Business
Compass, Inc. Reports First Quarter 2026 Results
Compass, Inc. ("Compass" or "the Company") (NYSE: COMP), a global real estate services company with a presence in every major U.S. city and approximately 120 countries and territories, announced its financial results for the first quarter ended March 31, 2026.
About this update from Compass, Inc.
Actioned Over $250 Million in Net Cost Synergies in Q1 Increases 2026 Actioned Cost Synergy Target from $250 Million to $300 Million Increases 2026 Realized Cost Synergy Target from $100 Million to $200 Million Q1 GAAP Net Income of $22 Million; Adjusted EBITDA of $61 Million Q1 Pro forma GTV +7.3% YoY for Brokerage & +4.6% YoY for Franchise NEW YORK , May 5, 2026 /PRNewswire/ -- Compass, Inc. ("Compass" or "the Company") (NYSE: COMP), a global real estate services company with a presence in every major U.S. city and approximately 120 countries and territories, announced its financial results for the first quarter ended March 31, 2026. "We achieved strong financial and operational results in our first quarter as a newly combined company. Revenue came in above the mid-point of our guide and Adjusted EBITDA 1 came in above the high-end of our guidance range driven by continued OPEX 2 discipline and healthy revenue growth" said Robert Reffkin, Founder and Chief Executive Officer of Compass. Reffkin added, "in Q1, we continued to outperform the industry, with pro forma 3 Brokerage transactions up 2.6% year-over-year compared to market transactions up 0.2% year-over-year, reflecting 240 basis points of outperformance, while pro forma 3 Brokerage GTV was up 7.3% year-over-year, which compared favorably to market volumes that were up 1.5% year-over-year." Reffkin continued, "During the quarter, the Compass team was manically focused on executing against our integration and cost synergy plan. This focus led to over $250 million in net cost synergies being actioned by April 1st, only 82 days after close, and allowing us to now raise our 2026 realized cost synergy target from $100 million to $200 million. Of the $200 million, we expect to realize approximately $130 million through the P&L and the remaining $70 million as a Capex synergy. We are also increasing our Year 1 target for actioned cost synergies from $250 million to $300 million, and raising our total actioned cost synergy target from $400 million to $500 million over the next three years. Approximately $420 million of the $500 million is expected to be realized through the P&L, while the remaining $80 million is expected to be realized as a Capex synergy. By fully realizing these cost synergies, we believe Compass will be able to achieve durable profitability and lower our financial leverage in a flat housing market, with significant upside in a housing market recovery." Scott Wahlers, Chief Financial Officer of Compass, said, "I'm very pleased with our Q1 2026 results, which reflect our first quarter as a combined company following the close of the Anywhere transaction on January 9, 2026. We delivered $2.70 billion in Revenue, Adjusted EBITDA¹ of $61 million and ended the quarter with $484 million in cash. Looking ahead, we remain acutely focused on OPEX control, executing against our cost synergy targets, and generating cash flow to de-lever our balance sheet." Q1 2026 Highlights: Q1 2026 Operational Highlights: Brokerage: Quarter-over-Quarter Total Separations and Separations by GCI Band: Total Agent Retention and Retention by GCI Band: Franchise: Integrated Services: Platform: The Compass end-to-end proprietary technology platform is the only fully-connected platform in the industry built for real estate professionals. From first contact to close, it brings together everything agents need to grow their business, work more efficiently, and deliver a client experience that sets them apart. The technology will be branded as the Home Platform and we expect it will be made available to Anywhere's Brokerage agents in Q3 2026, with plans to roll out the platform to Anywhere's franchise network in Q1 2027. Q2 2026 Outlook: Full Year 2026 Outlook: 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 Q1 2026 Earnings Presentation, which can be found in the Investor Relations section of the Compass website at https://investors.compass.com . --------------------------------------------------------------------------------------------------------------------------- Conference Call Information Management will conduct a conference call to discuss the first quarter results as well as outlook at 5:00pm ET on Tuesday, May 5, 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. Q1 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 second quarter of 2026 and full year 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 U.S. real estate industry, and risks generally incident to the ownership of residential real estate; the effect of monetary policies of the federal government and its agencies; high mortgage rates; low home inventory levels; our ability to successfully integrate Anywhere's business and realize cost synergies and other anticipated benefits of the Anywhere transaction; the rapid advancement and integration of AI technologies in real estate, which could result in potential disintermediation of real estate professionals, increased competitive pressure and a variety of operational, ethical and regulatory challenges, and our ability to adapt to any changes driven by AI technologies in a timely and effective manner; the significant debt (and increased interest expense) we incurred in connection with the Anywhere transaction, including its impact on our business, cash flow and operations; an event of default under our material debt agreements would adversely affect our operations and our ability to satisfy obligations under our indebtedness; our ability to raise capital to grow our business or refinance or restructure our existing debt on terms acceptable to us, or at all; our ability to recruit and retain real estate professionals at the same rate as in the past; review of the Anywhere transaction by regulatory authorities and private parties and any challenges and resulting actions that could adversely affect our business; ongoing industry antitrust class action litigation (including the antitrust lawsuits filed against us and Anywhere) or any related regulatory activities; decreases in our gross commission income or the percentage of commissions that we or our franchisees collect; risks related to the significant increase in our franchise business following the Anywhere transaction; our ability to carefully manage our expense structure; adverse economic, real estate or business conditions in geographic areas where our business is concentrated and/or impacting high-end markets; our ability to continuously innovate, improve and expand our technology offerings to create value for our real estate professionals; our ability to maintain our company culture; our ability to expand our operations and to offer additional integrated services; our ability to realize the expected benefits from our joint ventures, including mortgage and title underwriting; our ability to compete successfully; our ability to attract and retain real estate professionals at our owned-brokerage and expand our franchisees; fluctuations in our quarterly results and other operating metrics; the loss of one or more of our key personnel and our ability to attract and retain other highly qualified personnel; actions by real estate professionals, employees or franchisees that could adversely affect our reputation and subject us to liability; our ability to pursue acquisitions that are successful and integrated into our existing operations; our ability to maintain or establish relationships with MLSs and third-party listing providers; the impact of cybersecurity incidents and the potential loss of critical and confidential information; the reliability of our fraud detection processes; depository banks not honoring our escrow and trust deposits; impairment of our goodwill and other long-lived assets; liabilities arising out of Anywhere's frozen pension plan; exposure to risks inherent to international markets; our ability to develop and maintain an effective system of internal control over financial reporting; our ability to use net operating losses and other tax attributes may be limited; our reliance on assumptions, estimates and business data to calculate our key performance indicators; changes in, and our reliance on, accounting standards, assumptions, estimates and business data; our ability to continue to securitize certain assets of Cartus; the dependability of our platform, technology offerings and software; our ability to obtain or maintain adequate insurance coverage; disruption or delay in service from third-party service providers; our ability to generate high-quality leads for real estate professionals and franchisees; a loss of our largest real estate benefit program client or continued reduction in spending on relocation services; investor expectations related to corporate responsibility, environmental, social and governance factors; natural disasters and catastrophic events; the effect of claims, lawsuits, government investigations, and other proceedings; changes in federal or state laws regarding the classification of our agents as independent contractors; compliance with privacy laws and regulations; compliance with applicable laws and regulations and changes to applicable laws and regulations; our ability to protect our intellectual property rights, and our reliance on the intellectual property rights of third parties; our use of open source software; the impact of having a multi-class structure of common stock; volatility in our trading price; the content of securities analysts reports and/or change in our debt rating by a rating agency; our charter provisions may make us more difficult to acquire, may limit stockholder attempts to remove or replace management and/or obtain a favorable judicial forum for disputes with us or our directors, officers or employees; our plan to continue to retain earnings rather than pay dividends for the foreseeable future; the impact of the accounting method for our 0.25% Convertible Senior Notes due 2031 (the "Convertible Notes") on our reported financial results; potential for common stock dilution or stock price depression related to the Convertible Notes; counterparty risk with respect to the capped call transactions we entered into in connection with the Convertible Notes; and other risks set forth in our annual report on Form 10-K and our quarterly reports on Form 10-Q. Significant variation from the assumptions underlying our forward-looking statements could cause our actual results to vary, and the impact could be significant. Accordingly, actual results could differ materially from those predicted or implied or such uncertainties could cause adverse effects on our results. Reported results should not be considered as an indication of future performance. 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 U.S. city and approximately 120 countries and territories. Compass, Inc. serves millions of buyers and sellers through a portfolio of some of the most recognized and iconic brands: @properties®, Better Homes and Gardens® Real Estate, CENTURY 21®, Christie's International Real Estate®, Coldwell Banker®, Compass®, Corcoran®, ERA®, and Sotheby's International Realty®. Every day, the Company empowers a global network of more than 300,000 real estate professionals in its owned-brokerage and franchise business to grow and deliver exceptional service to consumers. 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 [email protected] Media Contact Devin Daly Huerta [email protected] View original content to download multimedia: https://www.prnewswire.com/news-releases/compass-inc-reports-first-quarter-2026-results-302763188.html