Compass, Inc. shares surged 11.75% in post-market trading on Tuesday after the real estate brokerage reported second-quarter results that significantly exceeded Wall Street expectations and raised its forward guidance.
The company posted revenue of $4.31 billion, handily beating the consensus estimate of approximately $4.09 billion. Earnings per share came in at $0.11, up from $0.07 a year earlier and well above the $0.08 analysts had forecast. The outperformance was driven by $300 million in net cost synergies realized ahead of schedule from the integration of Anywhere, which includes brands like Coldwell Banker and Century 21. Compass also raised its Year 1 net cost synergy target to $330 million and its 2026 target to $220 million, while brokerage gross transaction value and transactions grew faster than the overall U.S. residential market.
Compass returned to GAAP profitability with net income of $92 million and delivered record adjusted EBITDA of $363 million. Looking ahead, the company issued third-quarter revenue guidance of $3.85 billion to $4.05 billion, exceeding the $3.77 billion consensus, and said it expects to be free cash flow positive for the full year 2026, further fueling investor optimism in the after-hours session.
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