Compass (COMP) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and full-year 2025 revenue, with Q4 revenue of $1.7B and full-year revenue reaching $7B, both above guidance.

• Adjusted EBITDA for FY 2025 reached $293.4M, with Q4 Adjusted EBITDA of $58.3M, both showing strong year-over-year growth.

• Completed transformative mergers with Anywhere and Christie's International Real Estate, expanding global reach to 340,000 professionals in 120 countries.

• Announced exclusive, multi-year partnership with Rocket and Redfin to expand home seller choice and agent lead flow.

• Outperformed the U.S. residential real estate market in transaction growth for the 19th consecutive quarter.

Financial highlights

• FY 2025 revenue was $6,961.6M, up 23.7% year-over-year; Q4 2025 revenue was $1,699.8M, up 23.1% year-over-year.

• FY 2025 Adjusted EBITDA reached $293.4M (+$167.4M YoY), with a margin of 4.2% (+200 bps YoY).

• FY 2025 free cash flow was $203.3M; Q4 2025 free cash flow was $42.2M.

• FY 2025 gross transaction value totaled $267.0B, up 23.2% year-over-year; Q4 GTV was $65.6B, up 21.6%.

• Ended FY 2025 with $199M in cash and cash equivalents, with no revolver balance.

Outlook and guidance

• Q1 2026 revenue guidance: $2.55B–$2.75B; Adjusted EBITDA: $15M–$35M, including $15M–$20M in discrete merger expenses.

• Excluding discrete items, Adjusted EBITDA outlook would have been $32.5M–$47.5M.

• Cost synergies of $250M targeted in year one, $400M over three years.

• Free cash flow expected to be negative in Q1 due to transaction costs, returning positive in subsequent quarters.

• Q1 expected to be seasonally light and impacted by severe winter weather, but underlying market health remains strong.