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Jun 30
Compass Q2 2025 Earnings Report
Compass reported record second quarter 2025 results, achieving all-time highs in market share, revenue, GAAP net income, adjusted EBITDA, adjusted EBITDA margin, free cash flow, T&E revenue, T&E attach, and weekly agent sessions on the platform.
Key Takeaways
Compass delivered its best quarterly results in history, significantly outperforming the market with strong growth in revenue, net income, and key operational metrics. The company achieved record market share and robust agent retention, demonstrating the strength of its value proposition and platform.
Revenue increased by 21.1% year-over-year to $2.06 billion, driven by a 20.9% increase in total transactions.
GAAP Net Income grew 90.3% year-over-year to a record $39.4 million.
Operating Cash Flow reached a record $72.8 million, with Free Cash Flow at $68.0 million.
Quarterly market share expanded by 96 basis points year-over-year to an all-time high of 6.09%.
Compass
Compass
Forward Guidance
Compass provided an optimistic outlook for Q3 2025 and updated its full-year 2025 guidance, expecting continued revenue growth, strong Adjusted EBITDA, and positive free cash flow.
Positive Outlook
- Projected Q3 2025 revenue between $1.725 billion and $1.850 billion.
- Anticipated Q3 2025 Adjusted EBITDA between $60 million and $80 million.
- Updated full-year 2025 non-GAAP OPEX reflecting a reduction from the prior range, indicating improved cost management.
- Expected to be free cash flow positive for the full year 2025.
- Continued integration of recent acquisitions (Christie's International Real Estate, Washington Fine Properties, Texas title company, and two small brokerages) contributing to future growth.
Challenges Ahead
- Certain expenses excluded from GAAP Net income (loss) when calculating Adjusted EBITDA cannot be reasonably calculated or predicted at this time.
- Certain expenses excluded from GAAP OPEX cannot be reasonably calculated or predicted at this time.
- Forward-looking statements are subject to risks and uncertainties, including general economic conditions and the health of the U.S. real estate industry.
- High mortgage interest rates could impact future performance.
- Ongoing industry antitrust class action litigation poses a potential risk.