Compass (COMP) AI Stock Analysis

• Market Cap: $5.02B
• Dividend Yield: N/A
• Average Volume (3M): 12.64M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.35
• Revenue Growth: 24.27%
• EPS Growth: 73.11%
• Country: US
• Employees: 2,566
• Sector: Real Estate
• Sector Strength: 53
• Industry: Software - Application
• EPS (TTM): -0.01
• Shares Outstanding: 561,061,460
• 10 Day Avg. Volume: 12,485,634
• 30 Day Avg. Volume: 12,639,933
• PEG Ratio: 0.35
• Price to Book (P/B): 7.17
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 27.73
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 93.28
• 1Y Price Target: $10.33
• Price Target Upside: 9.54% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $8.50 ▼(-9.86% Downside)

Compass's overall stock score is driven by moderate financial performance and technical indicators showing short-term bullish momentum. However, the negative P/E ratio and lack of dividend yield weigh heavily on the valuation. The earnings call provided positive insights into growth and strategic initiatives, but concerns about rising expenses and legal costs remain.

Positive Factors

Revenue Growth

Consistent revenue growth and record financial performance indicate strong market demand and effective business strategies, supporting long-term expansion.

Market Share Growth

Increasing market share demonstrates Compass's competitive edge and ability to capture more of the market, which is crucial for sustained growth.

Agent Recruiting Success

Strong agent recruitment and retention enhance Compass's operational capacity and service quality, driving future revenue and market presence.

Negative Factors

Profitability Challenges

Ongoing profitability issues can hinder long-term financial health and limit reinvestment opportunities, affecting growth and shareholder returns.

Housing Market Challenges

A challenging housing market can constrain transaction volumes and pricing power, impacting Compass's revenue and growth potential.

CFO Transition

Leadership changes, especially in financial roles, can disrupt strategic execution and create uncertainty in financial planning and stability.

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 functionality, as well as brokerage and adjacent services in the real estate industry. The company offers mobile apps that allow agents to manage their business anywhere as well as designs consumer-grade interfaces, an automated workflows for agent-client interactions. The company was formerly known as Urban Compass, Inc. and changed its name to Compass, Inc. in January 2021.Compass, Inc. was founded in 2012 and is headquartered in New York, New York.

How the Company Makes Money

Compass generates revenue primarily through commissions earned on real estate transactions facilitated by its agents. Typically, the company takes a percentage of the commission paid by sellers to agents, which can vary based on the market and specific agreements. Additionally, Compass provides premium tools and services to its agents, which may include marketing support, technology platforms, and training resources, for which agents may pay fees or commission splits. The company also engages in strategic partnerships with various tech firms and real estate platforms to enhance its service offerings and expand its market reach, contributing further to its revenue streams.

Compass Financial Statement Overview

Summary

Compass shows moderate revenue growth and improved cash flow generation, but profitability remains a concern with negative margins. The balance sheet shows improved leverage, yet profitability metrics like ROE are negative. Overall, the company is on a path of gradual improvement but faces challenges in achieving consistent profitability.

Income Statement

Compass shows a modest revenue growth of 5.6% in the TTM, indicating a positive trend. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin is relatively low at 16.6%, suggesting challenges in cost management.

Balance Sheet

The debt-to-equity ratio has improved to 0.65 in the TTM, reflecting better leverage management compared to previous years. However, the negative return on equity indicates ongoing profitability issues. The equity ratio is not provided, but the overall balance sheet shows moderate stability.

Cash Flow

The company has achieved a significant free cash flow growth of 27.8% in the TTM, which is a positive sign. The operating cash flow to net income ratio is healthy at 0.35, and the free cash flow to net income ratio is strong at 0.90, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.64B	5.63B	4.88B	6.02B	6.42B	3.72B
Gross Profit	1.07B	994.50M	878.00M	1.08B	1.11B	663.90M
EBITDA	52.10M	-65.60M	-216.40M	-500.30M	-428.50M	-220.10M
Net Income	-56.40M	-154.40M	-321.30M	-601.50M	-494.10M	-270.20M
Balance Sheet
Total Assets	1.55B	1.18B	1.16B	1.53B	1.80B	1.37B
Cash, Cash Equivalents and Short-Term Investments	170.30M	223.80M	166.90M	361.90M	618.30M	440.10M
Total Debt	481.00M	497.60M	533.90M	763.00M	580.70M	512.40M
Total Liabilities	775.10M	765.60M	728.30M	1.01B	953.00M	2.23B
Stockholders Equity	773.30M	409.40M	428.70M	517.10M	843.80M	-862.90M
Cash Flow
Free Cash Flow	187.80M	105.80M	-37.10M	-362.40M	-78.70M	-101.40M
Operating Cash Flow	201.90M	121.50M	-25.90M	-292.30M	-28.60M	-58.10M
Investing Cash Flow	-195.60M	-36.60M	-11.70M	-100.10M	-192.50M	-13.40M
Financing Cash Flow	-47.20M	-28.00M	-157.40M	136.00M	399.30M	19.90M

Compass Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 9.43 is above the 20-day moving average (MA) of 7.96, above the 50-day MA of 8.22, and above the 200-day MA of 7.76, indicating a bullish trend. The MACD of 0.27 indicates Negative momentum. The RSI at 71.33 is Negative, neither overbought nor oversold. The STOCH value of 91.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COMP.

Compass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YOU	79 Outperform	$4.80B	19.18	130.93%	2.40%	17.83%	118.70%
FROG	71 Outperform	$7.61B	-91.65	-9.88%	―	22.69%	-32.47%
QTWO	70 Outperform	$4.58B	151.55	5.68%	―	13.93%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
BILL	61 Neutral	$4.73B	-170.90	0.30%	―	11.63%	50.72%
ZETA	61 Neutral	$4.69B	―	-3.92%	―	35.87%	85.20%
COMP	56 Neutral	$5.02B	-83.53	-9.39%	―	24.27%	73.11%

Compass Corporate Events

Compass Inc. Reports Record Q3 2025 Results

Compass Inc., the largest residential real estate brokerage in the United States, is a tech-enabled real estate services company that provides a comprehensive platform for real estate agents to manage their business operations efficiently. The company has reported its strongest third-quarter results in history, with significant growth in revenue and operational metrics. Compass Inc. achieved a 23.6% year-over-year increase in revenue, reaching $1.85 billion, and a remarkable 102% growth in operating cash flow. The company also saw an all-time high in agent recruitment, with 851 new principal agents joining organically, and maintained a high retention rate of 97.3%. The company reported an adjusted EBITDA of $93.6 million, marking an 80% increase from the previous year, and free cash flow grew by 124% to $73.6 million. Despite a challenging housing market, Compass Inc. continues to outperform industry trends, with organic transactions growing by 7% and total transactions by 22%, significantly outpacing the market’s 2% growth. Looking ahead, Compass Inc. remains optimistic about its future performance, with expectations of continued revenue growth and positive free cash flow for the full year 2025.

Compass Announces $10 Billion Merger with Anywhere

On September 22, 2025, Compass, Inc. announced a merger with Anywhere Real Estate Inc. in an all-stock transaction valued at approximately $10 billion, including debt. This merger is set to create a premier real estate platform by combining Compass’ technology and marketing expertise with Anywhere’s established brands and global reach. The transaction is expected to diversify Compass’ revenue streams and achieve significant operational synergies, enhancing the company’s financial profile and market positioning. The merger is anticipated to close in the second half of 2026, pending shareholder and regulatory approvals.

The most recent analyst rating on (COMP) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Compass stock, see the COMP Stock Forecast page.

Compass Appoints Ethan Glass as Chief Legal Officer

Compass has announced a significant leadership change with the appointment of Mr. Ethan Glass as Chief Legal Officer and Corporate Secretary, effective September 8, 2025. This transition follows the announcement on September 9, 2025, that Brad Serwin will step down as General Counsel by the end of the year to start his private practice. Mr. Serwin will remain with the company until December 31, 2025, to ensure a smooth transition and will continue to provide consulting services until March 16, 2026. His departure package includes extended stock option exercise periods, additional health benefits, and continued equity award vesting. The company has also waived repayment obligations under his bonus agreement, acknowledging his contributions over the past five years.

The most recent analyst rating on (COMP) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on Compass stock, see the COMP Stock Forecast page.

Compass Triggers Early Release Collar in August 2025

Compass, Inc. completed the acquisition of @properties Christie’s International Real Estate on January 13, 2025. As part of the merger agreement, Compass issued 44.1 million shares of its Class A common stock, with adjustments based on stock price performance. An amendment to the original agreement, known as the Early Release Collar, was triggered in August 2025, allowing Compass to deliver 28.4 million shares to certain sellers, reducing shareholder dilution by 9.3%. The remaining shares for non-accelerated sellers will be distributed in installments from January 2026 to 2028, potentially further reducing dilution by 3.3%.

The most recent analyst rating on (COMP) stock is a Buy with a $11.00 price target. To see the full list of analyst forecasts on Compass stock, see the COMP Stock Forecast page.

Compass Inc. Faces Financial Strain Amid U.S. Tariff Policy Shifts and Trade Tensions

Compass Inc. faces significant risks due to recent changes in U.S. tariff policies, which could adversely impact their business operations. These changes, along with retaliatory tariffs and escalating trade tensions, threaten to disrupt global supply chains and inflate costs in the housing construction and renovation sectors. The resulting economic uncertainty, including potential volatility in capital markets and a slowdown in economic growth, may deter prospective home buyers, leading to reduced transaction volumes. This scenario poses a material threat to Compass Inc.’s financial condition and operational results, compounded by additional unknown risks that could further exacerbate these challenges.