Compass, Inc. Reports Record Third Quarter 2025 Results

Robert Reffkin, Founder and CEO of Compass, celebrated the company's performance, stating, "Compass delivered the strongest Q3 results in our history, marked by several quarterly records including Revenue, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, T&E attach, mortgage JV profitability, and weekly agent sessions on the platform." The company experienced a notable influx of talent, with 851 principal agents joining organically in the third quarter, resulting in a 97.3% retention rate.

Compass outperformed the broader real estate market by a significant margin, achieving a 7% increase in organic transactions and a 22% rise in total transactions, while the overall market saw only a 2% increase year-over-year. With this performance, Compass marked its 18th consecutive quarter of organic market growth, solidifying its competitive edge. The company's organic market share rose by 32 basis points while total market share increased to 5.63%.

Compass reported revenue of $1.85 billion for Q3 2025, marking a robust 23.6% year-over-year growth. This figure met the high end of the company's guidance range. Adjusted EBITDA reached $93.6 million, an 80% increase from the prior year, while free cash flow surged 124% to $73.6 million, reflecting the seventh consecutive quarter of positive cash flow. The company also reduced its revolver debt by $50 million, finishing the quarter with a solid cash position of $170.3 million.

The operational metrics were equally impressive, with Compass closing 67,886 total transactions in Q3 2025, a 21.5% increase compared to the same period last year. The gross transaction value (GTV) reached $70.7 billion, a 22.5% rise from Q3 2024. The company's technology platform also hit a record average of 22 weekly sessions per agent, showcasing the growing engagement and utility of its proprietary tools.

Compass introduced several innovative features throughout Q3 2025, enhancing its platform's capabilities:

For the upcoming fourth quarter, Compass provides guidance for revenue between $1.590 billion and $1.690 billion, with Adjusted EBITDA projected between $35 million and $49 million. The company has also revised its full-year 2025 outlook, reducing its non-GAAP operating expenses to a range of $1.000 billion to $1.005 billion.

With a strong emphasis on innovation and strategic growth, Compass continues to solidify its position as a leader in the real estate industry, navigating market challenges while delivering impressive results.

In light of these developments, management will hold a conference call at 8:30 a.m. ET on November 4, 2025, to discuss the results and outlook further. Investors and analysts will be keen to hear more about Compass's future plans as they build on this record performance.