According to Compass, despite continued market volatility, Compass delivered its strongest quarter ever in Q2 2025—setting all-time highs across ten key business metrics including revenue, GAAP net income, free cash flow, and market share.
Exceptional Financial Performance Drives Confidence
Compass grew revenue by 21.1% year-over-year to $2.06 billion, powered by a 20.9% increase in total transactions. GAAP net income surged 90.3% to $39.4 million, while operating cash flow reached a record $72.8 million. Adjusted EBITDA climbed 63% to $125.9 million. The company also posted $68 million in free cash flow—demonstrating operational discipline and sustained profitability.
Strong Agent Momentum and Market Share Gains
A record 832 principal agents joined Compass in Q2—the highest quarterly total in company history—bringing the national agent count to 20,965. Retention remained high at 97.5%. Compass’ national market share expanded 96 basis points year-over-year to a record 6.09%, outperforming a market where total transactions declined by 0.9%. Organic market share rose 40 basis points.
Transaction Growth Defies Market Trends
Compass agents closed over 73,000 transactions in Q2, a 20.9% increase year-over-year. Organic transactions grew by 6.3%, while U.S. market transactions declined—marking Compass’ 17th consecutive quarter of outperforming the market organically. Gross Transaction Value hit $78.3 billion, with organic GTV at $69.3 billion.
Product Innovation Continues to Power Agent Success
Platform engagement reached a record high, with agents averaging 24 sessions per week—a 37% increase from Q2 2024. Compass One, the company’s all-in-one client dashboard, was used with over 116,000 clients in Q2. Tools like Make-Me-Sell and Reverse Prospecting are gaining adoption, helping agents surface off-market opportunities and better match buyers with listings. One-Click Title & Escrow usage also continued to boost attachment rates.
Outlook Remains Positive for 2025
Compass projects Q3 revenue between $1.725 and $1.850 billion and Adjusted EBITDA between $60 and $80 million. Full-year 2025 non-GAAP operating expenses are expected to come in below previous forecasts, with the company on track to remain free cash flow positive for the year.
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Source: compass.com
