Compass Inc

F:91D

Record quarter: Compass reported record Q2 revenue of $4.3 billion and record adjusted EBITDA of $363 million, both above the high end of guidance.

Synergies ahead: The company said it has already actioned the full $300 million year-1 cost synergy target and now expects $330 million actioned in 2026, with $220 million realized in-year.

Leverage improving: Cash rose to $694 million, free cash flow was $180 million, and net debt to adjusted EBITDA improved to 3.3x from 4.2x in Q1.

Market outperformance: Brokerage transactions rose 7.4% versus 3.5% for the market, while brokerage GTV rose about 16% versus 6% for the market.

Platform rollout: The new home platform reached more than 4,000 agents in beta, and management said nearly 50,000 additional owned-brand agents will get access by the end of September.

Guidance up: Full-year OpEx guidance was raised to $2.75 billion to $2.80 billion, mainly because of a recent acquisition and higher compensation tied to outperformance.

AI and coming soon: Management emphasized AI to cut costs and improve agent productivity, while saying Coming Soon adoption in the Compass brand reached 57% in July and should approach 80% by the end of Q3.