• Compass, Inc. recently reported third quarter 2025 earnings, with sales increasing to US$1.85 billion and a net loss of US$4.6 million, while providing revenue guidance for the fourth quarter in the range of US$1.59 billion to US$1.69 billion.
• Despite widening quarterly losses, Compass saw a substantial year-over-year improvement in net loss for the first nine months, signaling efforts to enhance operational efficiency.
• Following the updated quarterly revenue guidance, we'll explore how Compass's financial outlook influences its investment narrative and future potential.

These 13 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Compass Investment Narrative Recap

Compass shareholders are generally betting on the company’s potential to drive margin improvement and expand its technology-driven real estate platform, despite ongoing losses and heavy reliance on commission-based revenue. The latest quarterly results, while showing year-over-year sales growth and narrowed losses for the first nine months, haven’t materially changed the main short-term catalyst, the scaling of its technology to boost agent productivity, or the leading risk of industry-wide regulatory changes that could challenge Compass’s differentiation and revenue stability.

Of the recent company updates, the most relevant is Compass’s revenue guidance for the fourth quarter of 2025, set between US$1.59 billion to US$1.69 billion. This outlook will be closely watched, as any shift from expectations may directly influence how investors weigh ongoing regulatory pressures and the company’s success in leveraging its platform to capture market share.

However, investors should take note that while cost discipline is improving, there remains considerable uncertainty around...

Compass' outlook anticipates $9.1 billion in revenue and $275.1 million in earnings by 2028. This projection assumes annual revenue growth of 13.1% and a $328.6 million increase in earnings from the current level of -$53.5 million.

Uncover how Compass' forecasts yield a $9.69 fair value, a 10% upside to its current price.

Exploring Other Perspectives

Five fair value estimates from the Simply Wall St Community range from US$9.69 to US$24 per share, highlighting diverse views on Compass’s future. As these perspectives reflect differing forecasts around Compass’s ability to deliver sustainable growth amid sector regulatory headwinds, you should consider several viewpoints before making your own decision.

Explore 5 other fair value estimates on Compass - why the stock might be worth over 2x more than the current price!

Build Your Own Compass Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Compass research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Compass research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Compass' overall financial health at a glance.

Want Some Alternatives?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• We've found 16 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 38 best rare earth metal stocks of the very few that mine this essential strategic resource.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.