- Compass achieved its strongest quarterly results in history with 10 records, including all-time high revenue, adjusted EBITDA, net income, free cash flow, and market share.
- Revenue increased by 21.1% YoY, total transactions up 20.9%, organic transactions up 6.3%, outperforming the market which declined by 0.9%.
- Organic growth outpaced the market for 17 consecutive quarters, demonstrating resilience in a challenging housing environment.
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- Adjusted EBITDA to interest expense ratio increased to 3.7x, up nearly 30% from 2.9x a year ago.
- FFO as adjusted for the quarter was $0.36 per share.
- FFO as adjusted increased by 12% over last year and 8% year-to-date.
- Liquidity remains strong with approximately $800 million total liquidity including $118 million in cash.
- Net debt to annualized EBITDA was 5.5x in the second quarter.
- Same-property net operating income (NOI) increased by 7.4% for the quarter and 5.6% year-to-date.
- Same-property NOI growth was driven by higher rental revenue, net recoveries, and year-end CAM reconciliation billings.
- Same-property occupancy increased to 96.7%, up 10 basis points from the prior quarter.
- Shop occupancy rate reached a record high of 92.5%, up 270 basis points over the prior year.
- Year-to-date asset sales totaled $66 million at a blended cap rate of 4.9%.
- Business loans grew over $110 million in Q2 and over $370 million or 15% year-over-year.
- Common equity Tier 1 ratio increased to 11.25% and total capital ratio to 15.8%, indicating strong capital levels.
- Core cash operating expenses were $59.9 million, primarily due to hiring production staff.
- Core deposits increased by $1.2 billion year-over-year, with deposit teams hired since 2023 growing portfolios to approximately $2.2 billion.
- Core EPS was $0.64 per share, up 12% linked-quarter and 49% year-over-year.
- Core pretax pre-provision income was $49 million in Q2 2025 compared to $28 million a year ago, translating into a core ROA of 85 basis points.
- Cost of total deposits was 2.09% in Q2, and NIM increased for the fifth consecutive quarter, approaching 3%.
- Credit loss provision was $9.2 million, with allowance to loans increasing to 86 basis points.
- Loan originations including new lines of credit increased to $450 million for the quarter with a weighted average rate of approximately 7%.
- Loan pipelines stand at $1.2 billion with a weighted average rate of approximately 6.85%.
- Non-brokered deposits increased by approximately $210 million quarter-over-quarter.
- Noninterest income was $11.6 million, reflecting increased loan swap income.
- Reported NIM increased to 2.98%, with an adjusted NIM of 2.95% excluding prepayment fees and purchase accounting.
- Asset quality improved with net charge-offs declining and total NPAs to assets ratio at 0.45%, the lowest since September 2024.
- Capital markets revenue rebounded sharply to $24 million, up $14 million from the prior quarter, exceeding guidance.
- Core deposits grew $410 million or 8% annualized year-to-date, supporting strong funding base.
- Efficiency ratio improved to 55.8%, the lowest in four years, reflecting disciplined expense management.
- Loan growth accelerated by $286 million or 17% annualized, net of planned runoff from M2 equipment loans.
- Net interest income increased by $3 million or 18% annualized, driven by net interest margin (NIM) expansion and strong loan growth.
- Record quarterly net income of $37 million and earnings per share of $2.17, representing 26% growth compared to the prior quarter.
- Wealth management revenue grew 8% linked quarter to over $5 million, with year-over-year growth of 15% annualized.
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