Executive Summary

Record Q3 results: revenue $1.846B (+23.6% YoY, at high end of guide), Adjusted EBITDA $93.6M (+80% YoY), and free cash flow $73.6M, driven by stronger transactions (+21.5% YoY), improved commission economics and contribution from Christie's; GAAP net loss was $(4.6)M due to $59.6M SBC and $7.5M merger costs . Versus S&P Global consensus, revenue beat ($1.846B vs $1.790B*) and Primary EPS beat (+$0.11 vs −$0.02*) for Q3 2025. Values retrieved from S&P Global.
Guidance: Q4 revenue $1.590–$1.690B and Adjusted EBITDA $35–$49M; FY25 non‑GAAP OPEX cut to $1.000–$1.005B (from $1.010–$1.020B) and FCF positive affirmed .
Strategic: Management raised merger synergy commitment for Anywhere Real Estate to >$300M net cost synergies (11% of combined non‑GAAP OPEX), with $150M in year one post‑close; integration blueprint leverages recent Christie's results in T&E attach and mortgage JV profitability .
Operating momentum: 851 gross principal agents added (record), quarterly market share 5.63% (+83 bps YoY), GTV $70.7B (+22.5% YoY), and platform use at 22 average weekly sessions per agent; organic transactions +6.6% vs market +2% .

What Went Well and What Went Wrong

What Went Well

Record Q3 across revenue, Adjusted EBITDA, Adjusted EBITDA margin and FCF. CEO: “Compass delivered the strongest Q3 results in our history… including Revenue, Adjusted EBITDA… Free Cash Flow” . CFO: “We delivered $1.85 billion in revenue… and Adjusted EBITDA of $93.6 million” . Q3 FCF $73.6M vs $32.8M LY .
Share gains and volume outperformance: total transactions +21.5% (market +2%), organic +6.6%; market share up 83 bps YoY to 5.63% . “For 18 consecutive quarters… Compass has outperformed the market on an organic basis” .
Ancillary flywheel and operating discipline: most profitable quarter for mortgage JV (equity in income +$3M), improved commission rate from Christie's mix, and continued non‑GAAP OPEX control (Q3 non‑GAAP OPEX ex‑merger costs $252M, relatively flat QoQ) . CFO: commissions as % revenue improved 73 bps YoY to 81.44% aided by Christie's margin profile .

What Went Wrong

GAAP profitability remained negative: Q3 GAAP net loss $(4.6)M vs $(1.7)M LY, impacted by $59.6M SBC and $7.5M merger transaction costs; excluding merger costs, GAAP net income would have been $2.9M .
Non‑GAAP OPEX up YoY due to M&A: total non‑GAAP OPEX $252M vs $215M LY, reflecting Christie's and other 2025 acquisitions; organically up ~3.5% YoY despite discipline .
Ongoing legal and integration costs: new P&L line for “Anywhere Merger Transaction and Integration Expenses” began in Q3; management expects further transaction/integration spend and notes continuing legal expenses into 2026 .

Financial Results

Results by Quarter (oldest → newest)

Metric	Q3 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Billions)	$1.494	$1.356	$2.060	$1.846
GAAP Diluted EPS ($)	$0.00	$(0.09)	$0.07	$(0.01)
Adjusted EBITDA ($USD Millions)	$52.0	$15.6	$125.9	$93.6
Adjusted EBITDA Margin (%)	3.5% (calc from $52.0/$1.494)	1.2% (calc from $15.6/$1.356)	6.1% (calc from $125.9/$2.060)	5.1%
Free Cash Flow ($USD Millions)	$32.8	$19.5	$68.0	$73.6

Notes: Margins for Q3’24–Q2’25 are calculated from reported revenue and Adjusted EBITDA with cited inputs.

Q3 2025 Actual vs S&P Global Consensus

Metric	Consensus	Actual	Surprise
Revenue ($USD Billions)	$1.790*	$1.846	+$0.056B / +3.1%
Primary EPS ($)	−$0.02*	+$0.11*	+$0.13
EBITDA ($USD Millions)	$69.4*	$31.7*	−$37.7M

Values retrieved from S&P Global. Note: Company reports Adjusted EBITDA of $93.6M (non‑GAAP), which differs from S&P’s EBITDA definition .

Key KPIs and Operating Metrics

KPI	Q3 2024	Q2 2025	Q3 2025	YoY / Seq Commentary
Market Share (%)	4.80% (derived from +83 bps)	6.09%	5.63%	+83 bps YoY; seasonal step down from Q2 as West Coast mix fades
Principal Agents (end of period)	17,542	20,965	21,550	+22.8% YoY; +851 gross adds seq (record)
Transactions (units)	55,872	73,025	67,886	+21.5% YoY; organic +6.6% vs market +2%
GTV ($USD Billions)	$57.7	$78.3	$70.7	+22.5% YoY
Avg Weekly Sessions per Agent	—	24	22	Q3 seasonal moderation, still record for Q3

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($B)	Q3 2025	$1.725–$1.850	Actual: $1.846	In‑range at high end
Adjusted EBITDA ($M)	Q3 2025	$60–$80	Actual: $93.6	Above high end
Revenue ($B)	Q4 2025	—	$1.590–$1.690	New
Adjusted EBITDA ($M)	Q4 2025	—	$35–$49	New
Non‑GAAP OPEX ($B)	FY 2025	$1.010–$1.020	$1.000–$1.005	Lowered
Free Cash Flow	FY 2025	Positive	Positive	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
AI/productivity	Launch of Compass One; One‑Click T&E on iOS; Reverse Prospecting; rising platform sessions	Compass AI 2.0 alpha complete; full launch before next earnings; “AI for AI” to automate workflows; noted organic lead flow from ChatGPT to top agents	Expanding scope; nearer to broad deployment
Market outperformance	Organic transactions +7.3% (Q1), +6.3% (Q2); market negative/slightly down	Organic +6.6% vs market +2%; 18 consecutive quarters of organic outperformance	Sustained
T&E attach / Mortgage JV	One‑Click T&E doubling attach for users; growing T&E revenue; profitable JV	Record attach in legacy markets; most profitable quarter for mortgage JV; Christie's affiliates boosted attach by 1000 bps	Strengthening
Cost discipline	FY OPEX guidance tightened in Q2; non‑GAAP G&A/Litigation normalization	FY OPEX cut again to $1.000–$1.005B; new line for merger costs; AI‑driven efficiency push	Incremental improvements
M&A/Integration	Christie's integration delivering synergies; tuck‑ins paused pre‑merger	Anywhere merger: synergy target raised to >$300M; pause on tuck‑ins; day‑one platform readiness for franchise model	Larger, more ambitious synergy plan

Management Commentary

CEO Robert Reffkin: “Compass delivered the strongest Q3 results in our history, marked by several quarterly records including Revenue, Adjusted EBITDA… Free Cash Flow” . “For 18 consecutive quarters… Compass has outperformed the market on an organic basis” .
CFO Scott Wahlers: “We delivered $1.85 billion in revenue… and Adjusted EBITDA of $93.6 million… Free Cash Flow growing 124% year‑over‑year to $73.6 million… finished Q3 with… $170.3 million in cash and… no balance outstanding on our revolver” .
CEO on synergies: “I am personally committing today that we will deliver more than $300 million in net cost synergies… $150 million… in the first year post‑close” .

Q&A Highlights

Incremental $50–$75M EBITDA initiative: Embedded in lowered OPEX run‑rate and flows into 2026 baseline; at least $50M realized in 2026 remains on track .
Christie's ancillary uplift: ~1000 bps title attach increase from aligning agents, integrating offices/tech, and shared incentives—blueprint for Anywhere integration .
Agent recruiting: Raised gross add “new normal” to 700–800 per quarter, driven by platform/AI vision and brand momentum .
Organic growth drivers: Q3 strength centered in September; inorganic growth driven primarily by Christie's .
OPEX/legal cadence: Non‑merger legal costs included in OPEX and may continue into 2026; firm‑wide efficiency programs (offshoring, Six Sigma, AI) continue .

Estimates Context

Revenue beat: $1.846B actual vs $1.790B* consensus for Q3 2025. Values retrieved from S&P Global.
EPS beat: Primary EPS +$0.11* vs −$0.02* consensus; note company reports GAAP diluted EPS of $(0.01) in Q3, whereas S&P’s “Primary EPS” is a normalized measure and may differ from GAAP . Values retrieved from S&P Global.
EBITDA definitions: S&P Global EBITDA actual $31.7M* vs consensus $69.4M* contrasts with company’s Adjusted EBITDA $93.6M (non‑GAAP) . The company excludes SBC, merger and other items in Adjusted EBITDA; this definitional gap explains the apparent divergence. Values retrieved from S&P Global.

Key Takeaways for Investors

Strong print with clean top‑line and cash flow: revenue at the high end, Adjusted EBITDA above guide, and record Q3 FCF—all while gaining share and growing agents .
Guidance conservative on Q4 earnings power: seasonally lower Q4 revenue and Adjusted EBITDA, but ongoing OPEX reductions support 2026 profitability trajectory .
Accretive ancillary flywheel: T&E and mortgage JV profitability improving; Christie's integration suggests upside from ancillary attach at scale post‑Anywhere .
Synergy catalyst: CEO’s >$300M net synergy commitment raises medium‑term FCF and deleveraging potential post‑close; tuck‑ins paused to focus on integration .
AI as a competitive moat: Near‑term launch of Compass AI 2.0 and platform adoption may enhance agent productivity and retention; management cites emergent AI‑driven lead flows to experienced agents .
Watch items: Continued SBC and merger/integration costs weighing on GAAP EPS; legal expense overhang may extend into 2026 .
Trading setup: Revenue and EPS beats vs consensus*, synergy raise, and FY OPEX cut are positive catalysts; investors should monitor regulatory progress on the Anywhere merger and Q4 execution amid seasonality. Values retrieved from S&P Global.

Citations

Q3 2025 press release and financials:
Q3 2025 Form 8‑K & exhibits:
Q3 2025 earnings call transcript:
Q2 2025 press release:
Q1 2025 press release:
Anywhere merger press release (Q3 2025 relevant):
S&P Global estimates (consensus/actuals for Q3 2025): Revenue, EPS, EBITDA, targets, and counts retrieved via GetEstimates*. Values retrieved from S&P Global.

Footnote on S&P Global data: Asterisked values in the “Actual vs Consensus” table and estimate comparisons reflect S&P Global metrics and may differ from company‑reported non‑GAAP definitions. Values retrieved from S&P Global.

Compass, Inc. (COMP)·Q3 2025 Earnings Summary