Compass, Inc., the largest residential real estate brokerage in the United States by sales volume, saw its stock close slightly higher on Feb. 25 as investors positioned for the company's fourth-quarter and full-year 2025 earnings report, due after market close on Feb. 26.

Compass (NYSE: COMP) ended the trading session at $9.51, up 0.85% or 8 cents, on volume of nearly 19.7 million shares. The stock has traded in a 52-week range of $5.66 to $13.95, reflecting volatility in the housing market amid fluctuating interest rates and economic uncertainty.

Compass, Inc
Compass, Inc

Analysts expect the tech-enabled real estate platform to report revenue of approximately $1.64 billion for the quarter ended Dec. 31, 2025, representing about 21% growth from the year-ago period, according to consensus estimates. Earnings per share are projected at a loss of 6 cents, an improvement from prior-year results but still indicative of ongoing profitability challenges in a competitive sector.

The company has shown resilience in recent quarters. In the third quarter of 2025, Compass reported record revenue of $1.85 billion, up 23.6% year over year, surpassing the high end of its guidance. Adjusted EBITDA reached $93.6 million, an 80% increase from $52 million in the prior-year quarter, while free cash flow grew 124% to $73.6 million. The results highlighted strong agent recruitment, with 851 gross principal agents joining—the highest quarterly total ever—and market share gains despite a sluggish overall housing market.

For the full year 2024 (the most recent complete annual data available in filings), Compass generated $5.63 billion in revenue, up from $4.89 billion in 2023. The company achieved positive free cash flow in every quarter of 2024, totaling $105.8 million for the year, and strengthened its balance sheet with significant cash reserves.

Compass has pursued aggressive growth through acquisitions and strategic moves. In late 2025, the company announced an all-stock merger with Anywhere Real Estate Inc., valued at around $4.2 billion, aimed at consolidating its position in a fragmented industry. The deal has progressed with shareholder approvals and regulatory steps, though it faced scrutiny, including questions from lawmakers about antitrust implications. Recent reports indicated the transaction avoided deeper Justice Department review amid internal agency dynamics.

The company also tapped capital markets in early 2026, announcing and upsizing a convertible senior notes offering to $850 million. Proceeds supported merger-related activities and general corporate purposes, including bolstering liquidity.

Challenges persist. Compass has navigated legal hurdles in the evolving real estate landscape, including a failed bid in February 2026 for an injunction against Zillow's listing access standards, which could impact online home listings visibility. Broader industry pressures, such as commission structure changes stemming from National Association of Realtors settlements, have weighed on brokerages.

Despite these headwinds, Compass has outpaced market transaction growth in recent periods. In Q3 2025, transactions rose 21.5% year over year, compared with a 2% market increase, driving organic revenue growth of 11%. Analysts maintain a generally positive outlook, with an average 12-month price target around $14.45—suggesting more than 50% upside from recent levels—and ratings leaning toward "buy."

The upcoming earnings call, scheduled for 5 p.m. ET on Feb. 26, will provide insights into Q4 performance, 2026 guidance, and updates on integration efforts post-merger. Management has emphasized cost discipline, agent retention, and technology investments in its end-to-end platform, which empowers agents with digital tools for buyers and sellers.

Compass operates as a leading tech-powered residential real estate services firm, with more than 33,000 agents as of late 2024 and gross transaction value exceeding $216 billion annually in recent periods. Its model focuses on outpacing industry growth through innovation and scale.

Investors will watch closely for signs of sustained momentum in a housing sector sensitive to mortgage rates and economic conditions. While the stock has declined about 30% over the past month amid broader market fluctuations, it remains up modestly year over year.

As Compass prepares to release results, the report could serve as a barometer for the real estate brokerage sector's recovery trajectory in 2026.