Compass, Inc. Reports Record Third Quarter 2026 Results

¹

Pro forma key business metrics and revenue are presented as if Compass and Anywhere were combined as of July 1, 2025.

²

A reconciliation of GAAP to Non-GAAP measures can be found within the financial statement tables included in this press release. Adjusted EBITDA excludes depreciation and amortization, investment income, interest expense, stock-based compensation, income tax benefit, Anywhere Merger transaction and integration expenses, restructuring costs, other acquisition-related expenses and a litigation charge. Free cash flow represents operating cash flow less capital expenditures. Non-GAAP OPEX excludes Commissions and other related expenses, Depreciation and amortization, Stock-based compensation and other expenses excluded from the Company's calculation of Adjusted EBITDA. Net Debt represents long-term debt less cash and cash equivalents.

³

Organic metrics are presented on a pro forma basis and include only the results of businesses that either Compass or Anywhere owned as of July 1, 2025.

⁴

Definitions of Key Business Metrics can be found within the financial statement tables included in this press release.

⁵

 Source: National Association of Realtors®. Market data reflects the latest NAR existing-home sales data available at the time of this release.

⁶

Monthly Active Users (MAU) represents the number of unique users who engage with Compass.com at least once during a given month.

Compass, Inc.

Condensed Consolidated Balance Sheets

(In millions, unaudited)

September 30, 2026

December 31, 2025

Assets

Current assets

Cash and cash equivalents

$                                 841

$                                 199

Accounts receivable, net of allowance

201

57

Relocation receivables

222

—

Other current assets

238

61

Total current assets

1,502

317

Property and equipment, net

208

114

Operating lease right-of-use assets

755

381

Intangible assets, net

3,019

193

Goodwill

2,636

479

Other non-current assets

477

56

Total assets

$                              8,597

$                              1,540

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$                                 104

$                                   12

Commissions payable

183

95

Accrued expenses and other current liabilities

675

138

Current lease liabilities

199

99

Securitization obligations

184

23

Total current liabilities

1,345

367

Long-term debt

3,141

—

Non-current lease liabilities

643

354

Deferred income taxes

160

—

Other non-current liabilities

161

32

Total liabilities

5,450

753

Stockholders' equity

Common stock

—

—

Additional paid-in capital

5,695

3,513

Accumulated deficit

(2,555)

(2,731)

Accumulated other comprehensive loss

(1)

—

Total Compass, Inc. stockholders' equity

3,139

782

Non-controlling interest

8

5

Total stockholders' equity

3,147

787

Total liabilities and stockholders' equity

$                              8,597

$                              1,540

Compass, Inc.

Condensed Consolidated Statements of Operations

(In millions, except share and per share data, unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Revenue

$               3,897

$               1,846

$            10,907

$               5,262

Operating expenses:

Commissions and other related expenses ⁽¹⁾

2,921

1,502

8,183

4,293

Sales and marketing ⁽¹⁾

107

59

312

178

Operations and support ⁽¹⁾

426

146

1,253

423

Technology and development ⁽¹⁾

107

67

335

180

General and administrative ⁽¹⁾

72

40

246

101

Anywhere Merger transaction and integration expenses ^{(1) (2)}

28

8

245

8

Restructuring costs

4

2

12

14

Depreciation and amortization

145

28

461

86

        Total operating expenses

3,810

1,852

11,047

5,283

Income (loss) from operations

87

(6)

(140)

(21)

Investment income

7

2

15

4

Interest expense

(41)

(2)

(119)

(7)

Income (loss) before income taxes and equity in income of unconsolidated entities

53

(6)

(244)

(24)

Income tax benefit

4

—

400

3

Equity in income of unconsolidated entities

6

2

21

5

Net income (loss)

63

(4)

177

(16)

Net income attributable to non-controlling interests

(1)

—

(1)

—

Net income (loss) attributable to Compass, Inc.

$                    62

$                    (4)

$                  176

$                  (16)

Net income (loss) per share attributable to Compass, Inc., basic

$                 0.08

$               (0.01)

$                 0.23

$               (0.03)

Net income (loss) per share attributable to Compass, Inc., diluted

$                 0.07

$               (0.01)

$                 0.22

$               (0.03)

Weighted-average shares used in computing net income (loss) per share attributable to Compass, Inc., basic

768,656,546

565,895,221

753,816,272

558,840,800

Weighted-average shares used in computing net income (loss) per share attributable to Compass, Inc., diluted

862,547,977

565,895,221

842,898,625

558,840,800

⁽¹⁾

Total stock-based compensation expense included in the condensed consolidated statements of operations is as follows (in millions):

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Commissions and other related expenses

$                      1

$                    —

$                      2

$                    —

Sales and marketing

3

9

12

25

Operations and support

8

11

26

26

Technology and development

13

28

45

66

General and administrative

11

11

36

28

Anywhere Merger transaction and integration expenses

—

—

64

—

Total stock-based compensation expense

$                    36

$                    59

$                  185

$                  145

⁽²⁾

Represents transaction and integration costs related to the Anywhere Merger. For the three and nine months ended September 30, 2026, these costs consisted of (i) legal, investment banking,

and other transaction-related costs, (ii) severance and other personnel-related costs, and (iii) costs to integrate systems, technologies, and other processes. All such costs were expensed as incurred.

Compass, Inc.

Condensed Consolidated Statements of Cash Flows

(In millions, unaudited)

Nine Months Ended September 30,

2026

2025

Operating Activities

Net income (loss)

$                         177

$                         (16)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

461

86

Stock-based compensation

185

145

Deferred income taxes

(408)

(4)

Equity in income of unconsolidated entities

(21)

(5)

Bad debt expense

12

—

Change in acquisition-related contingent consideration

2

(1)

Amortization of debt issuance costs, premiums, and discounts

2

1

Changes in operating assets and liabilities:

Accounts receivable

(32)

(7)

Relocation receivables

(65)

(12)

Other current and non-current assets

30

(5)

Operating lease right-of-use assets and operating lease liabilities

(10)

(10)

Accounts payable

(4)

—

Commissions payable

47

25

Accrued expenses and other liabilities

(94)

(26)

Net cash provided by operating activities

282

171

Investing Activities

Investment in unconsolidated entities

—

(4)

Capital expenditures

(30)

(10)

Payments for business combinations, net of cash acquired

(443)

(175)

Distributions from equity method investments in excess of cumulative earnings

8

—

Net cash used in investing activities

(465)

(189)

Financing Activities

Proceeds from stock option exercises and Employee Stock Purchase Plan issuances

29

14

Taxes paid related to net share settlement of equity awards

(83)

(47)

Net change in Securitization obligations

18

5

Proceeds from issuance of convertible notes, net of issuance costs

977

—

Purchase of capped call for convertible notes

(97)

—

Proceeds from drawdowns on Revolving Credit Facility

—

70

Repayments of drawdowns on Revolving Credit Facility

—

(70)

Payments for financing leases

(4)

—

Other

(14)

(8)

Net cash provided by (used in) financing activities

826

(36)

Net increase (decrease) in cash and cash equivalents

643

(54)

Effect of changes in exchange rates on cash and cash equivalents

(1)

—

Cash and cash equivalents at beginning of period

199

224

Cash and cash equivalents at end of period

$                         841

$                         170

Compass, Inc.

Reconciliation of Net Income (Loss) Attributable to Compass, Inc. to Adjusted EBITDA

(In millions, unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net income (loss) attributable to Compass, Inc.

$                               62

$                               (4)

$                             176

$                             (16)

Adjusted to exclude the following:

Depreciation and amortization

145

28

461

86

Investment income

(7)

(2)

(15)

(4)

Interest expense

41

2

119

7

Stock-based compensation

36

59

121

145

Income tax benefit

(4)

—

(400)

(3)

Anywhere Merger transaction and integration expenses ⁽¹⁾

28

8

245

8

Restructuring costs

4

2

12

14

Other acquisition-related expenses ⁽²⁾

1

1

4

(2)

Litigation charge ⁽³⁾

—

—

7

—

Adjusted EBITDA

$                             306

$                               94

$                             730

$                             235

Net income (loss) attributable to Compass, Inc. margin

1.6 %

(0.2 %)

1.6 %

(0.3 %)

Adjusted EBITDA margin

7.9 %

5.1 %

6.7 %

4.5 %

⁽¹⁾  Represents transaction and integration costs related to the Anywhere Merger. For the three and nine months ended September 30, 2026, these costs
consisted of (i) legal, investment banking, and other transaction-related costs, (ii) severance and other personnel-related costs, and (iii) costs
to integrate systems, technologies, and other processes. All such costs were expensed as incurred.

⁽²⁾  For the three months ended September 30, 2026, other acquisition-related expenses included $1 million of expenses related to acquisition
consideration recognized as compensation expense over the applicable retention periods. For the nine months ended September 30, 2026, other
acquisition-related expenses consisted of a $1 million loss from the change in fair value of acquisition-related contingent consideration and $3 million of
expenses related to acquisition consideration recognized as compensation expense over the applicable retention periods. For the three months ended
September 30, 2025, other acquisition-related expenses included $1 million of expenses related to acquisition consideration recognized as
compensation expense over the applicable retention periods. For the nine months ended September 30, 2025, other acquisition-related expenses
consisted of a $3 million gain from the change in fair value of acquisition-related contingent consideration, partially offset by $1 million of expenses
related to acquisition consideration recognized as compensation expense over the applicable retention periods.

⁽³⁾  Represents a charge of $7 million incurred during the nine months ended September 30, 2026 in connection with the Antitrust Lawsuits.

Compass, Inc.

Reconciliation of Operating Cash Flows to Free Cash Flow

(In millions, unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

Net cash provided by operating activities

$                     248

$                       75

$                     282

$                     171

Less:

Capital expenditures

(8)

(1)

(30)

(10)

Free cash flow

$                     240

$                       74

$                     252

$                     161

Compass, Inc.

Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses

(In millions, unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

GAAP Sales and marketing

$                            107

$                              59

$                            312

$                            178

Adjusted to exclude the following:

Stock-based compensation

(3)

(9)

(12)

(25)

Non-GAAP Sales and marketing

$                            104

$                              50

$                            300

$                            153

GAAP Operations and support

$                            426

$                            146

$                         1,253

$                            423

Adjusted to exclude the following:

Stock-based compensation

(8)

(11)

(26)

(26)

Other acquisition-related expenses

(1)

(1)

(4)

2

Non-GAAP Operations and support

$                            417

$                            134

$                         1,223

$                            399

GAAP Technology and development

$                            107

$                              67

$                            335

$                            180

Adjusted to exclude the following:

Stock-based compensation

(13)

(28)

(45)

(66)

Non-GAAP Technology and development

$                              94

$                              39

$                            290

$                            114

GAAP General and administrative

$                              72

$                              40

$                            246

$                            101

Adjusted to exclude the following:

Stock-based compensation

(11)

(11)

(36)

(28)

Litigation charge

—

—

(7)

—

Non-GAAP General and administrative

$                              61

$                              29

$                            203

$                              73

Compass, Inc.

 Non-GAAP Operating Expenses Excluding Commissions and Other Related Expenses

 (In millions, unaudited) 

Three Months Ended

2025 

December 31,
2025 

2026 

2026 

September 30,
2026

Sales and marketing

$                              50

$                              53

$                              92

$                            104

$                            104

Operations and support

134

135

387

419

417

Technology and development

39

38

100

96

94

General and administrative

29

33

62

80

61

Total non-GAAP operating expenses excluding
  commissions and other related expenses

$                            252

$                            259

$                            641

$                            699

$                            676

Compass, Inc.

Segment Operating Performance - Q3 2026

(In millions, unaudited)

Three Months Ended September 30, 2026

Brokerage

Franchise

Integrated Services

Total

Segment revenue

$                 3,578

$                    122

$                    197

$                 3,897

Less:

Commissions and other related expenses

2,920

-

-

Sales and marketing

88

10

6

Operations and support

237

26

150

Technology and development

9

4

2

General and administrative

6

-

2

Equity in income of unconsolidated entities

(2)

-

(4)

Net income attributable to noncontrolling interests

-

-

1

Segment Adjusted EBITDA

$                    320

$                      82

$                      40

$                    442

Reconciliation of Segment Adjusted EBITDA to Net income attributable to Compass, Inc.:

Unallocated corporate expenses ⁽¹⁾

$                   (136)

Stock-based compensation

(36)

Depreciation and amortization 

(145)

Restructuring costs 

(4)

Anywhere Merger transaction and integration expenses ⁽²⁾

(28)

Other acquisition-related expenses

(1)

Investment income

7

Interest expense 

(41)

Income tax benefit

4

Net income attributable to Compass, Inc.

$                      62

⁽¹⁾  Unallocated corporate expenses represent costs managed at the corporate level that are not allocated to the reporting segments. For the three months ended
September 30, 2026, these costs are reflected in the following line items within the condensed consolidated statements of operations: $4 million in Operations and

support, $79 million in Technology and development, and $53 million in General and administrative.

⁽²⁾  Includes transaction and integration-related expenses incurred in connection with the Anywhere Merger.

Compass, Inc.

Segment Operating Performance - Q3 2025

(In millions, unaudited)

Three Months Ended September 30, 2025

Brokerage

Franchise

Integrated Services

Total

Segment revenue

$                 1,802

$                        8

$                      36

$                 1,846

Less:

Commissions and other related expenses

1,502

-

-

Sales and marketing

48

-

2

Operations and support

106

3

25

Technology and development

3

1

1

General and administrative

3

1

1

Equity in income of unconsolidated entities

-

-

(2)

Segment Adjusted EBITDA

$                    140

$                        3

$                        9

$                    152

Reconciliation of Segment Adjusted EBITDA to Net loss attributable to Compass, Inc.:

Unallocated corporate expenses ⁽¹⁾

$                     (58)

Stock-based compensation

(59)

Depreciation and amortization

(28)

Restructuring costs

(2)

Anywhere Merger transaction and integration expenses ⁽²⁾

(8)

Other acquisition-related expenses

(1)

Investment income

2

Interest expense

Net loss attributable to Compass, Inc.

$                       (4)

⁽¹⁾  Unallocated corporate expenses represent costs managed at the corporate level that are not allocated to the reporting segments. For the three months ended
September 30, 2025, these costs are reflected in the following line items within the condensed consolidated statements of operations: $34 million in Technology
and development, and $24 million in General and administrative.

⁽²⁾  Includes transaction and integration-related expenses incurred in connection with the Anywhere Merger.

Compass, Inc.

Segment Operating Performance - Q3 2026 YTD

(In millions, unaudited)

Nine Months Ended September 30, 2026

Brokerage

Franchise

Integrated Services

Total

Segment revenue

$               10,005

$                    347

$                    555

$               10,907

Less:

Commissions and other related expenses

8,181

-

-

Sales and marketing

255

27

18

Operations and support

690

89

432

Technology and development

24

15

6

General and administrative

15

1

10

Equity in income of unconsolidated entities

(4)

-

(17)

Net income attributable to noncontrolling interests

-

-

1

Segment Adjusted EBITDA

$                    844

$                    215

$                    105

$                 1,164

Reconciliation of Segment Adjusted EBITDA to Net income attributable to Compass, Inc.:

Unallocated corporate expenses ⁽¹⁾

$                  (434)

Stock-based compensation

(121)

Depreciation and amortization

(461)

Restructuring costs

(12)

Anywhere Merger transaction and integration expenses ⁽²⁾

(245)

Litigation charge

(7)

Other acquisition-related expenses

(4)

Investment income

15

Interest expense

(119)

Income tax benefit

400

Net income attributable to Compass, Inc.

$                    176

⁽¹⁾  Unallocated corporate expenses represent costs managed at the corporate level that are not allocated to the reporting
segments. For the nine months ended September 30, 2026, these costs are reflected in the following line items within the
condensed consolidated statements of operations: $12 million in Operations and support, $245 million in Technology and
development, and $177 million in General and administrative.

⁽²⁾  Includes transaction and integration-related expenses incurred in connection with the Anywhere Merger.

Compass, Inc.

Segment Operating Performance - Q3 2025 YTD

(In millions, unaudited)

Nine Months Ended September 30, 2025

Brokerage

Franchise

Integrated Services

Total

Segment revenue

$                 5,143

$                      22

$                      97

$                 5,262

Less:

Commissions and other related expenses

4,293

-

-

Sales and marketing

147

2

4

Operations and support

320

9

69

Technology and development

10

2

2

General and administrative

7

1

2

Equity in income of unconsolidated entities

-

-

(5)

Segment Adjusted EBITDA

$                    366

$                        8

$                      25

$                    399

Reconciliation of Segment Adjusted EBITDA to Net loss attributable to Compass, Inc.:

Unallocated corporate expenses ⁽¹⁾

$                   (164)

Stock-based compensation

(145)

Depreciation and amortization

(86)

Restructuring costs

(14)

Anywhere Merger transaction and integration expenses ⁽²⁾

(8)

Other acquisition-related expenses

2

Investment income

4

Interest expense

(7)

Income tax benefit

3

Net loss attributable to Compass, Inc.

$                     (16)

⁽¹⁾  Unallocated corporate expenses represent costs managed at the corporate level that are not allocated to the reporting
segments. For the nine months ended September 30, 2025, these costs are reflected in the following line items within the
condensed consolidated statements of operations: $1 million in Operations and support, $100 million in Technology and
development, and $63 million in General and administrative.

⁽²⁾  Includes transaction and integration-related expenses incurred in connection with the Anywhere Merger.

Compass, Inc.

Key Business Metrics

(Unaudited)

The following table presents the Company's key business metrics on both an actual and pro forma basis. Pro forma metrics reflect the combined operations of Compass and Anywhere as if the acquisition had occurred on January 1, 2025, and therefore include

Anywhere's results across all periods presented. Because the acquisition actually closed on January 9, 2026, the pro forma metrics for the nine months ended September 30, 2026 incorporate Anywhere's results for the first eight days of January 2026 prior to closing.

Actuals

Pro Forma

Three Months Ended September 30,

Nine Months Ended September 30,

Three Months Ended September 30,

Nine Months Ended September 30,

2026

2025

2026

2025

2026

2025

2026

2025

Brokerage:

Gross Transaction Value (in billions) ⁽¹⁾

$                  138.9

$                    70.7

$                  391.5

$                  201.4

$                  138.9

$                  124.1

$                  392.9

$                  349.9

Total Transactions ⁽²⁾

140,118

67,887

392,631

190,032

140,118

136,660

394,274

377,746

Franchise:

Gross Transaction Value (in billions) ⁽¹⁾

$                  108.9

$                       8.5

$                  305.8

$                    23.6

$                  108.9

$                  110.4

$                  309.5

$                  294.9

Total Transactions ⁽²⁾

191,809

8,825

532,363

23,792

191,809

202,310

538,421

541,336

Net Royalty Rate Per Side ⁽³⁾

$                     486

$                     669

$                     481

$                     638

$                     486

$                     475

$                     480

$                     473

Integrated Services:

Purchase title and escrow transactions ⁽⁴⁾

35,106

7,089

98,515

18,387

35,106

34,577

99,683

96,053

Refinancing title and escrow transactions ⁽⁵⁾

3,651

577

13,171

1,310

3,651

3,546

13,380

9,664

Average title and escrow revenue per transaction ⁽⁶⁾

$                  3,590

$                  4,659

$                  3,600

$                  4,891

$                  3,590

$                  3,541

$                  3,593

$                  3,547

⁽¹⁾ Gross Transaction Value represents the sum of all closing sale prices for homes transacted by real estate professionals within our Brokerage or Franchise segments, as applicable, during the periods. The value of a single transaction is counted twice when our

real estate professionals represented both the buyer and the seller. This metric excludes any transactions from our international franchisees.

⁽²⁾ Total Transactions represents the sum of all transactions closed by our Brokerage or Franchise segments, as applicable, during the periods in which our real estate professionals represented the buyer or seller in the purchase or sale of a home. A single

transaction is counted twice when our real estate professionals represented both the buyer and the seller. This metric excludes any transactions from our international franchisees.

⁽³⁾ Net Royalty Per Side represents the average net royalty revenue earned by our Franchise segment per franchisee transaction side closed during the periods. Net royalty revenue reflects gross royalty revenue earned under our franchise agreements, net of

volume incentives and other contractual reductions paid or credited to franchisees. This metric excludes any transactions from our international franchisees.

⁽⁴⁾ Purchase Title and Escrow Transactions represents the number of title insurance policies and escrow settlements completed by our Integrated Services segment during the periods in connection with home purchase transactions.

⁽⁵⁾ Refinancing Title and Escrow Transactions represents the number of title insurance policies and escrow settlements completed by our Integrated Services segment during the periods in connection with mortgage refinancing transactions.

⁽⁶⁾ Average Title and Escrow Revenue Per Transaction represents the average revenue earned by our Integrated Services segment per title and escrow transaction completed during the periods, calculated as title and escrow revenue divided by the sum of

purchase and refinancing title and escrow transactions.

Compass, Inc.

Supplemental Pro Forma Revenue and Commissions and Other Related Expenses

(In millions, unaudited)

The following table presents Supplemental Pro Forma Revenue and Commissions and other related expenses for the Company ("Compass") and Anywhere Real Estate Inc. ("Anywhere") on a combined basis for the periods presented, as

if the Company's acquisition of Anywhere had occurred on January 1, 2025. For comparability, Anywhere's results have been included for the full period from January 1, 2025 through March 31, 2026, which incorporates the first eight days

of January 2026 prior to the closing of the acquisition. This pro forma financial information has not been prepared and presented in accordance with the requirements of Article 11 of Regulation S-X or Accounting Standards Codification 805,

Business Combinations, and it was prepared for illustrative and informational purposes only.

Certain amounts in Anywhere's historical financial statements have been reclassified to conform to the Company's new segment-level disclosure format, effective for the three months ended March 31, 2026. These reclassifications include (i) 

the reclassification of relocation revenue related to the Cartus business to Integrated Services, such that Integrated Services revenue now comprises relocation revenue in addition to title and escrow revenue, (ii) the elimination of

intercompany royalty revenue earned by the Franchise business from the Brokerage segment, and (iii) certain other reclassifications to Commissions and other related expenses to conform to the Company's current presentation.

Three Months Ended

March 31, 2025

June 30, 2025

September 30, 2025

December 31, 2025

March 31, 2026

Pro forma Revenue:

Brokerage:

Compass

$                      1,328

$                      2,014

$                      1,802

$                      1,657

$                      1,465

Anywhere

1,012

1,431

1,369

1,217

1,042

Total Brokerage revenue

$                      2,340

$                      3,445

$                      3,171

$                      2,874

$                      2,507

Franchise:

Compass

$                             6

$                             8

$                             8

$                             8

$                             8

Anywhere

91

118

123

113

87

Total Franchise revenue

$                           97

$                         126

$                         131

$                         121

$                           95

Integrated Services:

Compass

$                           22

$                           38

$                           36

$                           35

$                           31

Anywhere

118

158

155

139

124

Total Integrated Services revenue

$                         140

$                         196

$                         191

$                         174

$                         155

Pro forma revenue

$                      2,577

$                      3,767

$                      3,493

$                      3,169

$                      2,757

Pro forma Commissions and other related expenses:

Compass

$                      1,105

$                      1,685

$                      1,502

$                      1,384

$                      1,219

Anywhere

790

1,131

1,084

956

819

Pro forma commissions and other related expenses

$                      1,895

$                      2,816

$                      2,586

$                      2,340

$                      2,038