Compass (COMP)
NYSE:COMP
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Compass
(NYSE:COMP)
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Rating:56Neutral
Price Target:
$8.50
▲(4.42% Upside)
Action:ReiteratedDate:03/31/26
The score is driven primarily by improving financial performance (stronger growth and consistently positive free cash flow) and a generally positive earnings-call backdrop around synergies and partnerships. These are tempered by a clearly bearish technical setup and limited valuation support due to ongoing losses and no dividend.
Positive Factors
Free Cash Flow Strength
Compass has converted improving operating results into durable cash generation, reporting materially positive operating and free cash flow in 2025. Persistent FCF supports liquidity, funds organic initiatives, funds integration costs, and reduces reliance on external financing over a multi-quarter horizon.
Negative Factors
Persistent Net Losses
Despite revenue and cash improvements, the company still reports GAAP net losses and negative operating margins. Persistent losses constrain return on equity and indicate that scale gains have not fully translated into consistent profitability, posing ongoing pressure on capital efficiency.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Compass has converted improving operating results into durable cash generation, reporting materially positive operating and free cash flow in 2025. Persistent FCF supports liquidity, funds organic initiatives, funds integration costs, and reduces reliance on external financing over a multi-quarter horizon.
Read all positive factors
Compass (COMP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.69B
Dividend YieldN/A
Average Volume (3M)14.49M
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth23.67%
EPS Growth66.54%
CountryUS
Employees2,566
SectorReal Estate
Sector Strength53
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.07
Shares Outstanding736,022,950
10 Day Avg. Volume16,061,657
30 Day Avg. Volume14,489,463
Financial Highlights & Ratios
PEG Ratio1.53
Price to Book (P/B)7.73
Price to Sales (P/S)0.87
P/FCF Ratio29.74
Enterprise Value/Market Cap0.80
Enterprise Value/Revenue0.65
Enterprise Value/Gross Profit3.97
Enterprise Value/Ebitda80.46
Forecast
1Y Price Target
$12.80Price Target Upside57.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)0.18
Revenue Forecast (FY)$13.69B
Compass Business Overview & Revenue Model
Company Description
Compass, Inc. provides real estate brokerage services in the United States. It operates a cloud-based platform that provides an integrated suite of software for customer relationship management, marketing, client service, operations, and other fun...
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 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 Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operational and financial accomplishments (record Q4 and 2025 revenue, adjusted EBITDA, GTV growth, platform engagement, rapid synergy execution, and a strategic Rocket–Redfin partnership expected to drive lead growth and unique inventory exposure). Near-term headwinds include acquisition-related accounting impacts (LTIP, healthcare, rent), elevated transaction and integration costs that will depress Q1 cash flow, and higher leverage from assumed debt. However, management demonstrated clear execution (early synergies actioned, AI efficiency identification, convertible financing at a low coupon) and provided constructive guidance and timeline for realizing synergies and SBC normalization. On balance, the positive results, strategic partnership, and sizable, early synergy execution materially outweigh the near-term transaction-driven challenges.Positive Updates
Record Q4 Revenue and EBITDA
Q4 revenue reached $1.7 billion, up 23% year-over-year, and adjusted EBITDA was $58.3 million (a 249% increase YoY), both above the high end of guidance and representing Q4 records.
Negative Updates
Near-Term GAAP Losses and Transaction Costs
GAAP net loss was $42.6 million in Q4 (although excluding $10.6 million of deal-related expenses GAAP loss would have been $32 million); Q1 2026 will show materially negative free cash flow due to transaction costs, bonuses and LTIP payouts tied to the Anywhere deal.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Q4 Revenue and EBITDA
Q4 revenue reached $1.7 billion, up 23% year-over-year, and adjusted EBITDA was $58.3 million (a 249% increase YoY), both above the high end of guidance and representing Q4 records.
Read all positive updates
Company Guidance
For Q1 2026 the company guided consolidated revenue of $2.55–$2.75 billion and consolidated adjusted EBITDA of $15–$35 million (or roughly $32.5–$47.5 million after adjusting out incremental Anywhere items), with a weighted average diluted share count of about 720–730 million; management warned Q1 will be seasonally light and weather-impacted (NAR Jan existing home sales 3.9M, down 4.4%; MBA mortgage purchase apps down ~14% late Jan/early Feb) and expects materially negative free cash flow in Q1 before returning to positive in subsequent quarters (historical EBITDA→FCF conversion ~70–80% before interest). They reported $199M cash at year-end (Anywhere $139M), closed $1.0B of convertible notes at a 0.25% coupon (net proceeds ~$880M, conversion price $15.98, capped call to $23.68) and now carry $3.15B of long-term debt; management has actioned ~$175M of cost synergies in ~7 weeks, committed to $250M of actioned synergies in year one and $400M net over three years, and modeled ~ $5M of synergy realization in Q1, ~$44M in Q4 (≈$100M realized in 2026) with roughly half expected to reduce CapEx (Anywhere historically capitalized ≈$80M in 2025). They also highlighted Q1 incremental headwinds of $15–$20M (LTIP mark-to-market, higher healthcare baseline and a $4–$5M per-quarter GAAP rent increase, ~$16–$20M annualized) and said stock‑based compensation should not exceed $50M per quarter beginning Q2 2026.Compass Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.96B | 5.63B | 4.88B | 6.02B | 6.42B |
| Gross Profit | 738.70M | 994.50M | 878.00M | 1.08B | 1.11B |
| EBITDA | 61.90M | -65.60M | -216.40M | -500.30M | -428.50M |
| Net Income | -58.50M | -154.40M | -321.30M | -601.50M | -494.10M |
Balance Sheet | |||||
| Total Assets | 1.54B | 1.18B | 1.16B | 1.53B | 1.80B |
| Cash, Cash Equivalents and Short-Term Investments | 199.00M | 223.80M | 166.90M | 361.90M | 618.30M |
| Total Debt | 453.50M | 497.60M | 533.90M | 763.00M | 580.70M |
| Total Liabilities | 752.20M | 765.60M | 728.30M | 1.01B | 953.00M |
| Stockholders Equity | 782.00M | 409.40M | 428.70M | 517.10M | 843.80M |
Cash Flow | |||||
| Free Cash Flow | 203.30M | 105.80M | -37.10M | -362.40M | -78.70M |
| Operating Cash Flow | 216.70M | 121.50M | -25.90M | -292.30M | -28.60M |
| Investing Cash Flow | -191.30M | -36.60M | -11.70M | -100.10M | -192.50M |
| Financing Cash Flow | -50.20M | -28.00M | -157.40M | 136.00M | 399.30M |
Compass Technical Analysis
Neutral
8.14
Price Trends
8.83
Negative
10.13
Negative
9.12
Negative
Market Momentum
-0.38
Negative
54.38
Neutral
83.05
Negative
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 8.14 is above the 20-day moving average (MA) of 7.38, below the 50-day MA of 8.83, and below the 200-day MA of 9.12, indicating a neutral trend. The MACD of -0.38 indicates Negative momentum. The RSI at 54.38 is Neutral, neither overbought nor oversold. The STOCH value of 83.05 is Negative, 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.13B | 27.21 | 77.38% | 2.11% | 16.91% | -36.34% | |
69 Neutral | $4.35B | -143.66 | -4.43% | ― | 29.72% | 63.53% | |
68 Neutral | $3.28B | 86.24 | 8.62% | ― | 14.12% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $3.69B | -533.32 | -0.63% | ― | 11.84% | -130.23% | |
62 Neutral | $5.61B | -101.06 | -8.52% | ― | 24.12% | 1.32% | |
56 Neutral | $5.69B | -103.35 | -8.04% | ― | 23.67% | 66.54% |
* Real Estate Sector Average
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Compass
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Compass Corporate Events
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 ...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Compass Reports Record 2025 Results and Cash Flow
Positive
Feb 26, 2026
On February 26, 2026, Compass reported record results for the fourth quarter and full year 2025, highlighted by Q4 revenue of $1.70 billion, up 23.1% year over year, and full-year revenue of $7.0 billion, along with record full-year operating cash...
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.