Real estate services firm Compass Q3 revenue meets analyst estimates

Overview

• US real estate services firm's Q3 revenue rose 12% yr/yr, meeting analyst expectations

• Company posted Q3 net income of $62 mln, reversing a loss from last year

• Adjusted EBITDA reached a Q3 record, driven by cost synergies and OPEX discipline

Outlook

• Compass sees Q4 revenue between $3.15 bln and $3.35 bln

• Company expects Q4 adjusted EBITDA of $100 mln to $130 mln

• Compass lowers 2026 non-GAAP OPEX forecast to $2.71 bln-$2.73 bln from $2.75 bln-$2.80 bln

Result Drivers

• COST SYNERGIES AND OPEX DISCIPLINE - Co said record adjusted EBITDA was driven by cost synergies and operating expense discipline

• BROKERAGE GTV OUTPERFORMANCE - Organic brokerage gross transaction value grew 7.5% yr/yr, outpacing the broader U.S. residential market

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 3 "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 is $15.00, about 49.4% above its November 4 closing price of $10.04

• The stock recently traded at 51 times the next 12-month earnings vs. a P/E of 39 three months ago

Reuters Recommended Reads

• Nov 5 - Real REMAX Group Q3 revenue rises 28%, beats estimates

• Nov 4 - Canada's Colliers misses Q3 revenue estimates, cuts outlook

• Nov 4 - Cushman & Wakefield Q3 adjusted EPS beats estimates on leasing growth in Americas

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)