Compass (COMP) Q1 2026 earnings summary

Executive summary

• Closed the transformational Anywhere Real Estate acquisition in January 2026, integrating multiple brands and expanding operational scale, with significant integration and transaction expenses impacting results.

• Achieved record Q1 2026 adjusted EBITDA of $61M and revenue of $2.7B, exceeding guidance and up 99% year-over-year, with 99,504 total transactions and 84,187 agents engaged.

• Net income for Q1 2026 was $22M, reversing a $51M loss in Q1 2025, aided by a $401M one-time non-cash deferred tax benefit.

• Over $250M in net cost synergies actioned in Q1, raising synergy targets to $300M in year one and $500M over three years.

• Pro forma brokerage and franchise segments outperformed the flat U.S. market for the 20th consecutive quarter, with strong early wins in luxury and franchise segments.

Financial highlights

• Q1 2026 consolidated revenue reached $2.7B, at the upper end of guidance; pro forma revenue was $2.76B, up 7% year-over-year.

• Brokerage segment revenue was $2.467B; Franchise $90M; Integrated Services $147M.

• Adjusted EBITDA was $61M, including a $19M LTIP benefit; excluding this, adjusted EBITDA was $42M, still above guidance.

• Free cash flow was negative $168M due to transaction and integration costs, but cash balance increased to $484M at quarter-end.

• Operating expenses for Q1 2026 totaled $3.06B, up from $1.41B in Q1 2025, driven by integration and restructuring costs.

Outlook and guidance

• Q2 2026 revenue expected at $4.0B–$4.2B; adjusted EBITDA guidance of $310M–$350M.

• Full-year 2026 non-GAAP OpEx expected at $2.7B–$2.75B, reflecting synergy realization and typical OpEx inflation.

• Free cash flow expected to be positive for the remainder of the year and for full year 2026.

• Plan to aggressively delever, targeting repayment of $500M 9.75% notes in Q2 2027.