cost synergy targets raised to $330M Year 1 actioned and $220M 2026 realized from Anywhere integration
- Brokerage GTV +15.9% and transactions +7.4% vs pro forma, outperforming U.S. market growth of 6% GTV and 3.5% transactions
Negative
- Long-term debt $3.14B outstanding at end of Q2 2026, including $500M 9.75% notes
- Non-GAAP OPEX guidance increased to $2.75–$2.80B from prior $2.70–$2.75B for 2026
- Net royalty per side $505, down 14.6% YoY from $591 due to mix shift
- Total agents 83,184 at Q2 2026 vs 84,187 at Q1 2026, reflecting net decline despite strong retention
News Explained
Home access is expanding beyond Compass brands, while Q2 ended with fewer agents despite 95.5% retention.
Compass has begun expanding its “Home” platform beyond its own brokerage brands: it was released to more than 4,000 agents in
The company describes Home as a platform connecting real-estate professionals’ work from first contact through closing; the disclosed change is therefore an operating-access expansion, with the larger rollout still stated as expected or planned.
The
Thus, reported retention coexisted with a lower ending agent count, and the stated rollout milestones are whether nearly 50,000 additional agents receive access by the end of September and whether franchise deployment begins in Q1 2027.
Market reaction after 2Q26 earnings report: COMP +12.00%
Following this news, COMP has gained 12.00%, reflecting a significant positive market reaction. Our momentum scanner has triggered 17 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $13.44.
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Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | Q1 earnings | Positive | +27.3% | Revenue growth, positive net income, and raised cost-synergy targets accompanied strong results. |
| Nov 04 | Q3 earnings | Positive | +7.5% | Record revenue, Adjusted EBITDA, free cash flow, and market share supported quarterly performance. |
| Jul 30 | Q2 earnings | Positive | +9.8% | Record revenue, net income, market share, transactions, and quarterly agent additions were reported. |
| May 08 | Q1 earnings | Positive | -19.1% | Revenue and free cash flow improved despite a reported net loss during the quarter. |
| Feb 18 | Q4 earnings | Positive | +28.3% | Revenue, transactions, market share, operating cash flow, and agent count increased year-over-year. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were aligned in four of five events, with one significant divergence following positive Q1 2025 results.
Key Terms
gaap financial
adjusted ebitda financial
pro forma financial
free cash flow financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Actioned Entire
Q2 Revenue +
Operating Cash Flow
"Compass delivered very strong Q2 results, with Revenue and Adjusted EBITDA surpassing the high-end of our guidance range, driven by broad business strength and the successful realization of our cost synergies" said Robert Reffkin, Founder and Chief Executive Officer. Reffkin added, "in Q2, our outperformance versus the industry accelerated, with Brokerage Gross Transaction Value ("GTV") up
Reffkin continued, "our integration with Anywhere is progressing well and we have now actioned our entire Year 1 net cost synergy target of
Scott Wahlers, Chief Financial Officer, said, "The strength of our second quarter results reflects strong execution and focus from the entire team. We delivered
Wahlers continued, "We generated
Q2 2026 Highlights:
- Revenue in Q2 2026 increased by
109% year-over-year to$4.31 billion $2.06 billion 14.3% year-over-year compared to pro forma1 Revenue of$3.77 billion - GAAP Net Income in Q2 2026 was
$92 million $39 million - Adjusted EBITDA2 (a non-GAAP measure) was
$363 million $153 million $38 million $34 million - Operating Cash Flow / Free Cash Flow2 (a non-GAAP measure): During Q2 2026, operating cash flow was
$191 million $180 million - Liquidity & Capital Structure: At the end of Q2 2026, our cash balance was
$694 million $3.14 billion
Q2 2026 Operational Highlights:
Brokerage:
- Gross Transaction Value ("GTV")4: Brokerage GTV was
$155.2 billion 98.2% year-over-year compared to GTV of$78.3 billion 15.9% year-over-year compared to pro forma1 GTV of$133.9 billion U.S . residential real estate market increased by6% 3 over the same period. - Transactions4: Brokerage agents closed 153,009 total transactions in Q2 2026, an increase of
109.5% year-over-year compared to transactions of 73,024 in Q2 2025. Transactions increased by7.4% year-over-year compared to pro forma1 transactions of 142,504 in Q2 2025. Transactions for the entireU.S . residential real estate market increased by3.5% 1 over the same period. - Total Agents: At the end of Q2 2026, total Brokerage agents were 83,184 compared to 84,187 at the end of Q1 2026, and the Company added 2,816 agents on a gross basis during Q2 2026. Agent retention rate in Q2 2026 was
95.5% , an improvement compared to94.1% in Q1 2026. The quarter-over-quarter decline in agent count was driven primarily by a strategy at a specific brand acquired through the Anywhere transaction to separate low and non-productive agents. Separations refer to agents that were in the prior quarter's ending agent count but not included in the current quarter's ending agent count. Total agent count separations and additions reflect a decision more often than not made by individual agent team leaders, rather than decisions made by the Company. Below is a detailed breakdown of the number of total agent separations and agent retention rate by gross commission income (GCI) bands.
Quarter-over-Quarter Total Separations and Separations by GCI Band:
- Total Agent Separations in Q2: 3,819
- Percentage of Q2 Total Agent Separations with
$0 49% - Percentage of Q2 Total Agent Separations with
$20 K72%
Total Agent Retention and Retention by GCI Band:
- Total Agent retention in Q2:
95.5% - Total Agent retention excluding
$0 97.7% - Total Agent retention excluding agents with
$20 K98.7%
- Total Agent retention in Q2:
Franchise:
- Gross Transaction Value ("GTV")4: Franchise GTV was
$120.0 billion $8.8 billion 264% year-over-year. Franchise GTV increased by11.7% year-over-year compared to pro forma1 GTV of$107.4 billion - Transactions4: The Franchise network closed 203,207 total transactions in Q2 2026 compared to transactions of 8,850 in Q2 2025, an increase of 2,
196% year-over-year. Franchise transactions increased by3.8% year-over-year compared to pro forma1 transactions of 195,821 in Q2 2025. - Net Royalty Rate Per Side4: Net royalty rate per side was
$505 $591 14.6% year-over-year driven primarily by the franchise transactions from the newly acquired brands that have a lower average sales price compared to the Christie's International Real Estate network. Net royalty per side increased by5.4% year-over-year compared to the pro forma1 net royalty rate of$479
Integrated Services:
- Title and Escrow ("T&E"): Total Title and Escrow transactions were 42,608 in Q2 2026 compared to T&E transactions of 7,881 in Q2 2025, an increase of
441% year-over-year primarily due to the addition of T&E transactions from Anywhere. T&E transactions increased by7.6% year-over-year compared to pro forma1 transactions of 39,591 in Q2 2025. Average revenue per transaction was$3,654 1.5% year-over-year compared to pro forma1 average revenue per transaction of$3,600 - T&E Purchase Transactions4 were 38,406 in Q2 2026 compared to T&E Purchase Transactions of 7,411 in Q2 2025, an increase of
418% year-over-year. T&E purchase transactions increased by6% year-over-year compared to pro forma1 purchase transactions of 36,240 in Q2 2025. - T&E Refinance Transactions4 were 4,202 in Q2 2026 compared to T&E Refinance Transactions of 470 in Q2 2025, an increase of
794% year-over-year. T&E refinance transactions increased by25.4% year-over-year compared to pro forma1 refinance transactions of 3,351 in Q2 2025.
- T&E Purchase Transactions4 were 38,406 in Q2 2026 compared to T&E Purchase Transactions of 7,411 in Q2 2025, an increase of
Compass & Redfin Partnership: Since launching Coming Soons on Redfin in late Q1 2026, our agents have received more than 60,000 leads from Rocket-Redfin, and Compass has delivered more than 20,000 Coming Soon listings to Redfin. In
Platform: Our end-to-end proprietary technology platform, branded "Home", is the only fully-connected platform in the industry built for real estate professionals. From first contact to close, it brings together everything real estate professionals need to grow their business, work more efficiently, and deliver a client experience that sets them apart. In July, the platform was released to over 4,000 agents at non-Compass brokerage brands and by the end of September, nearly 50,000 new agents are expected to have access to the platform, with plans to roll out the platform to our franchise network starting in Q1 2027.
- Product highlights include:
- AI Assistant: Our integrated AI Assistant was broadly demoed in early July, and enables more than 90 platform tools to be accessed through natural language prompts. Early user behavior shows the AI Assistant is driving deeper engagement with the platform, with a significant increase in the number of tools called per agent, and approximately 15,000 agents generating over 97,000 conversations.
- Compass One: The industry's premier all-in-one client dashboard designed to connect buyers and sellers with their real estate professional and provide 24/7 transparency is experiencing increased engagement with
35% of all closed home sale transactions in Q2 2026 going through the Compass One experience, up from25.8% in Q2 2025 on a pro forma basis and up from31.5% in Q1 2026. - Structural Advantage Tools: A set of proprietary platform features that help our real estate professionals surface unique inventory and differentiate themselves in the market continues to see strong engagement.
- Reverse Prospecting: Allows our listing professionals to surface agents who have buyers that have shown interest in their property through saved searches, collections, direct views, and other engagement statistics. Since launch, more than 24,700 agents have used the tool, including 11,400 in Q2 2026, a
7% increase compared to Q1 2026. - Network Tool: Lets our listing real estate professionals surface other real estate professionals in an area to find the right buyers for their property. Year-to-date (as of the end of Q2) over 12,000 real estate professionals have used the tool. Over time, we believe this feature will help our agents match buyers and sellers more effectively.
- Make-Me-Sell: Lets homeowners share an aspirational price with their agent that would compel them to move. At the end of Q2 2026, there were more than 26,000 make-me-sell entries in the platform, up from approximately 24,700 at the end of Q1 2026. This passive inventory is exclusively available to agents on the platform.
- Buyer Demand Tool: Provides real estate professionals with real-time insights into how many buyers are searching for properties at specific price points before going into a listing appointment. Since launch, over 11,000 real estate professionals have engaged with the tool. We believe this feature will help our real estate professionals win more listings and efficiently target buyers for their listings.
- Reverse Prospecting: Allows our listing professionals to surface agents who have buyers that have shown interest in their property through saved searches, collections, direct views, and other engagement statistics. Since launch, more than 24,700 agents have used the tool, including 11,400 in Q2 2026, a
Q3 2026 Outlook:
- Revenue of
$3.85 billion $4.05 billion - Adjusted EBITDA of
$275 million $305 million
Full Year 2026 Outlook:
- Non-GAAP OPEX of
$2.75 billion $2.80 billion $2.70 billion $2.75 billion $35 million $150 million - Free cash flow positive for the full year 2026.
We have not reconciled our outlook for Adjusted EBITDA to GAAP net income (loss) because certain expenses excluded from GAAP net income (loss) when calculating Adjusted EBITDA cannot be reasonably calculated or predicted at this time. Additionally, we have not reconciled our guidance for non-GAAP OPEX to GAAP OPEX because certain expenses excluded from GAAP OPEX cannot be reasonably calculated or predicted at this time. Accordingly, reconciliations are not available without unreasonable effort.
Additional information can be found in the Company's Q2 2026 Earnings Presentation, which can be found in the Investor Relations section of the Compass website at https://investors.compass.com.
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Conference Call Information
Management will conduct a conference call to discuss the second quarter results as well as outlook at 5:00pm ET on Tuesday, August 4, 2026. The conference call will be accessible via the Internet on the Compass Investor Relations website https://investors.compass.com. You can also access the audio webcast via the following link: Compass, Inc. Q2 26 Earnings Conference Call.
An audio recording of the conference call will be available for replay shortly after the call's completion. To access the replay, visit the Events and Presentations section on the Compass Investor Relations website at https://investors.compass.com.
Disclosure Channels
Compass uses its Investor Relations website, https://investors.compass.com, as a means of disclosing information which may be of interest or material to its investors and for complying with disclosure obligations under Regulation FD. We intend to announce material information to the public through filings with the Securities and Exchange Commission, or the SEC, the investor relations page on our website (www.compass.com), press releases, public conference calls, public webcasts, our X (formerly Twitter) feed (@Compass), our Facebook page, our LinkedIn page, our Instagram account, our YouTube channel, and Robert Reffkin's X (formerly Twitter) feed (@RobReffkin) and Instagram account (@robreffkin). Accordingly, investors should monitor each of these disclosure channels.
Safe Harbor Statement
This press release includes forward-looking statements, which are statements other than statements of historical facts, and statements in the future tense. These statements include, but are not limited to, statements regarding our future performance, including expected financial results for the third quarter of 2026 and full year 2026 and our expectations for realizing cost synergies and operational achievements. Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date of this press release, and are subject to risks and uncertainties, including but not limited to: general economic conditions, economic and industry downturns, the effects of geopolitical conflicts, the health of the
More information about factors that could adversely affect our business, financial condition and results of operations, or that could cause actual results to differ from those expressed or implied in our forward-looking statements is included under the captions "Risk Factors," "Legal Proceedings" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q, copies of which are available on the Investor Relations page of our website at https://investors.compass.com and on the SEC website at www.sec.gov. All information herein speaks as of the date hereof and all forward-looking statements contained herein are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events. Undue reliance should not be placed on the forward-looking statements in this press release.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared in accordance with GAAP, we present Adjusted EBITDA, non-GAAP OPEX and free cash flow, which are non-GAAP financial measures ("Non-GAAP Financial Measures"), in this press release. We use Non-GAAP Financial Measures in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We believe Non-GAAP Financial Measures are also helpful to investors, analysts and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. Non-GAAP Financial Measures have limitations as analytical tools. Therefore, you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, you should consider Non-GAAP Financial Measures alongside other financial performance measures, including net loss attributable to Compass, Inc., GAAP OPEX, operating cash flows and our other GAAP measures. In evaluating Non-GAAP Financial Measures, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments reflected in this press release. Our presentation of Non-GAAP Financial Measures should not be construed to imply that our future results will be unaffected by the types of items excluded from the calculations of Non-GAAP Financial Measures. Non-GAAP Financial Measures are not presented in accordance with GAAP and the use of these terms vary from others in our industry. Reconciliations of these non-GAAP measures have been provided in the financial statement tables included in this press release, and investors are encouraged to review these reconciliations.
About Compass, Inc.
Compass, Inc. (the "Company") (NYSE: COMP) is a global real estate services company with a presence in every major
The Company empowers real estate professionals to streamline operations and seamlessly guide clients through every phase of residential and commercial transactions, leveraging powerful tools, including its modern technology platform. In addition to brokerage services, Compass, Inc. offers integrated services, such as mortgage, title, insurance, escrow, and relocation.
Investor Contact
Soham Bhonsle
soham.bhonsle@compass.com
Media Contact
Devin Daly Huerta
devin.dalyhuerta@compass.com
1 | Pro forma key business metrics and revenue are presented as if the Anywhere transaction had occurred on January 1, 2025. For comparability, where indicated, Anywhere's results have been included for the full period from April 1, 2025 through June 30, 2025. |
2 | A reconciliation of GAAP to Non-GAAP measures can be found within the financial statement tables included in this press release. |
3 | Source: National Association of Realtors®. |
4 | Definitions of Key Business Metrics can be found within the financial statement tables included in this press release. |
Compass, Inc. | |||
Condensed Consolidated Balance Sheets | |||
(In millions, unaudited) | |||
June 30, 2026 | December 31, 2025 | ||
Assets | |||
Current assets | |||
Cash and cash equivalents | $ 694 | $ 199 | |
Accounts receivable, net of allowance | 239 | 57 | |
Relocation receivables | 214 | — | |
Other current assets | 238 | 61 | |
Total current assets | 1,385 | 317 | |
Property and equipment, net | 222 | 114 | |
Operating lease right-of-use assets | 690 | 381 | |
Intangible assets, net | 2,972 | 193 | |
Goodwill | 2,558 | 479 | |
Other non-current assets | 505 | 56 | |
Total assets | $ 8,332 | $ 1,540 | |
Liabilities and Stockholders' Equity | |||
Current liabilities | |||
Accounts payable | $ 101 | $ 12 | |
Commissions payable | 246 | 95 | |
Accrued expenses and other current liabilities | 583 | 138 | |
Current lease liabilities | 182 | 99 | |
Securitization obligations | 191 | 23 | |
Total current liabilities | 1,303 | 367 | |
Long-term debt | 3,140 | — | |
Non-current lease liabilities | 596 | 354 | |
Deferred income taxes | 160 | — | |
Other non-current liabilities | 146 | 32 | |
Total liabilities | 5,345 | 753 | |
Stockholders' equity | |||
Common stock | — | — | |
Additional paid-in capital | 5,597 | 3,513 | |
Accumulated deficit | (2,617) | (2,731) | |
Accumulated other comprehensive loss | (1) | — | |
Total Compass, Inc. stockholders' equity | 2,979 | 782 | |
Non-controlling interest | 8 | 5 | |
Total stockholders' equity | 2,987 | 787 | |
Total liabilities and stockholders' equity | $ 8,332 | $ 1,540 | |
Compass, Inc. | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(In millions, except share and per share data, unaudited) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Revenue | $ 4,306 | $ 2,060 | $ 7,010 | $ 3,416 | ||||
Operating expenses: | ||||||||
Commissions and other related expenses (1) | 3,254 | 1,686 | 5,262 | 2,791 | ||||
Sales and marketing (1) | 108 | 61 | 205 | 119 | ||||
Operations and support (1) | 429 | 145 | 827 | 277 | ||||
Technology and development (1) | 109 | 63 | 228 | 113 | ||||
General and administrative (1) | 93 | 34 | 174 | 61 | ||||
Anywhere merger transaction and integration expenses (1) (2) | 34 | — | 217 | — | ||||
Restructuring costs | 2 | 3 | 8 | 12 | ||||
Depreciation and amortization | 153 | 29 | 316 | 58 | ||||
Total operating expenses | 4,182 | 2,021 | 7,237 | 3,431 | ||||
Income (loss) from operations | 124 | 39 | (227) | (15) | ||||
Investment income | 4 | 1 | 8 | 2 | ||||
Interest expense | (41) | (3) | (78) | (5) | ||||
Income (loss) before income taxes and equity in income of unconsolidated entities | 87 | 37 | (297) | (18) | ||||
Income tax (expense) benefit | (5) | — | 396 | 3 | ||||
Equity in income of unconsolidated entities | 10 | 2 | 15 | 3 | ||||
Net income (loss) | 92 | 39 | 114 | (12) | ||||
Net income attributable to non-controlling interests | — | — | — | — | ||||
Net income (loss) attributable to Compass, Inc. | $ 92 | $ 39 | $ 114 | $ (12) | ||||
Net income (loss) per share attributable to Compass, Inc., basic | $ 0.12 | $ 0.07 | $ 0.15 | $ (0.02) | ||||
Net income (loss) per share attributable to Compass, Inc., diluted | $ 0.11 | $ 0.07 | $ 0.14 | $ (0.02) | ||||
Weighted-average shares used in computing net income (loss) per share attributable to Compass, Inc., basic | 758,064,181 | 560,307,749 | 746,273,149 | 555,255,128 | ||||
Weighted-average shares used in computing net income (loss) per share attributable to Compass, Inc., diluted | 842,377,292 | 591,370,687 | 832,950,962 | 555,255,128 | ||||
(1) | Total stock-based compensation expense included in the condensed consolidated statements of operations is as follows (in millions): | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Commissions and other related expenses | $ — | $ — | $ 1 | $ — | ||||
Sales and marketing | 4 | 9 | 9 | 16 | ||||
Operations and support | 8 | 10 | 18 | 15 | ||||
Technology and development | 13 | 25 | 32 | 38 | ||||
General and administrative | 13 | 11 | 25 | 17 | ||||
Anywhere merger transaction and integration expenses | 3 | — | 64 | — | ||||
Total stock-based compensation expense | $ 41 | $ 55 | $ 149 | $ 86 | ||||
(2) | Represents transaction expenses incurred in connection with the closing of the Anywhere Merger and related integration activities. During the three and six months ended June 30, 2026, these expenses consist of legal, investment banking and other transaction-related costs, severance and other personnel-related costs, all of which were expensed as incurred. | |||||||
Compass, Inc. | |||
Condensed Consolidated Statements of Cash Flows | |||
(In millions, unaudited) | |||
Six Months Ended June 30, | |||
2026 | 2025 | ||
Operating Activities | |||
Net income (loss) | $ 114 | $ (12) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 316 | 58 | |
Stock-based compensation | 149 | 86 | |
Deferred income taxes | (401) | (4) | |
Equity in income of unconsolidated entities | (15) | (3) | |
Bad debt expense | 10 | 1 | |
Change in acquisition-related contingent consideration | 2 | (2) | |
Amortization of debt issuance costs, premiums, and discounts | 1 | 1 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (69) | (34) | |
Relocation receivables | (58) | (14) | |
Other current and non-current assets | 3 | — | |
Operating lease right-of-use assets and operating lease liabilities | (8) | (6) | |
Accounts payable | 1 | 1 | |
Commissions payable | 115 | 65 | |
Accrued expenses and other liabilities | (126) | (41) | |
Net cash provided by operating activities | 34 | 96 | |
Investing Activities | |||
Investment in unconsolidated entities | — | (2) | |
Capital expenditures | (22) | (9) | |
Payments for acquisitions, net of cash acquired | (345) | (171) | |
Other investing activities | 1 | — | |
Net cash used in investing activities | (366) | (182) | |
Financing Activities | |||
Proceeds from stock option exercises and Employee Stock Purchase Plan issuances | 19 | 8 | |
Taxes paid related to net share settlement of equity awards | (79) | (29) | |
Net change in Securitization obligations | 25 | 8 | |
Proceeds from issuance of convertible notes, net of issuance costs | 977 | — | |
Purchase of capped call for convertible notes | (97) | — | |
Proceeds from drawdowns on Revolving Credit Facility | — | 70 | |
Repayments of drawdowns on Revolving Credit Facility | — | (20) | |
Payments for financing leases | (3) | — | |
Other | (14) | 2 | |
Net cash provided by financing activities | 828 | 39 | |
Net increase (decrease) in cash and cash equivalents | 496 | (47) | |
Effect of changes in exchange rates on cash and cash equivalents | (1) | — | |
Cash and cash equivalents at beginning of period | 199 | 224 | |
Cash and cash equivalents at end of period | $ 694 | $ 177 | |
Compass, Inc. | |||||||
Reconciliation of Net Income (Loss) Attributable to Compass, Inc. to Adjusted EBITDA | |||||||
(In millions, unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2026 | 2025 | 2026 | 2025 | ||||
Net income (loss) attributable to Compass, Inc. | $ 92 | $ 39 | $ 114 | $ (12) | |||
Adjusted to exclude the following: | |||||||
Depreciation and amortization | 153 | 29 | 316 | 58 | |||
Investment income | (4) | (1) | (8) | (2) | |||
Interest expense | 41 | 3 | 78 | 5 | |||
Stock-based compensation | 38 | 55 | 85 | 86 | |||
Income tax expense (benefit) | 5 | — | (396) | (3) | |||
Anywhere merger transaction and integration expenses (1) | 34 | — | 217 | — | |||
Restructuring costs | 2 | 3 | 8 | 12 | |||
Other acquisition-related expenses (2) | 2 | (3) | 3 | (3) | |||
Litigation charge (3) | — | — | 7 | — | |||
Adjusted EBITDA | $ 363 | $ 125 | $ 424 | $ 141 | |||
Net income (loss) attributable to Compass, Inc. margin | 2.1 % | 1.9 % | 1.6 % | (0.4 %) | |||
Adjusted EBITDA margin | 8.4 % | 6.1 % | 6.1 % | 4.1 % | |||
(1) | Represents transaction expenses incurred in connection with the closing of the Anywhere Merger and related integration activities. During the three and six months ended June 30, 2026, these expenses consist of legal, investment banking and other transaction-related costs, severance and other personnel-related costs, all of which were expensed as incurred. |
(2) | For the three months ended June 30, 2026, other acquisition-related expenses consisted of a |
(3) | Represents a charge of |
Compass, Inc. | ||||||||
Reconciliation of Operating Cash Flows to Free Cash Flow | ||||||||
(In millions, unaudited) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Net cash provided by operating activities | $ 191 | $ 73 | $ 34 | $ 96 | ||||
Less: | ||||||||
Capital expenditures | (11) | (5) | (22) | (9) | ||||
Free cash flow | $ 180 | $ 68 | $ 12 | $ 87 | ||||
Compass, Inc. | ||||||||
Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses | ||||||||
(In millions, unaudited) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
GAAP Sales and marketing | $ 108 | $ 61 | $ 205 | $ 119 | ||||
Adjusted to exclude the following: | ||||||||
Stock-based compensation | (4) | (9) | (9) | (16) | ||||
Non-GAAP Sales and marketing | $ 104 | $ 52 | $ 196 | $ 103 | ||||
GAAP Operations and support | $ 429 | $ 145 | $ 827 | $ 277 | ||||
Adjusted to exclude the following: | ||||||||
Stock-based compensation | (8) | (10) | (18) | (15) | ||||
Other acquisition-related expenses | (2) | 3 | (3) | 3 | ||||
Non-GAAP Operations and support | $ 419 | $ 138 | $ 806 | $ 265 | ||||
GAAP Technology and development | $ 109 | $ 63 | $ 228 | $ 113 | ||||
Adjusted to exclude the following: | ||||||||
Stock-based compensation | (13) | (25) | (32) | (38) | ||||
Non-GAAP Technology and development | $ 96 | $ 38 | $ 196 | $ 75 | ||||
GAAP General and administrative | $ 93 | $ 34 | $ 174 | $ 61 | ||||
Adjusted to exclude the following: | ||||||||
Stock-based compensation | (13) | (11) | (25) | (17) | ||||
Litigation charge | — | — | (7) | — | ||||
Non-GAAP General and administrative | $ 80 | $ 23 | $ 142 | $ 44 | ||||
Compass, Inc. | ||||||||||
Non-GAAP Operating Expenses Excluding Commissions and Other Related Expenses | ||||||||||
(In millions, unaudited) | ||||||||||
Three Months Ended | ||||||||||
June 30, | September 30, | December 31, | March 31, | June 30, | ||||||
Sales and marketing | $ 52 | $ 50 | $ 53 | $ 92 | $ 104 | |||||
Operations and support | 138 | 134 | 135 | 387 | 419 | |||||
Technology and development | 38 | 40 | 38 | 100 | 96 | |||||
General and administrative | 23 | 28 | 33 | 62 | 80 | |||||
Total non-GAAP operating expenses excluding commissions and other related expenses | $ 251 | $ 252 | $ 259 | $ 641 | $ 699 | |||||
Compass, Inc. | ||||||||
Segment Operating Performance - Q2 2026 | ||||||||
(In millions, unaudited) | ||||||||
Three Months Ended June 30, 2026 | ||||||||
Brokerage | Franchise | Integrated Services | Total | |||||
Segment revenue | $ 3,960 | $ 135 | $ 211 | $ 4,306 | ||||
Less: | ||||||||
Commissions and other related expenses | 3,254 | - | - | |||||
Sales and marketing | 88 | 10 | 6 | |||||
Operations and support | 229 | 32 | 155 | |||||
Technology and development | 7 | 5 | 2 | |||||
General and administrative | 6 | 1 | 5 | |||||
Equity in income of unconsolidated entities | (1) | - | (9) | |||||
Segment Adjusted EBITDA | $ 377 | $ 87 | $ 52 | $ 516 | ||||
Reconciliation of Segment Adjusted EBITDA to Net income attributable to Compass, Inc.: | ||||||||
Unallocated corporate expenses (1) | $ (153) | |||||||
Stock-based compensation | (38) | |||||||
Depreciation and amortization | (153) | |||||||
Restructuring costs | (2) | |||||||
Anywhere merger transaction and integration expenses | (34) | |||||||
Other acquisition-related expenses | (2) | |||||||
Investment income | 4 | |||||||
Interest expense | (41) | |||||||
Income tax expense | (5) | |||||||
Net income attributable to Compass, Inc. | $ 92 | |||||||
(1) | Unallocated corporate expenses represent costs managed at the corporate level that are not allocated to the reporting segments. For the three months ended June 30, 2026, these costs are reflected in the following line items within the condensed consolidated statements of operations: |
Compass, Inc. | |||||||
Segment Operating Performance - Q2 2025 | |||||||
(In millions, unaudited) | |||||||
Three Months Ended June 30, 2025 | |||||||
Brokerage | Franchise | Integrated Services | Total | ||||
Segment revenue | $ 2,013 | $ 8 | $ 39 | $ 2,060 | |||
Less: | |||||||
Commissions and other related expenses | 1,686 | - | - | ||||
Sales and marketing | 50 | 1 | 1 | ||||
Operations and support | 108 | 4 | 25 | ||||
Technology and development | 4 | - | - | ||||
General and administrative | 2 | - | 1 | ||||
Equity in income of unconsolidated entities | - | - | (2) | ||||
Segment Adjusted EBITDA | $ 163 | $ 3 | $ 14 | $ 180 | |||
Reconciliation of Segment Adjusted EBITDA to Net income attributable to Compass, Inc.: | |||||||
Unallocated corporate expenses (1) | $ (55) | ||||||
Stock-based compensation | (55) | ||||||
Depreciation and amortization | (29) | ||||||
Restructuring costs | (3) | ||||||
Other acquisition-related expenses | 3 | ||||||
Investment income | 1 | ||||||
Interest expense | (3) | ||||||
Net income attributable to Compass, Inc. | $ 39 | ||||||
(1) | Unallocated corporate expenses represent costs managed at the corporate level that are not allocated to the reporting segments. For the three months ended June 30, 2025, these costs are reflected in the following line items within the condensed consolidated statements of operations: |
Compass, Inc. | ||||||||
Segment Operating Performance - Q2 2026 YTD | ||||||||
(In millions, unaudited) | ||||||||
Six Months Ended June 30, 2026 | ||||||||
Brokerage | Franchise | Integrated Services | Total | |||||
Segment revenue | $ 6,427 | $ 225 | $ 358 | $ 7,010 | ||||
Less: | ||||||||
Commissions and other related expenses | 5,261 | - | - | |||||
Sales and marketing | 167 | 17 | 12 | |||||
Operations and support | 453 | 63 | 282 | |||||
Technology and development | 15 | 11 | 4 | |||||
General and administrative | 9 | 1 | 8 | |||||
Equity in income of unconsolidated entities | (2) | - | (13) | |||||
Segment Adjusted EBITDA | $ 524 | $ 133 | $ 65 | $ 722 | ||||
Reconciliation of Segment Adjusted EBITDA to Net income attributable to Compass, Inc.: | ||||||||
Unallocated corporate expenses (1) | $ (298) | |||||||
Stock-based compensation | (85) | |||||||
Depreciation and amortization | (316) | |||||||
Restructuring costs | (8) | |||||||
Anywhere merger transaction and integration costs | (217) | |||||||
Litigation charge | (7) | |||||||
Other acquisition-related expenses | (3) | |||||||
Investment income | 8 | |||||||
Interest expense | (78) | |||||||
Income tax benefit | 396 | |||||||
Net income attributable to Compass, Inc. | $ 114 | |||||||
(1) | Unallocated corporate expenses represent costs managed at the corporate level that are not allocated to the reporting segments. For the six months ended June 30, 2026, these costs are reflected in the following line items within the condensed consolidated statements of operations: |
Compass, Inc. | ||||||||
Segment Operating Performance - Q2 2025 YTD | ||||||||
(In millions, unaudited) | ||||||||
Six Months Ended June 30, 2025 | ||||||||
Brokerage | Franchise | Integrated Services | Total | |||||
Segment revenue | $ 3,341 | $ 14 | $ 61 | $ 3,416 | ||||
Less: | ||||||||
Commissions and other related expenses | 2,791 | - | - | |||||
Sales and marketing | 99 | 2 | 2 | |||||
Operations and support | 214 | 6 | 44 | |||||
Technology and development | 7 | 1 | 1 | |||||
General and administrative | 4 | - | 1 | |||||
Equity in income of unconsolidated entities | - | - | (3) | |||||
Segment Adjusted EBITDA | $ 226 | $ 5 | $ 16 | $ 247 | ||||
Reconciliation of Segment Adjusted EBITDA to Net loss attributable to Compass, Inc.: | ||||||||
Unallocated corporate expenses (1) | $ (106) | |||||||
Stock-based compensation | (86) | |||||||
Depreciation and amortization | (58) | |||||||
Restructuring costs | (12) | |||||||
Other acquisition-related expenses | 3 | |||||||
Investment income | 2 | |||||||
Interest expense | (5) | |||||||
Income tax benefit | 3 | |||||||
Net loss attributable to Compass, Inc. | $ (12) | |||||||
(1) | Unallocated corporate expenses represent costs managed at the corporate level that are not allocated to the reporting segments. For the six months ended June 30, 2025, these costs are reflected in the following line items within the condensed consolidated statements of operations: |
Compass, Inc. | ||||||||||||||||
Key Business Metrics | ||||||||||||||||
(Unaudited) | ||||||||||||||||
The following table presents the Company's key business metrics on both an actual and pro forma basis. Pro forma metrics reflect the combined operations of Compass and Anywhere as if the acquisition had occurred on January 1, 2025, and therefore include Anywhere's results across all periods presented. Because the acquisition actually closed on January 9, 2026, the pro forma metrics for the six months ended June 30, 2026 incorporate Anywhere's results for the first eight days of January 2026 prior to closing. | ||||||||||||||||
Actuals | Pro Forma | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2026 | 2025 | 2026 | 2025 | 2026 | 2025 | 2026 | 2025 | |||||||||
Brokerage: | ||||||||||||||||
Gross Transaction Value (in billions) (1) | $ 155.2 | $ 78.3 | $ 252.6 | $ 130.7 | $ 155.2 | $ 133.9 | $ 253.9 | $ 225.9 | ||||||||
Total Transactions (2) | 153,009 | 73,024 | 252,513 | 122,146 | 153,009 | 142,504 | 254,156 | 241,086 | ||||||||
Franchise: | ||||||||||||||||
Gross Transaction Value (in billions) (1) | $ 120.0 | $ 8.8 | $ 196.9 | $ 15.1 | $ 120.0 | $ 107.4 | $ 200.6 | $ 184.6 | ||||||||
Total Transactions (2) | 203,207 | 8,850 | 340,554 | 14,967 | 203,207 | 195,821 | 346,613 | 339,026 | ||||||||
Net Royalty Rate Per Side (3) | $ 505 | $ 591 | $ 479 | $ 619 | $ 505 | $ 479 | $ 477 | $ 472 | ||||||||
Integrated Services: | ||||||||||||||||
Purchase title and escrow transactions (4) | 38,406 | 7,411 | 63,409 | 11,298 | 38,406 | 36,240 | 64,577 | 61,476 | ||||||||
Refinancing title and escrow transactions (5) | 4,202 | 470 | 9,520 | 733 | 4,202 | 3,351 | 9,729 | 6,118 | ||||||||
Average title and escrow revenue per transaction (6) | $ 3,654 | $ 4,869 | $ 3,599 | $ 5,038 | $ 3,654 | $ 3,600 | $ 3,628 | $ 3,551 | ||||||||
(1) | Gross Transaction Value represents the sum of all closing sale prices for homes transacted by real estate professionals within our Brokerage or Franchise segments, as applicable, during the periods. The value of a single transaction is counted twice when our real estate professionals represented both the buyer and the seller. This metric excludes any transactions from our international franchisees. |
(2) | Total Transactions represents the sum of all transactions closed by our Brokerage or Franchise segments, as applicable, during the periods in which our real estate professionals represented the buyer or seller in the purchase or sale of a home. A single transaction is counted twice when our real estate professionals represented both the buyer and the seller. This metric excludes any transactions from our international franchisees. |
(3) | Net Royalty Per Side represents the average net royalty revenue earned by our Franchise segment per franchisee transaction side closed during the periods. Net royalty revenue reflects gross royalty revenue earned under our franchise agreements, net of volume incentives and other contractual reductions paid or credited to franchisees. This metric excludes any transactions from our international franchisees. |
(4) | Purchase Title and Escrow Transactions represents the number of title insurance policies and escrow settlements completed by our Integrated Services segment during the periods in connection with home purchase transactions. |
(5) | Refinancing Title and Escrow Transactions represents the number of title insurance policies and escrow settlements completed by our Integrated Services segment during the periods in connection with mortgage refinancing transactions. |
(6) | Average Title and Escrow Revenue Per Transaction represents the average revenue earned by our Integrated Services segment per title and escrow transaction completed during the periods, calculated as title and escrow revenue divided by the sum of purchase and refinancing title and escrow transactions. |
Compass, Inc. | ||||||||
Supplemental Pro Forma Revenue and Commissions and Other Related Expenses | ||||||||
(In millions, unaudited) | ||||||||
Three Months Ended | ||||||||
March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | March 31, 2026 | ||||
Pro forma Revenue: | ||||||||
Brokerage: | ||||||||
Compass | $ 1,328 | $ 2,014 | $ 1,802 | $ 1,657 | $ 1,465 | |||
Anywhere | 1,012 | 1,431 | 1,369 | 1,217 | 1,042 | |||
Total Brokerage revenue | $ 2,340 | $ 3,445 | $ 3,171 | $ 2,874 | $ 2,507 | |||
Franchise: | ||||||||
Compass | $ 6 | $ 8 | $ 8 | $ 8 | $ 8 | |||
Anywhere | 91 | 118 | 123 | 113 | 87 | |||
Total Franchise revenue | $ 97 | $ 126 | $ 131 | $ 121 | $ 95 | |||
Integrated Services: | ||||||||
Compass | $ 22 | $ 38 | $ 36 | $ 35 | $ 31 | |||
Anywhere | 118 | 158 | 155 | 139 | 124 | |||
Total Integrated Services revenue | $ 140 | $ 196 | $ 191 | $ 174 | $ 155 | |||
Pro forma revenue | $ 2,577 | $ 3,767 | $ 3,493 | $ 3,169 | $ 2,757 | |||
Pro forma Commissions and other related expenses: | ||||||||
Compass | $ 1,105 | $ 1,685 | $ 1,502 | $ 1,384 | $ 1,219 | |||
Anywhere | 790 | 1,131 | 1,084 | 956 | 819 | |||
Pro forma commissions and other | $ 1,895 | $ 2,816 | $ 2,586 | $ 2,340 | $ 2,038 | |||
View original content:https://www.prnewswire.com/news-releases/compass-inc-reports-record-second-quarter-2026-results-302842907.html
SOURCE Compass, Inc.