Compass Posts Record Third-Quarter Profit and Cash Flow

The Tip Desk · November 6, 2026 · 4 min read

Revenue reached $3.90 billion and Adjusted EBITDA of $306 million topped the high end of the company's guidance range.

Compass, Inc. (COMP), a global real estate services company, reported revenue of $3.90 billion for the third quarter ended September 30, 2026, up 111% from $1.85 billion a year earlier, and up 11.6% versus pro forma revenue of $3.49 billion that treated the Anywhere combination as if it had closed on July 1, 2025.

GAAP net income attributable to Compass was $62 million, or $0.07 a share on a diluted basis, compared with a net loss of $4 million, or $0.01 a share, in the year-ago quarter. Adjusted EBITDA was $306 million, versus $94 million a year earlier, with margin at 7.9%. Founder and Chief Executive Officer Robert Reffkin said Adjusted EBITDA surpassed the high end of the company's guidance range on operating-expense discipline and cost-synergy realization.

Organic revenue, which includes only businesses Compass or Anywhere owned as of July 1, 2025, was $3.75 billion. Pro forma revenue growth slowed from 14.3% in the second quarter.

Brokerage gross transaction value was $138.9 billion. Organic Brokerage GTV of $133.1 billion grew 7.5% year-over-year on a pro forma basis, against a 0.7% increase in U.S. residential market GTV, a 680-basis-point outperformance that Reffkin said followed about 1,000 basis points in the second quarter. Brokerage agents closed 140,118 transactions. Organic transactions of 135,956 declined 0.3% on a pro forma basis, versus a 1.8% decline in the market, or about 150 basis points of outperformance after 390 basis points in the second quarter.

Franchise GTV was $108.9 billion. Organic Franchise GTV of $104.2 billion grew 2.3% on a pro forma basis. Organic Franchise transactions of 189,054 decreased 3.6%. Net royalty rate per side was $486, down 27.4% from $669, which the company said was driven primarily by newly acquired brands with a lower average sales price than the Christie's International Real Estate network; organic net royalty per side of $470 grew 3.8% on a pro forma basis.

Title and escrow transactions were 38,757, up 1.7% versus pro forma transactions of 38,123. Average revenue per transaction was $3,590. Funded loan volume across OriginPoint and Guaranteed Rate Affinity was $3.30 billion, up 9.9% on a pro forma basis.

Total Brokerage agents were 85,476 at quarter-end, up from 83,184 at the end of the second quarter. The company added 6,390 agents on a gross basis. Organic gross agent additions were 2,734. Agent retention was 95.1%, versus 95.5% in the second quarter. Total separations were 4,098; 58% of those agents had $0 GCI in the last twelve months and 74% had $20,000 or less.

Operating cash flow was $248 million and free cash flow was $240 million. Cash and cash equivalents were $841 million at September 30, up from $694 million at the end of the second quarter, with no revolver balance. Total long-term debt was $3.14 billion. Net debt to Adjusted EBITDA was 2.7 times, which the company said was nearly two turns below the 4.4 times when the Anywhere transaction was first announced. Chief Financial Officer Scott Wahlers said the company remains in a good position to redeem its $500 million 9.75% notes when they are first callable in the second quarter of 2027.

As of October 31, 2026, Compass had onboarded 33,950 real estate professionals from Coldwell Banker Realty, Corcoran, and Sotheby's International Realty, bringing professionals on the platform across owned-brokerage brands to 68,349. More than 25,200 professionals used Structural Advantage Tools in the third quarter, up 44% from the second quarter. The company said it plans to roll out the platform to all franchise-network professionals starting in the first quarter of 2027.

For the fourth quarter of 2026, Compass guides to revenue of $3.150 billion to $3.350 billion and Adjusted EBITDA of $100 million to $130 million. Full-year 2026 non-GAAP OPEX is now $2.71 billion to $2.73 billion, down from a prior range of $2.75 billion to $2.80 billion. The company said free cash flow will be positive for the full year. Reffkin said the housing market had softened over the past few weeks and that Compass is positioned to do very well in the current environment, citing OPEX management and cost synergies as a basis for generating significant free cash flow while delevering the balance sheet.