Company expects Q3 adjusted EBITDA of $275 mln to $305 mln
Compass expects to be free cash flow positive for full-year 2026
Overview
US real estate services firm's Q2 revenue rose 14% yr/yr, beating analyst expectations
Adjusted EBITDA for Q2 reached a record $363 mln, driven by cost synergies
Company raised cost synergy targets after achieving $300 mln in savings ahead of schedule
Result Drivers
Cost synergies - Co said realization of $300 mln in net cost synergies from the Anywhere integration drove results, with targets raised after achieving savings ahead of schedule
Brokerage outperformance - Co said brokerage gross transaction value and transactions grew faster than the overall US residential real estate market, contributing to revenue growth
Integrated services growth - Co said title and escrow transactions rose 7.6% yr/yr on a pro forma basis, with average revenue per transaction up 1.5%
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the it services & consulting peer group is "buy"
Wall Street's median 12-month price target for Compass Inc is $15.00, about 27.7% above its August 3 closing price of $11.75
The stock recently traded at 39 times the next 12-month earnings vs. a P/E of 20 three months ago
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