Anywhere Real Estate's Q3 2025: Contradictions Emerge on Market Conditions, Cost Savings, AI, and Open Distribution Listings

Date of Call: November 4, 2025

Financials Results

• Revenue: $1.6 billion, up 6% versus prior year
• Operating Margin: 6% (Operating EBITDA $100M), operating EBITDA down $8M versus prior year driven by a $16M increase in long-term cash-settled compensation

Business Commentary:

* Revenue Growth and Merger Announcement: - Anywhere Real Estate reported $1.6 billion in revenue for Q3, up 6% year-over-year. - The growth was driven by the announced merger with Compass, which is expected to create a premier real estate platform.

• Luxury Segment Performance:
• The company's luxury business, anchored by Sotheby's International Realty, Corcoran, and Coldwell Banker Global Luxury, delivered 12% year-over-year volume growth in the quarter.

• This growth was attributed to a 9% increase in units and a 3% increase in price, contributing to the strategic growth engine of the company.

• Advisors Business Momentum:

• Advisors' business revenue was up 7%, driven by robust agent recruiting and near-record retention of productive agents.

• The improvement in momentum was due to a compelling value proposition that resonated with top agents across the country, leading to a 95% retention rate among the top half of producing agents.

• Sustained Integration and AI Initiatives:

• Anywhere Real Estate continues to focus on integrating AI across its operations, with AI-powered tools reducing listing and buyer agreement data entry from 10-15 minutes to under 60 seconds.
• The strategic use of AI aims to enhance customer service, increase revenue, and maintain the company's leadership position in the industry, earning it the distinction of Best Use of AI by a brokerage for the second consecutive year.

  Sentiment Analysis:

  Overall Tone: Positive

  • Management: "We delivered $1.6 billion of revenue, up 6% and $100 million of operating EBITDA." CEO highlighted 7% closed transaction volume growth and 12% luxury volume growth YOY. CFO: $92M free cash flow, on target for $100M cost savings for 2025. Company suspended guidance due to pending merger but emphasized execution and AI-driven productivity gains.

Contradiction Point 1

Impact of Market Conditions on Transactions

It involves the company's perspective on how market conditions, specifically declines in home prices, could affect transaction volumes, which directly impacts revenue expectations.

Can you provide an update on the proposed merger with Compass? - Tom Hudson

20251104-2025 Q3: In luxury, it's mostly units up. Very few markets are seeing price drops. - Ryan Schneider(CEO)

Will home price declines in certain markets lead to higher transaction volumes? How do you approach unit volumes in tight inventory markets? - Matthew Adrien Bouley (Barclays)

2025Q2: In July, we're seeing units up and price up, with about 50-50 units up and price up. - Ryan Schneider(CEO)

Contradiction Point 2

Cost Savings and Inflationary Pressures

It involves the company's approach to managing costs and offsetting inflationary pressures, which are crucial for maintaining financial stability and profitability.

好的，我现在需要处理用户的这个请求。用户希望我作为专业的金融文章作者，总结并精简来自美股上市公司财报电话会议的问题。首先，我需要仔细阅读用户提供的具体要求，确保完全理解任务。首先，用户给出的原始问题是：“Can you provide an update on the progress toward the $100 million cost savings target?” 我需要将其简化，同时保持原意，去掉冗长的表达，符合美式英语的习惯。用户强调输出要简洁、精准，不带装饰词，而且必须保留问号结尾。接下来，我要分析原始问题的结构。原问题询问的是关于1亿美元成本节约目标的进展更新。这里的“provide an update”可以简化为“update”或者“any updates”，而“progress toward”可以简化为“progress on”。可能的简化版本是：“What's the update on progress toward the $100 million cost savings target?” 或者更简短的：“How is the $100 million cost savings target progressing?” 不过，用户可能希望更直接的问题形式。比如，“Can you provide an update on the progress toward the $100 million cost savings target?” 可以简化为“Update on progress toward the $100 million cost savings target?” 但需要检查是否符合美式英语的习惯。另外，用户要求输出仅问题，不带其他内容，所以必须确保没有多余的部分。还要注意，用户提到输出要符合美式英语读写习惯，所以可能需要调整用词和结构。例如，“cost savings target”是正确的，不需要改动。而“progress toward”在美式英语中是正确的介词使用。现在，我需要比较可能的简化版本，选择最符合要求的。原问题中的“provide an update”可以简化为“update”，而“progress toward”保持不变。因此，简化后的问题应该是：“Update on progress toward the $100 million cost savings target?” 但可能用户希望更直接的疑问句结构，比如“Can you provide an update on the progress toward the $100 million cost savings target?” 已经比较简洁，但用户可能希望更简短。另一个可能性是：“What's the status of the $100 million cost savings target?” 但“status”可能不如“progress”准确。原问题强调的是进展，所以“progress”更合适。因此，最佳简化可能是：“Update on progress toward the $100 million cost savings target?” 或者更直接的：“How is the $100 million cost savings target progressing?” 但用户可能希望保持原问题的结构，只是去掉冗余的词。例如，原问题中的“Can you provide an update”可以简化为“Update”，所以最终版本可能是：“Update on progress toward the $100 million cost savings target?” 不过，这可能不符合标准的疑问句结构，因为通常疑问句以助动词开头。例如，“Can you provide an update...” 是正确的疑问句，而“Update on...”可能更像是陈述句。因此，可能需要保留“Can you provide”部分，但缩短其他部分。综合考虑，最简洁且符合原意的版本可能是：“Can you provide an update on progress toward the $100 million cost savings target?” 这样既保留了原问题的核心，又去掉了不必要的词，比如“the”在“the progress”中可能可以省略，但“progress toward”需要保持。或者，可能可以进一步简化为：“Update on the $100 million cost savings target progress?” 但这样可能改变了原意，因为“progress”是目标的一部分，而不是单独的。最终，正确的简化应该是：“Can you provide an update on progress toward the $100 million cost savings target?” 这个版本已经比较简洁，但用户可能希望更简短。例如，去掉“Can you provide”而直接问“Update on progress toward the $100 million cost savings target?” 但这样可能不符合标准的疑问句结构。因此，可能最佳选择是保持原问题的结构，仅去除冗余词，如“the”和可能的重复部分。经过仔细考虑，正确的简化版本应该是：“Can you provide an update on progress toward the $100 million cost savings target?” 这已经非常接近原问题，但用户可能希望更简短。例如，将“Can you provide an update”简化为“Update”，但这样可能不符合疑问句的结构。因此，可能最终版本是：“Update on progress toward the $100 million cost savings target?” 但需要确认是否符合美式英语的习惯。例如，通常疑问句以助动词开头，所以可能更合适的版本是：“Can you provide an update on progress toward the $100 million cost savings target?” 这已经足够简洁，但用户可能希望更简短。可能用户希望 - Charlotte Simonelli

20251104-2025 Q3: We realized $28 million in cost savings in the quarter and $67 million of cost savings year-to-date. - Charlotte Simonelli(CFO)

What caused the year-over-year decline in corporate operating EBITDA in the second quarter? - Thomas Patrick McJoynt-Griffith (KBW)

2025Q2: The decline was mainly due to higher employee benefit costs and some charges that will be allocated in the future. Full-year corporate costs are expected to stay about the same, with cost savings offsetting inflationary pressures. - Charlotte Simonelli(CFO)

Contradiction Point 3

Impact of AI on Business Operations

It highlights differing perspectives on the strategic use and benefits of AI in the company's operations, which could influence investor perceptions of technological innovation and competitive advantage.

How is AI impacting your business operations? - Ryan Schneider

20251104-2025 Q3: Our strategic use of AI continues to set us apart, earning Anywhere Real Estate the distinction of Best Use of AI by a brokerage for the second consecutive year from a leading real estate publication. We launched an AI-powered tool that extracts and inputs listing agreements directly into our systems, reducing the time it takes agents to enter a new listing from 10 to 15 minutes to under 60 seconds. - Ryan Schneider(CEO)

Could you clarify your stance on the clear cooperation policy and how franchisees and in-house brokers are implementing it? Should investors view this as a benefit or drawback for the stock? - Anthony Polon (JPMorgan)

2025Q1: AI is clearly something that we're investing in. We have multiple different initiatives across the company as you've seen us getting into mortgage lending, getting into Home Loans. Using AI you know to help people to find the right homes, to find the right financing for it. - Ryan Schneider(CEO)

Contradiction Point 4

Cost Savings and Financial Performance

It involves the company's financial management and cost-saving strategies, which directly impact its financial performance and investor confidence.

What were the financial results for Q3 2025? - Charlotte Simonelli

20251104-2025 Q3: Q3 operating EBITDA was $100 million, down $8 million versus prior year, driven by the $16 million year-over-year increase in employee long-term cash incentive costs, primarily associated with the strength in our share price. Despite these headwinds, our 6% margin underscores the resilience of our diversified revenue streams. We realized $28 million in cost savings in the quarter and $67 million of cost savings year-to-date. - Charlotte Simonelli(CFO)

Charlotte, can you break down Q4 and annual financials for revenue, EBITDA, and earnings, and elaborate on the cost savings mentioned in your prepared remarks? - Bob Olin (Evercore ISI)

2024Q4: We expect to deliver $50 million to $75 million in cost savings this year, primarily through operational efficiencies and strategic resequencing of a component in a product launch. - Charlotte Simonelli(CFO)

Contradiction Point 5

Benefits of Open Distribution of Listings

It demonstrates differing views on the benefits of open distribution of listings and the potential impact on customer outcomes and agent recruitment, which could influence strategic decision-making and market positioning.

Can you provide an update on the proposed merger with Compass? - Tom Hudson

20251104-2025 Q3: The proposed merger with Compass marks a significant milestone for our company. By combining Anywhere and Compass, we expect to create a platform where agents, franchisees, and employees can thrive while delivering even greater value to home buyers and sellers. Importantly, we expect this transaction to be done while preserving the unique independence and identity of each leading brand. - Ryan Schneider(CEO)

How is the clear cooperation policy being implemented by franchisees and brokers, and what impact will it have on the stock? - Anthony Polon (JPMorgan)

2025Q1: We believe open distribution helps buyers and sellers achieve higher prices. We sell some private listings but actively building more private listing capabilities for franchise brands as a defense. The policy pays off in customer satisfaction and agent recruitment. - Ryan Schneider(CEO)