Compass (NYSE:COMP) Releases Earnings Results, Beats Expectations By $0.20 EPS

Compass (NYSE:COMP) issued its quarterly earnings data on Tuesday. The company reported $0.03 earnings per share for the quarter, beating analysts’ consensus estimates of ($0.17) by $0.20, Zacks reports. Compass had a net margin of 0.17% and a return on equity of 1.86%. The business had revenue of $2.70 billion for the quarter, compared to analysts’ expectations of $2.67 billion.

Here are the key takeaways from Compass’ conference call:

• Company raised its cost synergy targets to $300 million actioned in year 1 and $500 million net over three years, having already actioned over $250 million and increasing 2026 in?year realized synergies to about $200 million (?$130M P&L, $70M CapEx).
• Pro forma operating performance showed brokerage outperformance versus the market (pro forma transactions +2.6% YoY; brokerage GTV +7.3% YoY vs market +1.5%), with consolidated Q1 revenue of $2.7 billion and a record Q1 adjusted EBITDA of $61 million, above guidance.
• Strategic partnerships and distribution wins — the Rocket Mortgage and Redfin integrations (Coming Soon on Redfin, Rocket pre?quals) have driven lead flow (?3,000 incremental buyer inquiries and >24,000 leads delivered so far) and helped recruiting momentum across brands.
• Q1 free cash flow was negative $168 million due to transaction and integration spend, plus elevated one?time integration and non?cash D&A items, and Q2 could be close to breakeven depending on timing of severance, interest, and legal payments.
• Technology and AI initiatives are being scaled — Compass plans full tech rollout to owned brokerages by September and franchises early next year, with AI automations already saving an estimated $2 million in Q1 and identifying ~$23 million of potential annualized efficiencies.

Compass Stock Down 6.8%

Compass stock traded down $0.63 during midday trading on Thursday, hitting $8.61. The company’s stock had a trading volume of 9,137,369 shares, compared to its average volume of 19,037,256. The stock’s 50-day moving average price is $8.07 and its 200-day moving average price is $9.66. Compass has a 12 month low of $5.66 and a 12 month high of $13.95. The company has a market capitalization of $6.39 billion, a PE ratio of 430.65 and a beta of 2.45.

Analyst Upgrades and Downgrades

COMP has been the topic of a number of recent analyst reports. Wells Fargo & Company cut their price objective on shares of Compass from $12.00 to $9.00 and set an “equal weight” rating on the stock in a research note on Monday, April 6th. Barclays cut their price objective on shares of Compass from $15.00 to $12.00 and set an “overweight” rating on the stock in a research note on Wednesday, April 8th. The Goldman Sachs Group restated a “neutral” rating on shares of Compass in a research note on Wednesday. Morgan Stanley lifted their price objective on shares of Compass from $11.00 to $12.50 and gave the company an “equal weight” rating in a research note on Wednesday. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of Compass from a “hold” rating to a “buy” rating and set a $16.00 price objective on the stock in a research note on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $12.63.

About Compass

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.