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Compass
(NYSE:COMP)
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Rating:52Neutral
Price Target:
$13.00
▲(59.71% Upside)
Action:Reiterated
Date:06/25/26
The score is held back primarily by pressured fundamentals (higher leverage and a TTM step-down in cash-flow strength) despite strong revenue momentum. Technicals are supportive with a clear uptrend, but overbought signals add near-term risk. Valuation is a notable negative due to the very high P/E, while the earnings call was broadly constructive on synergies and EBITDA outlook but tempered by integration costs and near-term cash-flow drag.
Positive Factors
Revenue growth & improving profitability
Sustained revenue growth (TTM +19.36%) with EBITDA positivity and a move to slight GAAP profitability indicate the business is scaling. This durable top-line momentum supports investment in product, agent acquisition and margin expansion as fixed costs spread over higher volume.
Negative Factors
Elevated leverage and balance-sheet risk
Substantially higher debt increases interest and refinancing risk and reduces financial flexibility. In a cyclical housing environment, elevated leverage constrains the company's ability to sustain investments, absorb shocks, and accelerate deleveraging without selling assets or cutting growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth & improving profitability
Sustained revenue growth (TTM +19.36%) with EBITDA positivity and a move to slight GAAP profitability indicate the business is scaling. This durable top-line momentum supports investment in product, agent acquisition and margin expansion as fixed costs spread over higher volume.
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
$9.84B
Dividend YieldN/A
Average Volume (3M)14.75M
Price to Earnings (P/E)682.8
Beta (1Y)1.33
Revenue Growth40.10%
EPS GrowthN/A
CountryUS
Employees2,566
SectorReal Estate
Sector Strength53
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.02
Shares Outstanding747,153,000
10 Day Avg. Volume18,387,055
30 Day Avg. Volume14,747,713
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 Cap0.95
Enterprise Value/Revenue1.12
Enterprise Value/Gross Profit5.85
Enterprise Value/Ebitda-89.72
Forecast
1Y Price Target
$12.89Price Target Upside58.34% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.15
Revenue Forecast (FY)$13.94B
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 generates revenue from residential real estate brokerage commissions earned when its agents successfully close home purchase and sale transactions. In these transactions, the home seller typically pays a commission that is shared...
Compass Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 10, 2026
Earnings Call Sentiment Positive
The call communicated strong operational and financial momentum from the Anywhere acquisition: pro forma revenue growth (+7% YoY), record Q1 adjusted EBITDA ($61M, +280% YoY), accelerated and increased cost-synergy targets with >$250M already actioned, robust franchise and integrated services growth, and productive strategic partnerships (Rocket/Redfin). At the same time, Q1 results reflect meaningful one-time and integration-related costs (transaction/integration expenses of $183M, elevated OpEx and noncash D&A), negative free cash flow in the quarter (–$168M), and several nonrecurring accounting benefits (e.g., $401M deferred tax benefit) that temper GAAP comparability. Management provided constructive forward guidance (Q2 revenue $4.0B–$4.2B, adjusted EBITDA $310M–$350M), expects FCF positivity in H2 and prioritized deleveraging, but execution risk remains around synergy realization timing, legal/settlement cash outflows, and integration complexity. Overall the positives—accelerated synergies, revenue and EBITDA beats, and strategic partnerships—outweigh the near-term integration and cash-flow headwinds.Positive Updates
Raised Cost Synergy Targets and Fast Early Realization
Increased year-1 cost synergy target from $250M to $300M and 3-year net cost synergy target from $400M to $500M (expected $420M P&L, $80M CapEx). Over $250M of cost synergies actioned as of April 1 (82 days post-close). 2026 in-year realized cost synergies guidance increased from ~$100M to ~$200M (now expecting ~$130M P&L/OpEx and ~$70M CapEx).
Negative Updates
High Transaction & Integration Costs in Q1
Incurred $183M of transaction and integration expenses in Q1 (includes $61M of stock-based compensation tied to Anywhere exec severance). Q1 non-GAAP operating expenses rose to $641M from $236M a year ago (increase driven by Anywhere operating expenses).
Read all updates
Q1-2026 Updates
Positive
Negative
Raised Cost Synergy Targets and Fast Early Realization
Increased year-1 cost synergy target from $250M to $300M and 3-year net cost synergy target from $400M to $500M (expected $420M P&L, $80M CapEx). Over $250M of cost synergies actioned as of April 1 (82 days post-close). 2026 in-year realized cost synergies guidance increased from ~$100M to ~$200M (now expecting ~$130M P&L/OpEx and ~$70M CapEx).
Read all positive updates
Company Guidance
Management guided Q2 consolidated revenue of $4.0–$4.2 billion and consolidated adjusted EBITDA of $310–$350 million, with a Q2 weighted average share count of 755–760 million; for the full year they expect non‑GAAP operating expenses of $2.7–$2.75 billion (including 3–4% OpEx inflation and roughly $130 million of P&L synergies). They reiterated updated cost‑synergy targets of $300 million actioned by the end of year 1 and $500 million net over 3 years (approximately $420M P&L / $80M CapEx), noted they have actioned >$250 million as of April 1, and raised 2026 in‑year realized synergies from ~ $100M to ~$200M (about $130M P&L and $70M CapEx) with roughly $10M of P&L synergies realized in Q1. They reported Q1 free cash flow was negative $168 million but expect to be free‑cash‑flow positive for the balance of the year (Q2 may be near breakeven or slightly negative with strong FCF expected in Q3–Q4), ended Q1 with $484 million cash and no revolver borrowings, and presented scenario analyses showing adjusted EBITDA / unlevered free cash flow of roughly $1.0B / $750M at 4.1M home sales; $1.5B / $1.0B at 4.8M; $2.0B / $1.5B at 5.5M; and $2.5B / ~$2.0B at 6.0M.Compass Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
36
Negative
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.31B | 6.96B | 5.63B | 4.88B | 6.02B | 6.42B |
| Gross Profit | 1.59B | 738.70M | 994.50M | 878.00M | 1.08B | 1.11B |
| EBITDA | -103.70M | 61.90M | -65.60M | -216.40M | -500.30M | -428.50M |
| Net Income | 14.20M | -58.50M | -154.40M | -321.30M | -601.50M | -494.10M |
Balance Sheet | ||||||
| Total Assets | 8.12B | 1.54B | 1.18B | 1.16B | 1.53B | 1.80B |
| Cash, Cash Equivalents and Short-Term Investments | 484.00M | 199.00M | 223.80M | 166.90M | 361.90M | 618.30M |
| Total Debt | 4.07B | 476.20M | 497.60M | 533.90M | 763.00M | 580.70M |
| Total Liabilities | 5.29B | 752.20M | 765.60M | 728.30M | 1.01B | 953.00M |
| Stockholders Equity | 2.82B | 782.00M | 409.40M | 428.70M | 517.10M | 843.80M |
Cash Flow | ||||||
| Free Cash Flow | 15.80M | 203.30M | 105.80M | -37.10M | -362.40M | -78.70M |
| Operating Cash Flow | 36.60M | 216.70M | 121.50M | -25.90M | -292.30M | -28.60M |
| Investing Cash Flow | -385.60M | -191.30M | -36.60M | -11.70M | -100.10M | -192.50M |
| Financing Cash Flow | 706.00M | -50.20M | -28.00M | -157.40M | 136.00M | 399.30M |
Compass Technical Analysis
Positive
8.14
Price Trends
8.97
Positive
8.72
Positive
9.33
Positive
Market Momentum
1.12
Negative
65.83
Neutral
83.16
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COMP, the sentiment is Positive. The current price of 8.14 is below the 20-day moving average (MA) of 10.29, below the 50-day MA of 8.97, and below the 200-day MA of 9.33, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 65.83 is Neutral, neither overbought nor oversold. The STOCH value of 83.16 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $7.58B | 44.02 | 77.45% | 2.11% | 17.39% | -31.63% | |
74 Outperform | $11.88B | -181.92 | -7.04% | ― | 25.04% | 25.92% | |
73 Outperform | $5.16B | ― | -3.04% | ― | 33.60% | 63.13% | |
72 Outperform | $3.34B | 45.34 | 11.91% | ― | 14.00% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | $4.01B | -12,327.27 | <0.01% | ― | 12.47% | -98.50% | |
52 Neutral | $9.84B | 682.76 | 1.11% | ― | 40.10% | ― |
* Real Estate Sector Average
COMP
Compass
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5.59
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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...
Business Operations and StrategyRegulatory Filings and Compliance
Compass Restructures Franchise Platform with New Equity Agreement
Neutral
Apr 17, 2026
On April 15, 2026, Compass, Inc. entered into a multi-party transaction to restructure the financial obligations of the predecessor to a company that will indirectly own certain franchisees operating under the Sotheby’s International Realty ...
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.