Compass reported third‑quarter 2025 results, posting revenue of $1.85 billion, a 23.6% year‑over‑year increase, and record adjusted EBITDA of $93.6 million. Free cash flow rose to $73.6 million, the highest in the company’s history, underscoring continued operational efficiency and cash‑generating strength.
The company posted a GAAP net loss of $0.01 per share, beating the consensus estimate of a $0.02 loss. Adjusted earnings per share were $0.02, up from $0.01 in the same quarter a year earlier. Compass added a record 851 new principal agents, maintained a 97.3% quarterly retention rate, and achieved a total market share of 5.63%, with an organic share gain of 32 basis points.
Compass reaffirmed its full‑year 2025 guidance for revenue, adjusted EBITDA, and free cash flow. For the fourth quarter, the company projected revenue between $1.59 billion and $1.69 billion and adjusted EBITDA between $35 million and $49 million. In comparison, Q2 2025 revenue was $1.70 billion and Q3 2024 revenue was $1.50 billion, while Q3 2024 GAAP net loss was $1.7 million and adjusted EBITDA was $52.0 million.
The results reflect Compass’s strategy of agent recruitment and retention, supported by its technology platform. The company’s transaction volume grew 21.5% in Q3 2025, outpacing the overall market’s 2.0% increase. Compass also paid back $50 million on its revolver, ending the quarter with $170.3 million in cash and cash equivalents and no outstanding revolver balance.
Compass is preparing for a merger with Anywhere Real Estate Inc., a move that will create a larger entity in the real‑estate services sector. The merger is expected to enhance Compass’s market reach and technology capabilities, reinforcing its competitive positioning in a challenging housing market.
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