Cash conversion is weak, with operating cash flow of only $34M against net income of $92M in 2026Q2 (OCF/NI of 0.37), and FCF swung from -$168M in 2026Q1 to $12M in 2026Q2, reflecting lumpy working capital and heavy acquisition outflows.
Compass, Inc. (COMP) cash flow statement — 8-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Cash from Operations | 327.3M | 216.7M | 121.5M | -25.9M | -292.3M | -28.6M | -58.1M | -377M | -189.4M |
| Operating CF Margin % | - | 3.11% | 2.16% | -0.53% | -4.86% | -0.45% | -1.56% | -15.8% | -21.41% |
| Operating CF Growth % | -340.29% | 78.35% | 569.11% | 91.14% | -922.03% | 50.77% | 84.59% | -99.05% | - |
| Net Income | 133.4M | -58.7M | -154.5M | -321.3M | -601.5M | -494.1M | -270.2M | -388M | -223.8M |
| Depreciation & Amortization | 487.9M | 112.7M | 82.4M | 90M | 86.3M | 64.4M | 51.2M | 40.9M | 14.8M |
| Stock-Based Compensation | 242.5M | 202.7M | 127.5M | 158.2M | 0 | 386.3M | 43.2M | 37.4M | 52.5M |
| Deferred Taxes | -408M | 0 | 0 | 0 | 0 | 10.2M | 0 | 0 | 1.8M |
| Other Non-Cash Items | -6.2M | -6.9M | 5.2M | 12.2M | 252.1M | -3.6M | 25.2M | -3.1M | 500K |
| Working Capital Changes | -123.4M | -33.1M | 60.9M | 35M | -29.2M | 8.2M | 92.5M | -64.2M | -35.2M |
| Change in Receivables | -7.5M | 6.1M | -8M | 14.5M | -5.2M | 17.9M | 300K | -103M | -21.6M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -8.5M | 0 | 0 | 0 |
| Change in Payables | -1.7M | 2.5M | -6.3M | 1.8M | -20.7M | -3.6M | -6.5M | 9.2M | 22.4M |
| Cash from Investing | -467.3M | -191.3M | -36.6M | -11.7M | -100.1M | -192.5M | -13.4M | 389.9M | -627.1M |
| Capital Expenditures | -33.1M | -13.4M | -15.7M | -11.2M | -70.1M | -50.1M | -43.3M | -74.1M | -35.3M |
| CapEx % of Revenue | 0.26% | 0.19% | 0.28% | 0.23% | 1.16% | 0.78% | 1.16% | 3.11% | 3.99% |
| Acquisitions | -442.2M | -174M | -18.9M | 700K | -15M | -142.4M | -25.6M | -38.2M | -88.7M |
| Investments | - | - | - | - | - | - | - | - | - |
| Other Investing | 9.5M | 0 | -2M | -1.2M | 0 | -142.4M | 0 | 0 | -503.1M |
| Cash from Financing | 811.7M | -50.2M | -28M | -157.4M | 136M | 399.3M | 19.9M | 350.2M | 857.2M |
| Debt Issued (Net) | 981.8M | -5M | -1.2M | -157.1M | 165.7M | 7.8M | 8.4M | 0 | 0 |
| Equity Issued (Net) | -61M | 20.7M | 11.7M | 32.3M | 11.3M | 439.6M | 1M | 343.3M | 853.5M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -97M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -109.1M | -65.9M | -38.5M | -32.6M | -41M | -48.1M | 10.5M | 6.9M | 3.7M |
| Net Change in Cash | 670.7M | -24.8M | 56.9M | -195M | -256.4M | 178.2M | -51.6M | 363.1M | 40.7M |
| Free Cash Flow | 294.2M | 203.3M | 105.8M | -37.1M | -362.4M | -78.7M | -101.4M | -451.1M | -224.7M |
| FCF Margin % | 2.33% | 2.92% | 1.88% | -0.76% | -6.02% | -1.23% | -2.73% | -18.91% | -25.4% |
| FCF Growth % | 56.66% | 92.16% | 385.18% | 89.76% | -360.48% | 22.39% | 77.52% | -100.76% | - |
| FCF per Share | 0.34 | 0.36 | 0.21 | -0.08 | -0.85 | -0.24 | -0.25 | -1.27 | -0.63 |
| FCF Conversion (FCF/Net Income) | 2.21x | -3.70x | -0.79x | 0.08x | 0.49x | 0.06x | 0.22x | 0.97x | 0.85x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying COMP stock.
Compass, Inc. (COMP) generated $216.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Compass, Inc. (COMP) generated $203.3M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Compass, Inc. (COMP) spent $13.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
SBC inflates reported earnings
Metrics are mathematically derived from official filings.
Earnings Quality Masked by SBC
In 2026Q2, Compass reported net income of $92M but operating cash flow of only $34M, an OCF/NI ratio of 0.37, as per the latest quarterly report, indicating weak cash conversion.
The gap between net income and operating cash flow is largely attributable to stock-based compensation of $149M, which exceeded net income, and a working capital outflow of $142M. This suggests that reported profitability is not translating into cash at the same rate, and investors should monitor whether SBC will continue to inflate earnings without corresponding cash generation.
FCF Volatility Amid Revenue Surge
Free cash flow swung from -$168M in 2026Q1 to $12M in 2026Q2, with FCF margin improving from -6.2% to 0.3%, based on reported figures, reflecting the lumpy nature of the business.
The trajectory shows extreme quarter-to-quarter volatility, with 2025Q3 and Q4 generating strong FCF of $73.6M and $42.2M, respectively, but 2026Q1 saw a significant outflow. This volatility suggests that the revenue acceleration in 2026Q2 has not yet translated into stable cash generation, and the company's cash flow remains unpredictable.
Minimal Capital Intensity
Capital expenditures averaged just 0.3% of revenue over the last ten quarters, as per financial statements, indicating a highly asset-light model with minimal reinvestment needs.
CapEx has remained consistently low, ranging from $1.9M to $22M per quarter, which is negligible relative to revenue that reached $4.3B in 2026Q2. This suggests that Compass does not require significant capital investment to grow, but it also means that cash flow is more sensitive to working capital and operating expenses.
Working Capital Swings Drive Cash Flow
Working capital changes were a major source of volatility, with a $142M outflow in 2026Q2 and an $85.7M inflow in 2024Q1, as reported in the cash flow statement, highlighting the impact of timing.
The working capital swings are substantial relative to operating cash flow, suggesting that Compass's cash generation is heavily influenced by the timing of collections and payments. This may indicate that the company's cash conversion cycle is not stable, and investors should monitor how working capital management evolves as revenue scales.
Acquisitions and Buybacks Consume Cash
In 2026Q2, Compass deployed $345M on acquisitions and $97M on buybacks, while paying no dividends, as per the cash flow statement, indicating aggressive capital deployment.
The significant cash outflows for acquisitions and buybacks in 2026Q2, totaling $442M, far exceeded operating cash flow of $34M, suggesting that the company is relying on other sources of funding or cash reserves. This aggressive deployment may signal management's confidence in growth, but it also raises questions about the sustainability of such spending given the volatile cash generation.
Cumulative Cash vs. Earnings Gap
Over the last ten quarters, cumulative net income was -$5.2M while cumulative operating cash flow was $214.7M, as per reported figures, showing a divergence favoring cash flow.
Despite near-breakeven cumulative net income, operating cash flow has been positive, driven by non-cash charges like D&A and SBC. This suggests that the company's cash generation has been stronger than its accounting profitability, but the recent quarters show a narrowing gap as SBC and working capital outflows increase, warranting close monitoring.
What Could Invalidate the Base Case
The cash flow statement obscures the true cost of SBC, which totaled $149M in 2026Q2, exceeding net income, as per the latest quarterly report, potentially overstating cash generation.
While operating cash flow appears robust, the substantial non-cash SBC expense suggests that reported cash flow may not fully reflect the economic cost of employee compensation. Additionally, the heavy acquisition spending in 2026Q2 may indicate that growth is being purchased rather than organically generated, and investors should scrutinize whether these investments will yield sustainable cash returns.