Q4 Rundown: Compass (NYSE:COMP) Vs Other Consumer Discretionary - Real Estate Services Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Compass (NYSE:COMP) and the best and worst performers in the consumer discretionary - real estate services industry.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Real estate services companies provide brokerage, property management, appraisal, and advisory services, earning transaction-based commissions and recurring management fees. Tailwinds include long-term housing demand driven by demographic growth, technology platforms that expand market access, and commercial real estate complexity that sustains advisory needs. Headwinds are pronounced: rising interest rates directly suppress transaction volumes by reducing housing affordability and commercial deal activity. Commission-rate compression, driven by discount brokerages and regulatory changes, erodes per-transaction revenue. The industry is highly cyclical, with revenue swings amplified by leverage. PropTech (property technology) disruptors threaten traditional intermediary models.

The 14 consumer discretionary - real estate services stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 4% while next quarter’s revenue guidance was 2.2% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Compass (NYSE:COMP)

Fueled by its mission to replace the "paper-driven, antiquated workflow" of buying a house, Compass (NYSE:COMP) is a digital-first company operating a residential real estate brokerage in the United States.

Compass reported revenues of $1.7 billion, up 23.1% year on year. This print exceeded analysts’ expectations by 1.8%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ adjusted operating income estimates.

"Compass ended 2025 on a high note as we delivered the strongest Q4 results in our history, including Revenue, Adjusted EBITDA1, Adjusted EBITDA Margin, Organic Gross Principal Agent Adds, T&E revenue, mortgage JV profitability, and weekly agent sessions on the platform," said Robert Reffkin, Founder and Chief Executive Officer of Compass.

The stock is down 21.3% since reporting and currently trades at $7.88.

Read our full report on Compass here, it’s free.

Best Q4: The Real Brokerage (NASDAQ:REAX)

Founded in Toronto, Canada in 2014, The Real Brokerage (NASDAQ:REAX) is a technology-driven real estate brokerage firm combining a tech-centric model with an agent-centric philosophy.

The Real Brokerage reported revenues of $505.1 million, up 44.1% year on year, outperforming analysts’ expectations by 7.6%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

The Real Brokerage delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.7% since reporting. It currently trades at $2.61.

Is now the time to buy The Real Brokerage? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Offerpad (NYSE:OPAD)

Known for giving homeowners cash offers within 24 hours, Offerpad (NYSE:OPAD) operates a tech-enabled platform specializing in direct home buying and selling solutions.

Offerpad reported revenues of $114.1 million, down 34.5% year on year, falling short of analysts’ expectations by 2%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ adjusted operating income estimates.

Offerpad delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 1.2% since the results and currently trades at $0.82.

Read our full analysis of Offerpad’s results here.

eXp World (NASDAQ:EXPI)

Founded in 2009, eXp World (NASDAQ:EXPI) is a real estate company known for its virtual, cloud-based approach to real estate brokerage.

eXp World reported revenues of $1.19 billion, up 8.5% year on year. This number beat analysts’ expectations by 2.6%. Taking a step back, it was a softer quarter as it produced a significant miss of analysts’ adjusted operating income estimates.

The stock is down 11.2% since reporting and currently trades at $6.48.

Read our full, actionable report on eXp World here, it’s free.

Forestar Group (NYSE:FOR)

As a majority-owned subsidiary of homebuilding giant D.R. Horton, Forestar Group (NYSE:FOR) develops and sells finished residential lots to homebuilders, focusing primarily on land acquisition and development for single-family homes.

Forestar Group reported revenues of $374.3 million, up 6.6% year on year. This print met analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded a narrow beat of analysts’ adjusted operating income estimates but a miss of analysts’ EBITDA estimates.

Forestar Group had the weakest full-year guidance update among its peers. The stock is up 6.3% since reporting and currently trades at $28.12.

Read our full, actionable report on Forestar Group here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.