Compass reports best-ever quarter, takes aim at portals
Revenue was up 21.1%, profits nearly doubled and agent count surged in Q2. CEO Robert Reffkin also took time to blast portals and MLSs over listing policies.
Weak home sales have taken a toll on some real estate companies in recent quarters — but not Compass. The country's largest brokerage by sales volume posted its strongest-ever financial results today, CEO Robert Reffkin announced during the company's July 30 earnings call.
Reffkin said Compass tallied 10 new records during the second quarter, including all-time high revenue, adjusted EBITDA, net income, cash flow and more. Revenue came in at $2.06 billion, a 21.1% increase from the same period a year ago, while net income nearly doubled.
Compass also hit a recruiting milestone, ending the quarter with 20,965 principal agents, which the company said represents the highest level of organic principal agent recruiting during any quarter.
What Compass had to say
On M&As: In addition to the recruiting wins, Reffkin touched on Compass' M&A prospects, telling investors that the company's pipeline was "larger than it has ever been." So far this year, the brokerage finalized its acquisition of @properties Christie's International Real Estate and picked up notable independent firms in Colorado and Washington, D.C. The company appointed a new executive VP of mergers and acquisitions in May, signaling more growth to come.
"What do our record recruiting results and M&A pipeline show? They show that the demand for Compass is stronger than it has ever been and we are particularly pleased to be delivering these results in one of the toughest housing markets in history," Reffkin said.
On feuds with portals and MLSs: During his prepared remarks, Reffkin reiterated the company's position on "seller choice" and took shots at Zillow, which the company is suing, and MLSs. Compass filed a lawsuit against Northwest MLS in April.
"No agent wants to be told by a portal or an MLS how they must work, and none of their clients want to be limited in when, where and how they market their home. The reality is, the intention of the portal and MLS listing policies is control," Reffkin said.
Reffkin also said he was "amazed by the silence" from other industry leaders. "I hope more brokerage CEOs see our results as a signal that they will attract more agents if they fight for them and not simply acquiesce to portals and MLSs that ban and fine agents for marketing listings outside their platforms."
No gains in private exclusives: Although Compass has heavily promoted its 3-phased marketing strategy and push for private listings, Reffkin noted that the number of private exclusives, which the company previously put at 6,600, has "stayed at basically the same level throughout the last number of months."
Despite the flat growth, "demand, of course, remains high" for the company's marketing strategy, Reffkin said, adding, "What seller wouldn't want choice?"
Key numbers
Revenue: $2.06 billion in Q2, representing a 21.1% increase from the same period a year ago. Compass indicated that the acquisition of @properties Christie's International Real Estate contributed 10.4% of the total revenue growth from the second quarter.
Cash and cash equivalents: $177.3 million at the end of Q2, up from $127 million at the end of the previous quarter.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization): $125.9 million in Q2 compared to $77.4 million from the same period a year ago.
Net income/loss: Net income of $39.4 million, an increase of $18.7 million year-over-year.
Transactions: Compass said its agents closed a total of 73,025 transactions in Q2 2025, an increase of 20.9% from the 60,390 deals closed in Q2 2024.
Agent count: 20,965 principal agents at the end of Q2, up 23.3% year-over-year.
Q3 outlook: Anticipated revenue of $1.725 billion to $1.850 billion and an adjusted EBITDA of $60 million to $80 million for Q3.
Notable moves
During the second quarter, Compass appointed Gavin Swartzman, former Peerage Realty Partners CEO, as president of Christie's International Real Estate.
Chief Financial Officer Kalani Reelitz, meanwhile, has announced his departure. Reelitz joined Compass in Nov. 2022 and will stay on through the end of August; Compass Chief Accounting Officer Scott Wahlers will then take over as CFO.