COMP

This article first appeared on GuruFocus. Net Income: Negative net income of BRL320 million in Q2 2026, a significant improvement compared to the same period of the previous year. Expanded Net Debt: Reduced to BRL9.2 billion, 20% below Q1 2026. Expanded Gross Debt: BRL16.5 billion at the end of Q2 2026, a reduction of approximately BRL9 billion compared to Q4 2025 and BRL2.7 billion versus the prior quarter. Debt Service Coverage Ratio: Temporarily ended the quarter at 0.2 times on an LTM basis, with a projection of 0.8 times to 1.2 times by year-end 2026. General and Administrative Expenses: Decreased by approximately 36%, representing savings of BRL49 million in the first six months of 2026 compared to the same period of 2025. Dividends and Interest on Capital: Received BRL399 million from investees in the quarter, essentially composed of Compass. Rumo EBITDA: Reached BRL2.3 billion, broadly stable compared to Q2 2025; excluding insurance indemnities and reclassification impacts, EBITDA would have grown by 4%. Rumo Transport Volume: BRL23.8 billion RTK in the period, a 9% increase compared to Q2 2025. Compass EBITDA: Increased by 5% year over year, driven by higher margins in residential and commercial segments and load optimization initiatives. Moove EBITDA: More than doubled compared to Q1 2026 amid the supply crisis; 6% lower versus the same period last year due to nonrecurring comparison base. Debt Average Term: 6.2 years at the end of the period, with an average cost of CDI plus 1.15% per year. Warning! GuruFocus has detected 3 Warning Signs with CSAN. Is CSAN fairly valued? Test your thesis with our free DCF calculator. Release Date: August 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Cosan SA (NYSE:CSAN) successfully completed Compass' IPO, generating BRL2.3 billion in net proceeds, strengthening its capital structure. The company reduced its expanded net debt by 20% quarter-over-quarter to BRL9.2 billion, driven by debt prepayments and divestment proceeds. General and administrative expenses decreased by 36% year-over-year, saving BRL49 million in the first half of 2026, with further reductions expected. Raizen's out-of-court reorganization plan was approved by 81.6% of creditors, marking a key step in its turnaround. Moove delivered a strong quarter with EBITDA more than doubling sequentially, showcasing effective inventory management during the supply crisis. The company announced the sale of a portion of Radar's land portfolio for BRL1.85 billion, with proceeds expected to further reduce debt. Cosan SA (NYSE:CSAN) is simplifying its structure by delisting ADSs and pursuing deregistration, aiming to reduce costs and enhance efficiency. Cosan SA (NYSE:CSAN) reported a negative net income of BRL320 million in Q2 2026, though improved year-over-year. The debt service coverage ratio temporarily fell to 0.2 times, impacted by dividend seasonality and not yet reflecting debt reduction benefits. The company recorded a one-off impairment of BRL233 million related to TUP Sao Luis, negatively affecting results. Radar's performance was impacted by lower ATR prices and portfolio revaluation, reducing net operating revenue. Moove's EBITDA was 6% lower year-over-year due to nonrecurring items, including insurance indemnities from a prior fire. The company faces uncertainty in achieving its year-end coverage ratio target of 0.8-1.2 times, as it depends on future dividends and divestments. Management changes, including departures of key executives, may create transitional challenges despite cost-saving intentions. Q: Regarding capital allocation and simplifying the holding company, could you dive deeper into your moves regarding Rumo and Moove? For Rumo, how do you look at this asset in the current capital structure, and would a minority stake be better? For Moove, given its strong results, would you consider selling the asset or an IPO in the future? A: Marcelo Martins (CEO): For Rumo, we have announced we are going to be selling some of our stake, and the process is moving forward according to plan. We are talking to potential buyers but have no further news to share at this time. Regarding Moove, we saw an exceptional quarter, which was expected given the team's ability to generate results. However, talking about an IPO for Moove is not appropriate right now as there is no market space for it. We do not expect to sell our stake at Moove at the moment, as we are fully supportive of management's initiatives and the robust results they have generated. Q: Could you be bolder regarding the recurring G&A for the company? You just announced the delisting of ADSs, so could we be more ambitious about cost reduction? A: Rafael Bergman (CFO and IRO): We have been experiencing good results with expenditure management. The delisting helps reduce expenditures over time, though for 2026 we still keep SEC obligations. As we simplify the holding's scope and bring together areas, we will accelerate savings. To answer your question, yes, we could be more ambitious with cost reduction because we are already seeing it. An unidentified company representative added that it is their ambition to present additional reductions, and their internal numbers are already considerably lower than the reported figures, with a trend of further reductions expected for upcoming years. Q: Regarding the interest coverage ratio, could we think about a level of financial expenses that are similar or even better than the second quarter because of liability management? Also, regarding the future of the holding, could simplification efforts have to do with the deleveraging of assets, or would this happen through another kind of structure? A: Rafael Bergman (CFO and IRO): Regarding the coverage ratio, there is a trend to improve it, which is why we started showing a forecast. The seasonality of dividends harmed indicators at the beginning of the year, but they will return to standard levels. The biggest source of deleveraging is portfolio changes, not necessarily increased dividends. Resources from the Compass IPO will be seen in the third quarter, and the Radar sale will contribute partially. We have reached an inflection point for this indicator. Regarding the holding's future, I don't think we have any news regarding this process; there's consistency in our simplification efforts, and anything else would be speculation. Q: Regarding Radar, I would love to understand your strategies to monetize it better. Are you still going to sell clusters and increase dividends? Also, on Moove, how is the normalization of results going back to normal, given the strong quarter with sectorial tailwinds that may not repeat? A: Rafael Bergman (CFO and IRO): Regarding Radar, the intention for the spin-off is about corporate efficiency, eliminating corporate structure and layers. The changes are in line with what we mentioned; it is a very valuable portfolio, and as we have the opportunity, we intend to monetize it, but we take valuation into account and don't intend to liquidate assets at any cost. Regarding Moove, there were tailwinds in Q2, but the team has consistently shown an ability to adapt to complex scenarios. They were able to work with supply restrictions and ensure supply for clients, leading to profitability benefits. As raw material costs go up, it will impact profitability, but we expect consistency from Moove going forward. Even with increased working capital, Moove delivered 1.4 times leverage, one of the lowest levels since the PetroChoice acquisition. Q: Could you provide more details on the debt service coverage ratio projection and the main factors influencing it? A: Fernando Tinel (Finance Director): We ended Q2 2026 with a debt service coverage ratio of 0.2 times on an LTM basis, impacted by the seasonality of dividends. We are providing a projection for December 2026, expecting a range between 0.8 times and 1.2 times. This is based on assumptions including dividends and equivalent distributions estimated between BRL1.2 billion and BRL1.8 billion, including proceeds from the Radar sale. The projection also incorporates the effect of liability management actions, including reduced financial expenses from prepayments and cash yield on financial investments. Potential new divestments under evaluation are not considered in this metric. Q: Could you elaborate on the management changes and the departure of Maria Rita and Rafael? A: Marcelo Martins (CEO): The management changes are a positive piece of news for the market, aligned with our goal of walking towards a leaner Cosan. Maria Rita and Rafael decided to leave while we were optimizing and reducing admin expenses. Even though it's undesirable because of their historical contributions, it aligns with our intention to reduce expenditures and simplify. We are bringing Cesario back, who spent eight years with the company and left in 2017. He knows the business well and is respected. The sacrifices we are experiencing are part of our goals to improve Cosan's structure and rebalance our capital structure. Q: What were the main drivers of the negative net income of BRL320 million in Q2 2026? A: Fernando Tinel (Finance Director): The negative net income of BRL320 million showed significant improvement compared to the same period last year. This was mainly driven by better financial results, lower effective income tax and social contribution expense, reduction in general and administrative expenses, and the nonrecognition of Raizen's results. These effects more than offset the one-off negative impact of BRL233 million related to the impairment of TUP Sao Luis. Q: Could you provide more details on the divestment initiatives and their impact on deleveraging? A: Fernando Tinel (Finance Director): We announced the sale of a portion of Radar's land portfolio for BRL1.85 billion, with approximately BRL586 million corresponding to Cosan's indirect stake. We also announced an exclusive letter of intent for the full divestment of our stake in the terminal of Uzprivado Porto San Luis, with BRL300 million at closing plus potential earn-out. These initiatives, together with debt prepayments totaling nearly BRL9 billion through June, reinforced our deleveraging path. This resulted in a 20% reduction in expanded net debt compared to Q1 2026 and a 36% decrease in G&A expenses.For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Cosan S.A. Sponsored ADR? Here are five stocks we like better. Debt reduction accelerated: Cosan’s expanded net debt fell 20% sequentially to BRL 9.2 billion, supported by BRL 8.8 billion in debt repayments, the Compass IPO, dividends and planned asset sales. Restructuring and simplification continued: The company cut general and administrative expenses by about 36%, plans to delist its ADSs from the NYSE, and expects its debt-service coverage ratio to improve to 0.8–1.2 times by year-end. Quarterly loss narrowed: Second-quarter net loss improved to BRL 320 million despite a BRL 233 million impairment, while Rumo and Compass delivered stable or improved operating results and Moove’s EBITDA more than doubled sequentially. 10 best sugar stocks to buy now Cosan (NYSE:CSAN) reported a narrower net loss for the second quarter of 2026 as the Brazilian conglomerate advanced debt-reduction, divestment and cost-cutting efforts designed to simplify its holding-company structure. Net loss totaled BRL 320 million for the quarter, an improvement from the prior-year period. Fernando Tinel attributed the improvement primarily to better financial results, lower effective income-tax and social-contribution expenses, reduced general and administrative costs, and the continued non-recognition of Raízen’s results. Those factors more than offset a BRL 233 million one-time impairment related to the Terminal de Uso Privado São Luís. → Applied Materials Beat Everything but Wall Street’s Expectations for Margins Cosan said expanded net debt declined 20% from the first quarter to BRL 9.2 billion at the end of June. Expanded gross debt fell to BRL 16.5 billion, down about BRL 2.7 billion from the prior quarter and roughly BRL 9 billion from the end of 2025. The company said it made approximately BRL 8.8 billion in principal payments since the beginning of the year, including full prepayments of bonds maturing in 2029, 2030 and 2031, along with early amortization of debentures and commercial notes. The actions reduced debt maturities scheduled for 2028 by more than BRL 2.5 billion, Cosan said. → Texas Roadhouse and Brinker International Have the Recipe Rivals Are Missing At quarter-end, the company’s debt had an average maturity of 6.2 years and an average cost of CDI plus 1.15% annually. Tinel said the decline in net debt was driven by proceeds from Compass’ initial public offering, dividends from investees and yields on financial investments. Compass’ IPO, completed through a secondary share offering, generated BRL 2.3 billion in net proceeds for Cosan during the first half. The company also announced an agreement to sell part of Radar’s Mato Grosso land portfolio for BRL 1.85 billion. Cosan expects its indirect share of proceeds to total approximately BRL 586 million at closing, which is expected by Oct. 30, subject to customary conditions. → AirJoule Technologies: Short Squeeze Setup Amid Rising Risks Separately, Cosan signed an exclusive letter of intent to fully divest its stake in the Terminal de Uso Privado Porto São Luís. The proposal calls for BRL 300 million at closing and could include an indicative earn-out of BRL 50 million for each additional berth added through future port-capacity expansion. Cosan’s debt service coverage ratio stood at 0.2 times on a last-12-month basis, down 0.2 times from the prior quarter. Management said the result reflected the timing of dividend and equivalent distributions from investees, which are more heavily concentrated in the second half of the year, and the fact that lower financial expenses from debt prepayments have not yet been fully reflected in the metric. The company began providing a year-end outlook for the ratio and expects it to reach between 0.8 times and 1.2 times by December. The forecast assumes BRL 1.2 billion to BRL 1.8 billion in dividends and equivalent distributions during 2026, including up to BRL 586 million related to the Radar transaction. Potential future divestments under evaluation are not included in the projection. Cosan also reported a roughly 36% decline in general and administrative expenses, or BRL 49 million in savings, during the first six months of 2026 versus the same period a year earlier. The company announced plans to delist its American depositary shares from the New York Stock Exchange and intends to pursue SEC deregistration in the future as part of its simplification agenda. Marcelo Martins said management expects to pursue further reductions in overhead as the holding company becomes leaner. Rafael Bergmann said the ADS delisting should make operations simpler over time, although Cosan will continue meeting SEC obligations during 2026 while the deregistration process is not complete. Rumo: Transported 23.8 billion revenue ton-kilometers, up 9% year over year, supported by grain volumes in its North and South operations. EBITDA was BRL 2.3 billion, broadly stable from the prior-year period. Excluding insurance indemnities and an equity-income reclassification, EBITDA would have risen 4%, Cosan said. Compass: Distributed volume was stable year over year. Weaker industrial demand in chemicals, steel and ceramics was offset by residential and commercial performance with higher margins. EBITDA increased 5%, supported by Edge’s load-optimization initiatives. Moove: EBITDA more than doubled from the first quarter amid supply disruptions associated with the closure of the Strait of Hormuz. Management cited inventory management, higher sales volume and revenue growth. EBITDA was down 6% from a year earlier because the comparison period included insurance recoveries and other one-time effects tied to a fire at an industrial complex in Rio de Janeiro. Radar: Performance was affected by the revaluation of part of its portfolio following the announced land disposal and lower net operating revenue, with lower ATR prices affecting lease contributions. Management also noted that Raízen’s out-of-court reorganization plan was approved by 81.6% of its financial creditors. Martins described the approval as an important step in Raízen’s turnaround process. During the question-and-answer session, Martins said Cosan continues to pursue the previously announced sale of part of its Rumo stake and is in discussions with potential buyers, but did not provide additional details. He said the company is not currently considering an IPO for Moove or a sale of its Moove stake. Management said Radar remains a valuable portfolio and that Cosan intends to monetize assets when valuations are appropriate, rather than liquidating them at any cost. Martins also discussed leadership changes, saying Maria Rita and Rafael Bergmann decided to leave amid the restructuring and reduction of holding-company expenses. He welcomed Cesario back to the company, saying he had previously spent eight years with Cosan before leaving in 2017. Cosan Limited (NYSE: CSAN) is a Brazilian diversified energy and logistics group focused on agribusiness, fuels, and infrastructure. Its core activities include the cultivation of sugarcane, production of ethanol and sugar, generation of bioelectricity from bagasse, and distribution of fuels under the Raízen joint venture with Shell. Through its subsidiary Moove, Cosan is a leading global producer of base oils and lubricants, while Comgás serves as one of Brazil's largest natural gas distributors. Founded in 1936 in the state of São Paulo, Cosan has grown through organic expansion and strategic acquisitions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Cosan Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Compass delivered a second quarter marked by robust revenue growth and positive market reaction, with results surpassing Wall Street’s revenue expectations. Management attributed the outperformance to strong transaction volume, especially in luxury markets, and continued outperformance versus the broader real estate market. CEO Robert Reffkin highlighted the impact of high-value transactions in regions like the Bay Area, noting, “This reflects roughly 1,000 basis points of out-performance compared to the market.” The company also cited early benefits from operational efficiencies and technology investments, which offset some of the headwinds from rising expenses. Is now the time to buy COMP? Find out in our full research report (it’s free). Revenue: $4.31 billion vs analyst estimates of $4.11 billion (109% year-on-year growth, 4.7% beat) Adjusted EPS: $0.19 vs analyst expectations of $0.25 (22.2% miss) Adjusted EBITDA: $363 million vs analyst estimates of $331.6 million (8.4% margin, 9.5% beat) Revenue Guidance for Q3 CY2026 is $3.95 billion at the midpoint, above analyst estimates of $3.74 billion EBITDA guidance for Q3 CY2026 is $290 million at the midpoint, above analyst estimates of $266.7 million Operating Margin: 2.9%, in line with the same quarter last year Transactions: up 79,984 year on year Market Capitalization: $9.39 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Elizabeth Langan (Barclays): Asked about traction and network effects from the three-phase marketing strategy. CEO Robert Reffkin explained that adoption reached 57% of Compass Brokerage listings, targeting 80% by quarter-end, and emphasized the strategy’s benefits for price discovery and seller flexibility. Elizabeth Langan (Barclays): Inquired about cost synergies beyond the current target. CFO Scott Wahlers noted that while the pace will slow as deeper integration work begins, management remains committed to exceeding the $500 million target over time. Jason Helfstein (Oppenheimer): Questioned whether success with “Coming Soon” listings and web traffic in Chicago can be replicated elsewhere. Reffkin stated that similar positive trends are expected in other markets as MLS rules become more flexible. Kunal Madhukar (Deutsche Bank): Asked about market share assumptions in guidance and the impact of higher-priced property focus. CFO Wahlers clarified that guidance is based on current system data rather than explicit market share projections and stressed ongoing focus on productive agent recruitment. Alec Brondolo (Wells Fargo): Sought clarity on the timeline for “Coming Soon” listing adoption across acquired brands. Reffkin anticipates adoption levels to match Compass brands by the spring market next year. In the quarters ahead, our analysts will be watching (1) the pace and impact of the technology platform rollout across both owned and franchise brands, (2) the realization and potential expansion of cost synergies as integration deepens, and (3) the adoption rate of the three-phase marketing strategy, particularly in driving web traffic and agent productivity. The evolving regulatory landscape affecting MLS rules will also be an important driver to monitor. Compass currently trades at $12.63, up from $12 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET Head of Investor Relations - Soham Bhonsle Founder and CEO - Robert Reffkin Chief Financial Officer - Scott Wahlers Operator: Good day, everyone. Welcome to the Compass Inc. 2026 Q2 Earnings Call Conference Call. [Operator Instructions] This call is being recorded. If you have any objections, please disconnect at this time. I would now like to turn our call over to Soham Bhonsle, Head of Investor Relations. Please go ahead. Soham Bhonsle: Thank you very much, operator, and good afternoon, everybody, and thank you for joining the Compass Second Quarter 2026 Earnings Call. Joining us today will be Robert Reffkin, our Founder and CEO; and Scott Wahlers, our Chief Financial Officer. In discussing our company's performance, we will refer to some non-GAAP measures and discuss some metrics on a non-GAAP pro forma basis. You can find the reconciliation of the non-GAAP measures to the most directly comparable GAAP measures and supplemental non-GAAP pro forma information for prior quarters in our second quarter 2026 earnings release posted on our Investor Relations website. We will also make forward-looking statements that are based on our current expectations, forecasts and assumptions and involve risks and uncertainties. These statements include our guidance for the third quarter of 2026 and full year 2026 and comments related to our expectations for realizing cost synergies and operational achievements. Our actual results may differ materially from these statements. For more information, see our most recent annual report on Form 10-K and our recent Form 10-Q. You should not place undue reliance on any forward-looking statements. I will now turn the call over to Robert Reffkin. Robert? Robert Reffkin: Good afternoon, and thank you for joining us for our Second Quarter Conference Call. On today's call, I will be discussing five topics. First, I will provide a quick recap of our record Q2 results. Second, I will share an update on our cost synergy targets and our technology rollout. Next, I'll touch on our partnership with Rocket-Redfin and how we are infusing competition in residential real estate. Fourth, I'll discuss how we are moving on the offense with AI. And I'll end by revisiting the long-term earnings potential of our business. Starting with our record Q2 results, where all my year-over-year and quarter-over-quarter comments will be against pro forma figures. In Q2, Compass delivered record revenue and record adjusted EBITDA, above the high end of our guide. Revenue of $4.3 billion was up 14% year-over-year compared to pro forma revenue of $3.8 billion a year ago, while adjusted EBITDA was $363 million. Cash on hand increased by $210 million quarter-over-quarter to $694 million, which drove net debt to adjusted EBITDA on a trailing 12-month and a pro forma basis to 3.3x compared to the 4.2x in Q1 of 2026. So this means over the past quarter, we have already lowered our net leverage ratio by roughly one turn. Assuming current 2026 consensus adjusted EBITDA estimates and our Q2 ending cash balance of $694 million, which would be conservative as we expect to generate free cash flow in the second half of the year, our net debt to adjusted EBITDA ratio would move into the 2s by the end of the year, illustrating the progress we continue to make on reducing our net leverage ratio even as we are at the bottom of the cycle. In our brokerage business, which includes the Coldwell Banker, Compass, Corcoran and Sotheby's International Realty brands, transactions were up 7.4% year-over-year compared to the market, which was up 3.5% year-over-year. As a result, for 21 consecutive quarters, spanning our entire history as a public company, our brokerage business has outperformed the market on an organic basis for the Compass stand-alone brand. And for the second consecutive quarter, including the Anywhere transaction, we have now outperformed the market as well. Additionally, brokerage gross transaction volumes, or GTV, was up approximately 16% year-over-year compared to the market that was up 6%. This reflects roughly 1,000 basis points of out-performance compared to the market, which is an acceleration compared to the roughly 600 basis points of out-performance we delivered in Q1 2026. We believe this out-performance is a reflection of the quality of our agents and exposure to the higher end of the market, which tends to be less rate sensitive. We believe the wealth effect created by a record stock market and a growing U.S. economy has been a driver of demand for our business and is helping offset the rise in interest rates. Recently, there has been much discussion regarding the Bay Area real estate boom, driven by the SpaceX IPO, the upcoming SpaceX lockup and the potential IPOs for Anthropic and OpenAI. So we thought it would be helpful to provide some color on what we are seeing there given our presence in that market. On a year-over-year basis, in the Compass stand-alone brand, we are seeing revenue in the Bay Area up 19% year-over-year in both July and August on a business day adjusted basis, which is relatively consistent to the up 20% we observed in June. This suggests the momentum coming out of June in the Bay Area is continuing. In franchise, GTV was up 11.7% year-over-year compared to the housing market volumes that were up 6%, reflecting 570 basis points of out-performance. Our high-end brands, including the Corcoran and Sotheby's International Realty brands, continue to significantly outperform the company average. Integrated services revenue grew 7.7% year-over-year with title and escrow revenue being the primary driver. Total T&E transactions grew by 7.6% year-over-year with purchase transactions growing by 6% and Refi transactions growing by 25% year-over-year. Our focus in 2026 into 2027 is to unify our T&E operations by migrating all T&E operations to the Compass's title production platform. Transitioning to one title production platform is expected to unlock additional efficiencies and expand incremental margins in the future. While we are making this transition, however, we will continue to optimize our attach efforts by scaling best practices from both organizations and expect our attach efforts to accelerate in 2027 as we deploy tools such as one-click title across our footprint. In mortgage, our JVs more than doubled profitability in the Q2 year-over-year period, primarily due to strong volume growth and disciplined expense management. Our focus in 2026 in mortgage is to drive operational efficiencies within our JV entities while also making progress on attach by continuing to attract the best loan officers to the business. Now an update on our cost synergy and integration efforts, starting with our cost synergies. As of July, we actioned our entire year 1 target of $300 million in net cost synergies 5 months ahead of plan. As such, we are now pacing above our $300 million target and expect our actioned net cost synergies to be $330 million by the end of year 1, with our 2026 in-year realized net cost synergies to be $220 million compared to the $200 million that we previously stated. We expect to realize about $150 million of the $220 million through the P&L compared to $130 million previously stated, and we continue to expect the remaining $70 million to be realized as CapEx synergies later this year. Lastly, regarding our total actioned net synergy target of $500 million. While we are not changing our total target at this time, given the accelerated pace at which we have been moving, it would be fair to assume that we will achieve the $500 million in cost synergies in less than 3 years and that we will achieve more than $500 million in cost synergies in 3 years. As a reminder, approximately $420 million of the $500 million is expected to be realized through the P&L and $80 million is expected to be realized as CapEx synergies. Next, on to our technology rollout. In July, we achieved a significant milestone as we made our newly branded home platform technology available to over 4,000 agents at Coldwell Banker, Corcoran and Sotheby's International Realty in the pilot beta. Feedback since the rollout has been positive with agents noting the ease of use on both mobile and desktop, the network effect benefits of the platform, particularly in the private exclusive phase and the highly integrated nature of the platform. So far, the platform has received an 82% CSAT or customer satisfaction score, which is generally considered to be a strong score in the software industry. By the end of September, nearly 50,000 new agents in the owned brokerage brands will have access to the platform, reflecting over 80,000 agents on the platform, including the Compass Brokerage brand. All agents will have access to our private exclusives and coming soon inventory. Our 128,000 domestic franchise agents will begin to onboard in Q1 2027. I want to give a special thanks to our product and engineering team, our marketing team and our coaching teams for the monumental effort in getting us to the point in record time. I cannot overstate the relentless execution and tireless commitment the team put into this to make sure that the agents have access to the platform ahead of the fall market. I am incredibly proud of the team. And in all my years at the company, I have never seen the team come together to realize such a big and audacious goal. Thank you. Now let me provide a few thoughts on our partnership with Rocket-Redfin and how we are infusing competition in residential real estate. Starting with our Rocket-Redfin partnership. Since launching Coming Soons on Redfin in late Q1, our agents have received more than 60,000 leads from Rocket-Redfin, and Compass has delivered more than 20,000 coming soon listings to Redfin. Moreover, we want to share our first data point highlighting the impact to consumer traffic resulting from the coming soon inventory on Compass.com. In Chicago, where we have the most Coming Soons of any market, the number of sessions on Compass.com in Chicago were up 111% year-over-year, outpacing the average sessions growth of 34% year-over-year on Compass.com, or by 77 percentage points. This reflects what happens when MLS rules let clients and their agents choose to market properties how they see fit. Which, in this case, is through the local MLS, MRED. We expect more than 90% of MLSs to have rules that allow sellers to market both private exclusives and Coming Soons by the end of the year. The trend for seller choice is moving quickly. Moving on to how we are infusing competition in real estate. I believe in competition. Not only does the law require companies to compete, but competition is the bedrock of our economy. Competition is the engine that produces the most value and options for consumers. However, today, the most powerful entity in real estate, the Multiple Listing Services, or MLS, they do not compete. Instead, many abuse their power by creating mandatory rules and they enforce with MLS fines up to $5,000 that every real estate professional and their sellers are expected to follow. Real estate professionals have no ability to push back because they need access to MLS to do their job. That is because over the past 100 years, all real estate professionals have been conditioned to use the MLS to market a listing to other real estate professionals. So without access to MLS, you can't access the listing data for your buyers. In almost all markets, agents have only one choice for Multiple Listing Services, making that single MLS in that market a monopoly that agents need to use to do their jobs. It is that market power that has empowered MLSs to fine agents up to $5,000 for marketing outside MLS, even though the MLS is not the government. It's just a private entity. What other private business can fine and punish other private businesses. The untold secret in real estate is that the MLS is controlled by a collection of our competitors that tell us how we can and cannot compete. The MLS is controlled by a collection of our competitors, who are running the board, and they are telling us how we can and cannot compete. What other private business is told how to compete by a collection of their competitors? This is why the MLS system has been investigated or sued by the United States government over 100 times in the last 50 years. The MLS has been weaponized against the very customer that pays to get access to that service utility, namely the real estate agent and the real estate brokerages, those agents associate with. Let me say that again. Real estate agents pay the MLSs money. Real estate agents give the MLS the result of their hard work and their intellectual property in exchange, the MLS tells the real estate agent how to compete and fines and punishes the agent if they compete too hard. This is anticompetitive. This is anti-consumer and it's illegal. Multiple Listing Services should have to compete for our business just as brokerages have to compete for agents and agents have to compete for their clients. Today, our agents compete relentlessly for every client. They compete at every kitchen table across the U.S. every single day. Brokerages also compete fiercely on compensation, on technology, on coaching, on culture to attract and retain the industry's top professionals. Over the years, Compass has invested over $2 billion in technology to compete to provide competitive technology offerings. Because of competition, our real estate professionals cannot fine or punish other agents or tell them how to compete. And because of competition, we cannot fine or punish brokerages and agents or tell them how to compete, but most MLSs can. And most MLSs do because they have no competition. I am working to change that and bring competition to the MLSs so that they can compete for real estate professionals and succeed in those MLSs that do not compete fail. Similarly, the dominant portal once competed for the attention of the consumer, competed for listings. But over the past 20 years, it gained dominant market power and with it, adopted restrictive rules that punish brokers and agents who are competing for those same consumers. Like MLSs, the dominant portal takes the hard work and intellectual property created by brokerages and agents without our permission and [ forge ] free, takes it from the MLS and use it for lead diversion to make money on it time and time again. But if the dominant portal had to actually compete to get our listings, compete on price, compete on features, compete on value, they would have to completely change their business model or fail. If the dominant portal no longer got listings for free from MLS, they would need to compete for those listings resulting in listing agents getting their buyer inquiries and their name and brand back on their listings. So everything Compass has done in the past and everything it is doing today is designed to infuse competition into MLS and portals and real estate. Why? Because if multiple listing services and the dominant portal have to compete like real estate professionals and brokers have to compete every day, consumers and the agents that represent them win. If they have to compete for brokerages, brokerages win. This is why I am supporting Multiple Listing Services and portals that compete for our real estate professionals, and I'm working to inject competition in the MLS and portal ecosystem. A good example of how competition can create change is the Rocket-Redfin partnership that was announced earlier this year. Less than a month after we announced the partnership, the dominant portal discontinued the restrictive ban on Coming Soons marketed outside of their platform and launched a coming soon product for agents and sellers on their own platform. Competition resulted in more choices for agents and more choices for the consumer. Another example is our recent announcement with several multiple listing services across the country that supports those that actually compete for real estate professionals. As a result, we have seen some of the largest MLSs in the country, including those in Chicago, Washington, D.C., Philadelphia, Southern California, Florida and Nashville, they have begun to compete, including by offering more flexible rules that let home sellers and their agents determine where and how to market their own properties. MLSs that are expanding recognize that if they want to get agents in new markets to sign up to their MLS, they can't expand with more restrictive rules and fines. Instead, they need to compete with more marketing options and more marketing flexibility that helps listing agents and their sellers as opposed to helping the dominant portal. If MLSs and portals had to compete just like we compete with over 80,000 brokers in the country or how agents compete with the 1.5 million agents in the country, I am confident that our company will be able to create an incredible amount of value for all stakeholders, including our real estate professionals, their clients, our employees and our shareholders. Every month, we are seeing more and more MLSs competing in ways that help our clients, our agents and our company. Competition will empower the best agents and the best brokerages. Competition will naturally eliminate restrictive rules and empower the 3-phase marketing strategy. Competition will unlock the full potential of the Compass business model and competition is coming. Finally, we are also seeing several states encode into law a seller's right to market property how they see fit through seller opt-outs. Connecticut, New York and Wisconsin now allow sellers to market their home privately with seller opt-outs. Over the past year, our 3-phase marketing strategy has required similar seller disclosure that states are now putting in place, so we only see this as a big positive. Furthermore, Washington State has adopted laws that allow home sellers to publicly market their homes however they want, so long as the home is concurrently marketed to the general public and all other brokers. And our private exclusives and Coming Soons are marketed to the general public through our website. So as you can see, the trend at the state level is also one where the law is emphasizing that homeowners, the people who actually own the property for sale, get to choose how to market their properties, not multiple listing services or the dominant portal. Overall, all of these changes are well aligned with our 3-phase marketing strategy, which continues to see an increase in adoption across the Compass brand with adoption in the most recent week approaching 57% of all new Compass listings. By the end of the third quarter, I would expect 80% of Compass Brokerage listings to launch as a coming soon on Compass.com and Redfin and the total number of Coming Soons to build from there as we expand the offering to all of our brands. Of note, 65% of our franchise network participated in a Redfin coming soon preview session in late June, with 40,000 of those agents already opting in to the Redfin Direct listing tool. And by the end of Q3, we expect over 180,000 agents of our franchise and brokerage agents to have the ability to create Coming Soons. Now shifting to our AI strategy, where we are moving on offense in two ways: one, reducing OpEx; and two, increasing agent productivity. First, we are using AI to reduce OpEx, as you would expect. In Q2, we began deploying FDEs, or forward-deployed engineers within business functions, including transaction management, legal and growth to build automated AI workflows directly into day-to-day operations. To date, the team has identified a mix of roughly $8 million in savings and cost avoidance opportunities. Additionally, across the technology organization, 50% to 60% of all new code is now produced by AI, which is helping us ship code faster and more efficiently, 50% to 60%. Second, on agent productivity, we are rolling out tools to make our real estate professionals more efficient. In July, we demoed our AI assistant more broadly, which is an integrated assistant that helps agents orchestrate more than 90 of our platform tools, simply through natural language prompts. Our earnings deck this quarter includes several direct testimonials from agents. And as you will see, early feedback is incredibly positive. Agents are citing the amount of time the AI assistant is saving them on everyday tasks such as client outreach and importantly, helping them unearth proprietary leads. User data indicates deeper engagement with the platform with a number of tools called per agent and number of conversations per agent up almost 2x since our demo day. I want to end by revisiting the long-term earnings potential of our business as we discussed last quarter. As a reminder, our scenario analysis is not meant to be guidance and assumes no agent adds, no organic share take, no margin improvement, no improvement on T&E or mortgage attach or any contribution from leads or other ancillary revenue. These are all incremental growth levers in our business beyond the housing recovery and levers that we are beginning to pull, as you can see from our Q2 results. Assuming the housing market remains flat at 4.1 million existing home sales, we would generate roughly $1 billion in adjusted EBITDA and $750 million in unlevered free cash flow. In the next scenario, which we've assumed as 4.8 million existing home sales for this analysis, we would generate $1.5 billion in adjusted EBITDA and $1 billion in unlevered free cash flow. At mid-cycle levels of 5.5 million home sales, we would generate $2 billion in adjusted EBITDA and $1.5 billion in unlevered free cash flow. And lastly, we also provided an upside scenario of 6 million home sales. And at that level, we would generate $2.5 billion in adjusted EBITDA and roughly $2 billion in unlevered free cash flow. With that said, I will now hand it over to our CFO, Scott. Scott Wahlers: Thank you, Robert. Consistent with our prepared comments from last quarter, I'll provide some information about the contribution to our consolidated results from the acquired Anywhere businesses where possible. However, we're integrating the entities quickly and therefore, do not generally expect to break out separate results going forward. You'll find financial information included on our Investor Relations website from last quarter that provides additional supplemental information on a pro forma basis as though the Anywhere business was combined with Compass for the full year of 2025. Where applicable, this prior year pro forma information will be referenced in my prepared comments today. Now moving into the financial details. Revenue in Q2 reached $4.3 billion, which exceeded the high end of our revenue guidance range of $4 billion to $4.2 billion. On a pro forma basis, consolidated revenue was up 14.3% from the year ago period. We saw year-over-year revenue increases in each of our three operating segments during the quarter, but the owned brokerage segment was a standout with $3.96 billion of revenue and a 15% increase on a pro forma basis compared to the year ago period. Wealth being created by the AI boom in the Northern California market supported some of this revenue growth. Our Chief Economist, Mike Simonsen, highlighted that during the first 6 months of the year, 140 transactions in San Francisco closed at least $1 million above the asking price, with 44 of those transactions by 6% compared to just eight homes closing $1 million above asking price in the first half of last year. Gross transaction value for the brokerage segment was $155.2 billion in the second quarter, up 16% year-over-year on a pro forma basis, which reflects a 7% increase in transactions and average selling price appreciation of 8% to an average price of just over $1 million. Our talented real estate professionals and our presence in the luxury markets allowed us to capitalize on this market growth. As Robert commented earlier, the increase in our gross transaction value during the quarter of 16% on a pro forma basis compares very favorably to the overall market that was up 6% on volume. Gross agent adds in the quarter were 2,816, down from 3,503 in Q1. As we mentioned last quarter, we are shifting recruiting practices of the brands acquired in the Anywhere transaction towards more productive agents. And while the total number of agents recruited is lower this quarter, productivity per agent continues to increase meaningfully and is clearly not impacting our ability to grow. Going forward, all the owned brokerage brands acquired in the Anywhere transaction will begin leveraging our enterprise sales team to recruit agents. Once this partnership model is fully set in motion by early 2027, we expect it to lead to a healthy level of agent adds and better productivity per agent. Importantly, total agent retention in our Brokerage business was 95.5%, which was largely flat compared to Q2 of 2025 on a pro forma basis and up 140 basis points compared to Q1 of 2026, where it was 94.1%. Consistent with last quarter, 72% of total agent separations in the quarter had no production or very low production in the trailing 12-month period. As a result, excluding agents with $0 GCI in the last 12 months, agent retention would have been 97.7% in Q2 and excluding agents with $20,000 or less in GCI in the last 12 months, which on average equals less than two transactions at our price points, agent retention would have been 98.7% in Q2. Commissions and other related expenses as a percentage of Brokerage segment revenue increased by 43 basis points to 82.2% from 81.7% on a pro forma basis a year ago. This is largely due to mix, whereby the majority of the revenue growth was in markets with lower overall margins were closed by real estate professionals that are on the higher end of the split schedule. For the Compass stand-alone brand, this commission metric was flat year-over-year. Franchise segment revenue was $135 million in the quarter, up 7.6% on a pro forma basis, and GTV was up 11.7% year-over-year on a pro forma basis compared to housing market volumes that were up 6%, which reflected out-performance led by our luxury brands, Sotheby's International Realty and Corcoran. Integrated services revenue reached $211 million in the second quarter, up 7.7% year-over-year on a pro forma basis, driven by strong performance across title and escrow. Our Cartus relocation business, which is also included in the Integrated Services segment, secured 15 new clients and expanded numerous existing client relationships during the quarter. We believe Cartus is well positioned over other relocation management companies as we integrate into the Brokerage operations and our Brokerage and Franchise operations benefit from the lead flow generated by the relocation side of the business. Our total non-GAAP operating expenses were $699 million in Q2. As a reminder, our Q1 non-GAAP operating expenses of $641 million excluded OpEx from the Anywhere business for the first 8 days before the January 9 acquisition date. So the increase in Q2 reflects the full quarterly run rate of our combined operations and some modest increase in variable compensation accruals as a result of our year-to-date out-performance as well as growth in the Integrated Services segment. Recall that compensation for our title and escrow officers in the Integrated Services segment is included in the operations and support line, and therefore, revenue growth in this business will have some corresponding growth in the OpEx line, but of course, that's coupled with accretive adjusted EBITDA. As Robert touched on earlier, we have continued to make strong early progress on cost synergies. This quarter, we pulled forward some additional synergy actions, and we've now actioned $300 million of our cost synergy target, which was our revised full year target for 2026. As we committed, when we hit our synergy targets, we won't stop looking for opportunities. We now expect to action as much as $330 million during 2026. Last quarter, we updated our expectations to realize about $200 million of the action synergies in our financials in 2026. We said about 2/3 of this amount or $130 million will be reflected as reduced operating expenses in 2026, benefiting adjusted EBITDA and cash flow and the remaining 1/3 or about $70 million will be reflected as lower CapEx, which won't directly benefit adjusted EBITDA, but will benefit free cash flow. As a result of pulling through some additional action synergies this quarter and a higher expected level of action synergies for the full year of 2026, we now expect approximately $150 million to be realized in OpEx, which reflects an increase of about $20 million from our prior expectations, but note that about 50% of this additional $20 million has already been realized in Q2. OpEx was essentially flat year-over-year on a pro forma basis. And one of the drivers of that is our cost to serve per transaction, which hit a record low within the Compass brand in Q2. However, as we consolidate our back-office systems with our other brands over the next year, we see opportunity to continue lowering the cost to serve per transaction through greater utilization of AI and deploying other best practices. Adjusted EBITDA for Q2 was $363 million, a record performance for any second quarter and almost triple the amount of adjusted EBITDA Compass generated a year ago on a stand-alone basis. As an interesting data point, the $363 million of adjusted EBITDA in the quarter reflects more adjusted EBITDA in one quarter than for the full annual period of 2025 or any other annual period in Compass' history. An early proof point of the earnings potential of the combined business. Adjusted EBITDA in the quarter includes segment adjusted EBITDA of $377 million from brokerage, $87 million from franchise and $52 million from integrated services, each reflecting improvements from Q1, both in terms of total dollar value and as a percentage of their respective segment revenues. As a reminder, while certain direct expenses are allocated to each of the three operating segments, there are additional expenses that are not allocated to any of the operating segments because they relate to more of the corporate entity or because they're shared across multiple or all of the operating segments. These include expenses related to our technology, finance, legal, human resources and executive functions. Therefore, the total adjusted EBITDA of the consolidated company will be equal to the total of the segment adjusted EBITDA for our three operating segments, less the unallocated corporate expenses of $153 million to equal the total adjusted EBITDA of $363 million for the second quarter. We achieved GAAP net income of $92 million this quarter, a significant improvement from GAAP net income of $39 million in the prior year despite the increase in depreciation and amortization expense, merger and integration expenses and interest expense resulting from the Anywhere transaction earlier this year. Our basic weighted average share count for the second quarter was 758 million shares, which was within our guidance range of 755 million to 760 million shares. As a reminder, the share count for Q2 reflects an anticipated step-up from Q1 as the shares issued for the Anywhere transaction were only weighted during Q1 for the period post the January 9 closing date, but they have a full quarter weighting in Q2. Free cash flow was very strong at $180 million for the quarter, resulting in $694 million of cash on our balance sheet as of June 30 and no outstanding borrowings on our $500 million revolver. The strong cash flow during the quarter was driven by the over-performance on adjusted EBITDA as well as some favorable timing on working capital items. In particular, our remaining cash liability from Anywhere's NAR class action settlement of $54 million was not paid during the quarter and is now expected to be paid later in 2026. Last quarter, I commented we would redeem the $500 million of our 9.75% notes in Q2 of 2027. The strong cash position as of quarter end, plus additional positive free cash flow anticipated for the second half of the year underscores our ability to achieve this commitment. We also stated that you should not expect to see any changes in our debt levels for the balance of the year or into Q1 of next year. That's because the highest cost tranche of our debt has a no call provision until April of 2027 and our 7% notes have a 1.75% call premium associated with them as well that drops away on the same date in April 2027. So we plan to continue to build our cash position through that date. And in the meantime, we have our cash invested in short-term treasuries with yields in the mid-3% range. It's worth reiterating some of Robert's earlier commentary on our net leverage ratio. Once again, we won't start reducing our gross debt levels until Q2 of next year due to the call provisions of the debt. However, our net debt levels are reducing when you consider our growing cash position. And when you combine this with our growing levels of trailing annual adjusted EBITDA, our net leverage ratio is improving. As Robert just touched on, if you take our net debt as of June 30, which is $2.45 billion and divide that by 2026 consensus adjusted EBITDA estimates of approximately $850 million, that yields a net leverage ratio of just under 3x. But since we expect to generate additional cash flow in the second half of 2026, the actual ratio as of year-end will be even lower. Turning to financial guidance for Q3. For the third quarter of 2026, we expect consolidated revenue in the range of $3.85 billion to $4.05 billion. We expect third quarter consolidated adjusted EBITDA to be in the range of $275 million to $305 million. And for the full year, we expect non-GAAP operating expenses in the range of $2.75 billion to $2.80 billion, which is an increase of $50 million from the guidance provided last quarter. The increase is primarily driven by $35 million of OpEx assumed from a recent brokerage acquisition we completed in early July; and secondly, some additional compensation expenses related to our recent over-performance. We expect basic weighted average share count for the third quarter to be between 767 million to 769 million shares, and we expect to generate positive free cash flow in Q3. Our cash flow in future years will be supported by the use of our net operating losses. It's worth a reminder that we have $1.8 billion of NOLs that will shield us from federal and state taxes as we generate taxable income. At our current combined tax rate of about 26%, which is a federal corporate tax rate of 21% plus about 5% of a blended state tax rate, that's about $470 million of potential cash taxes that will be avoided due to the utilization of the NOLs in the future. As we turn to Q&A, I want to say thank you to our entire team for the exceptional efforts and collaboration. We've all been working very hard for these past 6 months following our transformational merger with Anywhere in January, and it's great to see those efforts embedded in the outstanding results we're sharing today. And finally, we'll be participating in the Barclays Industrials Conference on August 12 in New York City, the Oppenheimer Tech Conference on August 13 and the Zelman Housing Summit on September 17. We hope to see you at one of those events. Operator, you can now begin Q&A. Operator: [Operator Instructions] Our first question will come from Matthew Bouley with Barclays. Elizabeth Langan: You have Elizabeth Langan on for Matt today. I just wanted to start off by asking for an update on your 3-phase marketing strategy. It sounds like you've had a lot of traction on the Redfin partnership. And I know last quarter, you had said that the coming soon had moved up towards the mid-30% range of your listings last quarter. How are you tracking against that? And maybe if you could give a little more detail on how the broader network effects are materializing. Robert Reffkin: Great. So on the Compass Brokerage side, the Coming Soons in July approached 57%. So for all new listings, 57% of them start off as coming soon, where we believe that we're on a path to have 80% of all new Compass Brokerage listings start off as coming soon in August and September. For the other brands, they are now onboarding to the platform. And so now they're -- I would expect the same trend line over time there as well. Really, there's no downside. There's no reason not to. There's no days of market, no price drop history. The worst thing that can happen is you get an offer. And you can say, no, I don't want the offer. I'm going to go to every site, not just the 60 million people that are buying off of Redfin.com in our brokerage sites. Remember, only 4 million people buy a year. So how many tens of millions of people do you need to see your property? And so that's why we're getting so much traction. And we're seeing a lot of demand for the private exclusives as well as the new brands come on because the same message is there for sellers. There's no downside. The worst thing that happens is you can go coming soon and go to the public markets, but with the benefit of price discovery as a private exclusive. At the core, what that tool is, it has many different benefits -- ways to use it. But at the core, it is a price testing tool in the exact same way that road shows that companies going public test price as the private listing is the exact same thing for people that are taking their property public and selling their property. And so the only people that -- what seller wouldn't want a price testing tool? The only entity that wouldn't want a price testing tool are people whose business models can't make money off of it. Elizabeth Langan: Yes. That makes a lot of sense. And secondly, I wanted to ask if you could touch on cost synergies. You obviously spoke to you're not raising the $500 million target right now. But as you've made progress and you're actioning at a higher level than you were initially with the $330 million. How are you thinking about the upside there? And how should we be thinking about the pace in 2027 versus your prior expectations? Scott Wahlers: Yes. Thanks for the question. I think we're really happy with the progress made to date. In 6 months, we've made really strong progress on cost synergies. We're really happy with that. And I think as you consider the pace over time, we're getting into some of the deeper operational synergy areas, some of the system integrations. Some of these things are going to take longer time. And so you'll definitely see the pace slow compared to how quickly we came out of the gate for the first 6 months. But I think in terms of what we can achieve overall. I'd put you back to what we did in 2022 when interest rates started to spike with the mortgage rates. We made a commitment to take cost out of the business. We exceeded our initial goals on that. Then we exceeded the goals we put again on top of that. And so we -- the point being is that we're not going to stop looking for opportunities once we get to the $500 million goal. And so I think it's safe to assume or reasonable to assume that based on the pace that we've come out in the first 6 months that we will hit our goals over time and potentially exceed them. But we're not going to go into details as far as 2027 at this point in time. Operator: Your next question will come from Jason Helfstein with Oppenheimer. Jason Helfstein: Robert, the lead stats in Chicago with Redfin are quite impressive. I think while Chicago has some uniqueness, maybe just talk about your ability to replicate this in other markets. And then just when we think about transaction per agent, obviously, we can do the math on Q1 to Q2. Just how much do we -- upside do we see in transactions per agent if we get back to kind of a normal market versus the current level? So where do you think kind of peak upside is there? Robert Reffkin: I'll address Chicago and the broad opportunity, and then I'll pass it on to Scott for transactions per agent. So on Chicago, we're really happy to see that. Also, it kind of it shows what happens in a free market without restrictions, without fines, without bans. What it shows you is why wouldn't an agent put it on their sites first? What's the downside? Why wouldn't you want -- what seller doesn't want the agent to get their own buyer -- the buyer inquires and deal with them directly. And to be -- to see our traffic up over 100% year-over-year, 77 basis points over the rest of the regions. It's giving us even more confidence and more conviction. And it's also making our real estate professionals even more excited to continue to make progress here as we will. I don't think Chicago is that unique. To be clear, it is becoming the norm. MLSs have statuses that allow agents to share their listings with all agents across all brokerage firms and decide where it is publicly on their site. And so what I mean by that specifically is now 60% of our markets, but it's now in the 60s, they will allow agents to decide to have it on their site and as long as they're sharing it within the MLS across all brokerage firms. And so we think this is going to become more and more the norm as agents see the value in it for their sellers. Scott Wahlers: Yes. And Jason, just to touch on the question on transactions per agent. Tough question to answer as far as a specific data point. But as a trend, I think you'll see the number continue to go up just as you did this quarter. And the reason for that is that we're turning out or trading out of the business, some of the unproductive agents. In fact, we cited stats today that are similar to the stats we cited last quarter, where 49% of the agents that left the business in the quarter had 0 GCI in the trailing 12 months. So naturally, it's just going to increase transactions per agent. There's a lot of mix in there, too, because remember, we're now disclosing total agent counts, not just principal agent counts. And the total recruiting number each quarter and the total attrition number is really not 100% in Compass' control. It's also in control of the principal agent, right? The principal agent is who decides to add team members to its team. It's who decides to attrit team members from its team. So that goes into that churn as well. But I think directionally speaking, you'll see that number go up as we, by definition, are only recruiting productive agents to the company. And as a result of the data you saw in the last two quarters, we're trading out on average, the lower-performing agents. Operator: Your next question will come from Kunal Madhukar with Deutsche Bank. Kunal Madhukar: A quick one on the outlook that you provided. Given the K-sided or K-shaped market recovery or the economy that we are seeing right now, as the market recovers, what is your assumption on market share and especially around the recovery part? So if the market recovers from the current $4 million to like, let's say, $5 million or $5.5 million, if you're assuming the same market share going up in that environment, -- is that -- given your bend towards higher-priced properties and more luxury properties, would that assumption be correct? Scott Wahlers: Look, we don't really think about guidance in terms of market share. I mean we really haven't changed our philosophy on guidance. And the way we do it is really consistent with how we've always done it for that upcoming quarter. It's really based on what we're seeing in our systems at this point in time, right? So as we sit here today, early August, we have good visibility into July. As a reminder, too, for this current quarter, July represents -- it's the largest month of the 3 months in this quarter, directionally 40% of the volume in July. And so we take a look at what we see in July. We have some data for August, right? So we're able to extrapolate that into a guide for the month of August. And then September is a little bit of our wildcard. It's the third month out in the quarter. And so we're taking educated guesses on that based on trending information, but that's kind of how we do the guide for the upcoming quarter and really haven't changed that. Kunal Madhukar: Got it. And with regard to agent growth, how should we think of agent growth for the third and the fourth quarters? Scott Wahlers: Yes. Look, in terms of agent growth, I think the point here is that we're going to continue recruiting productive agents into the environment. I mean, as we talked about a little bit in our prepared comments, we had consistent good growth on the Compass side. Our enterprise sales team has been in a good motion over years now of perfecting that sales motion, and we are rolling that recruiting team out to the other owned brands in the Anywhere side that we just acquired in January. And so we're looking forward to ramping that up and that should be full scale come January of next year. And so over the next couple of quarters, I think you'll still see steady growth, but we're really looking forward to getting that full recruiting motion heading into 2027. The point being on agent count, though is it's less of a number, right, because you'll see it's a directional indicator. And there's been limitations in putting a total agent count out. There's been limitations in putting a principal agent count number out there. As I've said before, you can have one principal agent that has dozens of team members that does a ton of production. You can also have a principal agent that's an individual contributor. The same is true for the disparity of individual agents on a total count perspective. Not all agents are created equal in terms of their production. So a number is kind of hard to peg a result on. We're kind of like we provide that number in terms of direction, but it's not the only factor. And it doesn't impact growth is what it comes down to. Operator: Your next question will come from Ryan McKeveny with Zelman. Ryan McKeveny: Nice job with the results. So one quick follow-up on the comment you were just talking about with the enterprise sales operations. I guess, over a longer period of time, should we expect that system or the operations there to also be applicable on the franchise side of things for franchise owners and within the franchise brands? And then the other question I have is on just the cost side of things. So obviously, good work on the synergies. And I may have missed, I know in the past, Scott, you've talked to this idea of 3% to 4% OpEx inflation is kind of the expectation. You also called out this quarter the variable expense side of the integrated services. So curious, when we step aside from the synergies for a moment, it's still -- is that 3% to 4% still what you're thinking about? And more generally on that, and sorry for the long-winded question, to the extent we either do have a significant recovery in existing home sales or they go meaningfully lower. I guess, how do you think about the OpEx cost structure between, let's call it, an upside and downside case? Does the 3% to 4% stay intact in an upside scenario? Or do you have to flex expenses higher and likewise in the downside, presumably you'd be looking for cost to remove. But yes, if you can speak to those, that would be great. I'm sorry again for the long question. Robert Reffkin: Great. So on the enterprise sales team, we're effectively thinking 6 months after the home platform launch, we launched the enterprise sales team. And so for the owned brokerage, we started this summer. And so in winter, I think we should be fully complete with the enterprise sales team. In Q1 of next year, we'll start the home platform launch for our franchise affiliate brands. And I would say 6 months later, you will see the same benefits and structure and offering that we provide the owned brand from an enterprise sales team perspective, we will provide to our franchise broker owners. Now just keep in mind, for them, they always have the option to or not to use something. They're completely different independent companies. But we believe that our enterprise solution will be of value to them. Scott Wahlers: Yes, Ryan, on your second question, look, I think the 3% to 4% framework is definitely the right way to think about it over time. We historically had everything in one segment. So kind of all the costs for these different business units were all in one OpEx line. Now that we have three segment presentation. You can see the OpEx broken out between integrated services and the franchise side. And so I just kind of called out some of those comments that you will see some uptick as we do better on the Franchise side -- on the Integrated services side of things, but it's really kind of like muted in an overall. I mean I think the biggest component of the business, the biggest component of the cost structure is on the brokerage side. And as we've said about before, as you grow that revenue, you just don't have a lot of fixed costs that grow with it or variable costs, I should say, to grow with it. A lot of those costs are somewhat fixed in nature. So of course, there are some costs that will grow in a variable nature with revenue, but they're really kind of on the small end of the spectrum. And so we still feel good about that rate over time. I mean I think the cost synergies, obviously, will lower that growth, right? You will have additional increases in cost, but inflation will always exist, but we'll continue to be looking for ways to offset that with efficiencies and some of the cost synergy work. We'll lower that down. So we feel we can stay within that percentage over time. Operator: Your next question will come from Alec Brondolo with Wells Fargo. Alec Brondolo: So interesting data points on kind of Compass coming soon penetration of new listings, 57% in recent weeks. I think you said 80% by the end of third quarter. We've started to see some Coldwell Banker coming soon on the websites and so on the portals. And so clearly, some progress being made on selling the coming soon listing modality into the new brands. How long do you anticipate it will take to get the Anywhere brands up to the level of coming soon penetration that you've been able to achieve at Compass? Robert Reffkin: I think in the spring market, i.e., the period before the spring market, January, February, March, I would expect the Anywhere brands to be at the same level as the Compass brands. Alec Brondolo: Yes. Got it. That's helpful. And I guess maybe a follow-up question. I think -- yes, I think your Compass Coming Soon is like 5% of Chicago listings more if you just look at listings that have been on the market for less than 30 days. And the traffic data point was interesting to me. I think you said that in Chicago, your web traffic was up 100% or something to the portal. Does the success in leveraging the coming soon listings to drive traffic to Compass.com change your thoughts at all around the portal strategy? I think clearly, you have the Redfin partnership. You've indicated a proclivity to partner. Does having more success driving direct traffic change your thoughts about wanting to compete more directly in the portal business as opposed to partner? Robert Reffkin: I think we've been consistent for the entire time. We want -- we -- let me ask the question this way. Is it unreasonable to expect that the company that has the most listings in the United States is the #1 place people search in the United States? I don't think so. I think the only reason that is not the case is because there are mandatory rules that are forcing listing agents to give up their data and their clients' data and give up their content to third-party platforms. And so as these rules become go away because we believe they are beyond anticompetitive. They are illegal, that the MLSs are a collection of our competitors who are telling us how we can and cannot compete. Again, I can't overstate that enough. They are a collection of our competitors. That's the MLS Board that runs the MLS that tells us how we can and cannot compete in marketing services. As those go down and down and down every month and year, they will. Agents will just put them on our sites and then people will search where the inventory is. We've done the research. Like what does it take to get -- to make a buyer want to search another site. They just need to know there's one listing in the exact market where they are looking. And if they believe there's one other listing, they will search that site. Now in terms of Redfin, they are a great, great partner in more ways than one. And I think there's room for, of course, many different portals. And we believe -- we're thankful that they provided competition to the dominant portal. And again, they're a great partner. Operator: This concludes our Q&A session. I will now turn the call back to Robert Reffkin for closing remarks. Robert Reffkin: Well, thank you, everyone, for joining our call today. I want to end by thanking all of our employees and all of our real estate professionals for their hard work. Together, we delivered a record second quarter, and I look forward to continuing our strong momentum in the second half of this year with you all. Thank you. And to everyone, have a great rest of your day. Operator: This concludes today's call. Thank you for joining. You may now disconnect. Before you buy stock in Compass, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Compass wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Compass (COMP) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Compass stock has delivered a very strong 3 year return while the valuation checks now lean toward the shares trading at a premium, which raises questions about how much upside is left from here. Over the last 3 years Compass has returned about 240%, which puts a lot of past share price pressure on the current valuation. Recent earnings momentum and new industry partnerships can support higher expectations, but any shift in housing market conditions or integration setbacks may weigh on what investors are willing to pay for the stock. The company scores 3 out of 6 on the broader valuation checks, which is a mixed picture rather than a clear bargain or clear overvaluation for Compass according to these tests. The issue now is whether Compass's current share price already reflects the recent good news and strong past returns, or if investors are still pricing the stock too cautiously. Compass delivered 49.8% returns over the last year. See how this stacks up to the rest of the Real Estate industry. The P/E ratio is a useful way to think about what investors are currently willing to pay for each dollar of Compass earnings. For a fast-evolving real estate platform like Compass, it helps frame how much optimism is already in the price. Compass trades on a P/E of about 139.2x, which is far above the wider real estate industry average of 17.7x and also above the peer group average of 92.1x. A fair P/E ratio for Compass, based on a model that factors in its growth profile, margins, size and risk, sits much lower at around 43.3x. That model heavily penalises the company for its risk profile, so the gap is better viewed as a warning flag that the stock screens very expensive on earnings rather than a precise target level. Despite the strong Q2 earnings beat and upbeat guidance described in recent news, the current P/E still points to investors paying a rich price for Compass earnings today. On the P/E multiple, Compass stock currently looks overvalued compared with both its industry and what the tailored fair ratio would suggest. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Compass valuation puzzle leaves off. They spell out which paths for Compass' future growth, margins and earnings would need to play out for the stock to be worth materially more or less than today's price, and sit on Simply Wall St's Community page. Each one links its number to a clear view on how growth, profitability and risk might change, which you can compare against new information over time. One of the top community narratives on Compass: 11% undervalued Read one of the top narratives on Compass Do you think there's more to the story for Compass? Head over to our Community to see what others are saying! Compass now screens as clearly overvalued on earnings, with an extreme gap between its current P/E and the tailored fair ratio that already bakes in a heavy risk penalty. That does not rule out further gains, but it means a lot of optimism is already embedded in the price. The key question from here is whether Compass can deliver on the earnings and margin progress that would make this elevated multiple feel sustainable, or whether any stumble in housing conditions or execution forces that valuation to settle back toward peers. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include COMP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

The New York Times Company NYT reported second-quarter 2026 adjusted earnings of 69 cents a share, which surpassed the Zacks Consensus Estimate of 67 cents by 2.99%. The bottom line increased 19% from the year-ago quarter's adjusted earnings of 58 cents per share. Quarterly revenues rose 11.2% year over year to $762.5 million and exceeded the Zacks Consensus Estimate of $748 million by 1.94%.The strong quarterly performance reflected continued momentum in the company's subscription-first strategy, supported by healthy digital subscriber growth, higher digital-only average revenue per user (ARPU), robust digital advertising demand and continued expansion across its diversified digital products. Total subscription revenues increased 11.7% year over year to $537.9 million in the reported quarter. Subscription revenues from digital-only products rose 16.4% to $407.9 million, benefiting from growth in digital-only subscribers and higher ARPU. Print subscription revenues declined 0.8% to $130 million due to lower single-copy and domestic home-delivery revenues.The company ended the quarter with approximately 13.35 million total subscribers, including 12.80 million digital-only subscribers. Digital-only subscribers increased by approximately 1.5 million from the prior-year quarter. During the second quarter, NYT added approximately 280,000 net digital-only subscribers, which moderated from 310,000 in the first quarter of 2026.Digital-only ARPU jumped 3.1% year over year to $9.94, primarily driven by subscribers transitioning from promotional pricing to higher-priced plans and price increases for certain tenured subscribers. Management expects third-quarter 2026 digital-only subscription revenues to increase 12-15% year over year, while total subscription revenues are projected to grow 9-11%. The New York Times Company price-consensus-eps-surprise-chart | The New York Times Company Quote Total advertising revenues increased 11.3% year over year to $149.1 million. Digital advertising revenues jumped 20.7% to $114 million, benefiting from strong marketer demand and continued growth in advertising supply. Print advertising revenues declined 11.1% year over year to $35.2 million.Affiliate, licensing and other revenues improved 7.1% year over year to $75.5 million, primarily driven by higher Wirecutter affiliate referral revenues, which benefited from a shift in the timing of a marketing promotion by one of the company's partners. For the third quarter, NYT expects digital advertising revenues to increase at a mid-to-high-teens rate, while total advertising revenues are projected to grow at a high-single- to low-double-digit pace. Affiliate, licensing and other revenues are expected to rise at a low-to-mid-single-digit rate. Adjusted operating costs increased 10% year over year to $607.2 million, mainly due to higher compensation and benefits expenses related to journalism, as well as increased marketing and promotion costs.Despite elevated investments, NYT delivered improved profitability. Adjusted operating profit rose 16.1% year over year to $155.3 million, while adjusted operating profit margin expanded 90 basis points to 20.4%.Management expects adjusted operating costs to increase 8-9% in the third quarter as it continues investing in journalism, product innovation and audience growth initiatives. The New York Times ended the quarter with cash and marketable securities of $1.22 billion, up from $1.17 billion at the end of 2025. The company remained debt-free, with no borrowings outstanding under its $400 million revolving credit facility.Net cash provided by operating activities totaled $286.5 million during the first six months of 2026, while free cash flow reached $265.7 million.During the quarter, NYT repurchased 473,691 Class A shares for approximately $35.4 million. As of July 31, 2026, approximately $239.7 million remained available under the company's share repurchase authorization.Capital expenditures were approximately $10 million in the quarter. Management reaffirmed expectations for 2026 capital expenditures of approximately $35-$45 million. The New York Times delivered another solid quarter, beating both earnings and revenue expectations as its subscription-led strategy continued to gain traction. Strong digital subscription growth, higher ARPU, robust digital advertising demand and healthy affiliate revenues helped drive double-digit revenue growth and margin expansion.With more than 13 million subscribers, a debt-free balance sheet, healthy cash generation and continued investment in journalism, video and digital products, NYT appears well-positioned to sustain long-term growth while executing against its subscription-first strategy.We note that shares of this Zacks Rank #3 (Hold) company have fallen 18.3% over the past three months compared with the industry’s decline of 16.1%. Compass, Inc. COMP, which provides an end-to-end technology platform for residential real estate in the United States, currently sports a Zacks Rank #1 (Strong Buy). COMP has a trailing four-quarter average earnings surprise of 37.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Compass’ current financial-year sales and EPS implies growth of 99.7% and 320%, respectively, from the year-ago period’s actuals.Affirm Holdings, Inc. AFRM, which operates a payment network, carries a Zacks Rank #2 (Buy). AFRM has a trailing four-quarter earnings surprise of 74.9%, on average. The Zacks Consensus Estimate for Affirm Holdings’ current financial-year revenues and EPS calls for growth of 30.6% and 720%, respectively, from the year-ago period’s reported numbers.Arista Networks, Inc. ANET, an industry leader in data-driven, client-to-cloud networking for large AI, data center, campus and routing environments, carries a Zacks Rank #2. ANET has a trailing four-quarter earnings surprise of 8.9%, on average.The Zacks Consensus Estimate for Arista Networks’ current financial-year sales and EPS suggests growth of 28.7% and 22.2%, respectively, from the year-ago period’s actuals. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The New York Times Company (NYT) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report Compass, Inc. (COMP) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Data from two positive Phase 3 trials demonstrated rapid onset of effect and durable benefit through at least 6 months, further validating COMP360’s potential to establish a new standard of care in TRD COMP360 has a highly differentiated clinical profile and is expected to be a blockbuster opportunity, if approved Rolling NDA submission and initial review underway and final submission expected to be completed in Q4 Commercial launch expected in first half of 2027 COMP360 expected to fit seamlessly into current treatment infrastructure Late-stage PTSD trial underway Strong cash position of $433 million at the end of second quarter, providing cash well beyond launch and into 2028 Compass management will host a conference call on August 5 at 8:00 am ET LONDON & NEW YORK, August 05, 2026--(BUSINESS WIRE)--Compass Pathways plc (Nasdaq: CMPS), a biotechnology company dedicated to unlocking urgently needed new treatment options in mental health care, today reported the second quarter and first half 2026 financial results and business highlights. "The first half of 2026 marked a defining period for Compass as we continued to build momentum across clinical, regulatory and commercial fronts in preparation for the potential approval and launch of COMP360," said Kabir Nath, Chief Executive Officer of Compass Pathways. "Over the past six months, we have strengthened – and further validated – the consistent evidence supporting COMP360’s transformative potential, expanded our commercial readiness capabilities, deepened engagement across the treatment ecosystem, and advanced our rolling submission in support of a regulatory filing in Q4. Our focus now is on disciplined execution - completing our filing activities and ensuring we are ready to deliver COMP360 to patients with TRD as quickly as possible, if approved. Our conviction in the potential of COMP360 has never been stronger. We are well positioned, confident in our ability to execute, and committed to bringing this transformative new treatment option to patients." Business Highlights COMP360’s Highly Differentiated Profile as Demonstrated in First Half 2026 Rapid onset, sustained durability and infrequent dosing: COMP360 is leading a profound shift in the development of new treatment options in mental health care – moving beyond daily or frequent administration toward an option that could potentially provide strong efficacy with just a few treatments a year that could be life changing for patients Across two highly statistically significant positive Phase 3 trials, COMP360 is the first classic psychedelic1 to consistently demonstrate rapid onset, sustained durability and reproducibility of effect in TRD, one of the most difficult psychiatric conditions in which to demonstrate efficacy Generally well tolerated and safe profile: COMP360 demonstrated a generally well-tolerated and safe profile, with the vast majority of treatment-emergent adverse events (TEAEs) being transient and predominantly occurring on day of dosing Serious adverse events (SAEs) were low overall across both trials A blockbuster opportunity: Robust data from late-stage trials involving more than 1,000 participants living with TRD supports COMP360’s potential to establish a new standard of care in TRD Approximately 4 million individuals in the US live with TRD4, with only one marketed medicine that has captured <3% market share COMP360 offers a highly differentiated clinical profile and is expected to be a blockbuster opportunity New evidence distinguishes COMP360 monitoring & support from psychotherapy: Peer-reviewed post-hoc analysis published in the Journal of Psychopharmacology, demonstrates that monitoring and support in COMP360 Phase 2b PTSD treatment sessions were minimal and non-directive with almost 80% of the administration session spent in silence, providing evidence that clinical outcomes are attributable to the COMP360 psilocybin treatment experience These findings are consistent with the standardized monitoring-and-support approach used across the COMP360 clinical development program, including the TRD trials Regulatory Path Towards Approval Final New Drug Application (NDA) submission on track for Q4: In April, the U.S. Food and Drug Administration (FDA) granted Compass NDA rolling submission and review request, based on strength of positive Phase 3 data Rolling submission and initial review are underway, with some modules of the NDA submitted and on track to complete all modules in Q4 Support and momentum: National Priority Voucher (NPV) awarded for COMP360, Compass’ proprietary formulation of synthetic psilocybin for TRD, which has the potential to accelerate filing review time to be completed within 1-2 months White House Executive Order on psychedelics treatments directs the Drug Enforcement Administration (DEA) to initiate and complete review of psychedelic treatment that has successfully completed Phase 3 trials so that rescheduling may proceed as quickly as possible Progressing Toward Potential Commercial Launch in First Half 2027 During the first half of 2026, Compass advanced key commercial readiness initiatives across organizational capabilities, strategic collaborations, policy engagement and infrastructure, positioning Compass for successful launch execution. Second half 2026 efforts are centered on operationalizing launch plans and ensuring launch readiness, with commercial launch expected in first half of 2027, subject to FDA approval and following Drug Enforcement Administration (DEA) rescheduling. Advanced launch readiness efforts: Highly experienced leadership team in place Continued proactive engagement with state-level stakeholders to facilitate timely post-approval rescheduling; currently, approximately 90% of the U.S. patient population live in states that intend to reschedule within 30 days after Federal DEA Expanded strategic collaborations, with the addition of Radial and Osmind in the first half of 2026. Compass’ collaboration portfolio continues to inform key elements of the COMP360 treatment ecosystem including patient care pathways, patient and provider experience, support staff training, site economics, real-world initiatives and treatment model optimization Delivery infrastructure readiness: COMP360 is expected to fit seamlessly across diverse healthcare settings within current infrastructure of more than 8,000 centers3 offering multi-hour treatments Treatment centers are growing rapidly, and existing centers are already scaling in anticipation of a COMP360 launch and additional multi-hour psychedelic treatments coming to market At approval, focus will be on site preparedness – including training, education, REMS certification, assistance with reimbursement and patient support COMP360 PTSD Program Compass continues to progress PTSD program, with late-stage trial underway. Affecting 13 million people in the U.S. each year, PTSD remains an underserved condition and underscores the urgent need to advance care for patients experiencing this debilitating condition. Financial highlights Research and development expenses were $29.2 million and $55.7 million for the three and six months ended June 30, 2026, respectively, compared with $30.3 million and $61.2 million during the same periods in 2025, respectively. The decrease was primarily driven by lower development expenses, reflecting reduced clinical trial costs as our Phase 3 program for COMP360 psilocybin therapy in TRD progresses toward completion, as well as reduced discovery program expenses following the termination of certain programs in connection with the reorganization that took place in the fourth quarter of 2024 and the related contract terminations in 2025. This decrease was partially offset by an increase in facilities and other expenses primarily due to an increase in external consulting fees and contractors. General and administrative expenses were $23.2 million and $39.6 million for the three and six months ended June 30, 2026, respectively, compared with $12.6 million and $31.3 million during the same periods in 2025, respectively. The increase was primarily due to increased costs to support our commercial preparedness activities. Net loss was $253.8 million, or $1.88 net loss per share, and $162.6 million, or $1.33 net loss per share, for the three and six months ended June 30, 2026, respectively, compared with of $38.4 million, or $0.41 net loss per share, and $56.3 million, or $0.62 net loss per share, during the same periods in 2025, respectively. The increase in net loss was primarily driven by non-cash fair value adjustments related to our warrants. The change in fair value was $205.6 million loss and $74.7 million loss, for the three and six months ended June 30, 2026, respectively, compared with $2.5 million loss and $16.9 million gain for the same periods in 2025, respectively. As the fair value of the warrants fluctuates with our share price, this adjustment can result in significant variability in our reported net income or net loss. Cash and cash equivalents were $433.3 million as of June 30, 2026, compared with $149.6 million as of December 31, 2025. Debt was $50.7 million as of June 30, 2026, compared with $31.6 million as of December 31, 2025. Financial Guidance The current cash position is expected to be sufficient to fund operating expenses and capital expenditure requirements into 2028. Conference Call The management team will host a conference call at 8:00 am ET (1:00 pm UK) on August 5, 2026. A live webcast of the call will be available on the Compass Pathways website at: https://events.q4inc.com/attendee/246696001 About Compass Pathways We believe mental health patients deserve the possibility of a better future. Compass Pathways plc (Nasdaq: CMPS) is a biotechnology company dedicated to unlocking urgently needed new treatment options in mental health care. Our initial focus is developing COMP360 psilocybin, a proprietary, investigational, synthetic psilocybin treatment under evaluation for treatment-resistant depression (TRD) and post-traumatic stress disorder (PTSD). COMP360 is a potentially first-in-class treatment and has Breakthrough Therapy designation from the U.S. Food and Drug Administration (FDA), as well as Innovative Licensing and Access Pathway (ILAP) designation in the UK for TRD. We are leading the world’s largest classic psychedelic clinical program in TRD, and building upon that robust foundation, we are executing a late-stage trial evaluating COMP360 for PTSD, another condition with high unmet need. Our goal is to advance treatments that move the field of psychiatry towards treatment options that offer rapid onset and sustained durability with infrequent dosing. Compass is headquartered in London, UK, with a U.S. office in New Jersey. We are driven by our purpose of unlocking pathways to be – opening futures filled with possibility. Together, we are on an ambitious journey toward enabling people living with mental health conditions to find clarity through self-discovery, because every journey needs a Compass. Forward-looking statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. In some cases, forward-looking statements can be identified by terminology such as "may", "might", "will", "could", "would", "should", "expect", "intend", "plan", "objective", "anticipate", "believe", "contemplate", "estimate", "predict", "potential", "continue" and "ongoing," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. Forward-looking statements include express or implied statements relating to, among other things, statements regarding our expectations regarding our financial guidance; our business strategy and goals; our expectations and projections about the company’s future cash needs and financial results; our expectations regarding the safety or efficacy of our investigational COMP360 psilocybin treatment, including as a treatment of TRD or PTSD; our plans and expectations regarding our clinical trials, including our phase 3 trials in TRD and our phase 2b/3 trial in PTSD; any implication that preliminary results will be predictive of full safety and efficacy data from our phase 3 program; our expectations regarding the timing of our rolling submission of a new drug application, or NDA, for COMP360 psilocybin treatment in TRD and the timing of the review by the Food and Drug Administration, or FDA, of such NDA, including potential acceleration due to the grant of rolling review and award of a National Priority Voucher for COMP360 psilocybin treatment in TRD; the potential for the pivotal phase 3 program in TRD to support regulatory filings and approvals on an accelerated basis or at all; our expected timing of our commercial launch for COMP360 psilocybin treatment in TRD, if approved by the FDA, including the timing and substance of decisions by the U.S. Drug Enforcement Administration, or the DEA, and states to reschedule COMP360 psilocybin treatment, if approved by FDA, which contains Schedule I controlled substances and must be rescheduled before commercializing COMP360 psilocybin in the U.S,; our efforts and our ability to obtain regulatory approval and adequate coverage and reimbursement; our ability to grow our organization and transition from a clinical-stage to a commercial-stage organization and effectively launch a commercial product, if regulatory approval is obtained; our expectations regarding market adoption and commercial potential for COMP360; and our expectations regarding the benefits of our investigational COMP360 psilocybin treatment, including as a treatment of TRD or PTSD. The forward-looking statements in this press release are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond Compass’s control and which could cause actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties, and other factors include, among others: uncertainties associated with risks related to clinical development which is a lengthy and expensive process with uncertain outcomes, and therefore our clinical trials may be delayed or terminated and may be more costly than expected; the full results and safety data from our Phase 3 clinical trials in TRD may not be consistent with the preliminary results to date; our need for additional funding to achieve our business goals and if we are unable to obtain this funding when needed and on acceptable terms, we could be forced to delay, limit or terminate our clinical trials; that the rolling review process and/or the National Priority Voucher pilot program may not actually lead to a faster FDA review or approval process; our efforts to obtain FDA approval, or approval from regulatory authorities in other jurisdictions for our investigational COMP360 psilocybin treatment on an accelerated basis, or at all, may be unsuccessful; the timing and substance of decisions by the Drug Enforcement Administration and states to reschedule COMP360 psilocybin treatment, if approved by FDA, which contains Schedule I controlled substances and must be rescheduled before commercializing COMP360 psilocybin in the U.S.; our efforts to commercialize and obtain coverage and reimbursement for our investigational COMP360 psilocybin treatment, if approved, may be unsuccessful; the risk that, if approved, our COMP360 psilocybin treatment may not achieve an adequate level of acceptance by payors, health technology assessment bodies, healthcare professionals, patients and the medical community at large and market adoption may be limited; the risk that our strategic collaborations will not continue or will not be successful; and our ability to retain key personnel; and those risks and uncertainties described under the heading "Risk Factors" in Compass’s most recent annual report on Form 10-K or quarterly report on Form 10-Q, and in other reports we have filed with the U.S. Securities and Exchange Commission ("SEC"), which are available on the SEC’s website at www.sec.gov. Except as required by law, Compass disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise. These forward-looking statements are based on Compass’s current expectations and speak only as of the date hereof. References For the definition of classic psychedelic, see Vollenweider, F.X. and Smallridge, J.W., 2022. Classic psychedelic drugs: update on biological mechanisms. Pharmacopsychiatry, 55(03), pp.121-138 Montgomery-Åsberg Depression Rating Scale www.spravatohcp.com/find-treatment-center – data pulled 07/31/2026 Wing V, et al. Poster S97 Contemporary Estimate of the National Prevalence of Treatment-Resistant Depression in the United States. Presented at ADAA 2026 Enquiries Media: Dana Sultan-Rothman, [email protected] Investors: Stephen Schultz, [email protected], +1 401 290 7324 View source version on businesswire.com: https://www.businesswire.com/news/home/20260805927238/en/ Contacts Enquiries Media: Dana Sultan-Rothman, [email protected] Investors: Stephen Schultz, [email protected], +1 401 290 7324

Interested in Compass Pathways PLC Sponsored ADR? Here are five stocks we like better. Compass Pathways remains on track to file for FDA approval of COMP360 for treatment-resistant depression in Q4 2026, using a rolling NDA submission after positive Phase III results and six-month durability data. The company is targeting a potential commercial launch in the first half of 2027, contingent on FDA approval and federal and state DEA rescheduling. Commercial preparations include hiring sales leadership, recruiting a field force, expanding partnerships and engaging payers. Compass reported $433 million in cash as of June 30, which management expects to fund operations through launch and into 2028, while its Phase III PTSD trial and additional investigator-initiated studies continue. These 3 Psychedelic Stocks Activated After Trump's Executive Order Compass Pathways (NASDAQ:CMPS) said it remains on track to complete its new drug application, or NDA, filing for COMP360 in treatment-resistant depression in the fourth quarter of 2026, following positive Phase III results and six-month durability data from two trials. Chief Executive Officer Kabir Nath said the company believes the clinical and regulatory profile of COMP360 has been “largely de-risked” after the studies met their primary endpoints with high statistical significance. He said the program has shown rapid onset, durability through six months and what the company characterized as a generally well-tolerated safety profile. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control This 4/20, Wall Street Is Betting on More Than Marijuana COMPASS is using a rolling NDA submission process, under which the Food and Drug Administration has begun reviewing modules already submitted, Nath said. The company is seeking approval for COMP360 in treatment-resistant depression, or TRD, and continues to expect its final filing in the fourth quarter. Management said it does not expect recently finalized FDA guidance on psychedelic drug development to affect the ongoing review of COMP360. Responding to a question about the guidance’s discussion of 12-month blinded durability data, Nath said COMPASS had maintained dialogue with the FDA throughout the program and that the complementary design of its two Phase III studies aligns with the guidance. → 3 Drone Stocks That Should Soar After the Summer Slump Magic Mushrooms, Hard Cash: Compass Pathways’ Trial Win, Fast Raise “We honestly do not think that these guidelines are going to impact the regulatory process that’s already underway for us,” Nath said. The company said it is working toward potential accelerated approval and is preparing for a first-pass approval. Nath said the company has received questions on submitted portions of the NDA and is responding quickly, adding that discussions on labeling and a Risk Evaluation and Mitigation Strategy, or REMS, typically occur later in the review process. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Chief Commercial Officer Lori Englebert said COMPASS is accelerating its eight-factor analysis for submission to the FDA’s controlled-substances division and is seeking additional clarity from the Drug Enforcement Administration on rescheduling. She said the company expects the DEA to reschedule within its customary 90-day period, though the exact timing remains fluid. COMPASS expects a potential launch in the first half of 2027, although management said the timing will depend on FDA review, federal DEA rescheduling and state-level rescheduling actions. Englebert said COMPASS has completed hiring its commercial leadership team and has begun recruiting for a sales force. She said her direct reports include executives from companies including Johnson & Johnson, Gilead, Otsuka and Axsome, and collectively have led more than 70 product launches. The company has also expanded strategic collaborations with Radial and Osmind, bringing its total number of collaborations to eight. Englebert said the partnerships are intended to support site and patient experience as COMPASS prepares for commercialization. COMPASS plans to use existing interventional psychiatry treatment centers, which support in-office treatments requiring multi-hour monitoring. Englebert said there are more than 8,000 such sites in the United States, including centers that provide treatments such as Spravato, transcranial magnetic stimulation and electroconvulsive therapy. The company plans to deploy a field team across those sites and also target referring physicians who treat large numbers of patients with TRD. Management said COMP360’s proposed infrequent dosing could potentially expand access for patients who live farther from treatment centers. On reimbursement, Englebert said the company’s market-access team has been engaging with payers and has received positive feedback regarding the burden associated with treatment-resistant depression. At launch, COMPASS intends to have a field reimbursement team in place to help treatment sites navigate coding and reimbursement processes. Management said it will determine potential rebate arrangements and payer negotiations closer to launch as it incorporates recently released data into COMP360’s value proposition. Englebert said COMPASS views site preparation as consisting of both training and education. The company is participating in grants to third-party organizations that train sites in psychedelic treatments, and said more than 1,000 people have already received psychedelic-focused training. Training specific to COMP360 and the final monitoring requirements will follow final labeling, she said. Sites will also require REMS-related training and certification once the FDA approves the product and finalizes the REMS program. Management said it expects to use any period between FDA approval and DEA rescheduling to help sites prepare for product administration. Englebert said the company expects a minimum six-hour monitoring requirement based on the clinical trial protocol and anticipates that the individual monitoring patients could be broadly defined as a healthcare provider, subject to the final REMS. Nath also discussed a post-hoc analysis showing that 80% of administration sessions in the company’s Phase IIb and PTSD work were conducted in silence. He said the finding supports the company’s view that psilocybin is an “inner-directed” experience and could broaden the range of personnel who may be able to monitor patients in the future. While the company’s near-term priority is completing the TRD submission, securing approval and launching COMP360, Nath said COMPASS is continuing its Phase III PTSD study. The trial is underway and is designed to enroll 300 patients across three arms, including a number of Veterans Affairs sites. Management said military- or VA-related participants will be capped at no more than 15% of the study population. COMPASS also said it is restarting its investigator-initiated study program, with studies beginning in areas including obsessive-compulsive disorder. Nath cited alcohol use disorder and other psychiatric conditions as potential future opportunities but said the company remains focused on the TRD launch process in the near term. The company reported $433 million in cash as of June 30, which Nath said is expected to fund operations through launch and into 2028. Compass Pathways (NASDAQ: CMPS) is a clinical-stage biotechnology company focused on the development and commercialization of psilocybin therapy for mental health disorders. Founded in 2016 and headquartered in London with additional offices in the United States, Compass Pathways is pioneering the use of synthetic psilocybin combined with psychotherapy to address treatment-resistant depression. The company’s flagship program is a Phase IIb clinical trial evaluating COMP360, its proprietary psilocybin formulation, which has received Breakthrough Therapy designation from the U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Compass Pathways Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered record revenue of $4.3 billion and record adjusted EBITDA of $363 million, driven by outperformance in the high-end luxury market which remains less sensitive to interest rate fluctuations. Achieved 1,000 basis points of market outperformance in brokerage gross transaction volume, attributed to the 'wealth effect' from a strong stock market and the AI-driven economic boom in the Bay Area. Actioned $300 million in net cost synergies five months ahead of schedule, with expectations to exceed the original $500 million three-year target due to rapid integration of the Anywhere acquisition. Launched a '3-phase marketing strategy' where 57% of new Compass listings now start as 'Coming Soon,' utilizing price discovery and private exclusives to provide sellers with better market leverage. Initiated a strategic offensive against the 'anticompetitive' nature of Multiple Listing Services (MLSs), arguing that these entities act as monopolies that restrict how agents and sellers market properties. Deployed forward-deployed engineers to integrate AI into legal, growth, and transaction workflows, already identifying $8 million in cost savings and avoidance. Reported that 50% to 60% of all new technology code is now produced by AI, significantly accelerating the shipment of platform features and operational tools. Expects to reach a net debt to adjusted EBITDA ratio in the 2s by year-end 2026, supported by anticipated positive free cash flow in the second half of the year. Projects that 80% of Compass Brokerage listings will launch as 'Coming Soon' by the end of Q3 2026, with the strategy expanding to all acquired brands by the 2027 spring market. Plans to migrate all title and escrow operations to a single unified production platform by 2027 to unlock incremental margins and scale 'one-click title' tools. Aims to redeem $500 million of 9.75% notes in Q2 2027, utilizing a growing cash position currently invested in short-term treasuries yielding mid-3%. Anticipates utilizing $1.8 billion in Net Operating Losses (NOLs) to shield approximately $470 million in future cash taxes as the company generates taxable income. Shifted recruiting strategy for acquired Anywhere brands toward higher-productivity agents, resulting in lower total headcount adds but improved per-agent output. Identified a $54 million cash liability for the NAR class action settlement, which is now expected to be paid later in 2026 rather than Q2. Noted that 72% of agent separations involved individuals with little to no production, suggesting that headline attrition figures do not reflect a loss of core revenue-generating talent. Increased full-year non-GAAP operating expense guidance by $50 million, primarily due to a $35 million brokerage acquisition in July and higher variable compensation from over-performance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects 80% of Compass Brokerage listings to use the 'Coming Soon' phase by the end of Q3., viewing it as a essential price-testing tool similar to an IPO roadshow. The strategy is seeing high traction because it offers sellers price discovery without the negative history of 'days on market' or public price drops. While the $500 million target remains official, management noted they are pacing ahead and will not stop looking for efficiencies once the goal is reached. Future synergies will move from 'low-hanging fruit' to deeper operational and system integrations, which may take longer to realize than initial actions. In Chicago, where 'Coming Soon' inventory is highest, Compass.com sessions grew 111% year-over-year, significantly outpacing the national average. Management believes that as restrictive MLS rules fade, consumers will naturally migrate to the platforms that hold the most exclusive and early-stage inventory. The enterprise sales team will be fully deployed across owned brands by winter, with a similar solution offered to franchise owners starting in 2027. Management emphasized that while franchise owners are independent, the enterprise recruiting model provides a value proposition they can opt into.