COMP · Compass, Inc.

Compass delivered its first quarterly GAAP net income ($22M) since before the Anywhere acquisition, marking a pivotal inflection point in its post-merger financial trajectory. The $2.70B revenue reflects full consolidation of Anywhere’s operations for the quarter, while pro forma revenue growth of 7% YoY confirms underlying organic strength beyond acquisition lift. Management attributes the $61M Adjusted EBITDA — above guidance — to disciplined OPEX control and sustained brokerage outperformance: pro forma Brokerage GTV grew 7.3% YoY versus a 1.5% increase in the broader U.S. market, and transactions rose 2.6% YoY versus 0.2% market growth. Critically, the company executed $250M in net cost synergies by April 1st — just 82 days after closing on January 9, 2026 — enabling aggressive target upgrades: 2026 realized synergies now expected at $200M (vs. prior $100M), with $130M flowing through the P&L and $70M as Capex savings. The three-year actioned target rose to $500M, of which $420M is P&L-driven. Forward guidance underscores acceleration: Q2 Adjusted EBITDA outlook of $310–$350M implies >400% sequential growth, supported by platform rollout timing (Home Platform to Anywhere agents in Q3 2026) and structural tools like Reverse Prospecting and Buyer Demand Tool driving agent engagement and listing wins. Liquidity remains solid ($484M cash, no revolver draw), and credit rating upgrades from both Moody’s (B2, Positive Outlook) and S&P (B+, Positive Outlook) validate improved financial profile. However, negative operating and free cash flow ($157M and $168M, respectively) reflect integration-related cash outflows, not operational weakness — consistent with management’s emphasis on de-levering over time via synergy realization and free cash flow positivity for full-year 2026.