#United States #New York #Inc. #Q3 2025 #Compass #Real Estate Brokerage

Compass, Inc. Achieves Record-Breaking Third Quarter 2025 Financial Results

Compass, Inc., the leading residential real estate brokerage in the United States, recently announced its outstanding financial results for the third quarter of 2025, reporting remarkable growth figures that surpassed expectations. The results underscore the company's strong position in the real estate market and its commitment to leveraging technology in delivering exceptional services to its clients.

Key Financial Highlights

For the quarter ending on September 30, 2025, Compass reported a revenue of $1.85 billion, a substantial increase of 23.6% year-over-year. This impressive growth is a testament to the effective strategies employed by the company, particularly in securing new business and retaining existing clients.

During this quarter, Compass welcomed 851 new principal agents, reaching an all-time high, significantly contributing to their total of 21,550 principal agents. The company's agent retention rate also remained high at 97.3%, further indicating the established trust and satisfaction among its agents.

In terms of operating performance, Compass's operating cash flow surged to $75.5 million, reflecting an astounding 102% year-over-year growth, which translates into a remarkable achievement of the seventh consecutive quarter marked by positive Free Cash Flow. Furthermore, the Adjusted EBITDA reached $93.6 million, representing an 80% increase from the previous year’s $52 million, solidifying the quarter's status as the best in terms of Adjusted EBITDA in the company’s history.

Market Performance

Compass's performance outstripped the broader real estate market, with organic transaction growth of 7% and total transactions climbing by 22%. This is particularly noteworthy when considering that the overall market transaction growth was just 2% year-over-year. In terms of market share, the company’s quarterly organic market share increased by 32 basis points year-over-year, with total quarterly market share rising by 83 basis points to 5.63%.

The metrics indicate a clear trend where Compass not only grew its business organically but also captured a larger share of the market, demonstrating its effectiveness in executing its business model amidst varying market conditions.

Innovative Technology and Platform Development

One of the standout factors in Compass's ongoing success is its investment in technology. The company’s proprietary end-to-end technology platform has been instrumental in simplifying processes for agents. In the third quarter, agents averaged 22 weekly sessions on the platform, indicating a strong engagement with the technology that supports their workflows.

Several innovative features launched during this quarter contributed to this engagement:

• - Compass Make-Me-Sell: This feature empowers homeowners by allowing them to express aspirational pricing with their agents. It recorded around 19,715 entries by the end of Q3 2025, reflecting growing interest among clients.
• - One-Click Title & Escrow Integration: This streamlined feature helped agents double their attach rates, showcasing its importance in facilitating transactions.
• - Compass One: A comprehensive client dashboard launched earlier this year, which connected around 330,000 clients with their agents, providing transparency throughout the transaction process.
• - Buyer Demand Tool: This new tool, which became available to over 4,000 agents in its first week post-launch, offers real-time insights into buyers’ interests at particular price points.

These technological enhancements not only bolster the operational efficiency of agents but also enhance the overall customer experience, making it easier for buyers and sellers to connect in today's competitive landscape.

Looking Ahead

As Compass moves into the fourth quarter of 2025, expectations remain high. The company has provided guidance for revenue between $1.590 billion to $1.690 billion and adjusted EBITDA between $35 million to $49 million. Moreover, Compass anticipates a full-year free cash flow positive outlook, indicating confidence in its strategic direction and operational execution.

In conclusion, with record-breaking financial results for Q3 2025, it is evident that Compass, Inc. continues to reinforce its leadership position in the residential real estate market. The company's strategic focus on agent retention, technological innovation, and effective market positioning is paving the way for sustained growth and further accomplishments in the future.

For further insights into Compass's financial performance and ongoing strategic initiatives, please visit their Investor Relations web page or tune in to their upcoming conference call scheduled for November 4, 2025, at 8:30 AM ET.