Anywhere Real Estate (HOUS) Q4 2024 earnings summary

Executive summary

• Generated $5.7B in revenue for FY 2024, up $56M year-over-year, and $1.4B in Q4, up $112M year-over-year.

• Delivered industry-leading Operating EBITDA of $290M in 2024, up $35M year-over-year, and $52M in Q4, up $24M year-over-year.

• Achieved $125M in cost savings, exceeding the target by 25%, and set a new $100M cost-saving goal for 2025.

• Luxury brands outperformed, with luxury closed transaction volume up nearly 20% in Q4 and 10% for the year; added 67 new franchisees in 2024.

• Maintained stable agent commission splits for 11 consecutive quarters at about 80%.

Financial highlights

• Q4 combined closed transaction volume rose 13% year-over-year; units up 3%, price up 9%.

• Full year 2024 revenue reached $5.7B, up 1% year-over-year; Operating EBITDA was $290M, up 14%.

• Free cash flow for 2024 was $70M before a $20M litigation payment; actual delivery was $30M below target due to a delayed tax refund.

• Net loss attributable for FY 2024 was $(128)M, improved from $(97)M in 2023.

• Realized ~$660M in total cost savings from 2020 to 2024.

Outlook and guidance

• 2025 Operating EBITDA is expected to be about $350M, with the housing market as the largest variable.

• Targeting $100M in cost savings for 2025, partially offset by inflation and investments.

• 2025 free cash flow, excluding one-time items, anticipated to be similar to 2024; one-time headwinds total $115M, including litigation and tax settlements.

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