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Mar 31
Compass Q1 2025 Earnings Report
Reported record first quarter 2025 results with strong revenue growth and improved profitability.
Key Takeaways
Compass achieved record Q1 free cash flow and Adjusted EBITDA, with significant revenue growth driven by increased transactions and market share gains. The company's strategic acquisitions contributed to top-line expansion while operating expenses remained controlled.
Revenue in Q1 2025 increased by 28.7% year-over-year to $1.4 billion.
Adjusted EBITDA was $15.6 million in Q1 2025, a $35.7 million improvement year-over-year.
Operating Cash Flow was $23.1 million and free cash flow was $19.5 million in Q1 2025.
Quarterly market share grew 125 basis points year-over-year to a record 6.0%.
Compass
Compass
Forward Guidance
For Q2 2025, Compass expects revenue between $2.0 billion and $2.15 billion and Adjusted EBITDA between $115 million and $135 million. For the full year 2025, they anticipate non-GAAP OPEX between $1.017 billion and $1.042 billion and expect to be free cash flow positive.
Positive Outlook
- Projected strong revenue growth in Q2 2025.
- Expected positive Adjusted EBITDA in Q2 2025.
- Anticipated positive free cash flow for the full year 2025.
- Full year non-GAAP OPEX guidance includes costs from recent acquisitions.
- Confidence in their playbook and structural advantages for long-term upside.
Challenges Ahead
- Guidance for Adjusted EBITDA not reconciled to GAAP Net loss due to unpredictability.
- Guidance for non-GAAP OPEX not reconciled to GAAP OPEX due to unpredictability.
- Recent market trends have been somewhat mixed.
- Subject to risks and uncertainties in the real estate industry and general economic conditions.
- Ongoing industry antitrust class action litigation.