Compass Inc. reported $4.3 billion in second-quarter 2026 revenue and record adjusted EBITDA of $363 million, the brokerage said in results released August 4, as the country’s largest residential brokerage by agent count posted its first full quarter fully reflecting its acquisition of Anywhere Real Estate.
The company said revenue rose 14.3% year-over-year on a pro forma basis, from $3.77 billion in the second quarter of 2025 β outpacing the broader housing market, which Compass estimated grew roughly 6% over the same period. On a reported basis, revenue climbed 109%, a figure driven almost entirely by the addition of Anywhere’s brands, agents and transaction volume following the deal’s close in January.
Swing to Profitability
Compass posted GAAP net income of $92 million for the quarter, compared with a $39 million net loss a year earlier. Operating cash flow came in at $191 million and free cash flow at $180 million, and the company’s cash balance rose $210 million quarter-over-quarter to $694 million. Total long-term debt stood at $3.14 billion.
Brokerage gross transaction value reached $155.2 billion, up 15.9% year-over-year on a pro forma basis, on 153,009 closed transactions, a pro forma increase of 7.4%. Compass said both figures outperformed the broader market by roughly 1,000 basis points, up from an approximately 580-basis-point gap in the first quarter. The company ended the quarter with 83,184 agents and an agent retention rate of 95.5%, up from 94.1% in the first quarter, with 2,816 gross agent additions.
“Compass delivered very strong Q2 results, with Revenue and Adjusted EBITDA surpassing the high-end of our guidance range, driven by broad business strength and the successful realization of our cost synergies,” CEO Robert Reffkin said in the release. CFO Scott Wahlers said the company “delivered $4.3 billion in Revenue, representing growth of 14% year-over-year on a pro forma basis,” pointing to what he characterized as strong execution across the combined platform.
Integration and Ancillary Businesses
Compass said it had actioned its entire $300 million Year 1 net cost-synergy target from the Anywhere deal five months ahead of schedule, and raised that Year 1 target to $330 million while reaffirming a three-year synergy goal of $500 million. Management described integration of Anywhere β whose brands include Coldwell Banker, Better Homes and Gardens Real Estate, and Christie’s International Real Estate β as “progressing well,” though the release provided no brand-level performance breakout. Compass’s recent absorption of Coldwell Banker Warburg, one of New York’s largest independent franchises, is one visible piece of that consolidation underway.
Title and escrow transactions totaled 42,608, up 7.6% year-over-year on a pro forma basis, generating average revenue of $3,654 per transaction β a metric the company highlighted as evidence of growing attach rates for ancillary services. Franchise operations, newly reported following the Anywhere acquisition, logged $120.0 billion in GTV and 203,207 transactions. Net royalty rate per side declined 14.6% year-over-year to $505, which Compass attributed to newly acquired franchise brands carrying lower average sale prices than its core brokerage business.
For the third quarter, Compass guided to revenue of $3.85 billion to $4.05 billion and adjusted EBITDA of $275 million to $305 million β a sequential step-down the company attributed to normal seasonality. It also reiterated full-year non-GAAP operating expense guidance of $2.75 billion to $2.80 billion and said it expects positive free cash flow for 2026.
What It Means
The verified facts: Compass’s reported revenue, net income, EBITDA, agent count and transaction figures come directly from the company’s own earnings release and are consistent with GAAP and non-GAAP disclosures typically filed alongside an 8-K. The characterization of results as outpacing the market, and the framing of cost synergies as ahead of schedule, are company claims rather than independently audited comparisons β Compass selected its own market benchmark for the outperformance figures. Reffkin’s and Wahlers’ quotes reflect management’s self-interested framing of results, as is standard for earnings commentary, and should be read as such rather than as neutral analysis. The scrutiny Compass faces on other fronts β including a recent congressional inquiry into its private-listings practices β was not addressed in the earnings release.
What to watch: whether Compass can sustain its synergy realization pace as full integration of Anywhere’s roughly 45,000 additional agents proceeds, whether agent retention holds up as legacy Anywhere brands are folded into or reorganized under the Compass umbrella, and whether the declining net royalty rate per side signals broader margin pressure from lower-price-point franchise business. Q3 guidance implies a substantial sequential drop in both revenue and EBITDA from Q2 levels, which will test whether the quarter’s outperformance was durable or partly a function of seasonal timing.
