Real estate brokerage Compass continued to move its financials in a positive direction during the second quarter of 2025, hitting 10 all-time high metrics as the firm maintains consistent expansion across the country.
Compass’ revenue rose 21.1 percent year over year to $2.06 billion, marking a new all-time high for the brokerage. The brokerage’s transactions were also up 20.9 percent year over year, even as transactions in the market overall dropped by 0.9 percent.
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“Compass delivered the best quarterly results in our history, marked by 10 all-time highs, including market share, revenue, GAAP Net Income, Adjusted EBITDA, Adjusted EBITDA Margin, free cash flow, T&E revenue, T&E attach, and weekly agent sessions on the platform,” Compass CEO Robert Reffkin said in a statement.
“In the second quarter, we also continued to widen the gap against the industry as we grew organic transactions by 6.3 percent and total transactions by 20.9 percent compared to market transactions, which declined by 0.9 percent year-over-year. This means organic and total transactions outgrew the market by roughly 7 percent and 22 percent, respectively.
“For 17 consecutive quarters, spanning our entire history as a public company, Compass has outperformed the market on an organic basis. There has never been a quarter since we started measuring this metric where we haven’t grown faster than the market. Organic quarterly market share grew 40 basis points year-over-year and total quarterly market share grew 96 basis points year-over-year to 6.09 percent, which is our highest market share in company history.”
The firm’s GAAP net income and free cash flow also hit new highs at $39.4 million and $68 million, respectively, during the second quarter.
In a press release, Compass said it had not reconciled guidance for adjusted EBITDA to GAAP net loss “because certain expenses excluded from GAAP net income loss when calculating adjusted EBITDA cannot be reasonably calculated or predicted at this time.”
Market share likewise hit a high at 6.09 percent, up 96 basis points from the same period the year before. Compass saw 832 principal agents organically join during the second quarter as the total number of principal agents rose from 16,997 at the end of Q2 2024 to 20,965 by the end of Q2 2025.
Compass agents closed a total of 73,025 transactions during the second quarter, which was up 20.9 percent year over year.
Agent retention during the quarter was 97.5 percent, up 20 basis points year over year.
By the end of the second quarter, Compass had $177.3 million in cash and cash equivalents.
During the first quarter of the year, the brokerage had grown revenue by 28.7 percent on an annual basis and its number of principal agents increased from 14,591 to 20,656 year over year.
In an earnings call that took place with investors on Wednesday afternoon, Reffkin said that he thought the brokerage’s positive recruiting this quarter was due to an agent-centric mentality.
“The consistent theme we are hearing from agents who joined this quarter is they want to be at a company that stands up for agents,” Reffkin said. “No agent wants to be told by a company or MLS how they must do their business.”
Reffkin went on to refer to the current debate over who should control agent listings, calling out portals and MLSs for restricting agent and client choice in favor of monetizing their listings.
“So when there is a company that is advocating for agents and their clients for choice … that is and will continue to be the winning recruiting strategy,” Reffkin said.
“I hope more CEOs see our [recruiting] result as a signal that they will attract more agents if they fight for them.”
Reffkin also announced that the brokerage’s CFO, Kalani Reelitz, will soon be stepping down from his role at the firm to pursue another career opportunity outside of the real estate industry. Scott Wahlers, the brokerage’s chief accounting officer, will be promoted to CFO.
Update: This story was updated after an earnings call took place with investors on Wednesday, July 30, 2025.
