Compass Q1 revenue beats estimates, co raises Q2 outlook

Compass

05/05/2026 21:40

Overview

US real estate services firm's Q1 revenue nearly doubled, beating analyst expectations

Company posted GAAP net income of $22 mln, reversing a loss from prior year

Raised 2026 cost synergy target to $300 mln, citing integration progress

Outlook

Company expects Q2 revenue of $4.0 bln to $4.2 bln

Company sees Q2 Adjusted EBITDA of $310 mln to $350 mln

Compass expects to be free cash flow positive for full year 2026

Result Drivers

ANYWHERE ACQUISITION - Revenue, transaction volumes, and agent count surged due to the addition of Anywhere's business

COST SYNERGIES - Over $250 mln in net cost synergies actioned in Q1, with 2026 realized cost synergy target raised to $200 mln

OPEX DISCIPLINE - Adjusted EBITDA above guidance driven by continued operating expense discipline

Company press release: ID:nPn2ysXlRa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$2.70 bln
$2.66 bln (8 Analysts)
Q1 EPS
$0.03
Q1 Net Income
$22 mln
Q1 Operating Expenses
$3.06 bln
Q1 Operating Income
-$351 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "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 $12.00, about 70% above its May 4 closing price of $7.06

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 45 three months ago

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.)