Anywhere Real Estate (HOUS) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $1.5 billion, down 3% year-over-year, with net income of $7 million and operating EBITDA of $94 million; free cash flow rose to $99 million despite a challenging housing market and one-off headwinds.

• Transaction volume was flat year-over-year, with unit declines offset by higher average prices; luxury and franchise segments outperformed.

• Achieved $30 million in Q3 cost savings, $90 million year-to-date, and on track for $120 million in annual savings through operational efficiencies.

• Strategic investments in luxury, franchise expansion, brokerage-title integration, and generative AI drove operational efficiency and innovation.

• Net income for Q3 2024 was $7 million, down sharply from $129 million in Q3 2023, primarily due to prior year debt extinguishment gains.

Financial highlights

• Q3 2024 revenue was $1.535 billion, down $49 million year-over-year, mainly due to lower advisor and brokerage revenue.

• Operating EBITDA was $94 million (6% margin), down $13 million year-over-year; free cash flow was $99 million, up from $95 million.

• Franchise Group revenue was $267 million, down $4 million; Owned Brokerage Group revenue was $1.258 billion, down $51 million; Title Group revenue increased $3 million to $96 million.

• Net income attributable to the company was $7 million, compared to $129 million in Q3 2023.

• Achieved $30 million in Q3 cost savings, on track for $120 million for the year.

Outlook and guidance

• On track to deliver $120 million in cost savings for 2024, with 60% from headcount and footprint actions.

• October 2024 closed transaction volume up 9% and open volume up 16% year-over-year, adjusted for business days.

• 2024 free cash flow, excluding one-time items, expected to be about $100 million; one-time items estimated at $60 million, including $20 million for antitrust litigation and $39 million for a legacy tax matter.

• Remaining $53.5 million of antitrust settlement due post-appeals, likely no earlier than mid-2025.

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