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Anywhere Real Estate Inc. (HOUS)·Q2 2025 Earnings Summary

Executive Summary

  • Revenue of $1.68B grew 1% YoY but missed S&P Global consensus ($1.72B); Primary EPS modestly missed consensus, while Operating EBITDA was solid at $133M amid higher benefit costs and Reimagine investments .
  • Guidance maintained: FY25 Operating EBITDA ~$350M and FCF ex one-time items ~$70M; cost savings target ~$100M with ~$39M YTD and $25M in Q2 delivered .
  • Balance sheet flexibility improved through $500M second-lien issuance and $345M exchangeable note repurchase; no meaningful note maturities until 2029; revolver balance reduced to $460M by July 28 .
  • Luxury outperformance and recruiting/retention momentum, plus July open volume +9% YoY and listings +11% YoY, are positive back-half catalysts despite mixed geography (strong NYC, weaker Florida) .

What Went Well and What Went Wrong

What Went Well

  • Luxury strength: volume +3.5% YoY in Q2; 369 homes ≥$10M sold (+20% YoY); July luxury open volume up double-digits (Sotheby’s +13%, Corcoran ~+20%) .
  • Agent momentum: Advisors recruited 625 productive agents, business recruited +31% YoY; top-half agent retention ~95%—near record levels .
  • Operating execution: Franchise Operating EBITDA rose to $163M (+$4M YoY), Title Operating EBITDA $10M (+$1M YoY); $25M cost savings in Q2 and $39M YTD, on track for $100M in FY25 .
  • Strategic financing: $500M second-lien notes issued; $345M exchangeables repurchased at discount; revolver reduced in July, enhancing flexibility .

What Went Wrong

  • Revenue and EPS vs consensus: Revenue $1.682B vs $1.719B consensus*; Primary EPS 0.316 vs 0.327 consensus*—small miss likely weighed by higher benefit costs and investment in Reimagine .
  • Owned Brokerage margin pressure: Advisors Operating EBITDA was $0 (down $4M YoY); agent commission splits rose to 80.9% (+36 bps YoY), with mix shift toward top agents .
  • Free cash flow headwinds: Q2 FCF was -$5M, impacted by a $41M legacy tax payment and ~$25M securitization timing drag; operating cash flow -$28M vs +$39M prior year .
  • Geographic variance: Florida volumes down double-digits with price mix pressure (fewer $50M+ transactions vs prior year), contrasting strong NYC performance .

Financial Results

Core P&L and Cash Flow (Quarterly)

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Billions)$1.669 $1.204 $1.682
Net Income ($USD Millions)$30 -$78 $27
Diluted EPS ($USD)$0.27 -$0.70 $0.24
Operating EBITDA ($USD Millions)$143 -$1 $133
Free Cash Flow ($USD Millions)$63 -$130 -$5

Margins

MetricQ2 2024Q2 2025
Operating EBITDA Margin (%)9% 8%

Estimates vs Actuals – Q2 2025 (S&P Global)

MetricConsensusActual
Revenue ($USD Billions)$1.719*$1.682
Primary EPS ($USD)$0.327*$0.316*
EBITDA ($USD Millions)$132.3*$124.0*

Values with asterisks (*) retrieved from S&P Global.

Segment Breakdown – Q2 2025 vs Q2 2024

SegmentRevenue Q2’24 ($MM)Revenue Q2’25 ($MM)Op EBITDA Q2’24 ($MM)Op EBITDA Q2’25 ($MM)Op EBITDA Margin Q2’24Op EBITDA Margin Q2’25
Franchise Group$265 $269 $159 $163 60% 61%
Owned Brokerage Group$1,393 $1,398 $4 $0 ——
Title Group$103 $108 $9 $10 9% 9%
Corporate & Other($92) ($93) ($29) ($40) ——
Total Company$1,669 $1,682 $143 $133 9% 8%

KPIs – Q2 2025 vs Q2 2024

KPIQ2 2024Q2 2025
Franchise closed homesale sides194,372 186,970
Franchise avg homesale price ($)506,676 527,356
Franchise avg broker commission rate (%)2.42% 2.41%
Net royalty per side ($)462 474
Advisors closed homesale sides71,895 69,479
Advisors avg homesale price ($)775,453 800,807
Advisors avg broker commission rate (%)2.36% 2.38%
GCI per side ($)19,141 19,882
Title purchase units29,816 28,829
Title refinance units2,394 2,881
Advisors commission splits (%)80.6% approx (Q2’24 base implied)80.9%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Operating EBITDAFY 2025About $350M About $350M Maintained
Free Cash Flow (ex one-time items)FY 2025Similar to 2024 (≈$70M implied) ≈$70M Clarified to ~$70M
Cost SavingsFY 2025≈$100M ≈$100M Maintained
One-time items (cash)FY 2025~$115M (Antitrust $54M; Legacy tax ~$41M; TCPA ~$20M) Same three items; $41M paid in Q2; TCPA ~$20M pending; Antitrust $54M when appeals resolve (late 2025/early 2026) Timing update

Other balance sheet context: Net corporate debt $2.561B; cash $266M; Senior Secured Leverage Ratio 1.07x; Net Debt Leverage Ratio 7.2x .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Current Period (Q2 2025)Trend
Generative AI & Reimagine ’25Pilots in document processing; AI assistants; bank statement automation; accounting task automation ~35% reduction Brokerage document automation at 33% of CB submissions, path to 90% by year-end; Amazon Q pilot in contact centers; AI-generated CMA; Canva enterprise deal announced Accelerating adoption
Integrated transaction economicsPiloting mortgage/title marketing in buyer agreements to boost capture ~2.5 pts increase in mortgage capture; warranty attach rates +~4 pts via workflow redesign; national rollout planned Early proof points, scaling
Private listings vs portalsAdvocated broad public distribution; supportive of Zillow’s stance; capability maintained for niche use Stance reiterated; tech rolled to franchisees to manage private listings compliantly; recruiting aided by transparency stance Consistent, expanded tooling
Commission rates & splitsABCR down a few bps; mix pressure from luxury; splits ~80% for 12 quarters ABCR +2 bps YoY at Advisors; splits 80.9% (+36 bps YoY); mix of top agents drives splits Stable ABCR; splits slightly higher
Macro/regional trendsApril open/closed volumes flat; luxury up; price growth despite unit constraint June improved; July open volume +9% YoY; NYC strong; Florida down; units and price both up in July Improving momentum
Cost savings outlookFY25 target $100M; 85% identified; back-half weighted $25M Q2 savings; $39M YTD; more opportunities beyond low-hanging fruit via GenAI efficiencies On track, durable

Management Commentary

  • “Momentum from improving volume trends in June 2025 carried into July, with open volume up 9% year-over-year through July 21.” — CEO Ryan Schneider .
  • “AI will change how real estate is done, and we plan to lead the way… creating better experiences, faster, and at lower cost.” — CEO Ryan Schneider .
  • “We have enhanced financial flexibility following our $500 million bond issuance, with no meaningful note maturities until 2029.” — CFO Charlotte Simonelli .
  • “Q2 operating EBITDA was $133 million… primarily due to higher employee benefit costs, increased investment in Reimagine initiatives, and an increase in agent commission costs.” — CFO Charlotte Simonelli .
  • “Our July advisors’ listings are up significantly, over 10% compared to the prior year… Together, this paints a strong growth picture for the back half of the year.” — CEO Ryan Schneider .

Q&A Highlights

  • Units vs price dynamics: July showed both units and price up; Florida weakness driven more by unit declines and mix (fewer ultra-high-end transactions); demand > supply persists .
  • Private listing policy: Company’s transparency stance aids recruiting; rolled compliant tech to franchisees; prepared for potential shifts in private listing prevalence .
  • Cost savings beyond 2025: Material opportunities remain via AI-driven process transformation; guidance for 2026 savings to be detailed later; “low-hanging fruit” done, focus on structural automation .
  • Commission split modeling: Agent mix is the largest driver; top producers often on fixed rates; table impacts limited to ~half of agents .
  • Corporate costs: Q2 Corporate Op EBITDA down on bonus/benefit timing; full-year corporate typically flattish, with allocations adjusting over time .
  • Benefit costs: Elevated employee benefit usage a notable 2025 headwind potentially extending into 2026 absent plan changes .

Estimates Context

  • Revenue missed S&P Global consensus ($1.682B vs $1.719B)*, reflecting higher employee benefits and continued investment despite improving June/July volume trends .
  • Primary EPS modestly missed ($0.316 vs $0.327)*; GAAP diluted EPS was $0.24 .
  • EBITDA missed ($124M vs $132.3M)*; reported Operating EBITDA was $133M (different definition than SPGI EBITDA) .

Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

  • Modest top-line and EPS misses against consensus amid higher benefit costs and investments; however, July momentum (+9% open volume; listings +11%) supports back-half improvement potential .
  • Franchise resilience and luxury outperformance continue to anchor margins; Title profitability improving; Advisors’ profitability sensitive to mix and splits (80.9%) .
  • Balance sheet actions reduce near-term refinancing risk and enhance flexibility; revolver reduced to $460M by late July; no meaningful maturities until 2029 .
  • Reimagine ’25/AI efforts are yielding measurable capture and attach-rate gains, with automation pathways (document processing to 90%) offering durable cost leverage .
  • Policy positioning on public listing distribution is a recruiting edge and aligns with delivering higher seller outcomes, mitigating disruption risk from portal rule changes .
  • Watch benefit cost trajectory and Advisors mix-driven splits as key variables for margin expansion; cost savings trajectory remains intact with further AI-enabled opportunities .
  • Near-term trading: Improvement in July activity and reduced leverage risk are positive catalysts; estimate misses and geographic variance (Florida) temper the setup—monitor Q3 trajectory and benefit cost trends .

Additional Notes

  • Non-GAAP definitions updated effective Dec 31, 2024 to include stock-based comp and certain legal contingencies; Operating EBITDA and Adjusted Net metrics are reconciled in press release tables .
  • July monthly data (through July 21) cited for directional momentum; subject to business day matching and typical intra-month variability .

References:
Press Release Q2 2025 ; 8-K Q2 2025 ; Earnings Call Q2 2025 ; Q1 2025 Press Release ; Q1 2025 Earnings Call ; Q4 2024 Press Release .