Given accelerated progress, how should investors think about upside beyond the $500 million target and the pace of realization in 2027?

Scott expressed satisfaction with the rapid progress, noting that deeper operational synergies and system integrations will take longer, slowing the pace compared to the first six months. He reiterated that the company will continue seeking opportunities beyond the $500 million target, drawing parallels to past cost-cutting successes, but declined to provide specific 2027 guidance. “We're not going to stop looking for opportunities once we get to the $500 million goal. And so I think it's safe to assume or reasonable to assume that based on the pace that we've come out in the first 6 months that we will hit our goals over time and potentially exceed them.”

How replicable is the Chicago "Coming Soon" success in other markets, and what is the peak upside for transactions per agent in a normal market?

Robert stated that Chicago's success demonstrates the benefits of a free market without restrictions, and that 60% of Compass's markets now allow agents to share listings on their sites while also sharing with MLS. He expects this to become the norm. Scott noted that transactions per agent will continue to rise as the company recruits more productive agents and less productive agents churn out, citing that 49% of agents who left had zero GCI in the last 12 months. “It's giving us even more confidence and more conviction. And it's also making our real estate professionals even more excited to continue to make progress here as we will. I don't think Chicago is that unique. To be clear, it is becoming the norm.”

What are the market share assumptions for Compass during a market recovery, especially given its luxury focus, and what is the outlook for agent growth in Q3 and Q4?

Scott clarified that guidance is not based on market share assumptions but on current system visibility, with July representing 40% of Q3 volume. For agent growth, he emphasized recruiting productive agents, noting that the enterprise sales team will be fully rolled out to acquired brands by early 2027, leading to steady growth. He stressed that agent count is a directional indicator, not the sole factor for growth, as productivity varies significantly. “Look, we don't really think about guidance in terms of market share. I mean we really haven't changed our philosophy on guidance. And the way we do it is really consistent with how we've always done it for that upcoming quarter. It's really based on what we're seeing in our systems at this point in time.”

COMP

Compass (COMP) Q2 FY26 earnings call: guidance and Q&A

Q: Update on "Coming Soon" adoption, especially after the Redfin partnership, and how network effects are materializing.

Robert stated that "Coming Soon" adoption for new Compass Brokerage listings approached 57% in July, with an expectation to reach 80% by end of Q3. He highlighted Chicago's 111% YoY increase in Compass.com sessions due to "Coming Soon" inventory, outpacing the average 34% growth. He emphasized the "no downside" for agents and sellers using "Coming Soon" and "Private Exclusive" as price testing tools. “For all new listings, 57% of them start off as coming soon, where we believe that we're on a path to have 80% of all new Compass Brokerage listings start off as coming soon in August and September.”

Earnings call· Jun 2026 (Q2 FY26)· Real Estate· Aug 4, 2026

Source: earnings call transcript

Executive summary

Compass Q2 FY26 — Record Revenue & Adjusted EBITDA, Accelerated Cost Synergies, and Strong Agent Outperformance

Compass delivered a record second quarter, driven by strong revenue and adjusted EBITDA, significantly outperforming the broader real estate market. The company accelerated its cost synergy realization and made substantial progress on debt reduction. Strategic initiatives, including the rollout of its unified technology platform and the Rocket-Redfin partnership, are infusing competition into the real estate ecosystem and enhancing agent productivity, positioning Compass for continued growth and market share gains.

Highlights

Record Q2 revenue of $4.3 billion, up 14% year-over-year.
Record Q2 adjusted EBITDA of $363 million, almost triple prior year (stand-alone basis).
Brokerage business transactions up 7.4% year-over-year, outperforming the market (up 3.5%) for 21 consecutive quarters.
Net debt to adjusted EBITDA lowered by roughly one turn to 3.3x (from 4.2x in Q1 FY26).
Actioned $300 million in net cost synergies 5 months ahead of plan, now targeting $330 million for year 1.

Concerns

Commissions and other related expenses as a percentage of Brokerage segment revenue increased by 43 basis points to 82.2% (from 81.7% pro forma YoY) due to mix.
Gross agent adds in the quarter were 2,816, down from 3,503 in Q1, reflecting a shift in recruiting practices.
Q3 FY26 revenue guidance of $3.85 billion to $4.05 billion is lower than Q2 FY26 actual revenue of $4.3 billion.

Guidance & targets

Category	Target	Timeline	Confidence
Q3 FY26 Consolidated Revenue	$3.85 billion to $4.05 billion high materiality	Q3 · FY26	High
Q3 FY26 Consolidated Adjusted EBITDA	$275 million to $305 million high materiality	Q3 · FY26	High
Full-year 2026 Non-GAAP Operating Expenses	$2.75 billion to $2.80 billion medium materiality	FY26	High
Full-year 2026 In-year realized net cost synergies	$220 million high materiality	FY26	High
Full-year 2026 In-year realized OpEx synergies	$150 million high materiality	FY26	High
Full-year 2026 In-year realized CapEx synergies	$70 million medium materiality	FY26	High
Total actioned net synergy target (Year 1)	$330 million high materiality	Year 1 (2026)	High
Total actioned net synergy target (long-term)	More than $500 million high materiality	3 years	Medium
Q3 FY26 Basic weighted average share count	767 million to 769 million shares low materiality	Q3 · FY26	High
Q3 FY26 Free cash flow	Positive medium materiality	Q3 · FY26	High
Debt redemption of 9.75% notes	$500 million high materiality	Q2 · 2027	High
Net debt to adjusted EBITDA ratio	Move into the 2s high materiality	end of 2026	High
Long-term Adjusted EBITDA (4.1M existing home sales)	~$1 billion high materiality	Long-term	Medium
Long-term Unlevered Free Cash Flow (4.1M existing home sales)	~$750 million high materiality	Long-term	Medium
Long-term Adjusted EBITDA (4.8M existing home sales)	~$1.5 billion high materiality	Long-term	Medium
Long-term Unlevered Free Cash Flow (4.8M existing home sales)	~$1 billion high materiality	Long-term	Medium
Long-term Adjusted EBITDA (5.5M existing home sales)	$2 billion high materiality	Long-term	Medium
Long-term Unlevered Free Cash Flow (5.5M existing home sales)	$1.5 billion high materiality	Long-term	Medium
Long-term Adjusted EBITDA (6M existing home sales)	$2.5 billion high materiality	Long-term	Medium
Long-term Unlevered Free Cash Flow (6M existing home sales)	$2 billion high materiality	Long-term	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Brokerage Outperformed market GTV by 1000 bps. Revenue growth supported by AI boom in Northern California. Commissions and other related expenses as a percentage of Brokerage segment revenue increased by 43 basis points YoY pro forma due to mix. Gross transaction value: $155.2 billionTransactions growth: 7%Average selling price appreciation: 8% to just over $1 millionMarket GTV growth: 6%Agent retention: 95.5%Agent retention (excl. $0 GCI): 97.7%Agent retention (excl. <$20k GCI): 98.7%Commissions and other related expenses as % of revenue: 82.2%Compass stand-alone commission metric: flat YoYGross agent adds: 2,816	$3.96 billion	15%	—	$377 million
Franchise Outperformed market GTV by 570 bps, led by luxury brands Sotheby's International Realty and Corcoran. GTV growth: 11.7%Market GTV growth: 6%	$135 million	7.6%	—	$87 million
Integrated Services Driven by strong performance in title and escrow. Focus on unifying T&E operations to Compass's platform for efficiencies. Title and escrow transactions growth: 7.6%Purchase transactions growth: 6%Refi transactions growth: 25%Cartus new clients secured: 15	$211 million	7.7%	—	$52 million

COMP operating KPIs by quarter

COMP operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Gross transaction value Brokerage	$97.3B Gross transaction value for the Brokerage segment was $97.3 billion in the first quarter. Source: earnings call transcript	$155.2B Gross transaction value for the brokerage segment was $155.2 billion in the second quarter, up 16% year-over-year on a pro forma basis, which reflects a 7% increase in transactions and average selling price appreciation of 8% to an average price of just over $1 million. Source: earnings call transcript	+59.5%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

Rocket-Redfin Strategic partnership to integrate "Coming Soon" listings on Redfin's platform.

Launched "Coming Soons" on Redfin in late Q1. Led to increased consumer traffic on Compass.com in markets with high adoption.

Anywhere Acquisition of brokerage brands (Coldwell Banker, Corcoran, Sotheby's International Realty) and other assets.

Acquisition completed in January. Integration of entities is progressing quickly, leading to combined operations.

Capital programs

Cost Synergy Program underway $500 million

Period spend: $330 million

Spent to date: $300 million

Start: January 2026

Benefit:$420 million expected through P&L, $80 million expected as CapEx synergies

Achieved Year 1 target of $300 million 5 months ahead of plan. Now targeting $330 million for Year 1. Expect to achieve $500 million in less than 3 years and more than $500 million in 3 years.

Risks & headwinds

Anti-competitive MLS rules and dominant portal practices Ongoing

MLS fines up to $5,000 for marketing outside MLS.

Mitigation:Robert Reffkin is actively working to infuse competition into MLS and portal ecosystems, supporting MLSs that compete and advocating for seller choice. Partnership with Rocket-Redfin is an example of driving competition.

Market mix shift impacting brokerage segment margins Q2 FY26

Commissions and other related expenses as a percentage of Brokerage segment revenue increased by 43 basis points to 82.2% from 81.7% on a pro forma basis YoY.

Mitigation:Due to mix (revenue growth in lower-margin markets or agents on higher split schedules); Compass stand-alone brand commission metric was flat YoY.

Debt call provisions limiting early debt reduction Until Q2 2027

$500 million of 9.75% notes have no call provision until April 2027; 7% notes have a 1.75% call premium until April 2027.

Mitigation:Company plans to continue building cash position and invest in short-term treasuries (mid-3% yields) until call provisions expire, then redeem debt. Net debt levels are reducing due to growing cash.

What to watch in Q3 FY26

"Coming Soon" adoption for Compass Brokerage listings

By end of Q3 FY26

Current Approaching 57% of new listings (most recent week)

Target 80% of new listings

Why it matters

Indicates the success of the 3-phase marketing strategy and its potential to drive traffic and leads, impacting agent productivity and market share.

By the end of the third quarter, I would expect 80% of Compass Brokerage listings to launch as a coming soon on Compass.com and Redfin and the total number of Coming Soons to build from there as we expand the offering to all of our brands.

Find out whether COMP delivers this. Inve re-checks your case every morning.

Q&A highlights

Update on "Coming Soon" adoption, especially after the Redfin partnership, and how network effects are materializing.

Robert stated that "Coming Soon" adoption for new Compass Brokerage listings approached 57% in July, with an expectation to reach 80% by end of Q3. He highlighted Chicago's 111% YoY increase in Compass.com sessions due to "Coming Soon" inventory, outpacing the average 34% growth. He emphasized the "no downside" for agents and sellers using "Coming Soon" and "Private Exclusive" as price testing tools.

“For all new listings, 57% of them start off as coming soon, where we believe that we're on a path to have 80% of all new Compass Brokerage listings start off as coming soon in August and September.”

asked by Elizabeth Langan · answered by Robert Reffkin

2 min read 5 chapters

Detailed narrative

Record Q2 Performance and Market Outperformance

Compass reported record Q2 FY26 revenue of $4.3 billion, a 14% year-over-year increase, and record adjusted EBITDA of $363 million, nearly tripling the prior year's stand-alone figure. The brokerage business significantly outperformed the market, with transactions up 7.4% year-over-year compared to the market's 3.5%, marking 21 consecutive quarters of outperformance for the Compass stand-alone brand.

Gross transaction volumes (GTV) for brokerage were up 16% year-over-year, reflecting a 1000 basis point outperformance against the market's 6% growth.

Accelerated Cost Synergies and Integration

The company achieved its entire Year 1 target of $300 million in net cost synergies five months ahead of schedule, now expecting to action $330 million by year-end. Realized in-year net cost synergies are projected to be $220 million, with $150 million impacting OpEx and $70 million reducing CapEx.

The integration of Anywhere businesses is progressing rapidly, with a unified home platform technology now available to over 4,000 agents in pilot beta, receiving an 82% CSAT score.

Infusing Competition in Real Estate

Robert Reffkin emphasized Compass's role in driving competition within the real estate industry, particularly against Multiple Listing Services (MLSs) and dominant portals. He highlighted the Rocket-Redfin partnership, which has generated over 60,000 leads for Compass agents and led to a 111% year-over-year increase in Compass.com sessions in Chicago, a market with high "Coming Soon" adoption.

The company advocates for seller choice in marketing properties, noting that 90% of MLSs are expected to allow "Coming Soon" and "Private Exclusive" listings by year-end.

AI Strategy for Efficiency and Productivity

Compass is leveraging AI to both reduce operating expenses and enhance agent productivity. AI is being deployed within business functions, identifying $8 million in savings and cost avoidance opportunities. Additionally, 50% to 60% of new code in the technology organization is now AI-produced.

An AI assistant, integrated into the platform, helps agents orchestrate over 90 tools using natural language prompts, with early feedback indicating significant time savings and lead generation capabilities.

Financial Strength and Long-Term Potential

Cash on hand increased by $210 million to $694 million, reducing net debt to adjusted EBITDA to 3.3x from 4.2x in Q1 FY26. The company expects to move into the 2s by year-end and plans to redeem $500 million of high-cost debt in Q2 2027.

Robert Reffkin reiterated long-term earnings potential, projecting $1.5 billion in adjusted EBITDA and $1 billion in unlevered free cash flow at 4.8 million existing home sales, and up to $2.5 billion in adjusted EBITDA and $2 billion in unlevered free cash flow at 6 million home sales.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.