Compass (COMP) Reports Record Q3 2025 Results

By Philip Seaworth • Tuesday, November 04 10:32 • Permanent Link

Compass, Inc. has reported its record third-quarter 2025 results, demonstrating strong financial and operational performance. The company's revenue grew by 23.6% year-over-year to $1.85 billion, reaching the high end of its revenue guidance. Additionally, the number of gross principal agents reached an all-time high with 851 agents joining in the third quarter.

The company's operating cash flow surged by 102% year-over-year, reaching $75.5 million. Moreover, Compass achieved multiple quarterly records, including adjusted EBITDA, adjusted EBITDA margin, free cash flow, T&E attach, mortgage JV profitability, and weekly agent sessions on the platform.

In terms of market performance, Compass outperformed the industry by growing organic transactions by 7% and total transactions by 22%, while market transactions only increased by 2% year-over-year. This marks the 18th consecutive quarter in which Compass has outperformed the market on an organic basis. Organic quarterly market share grew by 32 basis points year-over-year, reaching 5.63%.

The company's financial highlights for Q3 2025 include a notable increase in adjusted EBITDA, which reached $93.6 million, up 80% from the year-ago quarter. Despite a challenging housing market, Compass achieved a substantial growth in free cash flow, which increased by 124% year-over-year to $73.6 million.

Compass's proprietary technology platform continued to demonstrate its value, with an average of 22 weekly sessions per agent during Q3 2025. The platform's features, such as Compass Make-Me-Sell, Compass One-Click Title & Escrow integration, Compass One, and the Buyer Demand Tool, have contributed to enhancing its capabilities and driving agent engagement.

Looking ahead, Compass provided its outlook for Q4 2025, expecting revenue in the range of $1.590 billion to $1.690 billion and adjusted EBITDA of $35 million to $49 million. The updated full-year 2025 outlook includes a reduction in non-GAAP opex to $1.000 billion to $1.005 billion, reflecting a decrease from the prior range.

Compass's strong financial and operational performance in the third quarter of 2025 positions the company for continued growth and market leadership in the residential real estate brokerage industry. Today the company's shares have moved 0.91% to a price of $7.78. If you want to know more, read the company's complete 8-K report here.

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