--- title: "Compass | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 2.704 B" type: "News" locale: "en" url: "https://longbridge.com/en/news/285260771.md" datetime: "2026-05-05T20:22:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285260771.md) - [en](https://longbridge.com/en/news/285260771.md) - [zh-HK](https://longbridge.com/zh-HK/news/285260771.md) --- # Compass | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 2.704 B Revenue: As of FY2026 Q1, the actual value is USD 2.704 B, beating the estimate of USD 2.667 B. EPS: As of FY2026 Q1, the actual value is USD 0.03. EBIT: As of FY2026 Q1, the actual value is USD -318 M. #### Financial Performance - **Net Income:** Compass, Inc. reported a GAAP Net Income of $22 million for Q1 2026, a significant improvement from a net loss of - $51 million in Q1 2025. This includes a non-cash tax benefit of $401 million and $183 million in merger transaction and integration expenses in Q1 2026. - **Adjusted EBITDA:** Adjusted EBITDA for Q1 2026 was $61 million, up from $16 million in Q1 2025. The Adjusted EBITDA in Q1 2026 excludes the $401 million non-cash tax benefit and $183 million in merger transaction and integration expenses. - **Revenue:** Total revenue in Q1 2026 increased by 99% year-over-year to $2.70 billion, compared to $1.36 billion in Q1 2025. Pro forma revenue increased by 7% year-over-year to $2.76 billion. - **Operating Expenses:** Total operating expenses for Q1 2026 were $3,055 million, compared to $1,410 million in Q1 2025. Key components include: - Commissions and other related expenses: $2,008 million in Q1 2026, up from $1,105 million in Q1 2025. - Sales and marketing: $97 million in Q1 2026, up from $58 million in Q1 2025. - Operations and support: $398 million in Q1 2026, up from $132 million in Q1 2025. - Technology and development: $119 million in Q1 2026, up from $50 million in Q1 2025. - General and administrative: $81 million in Q1 2026, up from $27 million in Q1 2025. - Anywhere merger transaction and integration expenses: $183 million in Q1 2026. - Restructuring costs: $6 million in Q1 2026, down from $9 million in Q1 2025. - Depreciation and amortization: $163 million in Q1 2026, up from $29 million in Q1 2025. #### Cash Flow - **Operating Cash Flow:** Q1 2026 operating cash flow was - $157 million, compared to $23 million in Q1 2025. - **Free Cash Flow:** Q1 2026 free cash flow was - $168 million, compared to $19 million in Q1 2025. #### Liquidity & Capital Structure - At the end of Q1 2026, Compass, Inc. had a cash balance of $484 million and total long-term debt of $3.14 billion. #### Segment Revenue (Q1 2026) - **Brokerage:** $2,467 million. - **Franchise:** $90 million. - **Integrated Services:** $147 million. #### Operational Metrics **Brokerage Segment:** - **Gross Transaction Value (GTV):** Brokerage GTV was $97.3 billion in Q1 2026, an 85.7% increase year-over-year from $52.4 billion in Q1 2025. Pro forma Brokerage GTV increased by 7.3% year-over-year to $98.7 billion from $92.0 billion in Q1 2025. - **Transactions:** Brokerage agents closed 99,504 transactions in Q1 2026, a 102.6% increase year-over-year from 49,121 in Q1 2025. Pro forma Brokerage transactions increased by 2.6% year-over-year to 101,147 from 98,582 in Q1 2025. - **Total Agents:** At the end of Q1 2026, total Brokerage agents were 84,187, compared to 36,990 at the end of Q4 2025. Pro forma agent retention rate in Q1 2026 was 94%, flat compared to Q4 2025. **Franchise Segment:** - **Gross Transaction Value (GTV):** Franchise GTV was $76.9 billion in Q1 2026, a 1,131% increase year-over-year from $6.2 billion in Q1 2025. Pro forma Franchise GTV increased by 4.6% year-over-year to $80.7 billion from $77.1 billion in Q1 2025. - **Transactions:** The Franchise network closed 137,347 transactions in Q1 2026, a 2,145% increase year-over-year from 6,117 in Q1 2025. Pro forma franchise transactions increased by 0.1% year-over-year to 143,406 from 143,206 in Q1 2025. - **Net Royalty Rate Per Side:** Net royalty rate per side was $440 in Q1 2026, a 33% decrease year-over-year from $660 in Q1 2025. Pro forma net royalty per side decreased by 5.0% year-over-year to $438 from $461 in Q1 2025. **Integrated Services Segment (Title and Escrow - T&E):** - **Total T&E Transactions:** 30,321 in Q1 2026, a 631% increase year-over-year from 4,150 in Q1 2025. Pro forma T&E transactions increased by 13.2% year-over-year to 31,698 from 27,903 in Q1 2025. - **Average Revenue Per Transaction (Pro forma):** $3,514 in Q1 2026, up 1% year-over-year. - **Purchase T&E Transactions:** 25,003 in Q1 2026, a 543% increase year-over-year from 3,887 in Q1 2025. Pro forma T&E purchase transactions increased by 4% year-over-year to 26,171 from 25,236 in Q1 2025. - **Refinance T&E Transactions:** 5,318 in Q1 2026, a 1,922% increase year-over-year from 263 in Q1 2025. Pro forma refinance transactions increased by 100% year-over-year to 5,527 from 2,767 in Q1 2025. #### Outlook / Guidance - For Q2 2026, Compass, Inc. expects revenue between $4.0 billion to $4.2 billion and Adjusted EBITDA between $310 million to $350 million. - The company anticipates Non-GAAP OPEX of $2.70 billion to $2.75 billion for the full year 2026, including $130 million of realized OPEX synergies. - Compass, Inc. also expects to be free cash flow positive for the full year 2026. ### Related Stocks - [COMP.US](https://longbridge.com/en/quote/COMP.US.md) ## Related News & Research - [Yext to Announce First Quarter Fiscal Year 2027 Financial Results on June 2, 2026 | YEXT Stock News](https://longbridge.com/en/news/286970613.md) - [Short Interest in Vinci Compass Investments Ltd. 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