• Revenue: $1.2 billion, up 7% versus prior year.
• Operating EBITDA: Negative $1 million, an increase of $12 million or 92% versus prior year.
• Cost Savings: $14 million in Q1, targeting $100 million for 2025.
• Free Cash Flow: Negative $130 million, a $15 million year-over-year improvement.
• Luxury Volume Growth: Up 16% year over year in Q1.
• Luxury Listings Increase: 12% year over year.
• Agent Commission Splits: 80.4%, with 12 consecutive quarters above 80%.
• Producing Agent Growth: 30% year over year in Q1.
• New Franchisees: 11 new US franchisees and a couple of new international franchisees.
• Anywhere Brands Operating EBITDA: $97 million, an increase of $7 million.
• Anywhere Advisors Operating EBITDA: $47 million, an improvement of $12 million versus prior year.
• Integrated Services Operating EBITDA: $18 million, down $3 million from Q1 2024.

• Warning! GuruFocus has detected 4 Warning Signs with HOUS.

Release Date: April 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Anywhere Real Estate Inc (NYSE:HOUS) achieved $1.2 billion in revenue for Q1 2025, marking a 7% increase compared to the previous year.
• The company reported a 6% volume increase, which was overwhelmingly organic, and outperformed the 3% volume growth in the quarter.
• Luxury segment outperformed with a 16% year-over-year increase in luxury volume, driven by both unit and price growth.
• Anywhere Real Estate Inc (NYSE:HOUS) delivered $14 million in cost savings in Q1 and is on track to achieve $100 million in cost savings for the full year 2025.
• The company successfully recruited 650 producing agents in Q1, with a 30% year-over-year growth in their producing agent recruiting program.

Negative Points

• Q1 operating EBITDA was negative $1 million, despite improvements, indicating ongoing financial challenges.
• Free cash flow for Q1 was negative $130 million, although this was a $15 million improvement year-over-year.
• April volumes were relatively flat, softer than Q1 due to market and macroeconomic volatility.
• The integrated services segment underperformed compared to other segments, with a $3 million decrease in operating EBITDA from Q1 2024.
• The company faces significant economic and competitive uncertainties, including macroeconomic volatility and industry changes, which could impact future performance.

Q & A Highlights

Q: Can you elaborate on your stance regarding the clear cooperation policy and its impact on franchisees and brokers? A: Ryan Schneider, CEO, emphasized the importance of broad distribution of listings for achieving the best price for sellers and providing buyers with access to inventory. He noted that while private listings have a role, the company is focused on transparency and public distribution, which aligns with their strategic view and benefits customers and agents in the long term.

Q: What are the trends in commission rates, and how are they affecting your business? A: Ryan Schneider, CEO, explained that commission rates have decreased slightly, with a small drop in both buy-side and list-side commissions. The luxury segment has seen more negotiation, but overall, the changes have been minimal and less than anticipated. Charlotte Simonelli, CFO, added that the mix of high-value transactions naturally pressures average commission rates.

Q: How are you addressing the challenges in the integrated services segment, particularly regarding investments? A: Charlotte Simonelli, CFO, highlighted investments in recruiting agents and technology as part of their Reimagine 25 program. The savings from these investments are expected to materialize more significantly in the latter half of the year. The upward title venture is still in the build phase, with some units already profitable, and is expected to become more productive over time.

Q: What is your perspective on the M&A environment and potential opportunities? A: Ryan Schneider, CEO, stated that Anywhere Real Estate is open to M&A opportunities, particularly in brokerage, title, mortgage, and prop tech. He noted that industry consolidation is inevitable, but there is currently a gap between bid and ask prices. The company is focused on strategic opportunities that align with their end-to-end capabilities.

Q: How is the luxury segment performing amid macroeconomic volatility? A: Ryan Schneider, CEO, reported that the luxury segment continues to perform well, with luxury listings up 12% year over year in Q1 and luxury volumes increasing in April. Despite macroeconomic volatility, the underlying trends in price growth and days on market remain stable, with luxury outperforming other segments.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.