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ompass reported its most powerful third‑quarter performance ever, with revenue hitting $1.85 billion—a 23.6 % jump year‑over‑year—and adjusted EBITDA soaring to $93.6 million, up 80 % from the same period last year. The company also posted a GAAP net loss of $4.6 million, but after removing $7.5 million of merger‑related costs tied to the Anywhere acquisition, the adjusted loss would have been a $2.9 million profit. Cash and cash equivalents stood at $170.3 million, and the revolving credit facility was fully repaid following the Christie’s purchase.
The CEO, Robert Reffkin, highlighted that Christie’s International Real Estate will serve as a “blueprint” for how Compass will weave the Anywhere franchise into its operations and sustain organic growth. He praised the Christie’s deal for its proven ability to boost top‑line and bottom‑line figures post‑close, noting that the boutique brand has expanded its title business, agent roster, and profitability. Compass added four new affiliates to Christie’s in Q3 and plans six more.
Reffkin also expressed confidence in closing the Anywhere transaction in the second half of 2026, calling it “highly compelling” and “pro‑competitive.” He projected cost synergies of more than $300 million, with roughly half materializing in the first year after the deal closes. The acquisition is expected to give agents, consumers and franchise owners greater choice and improved products.
Compass is accelerating its AI strategy. The “Compass AI 2.0” platform, already live with select clients, lets agents perform complex tasks via voice commands. The company anticipates a company‑wide rollout before the next earnings call. Reffkin also underscored the value of conversational AI—particularly ChatGPT—for agent discovery. He noted that buyers now ask models like ChatGPT for the best local agents, and that these referrals are based on verifiable transaction history, unique listings and client reviews rather than commission incentives.
Key Q3 metrics:
* Revenue: $1.85 billion (23.6 % YoY), with organic growth of 11 % excluding M&A activity.
* Adjusted EBITDA: $93.6 million (80 % YoY).
* Net loss: $4.6 million GAAP; $2.9 million adjusted.
* Cash: $170.3 million.
* Transactions: 67,886 closed by owned‑brokerage agents, a 21.5 % YoY increase (6.6 % organic).
* Gross transaction value: $70.7 billion, up 22.5 %.
* Principal agents: 21,550 total, with 851 added organically in Q3; retention at 97.3 %. Compass expects another 800 organic additions in Q4.
Leadership changes in Q3 included the appointment of Ethan Glass as chief legal officer. Glass, who joined in September, brings antitrust litigation experience from the National Association of Realtors, the Department of Justice, and Cooley LLP. The finance team also saw a shift: former CFO Kalani Reelitz resigned in August, and Chief Accounting Officer Scott Wahlers was promoted to CFO.
Overall, Compass delivered record revenue, profits, and market share amid a challenging housing market, while positioning itself for continued growth through strategic acquisitions, AI innovation, and a robust agent network.
