According to Compass.com, The real estate market may still be navigating economic shifts, but Compass, Inc. has once again proven its leadership with record-breaking results in the first quarter of 2025. As the largest residential real estate brokerage in the U.S. by sales volume, Compass reported strong growth in revenue, market share, and agent performance—setting the tone for what could be a transformative year.
In Q1 2025, Compass recorded $1.4 billion in revenue—an impressive 28.7% increase compared to the same period last year. Even without accounting for acquisitions, organic revenue growth hit 14.6%. While many real estate companies saw a downturn, Compass significantly outperformed the broader market, where transactions dropped by 2.1%. In contrast, Compass saw a 27.8% rise in transactions.
A major contributor to this performance was the recent acquisition of Christie’s International Real Estate, which fueled approximately 9.2% of revenue growth in the quarter.
Compass grew its national market share to 6.0%—an increase of 125 basis points year-over-year and its highest Q1 market share to date. Organic market share (excluding acquisitions) also climbed 82 basis points.
This expansion reflects the trust that both clients and top-performing agents are placing in the Compass brand. According to RealTrends, Compass is home to the highest number of top-producing agents and teams in the country.
One of the biggest highlights of the quarter was Compass’s record operating cash flow of $23.1 million—a 169% increase year-over-year. Free cash flow also hit $19.5 million, marking the fifth consecutive quarter of positive cash generation.
Despite a GAAP net loss of $50.7 million, the figure represents a major improvement compared to the $132.9 million loss reported in Q1 2024. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $15.6 million, up from a $20.1 million loss in the same period last year.
Compass ended the first quarter with 20,656 principal agents—a 41.6% increase from Q1 2024. This growth was driven both by strategic acquisitions and by strong organic recruitment. Impressively, agent retention remains high, with 96.6% of agents choosing to stay with the company.
Compass agents closed 49,121 transactions in Q1 2025, up from 38,449 a year earlier. That’s a 27.8% increase, while the rest of the U.S. market contracted. Gross transaction value (GTV) rose 31% to $52.4 billion, and organic GTV hit $47.3 billion.
One of Compass’s unique strategies—its 3-Phased Price Discovery and Marketing Strategy—is gaining traction among sellers. This approach encourages homeowners to list their properties first as a “Private Exclusive,” then as “Coming Soon,” before going fully live on the MLS. This sequence allows sellers to test pricing and demand while minimizing days on market and reducing the risk of price reductions.
In Q1, nearly half of Compass sellers outside of Washington State used this approach. Listings that were pre-marketed received offers 20% faster and had a 30% lower chance of undergoing a price drop. On average, pre-marketed homes sold for 2.9% more than homes listed directly to the public.
For a home priced at $1 million, that’s a potential gain of $29,000—simply by using Compass’s smarter marketing strategy.
Compass continues to innovate with tech-powered tools designed to simplify the home buying and selling process:
Make-Me-Sell: Over 12,500 homeowners have entered their ideal selling price into this tool, creating a pool of potential listings that are only accessible to Compass agents.
One-Click Title & Escrow Integration: Now available on iOS, this tool lets agents order title and escrow services directly through the Compass platform, doubling the attachment rate among users.
Compass One: Launched in February 2025, this all-in-one client dashboard gives buyers and sellers 24/7 transparency during the entire transaction. So far, 130,000+ invitations have been sent, and 21% of closings have used it.
Reverse Prospecting: This innovative feature shows sellers how many agents and buyers are interacting with their listing in real time, leading to more informed decisions. Over 100 successful matches have already occurred using this tool.
For Q2 2025, Compass expects revenue between $2.0 billion and $2.15 billion and adjusted EBITDA between $115 million and $135 million.
Full-year forecasts include continued profitability in free cash flow and disciplined operating expense growth. The company also expects to see the benefits of its recent acquisitions and technology investments continue to unfold throughout the year.
If you're curious about how Compass’s approach can help you maximize your home’s value—or if you’d like to explore off-market opportunities—Contact Marks Realty Group.
Source: Compass.com
