Compass International Holdings reported record third-quarter revenue of $3.9 billion Thursday as the real estate brokerage giant continued integrating Anywhere Real Estate, adding agents and generating stronger earnings despite a sluggish housing market.
The company reported $62 million in net income, marking its third consecutive profitable quarter and its first profitable third quarter under generally accepted accounting principles, according to figures Compass shared with Inman ahead of its earnings release.
Adjusted EBITDA reached $306 million, exceeding the high end of Compass’ previous guidance and surpassing the full-year 2025 adjusted EBITDA generated by either Compass or Anywhere as standalone companies, according to the company.
The results reflect the dramatic expansion of Compass following its acquisition of Anywhere, which brought Coldwell Banker, Corcoran and Sotheby’s International Realty under the same corporate umbrella.
Revenue increased from $1.85 billion a year earlier, although much of that increase was attributable to the Anywhere acquisition. On a pro forma basis, which accounts for the combined companies’ historical performance, revenue grew 11.6 percent year over year.
Compass also generated $240 million in free cash flow during the quarter and ended September with $841 million in cash and no outstanding borrowings under its revolving credit facility.
A Compass spokesperson told Inman ahead of the earnings release that the company’s growing cash reserves have helped reduce its leverage ratio from the 4-times range to the 2-times range, easing concerns about its debt load following the Anywhere acquisition. Compass expects to begin paying down debt in 2027, the spokesperson said.
Agent count rebounds as Compass raises recruiting standards
Compass reported 85,476 brokerage agents at the end of September, up from 83,184 in the second quarter, reversing a sequential decline in agent count during the previous quarter. The company added 6,390 agents on a gross basis during Q3, while retention remained above 98 percent among agents generating more than $20,000 in gross commission income.
The growth comes as Compass moves to raise minimum production requirements for incoming agents by 30 percent, continuing its emphasis on recruiting productive real estate professionals.
When asked by Inman for clarification around the new agent production baseline, a Compass spokesperson declined to provide specific figures but described the minimum as substantial, saying an agent meeting the requirement would “still be considered a successful agent” and “certainly a full-time agent,” completing multiple transactions annually.
The spokesperson emphasized that the higher requirement primarily applies to incoming agents, rather than serving as an automatic cutoff for those already affiliated with the brokerage. Agents who fall below the threshold in a given year would not necessarily be required to leave, as managers retain discretion to account for individual circumstances.
Anywhere technology rollout expands
Compass also reported progress bringing its Home Platform technology to agents affiliated with the former Anywhere brands.
As of Oct. 31, the company had made the platform available to nearly 34,000 additional agents at Coldwell Banker, Corcoran and Sotheby’s International Realty, bringing the total to 68,349 across company-owned brands.
The platform provides participating agents with access to the combined company’s Private Exclusive and Coming Soon listings, along with transaction management and other business tools.
Compass plans to begin rolling out Home Platform to its broader franchise network in the first quarter of 2027.
Compass also reported significant cost reductions as it continues integrating Anywhere. Pro forma operating expenses fell 6 percent year over year during the third quarter, even as revenue on a comparable basis increased nearly 12 percent.
The company said it had taken action on $360 million in net cost synergies as of late October, exceeding the $330 million full-year 2026 target set last quarter. Compass said it continues to target $500 million in cost synergies within three years.
This story will be updated as more information becomes available following Compass’ third-quarter earnings call at 5 p.m. ET.
