NEW YORK, NY - November 10, 2022 - Compass, Inc. (NYSE: COMP), a leading tech-enabled real estate brokerage, today announced its financial results for the quarter ended September 30, 2022.

“Against a backdrop of significant challenges for the housing industry, Compass continued to make progress in a number of important areas during the third quarter,” said Robert Reffkin, Chief Executive Officer of Compass.“We continued to successfully roll out our enhanced national end-to-end workflow platform which we believe allows our agents to be the most productive in the industry and deliver their buyers and sellers a best-in-class experience. Over the longer term, I believe our platform offers important differentiation in the marketplace and it is a conduit to drive incremental revenue lift and cost efficiency.”

Reffkin continued “Importantly, in line with our major cost savings program announced in August, we have achieved significant cost reductions in our technology, engineering and general and administrative expenses. Actions taken in the third quarter and in progress are expected to deliver targeted non-GAAP operating expenses after commissions and other related expenses of between $1.05 billion and $1.15 billion exiting 2022.”

Reffkin added, “As we look ahead, we believe the housing market will remain challenged during 2023 before returning to stability and growth in the future. The Compass team remains laser focused on providing our agents with technology, workflow tools, and marketing support to be successful in the market. At the same time, we are driving to implement fundamental cost productivity measures that will deliver profitability in the future.”

3Q22 Financial Highlights:

• Revenue decreased by 14% year-over-year to$1.49 billion as transactions declined 12%.
• GAAP Net Loss was $154 million, compared to a loss of $100 million in 3Q21. The net loss includes non-cash stock-based compensation expenses of $50 million, depreciation and amortization of $21 million, restructuring charges due to the cost saving actions of $29 million, and litigation charges of $11 million.
• Cash and cash equivalents: Compass’ net change in cash and cash equivalents from the end of 2Q22 to the end of 3Q22 was a decrease of $76 million from $431 million to $355 million. In addition to the $355 million in cash and cash equivalents as of the end of 3Q22, the Company had approximately $300 million of availability under its revolver.
• Adjusted EBITDA[^1] was $(42) million, compared to $12 million in 3Q21.

3Q22 Operational Highlights:

• Platform: Compass launched the key remaining functionality that allows the vast majority of Compass agents to guide their clients from first contact to close all in one place, with a single log in and without ever leaving the Compass platform.
• National market share: Increased to 4.6% over the last twelve months (“LTM”) up from 4.3% LTM in 3Q21. Note these national market share numbers are calculated using revised average (mean) sales prices published by the National Association of Realtors (“NAR”).
• Agents: Average Number of Principal Agents was 13,314, an increase of 335 from 2Q22 and an increase of 15% from 3Q21. We continued to experience high levels of retention of our agents with greater than 90%.
• Transactions: Compass agents closed 54,606 Total Transactions, down 12% year-over-year, compared to a 21% decline in transactions for the entire residential real estate market[^2].

Gross Transaction Value (“GTV”): GTV of $57.3 billion,down from $69.1 billion in 3Q21.

Additional information can be found in the Company’s 3Q22 Earnings Presentation on the Investor Relations section of the Compass website at https://investors.compass.com.

4Q22 Outlook:

• Revenue of $1.15 billion to $1.30 billion
• Adjusted EBITDA of negative $50 million to negative $80 million

FY22 Outlook:

• Revenue of $6.05 billion to $6.20 billion
• Adjusted EBITDA of negative $185 million to negative $215 million

We have not reconciled our guidance for Adjusted EBITDA to GAAP Net Loss because certain expenses excluded from GAAP Net Loss when calculating Adjusted EBITDA cannot be reasonably calculated or predicted at this time. Additionally, we have not reconciled our guidance for non-GAAP operating expense after commissions and other related expense because certain expenses excluded from GAAP operating expenses cannot be reasonably calculated or predicted at this time. Accordingly, reconciliations are not available without unreasonable effort.

[^1] A reconciliation of GAAP to Non-GAAP measures can be found within the financial statement tables included within this press release.

[^2] We calculate Total Transactions by taking the sum of all transactions closed on the Compass platform in which our agent represents the buyer or seller in the purchase or sale of a home (excluding rental transactions). We include a single transaction twice when one or more Compass agents represent both the buyer and seller in any given transaction. The 21% decline is based on NAR data as of September 30, 2022.

Conference Call Information

Management will conduct a conference call to discuss the third quarter results as well as outlook at 5:00 p.m. ET on November 10th, 2022. The conference call will be accessible via the Internet on the Compass Investor Relations website https://investors.compass.com. You can also access the audio webcast via the following link: Compass Inc. 3Q22 Earnings Conference Call.

An audio recording of the conference call will be available for replay shortly after the call's completion. To access the replay, visit the Events and Presentations section on the Compass Investor Relations website at https://investors.compass.com.

Safe Harbor Statement

This press release includes forward-looking statements, which are statements other than statements of historical facts, and statements in the future tense. These statements include, but are not limited to, statements regarding our future performance, including expected financial results for the fourth quarter and full year of 2022, planned operating expense and cash flow levels for 2023, and our expectations for operational achievements. Forward-looking statements are based upon various estimates and assumptions, as well as information known to us as of the date of this press release, and are subject to risks and uncertainties, including but not limited to: general macroeconomic conditions in the U.S. and globally (e.g., inflation), geopolitical events (e.g., conflict in Ukraine), the health of the U.S. real estate industry, and risks generally incident to the ownership of residential real estate, including seasonal and cyclical trends (e.g., increases in mortgage interest rates, continued limited inventory, slowed consumer demand, reduced home affordability and declines in price appreciation and home prices); our ability to continuously innovate, improve and expand our platform; our ability to attract new agents and retain current agents or increase agents’ utilization of our platform; our ability to expand our brokerage and adjacent services businesses; our ability to offer additional adjacent services; our ability to grow revenue from adjacent services at our anticipated rate; our ability to achieve expected benefits from our mortgage business and our joint venture, OriginPoint; our rapid growth and rate of growth; our net losses and ability to achieve or sustain profitability in the future; any future impact of the ongoing COVID-19 pandemic on our business; our ability to compete successfully in the markets in which we operate; the effect of monetary policies of the federal government and its agencies; any decreases in our gross commission income or the percentage of commissions that we collect; fluctuation of our quarterly results and other operating metrics; our ability to successfully complete acquisitions and integrate target companies; the effect of the claims, lawsuits, government investigations and other proceedings that we are subject to from time to time; our ability to protect our intellectual property rights; and other general market, political, economic, and business conditions. Additionally, these forward-looking statements, particularly our expected financial results, involve risks, uncertainties and assumptions, including those related to general macroeconomic conditions, mortgage interest rates and inflationary pressure on our clients’ spending decisions. Significant variation from the assumptions underlying our forward-looking statements could cause our actual results to vary, and the impact could be significant. Accordingly, actual results could differ materially from those predicted or implied or such uncertainties could cause adverse effects on our results. ​ Reported results should not be considered as an indication of future performance. More information about factors that could adversely affect our results of operations, financial condition and prospects, or that could cause actual results to differ from those expressed or implied in forward-looking statements is included under the captions “Risk Factors”, “Legal Proceedings” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent annual report on Form 10-K and our subsequent quarterly reports on Form 10-Q, copies of which are available on the Investor Relations page of our website athttps://investors.compass.com/ and on the SEC website atwww.sec.gov. ​ ​ All information herein speaks as of the date hereof and all forward-looking statements contained herein are based on information available to us as of the date hereof, and we do not assume any obligation to update these statements as a result of new information or future events. Undue reliance should not be placed on the forward-looking statements in this press release. ​

Non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared in accordance with GAAP, we present Adjusted EBITDA, which is a non-GAAP financial measure, in this press release. We use Adjusted EBITDA in conjunction with GAAP measures as part of our overall assessment of our performance, including the preparation of our annual operating budget and quarterly forecasts, to evaluate the effectiveness of our business strategies and to communicate with our board of directors concerning our financial performance. We believe Adjusted EBITDA is also helpful to investors, analysts and other interested parties because they can assist in providing a more consistent and comparable overview of our operations across our historical financial periods. Adjusted EBITDAhas limitations as an analytical tool, therefore you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss attributable to Compass, Inc., operating cash flows and our other GAAP measures. In evaluating Adjusted EBITDA, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments reflected in this press release. Our presentation of Adjusted EBITDA, should not be construed to imply that our future results will be unaffected by the types of items excluded from the calculation of Adjusted EBITDA. Adjusted EBITDA is not presented in accordance with GAAP and the use of this term varies from others in our industry. Reconciliation of this non-GAAP measure has been provided in the financial statement tables included in this press release and investors are encouraged to review this reconciliation.