Compass (NYSE:COMP) Announces Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Compass (NYSE:COMP) announced its quarterly earnings data on Thursday. The company reported ($0.07) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.06) by ($0.01), Zacks reports. Compass had a negative net margin of 0.85% and a negative return on equity of 8.83%.

Here are the key takeaways from Compass’ conference call:

• Compass reported a record Q4 and full-year 2025: $1.7 billion revenue in Q4 and ~$7 billion for the year, with Q4 Adjusted EBITDA of $58M and FY Adjusted EBITDA of $293M, plus all-time high operating cash flow of $217M.
• The company announced an exclusive three-year strategic alliance with Redfin and Rocket Mortgage expected to deliver 1.2 million high-intent leads, prioritized exposure for unique/Coming Soon inventory on Redfin.com, and mortgage incentives to boost listings and agent visibility.
• Post-close integration progress is rapid: ~$175M of cost synergies actioned in ~6.5 weeks, with a CEO commitment to action $250M in year one and realize $400M of net cost synergies over three years.
• Near-term financial/headwind items: Q1 2026 guide (now including Anywhere) targets consolidated revenue $2.55–2.75B but low Adjusted EBITDA ($15–35M), expects materially negative free cash flow in Q1, and consolidated long-term debt of $3.15B, driven partly by Anywhere-related LTIP, healthcare, and purchase-accounting rent impacts.

Compass Stock Performance

COMP stock traded up $0.47 during mid-day trading on Thursday, hitting $9.98. 27,936,942 shares of the company were exchanged, compared to its average volume of 24,541,842. The firm has a market cap of $5.62 billion, a P/E ratio of -90.73 and a beta of 2.54. The firm’s 50 day simple moving average is $11.54 and its 200 day simple moving average is $9.82. Compass has a 1-year low of $5.66 and a 1-year high of $13.95.

Insider Activity

In other news, CFO Scott R. Wahlers sold 99,986 shares of the stock in a transaction on Wednesday, January 7th. The shares were sold at an average price of $12.03, for a total transaction of $1,202,831.58. Following the completion of the sale, the chief financial officer owned 250,073 shares of the company’s stock, valued at $3,008,378.19. This represents a 28.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 4.08% of the stock is owned by corporate insiders.

Analyst Ratings Changes

A number of brokerages recently commented on COMP. Compass Point set a $15.00 price objective on Compass in a research note on Monday, January 26th. Needham & Company LLC restated a “buy” rating and set a $11.00 target price on shares of Compass in a report on Tuesday, November 4th. Deutsche Bank Aktiengesellschaft raised Compass from a “hold” rating to a “buy” rating and set a $16.00 price target for the company in a research note on Tuesday, January 20th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Compass in a research report on Wednesday, January 21st. Finally, Barclays lifted their price objective on shares of Compass from $13.00 to $15.00 and gave the stock an “overweight” rating in a research note on Thursday, January 15th. Eight analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $13.64.

Compass Company Profile

Compass, Inc is a technology-driven real estate brokerage firm that provides a full suite of services for home buyers, sellers and renters. Utilizing a proprietary software platform, the company equips its network of licensed real estate agents with data analytics, marketing automation and client relationship tools designed to enhance efficiency and transaction transparency.

Founded in 2012 by Ori Allon and Robert Reffkin, Compass has grown from a single office in New York City to serve more than 300 markets across the United States.