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NEW YORK - Compass , Inc. (NYSE:COMP) shares gained 2.2% after the largest U.S. residential real estate brokerage reported record second-quarter revenue that exceeded analyst expectations, despite a slight earnings miss.
The company posted revenue of $2.06 billion for the quarter ended June 30, 2025, beating the consensus estimate of $2.05 billion and representing a 21.1% increase YoY. Compass reported adjusted EPS of $0.07, slightly below analysts’ expectations of $0.08. GAAP net income surged 90.3% YoY to a record $39.4 million, while adjusted EBITDA grew 63% to $125.9 million. The company’s market share expanded by 96 basis points YoY to a record 6.09%.
"Compass delivered the best quarterly results in our history, marked by ten all-time highs," said Robert Reffkin, Founder and Chief Executive Officer of Compass. "A record 832 principal agents also joined Compass organically in Q2, making it the highest quarter for principal agent adds in our history."
The company significantly outperformed the broader real estate market, with total transactions increasing 20.9% YoY compared to the overall market’s 0.9% decline. Compass generated record operating cash flow of $72.8 million and free cash flow of $68 million during the quarter.
For the third quarter, Compass forecasts revenue between $1.725 billion and $1.85 billion, compared to the consensus estimate of $1.786 billion, and adjusted EBITDA between $60 million and $80 million. The company also reduced its full-year 2025 non-GAAP operating expense outlook to $1.01-1.02 billion from the previous range of $1.017-1.042 billion.
Chief Financial Officer Kalani Reelitz noted, "In the quarter, we grew revenue by 21.1%, Adjusted EBITDA by 63%, and GAAP net income by 90.3% year-over-year. Furthermore, in Q2 2025, we also generated record positive operating cash flow of $72.8 million and free cash flow of $68 million."
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