Highlights 

  • Revenue increased 23.6% YoY to USD 1.85B, reaching the top end of guidance. 
  • The company’s adjusted EBITDA climbed 80% YoY to USD 93.6M. 
  • The company’s free cash flow advanced 124% YoY to USD 73.6M. 

Compass, Inc. (NYSE:COMP), a U.S.-based residential real estate brokerage and technology-enabled services provider, reported its financial results for the third quarter ended September 30, 2025, achieving multiple quarterly records. The company posted revenue of USD 1.85B, up 23.6% year-over-year, supported by a 21.5% rise in transactions, compared with a 2% increase in the broader U.S. residential market. 

The company recorded a GAAP net loss of USD 4.6M for the quarter, versus a net loss of USD 1.7M in Q3 2024. The result included non-cash stock-based compensation of USD 59.6M, depreciation and amortization of USD 27.6M, and merger-related expenses of USD 7.5M linked to the agreement with Anywhere Real Estate Inc. Excluding merger-related costs, Compass would have reported net income of USD 2.9M, reflecting a USD 4.6M improvement year-over-year. 

Adjusted EBITDA rose 80% from the prior year period to USD 93.6M, marking the company’s highest Q3 performance to date. Operating cash flow reached USD 75.5M, while free cash flow rose 124% to USD 73.6M, marking the seventh consecutive quarter of positive free cash flow. 

As of September 30, 2025, Compass held USD 170.3M in cash and cash equivalents and had no balance outstanding on its revolver, after repaying USD 50M during the quarter. 

Operational Metrics 

Compass’ national market share reached 5.63% in Q3 2025, an 83-basis-point increase year-over-year, with organic market share growth of 32 basis points. The company ended the quarter with 21,550 principal agents, up 22.8% from Q3 2024, adding a record 851 agents organically. Quarterly principal agent retention was 97.3%. 

Compass agents completed 67,886 total transactions, a 21.5% increase year-over-year, while Gross Transaction Value rose 22.5% to USD 70.7B. 

Platform and Product Updates 

The company’s proprietary platform reached a record average of 22 weekly sessions per agent during the quarter, equivalent to approximately four sessions per day. Product developments included continued adoption of the One-Click Title & Escrow integration and expansion of the “Make-Me-Sell” feature, which reached 19,715 entries by quarter-end. 

Additionally, Compass One, introduced earlier in 2025, was utilized by around 330,000 clients year-to-date. The Buyer Demand Tool, launched in October following a beta phase, engaged in over 4,000 agents within its first week. 

Outlook 

For Q4 2025, Compass anticipates revenue in the range of USD 1.59B to USD 1.69B and Adjusted EBITDA between USD 35M and USD 49M. 

For the full year, non-GAAP operating expenses are projected between USD 1.00B and USD 1.005B, slightly below previous guidance. The company expects to remain free cash flow positive for the full year 2025.