NEW YORK, May 6, 2026, 16:02 EDT
Shares of Compass Inc. surged roughly 26% Wednesday, with the stock getting a lift after the real estate brokerage reported a first-quarter profit and projected second-quarter revenue that topped Wall Street’s expectations. The results mark an initial vote of confidence from investors in Compass’s acquisition of Anywhere Real Estate.
Compass is under the gun to show its January buyout of Anywhere was about more than just bulking up. By turning Anywhere into a wholly owned subsidiary, Compass snagged a big roster of brokerage and franchise brands—a move that lands while home sales are still feeling the crunch.
Compass is projecting second-quarter revenue in the range of $4.0 billion to $4.2 billion, topping Bloomberg’s analyst consensus of $3.95 billion. For the first quarter, revenue hit $2.70 billion, beating the $2.65 billion estimate.
Compass posted revenue of $2.70 billion, up 99% from the previous year, reflecting the inclusion of Anywhere’s results. The company swung to a GAAP net profit of $22 million after last year’s $51 million loss, and logged adjusted EBITDA of $61 million. Adjusted EBITDA is Compass’s preferred profit metric before interest, taxes, depreciation, and amortization.
Chief Executive Robert Reffkin pointed to revenue landing above Compass’ guidance midpoint and adjusted EBITDA beating the top of its range, crediting strong cost controls and gains on the top line. CFO Scott Wahlers noted this was Compass’ initial quarter operating as a combined entity after the Anywhere deal closed, emphasizing the company’s continued focus on managing expenses and reducing leverage.
The company reported it had “actioned” over $250 million in net cost synergies by April 1—just 82 days after the Anywhere acquisition closed. Management bumped up its year-one actioned cost savings goal to $300 million, previously $250 million, and set a new three-year target of $500 million, up from $400 million. In its words, actioned savings are steps already in progress—cuts or efficiencies underway, though the impact may not hit cash figures right away. SEC
Compass highlighted operating gains in its results. Brokerage gross transaction value—the total dollar amount of homes its agents sold—reached $97.3 billion. Looking at pro forma numbers, which merge the companies for the year-ago comparison, brokerage GTV climbed 7.3%. For context, total U.S. residential market volume increased just 1.5% over the same period, according to the company.
Next up for the integration: tech. Compass is aiming to roll out its Home Platform to Anywhere brokerage agents in Q3 2026, with the franchise network following in Q1 2027. That timeline matters, since the acquisition pulls in brands like Coldwell Banker, Corcoran, Century 21, ERA, and Sotheby’s International Realty—meaning Compass stands to onboard a much larger group of agents onto its systems.
BTIG’s Jake Fuller stands by his “buy” rating on Compass and keeps a $12 price target, Barron’s says, pointing to potential gains even if the housing market stays flat. Shares were last seen at $9.13, off an earlier intraday high of $10.55. Barron’s
Competition remains intense. Compass, Zillow, and Redfin are tangled in an ongoing battle over online real estate listings. Back in March, Compass dropped its antitrust suit against Zillow, after Zillow made changes to a listing policy that Compass had criticized as the “Zillow ban.” Reuters
The quarter came with baggage. Compass posted negative free cash flow of $168 million for the first three months, mostly tied to the Anywhere deal and associated cash outlays. By the end of March, long-term debt stood at $3.14 billion. In its own filings, the company highlights risk factors like elevated mortgage rates, tight inventory, integration hurdles, and mounting debt expenses.
Right now, investors want to see that execution delivers results. Compass faces another hurdle: Can those cost reductions stick as the busier spring selling season kicks in? The company is projecting adjusted EBITDA of $310 million to $350 million for the period, and it maintains that free cash flow for the full year will flip positive.
