As the Q1 earnings season wraps, let’s dig into this quarter’s best and worst performers in the consumer discretionary - real estate services industry, including CBRE (NYSE: CBRE) and its peers.

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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 2.3% above.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.5% since the latest earnings results.

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 $10.49 billion, up 18.2% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and EBITDA estimates.

The stock is down 13.7% since reporting and currently trades at $132.44.

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

Best Q1: Marcus & Millichap (NYSE: MMI)

Founded in 1971, Marcus & Millichap (NYSE: MMI) specializes in commercial real estate investment sales, financing, research, and advisory services.

Marcus & Millichap reported revenues of $171.5 million, up 18.2% year on year, outperforming analysts’ expectations by 5.7%. The business had an exceptional quarter with a solid beat of analysts’ EBITDA estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $28.99.

Is now the time to buy Marcus & Millichap? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: RE/MAX (NYSE: RMAX)

Short for Real Estate Maximums, RE/MAX (NYSE: RMAX) operates a real estate franchise network spanning over 100 countries and territories.

RE/MAX reported revenues of $70.23 million, down 5.7% year on year, falling short of analysts’ expectations by 2.7%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income and EPS estimates.

As expected, the stock is down 18.8% since the results and currently trades at $8.98.

Read our full analysis of RE/MAX’s results here.

Opendoor (NASDAQ: OPEN)

Founded by real estate guru Eric Wu, Opendoor (NASDAQ: OPEN) offers a technology-driven, convenient, and streamlined process to buy and sell homes.

Opendoor reported revenues of $720 million, down 37.6% year on year. This print surpassed analysts’ expectations by 8.3%. It was a strong quarter as it also produced a solid beat of analysts’ revenue estimates and EPS in line with analysts’ estimates.

The stock is down 15.7% since reporting and currently trades at $4.49.

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

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 $2.70 billion, up 99.4% year on year. This result topped analysts’ expectations by 1.2%. Overall, it was a very strong quarter as it also put up EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.

Compass achieved the fastest revenue growth among its peers. The stock is up 7% since reporting and currently trades at $7.77.

Read our full, actionable report on Compass 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.

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