Compass, Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
COMP$10.21+10.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-08.
0001563190-26-000101
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001563190-26-000143
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 161 previous paragraphs and 166 current paragraphs.
89 unchanged; 44 reworded; 31 added; 26 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 24 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (31)
Current report
Within the discussion of Revenue and of Commissions and other related expenses, we have included Supplemental Pro Forma Revenue and Commissions and other related expenses for the Company (“Compass”) and Anywhere on a combined basis for the periods presented. These pro forma results are presented as if the Company's acquisition of Anywhere had occurred on January 1, 2025. For comparability, Anywhere's results have been included for the full period from January 1, 2025 through June 30, 2026, which incorporates the first eight days of January 2026 prior to the closing of the acquisition. This pro forma financial information has not been prepared in accordance with the requirements of Article 11 of Regulation S-X or Accounting Standards Codification 805, Business Combinations, and was prepared for illustrative and informational purposes only.
Current report
On a consolidated basis, revenue was $4.3 billion and $7.0 billion during the three and six months ended June 30, 2026, respectively, an increase of $2.2 billion, or 109.0%, and an increase of $3.6 billion, or 105.2%, compared to the prior-year periods, respectively. These increases are primarily the result of the acquisition of Anywhere in January 2026. On a pro forma basis, revenue was $4.3 billion and $7.1 billion during the three and six months ended June 30, 2026, respectively, an increase of $539 million, or 14.3%, and an increase of $719 million, or 11.3%, compared to the prior-year periods, respectively. These increases are a result of higher transaction counts and higher average home sale prices across our various segments.
Current report
Commissions and other related expenses
Current report
On a pro forma basis, commissions and other related expenses was $3.3 billion and $5.3 billion during the three and six months ended June 30, 2026, respectively, an increase of $438 million, or 15.6%, and an increase of $581 million, or 12.3%, compared to the prior-year periods, respectively. The year-over-year increases on an absolute dollar basis are the result of increased transaction counts for our owned brokerage business. As a percentage of revenue, pro forma basis commissions and other related expenses increased from the prior-year periods. These increases are a result of changes in mix of the commission arrangements we have with our agents and changes in geographic mix.
Current report
On a consolidated basis, sales and marketing expense was $108 million and $205 million during the three and six months ended June 30, 2026, an increase of $47 million, or 77.0%, and an increase of $86 million, or 72.3%, compared to the prior-year periods, respectively. The annual increases were primarily driven by increased employee compensation for marketing staff, agent advertising, and marketing costs associated with the acquired Anywhere businesses.
Current report
On a consolidated basis, operations and support expense was $429 million and $827 million during the three and six months ended June 30, 2026, an increase of $284 million, or 195.9%, and $550 million, or 198.6%, compared to the prior-year periods, respectively. The annual increases were primarily driven by the increased operating expenses related to employee compensation, occupancy, and other operating items as a result of the addition of Anywhere.
Current report
On a consolidated basis, technology and development expense was $109 million and $228 million during the three and six months ended June 30, 2026, an increase of $46 million, or 73.0%, and $115 million, or 101.8%, compared to the prior-year periods, respectively. The annual increases were primarily driven by the addition of Anywhere's employee compensation, software, and information technology infrastructure costs.
Current report
On a consolidated basis, general and administrative expense was $93 million and $174 million during the three and six months ended June 30, 2026, an increase of $59 million, or 173.5%, and $113 million, or 185.2%, compared to the prior-year periods, respectively. Of this increase, $52 million and $90 million is related to the Anywhere Merger for the three and six months ended June 30, 2026, respectively. The annual increases were primarily driven by the addition of Anywhere's general and administrative functions.
Current report
Depreciation and amortization expense increased $124 million, or 427.6%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 and increased $258 million, or 444.8%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily attributable to the Anywhere Merger, with the acquired Anywhere businesses contributing $128 million and $265 million to the three and six months ended June 30, 2026, respectively.
Current report
Income tax (expense) benefit
Current report
Consolidated Adjusted EBITDA was $363 million and $125 million during the three months ended June 30, 2026 and 2025, respectively, and $424 million and $141 million during the six months ended June 30, 2026 and 2025, respectively. The year-over-year improvements in Adjusted EBITDA were primarily driven by the addition of Anywhere, higher stand-alone Compass revenue from increased transaction counts, and continued cost management and synergies.
Current report
Additionally, we have included Supplemental Pro Forma Revenue for the Company (“Compass”) and Anywhere on a combined basis for the periods presented. These pro forma results are presented as if the Company's acquisition of Anywhere had occurred on January 1, 2025. For comparability, Anywhere's results have been included for the full period from January 1, 2025 through June 30, 2026, which incorporates the first eight days of January 2026 prior to the closing of the acquisition. This pro forma financial information has not been prepared in accordance with the requirements of Article 11 of Regulation S-X or Accounting Standards Codification 805, Business Combinations, and was prepared for illustrative and informational purposes only.
Current report
Certain amounts in Anywhere's historical financial statements have been reclassified to conform to the Company's new segment-level disclosure format, effective for the three months ended March 31, 2026. These reclassifications include (i) the reclassification of relocation revenue related to the Cartus business to Integrated Services, such that Integrated Services revenue now comprises relocation revenue in addition to title and escrow revenue and (ii) the elimination of intercompany royalty revenue earned by the Franchise business from the Brokerage segment.
Current report
Brokerage revenue increased $1.9 billion, or 96.7% for the three months ended June 30, 2026 and $3.1 billion, or 92.4% for the six months ended June 30, 2026, compared to the prior periods. The year-over-year increase was primarily driven by the addition of Anywhere and higher transaction counts resulting from growth in the number of real estate professionals operating on Compass's platform. On a pro forma basis, Brokerage revenue increased 14.9% and 11.8% for the three months and six months ended June 30, 2026, respectively, as compared to the prior year periods. These increases are driven by higher transaction counts and average selling prices from our owned-brokerage real estate professionals.
Current report
Franchise revenue increased $127 million and $211 million for the three and six months ended June 30, 2026, respectively, as compared to the prior-year periods. These increases are primarily driven by the addition of the Anywhere franchise business. On a pro forma basis, Franchise revenue increased 7.1% and 3.1% for the three and six months ended June 30, 2026, respectively, as compared to the prior-year periods. These increases were primarily driven by higher transaction counts and average selling prices from our franchisee's real estate professionals.
Current report
Franchise Segment Adjusted EBITDA increased $84 million and $128 million for the three and six months ended June 30, 2026, respectively, compared to the prior-year periods, substantially all of which was attributable to the Anywhere Merger. Segment Adjusted EBITDA margin was 64.4% and 59.1% for the three and six months ended June 30, 2026, respectively, compared to 37.5% and 35.7% in the prior-year periods, respectively, reflecting the margin profile of the combined Franchise segment following the merger.
Current report
Integrated Services revenue increased $172 million and $297 million for the three and six months ended June 30, 2026, respectively, as compared to the prior-year periods. These increases are primarily driven by the addition of the Anywhere integrated services business. On a pro forma basis, Integrated Services revenue increased 7.7% and 8.9% for the three and six months ended June 30, 2026, respectively, as compared to the prior-year periods. These increases were primarily driven by higher title and escrow transaction counts.
Current report
For the three and six months ended June 30, 2026, unallocated corporate expenses were $153 million and $298 million, respectively, compared to $55 million and $106 million in the prior-year periods, respectively, representing increases of $98 million, or 178.2%, and $192 million, or 181.1%, respectively. These annual increases are the result of the additional expenses incurred by the corporate functions acquired during the Anywhere Merger.
Current report
In addition to actual results, the following discussion includes the Company's key business metrics on a pro forma basis. Pro forma metrics reflect the combined operations of Compass and Anywhere as if the acquisition had occurred on January 1, 2025, and therefore include Anywhere's results across all periods presented. Because the acquisition actually closed on January 9, 2026, the pro forma metrics for the six months ended June 30, 2026 incorporate Anywhere's results for the first eight days of January 2026 prior to closing.
Current report
Total Transactions increased to 153,009 for the three months ended June 30, 2026 and 252,513 for the six months ended June 30, 2026. On a pro forma basis, Total Transactions increased by 10,505, or 7.4%, for the three months ended June 30, 2026, and increased by 13,070, or 5.4% for the six months ended June 30, 2026, compared to the prior year periods. The year-over-year increase in pro forma Total Transactions primarily reflects higher market activity for the geographies and markets our owned-brokerage real estate professionals support.
Current report
Gross Transaction Value increased to $155.2 billion for the three months ended June 30, 2026, and $252.6 billion for the six months ended June 30, 2026. On a pro forma basis, Gross Transaction Value increased by $21.3 billion, or 15.9%, for the three months ended June 30, 2026, and increased by $28.0 billion, or 12.4%, for the six months ended June 30, 2026, compared to the prior year periods. The year-over-year increase in pro forma Gross Transaction Volume was primarily driven by a higher number of transactions completed by our owned-brokerage real estate professionals, as well as a higher average sales price on those transactions.
Current report
Total Transactions for the Franchise segment increased to 203,207 for the three months ended June 30, 2026 and 340,554 for the six months ended June 30, 2026. On a pro forma basis, Total Transactions for the Franchise segment increased by 7,386, or 3.8%, for the three months ended June 30, 2026, and increased by 7,587, or 2.2% for the six months ended June 30, 2026, compared to the prior year periods. The year-over-year increase in pro forma transactions primarily reflects higher market activity for the geographies and markets our franchisees' real estate professionals support.
Current report
Gross Transaction Value for the Franchise segment rose to $120.0 billion for the three months ended June 30, 2026, and $196.9 billion for the six months ended June 30, 2026. On a pro forma basis, Gross Transaction Value for the Franchise segment increased by $12.6 billion, or 11.7%, for the three months ended June 30, 2026, and increased by $16.0 billion, or 8.7%, for the six months ended June 30, 2026, compared to the prior year periods. The year-over-year increase in pro forma Gross Transaction Volume was primarily driven by a higher number of transactions completed by our franchisees' real estate professionals, as well as a higher average sales price on those transactions.
Current report
When comparing the Brokerage and Franchise segment results, Franchise Total Transactions exceeds Brokerage Total Transactions, while Franchise Gross Transaction Value is lower than Brokerage Gross Transaction Value. This reflects differences in geographic mix and average home sale prices between the two segments rather than a change in the relative productivity of either. Our owned-brokerage operations are concentrated in major metropolitan markets, which carry higher average home prices, while our franchise network is more broadly distributed across the country, including markets with lower average home prices. As a result, a larger number of franchise transactions can generate lower aggregate transaction value relative to a smaller number of brokerage transactions.
Current report
Net Royalty Per Side
Current report
Net Royalty Per Side was $505 for the three months ended June 30, 2026 and $479 for the six months ended June 30, 2026. On a pro forma basis, Net Royalty Per Side was $505 and $477 for the three and six months ended June 30, 2026, respectively, representing increases of 5.4% and 1.1% from the prior year periods. These increases were driven by higher average home sale prices from our franchisee's real estate professionals.
Current report
Purchase Title and Escrow Transactions were 38,406 for the three months ended June 30, 2026 and 63,409 for the six months ended June 30, 2026. On a pro forma basis, Title and Escrow Transactions increased by 2,166, or 6.0%, for the three months ended June 30, 2026 and increased by 3,101, or 5.0%, for the six months ended June 30, 2026, compared to the prior year periods. The year-over-year increase in pro forma purchase transactions primarily reflects higher transaction volume from businesses acquired by Compass prior to the Anywhere Merger, as well as increased market activity in the geographies served by our integrated services businesses.
Current report
Refinancing Title and Escrow Transactions for our Integrated Services segment were 4,202 for the three months ended June 30, 2026 and 9,520 for the six months ended June 30, 2026. On a pro forma basis, Refinancing Title and Escrow Transactions increased by 851, or 25.4%, for the three months ended June 30, 2026 and increased by 3,611, or 59.0%, for the six months ended June 30, 2026, compared to the prior year periods. The year-over-year increases in pro forma refinancing transactions primarily reflects lower prevailing mortgage rates year-over-year.
Current report
Average Title and Escrow Revenue Per Transaction for our Integrated Services segment was $3,654 for the three months ended June 30, 2026 and $3,599 for the six months ended June 30, 2026. On a pro forma basis, Average Title and Escrow Revenue Per Transaction increased by $54, or 1.5%, for the three months ended June 30, 2026 and increased by $77, or 2.2%, for the six months ended June 30, 2026, compared to the prior year periods. The year-over-year increases in pro forma Average Title and Escrow Revenue Per Transaction primarily reflects a year-over-year shift of revenue to markets in which the Company demands a higher price per transaction.
Current report
In April 2026, we entered into a multi-party transaction with a company (the “Parent”) that owns certain franchisees operating under the Sotheby's International Realty and Century 21 brands to restructure financial obligations of the Parent's predecessor (the “Transaction”). As part of the Transaction, the Company became a 51% holder of Parent's common equity and entered into a 30-month installment payment plan pursuant to which certain outstanding indebtedness owed to the Company will be satisfied.
Current report
Additionally, our company and certain funds managed or advised by Angelo, Gordon & Co., L.P. or its affiliates (collectively, “TPG”) entered into an agreement (the “Put Agreement”) under which TPG has the right, but not the obligation (the “Put Right”), to require us to purchase 100% of Parent's senior preferred equity. TPG may exercise the put at any time from the valuation date through the 54-month redemption date, and accordingly the related payment could become due in any period through that date. The payment due on exercise is equal to the amount of TPG's initial investment in the Parent plus a time-based accretion, less distributions received in cash, subject to a cap. We recorded a liability for the Put Right at estimated fair value (the “Put Right liability”) and monitor the potential timing and magnitude of this obligation as part of our liquidity planning. As of June 30, 2026, the estimated fair value of the Put Right liability was $22 million. Refer to Note 6 — “Fair Value of Financial Assets and Liabilities” to the consolidated financial statements included elsewhere in this Quarterly Report for further information on the determination of the Put Right liability's fair value.
Removed paragraphs (26)
Previous report
Three Months Ended March 31, 2026 vs. Three Months Ended March 31, 2025
Previous report
On a consolidated basis, revenue was $2.7 billion during the three months ended March 31, 2026, an increase of $1.3 billion, or 99.4%, compared to the prior-year period, of which $1.2 billion was attributable to the Anywhere Merger. The remaining increase of $148 million, or 10.9%, for the three months ended March 31, 2026 was primarily driven by an increase in the number of real estate professionals that joined our platform during 2025 and 2026, including those real estate professionals attributable to businesses acquired since January 2025.
Previous report
Commissions and other related expense
Previous report
On a consolidated basis, sales and marketing expense was $97 million during the three months ended March 31, 2026, an increase of $39 million, or 67.2%, compared to the prior-year period, of which $45 million is related to the Anywhere Merger.
Previous report
Excluding the impact of the Anywhere Merger, sales and marketing expense was $52 million for the three months ended March 31, 2026, a decrease of $6 million, or 10.3%, year-over-year. Sales and marketing expense for stand-alone Compass included stock-based compensation of $5 million and $7 million for the three months ended March 31, 2026 and 2025, respectively. Excluding stock-based compensation, sales and marketing expense for stand-alone Compass was $47 million and $51 million for the three months ended March 31, 2026 and 2025, respectively, representing a 7.8% decrease and comprising 3.1% and 3.8% of revenue. The year-over-year decrease in absolute dollars was primarily driven by lower cash-based incentives and marketing expenses for our stand-alone Compass real estate professionals. The decrease as a percentage of revenue reflects both the aforementioned lower costs and higher revenue year-over-year.
Previous report
On a consolidated basis, operations and support expense was $398 million during the three months ended March 31, 2026, an increase of $266 million, or 202%, compared to the prior-year period, of which $250 million is related to the Anywhere Merger.
Previous report
Excluding the impact of the Anywhere Merger, operations and support expense was $148 million for the three months ended March 31, 2026, an increase of $16 million, or 12.1%, year-over-year. Operations and support expense for stand-alone Compass included stock-based compensation of $9 million and $5 million for the three months ended March 31, 2026 and 2025, respectively. Excluding stock-based compensation, operations and support expense for stand-alone Compass was $139 million and $127 million for the three months ended March 31, 2026 and 2025, respectively, representing a 9.4% increase and comprising 9.2% and 9.4% of revenue. The year-over-year increase in absolute dollars was primarily driven by higher personnel expenses resulting from increased headcount related to our 2025 acquisitions. As a percentage of revenue, operations and support expense for the stand-alone Compass business remained relatively flat year-over-year.
Previous report
On a consolidated basis, technology and development expense was $119 million during the three months ended March 31, 2026, an increase of $69 million, or 138%, compared to the prior-year period, of which $60 million is related to the Anywhere Merger.
Previous report
Excluding the impact of the Anywhere Merger, technology and development expense was $59 million for the three months ended March 31, 2026, an increase of $9 million, or 18.0%, year-over-year. Technology and development expense for stand-alone Compass included stock-based compensation of $19 million and $13 million for the three months ended March 31, 2026 and 2025, respectively. Excluding stock-based compensation, technology and development expense for stand-alone Compass was $40 million and $37 million for the three months ended March 31, 2026 and 2025, respectively, representing a 8.1% increase and comprising 2.7% of revenue in both periods. The year-over-year increase in absolute dollars was primarily driven by higher personnel expenses from increased headcount as we continue to invest in our platform.
Previous report
On a consolidated basis, general and administrative expense was $81 million during the three months ended March 31, 2026, an increase of $54 million, or 200%, compared to the prior-year period, of which $38 million is related to the Anywhere Merger.
Previous report
Excluding the impact of the Anywhere Merger, general and administrative expense was $43 million for the three months ended March 31, 2026, an increase of $16 million, or 59.3%, year-over-year. General and administrative expense for the three months ended March 31, 2026 includes a $7 million legal charge in connection with the Antitrust Litigation (see Note 11 — "Commitments and Contingencies" to the condensed consolidated financial statements, for further information). General and administrative expense for stand-alone Compass also includes stock-based compensation of $11 million and $6 million for the three months ended March 31, 2026 and 2025, respectively. Excluding the legal charge and stock-based compensation, general and administrative expense for stand-alone Compass was $25 million and $21 million for the three months ended March 31, 2026 and 2025, respectively, and comprised 1.7% and 1.5% of revenue. The year-over-year increase in absolute dollars and as a percentage of revenue for stand-alone Compass general and administrative expense was immaterial.
Previous report
Depreciation and amortization expense increased $134 million, or 462%, for the three months ended March 31, 2026 compared to the prior-year period. The year-over-year increase was primarily attributable to the Anywhere Merger, with the acquired Anywhere businesses contributing $137 million of depreciation and amortization expense, of which $113 million related to acquired intangible assets.
Previous report
Income tax benefit
Previous report
For the three months ended March 31, 2026, Income tax benefit increased by $398 million when compared to the three months ended March 31, 2025. The benefit during the three months ended March 31, 2026 resulted from the establishment of
Previous report
Consolidated Adjusted EBITDA was $61 million and $16 million during the three months ended March 31, 2026 and 2025, respectively. The improvement in Adjusted EBITDA during the three months ended March 31, 2026 as compared to the three months ended March 31, 2025 was partially driven by $21 million attributable to the acquisition of Anywhere. The remaining $24 million improvement was driven by a $148 million increase in stand-alone Compass revenue that outpaced the increase in operating expenses. The year-over-year increase in revenue was primarily attributable to the growth in productive real estate professionals on our platform.
Previous report
Brokerage revenue increased $1.1 billion, or 85.8%, compared to the prior period, of which $1.0 billion was attributable to Anywhere. The remaining increase of $137 million, or 10.3%, was primarily driven by higher transaction count resulting from growth in the number of real estate professionals operating on Compass's platform year-over-year.
Previous report
For the three months ended March 31, 2026 and 2025, unallocated corporate expenses were $145 million and $51 million, respectively, representing a $94 million, or 184.3%, increase, of which $88 million of the increase was attributable to the Anywhere Merger.
Previous report
Total Transactions increased to 99,504 for the three months ended March 31, 2026, representing a 103% increase compared to the same period in the prior year. The year-over-year increase was primarily attributable to the Anywhere Merger which contributed 96% of the total increase. Excluding Anywhere, stand-alone Compass transactions grew 6% year-over-year, reflecting an increased presence of productive agents on the Compass platform driven largely by prior-year acquisitions.
Previous report
Gross Transaction Value increased to $97.3 billion for the three months ended March 31, 2026, representing an 86% increase compared to the same period in the prior year. The year-over-year increase was primarily attributable to the Anywhere Merger which contributed 75% of the total increase. Excluding Anywhere, stand-alone Compass Gross Transaction Value grew 11% year-over-year, reflecting an increase in productive agents real estate professionals on the Compass platform driven largely by prior-year acquisitions and higher average sales price.
Previous report
Total Transactions for the Franchise segment increased to 137,347 for the three months ended March 31, 2026, compared to 6,117 in the prior year period. The increase was driven almost entirely by the Anywhere Merger, as stand-alone Compass had minimal franchise operations beforehand.
Previous report
Gross Transaction Value for the Franchise segment rose to $76.9 billion for the three months ended March 31, 2026, compared to $6.2 billion in the prior year period. The increase was driven almost entirely by the Anywhere Merger, as stand-alone Compass had minimal franchise operations beforehand.
Previous report
Net Royalty Per Transaction
Previous report
Net Royalty Per Transaction for our Franchise segment was $440 for the three months ended March 31, 2026, compared to $660 in the prior-year period. The year-over-year decrease in Net Royalty Per Transaction is primarily driven by the Anywhere Merger. The stand-alone Anywhere franchise business operates with franchisees that have a lower average price per transaction, which results in a lower royalty fee per transaction than the stand-alone Compass franchise business. Because stand-alone Compass had minimal franchise operations prior to the merger, the addition of Anywhere's franchise business reduced the combined company metric.
Previous report
Purchase Title and Escrow Transactions were 25,003 for the three months ended March 31, 2026, compared to 3,887 in the prior-year period. Substantially all of the year-over-year change is attributable to the Anywhere Merger, as stand-alone Compass's title and escrow operations were significantly smaller prior to the merger.
Previous report
Refinancing Title and Escrow Transactions for our Integrated Services segment were 5,318 for the three months ended March 31, 2026, compared to 263 in the prior-year period. Substantially all of the year-over-year change is attributable to the Anywhere Merger, as stand-alone Compass operated a significantly smaller title and escrow business prior to the merger.
Previous report
Average Title and Escrow Revenue Per Transaction for our Integrated Services segment was $3,522 for the three months ended March 31, 2026, compared to $5,360 in the prior-year period. The stand-alone Anywhere title and escrow business operates in a geographic footprint that is nationwide resulting in a lower average price per transaction. The stand-alone Compass title and escrow business prior to the merger had a significant concentration in California resulting in a higher average price per transaction.
Reworded paragraphs (44)
Previous wording
Our end-to-end proprietary technology platform (the “Compass platform”) allows real estate professionals to perform their primary workflows, from first contact to close, with a single log-in and without leaving the platform. The Compass platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service, brokerage services and other critical functionalities, all custom-built for the real estate industry. The Compass platform also uses proprietary data, analytics, AI, and machine learning to simplify workflows of real estate professionals and deliver high-value recommendations and outcomes for their clients. Additionally, certain title and escrow and mortgage services are integrated and are available on the Compass platform. Currently, the Compass platform is only available to real estate professionals at our owned-brokerage operating under the Compass brand and is not yet available to other real estate professionals or our franchisees and their real estate professionals.
Current wording
Our end-to-end proprietary technology platform, branded “Home Platform”, allows real estate professionals to perform their primary workflows, from first contact to close, with a single log-in and without leaving the platform. Home Platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service, brokerage services and other critical functionalities, all custom-built for the real estate industry. Home Platform also uses proprietary data, analytics, AI, and machine learning to simplify workflows of real estate professionals and deliver high-value recommendations and outcomes for their clients. Additionally, certain title and escrow and mortgage services are integrated and are available on the platform. Currently, Home Platform is only available to real estate professionals at our owned-brokerage operating under the Compass brand and about 4,000 real estate professionals at certain non-Compass brokerage brands, with plans to release Home Platform more broadly to all real estate professionals at our owned-brokerage in the second half of 2026 and to our franchise network in 2027. Until this future release, the majority of the real estate professionals operating under historical Anywhere brands will continue to utilize the technology-powered tools and services in place at the time of the Anywhere Merger.
Previous wording
During the three months ended March 31, 2026, we incurred $183 million of merger-related expenses, which included legal and investment banking fees, severance and other personnel costs, integration costs, and $61 million of stock-based compensation from the acceleration of converted Anywhere awards upon certain employee terminations. These amounts are reported within the Anywhere merger transaction and integration expenses line of the condensed consolidated statements of operations.
Current wording
During the three and six months ended June 30, 2026, we incurred $34 million and $217 million of merger-related expenses, which included legal and investment banking fees, severance and other personnel costs, integration costs. These amounts are reported within the Anywhere merger transaction and integration expenses line of the condensed consolidated statements of operations.
Previous wording
The following discussion presents our results of operations on both a consolidated basis and by reportable segment for the three months ended March 31, 2026 and 2025. Our results for the three months ended March 31, 2026 include the operations of the combined company following the Anywhere Merger, which closed on January 9, 2026. Results for the three months ended March 31, 2025 reflect the historical results of Compass, Inc. on a stand-alone basis.
Current wording
The following discussion presents our results of operations on both a consolidated basis and by reportable segment for the three and six months ended June 30, 2026 and 2025. Our results for the three and six months ended June 30, 2026 include the operations of the combined company following the Anywhere Merger, which closed on January 9, 2026. Results for the three and six months ended June 30, 2025 reflect the historical results of Compass, Inc. on a stand-alone basis.
Previous wording
Comparison of the Three Months Ended March 31, 2026 and 2025
Current wording
Comparison of the Three and Six Months Ended June 30, 2026 and 2025
Previous wording
The following section provides analysis of our condensed consolidated statements of operations for the three months ended March 31, 2026 and 2025. References to "stand-alone Compass" refer to our results excluding the impact of the Anywhere Merger. Additional discussion of financial metrics for the Company's reportable segments follows in the "- Segment Operating Performance" section.
Current wording
The following section provides analysis of our condensed consolidated statements of operations for the three and six months ended June 30, 2026 and 2025.
Previous wording
On a consolidated basis, commissions and other related expenses was $2.0 billion for the three months ended March 31, 2026, an increase of $903 million, or 81.7%, compared to the prior-year period. Of this increase, $789 million related to the Anywhere Merger. Including the impact of the Anywhere Merger, commissions and other related expenses as a percentage of revenue decreased to 74.3% from 81.5% for the three months ended March 31, 2026 and 2025, respectively. This decrease is primarily attributable to Anywhere's franchise and integrated services businesses, which contributed $198 million of revenue and do not incur commissions and other related expense. Excluding the impact of Anywhere, commissions and other related expenses for stand-alone Compass as a percentage of revenue decreased to 81.1% from 81.5% for the three months ended March 31, 2026 and 2025, respectively, as a result of our other acquisitions completed in 2025, which operated with more favorable average agent splits.
Current wording
On a consolidated basis, commissions and other related expenses was $3.3 billion and $5.3 billion for the three and six months ended June 30, 2026, respectively, an increase of $1.6 billion, or 93.0%, and $2.5 billion, or 88.5%, compared to the prior-year periods, respectively. These increases on an absolute dollar basis are primarily the result of the acquisition of Anywhere in January 2026. Including the impact of the Anywhere Merger, commissions and other related expenses as a percentage of revenue decreased to 75.6% from 81.8% for the three months ended June 30, 2026 and 2025, respectively, and to 75.1% from 81.7% for the six months ended June 30, 2026 and 2025, respectively. These decreases were primarily attributable to Anywhere’s franchise and integrated services businesses, which contributed significant revenue in 2026 but do not incur expenses classified within commissions and other related expenses.
Previous wording
Anywhere merger transaction and integration expenses during the three months ended March 31, 2026 represents transaction and integration costs incurred in connection with the Anywhere Merger. These costs were comprised of legal, investment banking and other transaction-related costs, severance and other personnel-related costs, all of which were expensed as incurred. In addition, we incurred $61 million in stock-based compensation expense related to the acceleration of certain Anywhere equity awards that were converted to Company equity awards in connection with the Anywhere Merger and subsequently accelerated upon the termination of certain employees.
Current wording
Anywhere merger transaction and integration expenses during the three and six months ended June 30, 2026 represents transaction and integration costs incurred in connection with the Anywhere Merger. These costs were comprised of legal, investment banking and other transaction-related costs, severance and other personnel-related costs, all of which were expensed as incurred. In addition, the Company incurred stock-based compensation expense of $3 million and $64 million for the three and six months ended June 30, 2026, respectively, primarily related to the acceleration of certain Anywhere equity awards. These awards were converted to Company equity awards in connection with the Anywhere Merger and subsequently accelerated upon the termination of certain employees.
Previous wording
Restructuring costs were $6 million and $9 million during the three months ended March 31, 2026 and 2025, respectively. These costs primarily consisted of lease termination costs and other related costs pertaining to restructuring programs initiated prior to the Anywhere Merger.
Current wording
Restructuring costs were $2 million and $8 million for three and six months ended June 30, 2026, respectively. These costs primarily consisted of lease termination costs and other related costs pertaining to restructuring programs initiated prior to the Anywhere Merger.
Previous wording
Investment income increased during the three months ended March 31, 2026 primarily as a result of an increase in our average short-term interest-bearing investments as compared to the three months ended March 31, 2025.
Current wording
Investment income increased during the three and six months ended June 30, 2026 primarily as a result of an increase in our average short-term interest-bearing investments as compared to the three and six months ended June 30, 2025.
Previous wording
Interest expense was $37 million for the three months ended March 31, 2026, an increase of $35 million year-over-year. The increase was primarily attributable to the Anywhere Merger, with assumed debt contributing $35 million of interest expense during the current period.
Current wording
Interest expense was $41 million and $78 million for the three and six months ended June 30, 2026, an increase of $38 million and $73 million, respectively. The increase was primarily attributable to the Anywhere Merger, with assumed debt contributing $36 million and $71 million for the three and six months ended June 30, 2026, respectively, of interest expense during the current period.
Previous wording
deferred tax liabilities for the recognition of intangible assets created through the Anywhere Merger that are non-deductible for tax purposes.
Current wording
For the three months ended June 30, 2026, income tax expense increased by $5 million. For the six months ended June 30, 2026, income tax benefit increased by $393 million. The expense during the three months ended June 30, 2026 primarily resulted from state and foreign income taxes. The benefit during the six months ended June 30, 2026 was primarily the result of a $401 million one-time, non-cash deferred tax benefit related to the reversal of valuation allowances on our deferred tax assets. This reversal was related to the establishment of deferred tax liabilities for the recognition of intangible assets from the Anywhere Merger that are non-deductible for tax purposes.
Previous wording
During the three months ended March 31, 2026, Equity in income of unconsolidated entities was income of $5 million compared to $1 million in the prior year period. The year-over-year increase was primarily attributable to our mortgage rate joint ventures.
Current wording
During the three and six months ended June 30, 2026, Equity in income of unconsolidated entities was income of $10 million and $15 million, respectively. The increase compared to the prior-year periods was primarily attributable to our mortgage rate joint ventures.
Previous wording
The following section provides analysis of Adjusted EBITDA and Adjusted EBITDA margin on a consolidated basis for the three months ended March 31, 2026 and 2025. References to "stand-alone Compass" refer to our consolidated results excluding the impact of the Anywhere Merger. Adjusted EBITDA is a non-GAAP financial measure that represents Net income (loss) attributable to Compass, Inc., adjusted for depreciation and amortization, investment income, interest expense, stock-based compensation expense, benefit from income taxes, and other items. For the periods presented, other items consisted of (i) restructuring charges associated with lease termination and severance costs, (ii) litigation charges in connection with the Antitrust Lawsuits, (iii) transaction and integration expenses associated with the Anywhere Merger, and (iv) other acquisition-related expenses. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by revenue.
Current wording
The following section provides analysis of Adjusted EBITDA and Adjusted EBITDA margin on a consolidated basis for the three and six months ended June 30, 2026 and 2025. References to “stand-alone Compass” refer to our consolidated results excluding the impact of the Anywhere Merger. Adjusted EBITDA is a non-GAAP financial measure that represents Net income (loss) attributable to Compass, Inc., adjusted for depreciation and amortization, investment income, interest expense, stock-based compensation expense, income taxes, and other items. For the periods presented, other items consisted of (i) restructuring charges associated with lease termination and severance costs, (ii) litigation charges in connection with the Antitrust Lawsuits, (iii) transaction and integration expenses associated with the Anywhere Merger, and (iv) other acquisition-related expenses. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by revenue.
Previous wording
(1)Represents transaction expenses incurred in connection with the closing of the Anywhere Merger and related integration activities. During the three months ended March 31, 2026, these expenses consist of legal, investment banking and other transaction-related costs, severance and other personnel-related costs, all of which were expensed as incurred. Additional information regarding the Anywhere Merger is provided in Note 3 — “Acquisitions” to our condensed consolidated financial statements included elsewhere in this Quarterly Report.
Current wording
(1)Represents transaction expenses incurred in connection with the closing of the Anywhere Merger and related integration activities. During the three and six months ended June 30, 2026, these expenses consist of legal, investment banking and other transaction-related costs, severance and other personnel-related costs, all of which were expensed as incurred. Additional information regarding the Anywhere Merger is provided in Note 3 — “Acquisitions” to our condensed consolidated financial statements included elsewhere in this Quarterly Report.
Previous wording
(3)Represents a charge of $7 million incurred during the three months ended March 31, 2026 in connection with the Antitrust Lawsuits. See Note 11 – “Commitments and Contingencies” to the consolidated financial statements included elsewhere in this Quarterly Report for more information.
Current wording
(3)Represents a charge of $7 million incurred during the six months ended June 30, 2026 in connection with the Antitrust Lawsuits. See Note 11 — “Commitments and Contingencies” to the consolidated financial statements included elsewhere in this Quarterly Report for more information.
Previous wording
The CODM evaluates segment performance and allocates resources based on Segment Revenue and Segment Adjusted EBITDA, a non-GAAP measure. Segment Adjusted EBITDA represents net income (loss) attributable to Compass, Inc. adjusted for depreciation and amortization, investment income, interest expense, stock-based compensation expense, benefit from income taxes, and other items. For the periods presented, other items consisted of (i) restructuring charges associated with lease termination and severance costs, (ii) litigation charges in connection with the Antitrust Lawsuits, and (iii) transaction and integration expenses associated with the Anywhere Merger. Segment Adjusted EBITDA margin is calculated by dividing Segment Adjusted EBITDA by segment revenue.
Current wording
The CODM evaluates segment performance and allocates resources based on Segment Revenue and Segment Adjusted EBITDA, a non-GAAP measure. Segment Adjusted EBITDA represents net income (loss) attributable to Compass, Inc. adjusted for depreciation and amortization, investment income, interest expense, stock-based compensation expense, income taxes, and other items. For the periods presented, other items consisted of (i) restructuring charges associated with lease termination and severance costs, (ii) litigation charges in connection with the Antitrust Lawsuits, and (iii) transaction and integration expenses associated with the Anywhere Merger. Segment Adjusted EBITDA margin is calculated by dividing Segment Adjusted EBITDA by segment revenue.
Previous wording
The segment information presented below reflects the same reportable segments and performance measures reviewed by the CODM and is consistent with the segment information disclosed in Note 17 — "Segment Information", to the condensed consolidated financial statements. The following table summarizes revenue, Segment Adjusted EBITDA and Segment Adjusted EBITDA margin by segment for the periods indicated, each of which is described below (in millions, except percentages):
Current wording
The segment information presented herein reflects the same reportable segments and performance measures reviewed by the CODM and is consistent with the segment information disclosed in Note 17 — “Segment Information” to the condensed consolidated financial statements.
Previous wording
Brokerage Segment Adjusted EBITDA was $147 million for the three months ended March 31, 2026, representing an increase of $84 million, or 133.3%, compared to the prior-year period, of which $57 million is attributable to the Anywhere Merger. The remaining increase of $27 million, or 42.9%, was primarily driven by revenue growth outpacing the increase in operating costs. Segment Adjusted EBITDA margin increased to 6.0% from 4.7% year-over-year, reflecting the same dynamic.
Current wording
Brokerage Segment Adjusted EBITDA was $377 million for the three months ended June 30, 2026 and $524 million for the six months ended June 30, 2026, representing an increase of $214 million, or 131.3% for the three months ended June 30, 2026, and $298 million, or 131.9%, for the six months ended June 30, 2026, compared to the prior-year periods. The year-over-year increase was primarily driven by the addition of Anywhere and revenue growth outpacing the increase in operating costs. Segment Adjusted EBITDA margin increased to 9.5% for the three months ended June 30, 2026 and 8.2% for the six months ended June 30, 2026 from 8.1% for the three months ended June 30, 2025 and 6.8% for the six months ended June 30, 2025, reflecting the same dynamic.
Previous wording
Franchise revenue and Segment Adjusted EBITDA increased $84 million and $44 million, respectively, compared to the prior-year period, substantially all of which was attributable to the Anywhere Merger. Stand-alone Compass had minimal franchise operations prior to the merger, and Anywhere's franchise business accounts for substantially all of the current-period results. Segment Adjusted EBITDA margin was 51.1% for the three months ended March 31, 2026, compared to 33.3% in the prior-year period, reflecting the margin profile of the combined Franchise segment following the merger.
Current wording
Integrated Services Segment Adjusted EBITDA increased $38 million and $49 million for the three and six months ended June 30, 2026, respectively, compared to the prior-year periods, substantially all of which was attributable to the Anywhere Merger. Because stand-alone Compass had smaller integrated services operations prior to the merger, Anywhere's integrated services businesses account for substantially all of the current-period results. Segment Adjusted EBITDA margin was 24.6% and 18.2% for the three and six months ended June 30, 2026, respectively, compared to 35.9% and 26.2% in the prior-year periods, respectively, reflecting the margin profile of the combined Integrated Services segment following the merger.
Previous wording
The following key business metrics provide insight into the operating activity underlying the Company's financial results for the three months ended March 31, 2026 and 2025. These metrics reflect transaction volume, pricing trends, real estate professional and franchise activity, and title-related services associated with residential real estate transactions. Certain metrics are more relevant to specific reportable segments due to differences in operating models, and the discussion below is organized by reportable segment to reflect that context. These metrics are presented to explain operating trends and activity levels and are not intended to represent measures of segment financial performance.
Current wording
The following key business metrics provide insight into the operating activity underlying the Company's financial results for the three and six months ended June 30, 2026 and 2025. These metrics reflect transaction volume, pricing trends, real estate professional and franchise activity, and title and escrow services associated with residential real estate transactions. Certain metrics are more relevant to specific reportable segments due to differences in operating models, and the discussion below is organized by reportable segment to reflect that context. These metrics are presented to explain operating trends and activity levels and are not intended to represent measures of segment financial performance.
Previous wording
The following table summarizes the Brokerage segment's key business metrics and non-GAAP financial measures for the periods indicated, each of which is described below:
Current wording
The following table summarizes the Brokerage segment's key business metrics on an actual and pro forma basis for the periods indicated, each of which is described below:
Previous wording
Total Transactions represents the sum of all transactions closed by our Brokerage segment during the period in which our real estate professional represented the buyer or seller in the purchase or sale of a home. A single transaction is counted twice when our real estate professionals represented both the buyer and the seller. This metric excludes rental transactions. We view Total Transactions as a key measure of the scale of our Brokerage platform, which drives our financial performance.
Current wording
Total Transactions represents the sum of all transactions closed by our Brokerage segment during the periods in which our real estate professional represented the buyer or seller in the purchase or sale of a home. A single transaction is counted twice when our real estate professionals represented both the buyer and the seller. This metric excludes rental transactions. We view Total Transactions as a key measure of the scale of our Brokerage operations, which drives our financial performance.
Previous wording
Gross Transaction Value represents the sum of all closing sale prices for homes transacted by real estate professionals within our Brokerage segment during the period. The value of a single transaction is counted twice when our real estate professionals represented both the buyer and the seller. This metric excludes rental transactions. We view Gross Transaction Value as a key measure of the scale of our Brokerage platform and the success of our real estate professionals, both of which ultimately impact revenue.
Current wording
Gross Transaction Value represents the sum of all closing sale prices for homes transacted by real estate professionals within our Brokerage segment during the periods. The value of a single transaction is counted twice when our real estate professionals represented both the buyer and the seller. This metric excludes rental transactions. We view Gross Transaction Value as a key measure of the scale of our Brokerage operations and the success of our real estate professionals, both of which ultimately impact revenue.
Previous wording
The following table summarizes the Franchise segment's key business metrics and non-GAAP financial measures for the periods indicated, each of which is described below:
Current wording
The following table summarizes the Franchise segment's key business metrics on an actual and pro forma basis for the periods indicated, each of which is described below:
Previous wording
Total Transactions represents the sum of all transactions closed by franchisees within our Franchise segment during the period in which a franchisee real estate professional represented the buyer or seller in the purchase or sale of a home. A single transaction is counted twice when franchisee real estate professionals represented both the buyer and the seller. We view Total Transactions as a key measure of the scale of our Franchise segment, which drives our royalty revenue. This metric excludes any transactions from our international franchisees.
Current wording
Total Transactions represents the sum of all transactions closed by franchisees within our Franchise segment during the periods in which a franchisee real estate professional represented the buyer or seller in the purchase or sale of a home. A single transaction is counted twice when franchisee real estate professionals represented both the buyer and the seller. We view Total Transactions as a key measure of the scale of our Franchise segment, which drives our royalty revenue. This metric excludes any transactions from our international franchisees.
Previous wording
Gross Transaction Value represents the sum of all closing sale prices for homes transacted by franchisee real estate professionals within our Franchise segment during the period. The value of a single transaction is counted twice when franchisee real estate professionals represented both the buyer and the seller. We view Gross Transaction Value as a key measure of the scale of our Franchise segment and the success of our franchisees, both of which ultimately impact royalty revenue. This metric excludes any transactions from our international franchisees.
Current wording
Gross Transaction Value represents the sum of all closing sale prices for homes transacted by franchisee real estate professionals within our Franchise segment during the periods presented. The value of a single transaction is counted twice when franchisee real estate professionals represented both the buyer and the seller. We view Gross Transaction Value as a key measure of the scale of our Franchise segment and the success of our franchisees, both of which ultimately impact royalty revenue. This metric excludes any transactions from our international franchisees.
Previous wording
Net Royalty Per Transaction represents the average net royalty revenue earned by our Franchise segment per franchisee transaction side closed during the period. Net royalty revenue reflects gross royalty revenue earned under our franchise agreements, net of volume incentives and other contractual reductions paid or credited to franchisees. We view Net Royalty Per Transaction as an indicator of the economic value our Franchise segment generates from each franchisee transaction and the effectiveness of our franchise pricing and incentive structure. This metric excludes any activity from our international franchisees.
Current wording
Net Royalty Per Side represents the average net royalty revenue earned by our Franchise segment per franchisee transaction side closed during the periods. Net royalty revenue reflects gross royalty revenue earned under our franchise agreements, net of volume incentives and other contractual reductions paid or credited to franchisees. We view Net Royalty Per Side as an indicator of the economic value our Franchise segment generates from each franchisee transaction and the effectiveness of our franchise pricing and incentive structure. This metric excludes any activity from our international franchisees.
Previous wording
The following table summarizes the Integrated Services segment's key business metrics for the periods indicated, each of which is described below:
Current wording
The following table summarizes the Integrated Services segment's key business metrics on an actual and pro forma basis for the periods indicated, each of which is described below:
Previous wording
Purchase Title and Escrow Transactions represents the number of title insurance policies and escrow settlements completed by our Integrated Services segment during the period in connection with home purchase transactions. We view Purchase Title and Escrow Transactions as an indicator of the scale of our title and escrow activity tied to residential home purchases and our ability to capture attach opportunities from real estate transactions.
Current wording
Purchase Title and Escrow Transactions represents the number of title insurance policies and escrow settlements completed by our Integrated Services segment during the periods in connection with home purchase transactions. We view Purchase Title and Escrow Transactions as an indicator of the scale of our title and escrow activity tied to residential home purchases and our ability to capture attach opportunities from real estate transactions.
Previous wording
Refinancing Title and Escrow Transactions represents the number of title insurance policies and escrow settlements completed by our Integrated Services segment during the period in connection with mortgage refinancing transactions. We view Refinancing Title and Escrow Transactions as an indicator of refinancing activity in the markets we serve, which is influenced by prevailing mortgage interest rates.
Current wording
Refinancing Title and Escrow Transactions represents the number of title insurance policies and escrow settlements completed by our Integrated Services segment during the periods in connection with mortgage refinancing transactions. We view Refinancing Title and Escrow Transactions as an indicator of refinancing activity in the markets we serve, which is influenced by prevailing mortgage interest rates.
Previous wording
Average Title and Escrow Revenue Per Transaction represents the average revenue earned by our Integrated Services segment per title and escrow transaction completed during the period, calculated as title and escrow revenue divided by Total Title and Escrow Transactions. We view Average Title and Escrow Revenue Per Transaction as an indicator of the revenue mix and pricing of our title and escrow services.
Current wording
Average Title and Escrow Revenue Per Transaction represents the average revenue earned by our Integrated Services segment per title and escrow transaction completed during the periods, calculated as title and escrow revenue divided by the sum of purchasing and refinancing title and escrow transactions. We view Average Title and Escrow Revenue Per Transaction as an indicator of the revenue mix and pricing of our title and escrow services.
Previous wording
Liquidity is also used to service debt. In connection with the Anywhere Merger, substantially all of Anywhere’s outstanding indebtedness was added to our balance sheet, resulting in a significant increase in the Company’s consolidated debt balance during the first quarter of 2026. Debt service payments will include interest payments on the Convertible Notes and on the aggregate principal amount outstanding of $2.1 billion of the fixed-rate Secured Notes and Unsecured Notes. The Secured Notes and Unsecured Notes bear a weighted-average interest rate of 6.95% and mature in 2029 and 2030, respectively.
Current wording
Liquidity is also used to service debt. In connection with the Anywhere Merger, substantially all of Anywhere’s outstanding indebtedness was added to our balance sheet, resulting in a significant increase in the Company’s consolidated debt balance starting in 2026. Debt service payments will include interest payments on the Convertible Notes and on the aggregate principal amount outstanding of $2.1 billion of the fixed-rate Secured Notes and Unsecured Notes. The Secured Notes and Unsecured Notes bear a weighted-average interest rate of 6.95% and mature in 2029 and 2030, respectively.
Previous wording
As described under the header "TCPA Litigation" in Note 11 — "Commitments and Contingencies" to our condensed consolidated financial statements included elsewhere in this Quarterly Report, our remaining payment of $19 million in settlement of the Bumpus case is expected to be made in the second quarter of 2026. Additionally, as described under the header "Real Estate Commission Buy-Side Antitrust Litigation" in Note 11, on February 23, 2026, we agreed to pay $10 million under the Anywhere Opt-In Settlement (and paid $1 million of this obligation in March 2026, following preliminary approval by the court) and in April 2026, we entered into the Compass Opt-In Settlement. Assuming final court approval of each of the Anywhere and Compass Opt-In Settlements, we currently expect to pay the remaining settlement amounts no earlier than the fourth quarter of 2026, although the timing could extend into 2027. Further, $54 million in remaining settlement payments under the Burnett, Moehrl and Nosalek cases described in Note 11 under the header "Real Estate Commission Sell-Side Antitrust Litigation" will be due within 21 business days after all appellate rights are exhausted, the timing of which is uncertain, but which we currently expect will occur in 2026.
Current wording
As described under the header “Real Estate Commission Sell-Side Antitrust Litigation” in Note 11 — “Commitments and Contingencies” to our condensed consolidated financial statements included elsewhere in this Quarterly Report, $54 million in remaining settlement payments under the Burnett, Moehrl, and Nosalek cases will be due within 21 business days after all appellate rights are exhausted; the timing is uncertain, but we currently expect this to occur in 2026. Additionally, as described under the header “Real Estate Commission Buy-Side Antitrust Litigation” in Note 11, on February 23, 2026, we agreed to pay $10 million under the Anywhere Opt-In Settlement (and paid $1 million of this obligation in March 2026, following preliminary approval by the court), and on April 2026, we agreed to pay $7 million under the Compass Opt-In Settlement (and paid $1 million of this obligation in June 2026, following preliminary approval by the court). Assuming final court approval of each of the Anywhere and Compass Opt-In Settlements, we currently expect to pay the remaining settlement amounts no earlier than the fourth quarter of 2026 and more likely in 2027.
Previous wording
As of March 31, 2026, we had cash and cash equivalents of $484 million. We maintain a Revolving Credit Facility that is available to us, subject to compliance with a financial covenant and certain other covenants. As of March 31, 2026, the Company had $500 million of borrowing capacity, there were no outstanding borrowings, and $449 million was available, after giving effect to $51 million of letters of credit. As of March 31, 2026, we were in compliance with the financial covenant under the Revolving Credit Facility. See Note 10 — “Debt” to our consolidated financial statements included elsewhere in this Quarterly Report for additional information.
Current wording
As of June 30, 2026, we had cash and cash equivalents of $694 million. We maintain a Revolving Credit Facility that is available to us, subject to compliance with a financial covenant and certain other covenants. As of June 30, 2026, the Company had $500 million of borrowing capacity, there were no outstanding borrowings, and $452 million was available, after giving effect to $48 million of letters of credit. As of June 30, 2026, we were in compliance with the financial covenant under the Revolving Credit Facility. See Note 10 — “Debt” to our consolidated financial statements included elsewhere in this Quarterly Report for additional information.
Previous wording
We believe that we will continue to meet our cash flow needs during the next twelve months through the sources outlined above. The issuance of the Convertible Notes provides additional liquidity to support seasonal working capital needs typically experienced in the first quarter, without reliance on our variable-rate Revolving Credit Facility.
Current wording
We believe we will continue to meet our cash flow needs over the next twelve months through the sources outlined above. The issuance of the Convertible Notes supplements our cash flow from operations, providing additional liquidity to support seasonal working capital needs without reliance on our variable-rate Revolving Credit Facility.
Previous wording
For more information regarding our indebtedness as of March 31, 2026, including the Revolving Credit Facility, Convertible Notes, Capped Call Transactions, Secured Notes and Unsecured Notes, Concierge Facility and Apple Ridge Securitization, see Note 10 — "Debt" in our condensed consolidated financial statements included elsewhere in this Quarterly Report.
Current wording
For more information regarding our indebtedness as of June 30, 2026, see Note 10 — “Debt” in our condensed consolidated financial statements included elsewhere in this Quarterly Report.
Previous wording
For the three months ended March 31, 2026, net cash used in operating activities was $157 million. The outflow was primarily due to Net income of $22 million adjusted for $127 million of non-cash income statement activity, primarily related to $402 million of a deferred income tax benefit partially offset by $163 million of depreciation and amortization and $108 million of stock-based compensation. In addition to the outflow driven by Net income adjusted for non-cash items, cash used in operations was further driven by outflows due to changes in operating assets and liabilities of $52 million. Included in these changes in operating assets and liabilities were cash payments related to Anywhere merger transaction and integration expenses as well as payments related to liabilities we assumed as part of the Anywhere Merger that became payable subsequent to the January 9, 2026 close date.
Current wording
For the six months ended June 30, 2026, net cash provided by operating activities was $34 million. This inflow was primarily driven by net income of $114 million, adjusted for $62 million of net non-cash items, primarily $316 million of depreciation and amortization and $149 million of stock-based compensation, partially offset by a $401 million deferred income tax benefit. These items were partially offset by a $142 million outflow from changes in operating assets and liabilities, which included cash payments for Anywhere merger transaction and integration expenses, as well as payments on liabilities assumed in the Anywhere Merger that became payable after the January 9, 2026 close date.
Previous wording
For the three months ended March 31, 2025, net cash provided by operating activities was $23 million. The inflow was primarily due to a $51 million Net loss adjusted for $56 million of non-cash charges and cash inflows due to changes in operating assets and liabilities of $18 million.
Current wording
For the six months ended June 30, 2025, net cash provided by operating activities was $96 million. The inflow was primarily due to a $12 million net loss adjusted for $137 million of non-cash charges, partially offset by cash outflows due to changes in operating assets and liabilities of $29 million.
Previous wording
During the three months ended March 31, 2026, net cash used in investing activities was $356 million consisting of $345 million in payments to acquire Anywhere, net of cash acquired and $11 million of capital expenditures.
Current wording
During the six months ended June 30, 2026, net cash used in investing activities was $366 million primarily consisting of $345 million in payments to acquire Anywhere, net of cash acquired, and $22 million of capital expenditures.
Previous wording
During the three months ended March 31, 2025, net cash used in investing activities was $165 million consisting of $161 million in payments for acquisitions, net of cash acquired and $4 million of capital expenditures.
Current wording
During the six months ended June 30, 2025, net cash used in investing activities was $182 million consisting of $171 million in payments for acquisitions, net of cash acquired, $9 million of capital expenditures, and $2 million for an investment in an unconsolidated entity.
Showing the first 40 of 44 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Additional discussion of financial metrics for the Company's reportable segments follows in the “Segment Operating Performance” section.
Current report — wording carried from elsewhere
The following table summarizes revenue, Segment Adjusted EBITDA, Segment Adjusted EBITDA margin, and pro forma revenue by segment for the periods indicated, each of which is described below (in millions, except percentages):
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
As part of the Christie’s International Real Estate acquisition, we acquired a proprietary multi-tenant technology platform that is offered to our franchisees operating under the Christie’s International Real Estate brand and their real estate professionals. Real estate professionals operating under historical Anywhere brands continue to utilize the technology-powered tools and services in place at the time of the Anywhere Merger.
Previous report — wording carried elsewhere
Integrated Services revenue and Segment Adjusted EBITDA increased $125 million and $11 million, respectively, compared to the prior-year period, substantially all of which was attributable to the Anywhere Merger. Stand-alone Compass had smaller integrated services operations prior to the merger. As a result, Anywhere's integrated services businesses account for substantially all of the current-period results. Segment Adjusted EBITDA margin was 8.8% for the three months ended March 31, 2026, compared to 9.1% in the prior-year period.