In another up-and-down earnings call, Anywhere Real Estate on April 29 reported financial results for the first quarter ended March 31, 2025, which included revenues of $1.2 billion, an increase of $78 million year-over-year.
At the same time, the company reported a net loss of $78 million, an improvement of $23 million year-over-year. Closed transactions for the company rose 6% from Q1 2024.
The numbers are favorable to the Q4 2024 earnings in which Anywhere reported a $101 million loss for the quarter, continuing a downward, though not as deep, trend for the last few quarters, with generated revenue of $1.1 billion.
“Anywhere continues to prove the advantage of our unique assets, including our unmatched scale, high-margin franchise network, luxury leadership and integrated end-to-end transaction experience,” said Ryan Schneider, Anywhere president and CEO. “Those assets are driving differentiated success today and help fuel our growth and transformation as we look to the future.
“Further, as our industry grapples with changing practices, Anywhere is reaffirming our commitment to doing what’s best for the consumer, starting with advocating for transparency, consumer choice and the broad, public distribution of real estate listings to help customers get the best price for their home.”
The company’s stock was also volatile following the earnings announcement, trading down slightly early Tuesday.
Schneider addressed questions on the real estate industry’s approach to Clear Cooperation Policy and private listings, amid a broader conversation on these issues sparked by Zillow’s new ban on some private listings. He emphasized the importance of broad distribution of listings for achieving the best price for customers, while acknowledging a niche role for private listings, particularly in the luxury market.
“I hear loud and clear, not only from our own agents and franchisees, but from other company’s agents, that the consensus is you want as many people to see a listing as possible to get the best price,” he said. “You want your buyers to have access to that inventory, and it’s the way people want to do business. They want to do what’s best for the customer, even if you could make a different decision and push for something that might be better for the brokerage.
“Having your listings on public portals is a helpful thing in selling your house. So we’re leaning in pretty hard to not Clear Cooperation itself, but more just the fact that the broad distribution of listings is best for the customer, whether buyers or sellers.”
As for private listings, Schneider said Anywhere does sell them when it’s right for the customer, “because there is a subset of listings that should be private for people who want private, and we want them to have that choice. But we also want to build it so that we’re never at a competitive disadvantage if private listings really do become more prevalent in the industry.”
Schneider also touched on commission rates, which have seen slight declines, and the impact of macroeconomic volatility on market trends, with April showing flat open and closed volumes.
Anywhere, he explained, is investing in agent recruitment and technology to drive efficiencies, with expectations of improved financial performance in the latter half of the year. Additionally, Schneider covered the company’s openness to mergers and acquisitions, despite current market challenges. He relayed cautious optimism, with a focus on customer-centric practices and strategic growth opportunities.
“On the M&A front, we’re open for business, and I do still think industry consolidation is inevitable,” said Schneider. “Frankly, the industry could use more streamlining. But we’re four months into the year and there’s been very, very little actual activity, and the biggest deals have all come out of the mortgage sector.”
Q1 Financial highlights
- Operating EBITDA loss of $1 million, a $12 million improvement year-over-year.
- Combined closed transaction volume increased 6% year-over-year, with units down about 4% and price up 11%. Market share gain in the quarter was driven by luxury success and differential growth in California and New York City, the company said.
- Continued strength in luxury with Coldwell Banker Global Luxury, Corcoran, and Sotheby’s International Realty brands significantly outperforming the market, with closed transaction volume increasing approximately 16% year-over-year.
- Agent commission splits increased 39 basis points year-over-year, to 80.4% in the first quarter. It is the 12th straight quarter of commission splits at approximately 80%.
- Realized cost savings of $14 million in the first quarter of 2025 and on track to deliver $100 million for full year 2025.
- Free cash flow of negative $130 million, reflecting seasonal use of cash for the business, improved from negative $145 million in 2024.