Compass (COMP) Stock Jump on Strong Q4 Results and Merger Approval

TLDR

• Compass raised Q4 guidance to the high end of $1.59B-$1.69B revenue range and at or above adjusted EBITDA guidance of $35M-$49M
• The company added 800 agents during the fourth quarter
• Compass announced a $750 million convertible senior notes offering due 2031
• Shareholders approved the Anywhere Real Estate merger with 99% of Compass stockholders and 72.4% of Anywhere stockholders voting in favor
• The merger is expected to close on January 9, 2026

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Compass stock climbed 9.3% on January 7 as investors responded to multiple positive announcements from the real estate brokerage. The company lifted its fourth-quarter outlook and secured shareholder approval for its acquisition of Anywhere Real Estate.

Compass, Inc., COMP

The New York City-based firm said it expects fourth-quarter revenue to land at the high end of its previous guidance range of $1.59 billion to $1.69 billion. Adjusted EBITDA is projected to meet or slightly exceed the top of the $35 million to $49 million range.

Compass added 800 agents during the quarter. This expansion shows the company continues to grow its operational footprint.

The company also announced a $750 million convertible senior notes offering due in 2031. The notes represent more than 10% of Compass’s current market cap.

Compass plans to use proceeds for general corporate purposes and to fund its acquisition of Anywhere Real Estate. Debt offerings typically draw concern from investors, but the market overlooked this given the improved guidance.

Merger Gets Green Light

Shareholders from both companies overwhelmingly approved the merger deal. About 99% of Compass stockholders voted to issue Class A shares to Anywhere stockholders as part of the transaction.

On the Anywhere side, 72.4% of stockholders approved adopting the merger agreement. The deal is now set to close on January 9, 2026.

The acquisition will nearly double Compass’s size. The company is already the largest brokerage based on transaction volume.

Anywhere Real Estate shareholders saw even bigger gains on the news. Anywhere stock jumped 17.8% to about $17 per share in after-market trading.

Strong Year Despite Market Headwinds

Compass delivered a surprisingly strong 2025 despite weakness in the housing market. Recent tech investments appear to be paying off for the brokerage.

As of the last close, Compass shares were up 85.8% over the past year. Anywhere Real Estate performed even better with a 339.2% gain over the same period.

The stock has been largely ignored by investors until recently. Trading volume on January 7 was significantly lower than the 13 million average daily volume.

The company’s gross margin stands at 10.62%. Its 52-week range spans from $5.10 to $12.58, with shares hitting the upper end following the announcements.

The merger is expected to close on January 9, 2026, with Compass using funds from the convertible notes offering to help finance the transaction.

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