Compass AI Stock Analysis
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Compass (COMP) AI Stock Analysis
Compass
(NYSE:COMP)
Overall score reflects improving fundamentals and execution (stronger profitability versus prior years and materially better free cash flow), supported by a very positive earnings call focused on cost synergies and EBITDA growth guidance. The score is held back by elevated leverage and still-thin margins, plus a demanding valuation (P/E ~47) and only mixed technical momentum.
Compass Key Performance Indicators (KPIs)
Total TransactionsRepresents overall deal flow handled by Compass in a given period. Strong or improving transaction volumes point to healthy demand and platform adoption, while drops often precede lower revenues and can reflect market seasonality, pricing pressure, or competitive losses.
Transaction volumes moved from a prolonged trough into clear recovery and then a sharp step-up in the latest quarter—momentum the company attributes to the Anywhere consolidation and new lead partnerships (Rocket/Redfin). That jump supports the improved pro‑forma revenue and record adjusted EBITDA, but it likely reflects mix and reporting changes (lower ASP and many low‑production agents) and comes alongside heavy integration costs and near‑term cash drag. Watch synergy realization and agent productivity improvements to see if higher transaction counts sustainably convert into free cash flow and margin expansion.
The FlyCompass (COMP) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $8.17B
- Dividend Yield
- ―
- Average Volume (3M)
- 13.88M
- Price to Earnings (P/E)
- 55.2
- Beta (1Y)
- 1.26
- Revenue Growth
- 89.80%
- EPS Growth
- ―
- Country
- US
- Employees
- 3,200
- Sector
- Real Estate
- Sector Strength
- 65
- Industry
- Real Estate - Services
Compass Business Overview & Revenue Model
Company Description
Headquartered in New York, New York, and established in 2012, Compass, Inc. delivers real estate brokerage services throughout the United States. The company's core offering is a sophisticated, cloud-based platform that integrates a comprehensive sui...
How the Company Makes Money
Compass generates the vast majority of its revenue from residential real estate brokerage commissions earned when homes are bought or sold through agents affiliated with Compass. In a typical transaction, the seller pays a commission that is shared b...
Compass Earnings Call Summary
The call was strongly positive on execution, financial performance, cost synergy realization, liquidity, agent retention, platform adoption, AI engagement, and mortgage growth. These achievements significantly outweighed the stated challenges from higher mortgage rates, weak pending sales, lower organic transactions, and a softer Q4 organic revenue outlook. Management remained cautious about the macro environment but expressed confidence in the company's ability to control costs and pursue growth through recruiting, platform rollout, integrated services, and digital reach.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For the fourth quarter of 2026, Compass expects consolidated revenue in the range of $3.15 billion-$3.35 billion, consolidated adjusted EBITDA to be in the range of $100 million-$130 million, non-GAAP operating expenses for the full year in the range of $2.71 billion-$2.73 billion, and basic weighted average share count between 776 million-778 million shares; this implies a full-year adjusted EBITDA range of $830 million-$860 million, with about $245 million in cost synergies expected to be realized in 2026, including about $175 million through the P&L and $70 million as lower Capex, while the $120 million wraparound effect on OpEx is expected in 2027 compared to 2026, and the company remains committed to its $500 million target in less than three years.
Compass Financial Statement Overview
Summary
Improving operating trajectory with strong TTM operating cash flow ($327.3M) and free cash flow ($294.2M), plus a return to positive TTM net income ($133.4M) and accelerating TTM revenue growth (up 19.43%). Offsetting this, profitability remains thin (TTM net margin ~1.1%, EBITDA margin ~1.9%) and balance sheet leverage is elevated (debt-to-equity ~1.27x), increasing financial risk if housing conditions weaken.
Income Statement
62PositiveBalance Sheet
45NeutralCash Flow
68Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.61B | 6.96B | 5.63B | 4.88B | 6.02B | 6.42B |
| Gross Profit | 1.08B | 738.70M | 994.50M | 878.00M | 1.08B | 1.11B |
| EBITDA | 330.50M | 61.90M | -65.60M | -216.40M | -500.30M | -428.50M |
| Net Income | 133.40M | -58.50M | -154.40M | -321.30M | -601.50M | -494.10M |
Balance Sheet | ||||||
| Total Assets | 8.60B | 1.54B | 1.18B | 1.16B | 1.53B | 1.80B |
| Cash, Cash Equivalents and Short-Term Investments | 841.00M | 199.00M | 223.80M | 166.90M | 361.90M | 618.30M |
| Total Debt | 4.17B | 476.20M | 497.60M | 533.90M | 763.00M | 580.70M |
| Total Liabilities | 5.45B | 752.20M | 765.60M | 728.30M | 1.01B | 953.00M |
| Stockholders Equity | 3.14B | 782.00M | 409.40M | 428.70M | 517.10M | 843.80M |
Cash Flow | ||||||
| Free Cash Flow | 294.20M | 203.30M | 105.80M | -37.10M | -362.40M | -78.70M |
| Operating Cash Flow | 327.30M | 216.70M | 121.50M | -25.90M | -292.30M | -28.60M |
| Investing Cash Flow | -467.30M | -191.30M | -36.60M | -11.70M | -100.10M | -192.50M |
| Financing Cash Flow | 811.70M | -50.20M | -28.00M | -157.40M | 136.00M | 399.30M |
Compass Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COMP, the sentiment is Positive. The current price of 10.21 is above the 20-day moving average (MA) of 9.41, above the 50-day MA of 9.73, and above the 200-day MA of 9.83, indicating a bullish trend. The MACD of -0.00 indicates Negative momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 70.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COMP.
Compass Risk Analysis
Compass disclosed 60 risk factors in its most recent earnings report. Compass reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
2 New RisksCompass Peers Comparison
Overall Rating
REAX62Neutral- COMP60Neutral
AGNT52Neutral
DOUG47Neutral
OPEN40Underperform
FTHM37Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 65Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
| REAX | 62Neutral | $462.89M | -4.31 | -54.32% | ― | 32.27% | -463.00% |
| COMP | 60Neutral | $7.84B | 55.19 | 5.49% | ― | 89.80% | ― |
| AGNT | 52Neutral | $510.61M | -21.00 | -9.51% | 6.45% | 7.72% | -22.43% |
| DOUG | 47Neutral | $141.79M | 2.91 | 15.69% | ― | -2.75% | ― |
| OPEN | 40Underperform | $1.30B | -0.70 | -190.36% | ― | -28.78% | -321.20% |
| FTHM | 37Underperform | $5.06M | -0.19 | -75.90% | ― | 4.33% | 24.93% |
* Real Estate Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| COMP | Compass Inc | 10.21 | 0.71 | 7.47% | |
| AGNT | Exp World Holdings, Inc. | 3.10 | -7.34 | -70.32% | |
| FTHM | Fathom Holdings Inc | 0.15 | -1.08 | -87.97% | |
| OPEN | Opendoor Technologies Inc | 1.40 | -7.97 | -85.06% | |
| REAX | Real Brokerage Inc. | 12.66 | -28.34 | -69.12% | |
| DOUG | Douglas Elliman Inc. | 1.56 | -1.05 | -40.23% |
Compass Corporate Events
Compass reshapes board leadership and adds AI-focused director
PositiveOn October 7, 2026, Compass director Charles E. Phillips Jr. resigned from the Board effective October 9, 2026, stepping down as Lead Independent Director, chair of the Nominating and Corporate Governance Committee, and Audit Committee member. His de...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Nov 06, 2026