Compass Q2 revenue rises

Compass

30/07/2025 21:16

Overview

Compass Q2 revenue rises 21.1% yr/yr to $2.06 bln, in-line with analyst estimates, per LSEG data

GAAP net income grows 90.3% yr/yr to $39.4 mln

Outlook

Compass sees Q3 revenue between $1.725 bln and $1.850 bln

Company expects Q3 adjusted EBITDA of $60 mln to $80 mln

Compass updates full-year non-GAAP OPEX to $1.010 bln-$1.020 bln

Company expects to be free cash flow positive for full-year 2025

Result Drivers

TRANSACTION GROWTH - Total transactions increased by 20.9% yr/yr, with organic transactions up 6.3%, outpacing the market decline of 0.9%

AGENT EXPANSION - Record addition of 832 principal agents in Q2, contributing to a 23.3% yr/yr increase in total principal agents

ACQUISITION IMPACT - Christie's International Real Estate acquisition contributed 10.4% to revenue growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Meet
$2.06 bln
$2.05 bln (9 Analysts)
Q2 EPS
$0.07
Q2 Net Income
$39.20 mln
Q2 Operating Expenses
$2.02 bln
Q2 Operating Income
$39.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "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 $8.50, about 13.3% above its July 29 closing price of $7.37

The stock recently traded at 158 times the next 12-month earnings vs. a P/E of 62 three months ago

Press Release: ID:nPn8JjKtla

(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.)