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Compass
(NYSE:COMP)
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Rating:54Neutral
Price Target:
$12.00
▲(8.40% Upside)
Action:Reiterated
Date:08/05/26
Overall score reflects a company improving operationally and in cash generation, but still constrained by weak profitability and higher balance-sheet risk. Positive earnings-call momentum (record adjusted EBITDA, strong free cash flow, and improving leverage outlook) and constructive technicals are partially offset by very expensive headline valuation (P/E 654.6) and ongoing margin/earnings pressure highlighted in the financial statement scores.
Positive Factors
Sustained Revenue Growth
Compass has delivered durable top-line expansion (TTM revenue +27%), supported by GTV growth and brokerage outperformance. Persistent revenue gains indicate expanding market share and higher agent productivity, underpinning long-term scale benefits and optionality to convert growth into margin over time.
Negative Factors
Weak Profitability and Compressed Margins
Compass still reports materially negative net margins and a sharp gross margin compression versus prior years. Persistent margin weakness suggests structural cost or commission pressures and means revenue growth must be sustained and converted to much higher operating efficiency before GAAP profitability and return metrics normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth
Compass has delivered durable top-line expansion (TTM revenue +27%), supported by GTV growth and brokerage outperformance. Persistent revenue gains indicate expanding market share and higher agent productivity, underpinning long-term scale benefits and optionality to convert growth into margin over time.
Read all positive factors
Compass Key Performance Indicators (KPIs)
Any
Total Transactions
Represents overall deal flow handled by Compass in a given period. Strong or improving transaction volumes point to healthy demand and platform adoption, while drops often precede lower revenues and can reflect market seasonality, pricing pressure, or competitive losses.
Represents overall deal flow handled by Compass in a given period. Strong or improving transaction volumes point to healthy demand and platform adoption, while drops often precede lower revenues and can reflect market seasonality, pricing pressure, or competitive losses.
Data provided by:
The Fly
The FlyCompass (COMP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.02B
Dividend YieldN/A
Average Volume (3M)14.51M
Price to Earnings (P/E)109.4
Beta (1Y)1.39
Revenue Growth67.81%
EPS GrowthN/A
CountryUS
Employees3,200
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.11
Shares Outstanding757,522,200
10 Day Avg. Volume11,557,934
30 Day Avg. Volume14,505,491
Financial Highlights & Ratios
PEG Ratio1.56
Price to Book (P/B)7.73
Price to Sales (P/S)0.87
P/FCF Ratio29.74
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$15.27Price Target Upside37.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)0.19
Revenue Forecast (FY)$14.41B
Compass Business Overview & Revenue Model
Company Description
Headquartered in New York, New York, and established in 2012, Compass, Inc. delivers real estate brokerage services throughout the United States. The company's core offering is a sophisticated, cloud-based platform that integrates a comprehensive ...
How the Company Makes Money
Compass primarily makes money through commissions earned on residential real estate transactions completed by its agents. When an agent at Compass represents a buyer or seller in a home sale, Compass receives a share of the commission and pays the...
Compass Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operating and financial update: record revenue and adjusted EBITDA, meaningful cash generation and rapid progress on cost synergies, strong outperformance versus the housing market (notably in luxury and the Bay Area), accelerating technology and AI adoption, and early benefits from the Rocket-Redfin partnership. Headwinds are manageable and mostly execution/timing-related — lower gross agent adds as the company trades for higher productivity, commission mix pressure (43 bps), a modest increase in full-year OpEx guidance, Q3 guidance that is seasonally lower than Q2, and debt call provisions that limit immediate gross-debt paydown. Overall, the highlights materially outweigh the lowlights given the size of the record metrics, cash flow improvement, and accelerated synergy realization.Positive Updates
Record Revenue and Adjusted EBITDA
Q2 revenue of $4.3 billion, up ~14% year-over-year (pro forma). Record adjusted EBITDA of $363 million (highest second-quarter on record and more than any full year previously).
Negative Updates
Decline in Gross Agent Adds
Gross agent adds fell to 2,816 in Q2 from 3,503 in Q1 (down ~20%), reflecting a deliberate shift toward recruiting more productive agents following the Anywhere acquisition.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenue and Adjusted EBITDA
Q2 revenue of $4.3 billion, up ~14% year-over-year (pro forma). Record adjusted EBITDA of $363 million (highest second-quarter on record and more than any full year previously).
Read all positive updates
Company Guidance
Management guided Q3 2026 consolidated revenue of $3.85–$4.05 billion and consolidated adjusted EBITDA of $275–$305 million, with basic weighted‑average shares of 767–769 million and positive free cash flow expected in Q3; full‑year non‑GAAP operating expenses were raised to $2.75–$2.80 billion (an increase of $50 million vs. last quarter, including ~$35 million of OpEx from a July brokerage acquisition). They reiterated a plan to leave gross debt largely unchanged through Q1 2027 because of call protections (no‑call/ call‑premium provisions through April 2027), while building cash (cash of $694 million as of 6/30 and Q2 free cash flow of $180 million) to lower net leverage (net debt $2.45 billion at 6/30; using ~2026 consensus adjusted EBITDA of ~$850 million implies net debt/EBITDA just under 3x and management expects it to move into the 2s by year‑end); they also highlighted $1.8 billion of NOLs (~26% combined tax rate, ~ $470 million potential tax shield) and reiterated scenario outputs (at 4.1M home sales: ~$1.0B adj. EBITDA / $750M unlevered FCF; 4.8M: ~$1.5B / $1.0B; 5.5M: ~$2.0B / $1.5B; 6.0M: ~$2.5B / ~$2.0B).Compass Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
27
Negative
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.56B | 6.96B | 5.63B | 4.88B | 6.02B | 6.42B |
| Gross Profit | 1.34B | 738.70M | 994.50M | 878.00M | 1.08B | 1.11B |
| EBITDA | 107.40M | 61.90M | -65.60M | -216.40M | -500.30M | -428.50M |
| Net Income | 66.80M | -58.50M | -154.40M | -321.30M | -601.50M | -494.10M |
Balance Sheet | ||||||
| Total Assets | 8.33B | 1.54B | 1.18B | 1.16B | 1.53B | 1.80B |
| Cash, Cash Equivalents and Short-Term Investments | 694.00M | 199.00M | 223.80M | 166.90M | 361.90M | 618.30M |
| Total Debt | 4.11B | 476.20M | 497.60M | 533.90M | 763.00M | 580.70M |
| Total Liabilities | 5.34B | 752.20M | 765.60M | 728.30M | 1.01B | 953.00M |
| Stockholders Equity | 2.98B | 782.00M | 409.40M | 428.70M | 517.10M | 843.80M |
Cash Flow | ||||||
| Free Cash Flow | 127.80M | 203.30M | 105.80M | -37.10M | -362.40M | -78.70M |
| Operating Cash Flow | 154.80M | 216.70M | 121.50M | -25.90M | -292.30M | -28.60M |
| Investing Cash Flow | -378.20M | -191.30M | -36.60M | -11.70M | -100.10M | -192.50M |
| Financing Cash Flow | 741.10M | -50.20M | -28.00M | -157.40M | 136.00M | 399.30M |
Compass Technical Analysis
Neutral
11.07
Price Trends
11.57
Positive
9.70
Positive
10.04
Positive
Market Momentum
0.24
Positive
46.72
Neutral
20.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COMP, the sentiment is Neutral. The current price of 11.07 is below the 20-day moving average (MA) of 12.26, below the 50-day MA of 11.57, and above the 200-day MA of 10.04, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 46.72 is Neutral, neither overbought nor oversold. The STOCH value of 20.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for COMP.
Compass Risk Analysis
Compass disclosed 60 risk factors in its most recent earnings report. Compass reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 2 New Risks
1.
We have integrated, and may continue to integrate in the future, machine learning and AI in certain tools and features available on our platform. Machine learning and AI technology present various operational, compliance and reputational risks and if any such risks were to materialize, our business and results of operations may be adversely affected. Q3, 2023
2.
Ongoing antitrust regulatory and/or private plaintiff litigation activities, including the Antitrust Lawsuits, could result in meaningful industry-wide changes and could have a direct or indirect materially adverse affect on our business, financial condition, and results of operations. Q3, 2023
Compass Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.99B | 43.18 | 14.49% | ― | 13.90% | 1906.95% | |
77 Outperform | $7.30B | -3,303.41 | -0.26% | ― | 35.91% | 94.31% | |
73 Outperform | $5.86B | 28.67 | 82.40% | 1.44% | 19.77% | -19.22% | |
68 Neutral | $11.36B | -249.81 | -4.85% | ― | 26.37% | 51.51% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | $4.08B | -434.73 | -0.30% | ― | 13.03% | -150.40% | |
54 Neutral | $9.02B | 109.40 | 3.63% | ― | 67.81% | ― |
* Real Estate Sector Average
COMP
Compass
11.75
2.22
23.29%
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Compass Corporate Events
Executive/Board ChangesShareholder Meetings
Compass Stockholders Approve Directors, Auditor and Pay
Positive
May 15, 2026
On May 14, 2026, Compass, Inc. held its annual meeting of stockholders, where investors voted on the election of three Class II directors, the ratification of the independent auditor, and an advisory say-on-pay resolution. Each share of Class A co...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.