Compass Q3 revenue up 23.6%, beats estimates

Compass

04/11/2025 12:21

Overview

Compass Q3 revenue grows 23.6% yr/yr to $1.85 bln, beating analyst expectations

Adjusted EBITDA for Q3 rises 80% yr/yr, reflecting strong operational performance

Company reports strong cash generation, with free cash flow up 124% yr/yr

Outlook

Company projects Q4 revenue between $1.590 bln and $1.690 bln

Compass expects Q4 adjusted EBITDA of $35 mln to $49 mln

Company reduces full-year non-GAAP OPEX forecast to $1.000 bln-$1.005 bln

Result Drivers

AGENT GROWTH - Record 851 principal agents joined Compass organically in Q3, marking an all-time high

TRANSACTION OUTPERFORMANCE - Co grew organic transactions by 7% and total transactions by 22%, outpacing market growth of 2%

TECHNOLOGY PLATFORM - Co's platform hit a Q3 record of 22 average weekly sessions per agent, enhancing agent efficiency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$1.84 bln
$1.78 bln (9 Analysts)
Q3 EPS
-$0.01
Q3 Net Income
-$4.60 mln
Q3 Operating Expenses
$1.85 bln
Q3 Operating Income
-$7.20 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "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 $9.50, about 18.1% above its November 3 closing price of $7.78

The stock recently traded at 84 times the next 12-month earnings vs. a P/E of 203 three months ago

Press Release: ID:nPn30d7Q7a

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(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.)