Anywhere(HOUS) - 2025 Q3 - Quarterly Results

Financial Performance - Revenue for Q3 2025 was $1.626 billion, an increase of $91 million or 6% year-over-year[4] - Net loss attributable to Anywhere was $13 million, a decline of $20 million year-over-year, with adjusted net income decreasing by $16 million to zero[4] - Gross commission income for Q3 2025 was $1,323 million, up from $1,242 million in Q3 2024, representing a 6.5% increase[24] - Net revenues for the nine months ended September 30, 2025, reached $4,512 million, compared to $4,330 million for the same period in 2024, reflecting a 4.2% growth[24] - Total revenues for the Company increased by 4% to $4.512 billion in 2025 from $4.330 billion in 2024[49] - Operating EBITDA for the Company decreased by 3% to $232 million in 2025 compared to $238 million in 2024[49] - The company reported a net loss attributable to Anywhere of $128 million for the four-quarter period ended September 30, 2025, with a loss of $64 million in Q4 2024 and a loss of $78 million in Q1 2025[68] Expenses and Costs - Total expenses for Q3 2025 were $1,643 million, compared to $1,532 million in Q3 2024, indicating a 7.3% increase[24] - The company incurred $14 million in restructuring and merger-related costs in Q3 2025, compared to $6 million in Q3 2024[27] - Total expenses for the year ended December 31, 2024, were $5.828 billion, with a quarterly breakdown of $1.254 billion, $1.631 billion, $1.532 billion, and $1.411 billion[62] - The company incurred restructuring costs of $32 million for the year ended December 31, 2024, with quarterly costs of $11 million, $7 million, $6 million, and $8 million[62] Cash Flow and Debt - Free Cash Flow for Q3 2025 was $92 million, compared to $99 million in the same quarter last year[4] - The company realized cost savings of $28 million in Q3 2025 and is on track to achieve $100 million in total cost savings for the year[3] - Total corporate debt was $2.5 billion at September 30, 2025, with cash and cash equivalents of $139 million[8] - The Senior Secured Leverage Ratio was 0.85x and the Net Debt Leverage Ratio was 6.7x at September 30, 2025[8] - The company generated $500 million from the issuance of Senior Secured Second Lien Notes during the financing activities for the nine months ended September 30, 2025[32] Business Operations - Closed transaction volume increased by 7% year-over-year, with units up 2% and average price up 5%[3] - The company welcomed 13 new US franchisees and one new international expansion in Q3 2025[3] - The average homesale price increased by 6% to $524,184 for the nine months ended September 30, 2025, up from $495,176 in 2024[34] - The company experienced a 2% decrease in closed homesale sides for the nine months ended September 30, 2025, totaling 517,544 compared to 528,980 in 2024[34] Adjusted Metrics and Definitions - Operating EBITDA is used for company-to-company performance comparisons, excluding factors like capital structure and taxation[75] - Adjusted net income (loss) is presented to provide transparency and is defined as net income (loss) before specific adjustments including non-cash stock-based compensation and restructuring charges[76] - Free Cash Flow is defined as net income (loss) before various expenses and is used for evaluating operating effectiveness and resource allocation[77] - Free Cash Flow does not reflect changes in working capital needs or cash requirements for servicing debt[78] - The company emphasizes that Free Cash Flow should not be considered in isolation from GAAP measures[77] - Limitations of Operating EBITDA include not reflecting interest expense or income tax expense[78] - Adjusted net income (loss) includes adjustments for legal contingencies and gains or losses on asset sales[76] - Free Cash Flow may differ from similar measures presented by other companies, indicating potential inconsistencies in calculation[78] - The company believes that Operating EBITDA is frequently used by analysts and investors for evaluation purposes[75] - The company provides reconciliations to net income (loss) and net cash provided by operating activities for clarity on Free Cash Flow[77] Future Outlook - The proposed merger with Compass is expected to close in the second half of 2026, pending shareholder and regulatory approvals[2]