Compass reported record revenue of $1.70 billion for the fourth quarter of 2025, a 23.1% year‑over‑year increase that beat the consensus estimate of $1.68 billion. The company also posted a full‑year revenue of $7.0 billion, up 11.3% from the prior year. Net loss for the quarter was $42.6 million, slightly higher than the $40.5 million loss reported in Q4 2024, while adjusted EBITDA rose to $58.3 million from $16.7 million in the same period last year.
Compass generated record operating cash flow of $217 million for the year, driven by strong transaction volume and disciplined cost management. Q4 operating cash flow was $45.3 million, up 49% year‑over‑year, marking the eighth consecutive quarter of positive operating cash flow. The company’s margin profile improved, with commissions and other related expenses falling 73 basis points to 81.4% of revenue and adjusted EBITDA margin expanding to 3.4%, a 220‑basis‑point gain YoY.
The agent network continued to grow, adding 851 new gross principal agents in Q3 2025. Compass has maintained a streak of 19 consecutive quarters of outperformance relative to the broader U.S. residential real‑estate market, with organic transaction growth of 5.6% and total transaction growth of 19.7% in Q4 2025.
Compass reported an EPS of $-0.07 for Q4 2025, missing the consensus estimate of $-0.06. The miss was attributed to one‑time merger expenses of $10.6 million and stock‑based compensation, which weighed on earnings despite strong revenue growth.
Management guidance for the first quarter of 2026 reflects a cautious outlook. Revenue guidance is $2.55–$2.75 billion, and adjusted EBITDA guidance is $15–$35 million, both below analyst expectations. The guidance signals confidence in maintaining profitability while acknowledging potential headwinds in the housing market.
Strategic moves continue to shape Compass’s trajectory. The company completed the acquisition of Anywhere Real Estate, whose 2025 standalone net revenues were $5.96 billion and operating EBITDA was $294 million, positioning Compass for long‑term synergies. A partnership with Rocket Companies and Redfin allows Compass to display private listings on Redfin, expanding its market reach.
Market reaction to the earnings was positive. The stock closed at $9.51, reflecting investor approval of the revenue beat, margin expansion, agent growth, and the strategic acquisition of Anywhere.
"Compass 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, T&E revenue, mortgage JV profitability, and weekly agent sessions on the platform," said CEO Robert Reffkin. "In the fourth quarter, we also continued to outperform the industry as we grew organic transactions by 5.6 percent and total transactions by 19.7 percent, while market transactions increased by 0.7 percent year‑over‑year. This means organic and total transactions outgrew the market by approximately five and nineteen percentage points, respectively. For 19 consecutive quarters, spanning our entire history as a public company, Compass has outperformed the market on an organic basis."
"We delivered $1.70 billion in Revenue representing robust growth of 23.1% year‑over‑year. Notably, we continued our strong track record of cash generation, with Operating Cash Flow growing 49% year‑over‑year to $45.3 million, despite a challenging housing market, and reflecting the 8th consecutive quarter of positive Operating Cash Flow," said CFO Scott Wahlers.
Compass faces a challenging housing market, but disciplined cost management and a growing agent network have helped sustain cash flow and margin expansion. The EPS miss highlights the impact of one‑time merger costs and stock‑based compensation, underscoring the importance of managing non‑recurring expenses as the company scales.
Compass remains well‑positioned to capitalize on its technology platform and agent network, with the Anywhere acquisition and Redfin partnership expected to drive future growth and scale.
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