As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at consumer discretionary - real estate services stocks, starting with Compass NYSE:COMP.

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 13 consumer discretionary - real estate services stocks we track reported a softer Q3. As a group, revenues missed analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 9.7% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9.3% 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 $3.90 billion, up 111% year on year. This print was in line with analysts’ expectations, but overall, it was a sluggish quarter for the company with a significant miss of analysts’ EPS estimates and EBITDA guidance for next quarter missing analysts’ expectations significantly.

Compass scored the fastest revenue growth in the group. Unsurprisingly, the stock is up 8.1% since reporting and currently trades at $9.97.

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

Best Q3: 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 $727.9 million, up 28% year on year, outperforming analysts’ expectations by 6.4%. The business had a solid quarter with full-year EBITDA guidance exceeding analysts’ expectations and full-year revenue guidance exceeding analysts’ expectations.

The Real Brokerage scored the biggest analyst estimate beat, highest guidance raise, and highest full-year guidance raise of the whole group. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 35.5% since reporting. It currently trades at $10.96.

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

Slowest Q3: Offerpad (NASDAQ: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 $78.07 million, down 41.2% year on year, falling short of analysts’ expectations by 27.9%. It was an underwhelming quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.

Offerpad delivered the weakest performance against analyst estimates, weakest guidance update, and slowest revenue growth among its peers. As expected, the stock is down 4.8% since the results and currently trades at $1.97.

Read our full analysis of Offerpad’s results here.

Howard Hughes Holdings (NYSE:HHH)

Named after the eccentric business magnate and aviator whose legacy lives on in real estate development, Howard Hughes Holdings (NYSE:HHH) develops, owns, and manages master-planned communities and commercial properties across the United States.

Howard Hughes Holdings reported revenues of $636.3 million, up 63.1% year on year. This print topped analysts’ expectations by 2.6%. Aside from that, it was a softer quarter as it produced a significant miss of analysts’ EPS estimates.

The stock is up 5.6% since reporting and currently trades at $82.43.

Read our full, actionable report on Howard Hughes Holdings here, it’s free.

CBRE (NYSE:CBRE)

Established in 1906, CBRE (NYSE:CBRE) is one of the largest commercial real estate services firms in the world.

CBRE reported revenues of $11.52 billion, up 12.7% year on year. This result lagged analysts’ expectations by 2.2%. Overall, it was a mixed quarter for the company.

The stock is down 1.6% since reporting and currently trades at $132.55.

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

Market update

Over the past year, investors have been forced to repeatedly answer the same question: What is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.