Overview

* Compass Q2 revenue rises 21.1% yr/yr to $2.06 bln, in-line with analyst estimates, per LSEG data

* GAAP net income grows 90.3% yr/yr to $39.4 mln

Outlook

* Compass sees Q3 revenue between $1.725 bln and $1.850 bln

* Company expects Q3 adjusted EBITDA of $60 mln to $80 mln

* Compass updates full-year non-GAAP OPEX to $1.010 bln-$1.020 bln

* Company expects to be free cash flow positive for full-year 2025

Result Drivers

* TRANSACTION GROWTH - Total transactions increased by 20.9% yr/yr, with organic transactions up 6.3%, outpacing the market decline of 0.9%

* AGENT EXPANSION - Record addition of 832 principal agents in Q2, contributing to a 23.3% yr/yr increase in total principal agents

* ACQUISITION IMPACT - Christie's International Real Estate acquisition contributed 10.4% to revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Meet $2.06 $2.05

Revenue bln bln (9

Analysts

)

Q2 EPS $0.07

Q2 Net $39.20

Income mln

Q2 $2.02

Operatin bln

g

Expenses

Q2 $39.40

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "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 $8.50, about 13.3% above its July 29 closing price of $7.37

* The stock recently traded at 158 times the next 12-month earnings vs. a P/E of 62 three months ago

Press Release:

(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.)