Compass (COMP) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 results with revenue of $2.06 billion, up 21.1% year-over-year, GAAP net income of $39.4 million (up 90.3%), and Adjusted EBITDA of $125.9 million, all-time highs for the company.

• Outperformed the housing market with 20.9% transaction growth versus a 0.9% market decline, and organic transaction growth of 6.3%.

• Principal agent count grew 23.3% year-over-year to 20,965, with 832 gross principal agent additions, up 53% year-over-year, and retention at 97.5%.

• Christie's International Real Estate integration ahead of plan, contributing to affiliate and franchise business growth and strong financial performance.

• Platform engagement reached all-time highs, with agents averaging 24 weekly sessions, up 37% year-over-year.

Financial highlights

• Q2 2025 revenue reached $2.06 billion, up 21.1% year-over-year; organic revenue growth was 8.7%.

• Adjusted EBITDA was $125.9 million, up 63% from $77 million a year ago; margin improved to 6.1%.

• GAAP net income was $39.4 million, a 90% increase from $20.7 million in Q2 2024; net income margin was 1.9%.

• Free Cash Flow was $68 million, up from $40.4 million in Q2 2024.

• Gross transaction value was $78.3 billion, up 20.3% year-over-year, with 73,025 transactions, up 20.9%.

Outlook and guidance

• Q3 2025 revenue expected between $1.725 billion and $1.85 billion; Adjusted EBITDA guidance of $60 million to $80 million.

• 2025 OpEx guidance lowered to $1.01 billion–$1.02 billion, reflecting $25 million in savings.

• Free cash flow expected to be positive for full year 2025.

• New cost efficiency program underway, targeting $50–$75 million incremental Adjusted EBITDA in 2026.

• Stock-based compensation for Q3 expected at $55–$60 million, peaking in Q3 and declining thereafter.