Revenue growth accelerated sharply to 109.1% year-over-year in 2026Q2, but gross margin collapsed to 2.9% from 25.7% in the prior quarter, while SBC of $149M exceeded net income of $92M, clouding earnings quality.
Compass, Inc. (COMP) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 12.61B | 6.96B | 5.63B | 4.88B | 6.02B | 6.42B | 3.72B | 2.39B | 884.7M |
| Revenue Growth % | 89.8% | 23.67% | 15.23% | -18.83% | -6.28% | 72.57% | 55.94% | 169.7% | - |
| Cost of Goods Sold | 11.52B | 6.22B | 4.63B | 4.01B | 4.94B | 5.31B | 3.06B | 1.94B | 695.4M |
| COGS % of Revenue | - | 89.39% | 82.33% | 82.03% | 82.02% | 82.71% | 82.16% | 81.12% | 78.6% |
| Gross Profit | 1.08B | 738.7M | 994.5M | 878M | 1.08B | 1.11B | 663.9M | 450.4M | 189.3M |
| Gross Margin % | 8.6% | 10.61% | 17.67% | 17.97% | 17.98% | 17.29% | 17.84% | 18.88% | 21.4% |
| Gross Profit Growth % | - | -25.72% | 13.27% | -18.85% | -2.58% | 67.27% | 47.4% | 137.93% | - |
| Operating Expenses | 1.06B | 768M | 1.15B | 1.19B | 1.67B | 1.6B | 937.2M | 852.2M | 427M |
| OpEx % of Revenue | - | 11.03% | 20.42% | 24.42% | 27.77% | 24.97% | 25.19% | 35.72% | 48.26% |
| Selling, General & Admin | 697.4M | 978.7M | 533.9M | 561.1M | 783.2M | 798.9M | 514.6M | 475.2M | 260M |
| SG&A % of Revenue | - | 14.06% | 9.48% | 11.49% | 13.01% | 12.44% | 13.83% | 19.92% | 29.39% |
| Research & Development | 291.1M | 366.3M | 188.8M | 184.5M | 360.3M | 365.3M | 146.3M | 131.3M | 56.7M |
| R&D % of Revenue | - | 5.26% | 3.35% | 3.78% | 5.99% | 5.69% | 3.93% | 5.5% | 6.41% |
| Other Operating Expenses | -1000K | -577M | 426.6M | 447.3M | 527.8M | 439.3M | 276.3M | 245.7M | 110.3M |
| Operating Income | 21.4M | -29.3M | -154.8M | -314.9M | -589.4M | -493M | -273.3M | -401.8M | -237.7M |
| Operating Margin % | 0.17% | -0.42% | -2.75% | -6.45% | -9.79% | -7.68% | -7.35% | -16.84% | -26.87% |
| Operating Income Growth % | - | 81.07% | 50.84% | 46.57% | -19.55% | -80.39% | 31.98% | -69.04% | - |
| EBITDA | 509.3M | 83.4M | -72.4M | -224.9M | -503.1M | -428.6M | -222.1M | -360.9M | -222.9M |
| EBITDA Margin % | 4.04% | 1.2% | -1.29% | -4.6% | -8.36% | -6.68% | -5.97% | -15.13% | -25.2% |
| EBITDA Growth % | 1073.5% | 215.19% | 67.81% | 55.3% | -17.38% | -92.98% | 38.46% | -61.91% | - |
| D&A (Non-Cash Add-back) | 487.9M | 112.7M | 82.4M | 90M | 86.3M | 64.4M | 51.2M | 40.9M | 14.8M |
| EBIT | -157.4M | -50.8M | -148M | -306.4M | -586.6M | -492.9M | -271.3M | -388.9M | -229.3M |
| Net Interest Income | -109.9M | -3.5M | -6.4M | -10.8M | -3.6M | -2.4M | -600K | 12.9M | 0 |
| Interest Income | 11M | 5.5M | 0 | 0 | 0 | 0 | 0 | 12.9M | 0 |
| Interest Expense | 120.9M | 9M | 6.4M | 10.8M | 3.6M | 2.4M | 600K | 0 | 0 |
| Other Income/Expense | -294.7M | -30.5M | -200K | -5.6M | -13M | -3.6M | 1.4M | 12.9M | 8.4M |
| Pretax Income | -273.3M | -59.8M | -155M | -320.5M | -602.4M | -496.6M | -271.9M | -388.9M | -229.3M |
| Pretax Margin % | -2.17% | -0.86% | -2.75% | -6.56% | -10.01% | -7.73% | -7.31% | -16.3% | -25.92% |
| Income Tax | -407.8M | -1.1M | -500K | -400K | -900K | -2.5M | -1.7M | -900K | -5.5M |
| Effective Tax Rate % | 149.21% | 1.84% | 0.32% | 0.12% | 0.15% | 0.5% | 0.63% | 0.23% | 2.4% |
| Net Income | 133.4M | -58.5M | -154.4M | -321.3M | -601.5M | -494.1M | -270.2M | -388M | -223.8M |
| Net Margin % | 1.06% | -0.84% | -2.74% | -6.58% | -9.99% | -7.7% | -7.26% | -16.26% | -25.3% |
| Net Income Growth % | 336.52% | 62.11% | 51.95% | 46.58% | -21.74% | -82.86% | 30.36% | -73.37% | - |
| Net Income (Continuing) | 134.5M | -58.7M | -154.5M | -320.1M | -601.5M | -494.1M | -270.2M | -388M | -223.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 8M | 5.3M | 3M | 3.3M | 3.6M | 3.8M | 0 | 0 | 0 |
| EPS (Diluted) | 0.15 | -0.10 | -0.31 | -0.69 | -1.40 | -1.51 | -0.68 | -1.09 | -0.63 |
| EPS Growth % | 271.6% | 67.74% | 55.07% | 50.71% | 7.28% | -122.06% | 37.61% | -73.02% | - |
| EPS (Basic) | - | -0.10 | -0.31 | -0.69 | -1.40 | -1.51 | -0.69 | -1.09 | -0.63 |
| Diluted Shares Outstanding | 862.55M | 571.98M | 501.51M | 466.52M | 428.17M | 326.34M | 397.93M | 354.72M | 354.72M |
| Basic Shares Outstanding | 768.66M | 571.98M | 501.51M | 466.52M | 428.17M | 326.34M | 393.97M | 354.72M | 354.72M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying COMP stock.
For fiscal year 2025, Compass, Inc. (COMP) reported total revenue of $6.96B. This represents a 686.9% increase compared to $884.7M in 2018.
Compass, Inc. (COMP) reported a net loss of $58.5M for the fiscal year ending 2025.
Compass, Inc. (COMP) reported an operating income of $-29.3M, resulting in an operating profit margin of -0.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Compass, Inc. (COMP) generated $738.7M in gross profit for the year, representing a gross profit margin of 10.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue sustainability and margin volatility
Metrics are mathematically derived from official filings.
Revenue Growth Accelerates Sharply
Compass's revenue surged 109.1% year-over-year in 2026Q2 to $4.3B, according to the latest quarterly report, marking a significant acceleration from the 23.1% growth in 2025Q4.
The sequential jump from $2.7B in 2026Q1 to $4.3B in 2026Q2 suggests a strong seasonal or market-driven boost, possibly reflecting increased transaction volumes. However, the sustainability of this growth is uncertain, as it may be influenced by one-time factors or market conditions. Investors should monitor whether this pace can be maintained in subsequent quarters.
Gross Margin Volatility Raises Concerns
Gross margin swung from 25.7% in 2026Q1 to 2.9% in 2026Q2, as reported in financial statements, indicating significant instability in the cost structure relative to revenue.
The dramatic drop in gross margin in 2026Q2, despite a revenue surge, suggests that the company may be experiencing higher direct costs or a shift in revenue mix toward lower-margin services. This volatility is atypical and warrants further investigation into the underlying drivers. Compared to peers like Eagle Materials with 28.3% gross margin, Compass's margins are inconsistent, which may indicate pricing pressure or operational inefficiencies.
Operating Leverage Turns Positive
Operating income swung from a loss of $162M in 2026Q1 to a profit of $124M in 2026Q2, as per the income statement, demonstrating significant operating leverage as revenue scaled.
The transition to positive operating income in 2026Q2, despite the gross margin collapse, suggests that SG&A expenses did not scale proportionally with revenue. However, the low operating margin of 2.9% indicates that the company is still operating near breakeven. The ability to sustain this leverage will depend on cost discipline as revenue normalizes.
Earnings Quality Clouded by SBC
Stock-based compensation reached $149M in 2026Q2, exceeding net income of $92M, as disclosed in the financials, implying that reported earnings are significantly inflated by non-cash charges.
The high SBC relative to net income suggests that a substantial portion of reported profitability is not attributable to cash earnings. This may indicate that the company is using equity compensation heavily, which could dilute shareholders over time. Investors should adjust for SBC to assess true cash-generating ability.
SG&A Efficiency Improves but R&D Spikes
SG&A as a percentage of revenue fell to 4.7% in 2026Q2 from 13.2% in 2025Q1, based on reported figures, while R&D jumped to $119M in 2026Q1, indicating a shift in cost priorities.
The significant reduction in SG&A relative to revenue suggests improved cost discipline, possibly due to scale benefits. However, the spike in R&D in 2026Q1, which was not present in 2026Q2, may indicate variable investment in technology. The absence of R&D in 2026Q2 is notable and could be a data anomaly or a strategic shift.
2026Q2 Marks a Turning Point
The second quarter of 2026 represents a clear inflection, with revenue more than doubling year-over-year and operating income turning positive for the first time in recent quarters, as per the income statement.
This quarter's performance contrasts sharply with the losses in 2025Q3 and 2025Q4, suggesting that the company may have reached a scale where fixed costs are covered. However, the sustainability of this inflection is uncertain given the gross margin volatility. The lasting impact will depend on whether the company can maintain revenue growth while stabilizing margins.
What Could Invalidate the Base Case
Despite the revenue surge, gross margin collapsed to 2.9% in 2026Q2, and SBC exceeded net income, raising doubts about the quality of reported profitability, as per the income statement.
Short-sellers might argue that the revenue acceleration is not translating into sustainable profitability, given the extreme margin volatility and heavy reliance on stock-based compensation. The operating margin of 2.9% is razor-thin, leaving little room for error if revenue growth decelerates or costs rise. Investors should question whether the 2026Q2 results are a one-off or a sustainable trend, especially with peers like Douglas Elliman showing negative operating margins.