Layla Zulfa
Compass International Holdings CEO Robert Reffkin has signaled a significant openness to his firm participating in the burgeoning national residential real estate data-sharing initiative, known as Open Real Estate. This development comes as the industry grapples with the long-standing challenges of fragmented listing data and advocates for greater transparency and equitable access for consumers and agents alike. Reffkin’s comments, made during Compass’s third-quarter 2026 earnings call, suggest a strategic pivot or at least a serious consideration of collaboration with a movement initially spearheaded by some of Compass’s most prominent competitors.
"We welcome this change. It actually validates what we’ve been saying for the better part of two years, and so we are really excited to see the four of them lead in this way and to see others join," Reffkin stated, referring to the founding members of Open Real Estate. This initiative, launched by a consortium of major brokerages including eXp Realty, Anywhere Real Estate, Keller Williams, and RE/MAX, aims to establish a standardized, open platform for sharing residential property listing data, thereby democratizing access and empowering homeowners and their agents. The overarching goal is to move away from proprietary systems that can limit data visibility and control, towards a more unified ecosystem.
The "four of them," as Reffkin alluded to, represent a significant portion of the national brokerage landscape, and their collective effort to create Open Real Estate signifies a potent force for change. The initiative’s core tenet is to ensure that listing data, the foundational asset of the residential real estate market, is accessible fairly and equally. This directly addresses concerns that have been voiced by many in the industry regarding the control and monetization of listing information, often perceived as being held by a select few entities.
Reffkin elaborated on Compass’s potential involvement, noting, "In terms of joining or not, I think there’s definitely a path, but Compass International Holdings is definitely excited that there will be a national real estate listing service that will return the power back to the creator of the listing, the homeowner and their trusted agent, and that it’s good news for all agents and for all their clients, and we’re looking forward to seeing if there’s a way for us to be involved." This statement underscores a strategic alignment with the initiative’s stated mission of empowering creators of listing content – the homeowners and their agents – by providing them with greater control and visibility over their property information. The implication is that Compass sees value in a system that prioritizes the source of the listing data, potentially leading to a more direct connection between sellers and buyers, facilitated by their agents.
However, Reffkin’s enthusiasm for Open Real Estate was tempered by a detailed account of Compass’s own burgeoning private exclusive inventory and its "See It First" marketing strategy. This dual focus highlights a nuanced approach: embracing industry-wide data sharing while simultaneously strengthening its proprietary network and early-access marketing channels. As of early November, Compass reported an impressive 89,000 listings available on Compass.com before their broader public debut on other listing portals. This "private exclusive" inventory represents a significant asset for the company, offering a curated selection of properties to its user base.
Furthermore, in markets where the public marketing of office exclusive listings is permitted, Compass has observed a strong adoption of its three-phase marketing strategy. On average, 63% of newly launched listings within the Compass brand in these areas are now employing this approach, which prioritizes early exposure through Compass’s own platforms. This strategy is designed to capture buyer attention before properties become widely available, potentially leading to faster sales and more favorable terms for sellers.
"We also hit over 70% adoption in some of these cities during the quarter, suggesting that as the industry’s artificial restrictions on homeowners and seller choice are removed, the good majority of listings would start off as a private exclusive or coming soon, and be a See It First listing on Compass.com and our sister company sites," Reffkin explained. This observation suggests a potential shift in listing practices, where agents and sellers are increasingly opting for a phased rollout of marketing, beginning with controlled, early-access platforms. The "See It First" campaign itself is framed by Reffkin as a rebranding effort, aiming to reframe the concept of private exclusives not as "hidden" listings, but as a clear invitation for interested parties to view properties first through Compass’s channels. This positions Compass as a gateway to exclusive opportunities, directly competing with the broader reach of public portals.
The growth of Compass’s internal listing inventory is also yielding significant advantages in the age of artificial intelligence and sophisticated search algorithms. Reffkin pointed out that when users engage large language models (LLMs) to set up alerts for new listings in specific geographic areas, Compass listings are "more often than not" among the results presented to consumers. This is attributed to Compass’s proprietary AI-powered tools, Instinct and Muse, which function as advanced search alerts. These tools are designed to direct users to listings where the data originates directly from the listing agent, the original author, rather than through a third-party portal. This approach aims to provide consumers with listings that are not only timely but also enriched with more comprehensive information.
The integration of this private listing network into Compass’s Home platform further amplifies its utility. The company is actively rolling out this platform to its owned-brokerage agents, with a target of onboarding all 46,000 owned agents by the end of 2026. The rollout is set to extend to franchise network professionals starting in the first quarter of 2027. As more agents adopt the platform, Compass anticipates an exponential increase in the number of client contacts within its extensive database, which currently stands at 225 million unique contacts.
"We have 225 million unique contacts, and when you give me your listing, boom! It instantly pops up in their saved searches and I could then bring these buyers to your home," Reffkin stated, illustrating the power of this interconnected network. He shared an anecdote about a Compass agent in Houston who, unable to access MLS listings in Dallas due to differing regional MLS structures, was able to leverage the Home platform to present Compass private exclusives in Dallas to a relocating client. The client ultimately purchased a property listed by a Sotheby’s International Realty agent, a transaction that Reffkin highlighted as a prime example of the platform’s ability to facilitate cross-geographical deals that might otherwise be impossible. "That is a transaction that is across geographies and that would not be possible without the Home platform," he asserted. "That’s the power of the platform, where it is no longer restricting how people work, but creating much more flexibility and opportunity for the clients of our agents."
Beyond its technological advancements and strategic positioning in data sharing, Compass reported strong financial results for the third quarter of 2026. On a pro forma basis, which assumes the completed acquisition of Anywhere as of January 1, 2025, revenue increased by 11.6% year-over-year, reaching $3.90 billion. The company achieved a net income of $63 million, a significant turnaround from a $4 million net loss in the same quarter a year prior. This marked Compass’s first profitable third quarter, a milestone attributed to robust financial discipline implemented over the past four years and accelerated cost synergy actions.
"This was driven by the strong financial discipline that we’ve instilled into the organization over the past four years, and an acceleration of some cost synergy actions in light of the current environment," Reffkin explained. "As of last week, we have actioned $360 million in net cost synergies compared to the $330 million full-year target for 2026." The company remains committed to its ambitious target of achieving $500 million in cost synergies within three years.
Compass also reported a 6% annual decline in operating expenses on a pro forma basis, further demonstrating its focus on efficiency and profitability. The company’s strategic emphasis on agent attraction, retention, and growth continues to yield positive results. The owned-brokerage operation concluded the quarter with 85,476 agents, an increase of over 2,000 agents from the previous quarter. While the firm experienced a separation of 4,098 agents during the quarter, it was noted that a significant majority of these departures were agents with minimal or no recent gross commission income (GCI), indicating a focus on attracting and retaining productive agents. Specifically, 58% of separations involved agents with $0 GCI in the preceding 12 months, and 74% involved agents with $20,000 or less in GCI.
The productivity of Compass’s agent network remains a key performance indicator. Owned-brokerage agents closed 140,118 transactions during the quarter, with a gross transaction value of $138.9 billion. Franchise agents contributed significantly as well, closing 191,809 transactions totaling $108.9 billion in value. Reffkin expressed confidence in continued growth in agent count and productivity, citing a 39% increase in opportunities added to the growth team’s weekly active pipeline quarter-to-date compared to the previous two quarters. The firm’s "walkover pipeline" is also reportedly at its highest levels year-to-date. Reffkin attributes this strengthening recruiting pipeline to a "flight to quality," as agents increasingly seek brokerages that offer robust technology and tools to support their business growth in a challenging market.
In parallel with its real estate operations, Compass also provided an update on its mortgage sector. The recent merger of mortgage joint ventures Guaranteed Rate Affinity and OriginPoint, which has created a top-10 mortgage lender operating under the OriginPoint brand, was a significant point of discussion. During the third quarter, the combined entities funded $3.30 billion in loans, representing a 9.9% year-over-year increase on a pro forma basis. The elevated status as a top-10 lender has reportedly led to an increased interest from loan officers seeking to join the operation. Looking ahead, Compass aims to establish itself as a top-5 retail lender.
"We’re obviously very committed to the business. We’re committed to ensuring that our real estate professionals and their clients are able to have everything in one place, which is not just technology, not just marketing, not just branding, but for title, escrow and mortgage as well," Reffkin concluded, underscoring Compass’s ambition to provide a comprehensive suite of services for real estate professionals and their clients, solidifying its position as an integrated real estate services provider. This integrated approach, coupled with strategic engagement with industry-wide data initiatives and continued investment in proprietary technology, positions Compass to navigate the evolving landscape of the residential real estate market.
