Transaction Coordinator

Anywhere acquisition powers Compass to record revenue, stronger profits. While much of the focus on Compass International Holdings' acquisition of Anywhere Real Estate has been devoted to how the merger impacts Compass's market share, it has also had a significant impact on the firm's financial performance. According to the company's second quarter 2026 financial results published on Tuesday, Compass International Holdings generated $4.3 billion more than double its Q2 2025 revenue of $2.06 billion, which the company attributed to its Anywhere acquisition, which closed in early January of this year. However, when adjusted on a pro forma basis to pretend the two firms were already combined a year ago, revenue still grew 14.3% annually. In addition to revenue growth, Compass International Holdings also reported a net income of $92 million, up from $39 million a year ago. The firm also generated a positive free cash flow of $180 million in the second quarter. "With $694 million of cash on hand and the positive free cash flow we expect to generate in the second half of the year, we remain committed to redeeming our $500 million 9.75% Notes when they are first callable in Q2 of 2027," Scott Wahlers, the firm's chief financial officer, said in prepared remarks. "Deleveraging the balance sheet remains a key focus for the company, and we expect to continue to make progress on this front through strong cash flow generation." Transaction count on the rise. Compared to a year ago, the firm's owned brokerage gross transaction value was up 98.2% to $155.2 billion, largely due to the Anywhere acquisition. On a pro forma basis, gross transaction value was still up 15.9% annually. This increase comes as the firm reported a 109.5% annual increase in closed transactions to 153,009 transactions in Q2 2026. This number represented a 7.4% year-over-year increase on a pro forma basis. In contrast, the greater U.S. housing market recorded a 6% annual gross transaction volume increase and a 3.5% transaction count increase during the same period. "For 21 consecutive quarters, spanning our entire history as a public company, our brokerage has outperformed the market on an organic basis for the Compass standalone brand, and now for two consecutive quarters, including Anywhere," Robert Reffkin, the CEO of Compass International Holdings, said in prepared remarks. One negative note for the owned brokerage operation was a quarter-over-quarter drop in agent count from 84,187 at the end of Q1 2026 to 83,184 at the end of Q2 2026. Compass attributed this to a "strategy at a specific brand acquired through the Anywhere transaction to separate low and non-productive agents." Overall, Compass said the owned brokerage operation had an agent retention rate of 95.5% for the quarter. The company also provided data on its franchise network, which closed 203,207 transactions totaling $120.0 billion in gross transaction value during the quarter. Compass said this performance resulted in a net royalty rate per side of $505 down from $591 per side a year ago. The firm said this decrease was "driven primarily by the franchise transactions from the newly acquired brands that have a lower average sales price compared to the Christie's International Real Estate network." Ancillary and partnerships going strong. Looking at Compass's ancillary title and escrow operation, the number of transactions were also up significantly to 42,608 in Q2 2026, which represented a 441% annual increase. Again, Compass said this was driven primarily by the Anywhere acquisition. On a pro forma basis, title and escrow transactions were up 7.6% annually. The company also provided an update on its partnership with Redfin, which was announced earlier this year. Since launching at the end of Q1 2026, Compass said its agents have received more than 60,000 leads from Rocket-Redfin. Additionally, Compass said it has provided Redfin with more than 20,000 coming soon listings. The firm also noted that visitor sessions on Compass.com, specifically in Chicago where the firm said it has the most coming soon listings, was up 111%. Integration update. Compass is also in the midst of rolling out its Home Platform to agents at the non-Compass owned brokerage operations. In July, Compass said the platform was released to 4,000 of these agents at Coldwell Banker Realty, Corcoran and Sotheby's International Realty. By the end of September, Compass International Holdings said it expects roughly 50,000 non-Compass agents to be on the platform, for a total of roughly 80,000 agents on the platform nationwide. The company said it remains on track to roll out the Home Platform to agents at its franchise network beginning in Q1 2027. Reffkin added that the integration with Anywhere is going well and that the firm has already met its first year goal of $300 million in net cost synergies. "Our progress to date reinforces our confidence in delivering on our $500 million net cost synergy target over three years. By fully realizing these cost synergies, we believe we will be able to achieve durable profitability and de-lever our balance sheet even in a muted market, with significant upside in a housing market recovery," Reffkin said.

Compass reported record second quarter 2026 results, with revenue growing 14% year-over-year to $4.3 billion. The real estate services company posted GAAP net income of $92 million and adjusted EBITDA of $363 million. The firm achieved its entire $300 million Year 1 net cost synergy target five months ahead of schedule following its integration with Anywhere. Consequently, Compass raised its Year 1 actioned net cost synergy target to $330 million and its 2026 realised net cost synergy target to $220 million. Operating cash flow reached $191 million, whilst the company's cash balance increased by $210 million quarter-over-quarter to $694 million. Compass maintained zero balance on its revolver. The company's brokerage gross transaction value rose 15.9% year-over-year on a pro forma basis, outperforming market volumes which grew 6%.

Compass Q2 earnings call highlights. August 4, 2026 Key points. * Record Q2 performance: Compass reported $4.3 billion in revenue, up 14.3% pro forma, and $363 million in adjusted EBITDA. GAAP net income rose to $92 million, while free cash flow reached $180 million and cash increased to $694 million. * Growth and integration gains: Brokerage transaction value grew 16% pro forma, outpacing the broader housing market, with luxury markets and integrated title and escrow services supporting results. Compass achieved its initial $300 million synergy target five months early and now expects $330 million by the end of the first year. * Platform expansion and outlook: Compass is rolling out its Home Platform to more than 80,000 agents and expanding its Coming Soon strategy through its Rocket Redfin partnership. The company forecast third-quarter revenue of $3.85 billion to $4.05 billion and adjusted EBITDA of $275 million to $305 million. * MarketBeat previews the top five stocks to own by September 1st. Compass NYSE: COMP reported record second-quarter revenue and adjusted EBITDA, with results exceeding its guidance range as the company continued integrating the Anywhere businesses acquired earlier this year. Revenue totaled $4.3 billion in the second quarter, up 14.3% from the prior-year period on a pro forma basis, while adjusted EBITDA reached $363 million. The company generated GAAP net income of $92 million, compared with $39 million a year earlier, and free cash flow of $180 million. Cash on hand rose by $210 million from the first quarter to $694 million as of June 30. Founder and CEO Robert Reffkin said the company's brokerage operations, including the Coldwell Banker, Compass, Corcoran and Sotheby's International Realty brands, outpaced the broader housing market. Brokerage gross transaction value rose about 16% year over year on a pro forma basis, compared with a 6% increase in overall market volume, while transactions increased 7.4% against market growth of 3.5%. "Our talented real estate professionals and our presence in the luxury markets allowed us to capitalize on this market growth," CFO Scott Wahlers said. Luxury markets and integrated services support growth. Owned brokerage revenue was $3.96 billion, up 15% on a pro forma basis. Wahlers said wealth creation tied to the artificial intelligence boom in Northern California contributed to growth, citing data from Compass Chief Economist Mike Simonsen showing 140 San Francisco homes sold for at least $1 million above asking price during the first half of the year. Compass said its standalone brand's Bay Area revenue was up 19% year over year in both July and August, on a business-day-adjusted basis, following 20% growth in June. Franchise revenue rose 7.6% to $135 million, while integrated services revenue increased 7.7% to $211 million, led by title and escrow operations. Total title and escrow transactions increased 7.6%, with purchase transactions up 6% and refinancing transactions up 25%. The company plans to migrate its title and escrow operations to Compass' title production platform during 2026 and 2027. Reffkin said the transition is intended to create additional efficiencies and margin opportunities, while the company works to expand the attachment of title, escrow and mortgage services to brokerage transactions. Synergies ahead of plan. Compass said it had actioned its full first-year target of $300 million in net cost synergies by July, five months ahead of schedule. Management now expects to action $330 million of net synergies by the end of the first year and to realize $220 million during 2026, including about $150 million through operating expenses and $70 million through capital expenditures. The company maintained its longer-term target of $500 million in actioned net cost synergies but said it expects to reach that amount in less than three years and potentially exceed it over that period. Wahlers cautioned that the pace of savings could slow as Compass moves into deeper operational integrations and systems work. Non-GAAP operating expenses were $699 million in the quarter and were essentially flat year over year on a pro forma basis. Compass said its cost to serve per transaction within the standalone Compass brand reached a record low. Platform rollout and Coming Soon strategy. Compass began a pilot rollout of its newly branded Home Platform in July to more than 4,000 agents across Coldwell Banker, Corcoran and Sotheby's International Realty. The platform received an 82% customer satisfaction score, according to the company. By the end of September, Compass expects nearly 50,000 additional agents in its owned brokerage brands to have access to the platform, bringing the total to more than 80,000 agents including the Compass brand. Domestic franchise agents are expected to begin onboarding in the first quarter of 2027. Reffkin also highlighted the company's partnership with Rocket Redfin. Since Coming Soon listings launched on Redfin in late in the first quarter, Compass agents have received more than 60,000 leads from Rocket Redfin and Compass has provided more than 20,000 Coming Soon listings to Redfin, he said. In Chicago, where Compass has its largest concentration of Coming Soon listings, sessions on compass.com increased 111% year over year, compared with 34% growth across the company's website overall. Reffkin said adoption of Compass' three-phase marketing strategy approached 57% of new Compass listings in the most recent week, and the company expects 80% of Compass brokerage listings to launch as Coming Soon listings by the end of the third quarter. During the call, Reffkin argued that more flexible multiple-listing-service rules and state-level seller opt-out laws could support the company's marketing strategy. He said Compass expects more than 90% of MLSs to have rules allowing sellers to market both private-exclusive and Coming Soon listings by year-end. AI initiatives and outlook. Compass said it is deploying artificial intelligence tools to lower operating costs and improve agent productivity. The company identified roughly $8 million in savings and cost-avoidance opportunities through AI workflows in areas including transaction management, legal and growth. It also said AI now produces 50% to 60% of new code across its technology organization. For the third quarter, Compass forecast revenue of $3.85 billion to $4.05 billion and adjusted EBITDA of $275 million to $305 million. It expects positive free cash flow for the period. For the full year, the company raised its non-GAAP operating expense forecast by $50 million to a range of $2.75 billion to $2.80 billion. The increase reflects $35 million of operating expenses from a brokerage acquisition completed in early July, along with additional compensation tied to recent performance. Wahlers said Compass expects to continue building cash until debt call restrictions expire in April 2027. The company plans to redeem $500 million of 9.75% notes during the second quarter of 2027 and said it had no borrowings outstanding under its $500 million revolving credit facility at quarter-end. About compass (NYSE:COMP). 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. Continue following MarketBeat Before you consider Compass, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. 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