Compass Q2 revenue rises beats analyst estimates on cost synergies

Compass

04/08/2026 21:28

Overview
US real estate services firm's Q2 revenue rose 14% yr/yr, beating analyst expectations
Adjusted EBITDA for Q2 reached a record $363 mln, driven by cost synergies
Company raised cost synergy targets after achieving $300 mln in savings ahead of schedule

Outlook
Compass sees Q3 revenue of $3.85 bln to $4.05 bln
Company expects Q3 adjusted EBITDA of $275 mln to $305 mln
Compass expects to be free cash flow positive for full-year 2026

Result Drivers
COST SYNERGIES - Co said realization of $300 mln in net cost synergies from the Anywhere integration drove results, with targets raised after achieving savings ahead of schedule
BROKERAGE OUTPERFORMANCE - Co said brokerage gross transaction value and transactions grew faster than the overall US residential real estate market, contributing to revenue growth
INTEGRATED SERVICES GROWTH - Co said title and escrow transactions rose 7.6% yr/yr on a pro forma basis, with average revenue per transaction up 1.5%

Company press release: ID:nPn64wkVRa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$4.31 bln
$4.09 bln (8 Analysts)
Q2 EPS
 
$0.11
 
Q2 Net Income
 
$92 mln
 
Q2 Operating Expenses
 
$4.18 bln
 
Q2 Operating Income
 
$124 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Compass Inc is $15.00, about 27.7% above its August 3 closing price of $11.75
The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads
Aug 3 - Real estate platform Offerpad Q2 revenue falls more than expected, but margins rise
Aug 3 - Singapore's APAC Realty half-year profit slips on higher costs, lower brokerage fees
Aug 4 - Kimco Realty lifts annual profit forecast, beats quarterly revenue estimates on strong leasing demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)