Compass (COMP) Stock Jumps 9% on Merger Approval and Raised Q4 Guidance

TLDR

• Compass COMP stock rose 9.3% after raising Q4 revenue guidance to high end of $1.59B-$1.69B range
• Shareholders approved Anywhere Real Estate merger with 99% of Compass votes and 72.4% of Anywhere votes
• Company announced $750 million convertible notes offering due 2031 to fund merger
• Compass added 800 agents in Q4 and adjusted EBITDA expected at or above $35M-$49M range
• Merger closes January 9, 2026 and will nearly double Compass size

Compass COMP stock climbed 9.3% to $11.84 on January 7 after the company raised fourth-quarter guidance and secured shareholder approval for its Anywhere Real Estate acquisition.

Compass, Inc., COMP

The real estate brokerage said fourth-quarter revenue will hit the high end of its $1.59 billion to $1.69 billion guidance range. Adjusted EBITDA is expected to meet or exceed the top of the $35 million to $49 million range.

Compass COMP stock has now gained 85.8% over the past year. The company’s market cap stands at $6.7 billion.

Merger Gets Overwhelming Support

Shareholders from both companies voted in favor of the deal. About 99% of Compass stockholders approved issuing Class A shares to Anywhere stockholders.

On the Anywhere side, 72.4% of stockholders voted to adopt the merger agreement. Anywhere Real Estate stock jumped 17.8% to $17 in after-market trading, bringing its one-year gain to 339.2%.

The merger is set to close on January 9, 2026. The transaction will nearly double Compass’s size and strengthen its position as the largest brokerage by transaction volume.

Compass also announced a $750 million convertible senior notes offering due in 2031. The company will use proceeds for general corporate purposes and to help fund the Anywhere acquisition.

The convertible notes represent more than 10% of Compass’s current market cap. Investors typically view debt offerings cautiously, but the market focused on the improved Q4 guidance instead.

Operational Growth Continues

Compass added 800 agents during the fourth quarter. This expansion shows the brokerage continues to grow despite challenging market conditions.

The company delivered a strong 2025 even as the housing market faced headwinds. Recent technology investments appear to be driving results.

Trading volume on January 7 was lighter than usual at 551 shares compared to the 13 million average daily volume. The stock’s 52-week range spans from $5.10 to $12.58, with shares reaching the upper end after the announcements.

Compass’s gross margin currently sits at 10.62%. The company operates as the largest real estate brokerage based on transaction volume.

The merger is expected to close on January 9, 2026, with Compass using funds from the convertible notes offering to help finance the transaction.