Anywhere Real Estate Q2 2025 slides: luxury segment shines amid margin pressure

Anywhere Real Estate Inc. (NYSE:HOUS) presented its second-quarter 2025 earnings on July 29, revealing flat transaction volume growth despite market challenges, with its luxury segment outperforming the broader market. The company reported mixed financial results, with slight revenue growth offset by declining operating EBITDA as agent commission costs continued to rise.

Quarterly Performance Highlights

Anywhere Real Estate generated $1.7 billion in revenue for Q2 2025, representing a modest $13 million year-over-year increase. However, Operating EBITDA declined to $133 million, down $10 million from the same period last year. Free Cash Flow was negative at $(5) million, which included a $41 million legacy tax item.

As shown in the following summary of key Q2 2025 metrics:

The company’s transaction volume remained flat year-over-year, as a 4% decrease in closed homesale sides was offset by a 4% increase in average homesale price. Notably, the luxury segment showed strength with 3.5% volume growth, outperforming the broader market.

"We realized approximately $25 million in cost savings during the quarter, keeping us on track to achieve our target of $100 million for the full year 2025," noted Charlotte Simonelli, Executive Vice President and Chief Financial Officer, according to the presentation.

Detailed Financial Analysis

The company’s revenue increased slightly across all business segments, with the Franchise Group (NASDAQ:FRG), Owned Brokerage Group, and Title Group each contributing to the overall growth. The revenue breakdown by segment shows the diverse nature of Anywhere’s business model:

Despite the revenue growth, Operating EBITDA faced pressure, particularly in the Owned Brokerage Group and Corporate segments. The Franchise Group showed resilience with a $4 million year-over-year increase in EBITDA, while the Owned Brokerage Group’s EBITDA declined by $4 million.

A key factor in the margin pressure was the rising agent commission split rate, which reached 80.9% in Q2 2025, up from 80.5% in the same period last year. This increase was primarily attributable to transaction mix, with approximately one-third driven by agent mix as top agents represented a higher percentage of transactions.

The company’s transaction volume metrics reflect the challenging real estate market conditions, with declining sides offset by rising prices:

Strategic Initiatives

Anywhere Real Estate continues to focus on debt reduction and financial flexibility as top capital allocation priorities. The company has transformed its debt structure, reducing debt by over $930 million since 2019 and extending maturities.

In Q2 2025, the company issued $500 million of Second Lien Secured Debt to repurchase Exchangeable notes, purchasing $345 million at a discount. The revolver was reduced by an additional $230 million, not reflected in the chart below:

Cost savings remain a cornerstone of Anywhere’s strategy, with the company having realized approximately $660 million in total cost savings between 2020 and 2024. The presentation highlighted that approximately 35% of these savings were offset by inflation, investments, and other factors.

For 2025, Anywhere is targeting an additional $100 million in cost savings, which would bring the total to approximately $830 million since 2019. The company reported that 95% of the 2025 savings have already been identified, with approximately $20 million carrying over from actions taken in 2024.

Competitive Industry Position

Anywhere emphasized its position as a market leader in several key areas. The company highlighted its franchise power, noting that it is a leading real estate franchisor in the U.S. with six nationally recognized brokerage brands and a worldwide footprint of over 2,100 franchisees.

The company’s scale across its franchise brands is substantial, with a combined total of over 311,900 worldwide sales agents generating nearly 950,000 U.S. annual sides:

Particularly noteworthy is Anywhere’s leadership in the luxury real estate market, where the company claims to sell more $1 million+ homes than any competitor, with its iconic luxury brands Sotheby’s International Realty, Coldwell Banker Global Luxury, and Corcoran.

Forward-Looking Statements

Looking ahead, Anywhere Real Estate remains focused on its cost savings initiatives, with a target of $100 million for the full year 2025. The company also emphasized its improved financial flexibility, with no material note maturities until 2029.

The Q2 results follow a challenging first quarter, where the company reported an EPS of -$0.70, missing the forecasted -$0.56, though revenue slightly exceeded expectations at $1.2 billion. Despite these challenges, Anywhere’s stock has shown resilience, trading at $4.69 as of the last close before the Q2 earnings release, up significantly from the $3.22 reported in premarket trading following Q1 results.

The company’s ongoing transformation efforts, including investments in AI and technology to enhance operational efficiency, remain central to its strategy as it navigates the current real estate market environment. However, challenges persist, including margin pressure from rising agent commission splits and the need to balance cost-cutting with investments for future growth.

Full presentation:

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