Key Highlights

● Second-quarter revenue rose 109 per cent to $4.31 billion, including the Anywhere acquisition.

● Pro forma revenue, including Anywhere in both periods, grew 14.3 per cent.

● Adjusted EBITDA reached a second-quarter record of $363 million, an 8.4 per cent margin.

● Compass raised its full-year cost synergy target to $330 million from $300 million.

Compass (NYSE:COMP), the residential real estate brokerage platform, reported second-quarter 2026 results on 4 August 2026. Revenue was $4.31 billion, up 109% from $2.06 billion, but the comparison is distorted by the Anywhere acquisition, which closed in early January 2026. On a pro forma basis, with Anywhere included in both periods, revenue grew 14.3%. GAAP net income was $92 million, against $39 million a year earlier. Adjusted EBITDA, a non-GAAP measure, was $363 million, an 8.4% margin, which the company called an all-time record for a second quarter. Operating cash flow was $191 million and free cash flow was $180 million.

Market share and agent numbers

Brokerage gross transaction value was $155.2 billion, up 15.9% pro forma, while the company put growth in the overall United States residential market at 6%. Brokerage transactions rose 7.4% pro forma against 3.5% for the market. Management therefore claims continued outperformance, a comparison drawn from the company's own measures. Title and escrow transactions rose 441% to 42,608, or 7.6% pro forma. Chief executive Robert Reffkin said the brokerage has outperformed the market organically for 21 consecutive quarters. The agent count slipped to 83,184 from 84,187 in the first quarter, which Compass attributed mainly to separating low-productivity agents at one acquired brand; retention was 95.5%. Franchise gross transaction value was $120.0 billion, up 11.7% pro forma, but net royalty per side was $505, down from $591 on a reported basis, reflecting lower-priced brands acquired with Anywhere. A partnership with Redfin, launched at the end of the first quarter, delivered more than 60,000 leads to agents, according to the company.

Synergies, cash and debt

Compass said it had actioned its full first-year net cost synergy target of $300 million five months early, and raised that target to $330 million. The realised 2026 target rose to $220 million, of which $150 million runs through the income statement and $70 million is capital expenditure. The three-year, $500 million net cost synergy target was unchanged. Cash rose $210 million over the quarter to $694 million, the revolving facility was undrawn and long-term debt was $3.14 billion. The company intends to redeem its $500 million 9.75% notes when they first become callable in the second quarter of 2027, and expects roughly $470 million of future cash tax savings from $1.8 billion of net operating losses.

Synergies Are Ahead of Schedule, but Debt Remains High

Compass hit its first-year cost synergy target five months early and raised it further, while brokerage transaction value outperformed the broader housing market for a 21st straight quarter by the company's own measure. Agent count slipped slightly as low-productivity agents at an acquired brand were separated, and with more than $3 billion of long-term debt against a business built substantially through acquisition, pro forma figures will keep mattering more than headline growth until the comparison base normalizes.