[Q2 2025 Performance Overview](index=1&type=section&id=1.%20Q2%202025%20Performance%20Overview) Compass achieved record Q2 2025 results with ten all-time highs, outperforming the market in transaction growth and agent retention, demonstrating strong financial and operational performance [Executive Summary](index=1&type=section&id=1.1.%20Executive%20Summary) Compass, Inc. reported record second-quarter 2025 results, achieving ten all-time highs including market share, revenue, GAAP Net Income, and Adjusted EBITDA. The company significantly outperformed the market in transaction growth and agent retention, demonstrating a strong value proposition and positioning for future growth as the market normalizes - Compass achieved its best quarterly results in history, marked by **ten all-time highs**, including market share, Revenue, GAAP Net Income, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, T&E revenue, T&E attach, and weekly agent sessions on the platform[1](index=1&type=chunk) - The company added a record **832 principal agents organically** in Q2, the highest quarter for principal agent adds in its history, coupled with a **97.5% quarterly principal agent retention rate**[1](index=1&type=chunk) - Compass outperformed the market for **17 consecutive quarters**, with organic transactions growing by **6.3%** and total transactions by **20.9%** year-over-year, compared to a **0.9% decline in market transactions**[1](index=1&type=chunk) [Financial Highlights](index=1&type=section&id=1.2.%20Financial%20Highlights) In Q2 2025, Compass achieved substantial financial growth, with revenue increasing by 21.1% and GAAP Net Income surging by 90.3% year-over-year. The company also generated record positive operating and free cash flows, indicating strong financial health and operational efficiency Q2 2025 Key Financial Metrics (YoY Growth) | Metric | Q2 2025 Value | YoY Growth | Source Chunk | | :----------------------- | :-------------- | :--------- | :----------- | | Revenue | $2.06 billion | 21.1% | 5 | | GAAP Net Income | $39.4 million | 90.3% | 5 | | Adjusted EBITDA | $125.9 million | 63% | 5 | | Operating Cash Flow | $72.8 million | N/A | 5 | | Free Cash Flow | $68.0 million | N/A | 5 | - The Christie's International Real Estate acquisition contributed **10.4% of the revenue growth** in Q2 2025, with organic revenue growth up **8.7% year-over-year**[5](index=5&type=chunk) - GAAP Net Income for Q2 2025 included non-cash stock-based compensation expense of **$55.2 million** and depreciation and amortization of **$29.4 million**[5](index=5&type=chunk) [Operational Highlights](index=2&type=section&id=1.3.%20Operational%20Highlights) Compass demonstrated significant operational strength in Q2 2025, achieving record market share and substantial growth in principal agents and transactions. The company's proprietary technology platform also saw increased engagement and successful new product rollouts, enhancing agent productivity and client services Q2 2025 Key Operational Metrics (YoY Growth) | Metric | Q2 2025 Value | YoY Growth | Source Chunk | | :-------------------------- | :-------------- | :--------- | :----------- | | Quarterly Market Share | 6.09% | +96 bps | 9 | | Organic Market Share Growth | N/A | +40 bps | 9 | | Principal Agents | 20,965 | 23.3% | 9 | | Total Transactions | 73,025 | 20.9% | 9 | | Organic Transactions | N/A | 6.3% | 9 | | Gross Transaction Value (GTV) | $78.3 billion | 20.3% | 9 | | Organic GTV | $69.3 billion | N/A | 9 | - The Compass end-to-end proprietary technology platform reached an all-time high of **24 average weekly sessions per agent** in Q2, up **37% year-over-year**[9](index=9&type=chunk) - Key product highlights include: Compass Make-Me-Sell (**16,770 entries**), Compass One-Click Title & Escrow (**2x higher attach rate for users**), Compass One (used with **116,000 clients**), and Compass Reverse Prospecting (**115% growth in transactions** using it quarter-over-quarter)[9](index=9&type=chunk) [Business Outlook](index=2&type=section&id=2.%20Business%20Outlook) Compass provided a positive outlook for Q3 and full year 2025, projecting revenue and Adjusted EBITDA ranges, and reiterating its commitment to free cash flow positivity [Q3 2025 Outlook](index=2&type=section&id=2.1.%20Q3%202025%20Outlook) Compass provided a positive outlook for Q3 2025, projecting revenue between $1.725 billion and $1.850 billion, and Adjusted EBITDA in the range of $60 million to $80 million Q3 2025 Outlook | Metric | Q3 2025 Outlook | | :------------- | :-------------- | | Revenue | $1.725B - $1.850B | | Adjusted EBITDA | $60M - $80M | [Full Year 2025 Outlook](index=2&type=section&id=2.2.%20Full%20Year%202025%20Outlook) For the full year 2025, Compass updated its Non-GAAP OPEX guidance, reflecting a reduction from the prior range, and reiterated its expectation to be free cash flow positive Full Year 2025 Outlook | Metric | Full Year 2025 Outlook | | :---------------- | :--------------------- | | Non-GAAP OPEX | $1.010B - $1.020B | - The updated Non-GAAP OPEX range reflects a reduction from the prior range of **$1.017 billion to $1.042 billion**, including **$10 million from 2024 M&A**, **$105 million from the Christie's International Real Estate acquisition**, and **$12 million from other acquisitions**[8](index=8&type=chunk)[10](index=10&type=chunk) - Compass expects to be **free cash flow positive** for the full year 2025[10](index=10&type=chunk) [Company Information & Disclosures](index=3&type=section&id=3.%20Company%20Information%20%26%20Disclosures) This section details the Q2 2025 conference call, outlines the company's disclosure practices, provides a safe harbor statement for forward-looking information, defines non-GAAP financial measures, and offers a brief company overview and contact information [Conference Call & Disclosure](index=3&type=section&id=3.1.%20Conference%20Call%20%26%20Disclosure) Compass held a conference call on July 30, 2025, to discuss its Q2 2025 results and outlook, with access provided via its Investor Relations website. The company utilizes various channels, including its IR website, SEC filings, press releases, and social media, to disclose material information to investors - A conference call was held on Wednesday, **July 30, 2025, at 5:00 p.m. ET** to discuss Q2 2025 results and outlook, accessible via the Compass Investor Relations website[12](index=12&type=chunk) - Compass uses its Investor Relations website (https://investors.compass.com) as a primary channel for disclosing material information, in addition to SEC filings, press releases, public conference calls, webcasts, and various social media platforms[14](index=14&type=chunk) [Safe Harbor Statement](index=3&type=section&id=3.2.%20Safe%20Harbor%20Statement) The press release includes forward-looking statements based on estimates and assumptions, which are subject to various risks and uncertainties. These risks include general economic conditions, real estate industry health, interest rates, litigation, and the company's ability to innovate, compete, and integrate acquisitions, among others. Actual results may differ materially from these statements - Forward-looking statements in the press release, including future performance and financial results, are based on estimates and assumptions and are subject to risks and uncertainties[15](index=15&type=chunk) - Key risks include general economic conditions, the health of the U.S. real estate industry, high mortgage interest rates, ongoing antitrust litigation, decreases in commission income, low home inventory levels, and the ability to attract and retain agents[15](index=15&type=chunk) - Investors are advised to review 'Risk Factors' in the company's Form 10-K and 10-Q reports for more information on factors that could adversely affect the business[17](index=17&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=3.3.%20Non-GAAP%20Financial%20Measures) Compass presents non-GAAP financial measures such as Adjusted EBITDA, non-GAAP OPEX, free cash flow, and organic revenue growth to supplement GAAP statements. These measures are used for performance assessment, budgeting, and communication, providing a more consistent overview of operations, but should not be considered in isolation from GAAP results - Non-GAAP measures presented include Adjusted EBITDA, non-GAAP OPEX, free cash flow, and organic revenue growth, used for performance assessment, budgeting, and investor communication[18](index=18&type=chunk) - These non-GAAP measures have limitations as analytical tools and should be considered alongside GAAP measures like net income (loss), GAAP OPEX, operating cash flows, and revenue[18](index=18&type=chunk) - Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are provided in the financial statement tables within the press release[19](index=19&type=chunk) [About Compass](index=5&type=section&id=3.4.%20About%20Compass) Compass, founded in 2012, is a leading tech-enabled real estate services company and the largest residential real estate brokerage in the U.S. by sales volume. It provides an integrated, cloud-based platform to empower agents and includes Christie's International Real Estate, a global luxury brand - Compass is a leading tech-enabled real estate services company and the **largest residential real estate brokerage in the United States by sales volume**[20](index=20&type=chunk) - The company provides an end-to-end proprietary platform with integrated cloud-based software for CRM, marketing, client service, and brokerage functions, custom-built for the real estate industry[20](index=20&type=chunk) - The Compass network includes Christie's International Real Estate, a premier global luxury real estate brand with over **100 independently owned brokerage Affiliates in 50 countries and territories**[20](index=20&type=chunk) [Investor & Media Contacts](index=5&type=section&id=3.5.%20Investor%20%26%20Media%20Contacts) Contact information for investor relations and media inquiries is provided for Soham Bhonsle and Rory Golod, respectively - Investor Contact: Soham Bhonsle (soham.bhonsle@compass.com)[21](index=21&type=chunk) - Media Contact: Rory Golod (rory@compass.com)[21](index=21&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=4.%20Condensed%20Consolidated%20Financial%20Statements) This section presents the company's financial position, operational performance, and cash flow activities through condensed consolidated balance sheets, statements of operations, and statements of cash flows [Condensed Consolidated Balance Sheets](index=6&type=section&id=4.1.%20Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows an increase in total assets from $1,178.0 million at December 31, 2024, to $1,596.1 million at June 30, 2025, primarily driven by increases in intangible assets and goodwill. Total liabilities also increased, with a notable rise in commissions payable and the revolving credit facility Condensed Consolidated Balance Sheets (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | $177.3 | $223.8 | | Accounts receivable, net | $96.9 | $48.6 | | Intangible assets, net | $221.1 | $73.8 | | Goodwill | $474.2 | $233.6 | | Total assets | $1,596.1 | $1,178.0 | | **Liabilities** | | | | Commissions payable | $154.3 | $82.8 | | Revolving credit facility | $50.0 | — | | Total liabilities | $870.7 | $765.6 | | **Stockholders' Equity** | | | | Total stockholders' equity | $725.4 | $412.4 | [Condensed Consolidated Statements of Operations](index=7&type=section&id=4.2.%20Condensed%20Consolidated%20Statements%20of%20Operations) For the three months ended June 30, 2025, Compass reported significant revenue growth and a positive net income attributable to Compass, Inc., a substantial improvement from the prior year. Operating expenses also increased, particularly commissions and other related expenses Condensed Consolidated Statements of Operations (in millions, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $2,059.6 | $1,700.6 | $3,415.8 | $2,754.7 | | Commissions and other related expense | $1,685.7 | $1,405.3 | $2,791.8 | $2,267.6 | | Total operating expenses | $2,020.2 | $1,679.3 | $3,430.1 | $2,865.5 | | Income (loss) from operations | $39.4 | $21.3 | $(14.3) | $(110.8) | | Net income (loss) attributable to Compass, Inc. | $39.4 | $20.7 | $(11.3) | $(112.2) | | Net income (loss) per share, basic | $0.07 | $0.04 | $(0.02) | $(0.23) | | Total stock-based compensation expense | $55.2 | $30.9 | $85.6 | $63.8 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=4.3.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities increased significantly compared to the prior year, while investing activities resulted in a substantial net cash outflow due to payments for acquisitions. Financing activities provided net cash, primarily from drawdowns on the revolving credit facility Condensed Consolidated Statements of Cash Flows (in millions) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $95.9 | $53.6 | | Net cash used in investing activities | $(181.9) | $(26.5) | | Net cash provided by (used in) financing activities | $39.5 | $(8.2) | | Net (decrease) increase in cash and cash equivalents | $(46.5) | $18.9 | | Cash and cash equivalents at end of period | $177.3 | $185.8 | - Payments for acquisitions, net of cash acquired, totaled **$172.0 million** for the six months ended June 30, 2025, significantly impacting investing activities[27](index=27&type=chunk) - Financing activities included **$70.0 million in proceeds** from drawdowns on the Revolving credit facility and **$20.0 million in repayments**[27](index=27&type=chunk) [Non-GAAP Reconciliations](index=9&type=section&id=5.%20Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, and Non-GAAP Operating Expenses, to their most directly comparable GAAP counterparts [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=9&type=section&id=5.1.%20Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) Adjusted EBITDA for Q2 2025 significantly increased to $125.9 million, up from $77.4 million in Q2 2024. This reconciliation adjusts GAAP net income by adding back non-cash expenses like depreciation, amortization, stock-based compensation, and other non-operating items Reconciliation of Net Income (Loss) to Adjusted EBITDA (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) attributable to Compass, Inc. | $39.4 | $20.7 | $(11.3) | $(112.2) | | Depreciation and amortization | $29.4 | $21.4 | $58.2 | $42.2 | | Stock-based compensation | $55.2 | $30.9 | $85.6 | $63.8 | | Restructuring costs | $2.7 | $4.3 | $11.9 | $5.8 | | Adjusted EBITDA | $125.9 | $77.4 | $141.5 | $57.3 | - Acquisition-related expenses for Q2 2025 included a **$2.7 million gain** related to changes in the fair value of contingent consideration[28](index=28&type=chunk) - The six months ended June 30, 2024, included a **$57.5 million litigation charge** related to Antitrust Lawsuits[28](index=28&type=chunk) [Reconciliation of Operating Cash Flows to Free Cash Flow](index=10&type=section&id=5.2.%20Reconciliation%20of%20Operating%20Cash%20Flows%20to%20Free%20Cash%20Flow) Free cash flow for Q2 2025 was $68.0 million, an increase from $40.4 million in Q2 2024. This is calculated by subtracting capital expenditures from net cash provided by operating activities Reconciliation of Operating Cash Flows to Free Cash Flow (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | $72.8 | $45.0 | $95.9 | $53.6 | | Less: Capital expenditures | $(4.8) | $(4.6) | $(8.4) | $(7.3) | | Free cash flow | $68.0 | $40.4 | $87.5 | $46.3 | [Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses](index=11&type=section&id=5.3.%20Reconciliation%20of%20GAAP%20Operating%20Expenses%20to%20Non-GAAP%20Operating%20Expenses) This reconciliation adjusts GAAP operating expenses by excluding stock-based compensation and certain acquisition-related expenses or litigation charges to arrive at non-GAAP operating expenses. Non-GAAP figures show the underlying operational costs more clearly Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | **Sales and marketing** | | | | | | GAAP Sales and marketing | $96.4 | $94.9 | $188.1 | $188.3 | | Non-GAAP Sales and marketing | $87.6 | $86.6 | $172.5 | $172.1 | | **Operations and support** | | | | | | GAAP Operations and support | $109.3 | $83.1 | $206.0 | $162.1 | | Non-GAAP Operations and support | $102.3 | $78.7 | $194.3 | $154.0 | | **Research and development** | | | | | | GAAP Research and development | $63.4 | $47.4 | $113.3 | $94.4 | | Non-GAAP Research and development | $38.0 | $32.2 | $75.0 | $64.3 | | **General and administrative** | | | | | | GAAP General and administrative | $33.3 | $22.9 | $60.8 | $105.1 | | Non-GAAP General and administrative | $22.0 | $19.9 | $43.5 | $38.2 | - Stock-based compensation is a significant adjustment across all operating expense categories, totaling **$55.2 million** for Q2 2025[32](index=32&type=chunk) - Acquisition-related expenses of **$2.7 million** were excluded from GAAP Operations and support for Q2 2025[32](index=32&type=chunk) [Non-GAAP Operating Expenses Excluding Commissions and Other Related Expense](index=12&type=section&id=5.4.%20Non-GAAP%20Operating%20Expenses%20Excluding%20Commissions%20and%20Other%20Related%20Expense) This table provides a quarterly breakdown of non-GAAP operating expenses, excluding commissions and other related expenses, showing a trend of increasing operational costs from Q1 2024 to Q2 2025 Non-GAAP Operating Expenses Excluding Commissions and Other Related Expense (in millions) | Metric | March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | | :-------------------------- | :------------- | :------------ | :----------------- | :---------------- | :------------- | :------------ | | Sales and marketing | $85.5 | $86.6 | $80.4 | $84.7 | $84.9 | $87.6 | | Operations and support | $75.3 | $78.7 | $80.2 | $79.6 | $92.0 | $102.3 | | Research and development | $32.1 | $32.2 | $32.9 | $33.6 | $37.0 | $38.0 | | General and administrative | $18.3 | $19.9 | $21.5 | $26.5 | $21.5 | $22.0 | | Total non-GAAP operating expenses excluding commissions and other related expense | $211.2 | $217.4 | $215.0 | $224.4 | $235.4 | $249.9 |

Core Insights - Ultra-high-net-worth individuals are increasingly investing in luxury real estate as a stable asset amidst global economic and geopolitical uncertainties [1][2] - The luxury real estate market is characterized by a demand for unique lifestyles, rare designs, and high-end amenities [2] Market Trends - The luxury real estate market remains strong at the top tier, even in areas where overall market activity has slowed [2] - Notable transactions in the first half of 2025 indicate a robust demand for ultra-prime properties globally [2] Significant Transactions - **Le Renzo, Monaco**: Sold for approximately $76.5 million, reflecting record prices in Monaco's luxury market, driven by the new Mareterra district [3] - **Woody Creek Ranch, Aspen, Colorado**: Sold for $58 million, marking Aspen's highest transaction of the year, highlighting demand for privacy and location [4] - **1140 South Ocean Boulevard, Manalapan, Florida**: Sold for $55.5 million, showcasing a shift in Manalapan's market towards ultra-luxury real estate [5] - **942 North Alpine Drive, Beverly Hills, California**: Sold for $51.75 million, indicating strong demand for high-end properties in Beverly Hills [6][7] - **Les Castelets, St. Barthélemy**: Sold for approximately $37.7 million, emphasizing the value of well-located land with approved building permits [8] - **Melanie Lane, Atherton, California**: Sold for $32.1 million, demonstrating resilience in the ultra-luxury segment despite market volatility [9] - **Princess Louisa Lodge, British Columbia**: Sold for approximately $22.9 million, offering a unique opportunity for a self-sustaining estate [10] - **Porsche Design Tower, Bangkok, Thailand**: Sold for approximately $19 million, setting a new benchmark in Bangkok's luxury residential market [11][12] - **110 Sheep Meadow Lane, Ketchum, Idaho**: Sold for $18.5 million, reflecting the ongoing popularity of the Sun Valley market among affluent buyers [13] - **960 17th Avenue South, Naples, Florida**: Sold for $18 million, highlighting the appeal of Southwest Florida's luxury market [14] Company Overview - Christie's International Real Estate has been a leader in marketing high-value real estate globally for over 30 years, operating through an invitation-only affiliate network [15]

Joining us to talk more about the housing market in particular and potential impact of Amam Dani administration on New York is Robert Refkin Compass co-founder and CEO. He joins us here at Post9. What are you hearing from people.I've seen more pause for this event uh in terms of buying a home than any event in my 13 years in New York City real estate. And so buyers saying they have a contract out, but they want a pause. They're talking to their lawyers.They say, you know, I I want to wait to see how this pl ...

Core Insights - atai Life Sciences is making significant progress in clinical development, with multiple trial readouts expected in 2025, particularly for BPL-003 and EMP-01 [1][2][5] Group 1: Clinical Trials and Results - The Phase 2a trial of BPL-003 has shown positive topline data, indicating good safety, tolerability, and robust efficacy, which is crucial as the company prepares for Phase 3 [2][3] - A large Phase 2b trial for BPL-003 is ongoing, with results anticipated in mid-2025, which will influence the timeline for the Phase 3 trial [3][4][5] - Other key trials include RL-007 for cognitive impairment in schizophrenia and the VLS-01 Illumina study, both expected to report results in 2025 [5][6] Group 2: New Indications and Exploratory Studies - The company has initiated a Phase 2a study of EMP-01 targeting social anxiety disorder, a condition with significant unmet medical needs [6][7][10] - The EMP-01 trial is a six-week study with two administrations, utilizing the Liebowitz Social Anxiety Scale as a regulatory endpoint [9][10] Group 3: Future Milestones and Industry Context - Investors should focus on the upcoming readouts and milestones throughout 2025, including interim results from Compass, in which atai Life Sciences holds shares [12][13] - The overall landscape for psychedelic compounds in treating mental health disorders is evolving, with atai Life Sciences positioned to contribute significantly through its innovative trials [10][12]

Industry Overview - The real estate industry is currently facing unprecedented challenges following a surge in demand during the pandemic, as individuals sought more space away from urban areas [1]. Analyst Background - Gary Alexander has extensive experience in covering technology companies on Wall Street and has worked in Silicon Valley, providing insights into themes shaping the real estate industry today [1]. - He has been a contributor to Seeking Alpha since 2017 and has been quoted in various web publications, with his articles being syndicated to popular trading apps like Robinhood [1].

Fathom Holdings (FTHM) Conference Call Summary Company Overview - Fathom is a real estate technology company providing a comprehensive solution for residential and commercial real estate, including brokerage, mortgage, title, and SaaS offerings [3][4] - The company operates in 43 states with plans to expand to five additional states in 2024 [4] Financial Performance - Q1 revenue grew by 32%, transactions increased by 26%, and agent growth was 22.8% [4][31] - Significant investment of approximately $20 million in proprietary software [4][22] - The acquisition of My Home Group in November 2024 added 2,200 agents and $100 million in revenue, expected to contribute $1.2 million in EBITDA in 2025 [4][28][29] Unique Business Model - Fathom's model differs from traditional brokerages by allowing agents to retain a larger portion of their commissions, charging a flat annual fee of $700 plus a transaction fee [11][12] - The company offers a concierge-level service and a virtual business model, which enhances agent support and efficiency [7][10] Technology and Efficiency - Fathom owns all its technology, which includes an ERP-like system for managing transactions and agent operations [18][19] - The direct cost per transaction is less than $270, significantly lower than competitors [19][26] - The Elevate program, launched recently, aims to provide agents with comprehensive support, potentially increasing gross profit per transaction by four times [14][15][26] Growth Strategy - Fathom aims to reach approximately 100,000 agents in the U.S., currently having around 15,000 [27] - The company anticipates organic growth to return to 15% and total growth (including acquisitions) to reach close to 30% [50][61] - The Elevate program is expected to generate approximately $1 million in EBITDA for every 100-120 agents [15][73] Ancillary Services - The mortgage business grew by 15% year-over-year, while the title business grew by 61% in Q1 [25][74] - Fathom aims for 50% of its ancillary business to come from non-Fathom agents, currently at over 60% [75] Market Position and Competition - Fathom is the tenth largest real estate company in the U.S. in a highly fragmented market with around 80,000 brokerages [9][60] - The company is not focused on competing directly with large mortgage companies like Rocket Mortgage, as it operates differently and relies on Fathom agents for business [54][55] Future Outlook - The company expects to achieve adjusted EBITDA positivity in Q2 2025, driven by cost reductions and growth in ancillary services [57][58] - Fathom plans to continue expanding its footprint and exploring acquisition opportunities in the fragmented real estate market [33][61] Management and Governance - The leadership team has extensive experience in real estate and technology, with a strong board of directors supporting growth initiatives [34][36] Additional Insights - Fathom divested from its insurance business to focus on higher growth opportunities, achieving a 32% growth rate in its core business [78] - The company has implemented AI solutions to enhance efficiency and reduce costs across various operations [51][52]

Core Insights - The Christie's International Real Estate 2025 Summit emphasized optimizing business and leveraging relationships as key themes [1] - The event gathered broker-owners and agents from 34 countries to network and celebrate successes [2] - The conference highlighted the luxury real estate network's expansion into nearly two dozen new markets in 2024 [3] Company Developments - Christie's International Real Estate co-CEOs discussed the network's accomplishments and future plans, including a partnership with Compass following its acquisition [3][4] - The partnership aims to enhance technology, marketing, and international referral opportunities while maintaining brand distinction [4] Awards and Recognition - Christie's International Real Estate Dubai and Park City received the 2025 Affiliate of the Year award for exceptional growth and innovation [7] - The Gavel of Greatness awards recognized affiliates and agents for excellence in various categories, including marketing and community leadership [8][9] Notable Speakers - The conference featured speakers from diverse backgrounds, including former Delta Airlines Chief People Officer and a renowned portrait photographer [5] Brand Positioning - Christie's International Real Estate operates as a distinct luxury brand under Compass, which is the largest residential real estate brokerage in the U.S. by sales volume [10]

Summary of Compass (COMP) FY Conference Call - May 14, 2025 Company Overview - Compass is the largest independent real estate brokerage firm in the U.S. by sold volume for four consecutive years, focusing on empowering agents with technology and a strong culture [3][4] - The company has a market share of 6% and operates with 37,000 agents, having invested $1.7 billion in its technology platform over the last twelve years [6] Financial Performance - Record first quarter results were reported, including record EBITDA and free cash flow [7] - Market share increased to the highest levels, with organic transaction growth of 7% while the overall market declined by 2%, resulting in a 9% faster growth rate [7] - Inorganic growth, including M&A, resulted in a 28% year-over-year increase, significantly outperforming the market [8] Growth Strategy - The company aims to grow through: 1. **Market Recovery**: Current existing home sales are at a low of 4 million, with potential growth to mid-cycle levels of 5.4 to 5.6 million homes, representing a 35% increase [11][12] 2. **Agent Recruitment**: 700 principal agents were hired in the last quarter, producing 2.5 times more than those who left [13] 3. **Accretive M&A**: Targeting four to six times EBITDA multiples, with recent acquisitions of top market companies [14] Agent Retention and Value Proposition - Compass achieved a 97% agent retention rate, significantly higher than the industry average of 70% [15] - The platform is the primary reason agents are attracted to Compass, providing tools that save time and lower operating costs [16][19] - The platform includes comprehensive features for both buy-side and sell-side workflows, enhancing agent efficiency [17][19] Marketing Strategy - The newly launched three-phase marketing strategy has seen nearly 50% of listings utilize it within two months of its introduction [30] - This strategy allows sellers to test aspirational prices privately before going public, reducing the risk of price drops [31][32] Industry Dynamics - The Clear Cooperation Policy (CCP) allows for private listings, which Compass leverages to create more private exclusives [35][41] - The company believes that offering more choices to sellers aligns with their interests and enhances agent performance [44][45] Market Outlook - Recent increases in purchase mortgage applications (up 13% and 19% year-over-year) indicate a potential recovery in the housing market [56] - The company anticipates a positive trend in home sales for May and June, contingent on macroeconomic stability [58] Earnings Power and Cost Discipline - In a recovering market, Compass expects significant revenue growth, with operational expenses maintained at a 3% to 4% organic increase [59][66] - The company emphasizes cost discipline as a permanent strategy, having reduced transaction service costs by 50% over two years [66] Conclusion - Compass is positioned to capitalize on market recovery through strategic growth initiatives, a strong technology platform, and a focus on agent success, while maintaining cost discipline and enhancing its market share through M&A activities [62][66]

Core Viewpoint - Affirm Holdings, Inc. has formed a new partnership with World Market, leading to a significant increase in its stock price by 15.8% following the announcement, reflecting positive market sentiment towards the company's growth prospects in the flexible payment solutions sector [1][3]. Group 1: Partnership Impact - The partnership allows customers to use Affirm's buy now, pay later (BNPL) options for purchases at 246 U.S. locations and online, enabling payment splits into biweekly or monthly installments with terms up to 36 months and no hidden fees [2]. - This collaboration expands Affirm's merchant network, which already includes over 358,000 merchants, and enhances its presence in the home goods and specialty retail sectors [2][5]. - The deal is expected to support Affirm's revenue growth by increasing transaction volume and merchant fees collected through World Market sales, with total transactions rising 45.6% year over year to 31.3 million in the fiscal third quarter [4]. Group 2: Financial Performance - Affirm reported a 36% year-over-year revenue growth in the third quarter of fiscal 2025, indicating strong performance and alignment with its strategy for sustainable long-term expansion [5]. - Despite a year-to-date decline of 11.8% in share price, the recent partnership announcement has helped the company recover some losses incurred after a less-than-expected fourth-quarter revenue guidance [6]. Group 3: Market Positioning - The partnership reflects a growing retailer demand for transparent and flexible financing options, reinforcing Affirm's brand and competitive edge in the market [3]. - Zacks has set a price target of $55 for Affirm's stock following the partnership announcement, indicating positive expectations for the company's future performance [3].

Investment Ratings - The overall industry view is rated as Attractive [4] - Specific company ratings include Equal-Weight (EW) for Compass, Inc. (COMP), DoubleVerify Holdings Inc (DV), Playtika Holding Corp (PLTK), FIGS, and Peloton Interactive, Inc. (PTON) [6][9][10][11][12] - Underweight (UW) rating for Yelp Inc (YELP) [11] Core Insights - Compass, Inc. (COMP) reported lower-than-expected results in 1Q, with revenue and EBITDA 4% and 15% below estimates, but management remains optimistic about future growth [2] - DoubleVerify Holdings Inc (DV) showed encouraging signs of stabilization with 1Q revenue 7% above estimates, driven by strong growth in Activation [6] - Playtika Holding Corp (PLTK) posted solid 1Q results, with revenue and EBITDA exceeding estimates, but faces challenges in its social casino segment [9] - FIGS delivered strong 1Q results, but lowered its FY25 EBITDA margin guidance due to tariff impacts [7][8] - Yelp Inc (YELP) exceeded expectations in 1Q, but faces uncertainty in long-term growth due to macroeconomic pressures [11][12] Company Summaries Compass, Inc. (COMP) - 1Q results were below expectations, but management added 700 new agents and expects positive free cash flow by year-end [2][5] - Revenue guidance for 2Q is 5% and 2% ahead of estimates, indicating potential recovery [5][69] DoubleVerify Holdings Inc (DV) - 1Q revenue growth was driven by a 20% increase in Activation, with profitability exceeding estimates [6] - The company maintains a FY revenue growth guide of 10% despite solid 1Q results [6] Playtika Holding Corp (PLTK) - 1Q revenue and EBITDA were 12% and 6% above estimates, but social casino challenges persist [9] - The company is optimistic about improving margins and increasing direct-to-consumer revenue [9] FIGS, Inc. (FIGS) - Strong 1Q results with revenue and EBITDA above consensus, but lowered FY25 EBITDA margin guidance due to tariffs [7][8] - Management is focused on long-term growth despite near-term challenges [8] Yelp Inc (YELP) - 1Q results exceeded expectations, driven by strength in Services advertising [11] - The company has widened its revenue and EBITDA guidance for FY25, reflecting ongoing macro uncertainty [12]