Compass (NYSE:COMP) Posts Earnings Results, Misses Expectations By $0.01 EPS

Compass (NYSE:COMP) released its quarterly earnings results on Thursday. The company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.01), Zacks reports. The firm had revenue of $1.70 billion during the quarter, compared to analysts’ expectations of $1.69 billion. Compass had a negative return on equity of 8.83% and a negative net margin of 0.85%.

Here are the key takeaways from Compass’ conference call:

• Compass reported a record Q4 and full-year 2025: $1.7 billion revenue in Q4 and ~$7 billion for the year, with Q4 Adjusted EBITDA of $58M and FY Adjusted EBITDA of $293M, plus all-time high operating cash flow of $217M.
• The company announced an exclusive three-year strategic alliance with Redfin and Rocket Mortgage expected to deliver 1.2 million high-intent leads, prioritized exposure for unique/Coming Soon inventory on Redfin.com, and mortgage incentives to boost listings and agent visibility.
• Post-close integration progress is rapid: ~$175M of cost synergies actioned in ~6.5 weeks, with a CEO commitment to action $250M in year one and realize $400M of net cost synergies over three years.
• Near-term financial/headwind items: Q1 2026 guide (now including Anywhere) targets consolidated revenue $2.55–2.75B but low Adjusted EBITDA ($15–35M), expects materially negative free cash flow in Q1, and consolidated long-term debt of $3.15B, driven partly by Anywhere-related LTIP, healthcare, and purchase-accounting rent impacts.

Compass Price Performance

NYSE:COMP opened at $9.98 on Friday. The firm has a market capitalization of $5.62 billion, a price-to-earnings ratio of -90.73 and a beta of 2.54. The business has a 50 day simple moving average of $11.52 and a 200-day simple moving average of $9.82. Compass has a 1 year low of $5.66 and a 1 year high of $13.95.

Wall Street Analysts Forecast Growth

COMP has been the subject of several research reports. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Compass in a research report on Wednesday, January 21st. The Goldman Sachs Group began coverage on shares of Compass in a report on Tuesday, January 27th. They set a “neutral” rating and a $14.00 target price for the company. Deutsche Bank Aktiengesellschaft upgraded shares of Compass from a “hold” rating to a “buy” rating and set a $16.00 price target on the stock in a research report on Tuesday, January 20th. JPMorgan Chase & Co. assumed coverage on Compass in a research note on Monday, January 26th. They issued an “overweight” rating and a $15.00 price objective for the company. Finally, Barclays raised their target price on Compass from $13.00 to $15.00 and gave the stock an “overweight” rating in a report on Thursday, January 15th. Eight research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $13.64.

More Compass News

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Large Compass–Rocket–Redfin alliance could materially expand listing inventory and buyer traffic, potentially increasing referral, mortgage and platform monetization opportunities. This deal is the most direct catalyst for higher future revenues and market share. Compass and Rocket Form Historic Alliance to Dramatically Increase Home Listing Inventory on Redfin
• Positive Sentiment: Compass will syndicate its “Coming Soon” / exclusive listings to Redfin, bringing off-market inventory to a large consumer portal sooner — should boost buyer engagement and accelerate transaction velocity. Compass Coming Soon listings to appear on Redfin
• Positive Sentiment: Rocket Pro’s deal with Compass increases broker credits and introduces a new LOS (“Jupiter”), improving incentives and tech for mortgage origination tied to Compass inventory — could strengthen integrated agent-to-lender conversion and ancillary revenue. Rocket Pro doubles broker credits with Compass deal, unveils ‘Jupiter’ LOS
• Neutral Sentiment: Q4 results mixed: EPS of ($0.07) missed estimates by $0.01, but revenue of $1.70B slightly topped consensus — shows top-line momentum while profitability remains a challenge. Market reaction reflects the tradeoff. Compass, Inc. (COMP) Reports Q4 Loss, Tops Revenue Estimates
• Neutral Sentiment: Quarterly guidance update centers revenue around a band (~$2.6B–$2.8B vs. $2.7B consensus) but EPS guidance was not clearly specified in the release — leaves room for investor interpretation on near-term profitability. Compass earnings / guidance
• Negative Sentiment: Post-merger policy changes — including a new lead-referral/transaction fee framework — are being rolled out and could spark agent pushback or friction in agent economics, posing execution and retention risks. That could weigh on growth and margins if agents reduce listings or switch brokerages. Compass’ post-merger policies take shape

Insider Transactions at Compass

In related news, CFO Scott R. Wahlers sold 99,986 shares of the firm’s stock in a transaction on Wednesday, January 7th. The stock was sold at an average price of $12.03, for a total value of $1,202,831.58. Following the completion of the sale, the chief financial officer directly owned 250,073 shares in the company, valued at $3,008,378.19. This trade represents a 28.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 4.08% of the stock is currently owned by corporate insiders.

About Compass

Compass, Inc is a technology-driven real estate brokerage firm that provides a full suite of services for home buyers, sellers and renters. Utilizing a proprietary software platform, the company equips its network of licensed real estate agents with data analytics, marketing automation and client relationship tools designed to enhance efficiency and transaction transparency.

Founded in 2012 by Ori Allon and Robert Reffkin, Compass has grown from a single office in New York City to serve more than 300 markets across the United States.