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Here are 1-3 brief analogies to describe Compass (COMP):

• Shopify for real estate agents.
• A tech-first RE/MAX.
• Salesforce for real estate agents.

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• Residential Real Estate Brokerage Services: Facilitating the buying and selling of homes and other residential properties, where Compass agents assist clients through the entire transaction process.
• Technology Platform for Real Estate Agents: Providing a proprietary suite of integrated software tools and applications designed to enhance agent productivity, marketing, and client management within the real estate transaction lifecycle.

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Suppliers:

• Amazon.com Inc. (AMZN)

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Robert Reffkin, Founder & CEO

Robert Reffkin co-founded Compass in 2012, inspired by his mother's experiences as a real estate agent. Under his leadership, Compass grew to become the #1 real estate brokerage in the United States, achieving half a trillion dollars in real estate sales and going public in 2021. Prior to Compass, Reffkin held roles at McKinsey & Company, Lazard, and Goldman Sachs, where he was Chief of Staff to the President & Chief Operating Officer. He also served as a White House Fellow, working for the Secretary of the Treasury. Reffkin founded the non-profit "America Needs You" (formerly New York Needs You) in 2009 to support first-generation college students. He also started a DJ business in high school.

Kalani Reelitz, Chief Financial Officer

Kalani Reelitz serves as the Chief Financial Officer at Compass, overseeing the company's financial strategy and operations. He is responsible for ensuring financial stability, driving growth through strategic financial planning, and optimizing financial processes. Before joining Compass, Reelitz held leadership roles at Cushman & Wakefield and Walgreens, where he gained extensive experience in financial planning and analysis.

Ori Allon, Founder & Chief Strategist

Ori Allon is a co-founder of Compass. He is a technologist and entrepreneur known for building software-driven businesses that create personalized experiences for consumers. His background in technology includes serving as Director of Engineering at Twitter. Allon also founded Julpan, which was acquired by Twitter, and Orion, which was acquired by Google.

Neda Navab, President

Neda Navab is the President at Compass, where she is focused on realizing the company's mission across the United States. She oversees brokerage operations and drives strategic initiatives. Before joining Compass, Navab was the Director of Urban Systems at Sidewalk Labs, a division of Google that focused on building smart cities. She also held significant roles at Enjoy Technology, Inc., and Box, and built programs to support female entrepreneurs in East Africa. Navab began her career as a management consultant at McKinsey & Co.

Rory Golod, President of Growth & Communications

Rory Golod serves as the President of Growth & Communications at Compass, where he is responsible for overseeing growth strategies and communication efforts for the company.

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The public company Compass (COMP) faces several key risks to its business, primarily stemming from the cyclical nature of the real estate market, potential regulatory shifts, and the ongoing challenge of achieving consistent profitability.

1. Housing Market Weakness and Affordability Challenges: Compass's business is highly susceptible to macroeconomic headwinds and the cyclicality of the residential real estate market. Factors such as high mortgage interest rates, low home inventory levels, and broader economic downturns can significantly suppress buyer demand and affordability, directly impacting transaction volumes and gross commission income. The company's performance is closely tied to the overall health of the U.S. real estate industry.
2. Regulatory Changes and Antitrust Litigation: The real estate industry is facing increased scrutiny, particularly concerning commission structures and agent compensation models. Ongoing antitrust class-action litigation, including lawsuits against the National Association of Realtors (NAR), could lead to significant changes in how real estate agents are compensated and how commissions are split. Additionally, there is regulatory uncertainty surrounding Compass's "Private Exclusive" and "Coming Soon" listing strategies, which could be impacted by rules like the National Association of Realtors' Clear Cooperation Rule.
3. Challenges in Achieving Consistent Profitability and Managing Operational Costs: While Compass has been focused on cost reduction and aims to achieve positive EBITDA and free cash flow, its historical operational costs have been high. The company's ability to consistently generate free cash flow and achieve sustained GAAP profitability is crucial to justifying its valuation and ensuring long-term financial health. The business model relies heavily on agent performance and retention, and high operational expenses associated with technology and support services remain a factor to manage.

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The following are clear emerging threats to Compass (COMP):

• eXp Realty's (EXPI) continued aggressive growth and agent-centric cloud-based brokerage model: eXp Realty's virtual-first structure offers significantly lower overhead costs and more attractive commission splits and stock incentives to agents compared to Compass's hybrid model. This enables eXp to continuously attract and retain top-performing agents, directly challenging Compass's value proposition of a premium technology platform while maintaining higher operating costs.

• Zillow Group's (ZG, Z) increasing integration into the real estate transaction process and expansion of its agent-enabling platform tools: Zillow is evolving beyond a simple listing portal and lead generator to offer more comprehensive services and tools directly to real estate agents and consumers, aiming to become a "housing super app." This includes programs like Zillow Flex, AI-powered tools, and a focus on streamlining the entire transaction. By empowering agents directly and becoming a central hub for transaction management, Zillow poses a threat to Compass's role as the primary technology platform and support system for agents, potentially disintermediating traditional brokerages.

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Compass (symbol: COMP) primarily operates as a residential real estate brokerage in the United States, providing an end-to-end technology platform to empower its agents in buying, selling, and renting properties. The company also offers ancillary services such as mortgage, title, and escrow, as well as the Compass Concierge program for home sellers.

The addressable market for Compass's main products and services is detailed below:

• U.S. Residential Real Estate Market: The United States real estate market size, which includes residential properties, was valued at approximately USD 1.71 trillion in 2024 and is projected to reach USD 2.32 trillion by 2033, growing at a Compound Annual Growth Rate (CAGR) of 3.10% from 2025 to 2033. Residential property accounted for a 57.1% share of the U.S. real estate market in 2024.
• Global Residential Real Estate Market: The global residential real estate market was valued at USD 11.59 trillion in 2025 and is forecast to reach USD 15.53 trillion by 2030, expanding at a CAGR of 6.01%.

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Compass Inc. (COMP) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market dynamics:

1. Continued Agent Growth and Retention: Compass consistently emphasizes its ability to attract and retain top-tier real estate agents, outperforming the overall market in agent additions. For instance, the company added a record 851 principal agents organically in a recent quarter, surpassing its own estimates, and projects approximately 20% agent growth through 2025. This focus on expanding its agent base directly contributes to an increase in transactions and overall revenue.
2. Market Share Expansion: The company has a stated strategy of expanding its market share and has demonstrated consistent outperformance in transaction and Gross Transaction Value (GTV) growth compared to the broader U.S. residential real estate market. Compass has reported significant market share gains, with an increase of 95 basis points quarter over quarter as of May 2025, and has outperformed the market on an organic basis for 18 consecutive quarters.
3. Strategic Mergers and Acquisitions: Acquisitions, such as the Christie's International Real Estate acquisition which contributed 10.4% to revenue growth and a significant portion of agent additions, are a notable driver. Furthermore, the transformative merger with Anywhere Real Estate, anticipated to close in the second half of 2026, is expected to further boost revenue and margins.
4. Growth in Ancillary Services: Compass is expanding its offerings in high-margin ancillary services, particularly title and escrow. The company has noted significant growth in these services, and improvements in their "attach rate" are contributing to increased revenue per transaction.
5. Leveraging Technology and AI: The integration of advanced technology and artificial intelligence, such as Compass AI 2.0, is aimed at enhancing agent productivity and client satisfaction. This technological edge is expected to improve efficiency, potentially convert a large base of CRM contacts into active listings, and thereby indirectly contribute to revenue growth.

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Share Issuance

• Compass, Inc. priced its initial public offering of 25,000,000 shares of Class A common stock at $18.00 per share in March 2021.
• The underwriters for the IPO had a 30-day option to purchase up to an additional 3,750,000 shares of Class A common stock.
• For the nine months ended September 30, 2025, the company recorded $10.8 million in proceeds from the exercise of stock options and $2.9 million from the issuance of common stock under its Employee Stock Purchase Plan.

Outbound Investments

• In September 2025, Compass, Inc. announced a definitive merger agreement to combine with Anywhere Real Estate Inc. in an all-stock transaction, which is expected to result in a combined company with an enterprise value of approximately $10 billion, including assumed debt.
• This acquisition is anticipated to diversify Compass' revenue streams by adding over $1 billion from Anywhere's established franchise, title and escrow, and relocation operations.
• Other acquisitions made by Compass in 2025 include Christie's International Real Estate (closed January 2025), Washington Fine Properties (closed February 2025), and a title company in Texas (closed April 2025).

Capital Expenditures

• Compass's capital expenditures for fiscal years ending December 2020 to 2024 averaged $38.08 million.
• Capital expenditures peaked at $70.1 million in December 2022 and reached a 5-year low of $11.2 million in December 2023.
• For the latest twelve months ending June 30, 2025, Compass reported capital expenditures of $16.8 million.