Overview

* Compass Q3 revenue grows 23.6% yr/yr to $1.85 bln, beating analyst expectations

* Adjusted EBITDA for Q3 rises 80% yr/yr, reflecting strong operational performance

* Company reports strong cash generation, with free cash flow up 124% yr/yr

Outlook

* Company projects Q4 revenue between $1.590 bln and $1.690 bln

* Compass expects Q4 adjusted EBITDA of $35 mln to $49 mln

* Company reduces full-year non-GAAP OPEX forecast to $1.000 bln-$1.005 bln

Result Drivers

* AGENT GROWTH - Record 851 principal agents joined Compass organically in Q3, marking an all-time high

* TRANSACTION OUTPERFORMANCE - Co grew organic transactions by 7% and total transactions by 22%, outpacing market growth of 2%

* TECHNOLOGY PLATFORM - Co's platform hit a Q3 record of 22 average weekly sessions per agent, enhancing agent efficiency

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $1.84 $1.78

Revenue bln bln (9

Analysts

)

Q3 EPS -$0.01

Q3 Net -$4.60

Income mln

Q3 $1.85

Operatin bln

g

Expenses

Q3 -$7.20

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Compass Inc ( COMP ) is $9.50, about 18.1% above its November 3 closing price of $7.78

* The stock recently traded at 84 times the next 12-month earnings vs. a P/E of 203 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)