Compass, Inc. announced that it has dismissed the lawsuit it filed against Zillow, Inc. The dismissal follows Zillow’s reversal of its “Zillow Ban” policy, which had previously prohibited brokerages from publicly marketing listings on Compass’s website or on other portals before listing them on Zillow.
The lawsuit, filed in June 2025, challenged Zillow’s policy that barred listings that were publicly marketed but not widely available through the Multiple Listing Service. Compass’s three‑phase marketing strategy—“Compass Private Exclusive,” “Compass Coming Soon,” and the final MLS listing—was at the heart of the dispute. A federal judge denied Compass’s request for a preliminary injunction on February 6 2026, leaving the company to pursue the lawsuit.
Zillow announced on March 17 2026 that it would lift the ban and introduce a new pre‑market listing feature called “Zillow Preview.” The change allows brokerages to list properties on Zillow before they appear on the MLS, addressing the concern that the ban limited seller choice and agent flexibility.
With the policy reversed, Compass’s lawsuit is no longer necessary, and the company has withdrawn the suit without prejudice. The dismissal removes a significant regulatory and operational risk, allowing Compass to continue its preferred listing strategy and to maintain confidence among agents and sellers. It also signals a more level playing field for brokerages that rely on pre‑market exposure.
Compass’s Q4 2025 results provide context for the strategic benefit of the lawsuit’s resolution. Revenue rose 23.1% to $1.70 billion, and the company generated an adjusted EBITDA of $58.3 million, up from $16.7 million in the same quarter a year earlier. The firm reported a GAAP net loss of $42.6 million, a slight increase from $40.5 million in Q4 2024, largely attributable to merger expenses. Principal agent headcount reached 21,190, up 19.4% year‑over‑year, and total transactions grew 19.7%.
CEO Robert Reffkin said the company had “ended 2025 on a high note as we delivered the strongest Q4 results in our history, including revenue, adjusted EBITDA, adjusted EBITDA margin, organic gross principal agent adds, TE revenue, mortgage JV profitability, and weekly agent sessions on the platform.” CFO Scott Wahlers added that the firm’s financial and operational execution had been strong, with record Q4 revenue and robust cash generation.
The dismissal of the lawsuit aligns with Compass’s broader growth strategy and positions the company to focus on expanding its agent network and technology offerings. By eliminating a key regulatory hurdle, Compass can devote resources to product development and market expansion, while the policy change at Zillow may influence future regulatory interactions across the real‑estate brokerage industry.
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