Anywhere Real Estate’s Earnings Call Highlights Growth and Challenges

Anywhere Real Estate Inc. ((HOUS)) has held its Q3 earnings call. Read on for the main highlights of the call.TipRanks Black Friday Sale Claim 60% off TipRanks Premium for the data-backed insights and research tools you need to invest with confidence. Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off The recent earnings call of Anywhere Real Estate Inc. was a mixed bag of optimism and caution. The company celebrated several achievements, such as a strategic merger, growth in revenue and transactions, and advancements in AI technology. However, it also faced financial pressures, including increased employee costs and negative EBITDA in certain segments. Merger Announcement with Compass Anywhere Real Estate announced a definitive merger agreement with Compass, aiming to create a more innovative real estate platform. The merger is expected to close in the second half of 2026, pending shareholder and regulatory approvals. This strategic move is anticipated to bolster the company’s market position and drive future growth. Revenue and Transaction Volume Growth In the third quarter, Anywhere Real Estate reported a revenue of $1.6 billion, marking a 6% increase year-over-year. The company also saw a 7% rise in closed transaction volume, indicating a robust market performance and effective business strategies. Luxury Segment Performance The luxury segment of Anywhere Real Estate delivered impressive results, with a 12% year-over-year growth in volume. This was accompanied by a 9% increase in units and a 3% rise in price, underscoring the strength of the luxury market. Agent Retention and Recruitment Success The company achieved notable success in agent retention and recruitment, with advisors recruiting nearly 5 productive agents in the quarter. There was a 12% year-over-year growth in business recruited and an impressive 95% retention rate of top-producing agents. AI and Technology Advancements Anywhere Real Estate made significant strides in technology, launching an AI-powered tool that reduces listing input time to under 60 seconds. The company also received the Best Use of AI distinction for the second consecutive year, highlighting its commitment to innovation. Operating EBITDA Decline Despite the positive developments, the company reported a decline in operating EBITDA, which stood at $100 million, down $8 million from the previous year. This decline was primarily due to increased employee long-term cash incentive costs. Increased Employee Costs Employee costs rose significantly, with a $16 million year-over-year increase in long-term cash incentive costs and a $3 million rise in health and welfare costs. These increased expenses have put pressure on the company’s financial performance. Negative EBITDA Margins in Certain Segments Certain segments, such as Anywhere Advisors and Integrated Services, reported negative operating EBITDA margins, reflecting ongoing challenges in these areas. Addressing these issues will be crucial for the company’s future financial health. Forward-Looking Guidance During the earnings call, Anywhere Real Estate announced the suspension of its forward guidance due to the proposed merger with Compass. However, the company continues to aim for $100 million in cost savings. It remains focused on leveraging strategic investments in AI to enhance operational efficiency and drive growth across its segments. In summary, Anywhere Real Estate’s earnings call presented a balanced view of achievements and challenges. While the company made significant strides in revenue growth, technology advancements, and agent retention, it also faced financial hurdles, including increased employee costs and negative EBITDA margins in certain segments. The proposed merger with Compass is a key strategic move that could shape the company’s future trajectory.