Anywhere Real Estate (HOUS) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $1.7 billion, up 1% year-over-year, with net income at $27 million and operating EBITDA of $133 million, reflecting resilience amid a challenging housing cycle and increased investment in AI and agent initiatives.

• Cost savings of $25 million were realized in Q2, on track for $100 million in 2025, with improved financial flexibility from a $500 million bond issuance and $345 million exchangeable note repurchase.

• Luxury segment outperformed, with 3.5% volume growth in Q2 and a 20% increase in $10M+ home sales, while combined closed transaction volume was flat year-over-year.

• July showed strong growth momentum, with open volume up 9% year-over-year and Advisor listings up 11%.

• Strategic focus on generative AI, integrated transaction experiences, and technology enhancements aims to drive efficiency, growth, and improved margins.

Financial highlights

• Q2 2025 operating EBITDA was $133 million, down $10 million year-over-year, mainly due to higher employee benefit costs and increased investment.

• Net income for Q2 2025 was $27 million, down from $30 million in Q2 2024; adjusted net income was $36 million.

• Free cash flow was negative $5 million, impacted by a $41 million legacy tax payment and unfavorable securitization timing.

• $25 million in cost savings realized in Q2, $39 million year-to-date, on track for $100 million in 2025.

• Issued $500 million in new second lien debt, repurchased $345 million of exchangeable notes at a discount, and reduced revolver balance.

Outlook and guidance

• Full-year 2025 operating EBITDA guidance reiterated at about $350 million; free cash flow (excluding one-time charges) expected at about $70 million.

• Targeting $100 million in cost savings for FY 2025, with 95% of savings already identified.

• Optimism for the back half of 2025 driven by July's strong growth indicators and continued AI-driven transformation.

• Guidance subject to macroeconomic, housing market, and regulatory uncertainties.

• Fannie Mae forecasts a 3% increase in existing homesale transactions for 2025 compared to 2024.