Compass (NYSE:COMP), a technology-driven real estate brokerage services provider, closed Wednesday’s session at $11.85, up 9.37%. Compass IPO'd in 2021 and has fallen 41% since going public. Trading volume reached 94.7 million shares, which is approximately 647% above its three-month average of 12.7 million shares. Wednesday’s action reflected investors reacting to Compass’s raised fourth-quarter guidance, its sizable convertible notes plan, and ongoing attention on the pending Anywhere merger. How the ma ...

NEW YORK and MADISON, N.J., Jan. 7, 2026 /PRNewswire/ -- Compass, Inc. (NYSE: COMP) ("Compass") and Anywhere Real Estate Inc. (NYSE: HOUS) ("Anywhere") announce that stockholders of each company voted overwhelmingly to approve and adopt, as applicable, all proposals related to the previously announced merger (the "Merger") of Compass and Anywhere at their respective special meetings of stockholders held today. The Merger is expected to close on January 9, 2026, subject to the satisfaction of customary closi ...

Key Points The real estate brokerage topped its own expectations in the fourth quarter. It also announced a $750 million convertible debt offering. 10 stocks we like better than Compass › Shares of Compass (NYSE: COMP) were pointing north today, moving higher after the company announced a $750 million convertible senior notes offering and gave a positive update on its guidance. As of 11:39 a.m. ET, the stock was up 13.9% on the news. Image source: Getty Images. What it means for Compass In a fi ...

Two of the nation's largest real estate brokerages are one step closer to combining. ...

Merger and Acquisition Details - Compass entered into a merger agreement with Anywhere on September 22, 2025, with the merger expected to close, making Anywhere a wholly owned subsidiary of Compass[1]. - The merger will be accounted for as a business combination under ASC 805, with the consideration allocated to Anywhere's assets and liabilities based on their estimated fair values[12]. - Each share of Anywhere common stock will be converted into 1.436 shares of Compass Class A common stock at the effective time of the merger[6]. - The merger is expected to enhance Compass' market position and operational capabilities through the integration of Anywhere's assets and resources[13]. - Compass is considering alternative financing arrangements, including a potential issuance of convertible notes, to finance the acquisition[15]. - The estimated fair value of consideration transferred to acquire Anywhere is $1,874.5 million, which includes $1,414.0 million in equity portion and $416.8 million for the repayment of certain Anywhere debt[56]. - Compass shares issued in the merger amounted to 160,866,206, based on an exchange ratio of 1.436[56]. - The company expects to incur restructuring costs of $40.0 million related to the merger[52]. - Goodwill recognized in the merger amounts to $2,463.2 million, reflecting the excess of the estimated merger consideration over the fair value of net assets acquired[60]. Financial Performance - Total revenue for the nine months ended September 30, 2025, reached $9,782 million, with Compass contributing $5,270 million and Anywhere contributing $4,512 million[20]. - Total operating expenses for the same period were $9,828.8 million, with commissions and related expenses accounting for $7,224.1 million[20]. - The net loss attributable to Compass, Inc. for the nine months ended September 30, 2025, was $191.5 million, resulting in a net loss per share of $0.27[20]. - Total revenue for the year ended December 31, 2024, was $11,835.3 million, with Compass contributing $6,143.3 million and Anywhere contributing $5,692.0 million[23]. - The net loss attributable to Compass, Inc. for the year was $428.5 million, translating to a net loss per share of $0.61[23]. - The net loss attributable to Compass, Inc. for the nine months ended September 30, 2025, was $17.9 million, with a net loss per share of $0.03[34]. - The net loss attributable to Anywhere Group for the year ended December 31, 2024, was $128.0 million, compared to a net loss of $64.0 million in the previous year[50]. Assets and Liabilities - Total current assets amounted to $1,210.1 million, with cash and cash equivalents at $324.8 million[18]. - Total liabilities were reported at $5,186.8 million, with current liabilities totaling $2,138.9 million[18]. - The company had total stockholders' equity of $2,301.8 million, with an accumulated deficit of $2,626.4 million[18]. - The total assets of the company as of September 30, 2025, were $7,488.6 million[18]. - Total liabilities were reported at $4,223.0 million, with long-term debt comprising $2,125.0 million[48]. - Stockholders' equity stood at $1,520.0 million, reflecting an accumulated deficit of $3,283.0 million[48]. Expenses and Costs - Research and development expenses for the nine months ended September 30, 2025, were $301.2 million[20]. - The company incurred restructuring costs of $50.2 million during the nine months ended September 30, 2025[20]. - Total operating expenses amounted to $12,278.3 million, with commissions and related expenses being the largest at $8,656.8 million[23]. - Research and development expenses totaled $198.4 million, indicating a focus on innovation and product development[38]. - The company reported a restructuring cost of $9.7 million as part of its operational adjustments[38]. - The total estimated one-time non-recurring transaction-related costs incurred prior to or concurrent with the merger are approximately $150.0 million[63]. Pro Forma Financial Information - The unaudited pro forma financial information assumes the bridge loan facility is outstanding for the entirety of the pro forma periods, reflecting its use to refinance existing indebtedness and cover transaction costs[15]. - Adjustments in the pro forma financial information include reclassifications to conform Anywhere's financial statements to Compass' presentation and non-recurring transaction costs related to the merger[15]. - The pro forma adjustments are preliminary and subject to change as additional information becomes available[5]. - The pro forma adjustment for incremental amortization expense related to the AWPH, LLC acquisition was $34.3 million for the year ended December 31, 2024[41]. - The pro forma interest expense assumes the bridge loan facility has an effective interest rate of 12.49% and will be outstanding for the entirety of the pro forma periods[71]. - The pro forma adjustment for post-combination incentive-based compensation expense is $(25.1) million for the nine months ended September 30, 2025, compared to historical expenses[69]. Financing and Debt - Compass has secured a debt financing commitment of up to $750 million in the form of a 364-day senior secured bridge loan facility to support the merger[9]. - The bridge loan facility proceeds amount to $750.0 million, with a pro forma adjustment of $324.8 million after accounting for debt issuance costs and repayment of Anywhere's revolving credit facility[66]. - Estimated interest expense on the $750.0 million bridge loan facility is projected to be $70.3 million for the nine months ended September 30, 2025[71]. - A $3.7 million loss on the early extinguishment of debt is reflected for the assumed repayment of Anywhere's revolving credit facility on January 1, 2024[70]. Tax and Valuation Adjustments - Compass partially decreased its valuation allowance by $224.2 million related to certain U.S. deferred tax assets due to the merger with Anywhere[30]. - The adjustment to deferred income taxes reflects a total decrease of $169.2 million, including a $59.0 million increase in deferred tax liabilities due to purchase accounting adjustments[64][65]. - A pro forma adjustment reflects a tax pro forma adjustment to reverse the Anywhere historical tax benefit, with a valuation allowance decrease of $224.2 million related to U.S. deferred tax assets for the year ended December 31, 2024[70].

Core Viewpoint - Compass, Inc. plans to offer $750 million in convertible senior notes due 2031, with an option for initial purchasers to buy an additional $112.5 million within 13 days of issuance [1][2] Group 1: Offering Details - The notes will be senior unsecured obligations guaranteed by the Company's subsidiaries that also guarantee its existing revolving credit facility [2] - The net proceeds from the offering will be used for general corporate purposes, including repayment of existing indebtedness of Anywhere Real Estate Inc. if the merger is completed, and funding capped call transactions [2] Group 2: Conversion and Capped Call Transactions - The Company will satisfy conversion elections by paying cash, delivering shares of Class A common stock, or a combination of both at its discretion [3] - Capped call transactions are expected to reduce potential dilution of Class A common stock upon conversion of the notes and offset cash payments exceeding the principal amount of converted notes [4] Group 3: Market Impact and Hedging Activities - Counterparties may purchase shares of Class A common stock or enter into derivative transactions around the pricing of the notes, which could influence the market price of the stock and notes [5] - These activities may affect the ability of noteholders to convert the notes and the number of shares received upon conversion [5] Group 4: Company Overview - Compass is a leading tech-enabled real estate services company and the largest residential real estate brokerage in the U.S. by sales volume [7] - The Company provides an integrated platform for real estate agents, including cloud-based software for various critical functionalities [8]

Core Insights - Christie's International Real Estate has solidified its position as a leader in luxury real estate, expanding its global network and achieving significant sales in 2025, setting the stage for continued success in 2026 [1][2][8] Expanded Global Reach - The company welcomed new affiliates in key luxury real estate markets, including locations in Uruguay, Mexico, Hong Kong, Saudi Arabia, New Zealand, and several U.S. cities such as Jacksonville and Portland, enhancing its global footprint [3] Led in Luxury Residential Sales - Christie's affiliates achieved record-breaking sales in 2025, with notable transactions including: - Le Renzo Apartment, Monaco for approximately $76.5 million - Woody Creek Ranch, Aspen, Colorado for $58 million - 1140 S. Ocean Blvd., Manalapan, Florida for $55 million - 942 N. Alpine Dr., Beverly Hills, California for $51.75 million - Villa Mukul, Nicaragua for $11.5 million - Highest sales in the Chicago metro area at $34.5 million and $31.25 million [4][5] Welcomed Market-Leading Agents - The network attracted several high-performing agents and teams with career sales exceeding $1 billion, further enhancing its market presence and expertise [4][6] Partnership Fueled High-Value Referrals - Clients of Christie's International Real Estate gained access to auction house services, resulting in 250 referrals of high-value items, including fine art, and significant real estate referrals from the auction house to the brokerage affiliates [7] Strategic Focus for 2026 - The company aims for continued strategic expansion and is committed to enhancing its brand and the quality of its affiliates, reflecting strong momentum and growth in 2025 [8]

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We came across a bullish thesis on Compass, Inc. on Valueinvestorsclub.com by TooCheapToIgnore. In this article, we will summarize the bulls’ thesis on COMP. Compass, Inc.'s share was trading at $10.53 as of December 17th. COMP’s forward P/E was 25.91 according to Yahoo Finance. Two people carrying cardboard boxes Compass, Inc. (COMP) is a tech-enabled real estate services company that has become the largest brokerage in the U.S., now complemented by ancillary services such as title, escrow, and mortgage ...

Core Thesis - Compass, Inc. is positioned as a leading tech-enabled real estate services company in the U.S. with a recent acquisition of Anywhere (HOUS) enhancing its market position and operational capabilities [2][4]. Company Overview - Compass, Inc. operates as the largest brokerage in the U.S., offering a technology-driven platform complemented by services such as title, escrow, and mortgage [2]. - The acquisition of Anywhere (HOUS) allows Compass to combine its technology with HOUS's extensive agent network and brand recognition, creating a significant industry leader [2]. Market Position and Financials - The combined entity will operate approximately 340,000 agents globally, capturing around 18% market share and generating approximately $12.7 billion in revenue with $816 million EBITDA, including synergies [3]. - Compass's platform advantages include high agent retention, exclusive listings, and proprietary tools, which contribute to faster transaction times and improved pricing [3]. Investment Case - The investment thesis is built on three pillars: thematic exposure to the housing market, platform advantages justifying a premium multiple, and strategic cost efficiencies and revenue synergies from the HOUS acquisition [4]. - The HOUS deal is expected to create cost efficiencies and revenue synergies conservatively estimated at $225 million, with manageable pro forma leverage expected to decline toward 1.5x EBITDA as free cash flow reduces debt [4]. Growth Potential - The combination of cyclical tailwinds, long-term platform leadership, and immediate deal synergies presents significant upside potential with limited downside risk [5]. - Even without a housing market rebound, organic growth, operational improvements, and synergies from HOUS support a compelling valuation [5]. Key Catalysts - Important catalysts for value realization include quarterly earnings, updates on HOUS integration, developments in the housing market, and potential policy actions affecting mortgage rates [5].