Anywhere(HOUS) - 2025 Q1 - Quarterly Results

Financial Performance - Generated Revenue of $1.2 billion, an increase of $78 million (7%) year-over-year[5] - Reported Net Loss of $78 million, an improvement of $23 million year-over-year; Adjusted Net Loss of $64 million improved $21 million versus Q1 2024[5] - Total revenues for Q1 2025 were $1,204 million, up from $1,126 million in Q1 2024, representing a 6.9% increase[27] - Gross commission income increased to $976 million in Q1 2025 from $907 million in Q1 2024, a rise of 7.6%[27] - Net loss attributable to Anywhere was $78 million in Q1 2025, an improvement from a net loss of $101 million in Q1 2024[27] - Adjusted net loss attributable to Anywhere for Q1 2025 was $64 million, compared to $85 million in Q1 2024, reflecting a 24.7% reduction[29] - Total Company net revenues for the three months ended March 31, 2025, were $1,204 million, a 7% increase from $1,126 million in the same period of 2024[49] - Operating EBITDA for the Total Company was $(1) million for the three months ended March 31, 2025, compared to $(13) million in the same period of 2024[49] Transaction Volume and Market Performance - Combined closed transaction volume increased 6% year-over-year, with units down about 4% and price up 11%[5] - Closed transaction volume for luxury brands increased approximately 16% year-over-year, significantly outperforming the market[5] - Closed homesale sides decreased by 5% to 137,089 in Q1 2025 from 144,775 in Q1 2024[37] - Closed homesale sides for Anywhere Brands - Franchise Group totaled 700,589 in 2024, with an average homesale price of $497,494[40] - The Owned Brokerage Group reported closed homesale sides of 249,421, with an average homesale price of $748,596 in 2024[40] - Average homesale price increased by 10% to $516,999 in Q1 2025 from $470,119 in Q1 2024[37] Cash Flow and Debt - Free Cash Flow of negative $130 million, improved from negative $145 million in 2024[5] - Cash and cash equivalents at the end of Q1 2025 were $110 million, down from $118 million at the end of 2024[33] - Total corporate debt was $2.6 billion at March 31, 2025, with a Senior Secured Leverage Ratio of 1.51x[13] - Current portion of long-term debt increased to $610 million in Q1 2025 from $490 million at the end of 2024[33] - The company reported a net cash used in operating activities of $105 million for Q1 2025, compared to $122 million in Q1 2024[35] - Free cash flow for Q1 2025 was $(130) million, compared to $(145) million in Q1 2024, indicating a slight improvement year-over-year[61] Revenue by Segment - The Franchise Group's revenue increased to $204 million in Q1 2025, up from $200 million in Q1 2024, reflecting a 2% growth[46] - The Owned Brokerage Group's revenue rose to $990 million in Q1 2025, an increase of $71 million or 8% from Q1 2024[46] - The Title Group's revenue for Q1 2025 was $78 million, a 10% increase from $71 million in Q1 2024[46] Cost Management and Restructuring - Realized cost savings of $14 million in Q1 2025, on track to deliver $100 million for the full year[5] - Restructuring costs for the Total Company amounted to $12 million in Q1 2025, compared to $11 million in Q1 2024[44] - Restructuring costs for the year totaled $32 million, with Q1 2024 accounting for $11 million of this total[59] Corporate Developments - The Company welcomed 11 new US franchisees and added two new international expansions in Q1 2025[5] Financial Metrics and Definitions - Operating EBITDA is presented as a supplemental measure to evaluate the performance of the company's operating businesses, providing greater transparency into results[71] - Adjusted net income (loss) is defined as net income (loss) before specific adjustments, including non-cash stock-based compensation and restructuring charges, to enhance transparency in operating results[73] - Free Cash Flow is defined as net income (loss) attributable to Anywhere before various expenses, and is used to evaluate operating effectiveness and resource allocation[74] - Free Cash Flow does not reflect changes in working capital needs or cash requirements for servicing debt, taxes, or future capital expenditures[75] - The company believes Operating EBITDA facilitates comparisons of operating performance across different companies by excluding non-core items[72] - Limitations of Operating EBITDA include its inability to reflect interest expense, income tax expense, and historical cash expenditures[75] - The company emphasizes that Free Cash Flow should not be considered in isolation or as an alternative to net income or other financial data prepared in accordance with GAAP[74] - Adjusted net income (loss) includes adjustments for legal contingencies and gains or losses on the sale of businesses, which are not related to normal operations[73] - The company uses Free Cash Flow as a measure of its ability to generate cash, which is critical for operational decisions[74] - Operating EBITDA should not be viewed as a substitute for net income or other GAAP measures, highlighting its limitations as an analytical tool[73]