Compass (NYSE:COMP) Issues Earnings Results, Misses Estimates By $0.01 EPS

Compass (NYSE:COMP) posted its quarterly earnings results on Thursday. The company reported ($0.07) EPS for the quarter, missing the consensus estimate of ($0.06) by ($0.01), Zacks reports. The business had revenue of $1.70 billion during the quarter, compared to analysts’ expectations of $1.69 billion. Compass had a negative net margin of 0.84% and a negative return on equity of 8.19%.

Here are the key takeaways from Compass’ conference call:

• Compass reported a record Q4 and full-year 2025: $1.7 billion revenue in Q4 and ~$7 billion for the year, with Q4 Adjusted EBITDA of $58M and FY Adjusted EBITDA of $293M, plus all-time high operating cash flow of $217M.
• The company announced an exclusive three-year strategic alliance with Redfin and Rocket Mortgage expected to deliver 1.2 million high-intent leads, prioritized exposure for unique/Coming Soon inventory on Redfin.com, and mortgage incentives to boost listings and agent visibility.
• Post-close integration progress is rapid: ~$175M of cost synergies actioned in ~6.5 weeks, with a CEO commitment to action $250M in year one and realize $400M of net cost synergies over three years.
• Near-term financial/headwind items: Q1 2026 guide (now including Anywhere) targets consolidated revenue $2.55–2.75B but low Adjusted EBITDA ($15–35M), expects materially negative free cash flow in Q1, and consolidated long-term debt of $3.15B, driven partly by Anywhere-related LTIP, healthcare, and purchase-accounting rent impacts.

Compass Stock Performance

NYSE:COMP opened at $9.75 on Friday. The company has a fifty day moving average of $11.50 and a two-hundred day moving average of $9.83. The stock has a market capitalization of $5.49 billion, a PE ratio of -97.53 and a beta of 2.54. Compass has a fifty-two week low of $5.66 and a fifty-two week high of $13.95.

Trending Headlines about Compass

Here are the key news stories impacting Compass this week:

• Positive Sentiment: Historic alliance with Rocket & Redfin could materially expand Compass inventory and distribution (company says >500,000 additional listings possible), improving buyer traffic and referral opportunities. Compass and Rocket Form Historic Alliance to Dramatically Increase Home Listing Inventory on Redfin
• Positive Sentiment: Rocket Pro deal increases broker credits and introduces a new LOS (“Jupiter”), which could boost mortgage capture and make transactions more profitable/competitive for Compass agents. That strengthens vertical integration benefits from the partnership. Rocket Pro doubles broker credits with Compass deal, unveils ‘Jupiter’ LOS
• Positive Sentiment: “Coming Soon”/exclusive Compass listings will be syndicated to Redfin, broadening buyer reach for off-market inventory and potentially accelerating transaction velocity. This increases the practical value of Compass’s exclusive supply. Compass Coming Soon listings to appear on Redfin
• Neutral Sentiment: Q4 results were mixed: revenue beat estimates ($1.70B vs. ~$1.69B) but EPS missed slightly ($0.07 loss vs. $0.06 expected). The top-line strength is a plus, but the EPS miss keeps short-term profitability concerns in focus. Compass, Inc. (COMP) Reports Q4 Loss, Tops Revenue Estimates
• Negative Sentiment: Post-merger policy details (lead-referral program and transaction fee changes) are surfacing; such changes can provoke agent pushback, reduce retention or compress margins if adoption is weak. That raises execution and cultural-integration risk after the Rocket tie-up. Compass’ post-merger policies take shape
• Negative Sentiment: Guidance for the coming quarter showed a wide revenue range ($2.6B–$2.8B) vs. consensus (~$2.7B), leaving uncertainty on near-term growth and margins; coupled with the EPS miss, investors may price in execution risk until agent reaction and integration progress are clearer. Compass Q4 earnings and guidance press materials

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on COMP. Zacks Research upgraded Compass from a “strong sell” rating to a “hold” rating in a research note on Monday, November 10th. JPMorgan Chase & Co. assumed coverage on Compass in a research report on Monday, January 26th. They issued an “overweight” rating and a $15.00 price objective on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Compass in a research note on Wednesday, January 21st. Wells Fargo & Company boosted their target price on shares of Compass from $8.00 to $13.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 13th. Finally, Odeon Capital Group assumed coverage on shares of Compass in a research report on Wednesday, November 19th. They set a “buy” rating on the stock. Eight analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $13.64.

Insider Activity

In other news, CFO Scott R. Wahlers sold 99,986 shares of the business’s stock in a transaction dated Wednesday, January 7th. The shares were sold at an average price of $12.03, for a total transaction of $1,202,831.58. Following the completion of the sale, the chief financial officer owned 250,073 shares of the company’s stock, valued at $3,008,378.19. The trade was a 28.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 4.08% of the stock is currently owned by company insiders.

Compass Company Profile

Compass, Inc is a technology-driven real estate brokerage firm that provides a full suite of services for home buyers, sellers and renters. Utilizing a proprietary software platform, the company equips its network of licensed real estate agents with data analytics, marketing automation and client relationship tools designed to enhance efficiency and transaction transparency.

Founded in 2012 by Ori Allon and Robert Reffkin, Compass has grown from a single office in New York City to serve more than 300 markets across the United States.