In its first-quarter financial results, Anywhere Real Estate (HOUS, Financial) announced a revenue increase to $1.204 billion, up from $1.126 billion in the previous year. The company attributes its success to several core strengths, including its broad scale, a high-margin franchise network, and leadership within the luxury sector. Additionally, its integrated transaction processes have been highlighted as key factors contributing to this growth. CEO Ryan Schneider emphasized that these assets not only differentiate the company today but also support its future growth and transformation.
HOUS Key Business Developments
Release Date: February 13, 2025
- Operating EBITDA: $290 million for 2024, up $35 million from the prior year.
- Free Cash Flow: $50 million, or $70 million excluding a $20 million litigation settlement payment.
- Q4 Operating EBITDA: $52 million, up $24 million year over year.
- Cost Savings: Achieved nearly $125 million, exceeding the target by 25%.
- Luxury Volume Growth: Up nearly 10% for the year and approximately 20% in Q4.
- Franchise Network Growth: Added 67 new franchisees in 2024, with 28 in Q4.
- Q4 Revenue: $1.4 billion, up 9% versus prior year.
- Full Year Revenue: $5.7 billion, up 1% versus prior year.
- Operating, Marketing, and GNA Expenses: Totaled $1.71 billion, down $72 million versus prior year.
- Agent Commission Splits: 80.3% in 2024, up 14 basis points versus prior year.
- Anywhere Brands Operating EBITDA: $521 million, down $6 million due to foreign currency impacts.
- Anywhere Advisors Operating EBITDA: $93 million, up $42 million versus prior year.
- 2025 Operating EBITDA Guidance: Expected to be about $350 million.
- 2025 Cost Savings Target: $100 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Anywhere Real Estate Inc (HOUS, Financial) delivered industry-leading EBITA in 2024, with a $35 million increase from the prior year, reaching $290 million.
- The company achieved nearly $125 million in cost savings, exceeding their target by 25%, through simplifying, automating, and streamlining operations.
- Anywhere Real Estate Inc (HOUS) accelerated its AI agenda, deploying generative AI at scale to improve customer experiences and operational efficiency, resulting in a 40% improvement in lead conversion rates.
- The luxury segment saw significant growth, with luxury volume up nearly 10% for the year and approximately 20% in the fourth quarter, gaining meaningful market share.
- The company expanded its franchise network by adding 67 new franchisees in 2024, including a notable addition of a 400-agent brokerage to the Corcoran brand.
Negative Points
- Anywhere Real Estate Inc (HOUS) faces significant one-time cash flow headwinds in 2025, totaling approximately $115 million, due to litigation settlements and legacy tax matters.
- The housing market remains challenged with a lack of supply and pressure on transaction volumes, impacting the company's growth potential.
- The company is dealing with the financial impact of the California wildfires, which have affected about 1,000 agents and several offices, with uncertain effects on future quarters.
- There is ongoing uncertainty and potential volatility in the housing market, which is a significant swing factor for the company's 2025 EBITA outlook.
- The company is navigating complex industry practice changes and regulatory challenges, such as the NAR's clear cooperation policy, which could impact operations and market dynamics.
