Compass, Inc. — Call Transcript 2026

Ladies and gentlemen, thank you for joining us, and welcome to Compass, Inc. 2026 Q1 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw that question, press star one again. I would now like to turn the call over to Soham Bhonsle, Head of Investor Relations. Please go ahead. Thank you very much, operator, and good afternoon, everybody, and thank you for joining the Compass first 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. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our first quarter 2026 earnings release posted on our Investor Relations website. Additionally, note that since the financial results from the Anywhere transaction are not included in the prior year period or the first eight days of Q1 2026, the current year and prior year results are not comparable. We have provided supplemental information included in the Form 8-K filed today that presents our revenue and commissions expenses and key business metrics on a pro forma basis as though the businesses were combined from the beginning of 2025. We believe this additional information will be useful to investors to assist in comparing the periods prior and subsequent to the closing of the Anywhere transaction. We will also be making 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 second 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. You can find more information about risks, uncertainties, and other factors that could affect our results in our most recent annual report on Form 10-K filed with the SEC and available on our Investor Relations website. You should not place undue reliance on any forward-looking statements. All information in this presentation is as of today's date, May 5th. We expressly disclaim any obligation to update this information. I will now turn the call over to Robert Reffkin. Robert? Good afternoon, and thank you for joining us for our first quarter conference call. Before I go over our strong Q1 results, I would like to provide an update on our cost synergy targets and highlight a few early wins since we closed the Anywhere transaction. First, on our cost synergies. On our Q4 earnings call in February, we shared our target of $250 million in cost synergies to be actioned by the end of year one and $400 million in net cost synergies over three years. I am very pleased to share that we are increasing our target to $300 million in cost synergies to be actioned by the end of year one and $500 million in net cost synergies over three years, of which $420 million is expected to be realized through the P&L and $80 million is expected to be realized as a CapEx synergy. We have now actioned over $250 million in cost synergies as of April 1st, which is only 82 days since we closed the Anywhere transaction. The acceleration results in an increase in our 2026 in-year realized cost synergies from approximately $100 million-$200 million. We previously expected $40 million of the $100 million of our cost synergies to be realized through the P&L as an OpEx synergy, with the remainder being realized as a CapEx synergy. Based on the increased realization of the target, we now expect about $130 million to be realized through the P&L and $70 million expected to be realized as a CapEx synergy. This reflects a roughly $90 million increase in our in-year realized OpEx synergy expectations and a $10 million increase in our in-year CapEx synergy expectations compared to our prior expectations due to the larger in-year realized target of $200 million. Shifting now to our early Q1 wins that represent the growth and success in our brokerage brands. Sotheby's International Realty sold the most expensive home in the history of the world at $350 million, while Coldwell Banker sold the most expensive home in the history of Miami-Dade County at $170 million. Both sales reinforced the combined company's authority in the luxury segment. Corcoran Sunshine, which is Corcoran's new development business, posted its strongest contract volume quarter in over 10 years with $1.5 billion in contracts signed in Q1. ERA executed its largest franchise sale transaction in 15 years. Better Homes and Gardens executed its largest franchise M&A transaction in the entire history of the brand. Christie's International Real Estate signed on eight new franchise agreements in the quarter. All for new markets, which reflects the largest quarterly expansion in the history of the brand. Century 21 recently executed its largest franchise sale transaction in 10 years, with our stance on home seller choice being a key reason for the broker owner, Greg Hague, choosing to join. In fact, Greg will be coaching our real estate professionals across our brands on home sale strategy given his impressive track record, which includes building a home sale strategy consulting and training company that Inc. 5000 ranked among the top 250 fastest growing privately held firms in America. Compass recruited more principal agents in Q1 than any prior Q1 in our history. We are now also scaling Compass's most effective recruiting strategies across all brands, starting with demand generation and brand specific recruiting websites that outline how our technology platform helps agents grow their business. Finally, Coldwell Banker's GCI retention rate in its top two quartile of agents, representing 82% of its total GCI over the trailing 12-month period, hit a 10-year high at 94.6% retention rate in Q1. In our title and escrow business, we are consolidating our operations onto a single technology platform, which we expect will unlock sizable long-term savings through centralization once completed. In our mortgage business, GRA, which was Anywhere's JV with Guaranteed Rate, achieved its highest attach quarter in two and a half years, while OriginPoint, which is Compass's JV, achieved its highest attach rate ever in Q1, and delivered its best quarter of profitability. Going forward, we see a significant opportunity to continue to improve both our attach rate and profitability in our mortgage JVs. Lastly, we are moving forward with our digital mortgage partnership with Rocket Mortgage, with Rocket's pre-qualification experience now embedded across all listings on compass.com. Our data and analytics team, led by Dave Crosby and supported by our chief economist Mike Simonsen, is executing a radical simplification of our significantly expanded data state. Since closing the Anywhere transaction, we've identified over 6,000 legacy reports and have already deprecated over half of them. We're on a disciplined path to standardization across the entire company to get to approximately 100 high-fidelity reports. By minimizing the number of reports, it will allow our data team to focus on critical integration tasks, and the development of proprietary insights by Q4 of this year, which we believe will provide our real estate professionals, title agents, and mortgage officers the ability to win more business in the marketplace. Now turning to our Q1 2026 pro forma results. Pro forma transactions were up 2.6% year-over-year compared to the market, which was flat year-over-year. This means that for 20 consecutive quarters, our brokerage business has outperformed the market on an organic basis. Pro forma brokerage GTV was up 7.3% year-over-year compared to the market that was up 1.5%. Pro forma total agent adds on a gross basis were 3,503, which was higher than Q4 2025 levels. Pro forma total agent retention in our brokerage business was 94%, flat compared to Q4 2025. Excluding agents with zero GCI in the last 12 months, pro forma agent retention would have been 97% in Q1. Excluding agents with $20,000 or less in GCI in the last 12 months, which on average equates to less than two transactions at our price points, pro forma agent retention would have been over 98% in Q1. Pro forma productivity per agent, which we measure as GTV per agent, was up nicely year-over-year. Going forward, our brokerage recruiting and retention strategy as a combined company will be focused on productive agents as well as up-and-coming agents. We expect this to lead to a healthy level of agent adds, combined with improving agent retention and agent productivity growth. In franchise, pro forma GTV was up 4.6% year-over-year compared to housing market volumes that were up 1.5%, reflecting 310 basis points of outperformance. Our Sotheby's International Realty and Corcoran brands continued to outperform the company average, while total franchise sales experienced a meaningful increase year-over-year. Pro forma integrated services revenue grew 11% year-over-year, with title and T&E revenue being the primary driver. The quarter benefited from strong refinance activity, with pro forma refi transactions up 100% year-over-year, while pro forma purchase transactions grew 4% year-over-year. Purchase transaction growth outperformed overall housing market growth at 0.2% year-over-year. These strong results would not have been possible without each and every member of our team. I want to thank the entire team for their focus and hard work in a quarter of significant change for our company. Now, let me provide a few thoughts on our partnership with Rocket, Redfin, and the industry's shifting stance on phased marketing. First, we are pleased to see several other portals and brokerages following our lead on home seller choice and phased marketing. Sellers want more choices, not less choices. As Coming Soons are provided as an option to more sellers, they will realize they have more options and more choices on how to market a home. We as a company have consistently provided sellers with more options than our other competing brokerage firms. We believe that will help our real estate professionals continue to outperform the market and win listings with their sellers. Second, while we see others in the marketplace attempting to recreate an offering similar to ours, for several reasons, we are confident that the Compass 3-phase marketing option with the Coming Soon phase also being on Redfin is the best option for phased marketing in real estate. Here are a few reasons why. First, unlike the other option in the marketplace, all of our Coming Soon buyer inquiries are always sent directly to the listing agent, the person that knows the property the best, as opposed to when you click the contact tour or schedule appointment contact agent button, it being rediverted to a third-party agent who doesn't know the listing the best. Second, unlike the other major portals Coming Soon option, in our case, we always allow the listing agent to do showings, and we always allow open houses. That is not the case for the alternative options. Third, real estate is a local business, with our depth of inventory in major markets, we believe we'll be able to send a strong signal to consumers to search compass.com and our other brokerage websites. Of note, compass.com was the fastest-growing real estate website in Q1, with 38% year-over-year growth in monthly average users, and is now the sixth largest audience in real estate per Similarweb. Fourth, our agents can offer their buyers 1% off the mortgage rate through Rocket, a significant advantage, particularly in the current environment. Our advantage is being borne out in the numbers. In the Chicago metro area, which is the third largest housing market in the country by unit count, we have launched roughly 1,000 Coming Soons since we announced the partnership. This compares to virtually no unique Coming Soon inventory in the Chicago metro area that we can observe on the other portals as of last week. To date, we've sent approximately 3,000 buyer inquiries back to listing agents from Compass Coming Soon on Redfin. These inquiries charge no referral fee from Redfin to the listing agent, and all of these buyer inquiries are incremental to what our listings real estate professionals would have received without the Redfin partnership. In addition to free buyer inquiries, our real estate professionals are also receiving a minimum of 1.2 million leads from Rocket and Redfin over the next three years, with over 24,000 leads already having been given to our real estate professionals since the partnership was announced. We have also seen recruiting momentum pick up in the Compass brand since our announcement, and principal agent recruiting is off to a faster start in Q2 than expected. One of the reasons for this is their interest in the Redfin and Rocket partnership, as they want to benefit from these leads as well. Shifting to the earnings potential of our combined business. A common question we receive from the investment community is what the earnings profile of the combined business could be in various housing market scenarios. In our investor deck this quarter, we have provided a scenario analysis to demonstrate how we are positioned to generate resilient financial performance even in a flat housing market and capture significant upside as the market improves and once we realize our cost synergies. Importantly, these scenarios assume no agent adds, no organic share take, no margin improvement, no improvements on T&E or mortgage attach, or any contribution from leads or other ancillary revenue streams, which we view as incremental growth levers in our business beyond the housing recovery. I also want to emphasize that this is not guidance, but these scenarios should help provide a range of expectations around the earnings power of our combined company, simply from an eventual recovery in existing home sales and once we've realized our cost synergies. Specifically, 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. Lastly, we also provided an upside scenario of 6 million home sales, and at those levels, we would generate $2.5 billion in adjusted EBITDA and roughly $2 billion in unlevered free cash flow. What you can hopefully see from this analysis is that, one, even at 4.1 million existing home sales, which we believe is the trough of the cycle, we would expect the business to generate $750 million in unlevered free cash flow, giving us confidence that we can make progress in reducing leverage even in conservative scenarios. Two, once we begin the recovery up to mid-cycle levels, that the earnings growth and free cash flow potential in this business is incredibly significant. I want to end by talking about our AI strategy. Last quarter, I touched on our three defensive pillars around AI. This includes, one, our growing base of proprietary data from our three-phase marketing listings, which cannot be scraped by foundational AI models. Two, trust, which we believe will become even more important in a world where AI agents will bring inaccurate and fake information into the market, like fake offers, fake listings, fake accounts, fake pictures, fake renderings. I'm already starting to see it. In this future, human validation will continue to be important given the high stakes, high-ticket transaction. Trust will matter even more than before. Three, positive network effects that our 330,000+ real estate professionals will create to continuously improve our agentic AI capabilities on the platform. Combined, we believe we have the attributes required to evolve with the AI landscape. Despite all the fears around AI, the data indicates that agent utilization is now at the highest level in recorded history. Per NAR's annual consumer profile, 91% of home sellers and 88% of home buyers choose to use a real estate professional to complete their transaction in 2025. I wanna reiterate that that is the highest level that we have ever seen in recorded history. Moreover, we're seeing the lowest level of for sale by owner listings in recorded history at just 5%. Even with AI making significant progress in the last two years, we're seeing an increase in the number of people using agents and a decrease in the number of for sale by owners listings, and both at historic levels. The data I just shared, 91% of home sellers using an agent and 88% of home buyers using an agent, that compares to a similar 90% of home sellers using an agent in 2024 and 88% of home buyers using an agent in that period as well. If you go back in time to 2005, what you'd see is 85% of home sellers using an agent and 77% of home buyers using an agent. What this data is showing is that greater access to information or better search capabilities is not the reason why consumers choose to work with an agent. Rather it's the agent's critical role in managing a highly complex, and a highly emotional transaction. One where trust matters, where it's high stakes, high value. I cannot overstate how emotional these transactions and negotiations can become. The localized nuances that are prevalent in real estate are abundant, and the nuanced deal process where no deal is the same as another, is why people use a real estate professional. Moreover, what history shows is that as information becomes more prevalent, as it did with the rise of the internet from that 2005 period, where less buyers and sellers were using an agent. As the information becomes more prevalent, where more information and data has been out there over the last two decades. With more information, you see a greater need for the average consumer to feel like they need to hire a professional to make sense of all the information and all the data. Said simply, history shows that more information and more data in the public domain increases the demand for advice from a real estate professional. Now let me take a moment to speak about what we are doing to position ourselves and our business offensively for the AI opportunity. First, we are using AI to reduce OpEx as you would expect. In Q1 alone, our internal initiative to train Compass and their 2,300 employees on how to best use AI tools has freed up an estimated $2 million of resources by deploying targeted AI workflow automations across support, compliance, and brokerage operations. The team has identified potential annualized efficiencies in the vicinity of $23 million as part of our overall cost synergy goal. Furthermore, we are transforming our engineering organization by successfully deploying AI coding assistance and automated testing frameworks organization-wide. We now estimate that 30%-40% of all new code written at Compass is produced by AI, which is helping accelerate product development velocity by 20% while keeping our technology OpEx unchanged even as we upgrade the platform for the Anywhere integration. Second, on productivity, we can help our real estate professionals, title agents, and mortgage loan officers within our ecosystem become even more efficient and gain an edge in the market by using AI. For real estate professionals, we are fully integrating Compass AI 2.0 into their workflow to create an on-demand partner designed to help unearth business opportunities and streamline their daily workflows. Examples include a newly rolled out suggestion model, which suggests new steps an agent should take with their client to move their transaction along, or proactively serving up buyer and seller leads through what we call our structural advantage tools, such as reverse prospecting, make me sell, or the network tool to help a listing agent close a transaction faster. By giving our 330,000+ real estate professionals these insights in reducing the number of manual tasks they perform each week, we are enabling them to service, win, and close transactions faster. For our title agents, we are planning to leverage our significant data advantage now created by the Anywhere transaction to execute a targeted local sales approach. By layering predictive analytics into our one-click title and escrow integration, our title agents will be able to identify and intercept high probability transactions with greater precision, which we believe will improve our attach rates. For our mortgage loan officers, we can plan to apply similar predictive AI principles to capitalize on our expanded mortgage coverage. By utilizing our platform's proprietary transaction signals, we can provide loan officers with what we believe are highly qualified, high intent leads exactly when a client needs financing, giving them an edge to win the business. Ultimately, we believe AI will be an accelerant to how much business our professionals do, and we are confident that we have the assets to help them win. With that, I will now hand it over to Scott. Thanks, Robert. I want to start by saying thank you to our consolidated team for the extraordinary effort and collaboration put in over the past four months, which has led to the great results we're sharing today. With the Anywhere transaction closing on January 9th, Q1 was truly a transformational quarter for our company. Where possible, I'll provide some information about the contribution to our consolidated results from the acquired Anywhere businesses. However, we're integrating the entities quickly and therefore do not generally expect to break out separate results going forward. Please note that beginning this quarter, we'll also be providing additional information on an operating segment level. Our three operating segments going forward will be Brokerage, Franchise, and Integrated Services. The Brokerage segment includes the results of our owned brokerage operations that now include the Coldwell Banker, Corcoran, and Sotheby's International Realty brands. The franchise segment includes the results of the franchise brands we just acquired through the Anywhere transaction, as well as the Christie's International Real Estate franchise we acquired in January 2025. The Integrated Services segment includes the results of our joint title and escrow operations, as well as the operations of the Cartus relocation business that came through the Anywhere transaction. The Integrated Services segment also includes the equity method income from our 49% owned mortgage joint ventures, including the Guaranteed Rate Affinity JV from the Anywhere transaction and our OriginPoint JV. 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 more to the corporate entity or because they are shared across multiple or all of the operating segments. These include expenses related to our technology, finance, legal, human resources, and executive functions. The total adjusted EBITDA for the consolidated company will be equal to the total of the segment adjusted EBITDA results for our three operating segments, less the unallocated corporate expenses. We've reclassified our prior year results on the same operating segment basis for consistency with the current period presentation. Revenue in Q1 reached $2.7 billion at the upper end of our revenue guidance range of $2.55 billion-$2.75 billion. Excluding the Q1 revenue contribution from the Anywhere transaction of about $1.2 billion, revenue increased 10.9% year-over-year. We are very pleased with this result as Q1 was a tough year-over-year quarterly comp in 2026, as on a Compass standalone basis, we grew organic revenue in Q1 2025 by 14.6% compared to Q1 2024. Brokerage segment revenue was $2.467 billion for Q1. On a pro forma basis, brokerage segment revenue increased 7.1% in Q1 2026 compared to Q1 2025. Gross transaction value for the brokerage segment was $97.3 billion in the first quarter. On a pro forma basis, brokerage segment GTV was up 7.3% year-over-year, a favorable comparison to the market that was at 1.5%. On a consolidated basis, including Anywhere, our average selling price was $978,000 for the quarter, representing a decrease of about 8% from a year ago, as Anywhere's brokerage business has slightly lower average selling prices. Commissions and other related expense as a percentage of our brokerage segment revenue improved to 81.4% for the quarter, compared to 83.2% in Q1 of last year, as Anywhere's brokerage operations operate with slightly lower commission rates than Compass's brokerage operations. On a pro forma basis, commissions and other related expenses as a percentage of our brokerage segment revenue was 81.3% in Q1, compared to 81.0% in Q1 of last year. Pro forma franchise segment GTV was up 4.6% year-over-year compared to a housing market volume that was up 1.5%. Finally, pro forma integrated services revenue grew 11% year-over-year, with title and escrow revenue being the primary driver. Our total non-GAAP operating expenses were $641 million in Q1, an increase from $236 million of OpEx in the year-ago period, driven by the operating expenses assumed in the Anywhere transaction. Note that this OpEx figure for Q1 of $641 million excludes Anywhere's expenses for the first eight days of the quarter prior to the transaction closing, or about $40 million of expense. Adjusted EBITDA for Q1 was $61 million, a record level of adjusted EBITDA for any first quarter period in our history, exceeding the high end of our $15 million-$35 million guidance range and a strong improvement of 280% from adjusted EBITDA of $16 million a year ago. Last quarter, I talked about the impact of Anywhere's LTIP, which is comprised of cash-settled RSUs that require mark-to-market accounting through the P&L. The run-up in Anywhere stock price at the end of 2025 led to higher operating expenses in the P&L. Since these LTIP awards started to be indexed off of Compass's stock following the closing of the merger, we expected that elevated level to continue into Q1, which is built into our Q1 guide. Given the decrease in Compass's stock price from the time we issued our Q1 guidance in late February to the stock price as of March 31st, the actual expense from the LTIP wound up being $19 million lower than expected, which benefited adjusted EBITDA in Q1. Even after excluding the $19 million benefit from the LTIP, adjusted EBITDA would have been $42 million. This result still exceeded the high end of our adjusted EBITDA guidance range in the quarter, driven by higher-than-expected revenue and some other favorability in operating expenses, including slightly better realization of our cost synergies in the quarter. Several items were excluded from adjusted EBITDA as follows. During the quarter as expected, we incurred $183 million of transaction and integration expenses related to the Anywhere transaction. This includes expenses such as investment banking, legal fees, and severance costs, including $61 million of stock-based compensation expense, primarily related to the change of control severance provisions from Anywhere's former executives. We do expect additional expenses in this line item throughout the year as we continue our cost synergy and integration efforts, but not near the level seen in Q1. You'll notice an elevated level of non-cash depreciation and amortization expense this quarter at $163 million, up from $29 million a year ago. This increase is driven by the additional intangible assets and fixed assets we assumed in the Anywhere transaction, and this level of non-cash depreciation and amortization expense will continue in the future. Stock-based compensation expense in the quarter was $47 million, excluding the aforementioned $61 million day one charge related to Anywhere's former executives. Last quarter, I guided you that you should expect stock-based compensation on a consolidated basis will not exceed $50 million in any future quarter beginning in Q2, and that continues to be our expectation. Finally, during the quarter, we recognized a $401 million one-time non-cash deferred tax benefit related to the reversal of valuation allowances on our deferred tax assets. This reversal was related to the establishment of deferred tax liabilities for the recognition of intangible assets from the Anywhere transaction that are nondeductible for tax purposes. This $401 million deferred tax benefit offset the other non-cash expenses, and actually pushed us into a GAAP net income position this quarter of $22 million compared to GAAP net loss of $51 million a year ago. Our basic weighted average share count for the first quarter was $734 million shares, just slightly above the guidance range of $720 million-$730 million shares. As expected, free cash flow was negative at $168 million in the quarter, driven by the Anywhere transaction and integration expenses, including the transaction costs incurred by Anywhere prior to the closing of the transaction that were paid on or subsequent to the closing date. That said, we ended the quarter in a strong cash position with $484 million of cash on the balance sheet, an increase of $285 million from year-end. Cash increase was driven by the $880 million in net proceeds from the convertible debt offering, offset by the use of $345 million in the Anywhere transaction related to the payoff of their revolver, net of cash acquired from their balance sheet. At the end of Q1, we had no outstanding borrowings on our $500 million revolver, we may remain well within our net leverage ratio covenant, which is the primary financial covenant on the revolver. As Robert touched on early, we have continued to make strong early progress on cost synergies. We have already actioned over $250 million of our cost synergy target, which was previously our year one target. As a result, we've now increased our year one action target from $250 million-$300 million and raised our three-year action target from $400 million-$500 million. Last quarter, we guided to an expectation to realize about $100 million of the cost synergies in 2026, but that we now expect to realize about $200 million in 2026. About two-thirds of this amount, or $130 million, will be reflected as reduced operating expenses in 2026, benefiting adjusted EBITDA and cash flow. The remaining one-third, or about $70 million, will be reflected as lower CapEx, which won't directly benefit adjusted EBITDA but will benefit free cash flow. As I discussed last quarter, the reason why a portion of the cost synergies will be realized through CapEx is because Anywhere historically capitalized a large amount of employee and contract labor to its balance sheet, approximately $80 million in 2025. As part of our cost synergy work, a significant portion of Anywhere's technology projects that had historically been subject to capitalization will be cut as we shift the technology focus to the Compass platform. Importantly, as we've already made significant progress on the CapEx portion of our synergies, the vast majority of future actions over the next three years will generally all benefit the P&L and adjusted EBITDA. Now turning to financial guidance for Q2. For the second quarter of 2026, we expect consolidated revenue in the range of $4 billion-$4.2 billion. We expect second quarter consolidated adjusted EBITDA to be in the range of $310 million-$350 million. For the full year, we expect non-GAAP operating expenses in the range of $2.7 billion-$2.75 billion when considering the actual OpEx of $641 million for Q1. Included in the full-year OpEx range is the 3%-4% OpEx inflation we typically expect and the $130 million of the OpEx synergies we expect to realize through the P&L. On average, the OpEx for Qs two, three, and four reflects a step-up from the OpEx level of $641 million for Q1 for a few reasons. First, OpEx in Q1 excluded eight days of Anywhere's operating expenses due to the transaction closing on January 9th. Second, our annual employee compensation adjustments occur at the end of March, leading to a step-up of these payroll expenses starting in Q2 of each year. Offsetting these natural increases would be the higher P&L realization of synergies in the second, third, and fourth quarters compared to the cost synergy realization in Q1, which was lower. We expect our weighted average share count for the second quarter to be between $755 million-$760 million shares. This is a step-up from Q1, as the shares issued for the Anywhere transaction were only weighted for the period post-closing January 9th. Finally, a few thoughts on cash flow and debt levels. As I talked about last quarter, we fully expected to report negative free cash flow in the first quarter from the Anywhere transaction and integration cost spends. We expect to be free cash flow positive for the balance of the year. However, Q2 could be close to free cash flow breakeven or maybe even slightly negative based on the timing of severance and other payments to achieve our cost synergies, the timing of the semiannual interest payments on our debt, which are concentrated in the second and fourth quarters of the year, and the timing of certain legal payments related to Anywhere, including the $54 million NAR-related class action settlement that is still open and expected to be paid in the near term. That said, we expect to deliver strong free cash flow in Q3 and Q4 of this year, which should put us in a cash position to deliver positive free cash flow on a full-year basis and give us a clear path to prioritize aggressively delevering our balance sheet, which remains a high priority for us. Our first target in delevering is the highest cost tranche in our capital structure, the $500 million of 9.75% notes. These notes can't be prepaid today and will first become callable on April 15th, 2027. The bonds will carry a redemption premium of 4 and 7/8% over par. While this redemption premium will cost us $25 million in cash, it'll save us nearly $50 million in annual interest cost. It's a good use of cash. April 15th of next year is circled on our calendar, and assuming cash flows materialize as we expect, we'll be taking out the full tranche of the 9.75% notes in Q2 of next year. In the meantime, we'll build cash on the balance sheet while earning mid 3% returns in short-term treasuries. To wrap up my comments, in early April, Moody's and S&P initiated credit ratings on Compass, as prior to this point, Compass had no debt and therefore had no credit ratings. Their respective reviews concluded a month ago, and S&P initiated a B+ corporate rating, and Moody's initiated a B2 corporate rating, and each issued positive outlooks on Compass Inc., which were upgrades from where Anywhere was rated on a standalone basis before the transaction. Additionally, ratings on the outstanding bonds were each upgraded between two to three notches. We're pleased to see that two of the big three credit rating agencies have come out with positive outlooks on the cash flow generation capabilities of Compass and Anywhere on a combined basis. Before I turn the call over to begin Q&A, we'll be attending the BTIG conference on May 7th and the JPMorgan TMT conference in Boston on May 18th, and hope to see you there. All right. Thank you, everyone. This is Soham. For the Q&A portion of the call, we're gonna take questions that we received via email in the text box. Apologies again for the technical difficulties. I guess the first question is from Jason Helfstein from Oppenheimer. You know, how should we think about the timing of Anywhere's agents getting access to the Compass' technology platform and what do you expect in terms of adoption rate? Yeah, thank you for the question. The Anywhere owned brokerage will get the technology starting next month, and then more in each month following, with everybody getting it by the 1st week of September, if not earlier, everyone in the owned operation. The franchise affiliate business will start getting it in January, and it will be released over the following two months as well, so in advance of the spring market. Great. The second one from Jason is, have you seen the uptake of Three-Phased Marketing since you settled with Zillow and launched the Redfin partnership? Yes, we've seen an uptick in the Three-Phased Marketing. It's been modest as, you know, you're in the middle of a spring market when usually it's more towards the third phase, but we've definitely seen an increase. Our Coming Soons went from, I think it was low 20s to mid-30s, and I expect it to be much higher in the months ahead. My expectation is that 80% of our listings will go through the Coming Soon phase. Great. The expectation comes from where, before the restrictive rules that were put in place, i.e. Clear Cooperation, we had 90% of our listings start off as Coming Soons. Okay. Next one's from Dae Lee from JPMorgan. You've gone from managing one brand to multiple brands across owned brokerage and franchise network. That's now larger than your brokerage by transaction volume. That's a step change in complexity. What's the tangible benefit of maintaining distinct brands and catering to fundamentally different needs of agents spanning different brands and models? I think part of, you know, in your question is the answer. You know, our customers are agents, right? You said agents have different needs, we need to serve those needs. One of the needs that people have is a desire to have a local culture, local traditions, local beliefs, and a local unique brand. This allows being able to support different brands allows us to serve more agents in the markets that we're in. If our customers are agents, I don't think I've heard an agent say they want us to merge all the brands, as an example, but I have heard agents say that they want us to maintain their brands, and we've given them that commitment. The technology platform is the reason why it's taking the time it is taking to roll out is, you know, half of the reason is so that it can work in a brand agnostic way. With that flexibility that we're bringing, quite frankly, just towards this summer, it can serve different brands without any more investment. In the same way Shopify is able to support a bunch of different brands, you know, our platform should be able to support brands as well. Okay. The second one from Dae Lee is, how much incremental synergy opportunity remains beyond the $500 million? There is. Well, yeah. I'll start, and I'll pass it on. There is incremental opportunity, but I wouldn't expect another increase in any time in the near future. Yeah, I was gonna follow up with the same thing. I mean, it's suffice it to say, we moved very quickly in these first 100 days since closing the transaction. We wanted to make a big impact early on just for the clarity of the organization in moving forward. As we get into the next phase of the synergies, we're getting into the deeper operational type integrations. You know, we've got the runway to complete the rest of that phase, which we've clearly de-risked ourselves with the great progress we've made to date. We wouldn't not expect to be raising that target anytime soon. Great. Next is from Ryan McKeveny at Zelman. The first one is on the synergies target and increasing the target of $500 million in management dive into the primary areas of cost savings, presumably from a combination of leases, headcount, tech development. Should we think about the mix of those big buckets and what categories of expenses is the drivers for the incremental synergy? Just repeat that last section. Yeah. Okay. I'll repeat it again. On the synergies target, and the increase to $500 million, can management dive into the primary areas of cost savings, presumably leases, headcount, tech, and development. How should we think about the mix of those big buckets? Look, the reality is nothing's changed in terms of the buckets. I mean, those big buckets were there. The reality is what's changed is more time has elapsed. We've had more ability to get into the details. Just to kinda like recap it, when we first put out the $225 million, that was at the time of announcement, back in September of last year, before we had any opportunity to get into the details, right? We increased that again to $300 million when we started doing some pre-close planning work, gave us more confidence of increasing that. The buckets didn't change then either. We just had more confidence on the total. We increased it to $400 million in February, after we had seven weeks of actual progress working with the leadership team of Anywhere and Compass coming together. After now having almost four months completed since we closed the transaction on January 9th, it's just that much additional confidence. I mean, I think the one thing I'd add that is why we're seeing such good progress here is that the management teams are really working very well together. In a typical situation, I think you often have the target comes in, makes a lot of changes, makes decisions, and this has been a much more collaborative approach with the Anywhere and Compass management teams working really closely with each other, and I think it's been a good contributor of the reason for our success. It's not really any new buckets. It's just really kind of, I think a team that's working really well together and making good progress towards the original goals. Okay, great. The next question is also from Ryan. On the recent announcement with you and TPG and the stake in Peerage, firstly, can you give some context on the dynamics driving that transaction in terms of how that impacts the model? Does the ownership structure change? Just how does it sort of flow through the P&L? Yeah, look, on the Peerage transaction, you know, it's really a positive transaction for us. Peerage is one of the key franchisers under the Sotheby's International Realty brand, and it's an important relationship for us. They grew quickly, through M&A prior to when mortgage rates spiked. This is going back into the early 2000s, or 2020s, I should say. They just got into a situation where they were over-levered, took out too much debt as a result of their expansion, and just had trouble keeping up with the debt payments. It's a good business. It's fundamentally a good business. They just got over-levered on debt. This transaction allowed them to restructure their finances, clean up their balance sheet, and now puts them on the right path, going forward. You know, we pick up a 51% common ownership interest in this transaction. They're back on being cash flow positive. Nothing changes from the standpoint of how those revenues will flow through our business on the franchise side. That'll stay coming through franchise revenue going forward. As we talked about in the announcement, we kinda restructured some amounts they owed us from some royalty payments they were behind on. We'll get those paid back just over a little bit longer period of time that we'll provide. Overall, a net positive transaction for us. Great. Next one is from Alec Brondolo, from Wells Fargo. Could you speak to the cost buckets that drove the increase in the three-year synergy target from $400 to $500? How much of the $130 million in anticipated P&L cost synergies will be realized in the first half of the year relative to the second half? Could you speak to the learnings of the Anywhere franchise business since the acquisition closed? How are you thinking about bringing technology and the best practices to the franchisees? Maybe I can start with the synergies question. You know, on the synergies, I think if you think about the $130 million that'll be realized through the P&L in 2026, about 10 of that was realized in the first quarter, just given timing of the actions in relation to Q1. That by default puts the remaining 120 coming forth in Qs two, three, and four. If you just divide that up at $40 million even, I'd say you could assume a little less than that average of 40 in Q2, and a little more of that average in Q4. As you know, a lot of the synergies are action now. They'll continue to build in terms of realization through the quarter, quarters of the year, and we still have another $50 million to go. That's a good way to kind of frame how that's gonna come through the P&L. In terms of franchise, historically, our company served real estate professionals as agents and with the goal of making them more profitable, serving them as entrepreneurs, helping them realize their entrepreneurial potential. Now, we have a second customer base as broker-owners, which are the franchise affiliate businesses. They have the exact same goals as the real estate agent, which is to become more profitable, to realize their entrepreneurial potential. You know, we are giving them the same advantages that helped Compass grow, we're giving them as broker-owners to help them grow. Obviously, it's the technology platform as one example, but also our enterprise sales team that recruits agents, our M&A team. We are giving them both on the revenue side and the cost side, the same advantage that Compass had at a brokerage level. We are giving that to the franchise broker-owners so that they can be more profitable businesses. Okay, great. The second one from Alec is, how should we be thinking about the size of the Anywhere agent base that has a low amount of GCI? How long do you anticipate attrition from that group of users that will last? Yeah, look, Go, Robbie, you wanna take that? Yeah, no, I was just going to say on the agent base, I mean, I think the important point that we wanted to call out there is that the attrition during the quarter, you know, a significant percentage of that was really kind of underperforming or non-performing agents. You know, 50% to 6% of the agents we said had zero production. Another 21% on top of that had production of $20K or less in the past 12 months. These are, you know, reductions of numbers of agents, but really having no impact on the business. You know, on the Compass side, over the last several years, we've kind of really operated under this methodology of, you know, kind of focusing on the strong producing agents and the underperforming agents, you know, if they pay their fees and they are otherwise, you know, in good standing with amounts owed to the brokerage, we'll keep them on. If they're not producing and they're not paying bills as due, we'll move them out of the business. Anywhere's, you know, now operating under that same capacity, in recent periods of time, and I think they're just catching up to us a little bit. It's good to see that we're both aligned on that strategy. It's the right strategy. There might be a little bit of more choppiness over the near term on that, but the important thing is that we're just dropping numbers of agents. It's not dropping any production at all, and that's an angle. As we've always said before, you know, there's been this limitation with principal agent counts and total agent counts, is that not all agents are created equal. Even when we used to re-report principal agents on the Compass side, you know, one principal agent could be operating as an individual contributor. Another principal agent could have a team of dozens of agents doing extremely high production. There were limitations to that metric on a principal agent basis, and there's also limitations on a total agent basis. The important thing we wanted to get out there is that the lost agent counts really had very limited production associated with them, so no meaningful impact on the business. Great. Thank you. All right, next one is from Bernie at Needham. With the guidance, can you provide some color by revenue buckets? How should we expect seasonality throughout the year? Are there any differences than typical housing market seasonality? Could you repeat that, the last part? Yep. And, and- With the guidance, can you provide some color by the revenue buckets? How should we expect seasonality throughout the year? Is there any difference in housing market seasonality? You know, it's probably gonna be pretty similar. You know, a lot of the GTV coming through franchise will follow similar to the brokerage seasonality. I'd expect those two to be fairly aligned. You can actually see, just as a reminder, we put on our website through the investor deck we provided today the pro forma revenue for 2025 as though Anywhere and Compass were combined from the beginning of 2025. You can see the breakout for the brokerage, franchise, and integrated services segment separated for Compass, separated for Anywhere, and then, of course, in total. You have good visibility of what that looks like on a trailing 12-month basis to hopefully, give you some sense as to what that trending could look like going forward. Okay, great. The next one is from Bernie as well. 84,000 agent count was lower than expected. I don't think we had the exact apples-to-apples comparisons with the principal versus non-principal agent count last quarter. How did agents trend quarter-over-quarter? Can you talk to agent retention? I mean, look, I think we touched on that a little bit already with, you know, we had good recruiting. We talked about the attrition and the portion of that attrition that was really kind of related to non-productive agents. I think the gap to consider is that what we're talking about here with the, you know, 84,000 agents, we're talking about owned brokerage agents, right? There's obviously a lot of agents on the franchise side of the house that we're not including in that count. That leads to our total, you know, the 330,000-ish total count across the company, which includes international franchise. Great. The next one's from Michael Ng at Goldman Sachs. What were the key sources of the upgraded synergy outlook, given three-quarters of upgraded synergy outlooks? Could we expect further upside from here? As a housekeeping item, how much in P&L synergies was realized in Q1, and how much do you expect in Q2? Yeah, I think we covered that one as well in earlier question. Again, about $10 million was realized in the first quarter, which is up a little bit from what we expected. That leaves you with about $120 million of P&L realization that'll come through in the last three quarters of the year. It's, you know, expect a little less than $40 million in Q2, about $40 million in Q3, and a little more than $40 million in Q4, if you wanna kind of like phase that out that way. Okay. This should be the last few questions here. From Michael Rindos at Benchmark. Please discuss what's going on with private listings in Chicago, in the Chicago MLS, sharing it nationally, and Washington State, Wisconsin enacting laws around private listings. There are two types of laws that states are coming with. One is a model which I believe is Wisconsin and Connecticut, where they're saying that if a seller signs that they don't, that they want to be private listing, they can be private listing. That actually means that some states are saying sellers have the legal right to be a private listing, and to market however they want. That's one model. I guess, and well, there's three models. The second model is one where the states aren't saying anything, and the third model would be states like Washington State, where they're saying if a listing is marketed to some, it must be publicly marketed. Public marketing per, at least per MLSs, is a sign in the yard. What is public marketing? Is that saying if you're marketing to some as private listing, you have to have a sign in your yard? I'm sure that's fine. Public marketing is putting on social media. Is that saying if you have a private listing, you also have to put it on your social media? I think that'd be fine. Is public marketing saying that it has to have days on market or price drop history or a bunch of information? Public marketing could just be a picture of the house, the neighborhood, and say, "Contact me. I'm the agent. Come to compass.com. We'll show you all these listings. In those states like Washington, one, they're saying if it's a, they're saying Coming Soon are perfectly legal, and if not, if nothing else, that it meets the requirement 'cause clearly it's a public marketing. Even Private Exclusives on compass.com, they're available per request. Private Exclusive is just a name, like private label for clothes, like private banking, like private equity, like private client group. It's just a name. Obviously, it can't be private 'cause it's private use. You can't sell something to yourself, right? What Private Exclusives are on compass.com, they're available by request, and they are publicly marketed. A different way to say it, Zillow bans Private Exclusives because they're public marketing. Even Zillow believes they're publicly marketed. That's what's happening in the state level. For MRED, what we are bringing MRED national as well as it'll be just a select number of MLSs that are pro-seller choice, where we're going to give them all of our listings, where we're going to subsidize our agents joining. The reason why, it's not, it's not that I wanna create a national MLS to replace local MLSs. I wanna create a national MLS to compete against local MLSs. If they have to compete, who are they competing for? For us, for agents. Agents deserve more choices. Sellers deserve more choices, not less. I think this is a very. In the same way, look what we kicked off. Now you have Zillow Previews and Realtor Previews [audio distortion] Coming Soon on all these sites. Didn't the seller deserve that five years ago and 10 years ago? Why didn't they have it? I mean, shouldn't sellers have more choices, not less choices? What we are doing, we are pushing on the system so that sellers and agents have more choices, less mandates. The seller should be the only person that decides how they market their home in the context of the law. Fiduciary duty and statutory duty, which are a majority of states, say that the agent, the real estate agent has, must, and this is the law. MLS rules are just rules of a business. They're private entities. The fiduciary duty and statutory duty says the agent must follow all lawful, in quotes, lawful instructions of their client. If a seller wants to market without days on market and price drop, it's however they want, that is a lawful instruction. An MLS with restrictive rules should not be able to tell an agent that they cannot follow the law, or if they don't follow the law of their seller's instructions, that they're gonna be fined $5,000 and can lose their access. I think, you know, I'll close with this. The dominant portal that likes banning agents for marketing outside of their platform to scare them from marketing outside their platform, their tagline is: We are trying to bring into the light these listings, bring transparency into the light. Well, here's what we're bringing to the light. We're bringing to the light that sellers, and sellers have been losing the disinterested advice of their fiduciary because of MLS fines and Zillow bans. We are bringing to the light that sellers with their agents should be able to decide how they market their home in any way they want, not third-party portals and third-party platforms like an MLS. The seller hired the agent and the brokerage firm. The seller didn't hire the MLS. The seller hired the agent. They didn't hire a portal. Again, I think that, you know, history will look back, and they'll see that sellers will have more choices because of the efforts that we've been pushing forward. I'm thankful for all of the agents and employees that have advocated for seller choice over the last number of years. Great. I think we will end it there. I know we went a little bit over. Again, thank you everyone for joining the call. Apologies for the technical difficulties. We are available tonight and over the next few days to answer any of the questions you may have. Thanks again for joining. This concludes today's call. Thank you for attending.

Speaker 1: Ladies and gentlemen, thank you for joining us, and welcome to Compass, Inc. 2026 Q1 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw that question, press star one again. I would now like to turn the call over to Soham Bhonsle, Head of Investor Relations. Please go ahead. Ladies and gentlemen, thank you for joining us, and welcome to Compass, Inc. 2026 Q1 earnings call. ladies and gentlemen thank you for joining us and welcome to compass inc 2026 q1 earnings call After today's prepared remarks, we will host a question and answer session. after today's prepared remarks we will host a question and answer session If you would like to ask a question, please press star one to raise your hand. if you would like to ask a question please press star one to raise your hand To withdraw that question, press star one again. to withdraw that question press star one again I would now like to turn the call over to Soham Bhonsle, Head of Investor Relations. i would now like to turn the call over to soham bhonsle head of investor relations Please go ahead. please go ahead

Speaker 4: Thank you very much, operator, and good afternoon, everybody, and thank you for joining the Compass first 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. You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our first quarter 2026 earnings release posted on our Investor Relations website. Additionally, note that since the financial results from the Anywhere transaction are not included in the prior year period or the first eight days of Q1 2026, the current year and prior year results are not comparable. Thank you very much, operator, and good afternoon, everybody, and thank you for joining the Compass first quarter 2026 earnings call. thank you very much operator and good afternoon everybody and thank you for joining the compass first quarter 2026 earnings call Joining us today will be Robert Reffkin, our Founder and CEO, and Scott Wahlers, our Chief Financial Officer. 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. in discussing our company's performance we will refer to some non-gaap measures You can find the reconciliation of these non-GAAP measures to the most directly comparable GAAP measures in our first quarter 2026 earnings release posted on our Investor Relations website. you can find the reconciliation of these non-gaap measures to the most directly comparable gaap measures in our first quarter 2026 earnings release posted on our investor relations website Additionally, note that since the financial results from the Anywhere transaction are not included in the prior year period or the first eight days of Q1 2026, the current year and prior year results are not comparable. additionally note that since the financial results from the anywhere transaction are not included in the prior year period or the first eight days of q1 2026 the current year and prior year results are not comparable We have provided supplemental information included in the Form 8-K filed today that presents our revenue and commissions expenses and key business metrics on a pro forma basis as though the businesses were combined from the beginning of 2025. We believe this additional information will be useful to investors to assist in comparing the periods prior and subsequent to the closing of the Anywhere transaction. We will also be making 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 second 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. We have provided supplemental information included in the Form 8-K filed today that presents our revenue and commissions expenses and key business metrics on a pro forma basis as though the businesses were combined from the beginning of 2025. we have provided supplemental information included in the form 8-k filed today that presents our revenue and commissions expenses and key business metrics on a pro forma basis as though the businesses were combined from the beginning of 2025 We believe this additional information will be useful to investors to assist in comparing the periods prior and subsequent to the closing of the Anywhere transaction. we believe this additional information will be useful to investors to assist in comparing the periods prior and subsequent to the closing of the anywhere transaction We will also be making forward-looking statements that are based on our current expectations, forecasts, and assumptions and involve risks and uncertainties. we will also be making 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 second quarter of 2026 and full year 2026 and comments related to our expectations for realizing cost synergies and operational achievements. these statements include our guidance for the second 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. our actual results may differ materially from these statements You can find more information about risks, uncertainties, and other factors that could affect our results in our most recent annual report on Form 10-K filed with the SEC and available on our Investor Relations website. You should not place undue reliance on any forward-looking statements. All information in this presentation is as of today's date, May 5th. We expressly disclaim any obligation to update this information. I will now turn the call over to Robert Reffkin. Robert? You can find more information about risks, uncertainties, and other factors that could affect our results in our most recent annual report on Form 10-K filed with the SEC and available on our Investor Relations website. you can find more information about risks uncertainties and other factors that could affect our results in our most recent annual report on form 10-k filed with the sec and available on our investor relations website You should not place undue reliance on any forward-looking statements. you should not place undue reliance on any forward-looking statements All information in this presentation is as of today's date, May 5th. all information in this presentation is as of today's date may 5th We expressly disclaim any obligation to update this information. we expressly disclaim any obligation to update this information I will now turn the call over to Robert Reffkin. i will now turn the call over to robert reffkin Robert? robert

Speaker 2: Good afternoon, and thank you for joining us for our first quarter conference call. Before I go over our strong Q1 results, I would like to provide an update on our cost synergy targets and highlight a few early wins since we closed the Anywhere transaction. First, on our cost synergies. On our Q4 earnings call in February, we shared our target of $250 million in cost synergies to be actioned by the end of year one and $400 million in net cost synergies over three years. Good afternoon, and thank you for joining us for our first quarter conference call. good afternoon and thank you for joining us for our first quarter conference call Before I go over our strong Q1 results, I would like to provide an update on our cost synergy targets and highlight a few early wins since we closed the Anywhere transaction. before i go over our strong q1 results i would like to provide an update on our cost synergy targets and highlight a few early wins since we closed the anywhere transaction First, on our cost synergies. first on our cost synergies On our Q4 earnings call in February, we shared our target of $250 million in cost synergies to be actioned by the end of year one and $400 million in net cost synergies over three years. on our q4 earnings call in february we shared our target of $250 million in cost synergies to be actioned by the end of year one and $400 million in net cost synergies over three years I am very pleased to share that we are increasing our target to $300 million in cost synergies to be actioned by the end of year one and $500 million in net cost synergies over three years, of which $420 million is expected to be realized through the P&L and $80 million is expected to be realized as a CapEx synergy. We have now actioned over $250 million in cost synergies as of April 1st, which is only 82 days since we closed the Anywhere transaction. The acceleration results in an increase in our 2026 in-year realized cost synergies from approximately $100 million-$200 million. I am very pleased to share that we are increasing our target to $300 million in cost synergies to be actioned by the end of year one and $500 million in net cost synergies over three years, of which $420 million is expected to be realized through the P&L and $80 million is expected to be realized as a CapEx synergy. i am very pleased to share that we are increasing our target to $300 million in cost synergies to be actioned by the end of year one and $500 million in net cost synergies over three years of which $420 million is expected to be realized through the p&l and $80 million is expected to be realized as a capex synergy We have now actioned over $250 million in cost synergies as of April 1st, which is only 82 days since we closed the Anywhere transaction. we have now actioned over $250 million in cost synergies as of april 1st which is only 82 days since we closed the anywhere transaction The acceleration results in an increase in our 2026 in-year realized cost synergies from approximately $100 million - $200 million. the acceleration results in an increase in our 2026 in-year realized cost synergies from approximately $100 million - $200 million We previously expected $40 million of the $100 million of our cost synergies to be realized through the P&L as an OpEx synergy, with the remainder being realized as a CapEx synergy. Based on the increased realization of the target, we now expect about $130 million to be realized through the P&L and $70 million expected to be realized as a CapEx synergy. This reflects a roughly $90 million increase in our in-year realized OpEx synergy expectations and a $10 million increase in our in-year CapEx synergy expectations compared to our prior expectations due to the larger in-year realized target of $200 million. Shifting now to our early Q1 wins that represent the growth and success in our brokerage brands. We previously expected $40 million of the $100 million of our cost synergies to be realized through the P&L as an OpEx synergy, with the remainder being realized as a CapEx synergy. we previously expected $40 million of the $100 million of our cost synergies to be realized through the p&l as an opex synergy with the remainder being realized as a capex synergy Based on the increased realization of the target, we now expect about $130 million to be realized through the P&L and $70 million expected to be realized as a CapEx synergy. based on the increased realization of the target we now expect about $130 million to be realized through the p&l and $70 million expected to be realized as a capex synergy This reflects a roughly $90 million increase in our in-year realized OpEx synergy expectations and a $10 million increase in our in-year CapEx synergy expectations compared to our prior expectations due to the larger in-year realized target of $200 million. this reflects a roughly $90 million increase in our in-year realized opex synergy expectations and a $10 million increase in our in-year capex synergy expectations compared to our prior expectations due to the larger in-year realized target of $200 million Shifting now to our early Q1 wins that represent the growth and success in our brokerage brands. shifting now to our early q1 wins that represent the growth and success in our brokerage brands Sotheby's International Realty sold the most expensive home in the history of the world at $350 million, while Coldwell Banker sold the most expensive home in the history of Miami-Dade County at $170 million. Both sales reinforced the combined company's authority in the luxury segment. Corcoran Sunshine, which is Corcoran's new development business, posted its strongest contract volume quarter in over 10 years with $1.5 billion in contracts signed in Q1. ERA executed its largest franchise sale transaction in 15 years. Better Homes and Gardens executed its largest franchise M&A transaction in the entire history of the brand. Christie's International Real Estate signed on eight new franchise agreements in the quarter. All for new markets, which reflects the largest quarterly expansion in the history of the brand. Sotheby's International Realty sold the most expensive home in the history of the world at $350 million, while Coldwell Banker sold the most expensive home in the history of Miami-Dade County at $170 million. sotheby's international realty sold the most expensive home in the history of the world at $350 million while coldwell banker sold the most expensive home in the history of miami-dade county at $170 million Both sales reinforced the combined company's authority in the luxury segment. both sales reinforced the combined company's authority in the luxury segment Corcoran Sunshine, which is Corcoran's new development business, posted its strongest contract volume quarter in over 10 years with $1.5 billion in contracts signed in Q1. corcoran sunshine which is corcoran's new development business posted its strongest contract volume quarter in over 10 years with $1.5 billion in contracts signed in q1 ERA executed its largest franchise sale transaction in 15 years. era executed its largest franchise sale transaction in 15 years Better Homes and Gardens executed its largest franchise M&A transaction in the entire history of the brand. better homes and gardens executed its largest franchise m&a transaction in the entire history of the brand Christie's International Real Estate signed on eight new franchise agreements in the quarter. All for new markets, which reflects the largest quarterly expansion in the history of the brand. christie's international real estate signed on eight new franchise agreements in the quarter. all for new markets which reflects the largest quarterly expansion in the history of the brand Century 21 recently executed its largest franchise sale transaction in 10 years, with our stance on home seller choice being a key reason for the broker owner, Greg Hague, choosing to join. In fact, Greg will be coaching our real estate professionals across our brands on home sale strategy given his impressive track record, which includes building a home sale strategy consulting and training company that Inc. 5000 ranked among the top 250 fastest growing privately held firms in America. Compass recruited more principal agents in Q1 than any prior Q1 in our history. We are now also scaling Compass's most effective recruiting strategies across all brands, starting with demand generation and brand specific recruiting websites that outline how our technology platform helps agents grow their business. Century 21 recently executed its largest franchise sale transaction in 10 years, with our stance on home seller choice being a key reason for the broker owner, Greg Hague, choosing to join. century 21 recently executed its largest franchise sale transaction in 10 years with our stance on home seller choice being a key reason for the broker owner greg hague choosing to join In fact, Greg will be coaching our real estate professionals across our brands on home sale strategy given his impressive track record, which includes building a home sale strategy consulting and training company that Inc. 5000 ranked among the top 250 fastest growing privately held firms in America. in fact greg will be coaching our real estate professionals across our brands on home sale strategy given his impressive track record which includes building a home sale strategy consulting and training company that inc 5000 ranked among the top 250 fastest growing privately held firms in america Compass recruited more principal agents in Q1 than any prior Q1 in our history. compass recruited more principal agents in q1 than any prior q1 in our history We are now also scaling Compass's most effective recruiting strategies across all brands, starting with demand generation and brand specific recruiting websites that outline how our technology platform helps agents grow their business. we are now also scaling compass's most effective recruiting strategies across all brands starting with demand generation and brand specific recruiting websites that outline how our technology platform helps agents grow their business Finally, Coldwell Banker's GCI retention rate in its top two quartile of agents, representing 82% of its total GCI over the trailing 12-month period, hit a 10-year high at 94.6% retention rate in Q1. In our title and escrow business, we are consolidating our operations onto a single technology platform, which we expect will unlock sizable long-term savings through centralization once completed. In our mortgage business, GRA, which was Anywhere's JV with Guaranteed Rate, achieved its highest attach quarter in two and a half years, while OriginPoint, which is Compass's JV, achieved its highest attach rate ever in Q1, and delivered its best quarter of profitability. Going forward, we see a significant opportunity to continue to improve both our attach rate and profitability in our mortgage JVs. Finally, Coldwell Banker's GCI retention rate in its top two quartile of agents, representing 82% of its total GCI over the trailing 12-month period, hit a 10-year high at 94.6% retention rate in Q1. finally coldwell banker's gci retention rate in its top two quartile of agents representing 82% of its total gci over the trailing 12-month period hit a 10-year high at 94.6% retention rate in q1 In our title and escrow business, we are consolidating our operations onto a single technology platform, which we expect will unlock sizable long-term savings through centralization once completed. in our title and escrow business we are consolidating our operations onto a single technology platform which we expect will unlock sizable long-term savings through centralization once completed In our mortgage business, GRA, which was Anywhere's JV with Guaranteed Rate, achieved its highest attach quarter in two and a half years, while OriginPoint, which is Compass's JV, achieved its highest attach rate ever in Q1, and delivered its best quarter of profitability. in our mortgage business gra which was anywhere's jv with guaranteed rate achieved its highest attach quarter in two and a half years while originpoint which is compass's jv achieved its highest attach rate ever in q1 and delivered its best quarter of profitability Going forward, we see a significant opportunity to continue to improve both our attach rate and profitability in our mortgage JVs. going forward we see a significant opportunity to continue to improve both our attach rate and profitability in our mortgage jvs Lastly, we are moving forward with our digital mortgage partnership with Rocket Mortgage, with Rocket's pre-qualification experience now embedded across all listings on compass.com. Our data and analytics team, led by Dave Crosby and supported by our chief economist Mike Simonsen, is executing a radical simplification of our significantly expanded data state. Since closing the Anywhere transaction, we've identified over 6,000 legacy reports and have already deprecated over half of them. We're on a disciplined path to standardization across the entire company to get to approximately 100 high-fidelity reports. By minimizing the number of reports, it will allow our data team to focus on critical integration tasks, and the development of proprietary insights by Q4 of this year, which we believe will provide our real estate professionals, title agents, and mortgage officers the ability to win more business in the marketplace. Lastly, we are moving forward with our digital mortgage partnership with Rocket Mortgage, with Rocket's pre-qualification experience now embedded across all listings on compass.com. lastly we are moving forward with our digital mortgage partnership with rocket mortgage with rocket's pre-qualification experience now embedded across all listings on compass.com Our data and analytics team, led by Dave Crosby and supported by our chief economist Mike Simonsen, is executing a radical simplification of our significantly expanded data state. our data and analytics team led by dave crosby and supported by our chief economist mike simonsen is executing a radical simplification of our significantly expanded data state Since closing the Anywhere transaction, we've identified over 6,000 legacy reports and have already deprecated over half of them. since closing the anywhere transaction we've identified over 6,000 legacy reports and have already deprecated over half of them We're on a disciplined path to standardization across the entire company to get to approximately 100 high-fidelity reports. we're on a disciplined path to standardization across the entire company to get to approximately 100 high-fidelity reports By minimizing the number of reports, it will allow our data team to focus on critical integration tasks, and the development of proprietary insights by Q4 of this year, which we believe will provide our real estate professionals, title agents, and mortgage officers the ability to win more business in the marketplace. by minimizing the number of reports it will allow our data team to focus on critical integration tasks and the development of proprietary insights by q4 of this year which we believe will provide our real estate professionals title agents and mortgage officers the ability to win more business in the marketplace Now turning to our Q1 2026 pro forma results. Now turning to our Q1 2026 pro forma results. now turning to our q1 2026 pro forma results Pro forma transactions were up 2.6% year-over-year compared to the market, which was flat year-over-year. This means that for 20 consecutive quarters, our brokerage business has outperformed the market on an organic basis. Pro forma brokerage GTV was up 7.3% year-over-year compared to the market that was up 1.5%. Pro forma total agent adds on a gross basis were 3,503, which was higher than Q4 2025 levels. Pro forma total agent retention in our brokerage business was 94%, flat compared to Q4 2025. Excluding agents with zero GCI in the last 12 months, pro forma agent retention would have been 97% in Q1. Pro forma transactions were up 2.6% year-over-year compared to the market, which was flat year-over-year. pro forma transactions were up 2.6% year-over-year compared to the market which was flat year-over-year This means that for 20 consecutive quarters, our brokerage business has outperformed the market on an organic basis. this means that for 20 consecutive quarters our brokerage business has outperformed the market on an organic basis Pro forma brokerage GTV was up 7.3% year-over-year compared to the market that was up 1.5%. pro forma brokerage gtv was up 7.3% year-over-year compared to the market that was up 1.5% Pro forma total agent adds on a gross basis were 3,503, which was higher than Q4 2025 levels. pro forma total agent adds on a gross basis were 3,503 which was higher than q4 2025 levels Pro forma total agent retention in our brokerage business was 94%, flat compared to Q4 2025. pro forma total agent retention in our brokerage business was 94% flat compared to q4 2025 Excluding agents with zero GCI in the last 12 months, pro forma agent retention would have been 97% in Q1. excluding agents with zero gci in the last 12 months pro forma agent retention would have been 97% in q1 Excluding agents with $20,000 or less in GCI in the last 12 months, which on average equates to less than two transactions at our price points, pro forma agent retention would have been over 98% in Q1. Pro forma productivity per agent, which we measure as GTV per agent, was up nicely year-over-year. Going forward, our brokerage recruiting and retention strategy as a combined company will be focused on productive agents as well as up-and-coming agents. We expect this to lead to a healthy level of agent adds, combined with improving agent retention and agent productivity growth. In franchise, pro forma GTV was up 4.6% year-over-year compared to housing market volumes that were up 1.5%, reflecting 310 basis points of outperformance. Excluding agents with $20,000 or less in GCI in the last 12 months, which on average equates to less than two transactions at our price points, pro forma agent retention would have been over 98% in Q1. excluding agents with $20,000 or less in gci in the last 12 months which on average equates to less than two transactions at our price points pro forma agent retention would have been over 98% in q1 Pro forma productivity per agent, which we measure as GTV per agent, was up nicely year-over-year. pro forma productivity per agent which we measure as gtv per agent was up nicely year-over-year Going forward, our brokerage recruiting and retention strategy as a combined company will be focused on productive agents as well as up-and-coming agents. going forward our brokerage recruiting and retention strategy as a combined company will be focused on productive agents as well as up-and-coming agents We expect this to lead to a healthy level of agent adds, combined with improving agent retention and agent productivity growth. we expect this to lead to a healthy level of agent adds combined with improving agent retention and agent productivity growth In franchise, pro forma GTV was up 4.6% year-over-year compared to housing market volumes that were up 1.5%, reflecting 310 basis points of outperformance. in franchise pro forma gtv was up 4.6% year-over-year compared to housing market volumes that were up 1.5% reflecting 310 basis points of outperformance Our Sotheby's International Realty and Corcoran brands continued to outperform the company average, while total franchise sales experienced a meaningful increase year-over-year. Pro forma integrated services revenue grew 11% year-over-year, with title and T&E revenue being the primary driver. The quarter benefited from strong refinance activity, with pro forma refi transactions up 100% year-over-year, while pro forma purchase transactions grew 4% year-over-year. Purchase transaction growth outperformed overall housing market growth at 0.2% year-over-year. These strong results would not have been possible without each and every member of our team. I want to thank the entire team for their focus and hard work in a quarter of significant change for our company. Now, let me provide a few thoughts on our partnership with Rocket, Redfin, and the industry's shifting stance on phased marketing. Our Sotheby's International Realty and Corcoran brands continued to outperform the company average, while total franchise sales experienced a meaningful increase year-over-year. our sotheby's international realty and corcoran brands continued to outperform the company average while total franchise sales experienced a meaningful increase year-over-year Pro forma integrated services revenue grew 11% year-over-year, with title and T&E revenue being the primary driver. pro forma integrated services revenue grew 11% year-over-year with title and t&e revenue being the primary driver The quarter benefited from strong refinance activity, with pro forma refi transactions up 100% year-over-year, while pro forma purchase transactions grew 4% year-over-year. the quarter benefited from strong refinance activity with pro forma refi transactions up 100% year-over-year while pro forma purchase transactions grew 4% year-over-year Purchase transaction growth outperformed overall housing market growth at 0.2% year-over-year. purchase transaction growth outperformed overall housing market growth at 0.2% year-over-year These strong results would not have been possible without each and every member of our team. these strong results would not have been possible without each and every member of our team I want to thank the entire team for their focus and hard work in a quarter of significant change for our company. i want to thank the entire team for their focus and hard work in a quarter of significant change for our company Now, let me provide a few thoughts on our partnership with Rocket, Redfin, and the industry's shifting stance on phased marketing. now let me provide a few thoughts on our partnership with rocket redfin and the industry's shifting stance on phased marketing First, we are pleased to see several other portals and brokerages following our lead on home seller choice and phased marketing. Sellers want more choices, not less choices. As Coming Soons are provided as an option to more sellers, they will realize they have more options and more choices on how to market a home. We as a company have consistently provided sellers with more options than our other competing brokerage firms. We believe that will help our real estate professionals continue to outperform the market and win listings with their sellers. Second, while we see others in the marketplace attempting to recreate an offering similar to ours, for several reasons, we are confident that the Compass 3-phase marketing option with the Coming Soon phase also being on Redfin is the best option for phased marketing in real estate. Here are a few reasons why. First, we are pleased to see several other portals and brokerages following our lead on home seller choice and phased marketing. first we are pleased to see several other portals and brokerages following our lead on home seller choice and phased marketing Sellers want more choices, not less choices. sellers want more choices not less choices As Coming Soons are provided as an option to more sellers, they will realize they have more options and more choices on how to market a home. as coming soons are provided as an option to more sellers they will realize they have more options and more choices on how to market a home We as a company have consistently provided sellers with more options than our other competing brokerage firms. we as a company have consistently provided sellers with more options than our other competing brokerage firms We believe that will help our real estate professionals continue to outperform the market and win listings with their sellers. we believe that will help our real estate professionals continue to outperform the market and win listings with their sellers Second, while we see others in the marketplace attempting to recreate an offering similar to ours, for several reasons, we are confident that the Compass 3-phase marketing option with the Coming Soon phase also being on Redfin is the best option for phased marketing in real estate. second while we see others in the marketplace attempting to recreate an offering similar to ours for several reasons we are confident that the compass 3-phase marketing option with the coming soon phase also being on redfin is the best option for phased marketing in real estate Here are a few reasons why. here are a few reasons why First, unlike the other option in the marketplace, all of our Coming Soon buyer inquiries are always sent directly to the listing agent, the person that knows the property the best, as opposed to when you click the contact tour or schedule appointment contact agent button, it being rediverted to a third-party agent who doesn't know the listing the best. Second, unlike the other major portals Coming Soon option, in our case, we always allow the listing agent to do showings, and we always allow open houses. That is not the case for the alternative options. Third, real estate is a local business, with our depth of inventory in major markets, we believe we'll be able to send a strong signal to consumers to search compass.com and our other brokerage websites. First, unlike the other option in the marketplace, all of our Coming Soon buyer inquiries are always sent directly to the listing agent, the person that knows the property the best, as opposed to when you click the contact tour or schedule appointment contact agent button, it being rediverted to a third-party agent who doesn't know the listing the best. first unlike the other option in the marketplace all of our coming soon buyer inquiries are always sent directly to the listing agent the person that knows the property the best as opposed to when you click the contact tour or schedule appointment contact agent button it being rediverted to a third-party agent who doesn't know the listing the best Second, unlike the other major portals Coming Soon option, in our case, we always allow the listing agent to do showings, and we always allow open houses. second unlike the other major portals coming soon option in our case we always allow the listing agent to do showings and we always allow open houses That is not the case for the alternative options. that is not the case for the alternative options Third, real estate is a local business, with our depth of inventory in major markets, we believe we'll be able to send a strong signal to consumers to search compass.com and our other brokerage websites. third real estate is a local business with our depth of inventory in major markets we believe we'll be able to send a strong signal to consumers to search compass.com and our other brokerage websites Of note, compass.com was the fastest-growing real estate website in Q1, with 38% year-over-year growth in monthly average users, and is now the sixth largest audience in real estate per Similarweb. Fourth, our agents can offer their buyers 1% off the mortgage rate through Rocket, a significant advantage, particularly in the current environment. Our advantage is being borne out in the numbers. In the Chicago metro area, which is the third largest housing market in the country by unit count, we have launched roughly 1,000 Coming Soons since we announced the partnership. This compares to virtually no unique Coming Soon inventory in the Chicago metro area that we can observe on the other portals as of last week. Of note, compass.com was the fastest-growing real estate website in Q1, with 38% year-over-year growth in monthly average users, and is now the sixth largest audience in real estate per Similarweb. of note compass.com was the fastest-growing real estate website in q1 with 38% year-over-year growth in monthly average users and is now the sixth largest audience in real estate per similarweb Fourth, our agents can offer their buyers 1% off the mortgage rate through Rocket, a significant advantage, particularly in the current environment. fourth our agents can offer their buyers 1% off the mortgage rate through rocket a significant advantage particularly in the current environment Our advantage is being borne out in the numbers. our advantage is being borne out in the numbers In the Chicago metro area, which is the third largest housing market in the country by unit count, we have launched roughly 1,000 Coming Soons since we announced the partnership. in the chicago metro area which is the third largest housing market in the country by unit count we have launched roughly 1,000 coming soons since we announced the partnership This compares to virtually no unique Coming Soon inventory in the Chicago metro area that we can observe on the other portals as of last week. this compares to virtually no unique coming soon inventory in the chicago metro area that we can observe on the other portals as of last week To date, we've sent approximately 3,000 buyer inquiries back to listing agents from Compass Coming Soon on Redfin. These inquiries charge no referral fee from Redfin to the listing agent, and all of these buyer inquiries are incremental to what our listings real estate professionals would have received without the Redfin partnership. In addition to free buyer inquiries, our real estate professionals are also receiving a minimum of 1.2 million leads from Rocket and Redfin over the next three years, with over 24,000 leads already having been given to our real estate professionals since the partnership was announced. We have also seen recruiting momentum pick up in the Compass brand since our announcement, and principal agent recruiting is off to a faster start in Q2 than expected. To date, we've sent approximately 3,000 buyer inquiries back to listing agents from Compass Coming Soon on Redfin. These inquiries charge no referral fee from Redfin to the listing agent, and all of these buyer inquiries are incremental to what our listings real estate professionals would have received without the Redfin partnership. to date we've sent approximately 3,000 buyer inquiries back to listing agents from compass coming soon on redfin. these inquiries charge no referral fee from redfin to the listing agent and all of these buyer inquiries are incremental to what our listings real estate professionals would have received without the redfin partnership In addition to free buyer inquiries, our real estate professionals are also receiving a minimum of 1.2 million leads from Rocket and Redfin over the next three years, with over 24,000 leads already having been given to our real estate professionals since the partnership was announced. in addition to free buyer inquiries our real estate professionals are also receiving a minimum of 1.2 million leads from rocket and redfin over the next three years with over 24,000 leads already having been given to our real estate professionals since the partnership was announced We have also seen recruiting momentum pick up in the Compass brand since our announcement, and principal agent recruiting is off to a faster start in Q2 than expected. we have also seen recruiting momentum pick up in the compass brand since our announcement and principal agent recruiting is off to a faster start in q2 than expected One of the reasons for this is their interest in the Redfin and Rocket partnership, as they want to benefit from these leads as well. Shifting to the earnings potential of our combined business. A common question we receive from the investment community is what the earnings profile of the combined business could be in various housing market scenarios. In our investor deck this quarter, we have provided a scenario analysis to demonstrate how we are positioned to generate resilient financial performance even in a flat housing market and capture significant upside as the market improves and once we realize our cost synergies. Importantly, these scenarios assume no agent adds, no organic share take, no margin improvement, no improvements on T&E or mortgage attach, or any contribution from leads or other ancillary revenue streams, which we view as incremental growth levers in our business beyond the housing recovery. One of the reasons for this is their interest in the Redfin and Rocket partnership, as they want to benefit from these leads as well. one of the reasons for this is their interest in the redfin and rocket partnership as they want to benefit from these leads as well Shifting to the earnings potential of our combined business. shifting to the earnings potential of our combined business A common question we receive from the investment community is what the earnings profile of the combined business could be in various housing market scenarios. a common question we receive from the investment community is what the earnings profile of the combined business could be in various housing market scenarios In our investor deck this quarter, we have provided a scenario analysis to demonstrate how we are positioned to generate resilient financial performance even in a flat housing market and capture significant upside as the market improves and once we realize our cost synergies. in our investor deck this quarter we have provided a scenario analysis to demonstrate how we are positioned to generate resilient financial performance even in a flat housing market and capture significant upside as the market improves and once we realize our cost synergies Importantly, these scenarios assume no agent adds, no organic share take, no margin improvement, no improvements on T&E or mortgage attach, or any contribution from leads or other ancillary revenue streams, which we view as incremental growth levers in our business beyond the housing recovery. importantly these scenarios assume no agent adds no organic share take no margin improvement no improvements on t&e or mortgage attach or any contribution from leads or other ancillary revenue streams which we view as incremental growth levers in our business beyond the housing recovery I also want to emphasize that this is not guidance, but these scenarios should help provide a range of expectations around the earnings power of our combined company, simply from an eventual recovery in existing home sales and once we've realized our cost synergies. Specifically, 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. I also want to emphasize that this is not guidance, but these scenarios should help provide a range of expectations around the earnings power of our combined company, simply from an eventual recovery in existing home sales and once we've realized our cost synergies. i also want to emphasize that this is not guidance but these scenarios should help provide a range of expectations around the earnings power of our combined company simply from an eventual recovery in existing home sales and once we've realized our cost synergies Specifically, 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. specifically 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. 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. 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 Lastly, we also provided an upside scenario of 6 million home sales, and at those levels, we would generate $2.5 billion in adjusted EBITDA and roughly $2 billion in unlevered free cash flow. What you can hopefully see from this analysis is that, one, even at 4.1 million existing home sales, which we believe is the trough of the cycle, we would expect the business to generate $750 million in unlevered free cash flow, giving us confidence that we can make progress in reducing leverage even in conservative scenarios. Two, once we begin the recovery up to mid-cycle levels, that the earnings growth and free cash flow potential in this business is incredibly significant. I want to end by talking about our AI strategy. Lastly, we also provided an upside scenario of 6 million home sales, and at those levels, we would generate $2.5 billion in adjusted EBITDA and roughly $2 billion in unlevered free cash flow. lastly we also provided an upside scenario of 6 million home sales and at those levels we would generate $2.5 billion in adjusted ebitda and roughly $2 billion in unlevered free cash flow What you can hopefully see from this analysis is that, one, even at 4.1 million existing home sales, which we believe is the trough of the cycle, we would expect the business to generate $750 million in unlevered free cash flow, giving us confidence that we can make progress in reducing leverage even in conservative scenarios. what you can hopefully see from this analysis is that one even at 4.1 million existing home sales which we believe is the trough of the cycle we would expect the business to generate $750 million in unlevered free cash flow giving us confidence that we can make progress in reducing leverage even in conservative scenarios Two, once we begin the recovery up to mid-cycle levels, that the earnings growth and free cash flow potential in this business is incredibly significant. two once we begin the recovery up to mid-cycle levels that the earnings growth and free cash flow potential in this business is incredibly significant I want to end by talking about our AI strategy. i want to end by talking about our ai strategy Last quarter, I touched on our three defensive pillars around AI. This includes, one, our growing base of proprietary data from our three-phase marketing listings, which cannot be scraped by foundational AI models. Two, trust, which we believe will become even more important in a world where AI agents will bring inaccurate and fake information into the market, like fake offers, fake listings, fake accounts, fake pictures, fake renderings. I'm already starting to see it. In this future, human validation will continue to be important given the high stakes, high-ticket transaction. Trust will matter even more than before. Three, positive network effects that our 330,000+ real estate professionals will create to continuously improve our agentic AI capabilities on the platform. Combined, we believe we have the attributes required to evolve with the AI landscape. Last quarter, I touched on our three defensive pillars around AI. last quarter i touched on our three defensive pillars around ai This includes, one, our growing base of proprietary data from our three-phase marketing listings, which cannot be scraped by foundational AI models. this includes one our growing base of proprietary data from our three-phase marketing listings which cannot be scraped by foundational ai models Two, trust, which we believe will become even more important in a world where AI agents will bring inaccurate and fake information into the market, like fake offers, fake listings, fake accounts, fake pictures, fake renderings. two trust which we believe will become even more important in a world where ai agents will bring inaccurate and fake information into the market like fake offers fake listings fake accounts fake pictures fake renderings I'm already starting to see it. i'm already starting to see it In this future, human validation will continue to be important given the high stakes, high-ticket transaction. in this future human validation will continue to be important given the high stakes high-ticket transaction Trust will matter even more than before. trust will matter even more than before Three, positive network effects that our 330,000 + real estate professionals will create to continuously improve our agentic AI capabilities on the platform. three positive network effects that our 330,000 + real estate professionals will create to continuously improve our agentic ai capabilities on the platform Combined, we believe we have the attributes required to evolve with the AI landscape. combined we believe we have the attributes required to evolve with the ai landscape Despite all the fears around AI, the data indicates that agent utilization is now at the highest level in recorded history. Per NAR's annual consumer profile, 91% of home sellers and 88% of home buyers choose to use a real estate professional to complete their transaction in 2025. I wanna reiterate that that is the highest level that we have ever seen in recorded history. Moreover, we're seeing the lowest level of for sale by owner listings in recorded history at just 5%. Even with AI making significant progress in the last two years, we're seeing an increase in the number of people using agents and a decrease in the number of for sale by owners listings, and both at historic levels. Despite all the fears around AI, the data indicates that agent utilization is now at the highest level in recorded history. despite all the fears around ai the data indicates that agent utilization is now at the highest level in recorded history Per NAR's annual consumer profile, 91% of home sellers and 88% of home buyers choose to use a real estate professional to complete their transaction in 2025. per nar's annual consumer profile 91% of home sellers and 88% of home buyers choose to use a real estate professional to complete their transaction in 2025 I wanna reiterate that that is the highest level that we have ever seen in recorded history. i wanna reiterate that that is the highest level that we have ever seen in recorded history Moreover, we're seeing the lowest level of for sale by owner listings in recorded history at just 5%. moreover we're seeing the lowest level of for sale by owner listings in recorded history at just 5% Even with AI making significant progress in the last two years, we're seeing an increase in the number of people using agents and a decrease in the number of for sale by owners listings, and both at historic levels. even with ai making significant progress in the last two years we're seeing an increase in the number of people using agents and a decrease in the number of for sale by owners listings and both at historic levels The data I just shared, 91% of home sellers using an agent and 88% of home buyers using an agent, that compares to a similar 90% of home sellers using an agent in 2024 and 88% of home buyers using an agent in that period as well. If you go back in time to 2005, what you'd see is 85% of home sellers using an agent and 77% of home buyers using an agent. What this data is showing is that greater access to information or better search capabilities is not the reason why consumers choose to work with an agent. Rather it's the agent's critical role in managing a highly complex, and a highly emotional transaction. One where trust matters, where it's high stakes, high value. The data I just shared, 91% of home sellers using an agent and 88% of home buyers using an agent, that compares to a similar 90% of home sellers using an agent in 2024 and 88% of home buyers using an agent in that period as well. the data i just shared 91% of home sellers using an agent and 88% of home buyers using an agent that compares to a similar 90% of home sellers using an agent in 2024 and 88% of home buyers using an agent in that period as well If you go back in time to 2005, what you'd see is 85% of home sellers using an agent and 77% of home buyers using an agent. What this data is showing is that greater access to information or better search capabilities is not the reason why consumers choose to work with an agent. if you go back in time to 2005 what you'd see is 85% of home sellers using an agent and 77% of home buyers using an agent. what this data is showing is that greater access to information or better search capabilities is not the reason why consumers choose to work with an agent Rather it's the agent's critical role in managing a highly complex, and a highly emotional transaction. rather it's the agent's critical role in managing a highly complex and a highly emotional transaction One where trust matters, where it's high stakes, high value. one where trust matters where it's high stakes high value I cannot overstate how emotional these transactions and negotiations can become. The localized nuances that are prevalent in real estate are abundant, and the nuanced deal process where no deal is the same as another, is why people use a real estate professional. Moreover, what history shows is that as information becomes more prevalent, as it did with the rise of the internet from that 2005 period, where less buyers and sellers were using an agent. As the information becomes more prevalent, where more information and data has been out there over the last two decades. With more information, you see a greater need for the average consumer to feel like they need to hire a professional to make sense of all the information and all the data. I cannot overstate how emotional these transactions and negotiations can become. i cannot overstate how emotional these transactions and negotiations can become The localized nuances that are prevalent in real estate are abundant, and the nuanced deal process where no deal is the same as another, is why people use a real estate professional. the localized nuances that are prevalent in real estate are abundant and the nuanced deal process where no deal is the same as another is why people use a real estate professional Moreover, what history shows is that as information becomes more prevalent, as it did with the rise of the internet from that 2005 period, where less buyers and sellers were using an agent. moreover what history shows is that as information becomes more prevalent as it did with the rise of the internet from that 2005 period where less buyers and sellers were using an agent As the information becomes more prevalent, where more information and data has been out there over the last two decades. as the information becomes more prevalent where more information and data has been out there over the last two decades With more information, you see a greater need for the average consumer to feel like they need to hire a professional to make sense of all the information and all the data. with more information you see a greater need for the average consumer to feel like they need to hire a professional to make sense of all the information and all the data Said simply, history shows that more information and more data in the public domain increases the demand for advice from a real estate professional. Now let me take a moment to speak about what we are doing to position ourselves and our business offensively for the AI opportunity. First, we are using AI to reduce OpEx as you would expect. In Q1 alone, our internal initiative to train Compass and their 2,300 employees on how to best use AI tools has freed up an estimated $2 million of resources by deploying targeted AI workflow automations across support, compliance, and brokerage operations. The team has identified potential annualized efficiencies in the vicinity of $23 million as part of our overall cost synergy goal. Furthermore, we are transforming our engineering organization by successfully deploying AI coding assistance and automated testing frameworks organization-wide. Said simply, history shows that more information and more data in the public domain increases the demand for advice from a real estate professional. said simply history shows that more information and more data in the public domain increases the demand for advice from a real estate professional Now let me take a moment to speak about what we are doing to position ourselves and our business offensively for the AI opportunity. now let me take a moment to speak about what we are doing to position ourselves and our business offensively for the ai opportunity First, we are using AI to reduce OpEx as you would expect. first we are using ai to reduce opex as you would expect In Q1 alone, our internal initiative to train Compass and their 2,300 employees on how to best use AI tools has freed up an estimated $2 million of resources by deploying targeted AI workflow automations across support, compliance, and brokerage operations. in q1 alone our internal initiative to train compass and their 2,300 employees on how to best use ai tools has freed up an estimated $2 million of resources by deploying targeted ai workflow automations across support compliance and brokerage operations The team has identified potential annualized efficiencies in the vicinity of $23 million as part of our overall cost synergy goal. the team has identified potential annualized efficiencies in the vicinity of $23 million as part of our overall cost synergy goal Furthermore, we are transforming our engineering organization by successfully deploying AI coding assistance and automated testing frameworks organization-wide. furthermore we are transforming our engineering organization by successfully deploying ai coding assistance and automated testing frameworks organization-wide We now estimate that 30%-40% of all new code written at Compass is produced by AI, which is helping accelerate product development velocity by 20% while keeping our technology OpEx unchanged even as we upgrade the platform for the Anywhere integration. Second, on productivity, we can help our real estate professionals, title agents, and mortgage loan officers within our ecosystem become even more efficient and gain an edge in the market by using AI. For real estate professionals, we are fully integrating Compass AI 2.0 into their workflow to create an on-demand partner designed to help unearth business opportunities and streamline their daily workflows. We now estimate that 30%-40% of all new code written at Compass is produced by AI, which is helping accelerate product development velocity by 20% while keeping our technology OpEx unchanged even as we upgrade the platform for the Anywhere integration. we now estimate that 30%-40% of all new code written at compass is produced by ai which is helping accelerate product development velocity by 20% while keeping our technology opex unchanged even as we upgrade the platform for the anywhere integration Second, on productivity, we can help our real estate professionals, title agents, and mortgage loan officers within our ecosystem become even more efficient and gain an edge in the market by using AI. second on productivity we can help our real estate professionals title agents and mortgage loan officers within our ecosystem become even more efficient and gain an edge in the market by using ai For real estate professionals, we are fully integrating Compass AI 2.0 into their workflow to create an on-demand partner designed to help unearth business opportunities and streamline their daily workflows. for real estate professionals we are fully integrating compass ai 2.0 into their workflow to create an on-demand partner designed to help unearth business opportunities and streamline their daily workflows Examples include a newly rolled out suggestion model, which suggests new steps an agent should take with their client to move their transaction along, or proactively serving up buyer and seller leads through what we call our structural advantage tools, such as reverse prospecting, make me sell, or the network tool to help a listing agent close a transaction faster. By giving our 330,000+ real estate professionals these insights in reducing the number of manual tasks they perform each week, we are enabling them to service, win, and close transactions faster. For our title agents, we are planning to leverage our significant data advantage now created by the Anywhere transaction to execute a targeted local sales approach. Examples include a newly rolled out suggestion model, which suggests new steps an agent should take with their client to move their transaction along, or proactively serving up buyer and seller leads through what we call our structural advantage tools, such as reverse prospecting, make me sell, or the network tool to help a listing agent close a transaction faster. examples include a newly rolled out suggestion model which suggests new steps an agent should take with their client to move their transaction along or proactively serving up buyer and seller leads through what we call our structural advantage tools such as reverse prospecting make me sell or the network tool to help a listing agent close a transaction faster By giving our 330,000+ real estate professionals these insights in reducing the number of manual tasks they perform each week, we are enabling them to service, win, and close transactions faster. by giving our 330,000+ real estate professionals these insights in reducing the number of manual tasks they perform each week we are enabling them to service win and close transactions faster For our title agents, we are planning to leverage our significant data advantage now created by the Anywhere transaction to execute a targeted local sales approach. for our title agents we are planning to leverage our significant data advantage now created by the anywhere transaction to execute a targeted local sales approach By layering predictive analytics into our one-click title and escrow integration, our title agents will be able to identify and intercept high probability transactions with greater precision, which we believe will improve our attach rates. For our mortgage loan officers, we can plan to apply similar predictive AI principles to capitalize on our expanded mortgage coverage. By utilizing our platform's proprietary transaction signals, we can provide loan officers with what we believe are highly qualified, high intent leads exactly when a client needs financing, giving them an edge to win the business. Ultimately, we believe AI will be an accelerant to how much business our professionals do, and we are confident that we have the assets to help them win. With that, I will now hand it over to Scott. By layering predictive analytics into our one-click title and escrow integration, our title agents will be able to identify and intercept high probability transactions with greater precision, which we believe will improve our attach rates. by layering predictive analytics into our one-click title and escrow integration our title agents will be able to identify and intercept high probability transactions with greater precision which we believe will improve our attach rates For our mortgage loan officers, we can plan to apply similar predictive AI principles to capitalize on our expanded mortgage coverage. for our mortgage loan officers we can plan to apply similar predictive ai principles to capitalize on our expanded mortgage coverage By utilizing our platform's proprietary transaction signals, we can provide loan officers with what we believe are highly qualified, high intent leads exactly when a client needs financing, giving them an edge to win the business. by utilizing our platform's proprietary transaction signals we can provide loan officers with what we believe are highly qualified high intent leads exactly when a client needs financing giving them an edge to win the business Ultimately, we believe AI will be an accelerant to how much business our professionals do, and we are confident that we have the assets to help them win. ultimately we believe ai will be an accelerant to how much business our professionals do and we are confident that we have the assets to help them win With that, I will now hand it over to Scott. with that i will now hand it over to scott

Speaker 3: Thanks, Robert. I want to start by saying thank you to our consolidated team for the extraordinary effort and collaboration put in over the past four months, which has led to the great results we're sharing today. With the Anywhere transaction closing on January 9th, Q1 was truly a transformational quarter for our company. Where possible, I'll provide some information about the contribution to our consolidated results from the acquired Anywhere businesses. However, we're integrating the entities quickly and therefore do not generally expect to break out separate results going forward. Please note that beginning this quarter, we'll also be providing additional information on an operating segment level. Our three operating segments going forward will be Brokerage, Franchise, and Integrated Services. The Brokerage segment includes the results of our owned brokerage operations that now include the Coldwell Banker, Corcoran, and Sotheby's International Realty brands. Thanks, Robert. thanks robert I want to start by saying thank you to our consolidated team for the extraordinary effort and collaboration put in over the past four months, which has led to the great results we're sharing today. i want to start by saying thank you to our consolidated team for the extraordinary effort and collaboration put in over the past four months which has led to the great results we're sharing today With the Anywhere transaction closing on January 9th, Q1 was truly a transformational quarter for our company. with the anywhere transaction closing on january 9th q1 was truly a transformational quarter for our company Where possible, I'll provide some information about the contribution to our consolidated results from the acquired Anywhere businesses. where possible i'll provide some information about the contribution to our consolidated results from the acquired anywhere businesses However, we're integrating the entities quickly and therefore do not generally expect to break out separate results going forward. however we're integrating the entities quickly and therefore do not generally expect to break out separate results going forward Please note that beginning this quarter, we'll also be providing additional information on an operating segment level. please note that beginning this quarter we'll also be providing additional information on an operating segment level Our three operating segments going forward will be Brokerage, Franchise, and Integrated Services. our three operating segments going forward will be brokerage franchise and integrated services The Brokerage segment includes the results of our owned brokerage operations that now include the Coldwell Banker, Corcoran, and Sotheby's International Realty brands. the brokerage segment includes the results of our owned brokerage operations that now include the coldwell banker corcoran and sotheby's international realty brands The franchise segment includes the results of the franchise brands we just acquired through the Anywhere transaction, as well as the Christie's International Real Estate franchise we acquired in January 2025. The Integrated Services segment includes the results of our joint title and escrow operations, as well as the operations of the Cartus relocation business that came through the Anywhere transaction. The Integrated Services segment also includes the equity method income from our 49% owned mortgage joint ventures, including the Guaranteed Rate Affinity JV from the Anywhere transaction and our OriginPoint JV. 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 more to the corporate entity or because they are shared across multiple or all of the operating segments. The franchise segment includes the results of the franchise brands we just acquired through the Anywhere transaction, as well as the Christie's International Real Estate franchise we acquired in January 2025. the franchise segment includes the results of the franchise brands we just acquired through the anywhere transaction as well as the christie's international real estate franchise we acquired in january 2025 The Integrated Services segment includes the results of our joint title and escrow operations, as well as the operations of the Cartus relocation business that came through the Anywhere transaction. The Integrated Services segment also includes the equity method income from our 49% owned mortgage joint ventures, including the Guaranteed Rate Affinity JV from the Anywhere transaction and our OriginPoint JV. the integrated services segment includes the results of our joint title and escrow operations as well as the operations of the cartus relocation business that came through the anywhere transaction. the integrated services segment also includes the equity method income from our 49% owned mortgage joint ventures including the guaranteed rate affinity jv from the anywhere transaction and our originpoint jv 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 more to the corporate entity or because they are shared across multiple or all of the operating segments. 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 more to the corporate entity or because they are shared across multiple or all of the operating segments These include expenses related to our technology, finance, legal, human resources, and executive functions. The total adjusted EBITDA for the consolidated company will be equal to the total of the segment adjusted EBITDA results for our three operating segments, less the unallocated corporate expenses. We've reclassified our prior year results on the same operating segment basis for consistency with the current period presentation. Revenue in Q1 reached $2.7 billion at the upper end of our revenue guidance range of $2.55 billion-$2.75 billion. Excluding the Q1 revenue contribution from the Anywhere transaction of about $1.2 billion, revenue increased 10.9% year-over-year. These include expenses related to our technology, finance, legal, human resources, and executive functions. these include expenses related to our technology finance legal human resources and executive functions The total adjusted EBITDA for the consolidated company will be equal to the total of the segment adjusted EBITDA results for our three operating segments, less the unallocated corporate expenses. the total adjusted ebitda for the consolidated company will be equal to the total of the segment adjusted ebitda results for our three operating segments less the unallocated corporate expenses We've reclassified our prior year results on the same operating segment basis for consistency with the current period presentation. we've reclassified our prior year results on the same operating segment basis for consistency with the current period presentation Revenue in Q1 reached $2.7 billion at the upper end of our revenue guidance range of $2.55 billion-$2.75 billion. revenue in q1 reached $2.7 billion at the upper end of our revenue guidance range of $2.55 billion-$2.75 billion Excluding the Q1 revenue contribution from the Anywhere transaction of about $1.2 billion, revenue increased 10.9% year-over-year. excluding the q1 revenue contribution from the anywhere transaction of about $1.2 billion revenue increased 10.9% year-over-year We are very pleased with this result as Q1 was a tough year-over-year quarterly comp in 2026, as on a Compass standalone basis, we grew organic revenue in Q1 2025 by 14.6% compared to Q1 2024. Brokerage segment revenue was $2.467 billion for Q1. On a pro forma basis, brokerage segment revenue increased 7.1% in Q1 2026 compared to Q1 2025. Gross transaction value for the brokerage segment was $97.3 billion in the first quarter. On a pro forma basis, brokerage segment GTV was up 7.3% year-over-year, a favorable comparison to the market that was at 1.5%. We are very pleased with this result as Q1 was a tough year-over-year quarterly comp in 2026, as on a Compass standalone basis, we grew organic revenue in Q1 2025 by 14.6% compared to Q1 2024. we are very pleased with this result as q1 was a tough year-over-year quarterly comp in 2026 as on a compass standalone basis we grew organic revenue in q1 2025 by 14.6% compared to q1 2024 Brokerage segment revenue was $2.467 billion for Q1. brokerage segment revenue was $2.467 billion for q1 On a pro forma basis, brokerage segment revenue increased 7.1% in Q1 2026 compared to Q1 2025. on a pro forma basis brokerage segment revenue increased 7.1% in q1 2026 compared to q1 2025 Gross transaction value for the brokerage segment was $97.3 billion in the first quarter. gross transaction value for the brokerage segment was $97.3 billion in the first quarter On a pro forma basis, brokerage segment GTV was up 7.3% year-over-year, a favorable comparison to the market that was at 1.5%. on a pro forma basis brokerage segment gtv was up 7.3% year-over-year a favorable comparison to the market that was at 1.5% On a consolidated basis, including Anywhere, our average selling price was $978,000 for the quarter, representing a decrease of about 8% from a year ago, as Anywhere's brokerage business has slightly lower average selling prices. Commissions and other related expense as a percentage of our brokerage segment revenue improved to 81.4% for the quarter, compared to 83.2% in Q1 of last year, as Anywhere's brokerage operations operate with slightly lower commission rates than Compass's brokerage operations. On a pro forma basis, commissions and other related expenses as a percentage of our brokerage segment revenue was 81.3% in Q1, compared to 81.0% in Q1 of last year. On a consolidated basis, including Anywhere, our average selling price was $978,000 for the quarter, representing a decrease of about 8% from a year ago, as Anywhere's brokerage business has slightly lower average selling prices. on a consolidated basis including anywhere our average selling price was $978,000 for the quarter representing a decrease of about 8% from a year ago as anywhere's brokerage business has slightly lower average selling prices Commissions and other related expense as a percentage of our brokerage segment revenue improved to 81.4% for the quarter, compared to 83.2% in Q1 of last year, as Anywhere's brokerage operations operate with slightly lower commission rates than Compass's brokerage operations. commissions and other related expense as a percentage of our brokerage segment revenue improved to 81.4% for the quarter compared to 83.2% in q1 of last year as anywhere's brokerage operations operate with slightly lower commission rates than compass's brokerage operations On a pro forma basis, commissions and other related expenses as a percentage of our brokerage segment revenue was 81.3% in Q1, compared to 81.0% in Q1 of last year. on a pro forma basis commissions and other related expenses as a percentage of our brokerage segment revenue was 81.3% in q1 compared to 81.0% in q1 of last year Pro forma franchise segment GTV was up 4.6% year-over-year compared to a housing market volume that was up 1.5%. Finally, pro forma integrated services revenue grew 11% year-over-year, with title and escrow revenue being the primary driver. Our total non-GAAP operating expenses were $641 million in Q1, an increase from $236 million of OpEx in the year-ago period, driven by the operating expenses assumed in the Anywhere transaction. Note that this OpEx figure for Q1 of $641 million excludes Anywhere's expenses for the first eight days of the quarter prior to the transaction closing, or about $40 million of expense. Pro forma franchise segment GTV was up 4.6% year-over-year compared to a housing market volume that was up 1.5%. pro forma franchise segment gtv was up 4.6% year-over-year compared to a housing market volume that was up 1.5% Finally, pro forma integrated services revenue grew 11% year-over-year, with title and escrow revenue being the primary driver. finally pro forma integrated services revenue grew 11% year-over-year with title and escrow revenue being the primary driver Our total non-GAAP operating expenses were $641 million in Q1, an increase from $236 million of OpEx in the year-ago period, driven by the operating expenses assumed in the Anywhere transaction. our total non-gaap operating expenses were $641 million in q1 an increase from $236 million of opex in the year-ago period driven by the operating expenses assumed in the anywhere transaction Note that this OpEx figure for Q1 of $641 million excludes Anywhere's expenses for the first eight days of the quarter prior to the transaction closing, or about $40 million of expense. note that this opex figure for q1 of $641 million excludes anywhere's expenses for the first eight days of the quarter prior to the transaction closing or about $40 million of expense Adjusted EBITDA for Q1 was $61 million, a record level of adjusted EBITDA for any first quarter period in our history, exceeding the high end of our $15 million-$35 million guidance range and a strong improvement of 280% from adjusted EBITDA of $16 million a year ago. Last quarter, I talked about the impact of Anywhere's LTIP, which is comprised of cash-settled RSUs that require mark-to-market accounting through the P&L. The run-up in Anywhere stock price at the end of 2025 led to higher operating expenses in the P&L. Since these LTIP awards started to be indexed off of Compass's stock following the closing of the merger, we expected that elevated level to continue into Q1, which is built into our Q1 guide. Adjusted EBITDA for Q1 was $61 million, a record level of adjusted EBITDA for any first quarter period in our history, exceeding the high end of our $15 million-$35 million guidance range and a strong improvement of 280% from adjusted EBITDA of $16 million a year ago. adjusted ebitda for q1 was $61 million a record level of adjusted ebitda for any first quarter period in our history exceeding the high end of our $15 million-$35 million guidance range and a strong improvement of 280% from adjusted ebitda of $16 million a year ago Last quarter, I talked about the impact of Anywhere's LTIP, which is comprised of cash-settled RSUs that require mark-to-market accounting through the P&L. last quarter i talked about the impact of anywhere's ltip which is comprised of cash-settled rsus that require mark-to-market accounting through the p&l The run-up in Anywhere stock price at the end of 2025 led to higher operating expenses in the P&L. the run-up in anywhere stock price at the end of 2025 led to higher operating expenses in the p&l Since these LTIP awards started to be indexed off of Compass's stock following the closing of the merger, we expected that elevated level to continue into Q1, which is built into our Q1 guide. since these ltip awards started to be indexed off of compass's stock following the closing of the merger we expected that elevated level to continue into q1 which is built into our q1 guide Given the decrease in Compass's stock price from the time we issued our Q1 guidance in late February to the stock price as of March 31st, the actual expense from the LTIP wound up being $19 million lower than expected, which benefited adjusted EBITDA in Q1. Even after excluding the $19 million benefit from the LTIP, adjusted EBITDA would have been $42 million. This result still exceeded the high end of our adjusted EBITDA guidance range in the quarter, driven by higher-than-expected revenue and some other favorability in operating expenses, including slightly better realization of our cost synergies in the quarter. Several items were excluded from adjusted EBITDA as follows. During the quarter as expected, we incurred $183 million of transaction and integration expenses related to the Anywhere transaction. Given the decrease in Compass's stock price from the time we issued our Q1 guidance in late February to the stock price as of March 31st, the actual expense from the LTIP wound up being $19 million lower than expected, which benefited adjusted EBITDA in Q1. given the decrease in compass's stock price from the time we issued our q1 guidance in late february to the stock price as of march 31st the actual expense from the ltip wound up being $19 million lower than expected which benefited adjusted ebitda in q1 Even after excluding the $19 million benefit from the LTIP, adjusted EBITDA would have been $42 million. even after excluding the $19 million benefit from the ltip adjusted ebitda would have been $42 million This result still exceeded the high end of our adjusted EBITDA guidance range in the quarter, driven by higher-than-expected revenue and some other favorability in operating expenses, including slightly better realization of our cost synergies in the quarter. this result still exceeded the high end of our adjusted ebitda guidance range in the quarter driven by higher-than-expected revenue and some other favorability in operating expenses including slightly better realization of our cost synergies in the quarter Several items were excluded from adjusted EBITDA as follows. several items were excluded from adjusted ebitda as follows During the quarter as expected, we incurred $183 million of transaction and integration expenses related to the Anywhere transaction. during the quarter as expected we incurred $183 million of transaction and integration expenses related to the anywhere transaction This includes expenses such as investment banking, legal fees, and severance costs, including $61 million of stock-based compensation expense, primarily related to the change of control severance provisions from Anywhere's former executives. We do expect additional expenses in this line item throughout the year as we continue our cost synergy and integration efforts, but not near the level seen in Q1. You'll notice an elevated level of non-cash depreciation and amortization expense this quarter at $163 million, up from $29 million a year ago. This increase is driven by the additional intangible assets and fixed assets we assumed in the Anywhere transaction, and this level of non-cash depreciation and amortization expense will continue in the future. Stock-based compensation expense in the quarter was $47 million, excluding the aforementioned $61 million day one charge related to Anywhere's former executives. This includes expenses such as investment banking, legal fees, and severance costs, including $61 million of stock-based compensation expense, primarily related to the change of control severance provisions from Anywhere's former executives. this includes expenses such as investment banking legal fees and severance costs including $61 million of stock-based compensation expense primarily related to the change of control severance provisions from anywhere's former executives We do expect additional expenses in this line item throughout the year as we continue our cost synergy and integration efforts, but not near the level seen in Q1. we do expect additional expenses in this line item throughout the year as we continue our cost synergy and integration efforts but not near the level seen in q1 You'll notice an elevated level of non-cash depreciation and amortization expense this quarter at $163 million, up from $29 million a year ago. you'll notice an elevated level of non-cash depreciation and amortization expense this quarter at $163 million up from $29 million a year ago This increase is driven by the additional intangible assets and fixed assets we assumed in the Anywhere transaction, and this level of non-cash depreciation and amortization expense will continue in the future. this increase is driven by the additional intangible assets and fixed assets we assumed in the anywhere transaction and this level of non-cash depreciation and amortization expense will continue in the future Stock-based compensation expense in the quarter was $47 million, excluding the aforementioned $61 million day one charge related to Anywhere's former executives. stock-based compensation expense in the quarter was $47 million excluding the aforementioned $61 million day one charge related to anywhere's former executives Last quarter, I guided you that you should expect stock-based compensation on a consolidated basis will not exceed $50 million in any future quarter beginning in Q2, and that continues to be our expectation. Finally, during the quarter, we recognized a $401 million one-time non-cash deferred tax benefit related to the reversal of valuation allowances on our deferred tax assets. This reversal was related to the establishment of deferred tax liabilities for the recognition of intangible assets from the Anywhere transaction that are nondeductible for tax purposes. This $401 million deferred tax benefit offset the other non-cash expenses, and actually pushed us into a GAAP net income position this quarter of $22 million compared to GAAP net loss of $51 million a year ago. Last quarter, I guided you that you should expect stock-based compensation on a consolidated basis will not exceed $50 million in any future quarter beginning in Q2, and that continues to be our expectation. last quarter i guided you that you should expect stock-based compensation on a consolidated basis will not exceed $50 million in any future quarter beginning in q2, and that continues to be our expectation Finally, during the quarter, we recognized a $401 million one-time non-cash deferred tax benefit related to the reversal of valuation allowances on our deferred tax assets. finally during the quarter we recognized a $401 million one-time non-cash deferred tax benefit related to the reversal of valuation allowances on our deferred tax assets This reversal was related to the establishment of deferred tax liabilities for the recognition of intangible assets from the Anywhere transaction that are nondeductible for tax purposes. this reversal was related to the establishment of deferred tax liabilities for the recognition of intangible assets from the anywhere transaction that are nondeductible for tax purposes This $401 million deferred tax benefit offset the other non-cash expenses, and actually pushed us into a GAAP net income position this quarter of $22 million compared to GAAP net loss of $51 million a year ago. this $401 million deferred tax benefit offset the other non-cash expenses and actually pushed us into a gaap net income position this quarter of $22 million compared to gaap net loss of $51 million a year ago Our basic weighted average share count for the first quarter was $734 million shares, just slightly above the guidance range of $720 million-$730 million shares. As expected, free cash flow was negative at $168 million in the quarter, driven by the Anywhere transaction and integration expenses, including the transaction costs incurred by Anywhere prior to the closing of the transaction that were paid on or subsequent to the closing date. That said, we ended the quarter in a strong cash position with $484 million of cash on the balance sheet, an increase of $285 million from year-end. Our basic weighted average share count for the first quarter was $734 million shares, just slightly above the guidance range of $720 million-$730 million shares. our basic weighted average share count for the first quarter was $734 million shares just slightly above the guidance range of $720 million-$730 million shares As expected, free cash flow was negative at $168 million in the quarter, driven by the Anywhere transaction and integration expenses, including the transaction costs incurred by Anywhere prior to the closing of the transaction that were paid on or subsequent to the closing date. as expected free cash flow was negative at $168 million in the quarter driven by the anywhere transaction and integration expenses including the transaction costs incurred by anywhere prior to the closing of the transaction that were paid on or subsequent to the closing date That said, we ended the quarter in a strong cash position with $484 million of cash on the balance sheet, an increase of $285 million from year-end. that said we ended the quarter in a strong cash position with $484 million of cash on the balance sheet an increase of $285 million from year-end Cash increase was driven by the $880 million in net proceeds from the convertible debt offering, offset by the use of $345 million in the Anywhere transaction related to the payoff of their revolver, net of cash acquired from their balance sheet. At the end of Q1, we had no outstanding borrowings on our $500 million revolver, we may remain well within our net leverage ratio covenant, which is the primary financial covenant on the revolver. As Robert touched on early, we have continued to make strong early progress on cost synergies. We have already actioned over $250 million of our cost synergy target, which was previously our year one target. Cash increase was driven by the $880 million in net proceeds from the convertible debt offering, offset by the use of $345 million in the Anywhere transaction related to the payoff of their revolver, net of cash acquired from their balance sheet. cash increase was driven by the $880 million in net proceeds from the convertible debt offering offset by the use of $345 million in the anywhere transaction related to the payoff of their revolver net of cash acquired from their balance sheet At the end of Q1, we had no outstanding borrowings on our $500 million revolver, we may remain well within our net leverage ratio covenant, which is the primary financial covenant on the revolver. at the end of q1 we had no outstanding borrowings on our $500 million revolver we may remain well within our net leverage ratio covenant which is the primary financial covenant on the revolver As Robert touched on early, we have continued to make strong early progress on cost synergies. as robert touched on early we have continued to make strong early progress on cost synergies We have already actioned over $250 million of our cost synergy target, which was previously our year one target. we have already actioned over $250 million of our cost synergy target which was previously our year one target As a result, we've now increased our year one action target from $250 million-$300 million and raised our three-year action target from $400 million-$500 million. Last quarter, we guided to an expectation to realize about $100 million of the cost synergies in 2026, but that we now expect to realize about $200 million in 2026. About two-thirds of this amount, or $130 million, will be reflected as reduced operating expenses in 2026, benefiting adjusted EBITDA and cash flow. The remaining one-third, 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, we've now increased our year one action target from $250 million - $300 million and raised our three-year action target from $400 million - $500 million. as a result we've now increased our year one action target from $250 million - $300 million and raised our three-year action target from $400 million - $500 million Last quarter, we guided to an expectation to realize about $100 million of the cost synergies in 2026, but that we now expect to realize about $200 million in 2026. last quarter we guided to an expectation to realize about $100 million of the cost synergies in 2026 but that we now expect to realize about $200 million in 2026 About two-thirds of this amount, or $130 million, will be reflected as reduced operating expenses in 2026, benefiting adjusted EBITDA and cash flow. about two-thirds of this amount or $130 million will be reflected as reduced operating expenses in 2026 benefiting adjusted ebitda and cash flow The remaining one-third, or about $70 million, will be reflected as lower CapEx, which won't directly benefit adjusted EBITDA but will benefit free cash flow. the remaining one-third or about $70 million will be reflected as lower capex which won't directly benefit adjusted ebitda but will benefit free cash flow As I discussed last quarter, the reason why a portion of the cost synergies will be realized through CapEx is because Anywhere historically capitalized a large amount of employee and contract labor to its balance sheet, approximately $80 million in 2025. As part of our cost synergy work, a significant portion of Anywhere's technology projects that had historically been subject to capitalization will be cut as we shift the technology focus to the Compass platform. Importantly, as we've already made significant progress on the CapEx portion of our synergies, the vast majority of future actions over the next three years will generally all benefit the P&L and adjusted EBITDA. Now turning to financial guidance for Q2. For the second quarter of 2026, we expect consolidated revenue in the range of $4 billion-$4.2 billion. As I discussed last quarter, the reason why a portion of the cost synergies will be realized through CapEx is because Anywhere historically capitalized a large amount of employee and contract labor to its balance sheet, approximately $80 million in 2025. as i discussed last quarter the reason why a portion of the cost synergies will be realized through capex is because anywhere historically capitalized a large amount of employee and contract labor to its balance sheet approximately $80 million in 2025 As part of our cost synergy work, a significant portion of Anywhere's technology projects that had historically been subject to capitalization will be cut as we shift the technology focus to the Compass platform. as part of our cost synergy work a significant portion of anywhere's technology projects that had historically been subject to capitalization will be cut as we shift the technology focus to the compass platform Importantly, as we've already made significant progress on the CapEx portion of our synergies, the vast majority of future actions over the next three years will generally all benefit the P&L and adjusted EBITDA. importantly as we've already made significant progress on the capex portion of our synergies the vast majority of future actions over the next three years will generally all benefit the p&l and adjusted ebitda Now turning to financial guidance for Q2. now turning to financial guidance for q2 For the second quarter of 2026, we expect consolidated revenue in the range of $4 billion-$4.2 billion. for the second quarter of 2026 we expect consolidated revenue in the range of $4 billion-$4.2 billion We expect second quarter consolidated adjusted EBITDA to be in the range of $310 million-$350 million. For the full year, we expect non-GAAP operating expenses in the range of $2.7 billion-$2.75 billion when considering the actual OpEx of $641 million for Q1. Included in the full-year OpEx range is the 3%-4% OpEx inflation we typically expect and the $130 million of the OpEx synergies we expect to realize through the P&L. On average, the OpEx for Qs two, three, and four reflects a step-up from the OpEx level of $641 million for Q1 for a few reasons. First, OpEx in Q1 excluded eight days of Anywhere's operating expenses due to the transaction closing on January 9th. We expect second quarter consolidated adjusted EBITDA to be in the range of $310 million-$350 million. we expect second quarter consolidated adjusted ebitda to be in the range of $310 million-$350 million For the full year, we expect non-GAAP operating expenses in the range of $2.7 billion-$2.75 billion when considering the actual OpEx of $641 million for Q1. for the full year we expect non-gaap operating expenses in the range of $2.7 billion-$2.75 billion when considering the actual opex of $641 million for q1 Included in the full-year OpEx range is the 3%-4% OpEx inflation we typically expect and the $130 million of the OpEx synergies we expect to realize through the P&L. included in the full-year opex range is the 3%-4% opex inflation we typically expect and the $130 million of the opex synergies we expect to realize through the p&l On average, the OpEx for Qs two, three, and four reflects a step-up from the OpEx level of $641 million for Q1 for a few reasons. on average the opex for qs two three and four reflects a step-up from the opex level of $641 million for q1 for a few reasons First, OpEx in Q1 excluded eight days of Anywhere's operating expenses due to the transaction closing on January 9th. first opex in q1 excluded eight days of anywhere's operating expenses due to the transaction closing on january 9th Second, our annual employee compensation adjustments occur at the end of March, leading to a step-up of these payroll expenses starting in Q2 of each year. Offsetting these natural increases would be the higher P&L realization of synergies in the second, third, and fourth quarters compared to the cost synergy realization in Q1, which was lower. We expect our weighted average share count for the second quarter to be between $755 million-$760 million shares. This is a step-up from Q1, as the shares issued for the Anywhere transaction were only weighted for the period post-closing January 9th. Finally, a few thoughts on cash flow and debt levels. As I talked about last quarter, we fully expected to report negative free cash flow in the first quarter from the Anywhere transaction and integration cost spends. Second, our annual employee compensation adjustments occur at the end of March, leading to a step-up of these payroll expenses starting in Q2 of each year. second our annual employee compensation adjustments occur at the end of march leading to a step-up of these payroll expenses starting in q2 of each year Offsetting these natural increases would be the higher P&L realization of synergies in the second, third, and fourth quarters compared to the cost synergy realization in Q1, which was lower. offsetting these natural increases would be the higher p&l realization of synergies in the second third and fourth quarters compared to the cost synergy realization in q1 which was lower We expect our weighted average share count for the second quarter to be between $755 million-$760 million shares. we expect our weighted average share count for the second quarter to be between $755 million-$760 million shares This is a step-up from Q1, as the shares issued for the Anywhere transaction were only weighted for the period post-closing January 9th. this is a step-up from q1 as the shares issued for the anywhere transaction were only weighted for the period post-closing january 9th Finally, a few thoughts on cash flow and debt levels. finally a few thoughts on cash flow and debt levels As I talked about last quarter, we fully expected to report negative free cash flow in the first quarter from the Anywhere transaction and integration cost spends. as i talked about last quarter we fully expected to report negative free cash flow in the first quarter from the anywhere transaction and integration cost spends We expect to be free cash flow positive for the balance of the year. However, Q2 could be close to free cash flow breakeven or maybe even slightly negative based on the timing of severance and other payments to achieve our cost synergies, the timing of the semiannual interest payments on our debt, which are concentrated in the second and fourth quarters of the year, and the timing of certain legal payments related to Anywhere, including the $54 million NAR-related class action settlement that is still open and expected to be paid in the near term. We expect to be free cash flow positive for the balance of the year. we expect to be free cash flow positive for the balance of the year However, Q2 could be close to free cash flow breakeven or maybe even slightly negative based on the timing of severance and other payments to achieve our cost synergies, the timing of the semiannual interest payments on our debt, which are concentrated in the second and fourth quarters of the year, and the timing of certain legal payments related to Anywhere, including the $54 million NAR-related class action settlement that is still open and expected to be paid in the near term. however q2 could be close to free cash flow breakeven or maybe even slightly negative based on the timing of severance and other payments to achieve our cost synergies the timing of the semiannual interest payments on our debt which are concentrated in the second and fourth quarters of the year and the timing of certain legal payments related to anywhere including the $54 million nar-related class action settlement that is still open and expected to be paid in the near term That said, we expect to deliver strong free cash flow in Q3 and Q4 of this year, which should put us in a cash position to deliver positive free cash flow on a full-year basis and give us a clear path to prioritize aggressively delevering our balance sheet, which remains a high priority for us. Our first target in delevering is the highest cost tranche in our capital structure, the $500 million of 9.75% notes. These notes can't be prepaid today and will first become callable on April 15th, 2027. That said, we expect to deliver strong free cash flow in Q3 and Q4 of this year, which should put us in a cash position to deliver positive free cash flow on a full-year basis and give us a clear path to prioritize aggressively delevering our balance sheet, which remains a high priority for us. that said we expect to deliver strong free cash flow in q3 and q4 of this year which should put us in a cash position to deliver positive free cash flow on a full-year basis and give us a clear path to prioritize aggressively delevering our balance sheet which remains a high priority for us Our first target in delevering is the highest cost tranche in our capital structure, the $500 million of 9.75% notes. our first target in delevering is the highest cost tranche in our capital structure the $500 million of 9.75% notes These notes can't be prepaid today and will first become callable on April 15th, 2027. these notes can't be prepaid today and will first become callable on april 15th 2027 The bonds will carry a redemption premium of 4 and 7/8% over par. While this redemption premium will cost us $25 million in cash, it'll save us nearly $50 million in annual interest cost. It's a good use of cash. April 15th of next year is circled on our calendar, and assuming cash flows materialize as we expect, we'll be taking out the full tranche of the 9.75% notes in Q2 of next year. In the meantime, we'll build cash on the balance sheet while earning mid 3% returns in short-term treasuries. To wrap up my comments, in early April, Moody's and S&P initiated credit ratings on Compass, as prior to this point, Compass had no debt and therefore had no credit ratings. The bonds will carry a redemption premium of 4 and 7/8% over par. the bonds will carry a redemption premium of 4 and 7/8% over par While this redemption premium will cost us $25 million in cash, it'll save us nearly $50 million in annual interest cost. while this redemption premium will cost us $25 million in cash it'll save us nearly $50 million in annual interest cost It's a good use of cash. it's a good use of cash April 15th of next year is circled on our calendar, and assuming cash flows materialize as we expect, we'll be taking out the full tranche of the 9.75% notes in Q2 of next year. april 15th of next year is circled on our calendar and assuming cash flows materialize as we expect we'll be taking out the full tranche of the 9.75% notes in q2 of next year In the meantime, we'll build cash on the balance sheet while earning mid 3% returns in short-term treasuries. in the meantime we'll build cash on the balance sheet while earning mid 3% returns in short-term treasuries To wrap up my comments, in early April, Moody's and S&P initiated credit ratings on Compass, as prior to this point, Compass had no debt and therefore had no credit ratings. to wrap up my comments in early april moody's and s&p initiated credit ratings on compass as prior to this point compass had no debt and therefore had no credit ratings Their respective reviews concluded a month ago, and S&P initiated a B+ corporate rating, and Moody's initiated a B2 corporate rating, and each issued positive outlooks on Compass Inc., which were upgrades from where Anywhere was rated on a standalone basis before the transaction. Additionally, ratings on the outstanding bonds were each upgraded between two to three notches. We're pleased to see that two of the big three credit rating agencies have come out with positive outlooks on the cash flow generation capabilities of Compass and Anywhere on a combined basis. Before I turn the call over to begin Q&A, we'll be attending the BTIG conference on May 7th and the JPMorgan TMT conference in Boston on May 18th, and hope to see you there. Their respective reviews concluded a month ago, and S&P initiated a B+ corporate rating, and Moody's initiated a B2 corporate rating, and each issued positive outlooks on Compass Inc., which were upgrades from where Anywhere was rated on a standalone basis before the transaction. their respective reviews concluded a month ago and s&p initiated a b+ corporate rating and moody's initiated a b2 corporate rating and each issued positive outlooks on compass inc which were upgrades from where anywhere was rated on a standalone basis before the transaction Additionally, ratings on the outstanding bonds were each upgraded between two to three notches. additionally ratings on the outstanding bonds were each upgraded between two to three notches We're pleased to see that two of the big three credit rating agencies have come out with positive outlooks on the cash flow generation capabilities of Compass and Anywhere on a combined basis. we're pleased to see that two of the big three credit rating agencies have come out with positive outlooks on the cash flow generation capabilities of compass and anywhere on a combined basis Before I turn the call over to begin Q&A, we'll be attending the BTIG conference on May 7th and the JPMorgan TMT conference in Boston on May 18th, and hope to see you there. before i turn the call over to begin q&a we'll be attending the btig conference on may 7th and the jpmorgan tmt conference in boston on may 18th and hope to see you there

Speaker 4: All right. Thank you, everyone. This is Soham. For the Q&A portion of the call, we're gonna take questions that we received via email in the text box. Apologies again for the technical difficulties. I guess the first question is from Jason Helfstein from Oppenheimer. You know, how should we think about the timing of Anywhere's agents getting access to the Compass' technology platform and what do you expect in terms of adoption rate? All right. all right Thank you, everyone. thank you everyone This is Soham. this is soham For the Q&A portion of the call, we're gonna take questions that we received via email in the text box. for the q&a portion of the call we're gonna take questions that we received via email in the text box Apologies again for the technical difficulties. apologies again for the technical difficulties I guess the first question is from Jason Helfstein from Oppenheimer. i guess the first question is from jason helfstein from oppenheimer You know, how should we think about the timing of Anywhere's agents getting access to the Compass' technology platform and what do you expect in terms of adoption rate? you know how should we think about the timing of anywhere's agents getting access to the compass' technology platform and what do you expect in terms of adoption rate

Speaker 2: Yeah, thank you for the question. The Anywhere owned brokerage will get the technology starting next month, and then more in each month following, with everybody getting it by the 1st week of September, if not earlier, everyone in the owned operation. The franchise affiliate business will start getting it in January, and it will be released over the following two months as well, so in advance of the spring market. Yeah, thank you for the question. yeah thank you for the question The Anywhere owned brokerage will get the technology starting next month, and then more in each month following, with everybody getting it by the 1st week of September, if not earlier, everyone in the owned operation. the anywhere owned brokerage will get the technology starting next month and then more in each month following with everybody getting it by the 1st week of september if not earlier everyone in the owned operation The franchise affiliate business will start getting it in January, and it will be released over the following two months as well, so in advance of the spring market. the franchise affiliate business will start getting it in january and it will be released over the following two months as well so in advance of the spring market

Speaker 4: Great. The second one from Jason is, have you seen the uptake of Three-Phased Marketing since you settled with Zillow and launched the Redfin partnership? Great. great The second one from Jason is, have you seen the uptake of Three-Phased Marketing since you settled with Zillow and launched the Redfin partnership? the second one from jason is have you seen the uptake of three-phased marketing since you settled with zillow and launched the redfin partnership

Speaker 2: Yes, we've seen an uptick in the Three-Phased Marketing. It's been modest as, you know, you're in the middle of a spring market when usually it's more towards the third phase, but we've definitely seen an increase. Our Coming Soons went from, I think it was low 20s to mid-30s, and I expect it to be much higher in the months ahead. My expectation is that 80% of our listings will go through the Coming Soon phase. Yes, we've seen an uptick in the Three-Phased Marketing. yes we've seen an uptick in the three-phased marketing It's been modest as, you know, you're in the middle of a spring market when usually it's more towards the third phase, but we've definitely seen an increase. it's been modest as you know you're in the middle of a spring market when usually it's more towards the third phase but we've definitely seen an increase Our Coming Soons went from, I think it was low 20s to mid-30s, and I expect it to be much higher in the months ahead. our coming soons went from i think it was low 20s to mid-30s and i expect it to be much higher in the months ahead My expectation is that 80% of our listings will go through the Coming Soon phase. my expectation is that 80% of our listings will go through the coming soon phase

Speaker 4: Great. Great. great

Speaker 2: The expectation comes from where, before the restrictive rules that were put in place, i.e. Clear Cooperation, we had 90% of our listings start off as Coming Soons. The expectation comes from where, before the restrictive rules that were put in place, i.e. the expectation comes from where before the restrictive rules that were put in place i.e Clear Cooperation, we had 90% of our listings start off as Coming Soons. clear cooperation we had 90% of our listings start off as coming soons

Speaker 4: Okay. Next one's from Dae Lee from JPMorgan. You've gone from managing one brand to multiple brands across owned brokerage and franchise network. That's now larger than your brokerage by transaction volume. That's a step change in complexity. What's the tangible benefit of maintaining distinct brands and catering to fundamentally different needs of agents spanning different brands and models? Okay. okay Next one's from Dae Lee from JPMorgan. next one's from dae lee from jpmorgan You've gone from managing one brand to multiple brands across owned brokerage and franchise network. you've gone from managing one brand to multiple brands across owned brokerage and franchise network That's now larger than your brokerage by transaction volume. that's now larger than your brokerage by transaction volume That's a step change in complexity. that's a step change in complexity What's the tangible benefit of maintaining distinct brands and catering to fundamentally different needs of agents spanning different brands and models? what's the tangible benefit of maintaining distinct brands and catering to fundamentally different needs of agents spanning different brands and models

Speaker 2: I think part of, you know, in your question is the answer. You know, our customers are agents, right? You said agents have different needs, we need to serve those needs. One of the needs that people have is a desire to have a local culture, local traditions, local beliefs, and a local unique brand. This allows being able to support different brands allows us to serve more agents in the markets that we're in. If our customers are agents, I don't think I've heard an agent say they want us to merge all the brands, as an example, but I have heard agents say that they want us to maintain their brands, and we've given them that commitment. I think part of, you know, in your question is the answer. i think part of you know in your question is the answer You know, our customers are agents, right? you know our customers are agents right You said agents have different needs, we need to serve those needs. you said agents have different needs we need to serve those needs One of the needs that people have is a desire to have a local culture, local traditions, local beliefs, and a local unique brand. one of the needs that people have is a desire to have a local culture local traditions local beliefs and a local unique brand This allows being able to support different brands allows us to serve more agents in the markets that we're in. this allows being able to support different brands allows us to serve more agents in the markets that we're in If our customers are agents, I don't think I've heard an agent say they want us to merge all the brands, as an example, but I have heard agents say that they want us to maintain their brands, and we've given them that commitment. if our customers are agents i don't think i've heard an agent say they want us to merge all the brands as an example but i have heard agents say that they want us to maintain their brands and we've given them that commitment The technology platform is the reason why it's taking the time it is taking to roll out is, you know, half of the reason is so that it can work in a brand agnostic way. With that flexibility that we're bringing, quite frankly, just towards this summer, it can serve different brands without any more investment. In the same way Shopify is able to support a bunch of different brands, you know, our platform should be able to support brands as well. The technology platform is the reason why it's taking the time it is taking to roll out is, you know, half of the reason is so that it can work in a brand agnostic way. the technology platform is the reason why it's taking the time it is taking to roll out is you know half of the reason is so that it can work in a brand agnostic way With that flexibility that we're bringing, quite frankly, just towards this summer, it can serve different brands without any more investment. with that flexibility that we're bringing quite frankly just towards this summer it can serve different brands without any more investment In the same way Shopify is able to support a bunch of different brands, you know, our platform should be able to support brands as well. in the same way shopify is able to support a bunch of different brands you know our platform should be able to support brands as well

Speaker 4: Okay. The second one from Dae Lee is, how much incremental synergy opportunity remains beyond the $500 million? Okay. okay The second one from Dae Lee is, how much incremental synergy opportunity remains beyond the $500 million? the second one from dae lee is how much incremental synergy opportunity remains beyond the $500 million

Speaker 2: There is. Well, yeah. I'll start, and I'll pass it on. There is incremental opportunity, but I wouldn't expect another increase in any time in the near future. There is. there is Well, yeah. well yeah I'll start, and I'll pass it on. i'll start and i'll pass it on There is incremental opportunity, but I wouldn't expect another increase in any time in the near future. there is incremental opportunity but i wouldn't expect another increase in any time in the near future

Speaker 3: Yeah, I was gonna follow up with the same thing. I mean, it's suffice it to say, we moved very quickly in these first 100 days since closing the transaction. We wanted to make a big impact early on just for the clarity of the organization in moving forward. As we get into the next phase of the synergies, we're getting into the deeper operational type integrations. You know, we've got the runway to complete the rest of that phase, which we've clearly de-risked ourselves with the great progress we've made to date. We wouldn't not expect to be raising that target anytime soon. Yeah, I was gonna follow up with the same thing. yeah i was gonna follow up with the same thing I mean, it's suffice it to say, we moved very quickly in these first 100 days since closing the transaction. i mean it's suffice it to say we moved very quickly in these first 100 days since closing the transaction We wanted to make a big impact early on just for the clarity of the organization in moving forward. we wanted to make a big impact early on just for the clarity of the organization in moving forward As we get into the next phase of the synergies, we're getting into the deeper operational type integrations. as we get into the next phase of the synergies we're getting into the deeper operational type integrations You know, we've got the runway to complete the rest of that phase, which we've clearly de-risked ourselves with the great progress we've made to date. you know we've got the runway to complete the rest of that phase which we've clearly de-risked ourselves with the great progress we've made to date We wouldn't not expect to be raising that target anytime soon. we wouldn't not expect to be raising that target anytime soon

Speaker 4: Great. Next is from Ryan McKeveny at Zelman. The first one is on the synergies target and increasing the target of $500 million in management dive into the primary areas of cost savings, presumably from a combination of leases, headcount, tech development. Should we think about the mix of those big buckets and what categories of expenses is the drivers for the incremental synergy? Great. great Next is from Ryan McKeveny at Zelman. next is from ryan mckeveny at zelman The first one is on the synergies target and increasing the target of $500 million in management dive into the primary areas of cost savings, presumably from a combination of leases, headcount, tech development. the first one is on the synergies target and increasing the target of $500 million in management dive into the primary areas of cost savings presumably from a combination of leases headcount tech development Should we think about the mix of those big buckets and what categories of expenses is the drivers for the incremental synergy? should we think about the mix of those big buckets and what categories of expenses is the drivers for the incremental synergy

Speaker 3: Just repeat that last section. Just repeat that last section. just repeat that last section

Speaker 4: Yeah. Okay. I'll repeat it again. On the synergies target, and the increase to $500 million, can management dive into the primary areas of cost savings, presumably leases, headcount, tech, and development. How should we think about the mix of those big buckets? Yeah. yeah Okay. okay I'll repeat it again. i'll repeat it again On the synergies target, and the increase to $500 million, can management dive into the primary areas of cost savings, presumably leases, headcount, tech, and development. on the synergies target and the increase to $500 million can management dive into the primary areas of cost savings presumably leases headcount tech and development How should we think about the mix of those big buckets? how should we think about the mix of those big buckets

Speaker 3: Look, the reality is nothing's changed in terms of the buckets. I mean, those big buckets were there. The reality is what's changed is more time has elapsed. We've had more ability to get into the details. Just to kinda like recap it, when we first put out the $225 million, that was at the time of announcement, back in September of last year, before we had any opportunity to get into the details, right? We increased that again to $300 million when we started doing some pre-close planning work, gave us more confidence of increasing that. The buckets didn't change then either. We just had more confidence on the total. Look, the reality is nothing's changed in terms of the buckets. look the reality is nothing's changed in terms of the buckets I mean, those big buckets were there. i mean those big buckets were there The reality is what's changed is more time has elapsed. the reality is what's changed is more time has elapsed We've had more ability to get into the details. we've had more ability to get into the details Just to kinda like recap it, when we first put out the $225 million, that was at the time of announcement, back in September of last year, before we had any opportunity to get into the details, right? just to kinda like recap it when we first put out the $225 million that was at the time of announcement back in september of last year before we had any opportunity to get into the details right We increased that again to $300 million when we started doing some pre-close planning work, gave us more confidence of increasing that. we increased that again to $300 million when we started doing some pre-close planning work gave us more confidence of increasing that The buckets didn't change then either. the buckets didn't change then either We just had more confidence on the total. we just had more confidence on the total We increased it to $400 million in February, after we had seven weeks of actual progress working with the leadership team of Anywhere and Compass coming together. After now having almost four months completed since we closed the transaction on January 9th, it's just that much additional confidence. I mean, I think the one thing I'd add that is why we're seeing such good progress here is that the management teams are really working very well together. In a typical situation, I think you often have the target comes in, makes a lot of changes, makes decisions, and this has been a much more collaborative approach with the Anywhere and Compass management teams working really closely with each other, and I think it's been a good contributor of the reason for our success. We increased it to $400 million in February, after we had seven weeks of actual progress working with the leadership team of Anywhere and Compass coming together. we increased it to $400 million in february after we had seven weeks of actual progress working with the leadership team of anywhere and compass coming together After now having almost four months completed since we closed the transaction on January 9th, it's just that much additional confidence. after now having almost four months completed since we closed the transaction on january 9th it's just that much additional confidence I mean, I think the one thing I'd add that is why we're seeing such good progress here is that the management teams are really working very well together. i mean i think the one thing i'd add that is why we're seeing such good progress here is that the management teams are really working very well together In a typical situation, I think you often have the target comes in, makes a lot of changes, makes decisions, and this has been a much more collaborative approach with the Anywhere and Compass management teams working really closely with each other, and I think it's been a good contributor of the reason for our success. in a typical situation i think you often have the target comes in makes a lot of changes makes decisions and this has been a much more collaborative approach with the anywhere and compass management teams working really closely with each other and i think it's been a good contributor of the reason for our success It's not really any new buckets. It's just really kind of, I think a team that's working really well together and making good progress towards the original goals. It's not really any new buckets. it's not really any new buckets It's just really kind of, I think a team that's working really well together and making good progress towards the original goals. it's just really kind of i think a team that's working really well together and making good progress towards the original goals

Speaker 4: Okay, great. The next question is also from Ryan. On the recent announcement with you and TPG and the stake in Peerage, firstly, can you give some context on the dynamics driving that transaction in terms of how that impacts the model? Does the ownership structure change? Just how does it sort of flow through the P&L? Okay, great. okay great The next question is also from Ryan. the next question is also from ryan On the recent announcement with you and TPG and the stake in Peerage, firstly, can you give some context on the dynamics driving that transaction in terms of how that impacts the model? on the recent announcement with you and tpg and the stake in peerage firstly can you give some context on the dynamics driving that transaction in terms of how that impacts the model Does the ownership structure change? does the ownership structure change Just how does it sort of flow through the P&L? just how does it sort of flow through the p&l

Speaker 3: Yeah, look, on the Peerage transaction, you know, it's really a positive transaction for us. Peerage is one of the key franchisers under the Sotheby's International Realty brand, and it's an important relationship for us. They grew quickly, through M&A prior to when mortgage rates spiked. This is going back into the early 2000s, or 2020s, I should say. They just got into a situation where they were over-levered, took out too much debt as a result of their expansion, and just had trouble keeping up with the debt payments. It's a good business. It's fundamentally a good business. They just got over-levered on debt. This transaction allowed them to restructure their finances, clean up their balance sheet, and now puts them on the right path, going forward. Yeah, look, on the Peerage transaction, you know, it's really a positive transaction for us. yeah look on the peerage transaction you know it's really a positive transaction for us Peerage is one of the key franchisers under the Sotheby's International Realty brand, and it's an important relationship for us. peerage is one of the key franchisers under the sotheby's international realty brand and it's an important relationship for us They grew quickly, through M&A prior to when mortgage rates spiked. they grew quickly through m&a prior to when mortgage rates spiked This is going back into the early 2000s, or 2020s, I should say. this is going back into the early 2000s or 2020s i should say They just got into a situation where they were over-levered, took out too much debt as a result of their expansion, and just had trouble keeping up with the debt payments. they just got into a situation where they were over-levered took out too much debt as a result of their expansion and just had trouble keeping up with the debt payments It's a good business. it's a good business It's fundamentally a good business. it's fundamentally a good business They just got over-levered on debt. they just got over-levered on debt This transaction allowed them to restructure their finances, clean up their balance sheet, and now puts them on the right path, going forward. this transaction allowed them to restructure their finances clean up their balance sheet and now puts them on the right path going forward You know, we pick up a 51% common ownership interest in this transaction. They're back on being cash flow positive. Nothing changes from the standpoint of how those revenues will flow through our business on the franchise side. That'll stay coming through franchise revenue going forward. As we talked about in the announcement, we kinda restructured some amounts they owed us from some royalty payments they were behind on. We'll get those paid back just over a little bit longer period of time that we'll provide. Overall, a net positive transaction for us. You know, we pick up a 51% common ownership interest in this transaction. you know we pick up a 51% common ownership interest in this transaction They're back on being cash flow positive. they're back on being cash flow positive Nothing changes from the standpoint of how those revenues will flow through our business on the franchise side. nothing changes from the standpoint of how those revenues will flow through our business on the franchise side That'll stay coming through franchise revenue going forward. that'll stay coming through franchise revenue going forward As we talked about in the announcement, we kinda restructured some amounts they owed us from some royalty payments they were behind on. as we talked about in the announcement we kinda restructured some amounts they owed us from some royalty payments they were behind on We'll get those paid back just over a little bit longer period of time that we'll provide. we'll get those paid back just over a little bit longer period of time that we'll provide Overall, a net positive transaction for us. overall a net positive transaction for us

Speaker 4: Great. Next one is from Alec Brondolo, from Wells Fargo. Could you speak to the cost buckets that drove the increase in the three-year synergy target from $400 to $500? How much of the $130 million in anticipated P&L cost synergies will be realized in the first half of the year relative to the second half? Could you speak to the learnings of the Anywhere franchise business since the acquisition closed? How are you thinking about bringing technology and the best practices to the franchisees? Great. great Next one is from Alec Brondolo, from Wells Fargo. next one is from alec brondolo from wells fargo Could you speak to the cost buckets that drove the increase in the three-year synergy target from $400 to $500? could you speak to the cost buckets that drove the increase in the three-year synergy target from $400 to $500 How much of the $130 million in anticipated P&L cost synergies will be realized in the first half of the year relative to the second half? how much of the $130 million in anticipated p&l cost synergies will be realized in the first half of the year relative to the second half Could you speak to the learnings of the Anywhere franchise business since the acquisition closed? could you speak to the learnings of the anywhere franchise business since the acquisition closed How are you thinking about bringing technology and the best practices to the franchisees? how are you thinking about bringing technology and the best practices to the franchisees

Speaker 3: Maybe I can start with the synergies question. You know, on the synergies, I think if you think about the $130 million that'll be realized through the P&L in 2026, about 10 of that was realized in the first quarter, just given timing of the actions in relation to Q1. That by default puts the remaining 120 coming forth in Qs two, three, and four. If you just divide that up at $40 million even, I'd say you could assume a little less than that average of 40 in Q2, and a little more of that average in Q4. As you know, a lot of the synergies are action now. Maybe I can start with the synergies question. maybe i can start with the synergies question You know, on the synergies, I think if you think about the $130 million that'll be realized through the P&L in 2026, about 10 of that was realized in the first quarter, just given timing of the actions in relation to Q1. you know on the synergies i think if you think about the $130 million that'll be realized through the p&l in 2026 about 10 of that was realized in the first quarter just given timing of the actions in relation to q1 That by default puts the remaining 120 coming forth in Qs two, three, and four. that by default puts the remaining 120 coming forth in qs two three and four If you just divide that up at $40 million even, I'd say you could assume a little less than that average of 40 in Q2, and a little more of that average in Q4. if you just divide that up at $40 million even i'd say you could assume a little less than that average of 40 in q2 and a little more of that average in q4 As you know, a lot of the synergies are action now. as you know a lot of the synergies are action now They'll continue to build in terms of realization through the quarter, quarters of the year, and we still have another $50 million to go. That's a good way to kind of frame how that's gonna come through the P&L. They'll continue to build in terms of realization through the quarter, quarters of the year, and we still have another $50 million to go. they'll continue to build in terms of realization through the quarter quarters of the year and we still have another $50 million to go That's a good way to kind of frame how that's gonna come through the P&L. that's a good way to kind of frame how that's gonna come through the p&l

Speaker 2: In terms of franchise, historically, our company served real estate professionals as agents and with the goal of making them more profitable, serving them as entrepreneurs, helping them realize their entrepreneurial potential. Now, we have a second customer base as broker-owners, which are the franchise affiliate businesses. They have the exact same goals as the real estate agent, which is to become more profitable, to realize their entrepreneurial potential. You know, we are giving them the same advantages that helped Compass grow, we're giving them as broker-owners to help them grow. Obviously, it's the technology platform as one example, but also our enterprise sales team that recruits agents, our M&A team. In terms of franchise, historically, our company served real estate professionals as agents and with the goal of making them more profitable, serving them as entrepreneurs, helping them realize their entrepreneurial potential. in terms of franchise historically our company served real estate professionals as agents and with the goal of making them more profitable serving them as entrepreneurs helping them realize their entrepreneurial potential Now, we have a second customer base as broker-owners, which are the franchise affiliate businesses. now we have a second customer base as broker-owners which are the franchise affiliate businesses They have the exact same goals as the real estate agent, which is to become more profitable, to realize their entrepreneurial potential. they have the exact same goals as the real estate agent which is to become more profitable to realize their entrepreneurial potential You know, we are giving them the same advantages that helped Compass grow, we're giving them as broker-owners to help them grow. you know we are giving them the same advantages that helped compass grow we're giving them as broker-owners to help them grow Obviously, it's the technology platform as one example, but also our enterprise sales team that recruits agents, our M&A team. obviously it's the technology platform as one example but also our enterprise sales team that recruits agents our m&a team We are giving them both on the revenue side and the cost side, the same advantage that Compass had at a brokerage level. We are giving that to the franchise broker-owners so that they can be more profitable businesses. We are giving them both on the revenue side and the cost side, the same advantage that Compass had at a brokerage level. we are giving them both on the revenue side and the cost side the same advantage that compass had at a brokerage level We are giving that to the franchise broker-owners so that they can be more profitable businesses. we are giving that to the franchise broker-owners so that they can be more profitable businesses

Speaker 4: Okay, great. The second one from Alec is, how should we be thinking about the size of the Anywhere agent base that has a low amount of GCI? How long do you anticipate attrition from that group of users that will last? Okay, great. okay great The second one from Alec is, how should we be thinking about the size of the Anywhere agent base that has a low amount of GCI? the second one from alec is how should we be thinking about the size of the anywhere agent base that has a low amount of gci How long do you anticipate attrition from that group of users that will last? how long do you anticipate attrition from that group of users that will last

Speaker 3: Yeah, look, Go, Robbie, you wanna take that? Yeah, look, Go, Robbie, you wanna take that? yeah look go robbie you wanna take that Yeah, no, I was just going to say on the agent base, I mean, I think the important point that we wanted to call out there is that the attrition during the quarter, you know, a significant percentage of that was really kind of underperforming or non-performing agents. You know, 50% to 6% of the agents we said had zero production. Another 21% on top of that had production of $20K or less in the past 12 months. These are, you know, reductions of numbers of agents, but really having no impact on the business. Yeah, no, I was just going to say on the agent base, I mean, I think the important point that we wanted to call out there is that the attrition during the quarter, you know, a significant percentage of that was really kind of underperforming or non-performing agents. yeah no i was just going to say on the agent base i mean i think the important point that we wanted to call out there is that the attrition during the quarter you know a significant percentage of that was really kind of underperforming or non-performing agents You know, 50% to 6% of the agents we said had zero production. you know 50% to 6% of the agents we said had zero production Another 21% on top of that had production of $20K or less in the past 12 months. another 21% on top of that had production of $20k or less in the past 12 months These are, you know, reductions of numbers of agents, but really having no impact on the business. these are you know reductions of numbers of agents but really having no impact on the business You know, on the Compass side, over the last several years, we've kind of really operated under this methodology of, you know, kind of focusing on the strong producing agents and the underperforming agents, you know, if they pay their fees and they are otherwise, you know, in good standing with amounts owed to the brokerage, we'll keep them on. If they're not producing and they're not paying bills as due, we'll move them out of the business. Anywhere's, you know, now operating under that same capacity, in recent periods of time, and I think they're just catching up to us a little bit. It's good to see that we're both aligned on that strategy. It's the right strategy. You know, on the Compass side, over the last several years, we've kind of really operated under this methodology of, you know, kind of focusing on the strong producing agents and the underperforming agents, you know, if they pay their fees and they are otherwise, you know, in good standing with amounts owed to the brokerage, we'll keep them on. you know on the compass side over the last several years we've kind of really operated under this methodology of you know kind of focusing on the strong producing agents and the underperforming agents you know if they pay their fees and they are otherwise you know in good standing with amounts owed to the brokerage we'll keep them on If they're not producing and they're not paying bills as due, we'll move them out of the business. if they're not producing and they're not paying bills as due we'll move them out of the business Anywhere's, you know, now operating under that same capacity, in recent periods of time, and I think they're just catching up to us a little bit. anywhere's you know now operating under that same capacity in recent periods of time and i think they're just catching up to us a little bit It's good to see that we're both aligned on that strategy. it's good to see that we're both aligned on that strategy It's the right strategy. it's the right strategy There might be a little bit of more choppiness over the near term on that, but the important thing is that we're just dropping numbers of agents. It's not dropping any production at all, and that's an angle. As we've always said before, you know, there's been this limitation with principal agent counts and total agent counts, is that not all agents are created equal. Even when we used to re-report principal agents on the Compass side, you know, one principal agent could be operating as an individual contributor. Another principal agent could have a team of dozens of agents doing extremely high production. There were limitations to that metric on a principal agent basis, and there's also limitations on a total agent basis. There might be a little bit of more choppiness over the near term on that, but the important thing is that we're just dropping numbers of agents. there might be a little bit of more choppiness over the near term on that but the important thing is that we're just dropping numbers of agents It's not dropping any production at all, and that's an angle. it's not dropping any production at all and that's an angle As we've always said before, you know, there's been this limitation with principal agent counts and total agent counts, is that not all agents are created equal. as we've always said before you know there's been this limitation with principal agent counts and total agent counts is that not all agents are created equal Even when we used to re-report principal agents on the Compass side, you know, one principal agent could be operating as an individual contributor. even when we used to re-report principal agents on the compass side you know one principal agent could be operating as an individual contributor Another principal agent could have a team of dozens of agents doing extremely high production. another principal agent could have a team of dozens of agents doing extremely high production There were limitations to that metric on a principal agent basis, and there's also limitations on a total agent basis. there were limitations to that metric on a principal agent basis and there's also limitations on a total agent basis The important thing we wanted to get out there is that the lost agent counts really had very limited production associated with them, so no meaningful impact on the business. The important thing we wanted to get out there is that the lost agent counts really had very limited production associated with them, so no meaningful impact on the business. the important thing we wanted to get out there is that the lost agent counts really had very limited production associated with them so no meaningful impact on the business

Speaker 4: Great. Thank you. All right, next one is from Bernie at Needham. With the guidance, can you provide some color by revenue buckets? How should we expect seasonality throughout the year? Are there any differences than typical housing market seasonality? Great. great Thank you. thank you All right, next one is from Bernie at Needham. all right next one is from bernie at needham With the guidance, can you provide some color by revenue buckets? with the guidance can you provide some color by revenue buckets How should we expect seasonality throughout the year? how should we expect seasonality throughout the year Are there any differences than typical housing market seasonality? are there any differences than typical housing market seasonality

Speaker 3: Could you repeat that, the last part? Could you repeat that, the last part? could you repeat that the last part

Speaker 4: Yep. Yep. yep

Speaker 3: And, and- And, and- and and-

Speaker 4: With the guidance, can you provide some color by the revenue buckets? How should we expect seasonality throughout the year? Is there any difference in housing market seasonality? With the guidance, can you provide some color by the revenue buckets? with the guidance can you provide some color by the revenue buckets How should we expect seasonality throughout the year? how should we expect seasonality throughout the year Is there any difference in housing market seasonality? is there any difference in housing market seasonality

Speaker 3: You know, it's probably gonna be pretty similar. You know, a lot of the GTV coming through franchise will follow similar to the brokerage seasonality. I'd expect those two to be fairly aligned. You can actually see, just as a reminder, we put on our website through the investor deck we provided today the pro forma revenue for 2025 as though Anywhere and Compass were combined from the beginning of 2025. You can see the breakout for the brokerage, franchise, and integrated services segment separated for Compass, separated for Anywhere, and then, of course, in total. You know, it's probably gonna be pretty similar. you know it's probably gonna be pretty similar You know, a lot of the GTV coming through franchise will follow similar to the brokerage seasonality. you know a lot of the gtv coming through franchise will follow similar to the brokerage seasonality I'd expect those two to be fairly aligned. i'd expect those two to be fairly aligned You can actually see, just as a reminder, we put on our website through the investor deck we provided today the pro forma revenue for 2025 as though Anywhere and Compass were combined from the beginning of 2025. you can actually see just as a reminder we put on our website through the investor deck we provided today the pro forma revenue for 2025 as though anywhere and compass were combined from the beginning of 2025 You can see the breakout for the brokerage, franchise, and integrated services segment separated for Compass, separated for Anywhere, and then, of course, in total. you can see the breakout for the brokerage franchise and integrated services segment separated for compass separated for anywhere and then of course in total You have good visibility of what that looks like on a trailing 12-month basis to hopefully, give you some sense as to what that trending could look like going forward. You have good visibility of what that looks like on a trailing 12-month basis to hopefully, give you some sense as to what that trending could look like going forward. you have good visibility of what that looks like on a trailing 12-month basis to hopefully give you some sense as to what that trending could look like going forward

Speaker 4: Okay, great. The next one is from Bernie as well. 84,000 agent count was lower than expected. I don't think we had the exact apples-to-apples comparisons with the principal versus non-principal agent count last quarter. How did agents trend quarter-over-quarter? Can you talk to agent retention? Okay, great. okay great The next one is from Bernie as well. 84,000 agent count was lower than expected. the next one is from bernie as well 84,000 agent count was lower than expected I don't think we had the exact apples-to-apples comparisons with the principal versus non-principal agent count last quarter. i don't think we had the exact apples-to-apples comparisons with the principal versus non-principal agent count last quarter How did agents trend quarter-over-quarter? how did agents trend quarter-over-quarter Can you talk to agent retention? can you talk to agent retention

Speaker 3: I mean, look, I think we touched on that a little bit already with, you know, we had good recruiting. We talked about the attrition and the portion of that attrition that was really kind of related to non-productive agents. I think the gap to consider is that what we're talking about here with the, you know, 84,000 agents, we're talking about owned brokerage agents, right? There's obviously a lot of agents on the franchise side of the house that we're not including in that count. That leads to our total, you know, the 330,000-ish total count across the company, which includes international franchise. I mean, look, I think we touched on that a little bit already with, you know, we had good recruiting. i mean look i think we touched on that a little bit already with you know we had good recruiting We talked about the attrition and the portion of that attrition that was really kind of related to non-productive agents. we talked about the attrition and the portion of that attrition that was really kind of related to non-productive agents I think the gap to consider is that what we're talking about here with the, you know, 84,000 agents, we're talking about owned brokerage agents, right? i think the gap to consider is that what we're talking about here with the you know 84,000 agents we're talking about owned brokerage agents right There's obviously a lot of agents on the franchise side of the house that we're not including in that count. there's obviously a lot of agents on the franchise side of the house that we're not including in that count That leads to our total, you know, the 330,000-ish total count across the company, which includes international franchise. that leads to our total you know the 330,000-ish total count across the company which includes international franchise

Speaker 4: Great. The next one's from Michael Ng at Goldman Sachs. What were the key sources of the upgraded synergy outlook, given three-quarters of upgraded synergy outlooks? Could we expect further upside from here? As a housekeeping item, how much in P&L synergies was realized in Q1, and how much do you expect in Q2? Great. great The next one's from Michael Ng at Goldman Sachs. the next one's from michael ng at goldman sachs What were the key sources of the upgraded synergy outlook, given three-quarters of upgraded synergy outlooks? Could we expect further upside from here? what were the key sources of the upgraded synergy outlook given three-quarters of upgraded synergy outlooks? could we expect further upside from here As a housekeeping item, how much in P&L synergies was realized in Q1, and how much do you expect in Q2? as a housekeeping item how much in p&l synergies was realized in q1 and how much do you expect in q2

Speaker 3: Yeah, I think we covered that one as well in earlier question. Again, about $10 million was realized in the first quarter, which is up a little bit from what we expected. That leaves you with about $120 million of P&L realization that'll come through in the last three quarters of the year. It's, you know, expect a little less than $40 million in Q2, about $40 million in Q3, and a little more than $40 million in Q4, if you wanna kind of like phase that out that way. Yeah, I think we covered that one as well in earlier question. yeah i think we covered that one as well in earlier question Again, about $10 million was realized in the first quarter, which is up a little bit from what we expected. again about $10 million was realized in the first quarter which is up a little bit from what we expected That leaves you with about $120 million of P&L realization that'll come through in the last three quarters of the year. that leaves you with about $120 million of p&l realization that'll come through in the last three quarters of the year It's, you know, expect a little less than $40 million in Q2, about $40 million in Q3, and a little more than $40 million in Q4, if you wanna kind of like phase that out that way. it's you know expect a little less than $40 million in q2 about $40 million in q3 and a little more than $40 million in q4 if you wanna kind of like phase that out that way

Speaker 4: Okay. This should be the last few questions here. From Michael Rindos at Benchmark. Please discuss what's going on with private listings in Chicago, in the Chicago MLS, sharing it nationally, and Washington State, Wisconsin enacting laws around private listings. Okay. okay This should be the last few questions here. this should be the last few questions here From Michael Rindos at Benchmark. from michael rindos at benchmark Please discuss what's going on with private listings in Chicago, in the Chicago MLS, sharing it nationally, and Washington State, Wisconsin enacting laws around private listings. please discuss what's going on with private listings in chicago in the chicago mls sharing it nationally and washington state wisconsin enacting laws around private listings

Speaker 2: There are two types of laws that states are coming with. One is a model which I believe is Wisconsin and Connecticut, where they're saying that if a seller signs that they don't, that they want to be private listing, they can be private listing. That actually means that some states are saying sellers have the legal right to be a private listing, and to market however they want. That's one model. I guess, and well, there's three models. The second model is one where the states aren't saying anything, and the third model would be states like Washington State, where they're saying if a listing is marketed to some, it must be publicly marketed. Public marketing per, at least per MLSs, is a sign in the yard. There are two types of laws that states are coming with. there are two types of laws that states are coming with One is a model which I believe is Wisconsin and Connecticut, where they're saying that if a seller signs that they don't, that they want to be private listing, they can be private listing. one is a model which i believe is wisconsin and connecticut where they're saying that if a seller signs that they don't that they want to be private listing they can be private listing That actually means that some states are saying sellers have the legal right to be a private listing, and to market however they want. that actually means that some states are saying sellers have the legal right to be a private listing and to market however they want That's one model. that's one model I guess, and well, there's three models. i guess and well there's three models The second model is one where the states aren't saying anything, and the third model would be states like Washington State, where they're saying if a listing is marketed to some, it must be publicly marketed. the second model is one where the states aren't saying anything and the third model would be states like washington state where they're saying if a listing is marketed to some it must be publicly marketed Public marketing per, at least per MLSs, is a sign in the yard. public marketing per at least per mlss is a sign in the yard What is public marketing? Is that saying if you're marketing to some as private listing, you have to have a sign in your yard? I'm sure that's fine. Public marketing is putting on social media. Is that saying if you have a private listing, you also have to put it on your social media? I think that'd be fine. Is public marketing saying that it has to have days on market or price drop history or a bunch of information? Public marketing could just be a picture of the house, the neighborhood, and say, "Contact me. I'm the agent. Come to compass.com. What is public marketing? what is public marketing Is that saying if you're marketing to some as private listing, you have to have a sign in your yard? is that saying if you're marketing to some as private listing you have to have a sign in your yard I'm sure that's fine. i'm sure that's fine Public marketing is putting on social media. public marketing is putting on social media Is that saying if you have a private listing, you also have to put it on your social media? is that saying if you have a private listing you also have to put it on your social media I think that'd be fine. i think that'd be fine Is public marketing saying that it has to have days on market or price drop history or a bunch of information? is public marketing saying that it has to have days on market or price drop history or a bunch of information Public marketing could just be a picture of the house, the neighborhood, and say, "Contact me. public marketing could just be a picture of the house the neighborhood and say "contact me I'm the agent. i'm the agent Come to compass.com. come to compass.com We'll show you all these listings. In those states like Washington, one, they're saying if it's a, they're saying Coming Soon are perfectly legal, and if not, if nothing else, that it meets the requirement 'cause clearly it's a public marketing. Even Private Exclusives on compass.com, they're available per request. Private Exclusive is just a name, like private label for clothes, like private banking, like private equity, like private client group. It's just a name. Obviously, it can't be private 'cause it's private use. You can't sell something to yourself, right? What Private Exclusives are on compass.com, they're available by request, and they are publicly marketed. A different way to say it, Zillow bans Private Exclusives because they're public marketing. We'll show you all these listings. we'll show you all these listings In those states like Washington, one, they're saying if it's a, they're saying Coming Soon are perfectly legal, and if not, if nothing else, that it meets the requirement 'cause clearly it's a public marketing. in those states like washington one they're saying if it's a they're saying coming soon are perfectly legal and if not if nothing else that it meets the requirement 'cause clearly it's a public marketing Even Private Exclusives on compass.com, they're available per request. even private exclusives on compass.com they're available per request Private Exclusive is just a name, like private label for clothes, like private banking, like private equity, like private client group. private exclusive is just a name like private label for clothes like private banking like private equity like private client group It's just a name. it's just a name Obviously, it can't be private 'cause it's private use. obviously it can't be private 'cause it's private use You can't sell something to yourself, right? you can't sell something to yourself right What Private Exclusives are on compass.com, they're available by request, and they are publicly marketed. what private exclusives are on compass.com they're available by request and they are publicly marketed A different way to say it, Zillow bans Private Exclusives because they're public marketing. a different way to say it zillow bans private exclusives because they're public marketing Even Zillow believes they're publicly marketed. That's what's happening in the state level. For MRED, what we are bringing MRED national as well as it'll be just a select number of MLSs that are pro-seller choice, where we're going to give them all of our listings, where we're going to subsidize our agents joining. The reason why, it's not, it's not that I wanna create a national MLS to replace local MLSs. I wanna create a national MLS to compete against local MLSs. If they have to compete, who are they competing for? For us, for agents. Agents deserve more choices. Sellers deserve more choices, not less. Even Zillow believes they're publicly marketed. even zillow believes they're publicly marketed That's what's happening in the state level. that's what's happening in the state level For MRED, what we are bringing MRED national as well as it'll be just a select number of MLSs that are pro-seller choice, where we're going to give them all of our listings, where we're going to subsidize our agents joining. for mred what we are bringing mred national as well as it'll be just a select number of mlss that are pro-seller choice where we're going to give them all of our listings where we're going to subsidize our agents joining The reason why, it's not, it's not that I wanna create a national MLS to replace local MLSs. the reason why it's not it's not that i wanna create a national mls to replace local mlss I wanna create a national MLS to compete against local MLSs. i wanna create a national mls to compete against local mlss If they have to compete, who are they competing for? if they have to compete who are they competing for For us, for agents. for us for agents Agents deserve more choices. agents deserve more choices Sellers deserve more choices, not less. sellers deserve more choices not less I think this is a very. In the same way, look what we kicked off. Now you have Zillow Previews and Realtor Previews [audio distortion] Coming Soon on all these sites. Didn't the seller deserve that five years ago and 10 years ago? Why didn't they have it? I mean, shouldn't sellers have more choices, not less choices? What we are doing, we are pushing on the system so that sellers and agents have more choices, less mandates. The seller should be the only person that decides how they market their home in the context of the law. Fiduciary duty and statutory duty, which are a majority of states, say that the agent, the real estate agent has, must, and this is the law. MLS rules are just rules of a business. I think this is a very. i think this is a very In the same way, look what we kicked off. in the same way look what we kicked off Now you have Zillow Previews and Realtor Previews [audio distortion] Coming Soon on all these sites. now you have zillow previews and realtor previews [audio distortion] coming soon on all these sites Didn't the seller deserve that five years ago and 10 years ago? didn't the seller deserve that five years ago and 10 years ago Why didn't they have it? why didn't they have it I mean, shouldn't sellers have more choices, not less choices? i mean shouldn't sellers have more choices not less choices What we are doing, we are pushing on the system so that sellers and agents have more choices, less mandates. what we are doing we are pushing on the system so that sellers and agents have more choices less mandates The seller should be the only person that decides how they market their home in the context of the law. the seller should be the only person that decides how they market their home in the context of the law Fiduciary duty and statutory duty, which are a majority of states, say that the agent, the real estate agent has, must, and this is the law. fiduciary duty and statutory duty which are a majority of states say that the agent the real estate agent has must and this is the law MLS rules are just rules of a business. mls rules are just rules of a business They're private entities. The fiduciary duty and statutory duty says the agent must follow all lawful, in quotes, lawful instructions of their client. If a seller wants to market without days on market and price drop, it's however they want, that is a lawful instruction. An MLS with restrictive rules should not be able to tell an agent that they cannot follow the law, or if they don't follow the law of their seller's instructions, that they're gonna be fined $5,000 and can lose their access. I think, you know, I'll close with this. The dominant portal that likes banning agents for marketing outside of their platform to scare them from marketing outside their platform, their tagline is: We are trying to bring into the light these listings, bring transparency into the light. They're private entities. they're private entities The fiduciary duty and statutory duty says the agent must follow all lawful, in quotes, lawful instructions of their client. the fiduciary duty and statutory duty says the agent must follow all lawful in quotes lawful instructions of their client If a seller wants to market without days on market and price drop, it's however they want, that is a lawful instruction. if a seller wants to market without days on market and price drop it's however they want that is a lawful instruction An MLS with restrictive rules should not be able to tell an agent that they cannot follow the law, or if they don't follow the law of their seller's instructions, that they're gonna be fined $5,000 and can lose their access. an mls with restrictive rules should not be able to tell an agent that they cannot follow the law or if they don't follow the law of their seller's instructions that they're gonna be fined $5,000 and can lose their access I think, you know, I'll close with this. i think you know i'll close with this The dominant portal that likes banning agents for marketing outside of their platform to scare them from marketing outside their platform, their tagline is: We are trying to bring into the light these listings, bring transparency into the light. the dominant portal that likes banning agents for marketing outside of their platform to scare them from marketing outside their platform their tagline is we are trying to bring into the light these listings bring transparency into the light Well, here's what we're bringing to the light. We're bringing to the light that sellers, and sellers have been losing the disinterested advice of their fiduciary because of MLS fines and Zillow bans. We are bringing to the light that sellers with their agents should be able to decide how they market their home in any way they want, not third-party portals and third-party platforms like an MLS. The seller hired the agent and the brokerage firm. The seller didn't hire the MLS. The seller hired the agent. They didn't hire a portal. Again, I think that, you know, history will look back, and they'll see that sellers will have more choices because of the efforts that we've been pushing forward. Well, here's what we're bringing to the light. well here's what we're bringing to the light We're bringing to the light that sellers, and sellers have been losing the disinterested advice of their fiduciary because of MLS fines and Zillow bans. we're bringing to the light that sellers and sellers have been losing the disinterested advice of their fiduciary because of mls fines and zillow bans We are bringing to the light that sellers with their agents should be able to decide how they market their home in any way they want, not third-party portals and third-party platforms like an MLS. we are bringing to the light that sellers with their agents should be able to decide how they market their home in any way they want not third-party portals and third-party platforms like an mls The seller hired the agent and the brokerage firm. the seller hired the agent and the brokerage firm The seller didn't hire the MLS. the seller didn't hire the mls The seller hired the agent. the seller hired the agent They didn't hire a portal. they didn't hire a portal Again, I think that, you know, history will look back, and they'll see that sellers will have more choices because of the efforts that we've been pushing forward. again i think that you know history will look back and they'll see that sellers will have more choices because of the efforts that we've been pushing forward I'm thankful for all of the agents and employees that have advocated for seller choice over the last number of years. I'm thankful for all of the agents and employees that have advocated for seller choice over the last number of years. i'm thankful for all of the agents and employees that have advocated for seller choice over the last number of years

Speaker 4: Great. I think we will end it there. I know we went a little bit over. Again, thank you everyone for joining the call. Apologies for the technical difficulties. We are available tonight and over the next few days to answer any of the questions you may have. Thanks again for joining. Great. great I think we will end it there. i think we will end it there I know we went a little bit over. i know we went a little bit over Again, thank you everyone for joining the call. again thank you everyone for joining the call Apologies for the technical difficulties. apologies for the technical difficulties We are available tonight and over the next few days to answer any of the questions you may have. we are available tonight and over the next few days to answer any of the questions you may have Thanks again for joining. thanks again for joining

Speaker 1: This concludes today's call. Thank you for attending. This concludes today's call. this concludes today's call Thank you for attending. thank you for attending