Compass, Inc. (COMP): Business Model Canvas [Dec-2025 Updated]

You're looking at a company that's successfully marrying real estate with tech, and the numbers from Q3 2025 confirm the strategy is working, even as they prep for the massive Anywhere Real Estate combination. Honestly, the core of Compass, Inc.'s (COMP) model is its agent base: they closed the quarter with 21,550 principal agents who kept their retention rate at a rock-solid 97.3%, driving revenue to $1.85 billion on $70.7 billion in Gross Transaction Value. Before you make any investment calls, you need to see the precise mechanics behind this performance, so let's break down their entire Business Model Canvas below.

Compass, Inc. (COMP) - Canvas Business Model: Key Partnerships

You're looking at how Compass, Inc. (COMP) is structuring its future through strategic alliances, especially as the Anywhere Real Estate Inc. (HOUS) merger nears its expected close in the second half of 2026. This combination is about scale and service integration, not just brokerage size.

Anywhere Real Estate Inc. (HOUS) for pending merger and scale

The definitive merger agreement, signed September 22, 2025, pairs Compass's technology focus with Anywhere Real Estate's established brands and global footprint. The combined entity is projected to have an enterprise value of approximately \$10 billion, including assumed debt. Under the terms, current Compass shareholders are expected to hold approximately 78% of the combined company on a fully diluted basis, with Anywhere shareholders holding about 22%. Each share of Anywhere common stock is set to be exchanged for 1.436 shares of Compass Class A common stock, valuing Anywhere at \$13.01 per share based on the September 19, 2025, 30-day volume-weighted average price. Compass secured a \$750 million financing commitment from Morgan Stanley Senior Funding, Inc. to support the transaction. Post-close, Compass expects to target a net leverage of approximately 1.5x Adjusted EBITDA by the end of 2028. The merger combines Compass's approximately 40,000 agents with Anywhere's approximately 300,000 agents, creating a platform with roughly 340,000 real estate professionals across over 120 countries and territories.

The immediate impact of the merger is the consolidation of major brand portfolios:

• Anywhere brings brands like Coldwell Banker and Century 21.
• Sotheby's International Realty, Corcoran, ERA, and Better Homes & Gardens Real Estate are included.
• The transaction also absorbs Anywhere's robust relocation services.

Regulatory review is ongoing; Compass voluntarily pulled and refiled its HSR notification in early December 2025, with the waiting period set to expire at 11:59 p.m. on January 2, 2026, unless extended.

Title and Escrow (T&E) joint ventures for seamless closing services

The integration of Anywhere's operations immediately expands Compass's ancillary services footprint. Compass reported that its T&E business hit a record in Q2 2025, with T&E attach hitting a record in both Q2 2025 and Q3 2025. The merger provides an immediate presence in over 30-plus service areas for title and escrow operations across all key markets. Compass's Q3 2025 results showed record T&E attach, contributing to the company's overall financial performance.

Mortgage Joint Ventures for client financing options

The combination of the two companies' mortgage joint ventures (JVs) with Rate is a significant financial component. Pro-forma for the first half of 2025, the combined entities would oversee a mortgage operation generating approximately \$9 billion in annual volume, positioning them as the 26th-largest U.S. originator for that period. Compass's existing JV, OriginPoint, originated \$2.88 billion in the past 12 months, while Anywhere's Guaranteed Rate Affinity (GRA) originated \$5.8 billion. The Proper Rate JV, which was folded into Compass post-acquisition of @properties, contributed \$340 million. Mortgage JV profitability was noted as a record in Q3 2025.

Here's a quick look at the mortgage JV scale as of H1 2025 pro-forma data:

For the first half of 2025, Compass reported \$2.5 million in equity income from unconsolidated entities, largely driven by OriginPoint earnings. Anywhere held a \$55 million investment balance in GRA as of June 30, 2025, and received \$11 million in dividends from it during H1 2025.

Independent brokerages for Christie's International Real Estate network

Compass completed the acquisition of Christie's International Real Estate in January 2025. This deal was funded with \$150 million in cash and \$294 million in Compass stock, totaling a \$444 million transaction value. The acquisition is expected to contribute \$500 million in annual revenue on a run-rate basis. The integration is already showing up in Compass's top-line results; the Christie's acquisition contributed 10.4% of the Q2 2025 revenue growth and 9.2% of the Q1 2025 revenue growth. The operating expense associated with the Christie's acquisition was \$105 million in Q2 2025 and is factored into the full-year 2025 OPEX outlook. The network provides global reach, previously boasting over 100 independently owned domestic and international affiliates across 50 countries and territories.

Key financial contributions from the Christie's acquisition through Q2 2025:

• Q2 2025 Revenue Growth Contribution: 10.4%
• Q1 2025 Revenue Growth Contribution: 9.2%
• Acquisition OPEX in Q2 2025: \$105 million

Finance: review the pro-forma combined entity's Q4 2025 projected leverage ratio against the 1.5x target by Friday.

Compass, Inc. (COMP) - Canvas Business Model: Key Activities

You're looking at the core engine of Compass, Inc. (COMP) as of late 2025, focusing on what they actually do day-to-day to drive their business. It's all about technology, people, and closing deals, plus layering on extra services.

Developing and maintaining the proprietary Compass technology platform.

This is the foundation, the reason many agents choose Compass over traditional brokerages. The platform aims to be the single place for an agent's primary workflows, from initial contact all the way to closing.

The commitment here is substantial, with a life-to-date investment in the technology platform reaching approximately $1.7 billion. This investment is designed to create scalable efficiency. The usage metrics show this activity is central to the agent experience; the platform hit a Q3 2025 record of 22 average weekly sessions per agent. If you assume a five-day work week, that's roughly four sessions per day an agent spends within the Compass ecosystem.

Recruiting and retaining high-performing Principal Agents.

Attracting and keeping top agents is non-negotiable in this business. Compass measures this success through its Principal Agent count and retention rates.

As of the end of Q3 2025, the number of Principal Agents stood at 21,550. This represented a year-over-year increase of 22.8% compared to the 17,542 agents at the end of Q3 2024. The recruiting momentum was strong in the third quarter of 2025, with a record 851 principal agents joining organically. Retention is also a key metric; Compass maintained a strong quarterly principal agent retention rate of 97.3% in Q3 2025. That's the kind of stickiness that builds a stable base for transactions.

Executing residential real estate brokerage transactions.

This is where the revenue is generated. Compass agents are consistently outperforming the broader market in transaction volume growth.

In Q3 2025, Compass agents closed 67,886 total transactions, marking a 21.5% increase compared to Q3 2024. The Gross Transaction Value (GTV) for that quarter reached $70.7 billion. Organic transaction growth in Q3 2025 was 6.6% year-over-year, which significantly outpaced the entire U.S. residential real estate market transaction increase of only 2% over the same period. The company has now outperformed the market on an organic basis for 18 consecutive quarters.

Here's a quick look at the transaction performance for the most recent reported quarters:

Expanding ancillary services attach rates (e.g., T&E One-Click).

The strategy involves driving agents to use integrated services like Title & Escrow (T&E) and Mortgage, which carry higher potential margins than pure brokerage commissions.

The focus on integrating these services directly into the platform is paying off, as T&E attach was noted as one of the quarterly records achieved in Q3 2025. While the specific Q3 2025 attach rate percentage isn't explicitly stated in the Q3 release, the momentum is clear. For context, the One-click Title Integration had already driven Title & Escrow attach rates to improve by more than 800 basis points over the four quarters leading up to Q4 2024. Furthermore, the mortgage joint venture reported profitability in Q3 2025, another sign of successful ancillary service integration.

Key indicators for ancillary service success include:

• T&E attach rate improvement over 800 basis points in the four quarters leading up to Q4 2024.
• T&E attach was a quarterly record in Q3 2025.
• Mortgage joint venture reported profitability in Q3 2025.

The company is definitely pushing these services to boost overall profitability per transaction. Finance: draft 13-week cash view by Friday.

Compass, Inc. (COMP) - Canvas Business Model: Key Resources

You're looking at the core assets that drive Compass, Inc.'s value proposition right now, late in 2025. Honestly, for a brokerage, the biggest differentiators aren't just the agents; it's the tech stack they run on and the sheer volume of data they control. That proprietary end-to-end technology platform is central; it's the custom-built, cloud-native software service that lets agents manage everything from first contact to close with a single login. You should know they've poured serious capital into this-we're talking about a $1.6 billion investment to build it out, plus they continue to invest over $100 million in technology annually. The latest iterations, like the client-facing Compass One dashboard launched in February 2025, and the next phase of Compass AI (sometimes referred to as AI 2.0) announced in June 2025, are designed to automate administrative tasks and provide proactive, voice-activated support to keep agents focused on relationships.

Here's a quick look at the hard numbers defining the scale of these key resources as of the third quarter of 2025:

The network itself is a massive, tangible asset. It's not just the headcount, but the quality and retention that matters. You'll see that the platform is designed to keep these top producers around; Q3 2025 saw a quarterly principal agent retention rate of 97.3%. That high retention, combined with the agent growth, directly fuels the GTV engine. The platform hit a Q3 record of 22 average weekly sessions per agent, showing deep integration into their daily workflow. Defintely, the data asset is huge, too.

The CRM database represents future inventory potential, not just current activity. Consider what that scale means for lead generation:

• The CRM database holds over 100 million contacts.
• Tools like Compass Make-Me-Sell are specifically aimed at converting a portion of these contacts into 'willing-to-sell' inventory.
• This inventory, once qualified, is exclusive to Compass agents.
• The platform's success is directly tied to the efficiency of its agents, who closed 67,886 total transactions in Q3 2025.

Finance: draft 13-week cash view by Friday.

Compass, Inc. (COMP) - Canvas Business Model: Value Propositions

You're looking for the hard numbers that define what Compass, Inc. (COMP) is actually delivering to its key customer segments right now. Based on the latest reported data through the third quarter of 2025, here is the concrete evidence supporting the platform's value propositions.

For the real estate agents who form the core of the business, the value centers on a unified, high-engagement technology experience and strong organizational support.

• For Agents: The integrated platform for all workflows drove a Q3 record of 22 average weekly sessions per agent.
• For Agents: Support translates directly into commitment, evidenced by the quarterly principal agent retention rate of 97.3% in Q3 2025.

The platform's utility is clear when you see the usage metrics. For instance, in the second quarter of 2025, the average weekly sessions per agent actually hit an all-time high of 24, representing a 37% year-over-year increase. Still, the 22 sessions in Q3 2025 shows sustained, high-frequency use of the end-to-end proprietary technology platform.

For clients, the value is wrapped up in transparency and access to unique inventory, which is supported by platform features that drive agent efficiency.

• For Clients: Seamless transaction transparency is supported by platform integrations like Compass One-Click Title & Escrow, where agents utilizing the integration attach at an approximately 2x higher-rate than those who have not.
• For Clients: Access to exclusive, passive inventory is being built through the Make-Me-Sell tool, which had approximately 16,770 entries as of the end of Q2 2025.

Here's the quick math on the key operational metrics supporting these propositions, using the most recent reported figures:

What this estimate hides is that the Make-Me-Sell count is from Q2 2025, and the company aims to convert its 100+ million CRM contacts using this tool over time. The agent retention of 97.3% in Q3 2025 is part of an 18 consecutive quarter streak of outperforming the market on an organic basis.

Compass, Inc. (COMP) - Canvas Business Model: Customer Relationships

You're looking at how Compass, Inc. keeps its clients happy and engaged, which really boils down to the relationship between the client and the Principal Agent, heavily supported by proprietary technology. The core of this is the high-touch service model.

Dedicated, high-touch personal service from Principal Agents.

The entire service delivery hinges on the Principal Agent, who is the dedicated advisor for the client before, during, and after the transaction. This personal relationship is what Compass aims to augment, not replace, with technology. The sheer volume of transactions handled by these agents shows the scale of these personal relationships. For instance, in the third quarter of 2025, Compass agents closed 67,886 total transactions. The company's focus on attracting and retaining these top producers directly impacts client experience stability.

Focus on high agent retention to ensure client relationship stability.

Client relationship stability is directly tied to agent tenure. Compass, Inc. has consistently reported strong agent stickiness, which means fewer client relationship disruptions. You can see this in the quarterly retention figures. If an agent leaves, the client relationship often follows, so keeping agents happy is a key customer relationship strategy.

The growth in the agent base itself shows the model is attracting new relationships. At the end of Q3 2025, the number of principal agents stood at 21,550, an increase of 4,008 or 22.8% year-over-year. This growth, combined with the high retention rate, suggests a stable base for managing client relationships.

Tech-enabled self-service and transparency via client dashboards.

For transparency, Compass, Inc. rolled out Compass One nationally on February 3, 2025. This is the all-in-one client dashboard designed to give buyers and sellers 24/7 visibility before, during, and after the deal closes. It's a key part of the self-service offering. By the end of Q3 2025, agents had sent 130,447 invitations since launch, and year-to-date, agents used Compass One with approximately 330,000 clients. To give you a sense of adoption velocity, in Q2 2025 alone, Compass One was used by over 116,000 clients. Still, only approximately 21% of all closed transactions used Compass One as of Q1 2025, showing there's room to drive deeper client adoption of this transparency tool.

Agent-driven relationship management using Compass CRM tools.

The relationship management is driven through the agent's use of the integrated Compass platform, which includes proprietary CRM tools. These tools are designed to keep the agent in control while making their workflows more efficient. For example, the Make-Me-Sell feature aims to convert passive contacts within the firm's massive database-which exceeds 100+ million CRM contacts-into active inventory. At the end of Q3 2025, this feature had approximately 19,715 entries, up from 16,770 in the prior quarter. Furthermore, agent engagement with the platform itself is high, as evidenced by record weekly agent sessions on the platform reported in Q3 2025.

• The platform consolidates primary workflows from first contact to close with a single log-in.
• Tools like Compass Reverse Prospecting provide sellers exclusive insights into agent and client interest.
• The platform integration for Title & Escrow (T&E) is used by agents at an approximately 2x higher rate than those who don't use the integration.

Compass, Inc. (COMP) - Canvas Business Model: Channels

You're looking at how Compass, Inc. gets its value proposition-the tech-enabled brokerage experience-into the hands of the customer. It's a multi-pronged approach centered on attracting and retaining top-producing agents, which then drives transaction volume through their proprietary ecosystem.

Principal Agents (primary sales and service delivery)

The agents are the core channel. Compass, Inc. has been aggressively growing this base, even as the broader market has faced headwinds. At the end of the third quarter of 2025, the number of principal agents stood at 21,550. This represented a year-over-year increase of 4,008 agents, or 22.8% compared to Q3 2024. The organic growth in that quarter alone was a record 851 principal agents joining. Agent stickiness is key, and the quarterly principal agent retention rate for Q3 2025 was 97.3%.

Here's a snapshot of that agent base growth:

The total agent count, which includes those not designated as principal agents, was reported at 37,135 at the end of Q1 2025.

Proprietary Compass technology platform and mobile applications

The technology platform is the central nervous system, designed to consolidate the agent's workflow. The company has invested $1.7 billion into this platform over the last 12 years. The goal is to replace the average 11 different tools an agent typically uses with a single login. Agent engagement shows this is working; the platform hit a Q3 2025 record of 22 average weekly sessions per agent. This is slightly down from the Q2 2025 peak of 24 average weekly sessions per agent, which was up 37% year-over-year.

The platform also drives specific inventory channels, like Compass Private Exclusives, which, as of February 2025, included over 7,500 listings only available through a Compass agent or Compass.com.

Key platform usage metrics for 2025 include:

• 22 average weekly sessions per agent (Q3 2025 record).
• 24 average weekly sessions per agent (Q2 2025 all-time high).
• $1.7 billion invested in the platform over 12 years.
• 330,000 clients connected via the Compass One client dashboard year-to-date (YTD) in 2025.
• 600 users in Beta for the new Buyer Demand Tool (Q3 2025).

Local brokerage offices in key US metropolitan markets

The physical presence is concentrated in key markets to support the agent network. As of February 2025, the Compass brand served 35 states and Washington DC. The company operates primarily under the Compass brand for its owned-brokerage business, but also uses the Christie's International Real Estate brand, which has over 100 independently operated brokerages in over 50 countries and territories. The company's Q3 2025 total market share reached 5.63%, an 83 basis point increase year-over-year.

Ancillary services joint ventures (Title, Mortgage)

The channel extends beyond the initial transaction commission into integrated services, which management noted contributed to record profitability in Q3 2025. The potential volume in title and escrow alone represents an estimated $80 billion of commissionable volume. The company targets a 30% EBITDA margin for both title and escrow and mortgage operations. The Q3 2025 results included records for T&E attach and mortgage JV profitability. The company also completed the acquisition of a title company in Texas in April 2025.

Ancillary service performance indicators:

Compass, Inc. (COMP) - Canvas Business Model: Customer Segments

You're looking at the core groups Compass, Inc. (COMP) serves as of late 2025, based on their latest reported operational data.

High-performing residential real estate agents and teams

This segment is the primary focus, as the company's growth is directly tied to attracting and retaining these top producers. The numbers show a clear focus on scaling this group.

• Principal Agents at the end of Q3 2025: 21,550.
• Principal Agents at the end of Q2 2025: 20,965.
• Organic Principal Agent additions in Q3 2025: 851, an all-time high.
• Quarterly Principal Agent retention rate in Q3 2025: 97.3%.
• Total agent count at the end of Q1 2025 was 37,135.

Compass, Inc. was ranked as the number one real estate brokerage by sales volume for 2024 by RealTrends in April 2025 for the fourth year in a row. That's a strong signal for agents looking for market leadership.

Home buyers and sellers in premium and luxury US markets

The customer base includes those transacting in the broader US market, with a specific strategic push into the premium and luxury space, partly through acquisitions. Their overall market penetration reflects this segment's importance.

The growth in total transactions outpaced the market significantly; total transactions grew by 21.5% year-over-year in Q3 2025, while the market transactions increased by 2.0%.

Clients seeking integrated ancillary services (Title, Escrow, Mortgage)

This segment represents clients of the agents who opt into Compass, Inc.'s in-house or joint venture services. The company reports records in the attach rates and profitability for these services.

• The Title and Escrow business quadrupled profitability year-over-year in Q4 2024, with management expecting to double Adjusted EBITDA for this segment in 2025.
• The Q3 2025 results marked a record for T&E attach.
• The Q3 2025 results marked a record for mortgage JV profitability.

Brokerage firms targeted for strategic acquisition

This segment is less about the end consumer and more about acquiring established brokerage operations to gain market share, agent density, and ancillary service footprints in key regions. The acquisitions in 2025 were significant additions to the platform.

Key acquisitions and their associated reported OPEX/revenue impact:

• Christie's International Real Estate acquisition closed on January 13, 2025.
• Washington Fine Properties acquisition closed in February 2025.
• A title company in Texas acquisition closed in April 2025.
• Four acquisitions were completed during Q3 2025.
• Acquisitions completed since July 1, 2024, contributed 12.6% to Q3 2025 revenue growth.

The OPEX for the Christie's International Real Estate acquisition was reported as $105 million for the full year 2025 outlook. Finance: draft 13-week cash view by Friday.

Compass, Inc. (COMP) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive the Compass, Inc. (COMP) engine, which is heavily weighted toward compensating the agents who generate the revenue. Honestly, this is where the rubber meets the road for any brokerage.

Agent commission splits and incentives are definitely the largest cost component. Compass, Inc. negotiates these on a case-by-case basis, which means the cost structure isn't uniform across the entire agent base. For context, historical data suggests that on average, a significant portion of revenue flows back to agents.

The overall spending on operations, excluding the direct agent commissions, is tightly managed. For the full year 2025, Compass, Inc. has an updated outlook for Non-GAAP Operating Expenses (OpEx).

Here's the quick math on the projected full-year OpEx:

• Non-GAAP OpEx projected for FY 2025: $1.000 billion to $1.005 billion.
• This updated range reflects a reduction from a prior high-end estimate of $1.020 billion.

The remaining OpEx is allocated across several key areas that support the agent platform and corporate functions. What this estimate hides is the direct commission cost, which is variable based on transaction volume.

Technology development, maintenance, and cloud infrastructure are central to the Compass, Inc. value proposition. This spend funds the proprietary end-to-end platform, including:

• Cloud-based software for customer relationship management (CRM).
• Marketing and client service tools.
• New feature rollouts like Compass GPT integration.
• Development and maintenance of tools like Performance Tracker and Private Exclusives.

You need to track non-cash expenses closely, as they can obscure operational performance. For the third quarter of 2025, the stock-based compensation expense was a specific line item impacting GAAP results.

• Stock-based compensation expense in Q3 2025: $59.6 million.

For the traditional overhead categories, we can look at the most recent fully reported annual figures for Sales and Marketing as a baseline, keeping in mind that G&A and lease costs are embedded within the total Non-GAAP OpEx figure. For the year ended December 31, 2024, Sales and marketing expense was:

This compares to $435.4 million, or 8.9% of revenue, in 2023, showing a trend toward cost discipline in that area.

Compass, Inc. (COMP) - Canvas Business Model: Revenue Streams

You're looking at the core money-making engine for Compass, Inc. as of late 2025. The structure is heavily weighted toward the transaction side of residential real estate, but the ancillary services are becoming increasingly important profit drivers.

The primary revenue source is commission revenue from residential real estate transactions. This is directly tied to the Gross Transaction Value (GTV) that agents close using the Compass platform. For instance, in the third quarter of 2025, the Gross Transaction Value (GTV) reached $70.7 billion, which was a 22.5% increase compared to the third quarter of 2024. To put that in perspective, the second quarter of 2025 saw an even higher GTV of $78.3 billion.

The overall financial target for the year is significant. The Full Year 2025 projected revenue is approximately $7.26 billion. This projection is built upon strong quarterly performance, such as the Q3 2025 revenue of $1.85 billion, which represented a 23.6% year-over-year growth.

Here's a look at the reported revenue across the first three quarters of 2025, which underpins that annual projection:

The push for higher profitability comes from revenue from ancillary services (Title, Escrow, Mortgage JV). These services are designed to be attached to the core transaction. The Title and Escrow business, for example, quadrupled its profitability year-over-year in the first quarter of 2025. Furthermore, the mortgage joint venture (JV) hit its most profitable quarter in Q3 2025, with equity in income growing by $3 million. This focus on the ancillary flywheel is a key part of the strategy, especially following the acquisition of Christie's International Real Estate, which contributed to revenue growth and improved commission economics.

Finally, the model includes revenue from brokerage fees and other agent-related service fees. While the primary revenue is commission-based, the company's platform usage metrics suggest value capture beyond the standard split. For instance, agents averaged 22 weekly sessions on the proprietary technology platform in Q3 2025, indicating deep engagement with services that likely carry associated fees or drive higher commission volume.

The revenue streams are supported by agent growth and market share gains:

• Total Principal Agents at end of Q3 2025: 21,550.
• Total Quarterly Market Share in Q3 2025: 5.63%.
• Total Transactions Closed in Q3 2025: 67,886.
• Total Transactions Growth (Q3 2025 vs Q3 2024): 21.5%.

Finance: draft 13-week cash view by Friday.